Antero Resources Corp (AR)
Return on total capital
| 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 | 460 | 152,112 | 213,747 | 186,800 | 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 |
| Long-term debt | US$ in thousands | 1,489,230 | 1,622,320 | 1,591,210 | 1,510,110 | 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 |
| Total stockholders’ equity | US$ in thousands | 7,021,650 | 6,979,960 | 6,985,010 | 7,050,850 | 6,901,520 | 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 |
| Return on total capital | 0.01% | 1.77% | 2.49% | 2.18% | 5.37% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $460K ÷ ($1,489,230K + $7,021,650K)
= 0.01%
Antero Resources Corp's return on total capital has shown significant fluctuations over the past few years. The ratio was negative for most of 2020 and 2021, indicating that the company was not generating sufficient returns to cover its total capital. However, there was a notable turnaround in the later part of 2021 and throughout 2022, with the return on total capital surging to impressive levels.
The return on total capital peaked in September 2022 at 39.10%, reflecting a strong performance in utilizing the total capital invested in the business. Although there was a slight dip in the subsequent quarters, the ratio remained positive through December 2023, showcasing continued profitability.
From March 2024 onwards, the return on total capital experienced a gradual decline, dropping to near-zero levels by December 2024. This decrease indicates a potential decrease in the efficiency of utilizing total capital to generate returns for shareholders.
In summary, Antero Resources Corp's return on total capital has exhibited a volatile pattern, with periods of both strong performance and decline. Monitoring this ratio over time will be crucial in assessing the company's ability to generate returns from its total capital investment.
Peer comparison
Dec 31, 2024