
Is Texas Pacific Land (TPL) stock Halal?
Under AAOIFI Shariah Standard No. 21, a Halal stock keeps non-permissible income below 5% of revenue and interest-bearing debt and investments each below 30% of market capitalisation. Texas Pacific Land Corp. (TPL) passes all four screens as of September 2026, with a dividend purification factor of 99.08%.
Texas Pacific Land operates as one of the largest private landowners in the state of Texas. The corporation's core operations center around land and resource management, particularly focusing on oil and gas royalties due to the rich natural resources present on its properties. With extensive holdings in the Permian Basin, a crucial area for energy production, Texas Pacific Land Corporation plays a vital role in the U.S. oil and gas industry. For Muslim investors, though, the most pressing question is simpler: is Texas Pacific Land a Halal investment?
Is Texas Pacific Land Shariah compliant?
Extracting and selling oil, gas or materials is a permissible business, so companies like Texas Pacific Land rarely stumble on the activity screen. The pressure point is capital structure: energy is a capital hungry industry that borrows heavily, and AAOIFI Shariah Standard No. 21 caps interest bearing debt at 30% of market capitalisation, a line that moves as commodity cycles move the share price.
Does Texas Pacific Land pass the business activity test?
Yes. In the September 2026 screening Texas Pacific Land holds an overall PASS, which a stock only earns when its core business clears the activity screen. The activity itself, extracting and selling resources, raises no Shariah objection; the scrutiny belongs to the financing.
Is Texas Pacific Land's income Halal?
Yes, within AAOIFI's tolerance. Texas Pacific Land's income from non-permissible sources stays below 5% of revenue in the September 2026 screening, and the small impure portion is handled through purification: the factor of 99.08% tells holders of TPL what share of each dividend to keep and what remainder to donate to charity.
Does Texas Pacific Land meet AAOIFI's debt and investment ratio requirements?
Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has TPL re-screened every month, and the result above always shows the latest verdict.
Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.
New to the four screens? Read AAOIFI Standards Explained: What Makes a Stock Halal?



