Antero Resources Corp (AR)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	453,130	2,573,900	23,860	-953,447	-987,045
Long-term debt	US$ in thousands	1,537,600	1,183,480	2,125,440	3,001,590	3,758,870
Total stockholders’ equity	US$ in thousands	6,981,400	6,754,560	5,757,160	5,767,700	6,970,740
Return on total capital		5.32%	32.42%	0.30%	-10.87%	-9.20%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $453,130K ÷ ($1,537,600K + $6,981,400K)
= 5.32%

The return on total capital of Antero Resources Corp has shown significant fluctuations over the past five years. In 2023, the return on total capital was 7.50%, indicating a moderate return on the company's total invested capital. This is a decrease compared to the exceptionally high return of 35.54% in 2022. The return was notably low in 2020 at -8.87%, reflecting a period of negative returns compared to the capital invested. In 2021, the return improved to 2.46%, but remained relatively low. In 2019, the return was 1.82%, indicating a modest return in that year.

Overall, the return on total capital for Antero Resources Corp has been volatile, with significant fluctuations from year to year. It is important for the company to analyze the underlying factors contributing to these fluctuations and to strive for more consistent and sustainable returns on its total capital in the future.