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AR (Antero Resources) Degree of Operating Leverage : 6.26 (As of Mar. 2025)


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What is Antero Resources Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Antero Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 6.26. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Antero Resources's Degree of Operating Leverage or its related term are showing as below:

AR's Degree of Operating Leverage is ranked worse than
80.64% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs AR: 6.26

Antero Resources Degree of Operating Leverage Historical Data

The historical data trend for Antero Resources's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Antero Resources Degree of Operating Leverage Chart

Antero Resources Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -62.10 -1.10 -130.21 1.68 22.44

Antero Resources Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.98 2.56 4.80 22.44 6.26

Competitive Comparison of Antero Resources's Degree of Operating Leverage

For the Oil & Gas E&P subindustry, Antero Resources's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Antero Resources's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Antero Resources's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Antero Resources's Degree of Operating Leverage falls into.


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Antero Resources Degree of Operating Leverage Calculation

Antero Resources's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 302.446 (Mar. 2025) / 200.826 (Mar. 2024) - 1 )/( 4453.718 (Mar. 2025) / 4120.447 (Mar. 2024) - 1 )
=0.506/0.0809
=6.26***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Antero Resources  (NYSE:AR) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Antero Resources Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Antero Resources's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Antero Resources Business Description

Industry
Traded in Other Exchanges
Address
1615 Wynkoop Street, Denver, CO, USA, 80202
Antero Resources, based in Denver, engages in the exploration for and production of natural gas and natural gas liquids in the United States and Canada. At the end of 2024, the company reported proven reserves of 17.9 trillion cubic feet of natural gas equivalent. Production averaged approximately 3,424 million cubic feet of equivalent a day in 2024 at a ratio of 35% liquids and 65% natural gas.
Executives
Yvette K Schultz officer: See Remarks. 1615 WYNKOOP STREET, DENVER CO 80202
Keenan W Howard Jr director 410 PARK AVENUE, 20TH FLOOR, NEW YORK NY 10022
Sheri Pearce officer: See Remarks 1615 WYNKOOP ST., DENVER CO 80202
Jacqueline C Mutschler director 2000 ST. JAMES PLACE, HOUSTON TX 77056
Michael N. Kennedy officer: Senior Vice President Finance 707 - 17TH STREET, SUITE 3600, DENVER CO 80202
Robert J Clark director 1401 17TH STREET, SUITE 1200, DENVER CO 80202
W Patrick Ash officer: See Remarks 400 N. SAM HOUSTON PARKWAY E. SUITE 1200, HOUSTON TX 77060
Brenda R Schroer director 600 W. ILLINOIS AVENUE, ONE CONCHO CENTER, MIDLAND TX 79701
Vicky Sutil director 10889 WILSHIRE BLVD., LOS ANGELES CA 90024
Tyree Thomas B Jr director 410 - 17TH STREET, SUITE 1400, DENVER CO 80202
Warburg Pincus Llc 10 percent owner 450 LEXINGTON AVENUE, NEW YORK NY 10017
James R. Levy director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Warburg Pincus Private Equity X O&g, L.p. director, 10 percent owner C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Peter Kagan director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Paul M Rady director, officer: See Remarks 1625 17TH STREET, DENVER CO 80202