Antero Midstream Partners LP (AM)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Debt-to-capital ratio		0.60	0.60	0.61	0.58	0.56

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,116,960K ÷ ($3,116,960K + $2,115,170K)
= 0.60

Antero Midstream Partners LP's debt-to-capital ratio has exhibited a generally increasing trend over the past five years. It stood at 0.56 as of December 31, 2020, which indicates that 56% of the company's capital structure was financed through debt at that time. Subsequently, the ratio increased to 0.58 by the end of 2021, 0.61 by the end of 2022, and then decreased slightly to 0.60 by the end of both 2023 and 2024.

The rising ratio suggests that Antero Midstream Partners LP has been relying more on debt financing relative to its total capital structure, which could potentially indicate increased financial leverage and associated risks. The slight decrease in the ratio towards the later years may signal a stabilization or a conscious effort to manage the level of debt relative to the total capital employed.

Overall, monitoring this ratio over time is crucial for assessing the company's capital structure health, risk exposure, and financial flexibility. It is essential for investors and stakeholders to understand the company's debt management practices and evaluate its ability to meet debt obligations while maintaining a healthy balance between debt and equity financing.