Infinity Natural Resources Announces Second Quarter 2025 Results and Maintains 2025 Guidance
Second Quarter 2025 & Recent Highlights
-
Constructed an additional natural gas-weighted pad in
Pennsylvania and commenced drilling activities in July - Drilled seven wells totaling approximately 118,000 lateral feet and completed eight wells and 777 stages
- Placed one oil-weighted well into sales in the Ohio Utica Shale
-
Placed six additional wells into sales in July totaling approximately 86,000 lateral feet comprised of (a) two oil-weighted wells in the Ohio Utica Shale and (b) four natural gas-weighted wells in the Marcellus Shale in
Pennsylvania -
Delivered total net daily production of 33.1 MBoe/d, approximately
19% oil and37% liquids -
Reported net income of
$72.0 million -
Delivered Adjusted EBITDAX(1) of
$49.6 million $16.48 -
Generated
$144.6 million -
Drilling and completion (“D&C”) capital expenditures incurred of
$70.4 million -
Midstream capital expenditures incurred of
$2.7 million -
Total net debt was approximately
$28.1 million -
Total liquidity was
$321.9 million
| ____________________ | |
(1) |
Adjusted EBITDAX and Adjusted EBITDAX Margin 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 second quarter results yet again demonstrated strong operational performance while highlighting the strategic advantages of our diversified Appalachian platform. Our net production for the quarter averaged 33.1 Mboe/d, representing a
"What distinguishes Infinity Natural Resources is our proven operational flexibility across our oil and natural gas assets within Appalachia. The second quarter exemplified this advantage, as we elected to accelerate our next natural gas project while maintaining steady progress on our high-quality
"Looking beyond the second quarter, our overall 2025 development plan remains on track from what we originally outlined earlier this year. We successfully brought online a natural gas project in July, and recently commenced drilling on another natural gas project that we elected to pull forward. With our clean balance sheet featuring minimal net debt and substantial liquidity, we remain well-positioned to pursue accretive growth opportunities as market conditions evolve," concluded Mr. Arnold.
Operational Update
Infinity’s net daily production for the second quarter of 2025 averaged 33.1 MBoe/d, consisting of 19.5 MBoe/d in
The following table sets forth information regarding our production, revenues and realized prices and production costs for the three and six months ended June 30, 2025 and 2024:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Production data: |
|
|
|
|
|
|
|
||||
Oil (MBbls) |
|
559 |
|
|
677 |
|
|
1,301 |
|
|
1,074 |
Natural gas (MMcf) |
|
11,420 |
|
|
7,407 |
|
|
17,939 |
|
|
14,299 |
NGL (MBbls) |
|
551 |
|
|
448 |
|
|
1,111 |
|
|
828 |
Total (MBoe)(1) |
|
3,013 |
|
|
2,360 |
|
|
5,402 |
|
|
4,285 |
Average daily production (MBoe/d)(1) |
|
33,114 |
|
|
25,934 |
|
|
29,844 |
|
|
23,545 |
|
|
|
|
|
|
|
|
||||
Average wellhead realized prices (before giving effect to realized derivatives): |
|
|
|
|
|
|
|
||||
Oil (/Bbl) |
$ |
56.45 |
|
$ |
71.91 |
|
$ |
60.42 |
|
$ |
70.62 |
Natural gas (/Mcf) |
$ |
2.67 |
|
$ |
1.46 |
|
$ |
2.97 |
|
$ |
1.69 |
NGL (/Bbl) |
$ |
18.93 |
|
$ |
23.58 |
|
$ |
22.25 |
|
$ |
24.08 |
|
|
|
|
|
|
|
|
||||
Average wellhead realized prices (after giving effect to realized derivatives): |
|
|
|
|
|
|
|
||||
Oil (/Bbl) |
$ |
65.00 |
|
$ |
66.53 |
|
$ |
64.83 |
|
$ |
67.56 |
Natural gas (/Mcf) |
$ |
2.53 |
|
$ |
1.83 |
|
$ |
2.80 |
|
$ |
2.18 |
NGL (/Bbl) |
$ |
18.22 |
|
$ |
27.33 |
|
$ |
21.96 |
|
$ |
36.64 |
|
|
|
|
|
|
|
|
||||
Operating costs and expenses (per Boe)(1): |
