What is SM Energy Company's Shariah compliance score?

SM Energy Company's (SM) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does SM Energy Company pass AAOIFI screening?

SM Energy Company (SM) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (SM: 35.5%), (3) interest-bearing deposits below 30% (SM: 5.7%), and (4) prohibited income below 5% (SM: 0.1%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for SM Energy Company stock?

SM Energy Company (SM) has a non-permissible income ratio of 0.09%. Muslim investors should purify this percentage of any dividends received and capital gains realized from SM shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen SM Energy Company for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for SM Energy Company (SM) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about SM's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is SM Energy Company (SM) halal? Not Halal. Based on AAOIFI screening, SM Energy Company passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

SM: Is SM Energy Company Halal?

Not Halal

SM Energy Company

NYSEEnergyUS

$32.94

+0.83%

AvoidBorderlineClean

About SM Energy Company

SM Energy Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in the state of Texas. As of February 24, 2022, it had 492.0 million barrels of oil equivalent of estimated proved reserves. It also has working interests in 825 gross productive oil wells and 483 gross productive gas wells in the Midland Basin and South Texas. The company was formerly known as St. Mary Land & Exploration Company and changed its name to SM Energy Company in May 2010. SM Energy Company was founded in 1908 and is headquartered in Denver, Colorado.

Sector: Energy · Industry: Oil & Gas Exploration & Production

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap35.5% / 30.0%

Compliance History

Not Halalnow
since Jun 2026
Doubtful
until the change above
Not Halal
until the change above

Tracked since Jun 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: Q1 2026Source: EDGAR

Financial Overview

Market Cap

7.9B

Price

$32.94

Sector

Energy

Industry

Oil & Gas Exploration & Production

Halal Alternatives in Energy

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Kinergy Advancement Bhd

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Solarvest Holdings Bhd

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Frequently Asked Questions

Is SM Energy Company (SM) halal to invest in?

SM Energy Company (SM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did SM Energy Company get a F compliance rating?

SM Energy Company (SM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 35.5% (limit 30%); interest-bearing deposits of 5.7% (limit 30%); prohibited income of 0.09% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change SM Energy Company's Shariah verdict?

SM Energy Company's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is SM Energy Company re-screened for Shariah compliance?

SM Energy Company (SM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.