Coal mining ASX shares have done pretty well out of the energy crisis this year.
But if the thought of directly investing in the fossil fuel creeps you out, there are ways to indirectly gain some exposure to the global fuel shortage.
Two such ASX shares are the investment company Washington H Soul Pattinson and Co Ltd (ASX: SOL) and construction business Brickworks Limited (ASX: BKW).
According to Shaw and Partners portfolio manager James Gerrish, both are in or near the buy zone.
This stock was just added to our hitlist
Soul Pattinson has a variety of interests in both public and private entities, Gerrish said in a Market Matters Q&A.
"They own a number of strategic holdings including TPG Telecom Ltd (ASX: TPG) ~$1.1 billion, Brickworks ~$1.3 billion and New Hope Corporation Limited (ASX: NHC) ~$1.68 billion."
Coal producer New Hope has seen its share price rise almost 133% so far in 2022. Yet the Soul Pattinson share price has actually dipped 17% over the same period.
For Gerrish's team, this disjoint perhaps presents some upside.
"Considering the significant outperformance by New Hope, I would have expected more from Soul Pattinson," said Gerrish.
"We like investment house Soul Pattinson below $26 and it's recently found itself on our hitlist."
Soul Pattinson shares closed Friday at $25.62.
The stock is famous for its 22-year streak of non-stop dividends, with the yield currently sitting at 2.53%.
No dividend cut for 4 decades
So how can a building business like Brickworks provide exposure to the energy sector?
"This manufacturer of clay and building products also owns ~26% of Soul Pattinson, which by definition equates to a $400 million position in New Hope Corporation," Gerrish said.
Unlike Soul Pattinson, Brickworks shares seem to have benefitted from its New Hope exposure.
"Brickworks has struggled a bit due [to] the slowing building industry but New Hope has helped the cause."
This is another stock that has an impressive dividend record. The construction company has increased its dividend each year since 2014.
"It's worth mentioning too that the ASX 200 dividend share hasn't cut its dividend for over four decades," wrote The Motley Fool's Tristan Harrison.
"Brickworks also owns half of a quality industrial property trust which is constructing buildings such as huge warehouses… The growing net rental profit from Brickworks' property investments can help fund bigger dividends."
Gerrish's team would buy Brickworks the next time it dips under the $20 mark. The stock closed Friday at $20.71.
"Overall some slightly messy cross-ownership, but both stocks do look good value into further weakness."
The Brickworks share price is down 16.2% year to date.
