Investment Thesis
Antero Resources demonstrates solid operational efficiency with a 16.7% operating margin and strong free cash flow generation of $1.3B (24.3% FCF margin), indicating robust cash conversion despite a capital-intensive business model. The company maintains a conservative leverage profile (0.19x Debt/Equity) with excellent interest coverage of 12.3x, providing financial flexibility. However, weak liquidity metrics (0.55x current ratio) and modest revenue growth (+2.7% YoY) warrant careful monitoring.
AR Strengths
- Strong free cash flow generation of $1.3B with 24.3% FCF margin demonstrates effective capital allocation
- Conservative debt structure with 0.19x Debt/Equity ratio and 12.3x interest coverage provides financial stability
- Solid operating profitability at 16.7% operating margin and 12.0% net margin in commodity sector
- Substantial cash generation from operations ($1.6B) relative to capex ($351.3M)
AR Risks
- Weak liquidity position with 0.55x current ratio indicates potential short-term cash constraints
- Modest revenue growth of +2.7% YoY suggests limited organic expansion or commodity price headwinds
- Low ROE (8.4%) and ROA (4.8%) indicate inefficient asset utilization despite reasonable profitability
- Net income declined 6.0% YoY despite revenue growth, signaling margin compression
- High insider trading activity (19 Form 4 filings in 90 days) requires scrutiny
Key Metrics to Watch
- Free cash flow sustainability and trend in FCF margin
- Current ratio improvement and working capital management
- Revenue growth acceleration and commodity price exposure
- Return on equity improvement and capital efficiency
- Debt levels and debt/equity ratio trajectory
AR Financial Metrics
AR Profitability Ratios
AR Balance Sheet & Liquidity
AR 5-Year Financial Trend
5-Year Trend Summary: ANTERO RESOURCES Corp's revenue has declined by 21% over the 5-year period, indicating business contraction. The most recent EPS of $0.64 reflects profitable operations.
AR Growth Metrics (YoY)
AR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | -$25.2M | $-0.11 |
| Q2 2025 | $976.9M | $34.7M | $-0.19 |
| Q1 2025 | $1.1B | $34.7M | $0.07 |
| Q3 2024 | $1.0B | -$10.3M | $0.06 |
| Q2 2024 | $937.0M | -$12.2M | $-0.10 |
| Q1 2024 | $1.1B | $48.3M | $0.12 |
| Q3 2023 | $1.1B | $32.6M | $0.06 |
| Q2 2023 | $937.0M | -$67.9M | $-0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AR Capital Allocation
AR SEC Filings
Access official SEC EDGAR filings for ANTERO RESOURCES Corp (CIK: 0001433270)