Is FANG (Diamondback Energy, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, FANG 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 (25.74% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (0.19% vs ≤33% threshold).

Diamondback Energy, Inc. is an independent energy company focused on the exploration and production of unconventional onshore oil and natural gas. The company primarily operates in the Permian Basin across West Texas and New Mexico, specifically targeting the Spraberry, Wolfcamp, and Bone Spring formations. For Muslim investors, FANG represents a fully Halal investment opportunity in the traditional energy sector. The stock successfully passes all AAOIFI screening criteria, meaning its core business activities and financial structures align closely with Islamic finance principles. From a financial perspective, Diamondback Energy demonstrates strong shariah compliance with a debt-to-market cap ratio of 25.7%, comfortably below the 33% upper threshold. Impressively, the company generates 0.00% interest income, ensuring investors are not exposed to impermissible, riba-based revenue streams. Since oil and gas exploration is universally accepted as a permissible industry, there is no significant scholarly debate regarding FANG's business model. Halal investors should simply monitor the company's debt levels during broader oil price fluctuations to ensure its leverage remains below the 33% limit. Diamondback Energy, Inc. operates in the Energy sector under the Oil & Gas Exploration & Production industry and is headquartered in Midland, TX, US. The company is led by CEO Matthew Kaes Van't Hof and employs approximately 1,983 people.

FANG 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. FANG passed 4 of these 4 screens.

FANG has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

FANG 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.