Antero Midstream Partners LP (AM)

Return on total capital

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 611,862 600,327 575,784 558,657 539,466 523,840 527,891 550,894 555,327 541,790 551,786 535,113 -117,638 -425,224 -911,130 -928,265 -398,493 -217,865 105,421 -23,679
Long-term debt US$ in thousands 3,213,220 3,258,540 3,306,670 3,331,320 3,361,280 3,143,170 3,157,970 3,133,180 3,122,910 3,095,560 3,087,730 3,103,430 3,091,630 3,121,820 3,088,780 3,103,760 2,892,250 2,657,750 2,526,330 2,389,990
Total stockholders’ equity US$ in thousands 2,151,730 2,151,140 2,153,040 2,175,480 2,192,320 2,211,860 2,230,120 2,259,950 2,286,700 2,312,590 2,328,440 2,356,870 2,418,290 2,485,490 2,523,180 2,588,960 3,143,410 3,523,030 3,972,360 4,035,550
Return on total capital 11.40% 11.10% 10.55% 10.14% 9.71% 9.78% 9.80% 10.21% 10.27% 10.02% 10.19% 9.80% -2.14% -7.58% -16.24% -16.31% -6.60% -3.52% 1.62% -0.37%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $611,862K ÷ ($3,213,220K + $2,151,730K)
= 11.40%

The return on total capital for Antero Midstream Corp has been relatively stable over the past eight quarters, ranging from 11.45% to 13.50%. This indicates that the company has been effectively utilizing its total capital to generate returns for its investors.

The gradual increase from Q1 2022 to Q4 2023 suggests a consistent improvement in the company's ability to generate profits relative to its total capital employed. This upward trend is a positive sign, indicating that the company is becoming more efficient in its capital utilization over time.

Overall, the trend in return on total capital demonstrates the company's ability to efficiently allocate resources and generate returns for its capital providers. It is important for Antero Midstream Corp to continue monitoring and improving this ratio to ensure sustainable profitability and value creation for its stakeholders.


Peer comparison

Dec 31, 2023