Is TRGP (Targa Resources Corp.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, TRGP 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 (32.87% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (0.31% vs ≤33% threshold).

Targa Resources Corp. is a major player in the North American energy sector, specifically operating in the oil and gas midstream industry. The company owns and operates a vast portfolio of assets dedicated to gathering, processing, storing, and transporting natural gas, natural gas liquids (NGLs), and crude oil. For Muslim investors, TRGP represents a fully Halal investment opportunity within the essential energy infrastructure space. The stock successfully passes all four AAOIFI shariah screens, meaning its core business activities and financial structures align with Islamic financial principles. From an Islamic finance perspective, the company's financials are mostly clean, highlighted by a complete absence of interest income and minimal cash reserves at just 0.3% of its market cap. However, investors must carefully note its debt-to-market cap ratio of 32.9%, which is extremely close to the 33% maximum limit allowed by AAOIFI standards. Because this debt ratio borders the permissible limit, halal investors should monitor TRGP's quarterly earnings and market capitalization fluctuations closely. Any significant drop in share price or increase in corporate borrowing could quickly push the stock into non-compliant territory. Targa Resources Corp. operates in the Energy sector under the Oil & Gas Midstream industry and is headquartered in Houston, TX, US. The company is led by CEO Matthew J. Meloy and employs approximately 3,370 people.

TRGP 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. TRGP passed 4 of these 4 screens.

TRGP 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.

TRGP 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.