Is DVN (Devon Energy Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, DVN 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 (28.03% vs ≤33% threshold), interest income ratio (0.33% vs ≤5% threshold), and cash & securities ratio (4.58% vs ≤33% threshold).

Devon Energy Corporation is a major independent energy company operating in the United States, specializing in the exploration and production of oil, natural gas, and natural gas liquids. Headquartered in Oklahoma City, the company manages an extensive portfolio with approximately 5,134 gross active wells across key domestic basins. For Muslim investors, DVN represents a compelling opportunity in the traditional energy sector as it achieves a fully Halal status under AAOIFI standards. The stock successfully passes all four compliance screens, meaning both its core petroleum operations and its financial structures align with Islamic investing principles. From a financial perspective, Devon Energy demonstrates disciplined balance sheet management with a debt-to-market cap ratio of 28.0%, staying safely below the strict 33% upper limit. Additionally, its cash and interest-bearing securities sit at just 4.6% of its market capitalization, and interest income accounts for a mere 0.33% of revenue, ensuring minimal exposure to impermissible financial elements. Since the company operates in a capital-intensive industry, halal investors should continue to monitor its debt levels during periods of volatile oil prices. Ensuring the debt-to-market cap ratio remains below 33% will be key to maintaining its shariah-compliant status over the long term. Devon Energy Corporation operates in the Energy sector under the Oil & Gas Exploration & Production industry and is headquartered in Oklahoma City, OK, US. The company is led by CEO Clay Gaspar and employs approximately 2,300 people.

DVN 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. DVN passed 4 of these 4 screens.

Although DVN passes all shariah screens, it does earn $56.0M in interest income (0.33% 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 $0.33 to purify the income.

DVN 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.