One of the investment sectors in which it’s difficult to address the “why” component is the hydrocarbon ecosystem. With the political and ideological winds favoring clean and renewable energy infrastructures, why would anyone consider fossil fuels, even if they were billed as discounted oil stocks?

It’s a simple answer. No matter what you hear from green energy apologists, the world still runs on oil. Evidence indicates that the hydrocarbon sector’s relevancy will extend longer than many people anticipate.

That’s not the news that green agencies want to hear, I get that. But let’s first consider the science. Fossil fuels command incredible energy density. Combustion-powered mechanisms may be dirty and inefficient and whatnot. However, a jug of gasoline will take a “regular” vehicle quite a long way relative to the equivalent amount of electrons for an electric-powered vehicle. That’s the reason why fossil fuels are so hard to quit.

And no, wind and solar can’t magically embody higher densities: you can’t violate the physical laws of the universe. On that note, below are discounted oil stocks to consider.

Halliburton (HAL)

Based in Houston, Texas, Halliburton (NYSE:HAL) falls under the oil and gas equipment and services industry. To be upfront, the company carries controversies due to its connections with high-level government officials, most notably former Vice President Dick Cheney. I’m not going to go down the rabbit hole but it’s just something to be aware of.

Now, if you don’t mind some of the political undertones, Halliburton technically makes a solid case for discounted oil stocks. Presently, HAL trades hands at 1.31X trailing-year sales. However, between the first quarter of 2023 to Q1 2024, the market priced shares at a revenue multiple of 1.48X. Also, Halliburton featured an average forward earnings multiple of 10.96X last year.

Currently, the forward multiple sits at 10.02X. With experts projecting Halliburton to see a modest rise in earnings per share from $3.13 to $3.17 at the end of the year, HAL stock appears undervalued. On the top line, revenue might dip 1.3%. However, in fiscal 2025, it could see a solid rise of 7.5% to $24.43 billion.

W&T Offshore (WTI)

Also headquartered in Houston, W&T Offshore (NYSE:WTI) falls under the oil and gas exploration and production segment of the hydrocarbon value chain. Otherwise known as upstream, this category could see tremendous relevance due to various geopolitical flashpoints. From Eastern Europe to the Middle East, escalating tensions can potentially disrupt global supply chains.

If that happens, upstream endeavors in friendly jurisdictions may command a premium. That’s where the case for WTI stock becomes very intriguing. During the trailing 12 months (TTM), W&T incurred a net loss of $21.88 million. However, it did post revenue of $541.72 million. Presently, shares trade hands at 0.58X trailing-year sales. The average metric over the past year stood at 0.79X.

Now, analysts see a lost cause in terms of the bottom line in fiscal 2024. However, it’s different story with the top line. Sales may jump to $637.81 million, up 19.7% from last year’s print of $532.66 million. That’s also a big jump from the current quarterly sales growth rate (year-over-year) of 6.9%.

It’s risky, don’t get me wrong. However, it could be one of the discounted oil stocks to buy.

Patterson-UTI (PTEN)

Operating under the oil and gas drilling segment, Patterson-UTI (NASDAQ:PTEN) is a giant entity, featuring 10,600 full-time employees. Per its public profile, the company with its subsidiaries engages in the provision of contract drilling services for oil and natural gas operators. Again, with geopolitical tensions rising in multiple regions, demand for Patterson-UTI’s solutions could gradually rise.

Financially, the company stands on relatively stable ground. In the TTM period, it posted net income of just under $198 million or earnings of 54 cents per share. During the aforementioned cycle, revenue hit $4.87 billion. Notably, in the most recent quarter, the YOY sales growth rate clocked in at a robust 90.8%.

Presently, PTEN stock trades hands at 0.7X trailing-year revenue. In the past year, per Yahoo Finance data, the average sales multiple landed at 0.88X. Therefore, PTEN can potentially grow into its prior valuation.

For fiscal 2024, analysts are targeting revenue of $5.9 billion. If so, that would amount to a growth rate of 42.4%. Further, the high-side estimate calls for $6.36 billion. It’s one of the discounted oil stocks to consider.

