Is TPL (Texas Pacific Land Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TPL 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 (0.11% vs ≤33% threshold), interest income ratio (2.25% vs ≤5% threshold), and cash & securities ratio (0.49% vs ≤33% threshold).

Texas Pacific Land Corporation (TPL) is a major landowner in the state of Texas, managing approximately 880,000 acres. The company primarily generates revenue through land and resource management, water services, and holding substantial oil and gas royalty interests in the Permian Basin. For Muslim investors, TPL represents a fully Halal investment opportunity based on AAOIFI standards. The company successfully passes the core business activity screen, as land leasing and energy royalties are permissible, and it cleanly passes all three financial ratio tests. From an Islamic finance perspective, TPL's balance sheet is incredibly strong. The company carries virtually no debt, with a debt-to-market cap ratio of just 0.1%, and its cash and securities sit at a low 0.5%, meaning investors are buying real, tangible land and energy assets rather than cash. While the stock is currently compliant, Muslim investors should continue to monitor TPL's interest-bearing income. At 2.25% of total revenue, it remains safely below the 5% threshold, but any significant increase in interest-yielding cash reserves could require future purification. Texas Pacific Land Corporation operates in the Energy sector under the Oil & Gas Exploration & Production industry and is headquartered in Dallas, TX, US. The company is led by CEO Tyler Glover and employs approximately 111 people.

TPL 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. TPL passed 4 of these 4 screens.

Although TPL passes all shariah screens, it does earn $18.0M in interest income (2.25% 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 $2.25 to purify the income.

TPL 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.