Antero Midstream Partners LP (AM)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	659,166	637,112	636,998	629,768	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
Interest expense (ttm)	US$ in thousands	6,004	6,237	6,172	6,160	5,979	5,911	5,845	5,780	5,716	5,665	5,644	5,571	5,549	5,356	5,046	4,801	4,503	4,359	4,271	4,022
Interest coverage		109.79	102.15	103.21	102.24	102.34	101.56	98.51	96.65	94.38	92.47	93.53	98.89	100.08	101.16	109.35	111.46	-26.12	-97.55	-213.33	-230.80

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $659,166K ÷ $6,004K
= 109.79

The interest coverage ratio of Antero Midstream Partners LP has shown a significant improvement over the period from March 31, 2020, to December 31, 2024. At the beginning of the period, the interest coverage was negative, indicating that the company's operating income was insufficient to cover its interest expenses.

However, starting from March 31, 2021, the interest coverage turned positive and continued to increase steadily over the next few years. This improvement suggests that Antero Midstream Partners LP's operating income has become more robust in relation to its interest expenses, providing a greater buffer against financial risk.

As of December 31, 2024, the interest coverage ratio stands at 109.79, indicating that the company's operating income is able to cover its interest payments over 100 times. This increased coverage ratio demonstrates a healthier financial position for Antero Midstream Partners LP and suggests a reduced risk of default on its debt obligations.