ANTERO RESOURCES Corp (NYSE: AR)

Sector: Energy Industry: Oil & Gas E&P CIK: 0001433270
Market Cap 10.41 Bn
P/B 1.38
P/E 16.40
P/S 1.97
ROIC (Qtr) 5.90
Div Yield % 0.00
Rev 1y % (Qtr) 20.78
Total Debt (Qtr) 3.53 Bn
Debt/Equity (Qtr) 0.47
Add ratio to table...

About

Investment thesis

Bull case

  • Strong operating cash flow of 1.63B provides robust 0.46x coverage of total debt 3.53B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.63B provides exceptional 40.62x coverage of minority interest expenses 40.15M, showing strong core operations.
  • Operating cash flow of 1.63B provides strong 26.82x coverage of stock compensation 60.81M, indicating sustainable incentive practices.
  • Operating cash flow of 1.63B provides exceptional 19.49x coverage of interest expenses 83.68M, showing strong debt service capability.
  • Strong tangible asset base of 13.25B provides 3.76x coverage of total debt 3.53B, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 1.63B barely covers its investment activities of (1.08B), with a coverage ratio of -1.51, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.08B) provide weak support for R&D spending of 2.99M, which is -360.47x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 933.97M show weak coverage of depreciation charges of 753.57M, with a 1.24 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 557.68M represents just -5.30x of debt issuance (105.32M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 753.57M relative to operating cash flow of 1.63B, which is 0.46x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Oil & Gas E&P
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 COP Conocophillips 136.62 Bn 17.10 2.22 23.44 Bn
2 CNQ Canadian Natural Resources Ltd 85.21 Bn 17.67 3.04 12.51 Bn
3 EOG Eog Resources Inc 66.33 Bn -60.48 8.67 8.13 Bn
4 FANG Diamondback Energy, Inc. 49.64 Bn -2,818.83 314.47 16.24 Bn
5 OXY Occidental Petroleum Corp /De/ 37.18 Bn 15.36 2.56 22.88 Bn
6 WDS Woodside Energy Group Ltd 34.64 Bn 11.73 2.51 -
7 TPL Texas Pacific Land Corp 29.74 Bn 126.16 78.66 0.02 Bn
8 DVN Devon Energy Corp/De 18.80 Bn 3.24 1.91 8.55 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.06 1.02
EV to Cash from Ops. EV/CFO 8.57 18.21
EV to Debt EV to Debt 3.96 54.57
EV to EBIT EV/EBIT 14.97 29.98
EV to EBITDA EV/EBITDA 8.54 19.64
EV to Free Cash Flow [EV/FCF] EV/FCF 25.06 39.33
EV to Market Cap EV to Market Cap 1.34 1.57
EV to Revenue EV/Rev 2.65 11.47
Price to Book Value [P/B] P/B 1.38 2.97
Price to Earnings [P/E] P/E 16.40 -25.98
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 26.80
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 31.86
Dividend per Basic Share Div per Share (Qtr) 0.00 0.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.05
Interest Coverage Int. cover (Qtr) 11.16 -4.97
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -49.73 -533.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 52.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1,396.66 6.14
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 113.66 105.89
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,531.44 75.94
EBT Growth (1y) % EBT 1y % (Qtr) 1,494.85 17.44
EPS Growth (1y) % EPS 1y % (Qtr) 1,038.89 3.07
FCF Growth (1y) % FCF 1y % (Qtr) 320.86 -43.36
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 63.55 149.32
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 0.14 1.32
Current Ratio Curr Ratio (Qtr) 0.55 2.37
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 0.34
Interest Cover Ratio Int Coverage (Qtr) 11.16 -4.97
Times Interest Earned Times Interest Earned (Qtr) 11.16 -4.97
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 32.00 16.19
EBIT Margin % EBIT Margin % (Qtr) 17.70 -16.83
EBT Margin % EBT Margin % (Qtr) 16.12 -24.06
Gross Margin % Gross Margin % (Qtr) 40.20 58.92
Net Profit Margin % Net Margin % (Qtr) 12.00 -28.75