Is CTRA (Coterra Energy Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CTRA is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (15.04% vs ≤33% threshold), interest income ratio (0.51% vs ≤5% threshold), and cash & securities ratio (0.45% vs ≤33% threshold).

Coterra Energy Inc. is a prominent independent oil and gas exploration and production company operating primarily in the United States. Its core operations focus on extracting oil, natural gas, and natural gas liquids from major resource plays, including the Marcellus Shale in Pennsylvania, the Permian Basin in Texas, and the Anadarko Basin in Oklahoma. For Muslim investors, Coterra Energy represents a compelling, shariah-compliant opportunity in the energy sector. The stock successfully passes all four AAOIFI screening criteria, meaning its core business operations and financial structures perfectly align with Islamic finance principles. From a financial perspective, the company boasts a highly conservative balance sheet that strongly appeals to halal investors. Coterra's debt-to-market cap ratio sits at a healthy 15.0%, and its interest-bearing cash and securities account for just 0.4% of its market capitalization, showcasing minimal exposure to leverage and interest. While the company is firmly compliant, halal investors should periodically monitor its interest income, which currently stands at a negligible 0.51% of total revenue. As energy commodity prices fluctuate, keeping an eye on how the company manages its cash reserves will ensure ongoing adherence to the 5% AAOIFI threshold. Coterra Energy Inc. 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 Thomas E. Jorden and employs approximately 915 people.

CTRA 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. CTRA passed 4 of these 4 screens.

Although CTRA passes all shariah screens, it does earn $14.0M in interest income (0.51% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.51 to purify the income.

CTRA 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.