Infinity Natural Resources Announces First Quarter 2026 Results

Published: 2026-05-12 16:16:11 ET INR

Published on 05/12/2026 at 04:16 pm EDT

Infinity Natural Resources, Inc. (“Infinity” or the “Company”) (NYSE: INR) today reported its first quarter 2026 financial and operating results.

First Quarter 2026 & Recent Highlights

(1)

Adjusted EBITDAX, Adjusted EBITDAX Margin and net debt are non-GAAP financial measures. Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included in the section titled "Non-GAAP Financial Measures."

Management Commentary

“Our focus at Infinity is executing and advancing development of our assets in a safe and capitally efficient manner,” said Zack Arnold, President and CEO of Infinity. “Following the recent closing of our Ohio and Pennsylvania acquisitions, the preferred equity investment and the successful issuance of our inaugural senior notes, Infinity is well positioned with increased scale, expanded inventory and enhanced financial flexibility to support continued growth across our Appalachian portfolio.”

“Our team is focused on continuing to integrate the newly acquired assets, evaluating development opportunities and identifying operational and infrastructure synergies that can enhance returns. Our integrated upstream and midstream footprint allows us to control the development cadence of our inventory while utilizing existing infrastructure to reduce costs and enhance market access. At the end of the first quarter, approximately 75% of our natural gas volumes were flowing through our owned midstream system.”

“Looking ahead, our development strategy remains focused on disciplined capital allocation and delivering attractive returns. The depth and diversity of our portfolio across the Utica and Marcellus Shales provide meaningful flexibility as we allocate capital to maximize returns. We will continue to align our development plans with hedging opportunities to ensure we remain well positioned as market conditions evolve,” concluded Mr. Arnold.

Operational Update

The following table sets forth information regarding our production, revenues and realized prices and production costs for the first quarter of 2026 and 2025:

Three Months Ended

March 31,

2026

2025

Production data:

Oil (MBbls)

864

742

Natural gas (MMcf)

17,531

6,519

NGL (MBbls)

703

561

Total (MMcfe)(1)

26,933

14,337

Average daily production (Mcfe/d)(1)

299,256

159,300

Average wellhead realized prices (before giving effect to realized derivatives):

Oil (/Bbl)

65.77

63.40

Natural gas (/Mcf)

4.23

3.51

NGL (/Bbl)

28.17

25.49

Average wellhead realized prices (after giving effect to realized derivatives):

Oil (/Bbl)

58.40

64.70

Natural gas (/Mcf)

3.54

3.30

NGL (/Bbl)

28.89

25.27

Operating costs and expenses (per Mcfe)(1):

Gathering, processing and transportation

0.73

0.84

Lease operating

0.33

0.47

Production and ad valorem taxes

0.09

0.04

Midstream operations and maintenance expense

0.05

Depreciation, depletion, and amortization

1.32

1.48

General and administrative(2)

0.80

9.19

Total

3.32

12.08

Controllable Cash Costs (per Mcfe):

Gathering, processing and transportation

0.73

0.84

Lease operating

0.33

0.47

Production and ad valorem taxes

0.09

0.04

Midstream operations and maintenance expense

0.05

Recurring Cash G&A(3)

0.22

0.34

Total Controllable Cash Costs

1.43

1.74

(1)

Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Boe.

(2)

General and administrative expense ("G&A") includes a one-time share-based compensation expense of $126.1 million for the three months ended March 31, 2025 incurred in connection with the Company's initial public offering ("IPO").

(3)

Recurring Cash G&A is a non-GAAP financial measure. Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included in the section titled "Non-GAAP Financial Measures."

Capital Investment

Capital expenditures incurred during the quarter were $122.6 million, which included $111.5 million on development activities ($109.7 million on D&C and $1.8 million on midstream) and $11.1 million on land activities.

Financial Position and Liquidity

As of March 31, 2026, Infinity had no borrowings under its revolving credit facility, $19.2 million in letters of credit and liquidity of $928.8 million, including $73.0 million of cash and cash equivalents and $855.8 million of available borrowing capacity under its revolving credit facility.

2026 Capital & Production Guidance

Infinity is reaffirming its 2026 capital & production guidance from its fourth quarter earnings press release. Infinity’s capital budget for 2026 is $450 million to $500 million related to development activities, including D&C and midstream. Net production is expected to be between 345 and 375 MMcfe/d for 2026, with natural gas expected to be between 235 and 255 MMcfe/d and oil and liquids expected to be between 18 and 20 Mbbls/d.

