Is Texas Pacific Land Corp (TPL) Halal?

NYSE Energy United States $35.3B
✓ HALAL
Confidence: 95/100
Texas Pacific Land Corp (TPL) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.0% against the AAOIFI threshold of 30%, Texas Pacific Land Corp comfortably passes the key financial ratio tests. The company operates in the Energy sector (Oil & Gas E&P), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.0%
/ 30%
0.4%
/ 30%
0.5%
/ 30%
2.25%
/ 5%
✓ HALAL
DJIM 0.0%
/ 33%
0.4%
/ 33%
0.5%
/ 33%
2.25%
/ 5%
✓ HALAL
MSCI 1.0%
/ 33%
8.9%
/ 33%
10.2%
/ 33%
2.25%
/ 5%
✓ HALAL
S&P 0.0%
/ 33%
0.4%
/ 33%
0.5%
/ 33%
2.25%
/ 5%
✓ HALAL
FTSE 1.0%
/ 33%
8.9%
/ 33%
10.2%
/ 50%
2.25%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
73.5
Forward: 7.0
EPS
$6.96
Dividend Yield
47.0%
Payout: 30.6%
P/B Ratio
24.2
EV/EBITDA
53.6
EV: $35.2B
Revenue
$798M
Growth: 13.9%
Beta
0.7
Low volatility
Current Ratio
4.4

Profitability

Gross Margin 93.3%
Operating Margin 70.6%
Net Margin 60.3%
Return on Equity (ROE) 37.2%
Return on Assets (ROA) 25.8%

Cash Flow & Balance Sheet

Operating Cash Flow$546M
Free Cash Flow$32M
Total Debt$16M
Debt-to-Equity1.2
Current Ratio4.4
Total Assets$1.6B

Price & Trading

Last Close$522.28
50-Day MA$450.57
200-Day MA$348.18
Avg Volume505K
Beta0.7
52-Week Range
$269.23
$547.20

About Texas Pacific Land Corp (TPL)

CEO
Mr. Tyler Glover
Employees
114
Sector
Energy
Industry
Oil & Gas E&P
Country
United States
Exchange
NYSE
Market Cap
$35.3B
Currency
USD

Texas Pacific Land Corporation engages in the land and resource management, and water services and operations businesses. The Land and Resource Management segment manages surface acres of land, and oil and gas royalty interest in Permian Basin. This segment also engages in easements, such as transporting oil, gas and related hydrocarbons, power line and utility, and subsurface wellbore easements. In addition, this segment leases its land for processing, storage, and compression facilities and roads; and is involved in sale of materials, such as caliche, sand, and other material, as well as sells land. The Water Services and Operations segment provides full-service water offerings, including water sourcing, produced-water treatment, infrastructure development, and disposal solutions to operators in the Permian Basin. This segment also holds produced water royalties. The company owns a 1/128th nonparticipating perpetual oil and gas royalty interest (NPRI) under approximately 85,000 acres of land; a 1/16th NPRI under approximately 371,000 acres of land; and approximately 33,000 additional net royalty acres, total of approximately 224,000 NRA located in the Permian Basin. The company was founded in 1888 and is headquartered in Dallas, Texas.

Purification Calculator

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Frequently Asked Questions

Is Texas Pacific Land Corp (TPL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Texas Pacific Land 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 Texas Pacific Land Corp's debt ratio?

Texas Pacific Land Corp's debt ratio is 0.0% 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 1.0%.

Does Texas Pacific Land Corp require dividend purification?

Yes, Texas Pacific Land Corp has an impermissible income ratio of 2.25%, which means 2.25% 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 Texas Pacific Land Corp's key financial metrics?

Texas Pacific Land Corp has a market capitalization of $35.3B, trailing P/E ratio of 73.5, and revenue of $798M. The company maintains a gross margin of 93.3% and a net margin of 60.3%. Return on equity stands at 37.2%.

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.