Antero Resources Corp (AR)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		0.22	0.18	0.37	0.52	0.54

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,537,600K ÷ $6,981,400K
= 0.22

The debt-to-equity ratio of Antero Resources Corp has exhibited a declining trend from 2019 to 2022. In 2019, the ratio stood at 0.54, indicating that the company had higher levels of debt compared to equity. Subsequently, there was a notable decrease in the ratio to 0.52 in 2020 and a further decline to 0.37 in 2021, suggesting a reduction in the company's reliance on debt financing in relation to shareholder equity.

However, in 2022, the debt-to-equity ratio slightly increased to 0.18, reflecting a higher proportion of equity relative to debt within the company's capital structure. This could indicate improved financial stability and a reduced financial risk for the company.

By the end of 2023, the ratio had risen to 0.22, signifying a slight increase in debt relative to equity compared to the previous year. Despite this uptick, the ratio remains relatively low, indicating that Antero Resources Corp continues to maintain a conservative approach to its capital structure by not heavily relying on debt financing.

Overall, the downward trend in the debt-to-equity ratio from 2019 to 2021 followed by a slight increase in 2022, and a subsequent modest rise in 2023, suggests that Antero Resources Corp has been managing its debt levels prudently while gradually strengthening its equity position. Continued monitoring of this ratio will be essential to assess the company's ongoing capital structure and financial risk management strategies.