Share Repurchase Program

In November 2025, our board of directors authorized a share repurchase program, whereby we may purchase up to an aggregate of $75.0 million of our Class A common stock. As of March 31, 2026, we have $73.8 million remaining under our existing repurchase program.

Conference Call and Webcast Details

Infinity will host a conference call Wednesday, May 13, 2026, at 10:00 a.m. ET to discuss the results. To participate in the call, register at https://events.q4inc.com/analyst/805823647?pwd=C2fZN5eO or dial +1 585 542 9983 (U.S. Local) or +1 833 461 5787 (U.S. Toll-Free), using Meeting ID: 805823647. A unique dial-in code will be provided upon registration via link. The conference call will also be webcast live on the Company’s investor relations website at https://ir.infinitynaturalresources.com/. A replay of the call will be available approximately two hours after the live call concludes and will remain accessible for 14 days at https://events.q4inc.com/attendee/80582364 and on the investor relations website.

About Infinity

Infinity (NYSE: INR) is a growth oriented, independent energy company focused on the acquisition, development, production and gathering of hydrocarbons in the Appalachian Basin. Our operations are focused on the Utica Shale in eastern Ohio as well as our stacked dry gas assets in both the Marcellus and Utica Shales in southwestern Pennsylvania.

Cautionary Statement Regarding Forward-Looking Statements

This release contains statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. All statements, other than statements of historical fact, included in this release regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management, future commodity prices, future production targets, leverage targets or debt repayment, hedging strategy, future capital spending plans, capital efficiency, our ability to make share repurchases, expected drilling and completions plans and projected well costs are forward-looking statements. When used in this release, words such as “may,” “assume,” “forecast,” “could,” “should,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” "target," "outlook," "guidance," “budget” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events at the time such statement was made.

Such statements are subject to a number of assumptions, risks and uncertainties, including those incident to the development, production, gathering and sale of oil, natural gas and NGLs, most of which are difficult to predict and many of which are beyond the control of the Company. These include, but are not limited to, our failure to realize, in full or at all, the anticipated benefits of capital raising transactions and acquisitions, including synergies; commodity price volatility; inflation; lack of availability and cost of drilling, completion and production equipment and services; supply chain disruption; project construction delays; environmental risks; drilling, completion and other operating risks; lack of availability or capacity of midstream gathering and transportation infrastructure; regulatory changes; the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital; the timing of development expenditures; the concentration of the Company’s operations in the Appalachian Basin; difficult and adverse conditions in the domestic and global capital and credit markets; impacts of geopolitical events and world health events, including trade wars; lack of transportation and storage capacity as a result of oversupply, government regulations or other factors; potential financial losses or earnings reductions resulting from the Company’s commodity price risk management program or any inability to manage its commodity risks; failure to realize expected value creation from property acquisitions and trades; weather related risks; competition in the oil and natural gas industry; loss of production and leasehold rights due to mechanical failure or depletion of wells and the Company’s inability to re-establish production; the Company’s ability to service its indebtedness; political and economic conditions and events in foreign oil and natural gas producing countries, including embargoes, armed conflicts, political instability and civil unrest, including instability in the Middle East, Venezuela and Mexico and other sustained military campaigns, the armed conflict in Ukraine and associated economic sanctions on Russia, conditions in South America, Central America, China and Russia, and acts of terrorism or sabotage; evolving cybersecurity risks such as those involving unauthorized access, denial-of-service attacks, malicious software, data privacy breaches by employees, insiders or others with authorized access, cyber or phishing-attacks, ransomware, social engineering, physical breaches or other actions; risks related to the Company’s ability to expand its business, including through the recruitment and retention of qualified personnel; and the other risks described in our filings with the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimates depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any future production and development program. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, and in other filings we make with the SEC, for a discussion of the risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. As a result, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Therefore, these forward-looking statements are not a guarantee of our performance, and you should not place undue reliance on such statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except to the extent required by law.

Source: Infinity Natural Resources, Inc.

INFINITY NATURAL RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(amounts in thousands, except share and per share amounts)

Three Months Ended March 31,

2026

2025

Revenues:

Oil, natural gas, and natural gas liquids sales

150,704

84,184

Midstream activities

4,168

981

Total revenues

154,872

85,165

Operating expenses:

Gathering, processing, and transportation

19,723

12,070

Lease operating

8,916

6,772

Production and ad valorem taxes

2,349

632

Midstream operations and maintenance expense

1,478

662

Depreciation, depletion, and amortization

35,660

21,258

General and administrative(1)

21,413

131,750

Total operating expenses

89,539

173,144

Operating income (loss)

65,333

(87,979

)

Other income (expense):

Interest, net

(5,789

)

(3,067

)

Loss on derivative instruments

(65,134

)

(37,218

)

Other expense

(1,101

)

(63

)

Net loss before income tax expense (benefit)

(6,691

)

(128,327

)

Income tax expense (benefit)

(348

)

Net loss

(6,343

)

(128,362

)

Net income attributable to Infinity Natural Resources, LLC prior to the reorganization

—

9,914

Net loss attributable to redeemable non-controlling interests

(4,472

)

(103,707

)

Net loss attributable to Infinity Natural Resources, Inc.

