Is ONEOK Stock (OKE) Halal? A Complete Analysis

The Short Answer

ONEOK stock (OKE) is generally considered halal by most Islamic scholars and Sharia screening criteria. ONEOK is one of the largest natural-gas-liquids (NGL) and natural-gas midstream-infrastructure operators in the United States.

NGL transportation, fractionation, storage, marketing, refined-products and crude-oil pipeline-and-terminal services, natural-gas pipeline transportation, and natural-gas gathering and processing are unambiguously permissible at the activity level. The primary consideration is leverage following the recent acquisitions, which should be verified against the 33% Sharia threshold.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)

ONEOK's Business Activity

ONEOK is organized into reporting segments:

• Natural Gas Liquids: Integrated NGL gathering, fractionation, transportation, storage, and marketing, anchored by NGL pipelines connecting the Williston, Powder River, DJ, Permian, and Anadarko basins with the Mid-Continent fractionation hub at Conway, Kansas and the Mont Belvieu, Texas Gulf Coast NGL fractionation and storage hub
• Refined Products and Crude: The Magellan Midstream Partners refined-products and crude-oil pipeline-and-terminal portfolio acquired in 2023 — the longest refined-products pipeline system in the United States
• Natural Gas Pipelines: Interstate and intrastate natural-gas pipelines plus natural-gas storage assets
• Natural Gas Gathering and Processing: Gathering and processing capacity in the major US producing basins, including a substantial Williston and Permian footprint expanded by the 2024 Easton Energy and Medallion Midstream acquisitions

All four segments are permissible at the activity level under standard Sharia methodology.

Concerns to Be Aware Of

1. Elevated Acquisition Leverage

ONEOK's debt-to-market-cap ratio has been elevated by the 2023 Magellan Midstream and 2024 Easton Energy and Medallion Midstream acquisition financing. Verify against the 33% Sharia threshold at the time of investment — ONEOK has been deleveraging through free cash flow generation.

2. Commodity Derivative Hedging

NGL and natural-gas marketing involve commodity-hedging and trading activities. Some Sharia advisory boards apply stricter views on commodity-derivative trading — verify the current treatment at your preferred board.

3. ESG Considerations

Some scholars apply additional scrutiny to fossil-fuel-related businesses on environmental-stewardship (khalifa) grounds. This is an ESG consideration rather than a standard Sharia screen concern.

4. Minor Interest Income

ONEOK holds cash balances that generate small interest income — well below the 5% Sharia threshold.

Financial Ratios (2025)

Based on ONEOK's most recent financial statements:

• Total Debt / Market Cap: Verify against 33% threshold — elevated by recent acquisitions ⚠️
• Interest Income / Revenue: Well under 5% ✅
• Haram Revenue: Negligible ✅
• Business Activity: Permissible energy infrastructure ✅

Verdict from Major Screening Agencies

ONEOK stock is generally screened as compliant (halal) with purification by:

• Zoya App — Compliant with purification (subject to current leverage check) ✅
• MSCI Islamic criteria — Generally included subject to leverage screen ✅
• Most major Sharia advisory boards — Compliant with purification of small interest-income component, subject to verifying leverage ✅

Bottom Line

ONEOK (OKE) is generally halal with purification for Muslim investors. The core business — NGL and natural-gas midstream infrastructure plus the Magellan refined-products and crude-oil pipeline footprint — is unambiguously permissible at the activity level, and the financial screen passes subject to verifying post-acquisition leverage against the 33% threshold.

For Muslim investors seeking midstream-energy exposure, OKE sits alongside other halal-screened names like Williams Companies (WMB), Kinder Morgan (KMI), Enbridge (ENB), and Enterprise Products Partners (EPD).