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Energy: passes sector, often fails ratios

Oil and gas production, pipelines, and utilities all pass the Sharia sector test — energy is permissible. The challenge for capital-heavy operators (pipelines, integrated oils with leveraged balance sheets) is Gate 2 debt thresholds. Pipelines like Enbridge and TC Energy carry interest-bearing debt at 80%+ of market cap, well above the 30-33% caps. Lower-debt E&P names (CNQ, SU, TOU) often pass cleanly.

Summary: Sector PASS for all. E&P names tend to pass ratios; pipelines tend to fail on debt.

Verdicts (AAOIFI default)

TickerCompanySectorDebtCashARVerdict
XOMExxon Mobil CorporationPASS6.79%1.67%7.96%PASS
CVXChevron CorporationPASS10.59%1.64%5.58%PASS
CNQCanadian Natural Resources LimitedPASS16.98%0.69%4.35%PASS
SUSuncor Energy Inc.PASS18.19%4.58%5.66%PASS
CVECenovus Energy Inc.PASS26.16%5.04%4.80%PASS
IMOImperial Oil LimitedPASS6.59%1.82%10.33%PASS
TOUTourmaline Oil Corp.PASS7.45%0.00%3.43%PASS
ARXAccelerant HoldingsFAIL4.13%85.47%33.40%FAIL
ENBEnbridge Inc.PASS87.86%0.91%3.24%FAIL
TRPTC Energy CorporationPASS87.30%0.24%2.35%FAIL
PPLPPL CorporationPASS68.17%3.77%2.45%FAIL

Verdicts shown for AAOIFI standard. Run any ticker against all three standards in the dashboard. Educational use only — confirm with your qualified scholar.

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