Antero Midstream Partners LP (AM)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	659,166	611,862	539,466	555,327	-117,638
Long-term debt	US$ in thousands	3,116,960	3,213,220	3,361,280	3,122,910	3,091,630
Total stockholders’ equity	US$ in thousands	2,115,170	2,151,730	2,192,320	2,286,700	2,418,290
Return on total capital		12.60%	11.40%	9.71%	10.27%	-2.14%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $659,166K ÷ ($3,116,960K + $2,115,170K)
= 12.60%

Antero Midstream Partners LP's return on total capital has displayed volatility over the past five years. The ratio stood at -2.14% as of December 31, 2020, indicating a negative return on the total capital employed by the company. However, there was a significant improvement in the following years, with the ratio increasing to 10.27% by December 31, 2021, 9.71% by December 31, 2022, 11.40% by December 31, 2023, and reaching 12.60% by December 31, 2024.

Overall, the trend indicates that Antero Midstream Partners LP has been able to enhance its efficiency in generating returns on its total capital over the years. The positive trajectory suggests that the company's capital utilization and operational performance have improved, potentially leading to better profitability and value creation for its stakeholders.