Is USEG (U.S. Energy Corp.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, USEG 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 (7.64% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (1.51% vs ≤33% threshold).

U.S. Energy Corp. (USEG) is an independent energy company focused on the acquisition, exploration, and development of oil and natural gas properties across the continental United States. Based in Houston, Texas, the company holds significant interests in the Williston and Permian Basins, boasting over 1.3 million barrels of oil equivalent in proved reserves. For Muslim investors, USEG represents a fully Halal investment opportunity within the traditional energy sector. The stock successfully passes all four AAOIFI shariah screens, meaning its core operations and financial structures strictly align with Islamic finance principles. The company demonstrates excellent financial health from a shariah perspective, highlighted by a very conservative debt-to-market cap ratio of just 7.6%. Additionally, USEG carries a cash-to-market cap ratio of only 1.5% and generates 0.00% of its revenue from impermissible interest income, making it a highly compliant choice for a halal portfolio. Since oil and gas exploration is universally accepted as a permissible business activity, there is no significant scholarly debate regarding USEG's operations. However, halal investors should continue to monitor the company's debt levels during future property acquisitions to ensure the debt-to-market cap ratio remains comfortably below the 33% AAOIFI threshold. U.S. Energy Corp. 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 Ryan Lewis Smith and employs approximately 20 people.

USEG 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. USEG passed 4 of these 4 screens.

USEG 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.

USEG was last screened on 2026-04-27. 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.