Infinity Natural Resources (NYSE:INR) used its fourth-quarter and full-year 2025 earnings call to highlight production growth, cost improvements, and a stepped-up 2026 development plan supported by recent acquisitions and a new preferred equity investment.
Operational execution and 2025 production growth
President and CEO Zack Arnold said 2025 was “another transformational year” in which the company added scale, increased production, expanded its asset base through acquisitions, accessed capital markets, and preserved operational and financial flexibility across its Appalachian platform.
Operationally, the company emphasized extended laterals and efficiency improvements. In the fourth quarter, Infinity spudded nine wells totaling about 142,000 lateral feet and turned six wells to sales totaling 103,000 lateral feet, evenly split between Ohio oil-weighted projects and Pennsylvania dry gas projects. For the full year, the company turned 23 wells into sales (12 in Pennsylvania and 11 in Ohio). Management said the average well turned into sales in 2025 exceeded 15,700 lateral feet, and it continues to target six-to-seven-month cycle times on development projects.
Arnold said well performance from wells brought online in the second half of 2025 has tracked in line with type curve expectations across both Ohio and Pennsylvania.
Expanded inventory and flexibility across Appalachia
Arnold said Infinity has more than 390 locations across its portfolio—representing “more than 10 years of inventory” on a two-rig program—and described the company’s strategy as balancing oil- and gas-weighted opportunities. He also said well costs are consistent across the company’s Ohio Utica and Pennsylvania Marcellus positions, and that standardized drilling and completion design allows the company to shift activity between the states depending on commodity conditions.
Infinity operated one rig across its base asset during the fourth quarter and added a second rig in January, bringing operated rigs to two. Looking ahead, management said it intends to run two rigs throughout calendar 2026, with slightly more capital allocated toward natural gas-weighted development based on anticipated well turn-in-line timing. Arnold added that about 30% of projected wells turned into sales in 2026 are expected to be on recently acquired assets in eastern Ohio’s rich gas Utica.
Antero and Chase acquisitions, plus preferred equity financing
Infinity highlighted its February 23 closing of a previously announced $1.2 billion acquisition of Ohio Utica assets from Antero Resources and Antero Midstream. Management described the transaction as a complementary bolt-on that adds inventory adjacent to Infinity’s legacy Ohio acreage and includes ownership in the associated midstream system, which management said lowers midstream costs and reduces well break-evens for the acquired assets.
The company expects to devote a rig to develop the acquired assets beginning early in the second quarter, with the first pad from the acquired position expected to come online during the second quarter.
Infinity also discussed the completed Chase acquisition, which increased its working interest in the dry gas South Bend field in Pennsylvania. Arnold characterized the deal as attractive because it increases exposure to future development and production without adding incremental corporate overhead, and noted it was the first post-IPO transaction in which Infinity used equity to acquire assets.
In conjunction with the Antero acquisition, Infinity issued $350 million of perpetual convertible preferred stock to Quantum Capital Group and Carnelian Energy Capital. CFO Dave Sproule said the preferred is convertible into common equity at $21.36 per share, and management emphasized the financing raised equity above the IPO price and provided permanent capital that helped repay revolver borrowings used to finance the Ohio acquisition, while supporting an increase in Infinity’s working interest in the transaction to 60%.
Financial results: EBITDA, costs, capital spending, and liquidity
Sproule reported fourth-quarter Adjusted EBITDA of $94.0 million, an Adjusted EBITDA margin of about $3.76 per Mcfe (or $22.58 per Boe). Realized prices in the quarter averaged $51.22 per barrel for oil, $3.14 per Mcf for natural gas, and $23.56 per barrel for NGLs.
For the full year, Adjusted EBITDA totaled $261 million. Operating costs averaged $5.56 per Boe in the fourth quarter, which management attributed to operational efficiencies and an increasing contribution of Pennsylvania natural gas volumes. Sproule said the company’s costs declined about 36% in the fourth quarter compared with the prior year and suggested further declines could occur as Pennsylvania volumes—on Infinity’s wholly owned midstream system—expand.
For fiscal 2025, the company reported approximately $326 million in capital expenditures, including:
- $274.7 million in drilling and completion spending
- $35.5 million in land spend
- $16.1 million in midstream and infrastructure investments
Sproule also said the company repurchased about 87,000 shares during the fourth quarter at an average price of $13.60 per share, totaling about $1.2 million.
At year-end, Infinity reported net debt of approximately $148 million and total liquidity of approximately $227 million.
2026 guidance, cadence, and capital drivers
For 2026, Infinity guided to net production averaging 345 to 375 MMcfe/d, which management said represents approximately 70% year-over-year growth. The company expects to turn to sales 31 gross wells during calendar 2026, and said it expects to turn four oil-weighted wells in line in the first quarter on its Ohio Utica asset. Sproule said a “good rule of thumb” for Infinity is roughly six to seven months from spud to turn-in-line, and indicated activity is expected to ramp through mid-year and into the fourth quarter.
Development capital expenditures (drilling and completion plus midstream capital) are expected to range from $450 million to $500 million. In Q&A, Arnold said the higher CapEx outlook was not driven by drilling-cost concerns and said the company is not anticipating oilfield services inflation, adding that it expects well costs to stay flat or potentially trend down. He attributed the higher 2026 capital range primarily to factors tied to the Antero transaction, including increased working interest compared with earlier expectations, Infinity bearing completion capital on an early acquired-asset pad (the “English pad”), and the timing of adding a second rig before the acquisition closed. He also noted midstream spending will occur across both Pennsylvania and Ohio as the company builds out infrastructure, but said the company does not break out midstream spending because it can be “fungible” with pad selection and capital allocation.
Management also addressed deep dry gas Utica plans. Arnold said the company has budgeted for a deep Utica well later in the year but will maintain flexibility on whether to proceed depending on gas prices and other factors, adding that the company has a permit in hand and has added internal and field experience for deep Utica drilling. Sproule said the well would likely be drilled in the latter half of 2026 and is not expected to come online this year.
On hedging, management said it uses swaps and collars to de-risk the development program and noted it has locked in oil hedges for 2026 and 2027 in response to what Arnold described as strengthened crude prices across the forward curve. The company said it evaluates whether to accelerate additional oil projects depending on whether elevated prices persist.
In response to a question about potential rig additions, Arnold said the company is “more likely” to consider additional frac crews than a third drilling rig at this stage, while emphasizing that Infinity is not “windsocked” by commodity prices and intends to develop its inventory systematically.
About Infinity Natural Resources (NYSE:INR)
We are a growth oriented, free cash flow generating, independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin. We are focused on creating shareholder value through the identification and disciplined development of low-risk, highly economic oil and natural gas assets while maintaining a strong and flexible balance sheet. Additionally, we have proven our ability to grow our acreage position through organic leasing efforts and accretive acquisitions.