(1,871

)

(34,569

)

Net income attributable to Infinity Natural Resources, Inc. per share of Class A common stock

Basic:

Weighted-average common stock outstanding

17,662,870

15,237,500

Net loss per share of Class A common stock

(0.35

)

(2.27

)

Diluted:

Weighted-average common stock outstanding

17,662,870

15,237,500

Net loss per share of Class A common stock

(0.35

)

(2.27

)

(1)

General and administrative expense includes share-based compensation of $126.1 million for the three months ended March 31, 2025, incurred in connection with the Company's IPO.

INFINITY NATURAL RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(amounts in thousands, except share and per share amounts)

March 31, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

72,983

2,849

Accounts receivable:

Oil and natural gas sales, net

72,380

54,836

Joint interest and other, net

13,042

12,912

Short-term deposit on acquisitions

—

61,200

Prepaid expenses and other current assets

8,474

4,002

Commodity derivative assets

10,814

24,838

Total current assets

177,693

160,637

Oil and natural gas properties, full cost method (including $126.4 million and $88.7 million as of March 31, 2026 and December 31, 2025, respectively excluded from amortization)

1,842,791

1,264,212

Midstream and other property and equipment

343,066

57,116

Less: Accumulated depreciation, depletion, and amortization

(292,235

)

(256,712

)

Property and equipment, net

1,893,622

1,064,616

Operating lease right-of-use assets, net

1,684

1,147

Deferred tax asset, net

5,211

4,858

Other assets

18,585

6,709

Commodity derivative assets

2,692

2,885

Total assets

2,099,487

1,240,852

Total Liabilities, Stockholders’ Equity, Redeemable Interest and Series A Preferred Stock

Current liabilities:

Accounts payable

47,586

38,572

Royalties payable

59,205

39,686

Accrued liabilities and other

65,277

23,021

Operating lease liabilities

535

181

Commodity derivative liabilities, short-term

30,931

1,106

Total current liabilities

203,534

102,566

Long-term debt

537,648

150,862

Operating lease liabilities, non-current

1,149

966

Asset retirement obligations

7,424

3,636

Commodity derivative liabilities

6,461

3,361

Tax receivable agreement

3,585

1,537

Total liabilities

759,801

262,928

Series A Preferred Stock ($0.01 par value, 350,000 and 0 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

338,221

—

Redeemable non-controlling interest

822,165

670,785

Stockholders’ equity / members’ equity

Class A common stock—$0.01 par value; 400,000,000 shares authorized, 18,751,177 and 15,542,521 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

187

155

Class B common stock—$0.01 par value; 150,000,000 shares authorized, 44,780,230 and 45,247,974 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

447

452

Additional paid-in capital

189,222

310,972

Accumulated deficit

(10,556

)

(4,440

)

Total stockholders’ equity

179,300

307,139

Total liabilities, stockholders’ equity, redeemable interest and Series A preferred stock

2,099,487

1,240,852

INFINITY NATURAL RESOURCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

(amounts in thousands)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net loss

(6,343

)

(128,362

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation, depletion, and amortization

35,660

21,258

Amortization of debt issuance costs

1,511

527

Loss on extinguishment of debt

316

—

Share-based compensation expense

2,262

126,895

Loss on derivative instruments

65,134

37,218

Cash paid on settlement of derivative instruments

(17,992

)

(3,585

)

Non-cash lease expense

Deferred income taxes

(353

)

Changes in operating assets and liabilities:

Accounts receivable

(17,674

)

22,013

Prepaid expenses and other assets

(4,635

)

(1,151

)

Accounts payable

(13,697

)

(978

)

Royalties payable

6,463

3,319

Accrued and other expenses

7,812

(4,707

)

Other assets and liabilities

(109

)

1,667

Net cash provided by operating activities

58,427

74,229

Cash flows from investing activities:

Additions to oil and gas properties

(75,570

)

(105,600

)

Acquisitions of oil and gas properties and midstream assets

(622,534

)

—

Additions to midstream and other property and equipment

(808

)

(2,766

)

Net cash used in investing activities

(698,912

)