|
|
|
|
|
|
|
||||
Gathering, processing and transportation |
$ |
4.82 |
|
$ |
5.12 |
|
$ |
4.92 |
|
$ |
5.26 |
Lease operating |
|
2.09 |
|
|
2.80 |
|
|
2.54 |
|
|
3.24 |
Production and ad valorem taxes |
|
1.02 |
|
|
0.22 |
|
|
0.69 |
|
|
0.21 |
Depreciation, depletion, and amortization |
|
7.85 |
|
|
8.36 |
|
|
8.31 |
|
|
8.23 |
General and administrative(2) |
|
1.75 |
|
|
1.46 |
|
|
25.36 |
|
|
1.30 |
Total |
$ |
17.52 |
|
$ |
17.95 |
|
$ |
41.83 |
|
$ |
18.24 |
| ____________________ | |
(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 includes (a) a one-time share-based compensation expense of |
Capital Investment
Capital expenditures incurred during the quarter were
Financial Position and Liquidity
As of June 30, 2025, Infinity had approximately
2025 Outlook
Infinity's D&C and midstream capital budgets for 2025 remain unchanged at
Conference Call and Webcast Details
Infinity will host a conference call Tuesday, August 12, 2025, at 10:00 a.m. ET to discuss the results. The conference call will be webcast live on the Company's investor relations (IR) website at https://ir.infinitynaturalresources.com/. In addition, you may participate in the conference call by dialing (800) 715-9871 (
About Infinity
Infinity (NYSE: INR) is a growth oriented, free cash flow generating, independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin. Our operations are focused on the volatile oil window of the Utica Shale in eastern
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, future capital spending plans, capital efficiency, 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,” “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, 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, continued hostilities in the
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 in the future, 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 to 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.
INFINITY NATURAL RESOURCES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (amounts in thousands, except share and per share amounts) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Revenues: |
|
|
|
|
|
|
|
||||||||
Oil, natural gas, and natural gas liquids sales |
$ |
72,471 |
|
|
$ |
70,067 |
|
|
$ |
156,655 |
|
|
$ |
119,906 |
|
Midstream activities |
|
2,005 |
|
|
|
375 |
|
|
|
2,986 |
|
|
|
761 |
|
Total revenues |
$ |
74,476 |
|
|
$ |
70,442 |
|
|
$ |
159,641 |
|
|
$ |
120,667 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Gathering, processing, and transportation |
|
14,515 |
|
|
|
12,072 |
|
|
|
26,585 |
|
|
|
22,528 |
|
Lease operating |
|
6,294 |
|
|
|
6,602 |
|
|
|
13,728 |
|
|
|
13,890 |
|
Production and ad valorem taxes |
|
3,071 |
|
|
|
522 |
|
|
|
3,703 |
|
|
|
881 |
|
Depreciation, depletion, and amortization |
|
23,652 |
|
|
|
19,722 |
|
|
|
44,910 |
|
|
|
35,277 |
|
General and administrative(1) |
|
5,265 |
|
|
|
3,450 |
|
|
|
137,015 |
|
|
|
5,578 |
|
Total operating expenses |
$ |
52,797 |
|
|
$ |
42,368 |
|
|
$ |
225,941 |
|
|
$ |
78,154 |
|
Operating income (loss) |
|
21,679 |
|
|
|
28,074 |
|
|
|
(66,300 |
) |
|
|
42,513 |
|
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Interest, net |
|
(1,360 |
) |
|
|
(4,398 |
) |
|
|
(4,427 |
) |
|
|
(8,971 |
) |
Gain (loss) on derivative instruments |
|
52,121 |
|
|
|
403 |
|
|
|
14,903 |
|
|
|
(23,052 |
) |
Other expense |
|
(1,075 |
) |
|
|
(9 |
) |
|
|
(1,138 |
) |
|
|
(476 |
) |
Net income (loss) before income tax expense (benefit) |
|
71,365 |
|
|
|
24,070 |
|
|
|
(56,962 |
) |
|
|
10,014 |
|
Income tax expense (benefit) |
|
(588 |
) |
|
|
— |
|
|
|
(553 |
) |
|
|
— |
|
Net income (loss) |
$ |
71,954 |
|
|
$ |
24,070 |
|
|
$ |
