Is Magnolia Oil & Gas Corp (MGY) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 7.5% / 30% | 4.8% / 30% | 3.2% / 30% | 0.01% / 5% | ✓ HALAL |
| DJIM | 7.5% / 33% | 4.8% / 33% | 3.2% / 33% | 0.01% / 5% | ✓ HALAL |
| MSCI | 14.2% / 33% | 9.2% / 33% | 6.0% / 33% | 0.01% / 5% | ✓ HALAL |
| S&P | 7.5% / 33% | 4.8% / 33% | 3.2% / 33% | 0.01% / 5% | ✓ HALAL |
| FTSE | 14.2% / 33% | 9.2% / 33% | 6.0% / 50% | 0.01% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 80.7% | |
| Operating Margin | 29.6% | |
| Net Margin | 24.8% | |
| Return on Equity (ROE) | 17.0% | |
| Return on Assets (ROA) | 9.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $879M |
| Free Cash Flow | $409M |
| Total Debt | $411M |
| Debt-to-Equity | 21.0 |
| Current Ratio | 1.5 |
| Total Assets | $2.9B |
Price & Trading
| Last Close | $31.86 |
| 50-Day MA | $27.39 |
| 200-Day MA | $24.28 |
| Avg Volume | 3.1M |
| Beta | 0.9 |
|
52-Week Range
$19.09
| |
About Magnolia Oil & Gas Corp (MGY)
Magnolia Oil & Gas Corporation, an independent oil and natural gas company, engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The company's properties are located primarily in Karnes County and the Giddings area in South Texas comprising the Eagle Ford Shale and the Austin Chalk formation. The company was incorporated in 2017 and is headquartered in Houston, Texas.
Purification Calculator
As a halal stock with 0.01% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Magnolia Oil & Gas Corp (MGY) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Magnolia Oil & Gas Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Magnolia Oil & Gas Corp's debt ratio?
Magnolia Oil & Gas Corp's debt ratio is 7.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 14.2%.
Does Magnolia Oil & Gas Corp require dividend purification?
Yes, Magnolia Oil & Gas Corp has an impermissible income ratio of 0.01%, which means 0.01% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Magnolia Oil & Gas Corp's key financial metrics?
Magnolia Oil & Gas Corp has a market capitalization of $6.2B, trailing P/E ratio of 18.7, and revenue of $1.3B. The company maintains a gross margin of 80.7% and a net margin of 24.8%. Return on equity stands at 17.0%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.