Antero Resources Corp (AR)

Solvency ratios

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
Debt-to-assets ratio 0.11 0.12 0.12 0.11 0.11 0.12 0.11 0.09 0.08 0.08 0.11 0.14 0.15 0.17 0.19 0.20 0.23 0.24 0.26 0.26
Debt-to-capital ratio 0.17 0.19 0.19 0.18 0.18 0.19 0.18 0.16 0.15 0.16 0.21 0.26 0.27 0.33 0.31 0.30 0.34 0.36 0.36 0.36
Debt-to-equity ratio 0.21 0.23 0.23 0.21 0.22 0.23 0.22 0.19 0.18 0.19 0.26 0.36 0.37 0.48 0.45 0.44 0.52 0.56 0.57 0.56
Financial leverage ratio 1.85 1.89 1.92 1.92 1.96 2.00 2.02 2.01 2.09 2.32 2.37 2.52 2.41 2.78 2.38 2.21 2.28 2.36 2.24 2.20

Antero Resources Corp's solvency ratios have shown a positive trend over the past few years, indicating an improving financial position. The Debt-to-assets ratio has decreased steadily from 0.26 in March 2020 to 0.11 in December 2024. This suggests that the company's debt relative to its total assets has declined, highlighting a better ability to cover its debt obligations.

Similarly, the Debt-to-capital ratio has also witnessed a downward trend, falling from 0.36 in March 2020 to 0.17 in December 2024. This indicates a decreasing reliance on debt to finance the company's operations and investments.

The Debt-to-equity ratio has followed a consistent decline from 0.56 in March 2020 to 0.21 in December 2024, reflecting a reduction in financial leverage and a stronger equity base relative to debt.

The Financial leverage ratio has shown a decreasing pattern, moving from 2.20 in March 2020 to 1.85 in December 2024. This signifies a decline in the company's financial risk and a more favorable capital structure.

Overall, the solvency ratios of Antero Resources Corp demonstrate an improving financial health and a strengthening position in managing its debt and capital structure over the analyzed period.

Coverage ratios

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
Interest coverage 0.12 46.11 59.44 48.60 113.28 44.77 35.51 35.13 20.53 20.05 8.87 -1.56 0.13 -5.88 -6.17 -5.92 -4.77 -5.63 -6.76 -3.30

Antero Resources Corp's interest coverage ratio experienced significant volatility over the period under review. The company's interest coverage was negative in the initial quarters, indicating that its earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses. This raised concerns about the company's financial health and its ability to meet its debt obligations.

However, starting from the third quarter of 2021, Antero Resources Corp's interest coverage ratio showed a positive trend, reaching double digits by the first quarter of 2023. This improvement suggests that the company's earnings were more than sufficient to cover its interest expenses, reflecting a stronger financial position and enhanced debt-servicing capabilities.

The significant increase in the interest coverage ratio in the latter part of the period indicates a substantial improvement in Antero Resources Corp's ability to handle its interest payments. This could be attributed to various factors such as increased profitability, better cost management, or refinancing of debt at lower interest rates.

Overall, the positive trend in Antero Resources Corp's interest coverage ratio from negative values to double-digit figures signifies a notable turnaround in the company's financial performance and debt repayment capacity. This improvement bodes well for the company's sustainability and its ability to manage its financial obligations effectively in the future.