(56,409 |
) |
|
$ |
10,014 |
|
Net income attributable to Infinity Natural Resources, LLC prior to the reorganization |
|
— |
|
|
|
— |
|
|
|
9,914 |
|
|
|
— |
|
Net income (loss) attributable to redeemable non-controlling interests |
|
53,966 |
|
|
|
— |
|
|
|
(49,742 |
) |
|
|
— |
|
Net income (loss) attributable to Infinity Natural Resources, Inc. |
$ |
17,988 |
|
|
$ |
— |
|
|
$ |
(16,581 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to Infinity Natural Resources, Inc. per share of Class A common stock—basic and diluted |
$ |
1.18 |
|
|
$ |
— |
|
|
$ |
(1.09 |
) |
|
$ |
— |
|
Weighted-average shares of Class A common stock outstanding—basic and diluted |
|
15,237,500 |
|
|
|
— |
|
|
|
15,237,500 |
|
|
|
— |
|
(1) |
General and administrative expense includes a one-time share-based compensation expense of |
INFINITY NATURAL RESOURCES, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (amounts in thousands, except share and per share amounts) |
|||||||
|
June 30, 2025 |
|
December 31, 2024 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
6,282 |
|
|
$ |
2,203 |
|
Accounts receivable: |
|
|
|
||||
Oil and natural gas sales, net |
|
25,906 |
|
|
|
39,314 |
|
Joint interest and other, net |
|
8,441 |
|
|
|
32,229 |
|
Prepaid expenses and other current assets |
|
1,348 |
|
|
|
11,822 |
|
Commodity derivative assets, short term |
|
8,340 |
|
|
|
— |
|
Total current assets |
$ |
50,317 |
|
|
$ |
85,568 |
|
Oil and natural gas properties, full cost method (including |
|
1,114,676 |
|
|
|
933,228 |
|
Midstream and other property and equipment |
|
46,779 |
|
|
|
40,053 |
|
Less: Accumulated depreciation, depletion, and amortization |
|
(197,997 |
) |
|
|
(153,233 |
) |
Property and equipment, net |
$ |
963,458 |
|
|
$ |
820,048 |
|
Operating lease right-of-use assets, net |
|
1,232 |
|
|
|
1,389 |
|
Deferred tax asset, net |
|
604 |
|
|
|
— |
|
Other assets |
|
7,684 |
|
|
|
8,461 |
|
Commodity derivative assets, long-term |
|
307 |
|
|
|
— |
|
Total assets |
$ |
1,023,602 |
|
|
$ |
915,466 |
|
Total Liabilities, Redeemable Interest and Stockholders’ Equity / Members’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
57,645 |
|
|
$ |
51,370 |
|
Royalties payable |
|
23,625 |
|
|
|
23,129 |
|
Accrued liabilities |
|
31,213 |
|
|
|
45,903 |
|
Current portion of long-term debt |
|
63 |
|
|
|
101 |
|
Operating lease liabilities |
|
173 |
|
|
|
247 |
|
Commodity derivative liabilities, short-term |
|
7,147 |
|
|
|
12,596 |
|
Total current liabilities |
$ |
119,866 |
|
|
$ |
133,346 |
|
Long-term Debt |
|
34,378 |
|
|
|
259,406 |
|
Operating lease liabilities, net of current portion |
|
1,059 |
|
|
|
1,142 |
|
Asset retirement obligations |
|
3,250 |
|
|
|
2,988 |
|
Commodity derivative liabilities, long-term |
|
8,726 |
|
|
|
10,342 |
|
Deferred tax liability, net |
|
35 |
|
|
|
— |
|
Total liabilities |
$ |
167,314 |
|
|
$ |
407,224 |
|
Redeemable non-controlling interest |
|
846,145 |
|
|
|
— |
|
Stockholders’ equity / members’ equity |
|
|
|
||||
Members’ equity |
|
— |
|
|
|
508,242 |
|
Class A common stock— |
|
152 |
|
|
|
— |
|
Class B common stock— |
|
456 |
|
|
|
— |
|
Additional paid-in capital |
|
44,392 |
|
|
|
— |
|
Accumulated deficit |
|
(34,857 |
) |
|
|
— |
|
Total stockholders’ equity / members’ equity |
|
10,143 |
|
|
|
508,242 |
|
Total liabilities, redeemable interest and stockholders’ equity / members’ equity |
$ |
1,023,602 |
|
|
$ |
915,466 |
|
INFINITY NATURAL RESOURCES, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (amounts in thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2025 |
|
|
|
2024 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(56,409 |
) |
|
$ |