(108,431

)

Cash flows from financing activities:

Borrowings under revolving credit facility

430,530

56,000

Payments on revolving credit facility

(581,376

)

(304,000

)

Proceeds from issuance of Notes

550,000

—

Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts and commissions

—

286,465

Proceeds from issuance of Series A preferred stock

350,000

—

Payments of credit facility debt issuance costs

(13,257

)

(645

)

Payments of Notes debt issuance costs

(9,626

)

—

Cancelled shares withheld for taxes from vesting of RSUs

(1,201

)

—

Payments of Series A preferred stock issuance costs

(14,396

)

—

Payments on notes payable

(55

)

(37

)

Payments of initial public offering costs

—

(925

)

Net cash provided by financing activities

710,619

36,858

Net increase in cash and cash equivalents

70,134

2,656

Cash and cash equivalents at beginning of period

2,849

2,203

Cash and cash equivalents at end of period

72,983

4,859

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), our earnings release contains non-GAAP financial measures as described below.

Adjusted EBITDAX, Adjusted EBITDAX Margin, Net Debt and Recurring Cash G&A

We define Adjusted EBITDAX as net income (loss) plus interest, net, income tax expense (benefit), depreciation, depletion, and amortization, unrealized loss (gain) on derivative instruments, net cash settlements received (paid) on derivatives, non-recurring transaction expenses and non-cash compensation expense. We believe Adjusted EBITDAX is useful because it makes for an easier comparison of our operating performance, without regard to our financing methods, corporate form or capital structure. We determined our adjustments from net income (loss) to arrive at Adjusted EBITDAX to reflect the substantial variance in practice from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Adjusted EBITDAX should not be considered more meaningful than or as an alternative to net income (loss) determined in accordance with U.S. GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of Adjusted EBITDAX may differ from and may not be comparable to similarly titled measures of other companies. Adjusted EBITDAX Margin is defined as Adjusted EBITDAX divided by total production.

Net debt is defined as total long-term debt less cash and cash equivalents. Management uses net debt to evaluate its financial position, including its ability to service its debt obligations.

Recurring Cash G&A is defined as GAAP general and administrative expense exclusive of the Company's stock-based compensation and non-recurring transaction expenses. Recurring Cash G&A per Mcfe is defined as Recurring Cash G&A divided by total production for a period. These metrics are used by management because they isolate cash costs within G&A expense and measure cash costs relative to overall production, which is a widely utilized metric to evaluate operational performance within the energy sector. We believe Recurring Cash G&A and Recurring Cash G&A per Mcfe provide external users of the Company’s consolidated financial statements with additional information to assist in their analysis of the Company.

The following table provides a reconciliation of our net loss, the most directly comparable financial measure presented in accordance with U.S. GAAP, to Adjusted EBITDAX for the periods presented herein:

Three Months Ended

March 31,

(in thousands)

2026

2025

Net income (loss)

(6,343

)

(128,363

)

Interest, net

5,789

3,067

Income tax expense (benefit)

(348

)

Depreciation, depletion, and amortization

35,660

21,258

Loss on derivative instruments

65,134

37,218

Net cash settlements received (paid) on derivatives

(17,992

)

(3,585

)

Non-cash compensation expense

1,912

755

Non-recurring transaction expenses(1)

13,452

126,860

Adjusted EBITDAX

97,264

57,246

(1)

Consists primarily of fees and expenses related to the Antero Acquisition in 2026 and one-time, non‑cash stock‑based compensation associated with the Company’s IPO in 2025.

The following table provides a reconciliation of total debt, the most directly comparable financial measure presented in accordance with U.S. GAAP, to net debt:

March 31, 2026

December 31, 2025

(in thousands)

Credit facility borrowings

—

150,862

7.625% senior notes due 2031

550,000

—

Total long-term debt(1)

550,000

150,862

Less: Cash and cash equivalents

72,983

2,849

Net debt(1)

477,017

148,013

(1)

Includes $61.2 million of borrowings to fund a short-term deposit associated with the Antero Acquisition as of December 31, 2025.

The following table provides a reconciliation of general and administrative expense, the most directly comparable financial measure presented in accordance with U.S. GAAP, to Recurring Cash G&A:

Three months ended March 31,

2026

2025

(in thousands)

General and administrative

21,413

131,750

Non-cash compensation expense

1,912

755

Non-recurring transaction expenses(1)

13,452

126,860

Recurring Cash G&A

6,049

4,135

(1)

Consists primarily of fees and expenses related to the Antero Acquisition in 2026 and one-time, non‑cash stock‑based compensation associated with the Company’s IPO in 2025.

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