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