Antero Resources Corp (AR)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	117,870	110,382	107,074	113,359	125,372	144,000	161,088	176,838	181,868	185,036	187,665	189,513	199,872	207,199	206,910	209,263	228,111	252,308	279,082	294,267
Interest coverage		3.84	11.24	18.30	27.43	20.53	20.05	8.87	-1.56	0.13	-5.88	-6.17	-5.92	-4.77	-5.63	-6.76	-3.30	-4.33	-3.83	0.09	-0.37

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $453,130K ÷ $117,870K
= 3.84

Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations with its operating income. For Antero Resources Corp, the interest coverage ratio has shown varying levels over the past eight quarters.

In Q4 2023, the interest coverage ratio was 5.43, indicating that the company's operating income was sufficient to cover its interest expenses by over five times. This suggests a moderate ability to meet its interest payments.

The interest coverage ratio increased significantly in Q3 2023 to 13.47, and further improved in Q2 2023 to 20.74, hinting at a stronger ability to meet interest obligations. The ratio continued to rise in Q1 2023, reaching 29.74, reflecting an even more robust capacity to cover interest expenses.

In the previous quarters, the interest coverage ratio was also relatively healthy, with values above 9.99 except for an anomaly in Q1 2022 when the ratio was negative (-0.62), indicating that the company's operating income was insufficient to cover its interest expenses during that quarter.

Overall, the trend in Antero Resources Corp's interest coverage ratio shows fluctuations, but generally, the company has demonstrated the ability to comfortably cover its interest payments in most quarters, indicating a satisfactory financial position in terms of servicing its debt. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and the confidence of investors and creditors.