10,014 |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
Depreciation, depletion, and amortization |
|
44,892 |
|
|
|
35,277 |
|
Amortization of debt issuance costs |
|
1,090 |
|
|
|
953 |
|
Share-based compensation expense |
|
129,188 |
|
|
|
— |
|
Loss (gain) on derivative instruments |
|
(14,903 |
) |
|
|
23,052 |
|
Cash received (paid) on settlement of derivative instruments |
|
(808 |
) |
|
|
15,301 |
|
Non-cash lease expense |
|
163 |
|
|
|
78 |
|
Deferred income taxes |
|
(569 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
37,196 |
|
|
|
3,572 |
|
Prepaid expenses and other assets |
|
863 |
|
|
|
(172 |
) |
Accounts payable |
|
11,443 |
|
|
|
1,090 |
|
Royalties payable |
|
496 |
|
|
|
2,372 |
|
Accrued and other expenses |
|
(2,941 |
) |
|
|
5,218 |
|
Other assets and liabilities |
|
(5,070 |
) |
|
|
36 |
|
Net cash provided by operating activities |
$ |
144,631 |
|
|
$ |
96,791 |
|
Cash flows from investing activities: |
|
|
|
||||
Additions to oil and gas properties |
|
(188,271 |
) |
|
|
(104,870 |
) |
Additions to midstream and other property and equipment |
|
(6,275 |
) |
|
|
(3,501 |
) |
Net cash used in investing activities |
$ |
(194,546 |
) |
|
$ |
(108,371 |
) |
Cash flows from financing activities: |
|
|
|
||||
Borrowings under revolving credit facility |
|
82,000 |
|
|
|
56,500 |
|
Borrowings on notes payable |
|
124 |
|
|
|
— |
|
Payments on revolving credit facility |
|
(307,000 |
) |
|
|
(40,000 |
) |
Proceeds from capital contributions |
|
286,465 |
|
|
|
500 |
|
Payments of debt issuance costs |
|
(645 |
) |
|
|
— |
|
Payments of initial public offering costs |
|
(6,760 |
) |
|
|
— |
|
Payments on notes payable |
|
(190 |
) |
|
|
(63 |
) |
Net cash provided by financing activities |
$ |
53,994 |
|
|
$ |
16,937 |
|
Net increase in cash and cash equivalents |
|
4,079 |
|
|
|
5,357 |
|
Cash and cash equivalents at beginning of period |
|
2,203 |
|
|
|
1,504 |
|
Cash and cash equivalents at end of period |
$ |
6,282 |
|
|
$ |
6,861 |
|
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with
Adjusted EBITDAX
We define Adjusted EBITDAX as net income (loss) plus interest, net, income tax expense, depreciation, depletion, and amortization, unrealized loss (gain) on derivative instruments, net cash settlements received (paid) on derivatives, non-cash compensation expense and non-recurring transaction expenses. 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
The following table provides a reconciliation of our net loss, the most directly comparable financial measure presented in accordance with
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
(in thousands) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
Net income (loss) |
$ |
71,954 |
|
|
$ |
24,070 |
|
|
$ |
(56,409 |
) |
|
$ |
10,014 |
Interest, net |
|
1,360 |
|
|
|
4,398 |
|
|
|
4,427 |
|
|
|
8,971 |
Income tax expense (benefit) |
|
(604 |
) |
|
|
— |
|
|
|
(569 |
) |
|
|
— |
Depreciation, depletion, and amortization |
|
23,652 |
|
|
|
19,722 |
|
|
|
44,910 |
|
|
|
35,277 |
(Gain) loss on derivative instruments |
|
(52,121 |
) |
|
|
(403 |
) |
|
|
(14,903 |
) |
|
|
23,052 |
Net cash settlements received (paid) on derivatives |
|
2,778 |
|
|
|
2,038 |
|
|
|
(806 |
) |
|
|
15,301 |
Non-recurring transaction expenses |
|
331 |
|
|
|
— |
|
|
|
127,190 |
|
|
|
— |
Non-cash compensation expense |
|
2,293 |
|
|
|
— |
|
|
|
3,048 |
|
|
|
— |
Adjusted EBITDAX |
$ |
49,641 |
|
|
$ |
49,825 |
|
|
$ |
106,887 |
|
|
$ |
92,615 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250811625222/en/
Infinity Natural Resources, Inc.
Gregory Pipkin Jr.
Senior Vice President of Corporate Development and Strategy
ir@infinitynr.com
Source: Infinity Natural Resources, Inc.
