TSX Shariah screener · October 2026

Is Questerre Energy Corporation (QEC) Halal?

FAIL

Questerre Energy Corporation · TSX: QEC · Energy

The short answer

No — Questerre Energy (QEC) fails this Shariah stock screen. Its oil and gas business is permissible and its interest income is negligible (~0.1% of revenue), but interest-bearing debt of C$116.7M at June 30, 2026 — the US$80M senior secured bonds assumed with the PX Energy acquisition — is about 89% of the ~C$131.3M market cap, far above the ~33% debt ceiling. No Zoya, Musaffa, or ShariaPortfolio rating was found for this ticker — honestly reported as absent, not invented.

Gate 1 — Business activity: PASS

Questerre Energy Corporation (TSX:QEC, also listed on the Oslo Stock Exchange) acquires, explores for, and develops non-conventional oil and gas projects — tight oil, oil shale, shale oil and shale gas — with production in Western Canada (Kakwa, Antler) and southern Brazil (PX Energy), plus Red Leaf oil-shale technology. No alcohol, pork, gambling, conventional interest-based lending, tobacco, cannabis, weapons, or adult-entertainment lines were disclosed. On January 27, 2026, the company reorganized: each existing Common Share was exchanged for one new Common Share plus one Series 2 Preferred Share designed to track the economic performance of the Quebec (Utica) assets, ring-fencing them for then-current shareholders; the listed QEC common shares now represent the company excluding the Quebec assets. In June 2026 the preferred shares were listed on Euronext Growth Oslo under the ticker QGAS. This screen covers only the listed common shares. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: FAIL

Interest-bearing debt at June 30, 2026 was C$116.7M — the carrying value of the US$80M senior secured bonds assumed with the September 2025 PX Energy acquisition (including the embedded derivative; the bonds mature in April 2028 and are ring-fenced to PX Energy with no parental guarantee) — against a market cap of roughly C$131.3M (C$0.295 per share, October 1, 2026). Debt ÷ market cap is about 89%, far above the ~33% ceiling. Cash of C$44.2M is about 34% of market cap. Gate 2 fails. Facts only.

Gate 3 — Non-compliant income: PASS

Note 19 of the Q2 2026 financial statements separately discloses interest income from leases of C$26K in the quarter (C$50K year to date) against petroleum and natural gas revenue of C$50.1M (C$93.1M year to date) — about 0.1%, well under the 5% non-compliant income limit. The larger finance-income items are a foreign-exchange gain and a change in the fair value of the bond's embedded derivative, not interest. Gate 3 passes. Facts only.

Key figures used

Secured debt carrying value: C$116.7M at Jun 30, 2026 (US$80M face, maturing Apr 2028, ring-fenced to PX Energy; no parental guarantee)
Debt ÷ market cap: ~88.9% (C$116.7M ÷ ~C$131.3M at C$0.295, Oct 1, 2026) — above the ~33% ceiling
Revenue: C$50.1M (Q2 2026) / C$93.1M (YTD); separately-disclosed interest income from leases C$26K / C$50K ≈ 0.1%
Cash and cash equivalents: C$44.2M at Jun 30, 2026 (~34% of market cap); working capital deficit C$19.1M
Reorg (Jan 27, 2026): 1 old common → 1 new common + 1 Series 2 preferred tracking Quebec/Utica assets; prefs listed on Euronext Growth Oslo as QGAS in Jun 2026
Also listed on the Oslo Stock Exchange; operating segments: Brazil, Western Canada, Quebec (legal claim), Corporate & other

Frequently asked questions

Is Questerre Energy (QEC) halal?

No. Questerre Energy fails this Shariah stock screen. Its oil and gas business is permissible and its interest income is negligible (about 0.1% of revenue), but interest-bearing debt of C$116.7M at June 30, 2026 — the US$80M senior secured bonds assumed with the PX Energy acquisition — is about 89% of the ~C$131.3M market cap, far above the ~33% debt ceiling. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Questerre Energy's debt-to-market-cap ratio?

About 88.9%. The carrying value of the US$80M senior secured bonds assumed with the September 2025 PX Energy acquisition was C$116.7M at June 30, 2026 (including the embedded derivative; the bonds mature in April 2028 and are ring-fenced to PX Energy), against a market cap of roughly C$131.3M (C$0.295 per share, October 1, 2026) — far above the ~33% ceiling.

What does Questerre Energy do, and what changed in the January 2026 reorganization?

Questerre Energy Corporation (TSX:QEC, also listed on the Oslo Stock Exchange) acquires, explores for, and develops non-conventional oil and gas projects — tight oil, oil shale, shale oil and shale gas — with production in Western Canada (Kakwa, Antler) and southern Brazil (PX Energy), plus Red Leaf oil-shale technology. On January 27, 2026, each existing Common Share was exchanged for one new Common Share plus one Series 2 Preferred Share designed to track the economic performance of the Quebec (Utica) assets, ring-fencing them for then-current shareholders; the preferred shares were listed on Euronext Growth Oslo under the ticker QGAS in June 2026. This screen covers only the listed common shares.

How much interest income does Questerre Energy earn relative to revenue?

Very little. Note 19 of the Q2 2026 financial statements separately discloses interest income from leases of C$26K in the quarter (C$50K year to date) against revenue of C$50.1M (C$93.1M year to date) — about 0.1%, well under the 5% ceiling. Even adding the C$351K of 'income from financial investments' keeps the ratio under 1%.

Where can I find more energy stock screeners?

See halal-stock-verdicts.html for the full list of stock screeners, including the other energy-sector entries.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).