TETRA Technologies (TTI)

Hailing from The Woodlands, Texas, TETRA Technologies (NYSE:TTI) operates in the equipment and services sector. While Tetra isn’t a household name outside of those interested in the hydrocarbon space, it’s a sizable enterprise. Right now, it features 1,500 full-time employees. With its subsidiaries, the company operates as an energy services and solutions firm.

Again, what makes TETRA attractive is that outside of hardcore hydrocarbon investors, TTI stock isn’t generating much attention. That could be a mistake. In the TTM period, Tetra posted a net income of $20.37 million or earnings of 16 cents per share. Revenue reached just over $631 million. The latest quarterly sales growth rate landed at 3.3%.

Presently, TTI stock trades at 21.62X trailing-year earnings and 0.72X trailing-year sales. For the former category, the average stat came in at 43.43X during the past year while for the latter, it was 0.93X.

Notably, for fiscal 2024, analysts see 11.54% growth in EPS to 29 cents. Further, revenue may expand by 6.6% to hit $667.52 million. It makes for a balanced case for discounted oil stocks.

Kosmos Energy (KOS)

Based in Dallas, Texas, Kosmos Energy (NYSE:KOS) is an upstream oil firm. It’s a smaller enterprise, featuring only 243 employees. However, with its exploration, development and production business – particularly in the Atlantic Margins in the U.S. – Kosmos could be an intriguing player. As stated previously, global supply chain disruption threats could cynically add relevance to the upstream segment.

Financially, Kosmos is attractive for its balanced profile. During the TTM period, the company posted net income of $221.9 million or 46 cents per share. Its quarterly earnings growth rate comes in at 10.1%. On the top line, sales in the cycle hit $1.73 billion. Its most-recent quarterly revenue growth rate lands at 6.4%.

For fiscal 2024, analysts anticipate 38.7% expansion in EPS to 86 cents. The high-side estimate calls for $1.58. Regarding sales, experts are looking for $1.59 billion, up 18.5% from last year. Here, the most optimistic target calls for $1.79 billion.

Enticingly, in Q1 of this year, KOS stock traded at 5.85X forward earnings. Right now, this metric lands at 5.44X. Also, the market prices shares at 1.55X trailing-year sales. That’s below last year’s average of 1.79X. Thus, KOS could be one of the discounted oil stocks.

Oil States (OIS)

Another entity in the oil and gas equipment and services space, Oil States (NYSE:OIS) provides engineered capital equipment and products for the energy, industrial and military sectors worldwide. It’s involved in myriad functions within the broader energy ecosystem, such as drilling, oilfield services and deepwater infrastructure support. With the world continuing to run on “black gold,” Oil States should be a relevant player.

Financially, the company sits at a tricky crossroads. In the TTM period, Oil States posted a net loss of $2.85 million or 4 cents per share in the red. Revenue in the cycle hit $753.35 million. However, the current quarterly sales growth rate sits at 14.7% below breakeven.

Notably, in fiscal 2024, analysts see a 10% lift in EPS to 22 cents, with a high-side target of 27 cents. The following year, EPS may rise to 42 cents. On the top line, sales may dip 4.7% in fiscal 2024 to $745.64 million. However, it could rise 9.7% to $817.68 million one year later.

Right now, OIS stock trades at 0.37X trailing-year sales. The average metric in the past year stood at 0.61X. It’s another example of discounted oil stocks to consider.

Baytex Energy (BTE)

Based in Canada, Baytex Energy (NYSE:BTE) falls under the exploration and production segment. Per its corporate profile, Baytex is engaged in the acquisition, development and production of crude oil and natural gas. Its main areas of operation are the Western Canadian Sedimentary Basin and Eagle Ford in the U.S.

As with some of the other higher-risk plays among discounted oil stocks, Baytex isn’t the easiest idea to consider. In the TTM period, the company incurred a loss of almost $299 million or 32 cents per share in the red. Sales during the cycle reached $3.03 billion. Notably, its most recent quarter saw a gargantuan YOY lift of 67.7%.

For fiscal 2024, analysts project EPS of 27 cents. That’s a far cry from last year’s loss per share of 24 cents. On the top line, revenue could land at $2.8 billion. If so, we’re talking about a 40.5% growth rate. Moreover, the high-side estimate calls for $3.21 billion.

Currently, BTE stock trades at 0.97X. Last year, this metric reached 1.03X. While not currently much of a discount, the big sales forecast makes Baytex undervalued.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.