Is PLAINS ALL AMERICAN PIPELINE LP (PAA) Halal?

NASDAQ Energy United States $15.8B
✗ NOT HALAL
Confidence: 83/100
PLAINS ALL AMERICAN PIPELINE LP (PAA) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 50.9% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. PLAINS ALL AMERICAN PIPELINE LP operates in the Energy sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 50.9%
/ 30%
2.2%
/ 30%
25.0%
/ 30%
N/A ✗ NOT HALAL
DJIM 50.9%
/ 33%
2.2%
/ 33%
25.0%
/ 33%
N/A ✗ NOT HALAL
MSCI 29.9%
/ 33%
1.3%
/ 33%
14.7%
/ 33%
N/A ✓ HALAL
S&P 50.9%
/ 33%
2.2%
/ 33%
25.0%
/ 33%
N/A ✗ NOT HALAL
FTSE 29.9%
/ 33%
1.3%
/ 33%
14.7%
/ 50%
N/A ✓ HALAL

Financial Highlights

P/E Ratio
20.0
Forward: 14.0
EPS
$1.12
Dividend Yield
744.0%
Payout: 135.7%
P/B Ratio
2.0
EV/EBITDA
13.8
EV: $32.3B
Revenue
$44.3B
Growth: -12.2%
Beta
0.5
Low volatility
Current Ratio
1.0

Profitability

Gross Margin 6.0%
Operating Margin 3.5%
Net Margin 3.2%
Return on Equity (ROE) 10.6%
Return on Assets (ROA) 3.1%

Cash Flow & Balance Sheet

Operating Cash Flow$2.9B
Free Cash Flow$2.3B
Total Debt$11.5B
Debt-to-Equity87.8
Current Ratio1.0
Total Assets$30.2B

Price & Trading

Last Close$22.52
50-Day MA$20.59
200-Day MA$18.32
Avg Volume3.7M
Beta0.5
52-Week Range
$15.58
$22.79

About PLAINS ALL AMERICAN PIPELINE LP (PAA)

CEO
Mr. Wilfred C.W. Chiang
Employees
3,900
Sector
Energy
Industry
Oil & Gas Midstream
Country
United States
Exchange
NASDAQ
Market Cap
$15.8B
Currency
USD

Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, trucks, and on barges or railcars. This segment provides terminalling, storage, and other related services, as well as merchant activities. The NGL segment is involved in natural gas processing and NGL fractionation, storage, transportation, and terminaling. This segment also includes ethane, propane, normal butane, iso-butane, and natural gasoline derived from natural gas production and processing activities, as well as crude oil refining processes. Its NGL components are used for various applications, such as heating, engine, and industrial fuels.The company was founded in 1981 and is headquartered in Houston, Texas. Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.

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Frequently Asked Questions

Is PLAINS ALL AMERICAN PIPELINE LP (PAA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), PLAINS ALL AMERICAN PIPELINE LP is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is PLAINS ALL AMERICAN PIPELINE LP's debt ratio?

PLAINS ALL AMERICAN PIPELINE LP's debt ratio is 50.9% 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 29.9%.

What are PLAINS ALL AMERICAN PIPELINE LP's key financial metrics?

PLAINS ALL AMERICAN PIPELINE LP has a market capitalization of $15.8B, trailing P/E ratio of 20.0, and revenue of $44.3B. The company maintains a gross margin of 6.0% and a net margin of 3.2%. Return on equity stands at 10.6%.

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.