Is APA (APA Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, APA is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in APA.

APA Corporation is a major energy company that explores for, develops, and produces oil and gas properties across the United States, Egypt, the United Kingdom, and offshore Suriname. Beyond exploration, the Houston-based firm operates vital gathering, processing, and transmission assets in West Texas, including ownership in four Permian-to-Gulf Coast pipelines. For Muslim investors, APA Corporation currently holds a Doubtful status based on AAOIFI screening standards. While the underlying energy business is entirely permissible, the stock fails the financial screening criteria due to its debt levels, meaning it cannot currently be considered a halal investment. The primary concern from an Islamic finance perspective is APA's debt-to-market capitalization ratio, which stands at 34.0%, just over the 33% maximum limit. On a positive note, the company maintains a clean revenue stream with 0.00% interest income and holds a highly compliant cash-to-market cap ratio of 3.6%. Because the debt ratio is only slightly above the AAOIFI threshold, market cap fluctuations could easily push APA back into compliance. Halal investors should monitor the stock closely during upcoming earnings reports and market cycles to see if its leverage profile improves. APA Corporation operates in the Energy sector under the Oil & Gas Exploration & Production industry and is headquartered in Houston, TX, US. The company is led by CEO John J. Christmann and employs approximately 1,791 people.

APA was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. APA passed 3 of these 4 screens.

APA was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.