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Antero Resources Financial Strength

: 5 (As of Jun. 2022)
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Antero Resources has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Antero Resources's Interest Coverage for the quarter that ended in Jun. 2022 was 39.54. Antero Resources's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.52. As of today, Antero Resources's Altman Z-Score is 1.63.


Competitive Comparison

For the Oil & Gas E&P subindustry, Antero Resources's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Antero Resources's Financial Strength distribution charts can be found below:

* The bar in red indicates where Antero Resources's Financial Strength falls into.



Antero Resources Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Antero Resources's Interest Expense for the months ended in Jun. 2022 was $-34 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,353 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $4,427 Mil.

Antero Resources's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1352.71/-34.213
=39.54

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Antero Resources's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(506.724 + 4426.811) / 9402.268
=0.52

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Antero Resources has a Z-score of 1.63, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.63 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.


Antero Resources  (NYSE:AR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Antero Resources has the Financial Strength Rank of 5.


Antero Resources Financial Strength Related Terms

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


Antero Resources Business Description

Antero Resources logo
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 2021, the company reported proven reserves of 17.7 trillion cubic feet of natural gas equivalent. Production averaged approximately 3,268 million cubic feet of equivalent a day in 2021 at a ratio of 31% liquids and 69% natural gas.
Executives
Schultz Yvette K officer: See Remarks. 1615 WYNKOOP STREET DENVER CO 80202
Schroer Brenda R director 600 W. ILLINOIS AVENUE ONE CONCHO CENTER MIDLAND TX 79701
Pearce Sheri officer: See Remarks 1615 WYNKOOP ST. DENVER CO 80202
Mutschler Jacqueline C director 2000 ST. JAMES PLACE HOUSTON TX 77056
Sutil Vicky director 10889 WILSHIRE BLVD. LOS ANGELES CA 90024
Tyree Thomas B Jr director 410 - 17TH STREET SUITE 1400 DENVER CO 80202
Ash W Patrick officer: See Remarks 400 N. SAM HOUSTON PARKWAY E. SUITE 1200 HOUSTON TX 77060
Korus Paul director C/O CIIRMAREX ENERGY CO 707 17TH ST. #3300 DENVER CO 80202-3404
Mcconnell Joyce E. director 1615 WYNKOOP STREET DENVER CO 80202
Sailingstone Capital Partners Llc 10 percent owner 100 WAUGH DRIVE SUITE 600 HOUSTON TX 77007
Settles Kenneth L Jr 10 percent owner 1 CALIFORNIA STREET, SUITE 3050 SAN FRANCISCO CA 94111
Davis Mackenzie B 10 percent owner 1 CALIFORNIA STREET, SUITE 3050 SAN FRANCISCO CA 941111
Sailingstone Holdings Llc 10 percent owner 1 CALIFORNIA STREET, SUITE 3050 SAN FRANCISCO CA 94111
Warburg Pincus Partners, L.p. director, 10 percent owner C/O WARBURG PINCUS LLC 450 LEXINGTON AVENUE NEW YORK NY 10017
Keenan W Howard Jr director 410 PARK AVENUE 20TH FLOOR NEW YORK NY 10022

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