Antero Resources Corp (AR)

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	453,130	1,241,112	1,959,540	3,109,996	2,573,907	2,887,421	1,429,187	-275,283	23,856	-1,087,333	-1,157,368	-1,121,340	-953,447	-1,166,054	-1,397,823	-690,905	-987,045	-966,219	24,463	-108,296
Long-term debt	US$ in thousands	1,537,600	1,606,900	1,492,270	1,312,050	1,183,480	1,172,830	1,577,210	1,959,940	2,125,440	2,341,030	2,415,160	2,568,690	3,001,590	3,158,220	3,518,080	3,707,790	3,758,870	3,703,830	3,602,380	3,475,950
Total stockholders’ equity	US$ in thousands	6,981,400	6,862,080	6,825,890	6,911,360	6,754,560	6,211,480	6,003,610	5,473,790	5,757,160	4,850,300	5,397,460	5,874,690	5,767,700	5,668,130	6,136,160	6,592,540	6,970,740	7,446,700	8,339,700	8,292,800
Return on total capital		5.32%	14.65%	23.56%	37.82%	32.42%	39.10%	18.85%	-3.70%	0.30%	-15.12%	-14.81%	-13.28%	-10.87%	-13.21%	-14.48%	-6.71%	-9.20%	-8.67%	0.20%	-0.92%

December 31, 2023 calculation

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

Antero Resources Corp's return on total capital has exhibited fluctuating trends over the past eight quarters. In the most recent quarter Q4 2023, the return on total capital stood at 7.50%, marking a decline from the previous quarter's 17.54%. These figures indicate a decrease in the efficiency of utilizing total capital to generate profits.

Looking back at the trend over the past year, Q1 2023 represented a significant peak in return on total capital at 40.98%, which then gradually decreased in the following quarters. In Q2 and Q3 2022, the return on total capital was notably strong at 26.69% and 41.73% respectively before experiencing a sharp decline to -1.46% in Q1 2022.

Overall, the return on total capital has shown significant variability in the recent past, underscoring the need for Antero Resources Corp to consistently monitor and optimize its capital efficiency to ensure sustainable profitability and value creation for its stakeholders.