Infinity Natural Resources, Inc. (INR) Earnings

Management highlights

### Completed Transformative Acquisitions - Closed the Antero Ohio Utica acquisition (the firm's largest transaction to date) and added working interest in Pennsylvania assets via the Chase acquisition in late February 2026 - Increased operated well count from 154 to 395, expanded midstream infrastructure to over 250 total miles of gathering and water pipelines, and preserved a strong balance sheet via strategic financing of perpetual preferred securities and senior notes - Retained nearly all field employees for the acquired midstream assets and hired new senior leadership including a dedicated VP of Midstream ### Operational Execution Milestones - Net production averaged 299 million cubic feet equivalent per day, an 88% year-over-year increase; Q1 2026 is expected to be the lowest production quarter of 2026, with production expected to grow sequentially each quarter for the remainder of the year - Turned 4 new wells (total 53,000 lateral feet) to sales, added a second frac crew and second drilling rig, stimulated 11 wells and drilled 10 wells to total depth (a new company record) - Average lateral length for new wells exceeded 13,000 feet, with multi-well projects reaching first production within 6-7 months to enable faster capital recycling - Accelerated completion activity in the high-return volatile oil window, pulling four unhedged oil-weighted wells into Q2 2026 from later in the year, retaining flexibility to shift activity to natural gas if market conditions change ### Underutilized Owned Midstream Infrastructure Strategic Advantage - Acquired midstream system includes 140 miles of gathering lines, 90 miles of water lines, 6 compressor stations, 43 compressors, and nearly 80,000 horsepower, operating at less than 25% of current capacity - The turnkey system eliminates the need for most incremental midstream capital for new development, providing a structural cost advantage; 75% of Infinity's current natural gas volumes flow through this owned system, with that share expected to increase as development ramps - Received first third-party volumes on the system in Q1 2026, with plans to grow third-party throughput to drive additional earnings and cash flow over time ### Market Outlook - Management remains constructive on long-term pricing for both liquids and natural gas: Appalachian oil and liquids markets are supported by strong domestic and international refining/chemical demand, while natural gas demand growth is driven by LNG exports, gas-fired power generation, data center development, and long-term industrial expansion, which is expected to tighten regional gas differentials

Guidance

- Full-year 2026 average net production guidance is maintained at 345 to 375 million cubic feet equivalent per day, representing 70% year-over-year production growth - Full-year 2026 gas production is guided to 235 to 255 million cubic feet equivalent per day, and combined oil and liquids production is guided to 18,000 to 20,000 barrels per day - Full-year 2026 total development and midstream capital expenditure guidance is maintained at $450 million to $500 million - Net leverage ratio is expected to decline through 2026 toward the company's target leverage level - Q2 2026 is expected to see 7 new wells turned online with a total of 109,000 lateral feet, including a 4-well volatile oil pad and the first 3 wells from the Antero acquisition - Oil differentials are expected to remain stable at $7 to $8 per barrel in Q2 2026 - Production is expected to increase sequentially quarter-over-quarter through 2026, with Q4 2026 expected to be the highest production quarter of the year - Capital expenditure as a percentage of EBITDA is expected to decline year-over-year in 2026, with this downward trend continuing into future years as the company moves toward positive free cash flow

Segment performance

Infinity Natural Resources reports total revenue of $155 million and adjusted EBITDA of $97 million for Q1 2026. By production segment: 1) Natural gas: Average production of 195 million cubic feet equivalent per day (up 169% year-over-year), representing 65% of total production. 2) Oil: Average production of 9,600 barrels per day (up 16% year-over-year), representing 19% of total production. 3) Natural Gas Liquids (NGL): Average production of 7,800 barrels per day (up 25% year-over-year), representing 16% of total production. Controllable cash operating costs for the quarter were $1.43 per MCFE, down 18% year-over-year. Total capital expenditures were $123 million, with $112 million allocated to development activities and $11 million to land activities.

Risks & headwinds

Forward-looking statements included in this call are subject to risks and uncertainties that could cause actual results to differ materially from projections, including commodity price volatility, macroeconomic conditions, integration risks associated with large recent acquisitions, operational constraints, and regulatory changes. These risks are detailed in the company's SEC filings, and no additional material risks were specifically discussed in this call.

Analyst Q&A

• Q: Can you outline the cadence of oil production growth after pulling forward oil wells, and explain how base decline rates will impact near-term production? /

  A: Late 2025 production growth from Q3/Q4 well turn-ins drove strong base output, and Q1 2026 wells will mostly contribute to Q2 2026 production due to late-quarter completion. Management made modest adjustments to pull forward unhedged oil production to capture current strong pricing, rather than overhauling the full-year development schedule, with multiple previously scheduled wells now coming online in June 2026 rather than later in the year. This acceleration will have these wells at target production rates in July, ahead of original budget, and increases exposure to current favorable oil pricing. New well performance and decline rates have consistently met or exceeded management expectations to date.

• Q: What are your expectations for the upcoming 10,000-foot Utica test well, and what is your capacity for additional large M&A after closing the Antero acquisition? /

  A: The Utica test well is primarily a science/exploration project: the team will drill a vertical pilot hole this year to collect geologic data, with no horizontal drilling or completion planned for 2026. Any full development will not occur until 2027 at the earliest, and the well represents only a small fraction of 2026 total capital spending, which remains focused on high-return, proven development projects. Management is actively evaluating potential incremental M&A opportunities that fit the company's Appalachian-focused portfolio, remains highly selective, and is well-positioned financially to pursue accretive opportunities after successful integration of the Antero assets.

• Q: What optimization opportunities have you identified on the recently acquired Antero producing base, and how will LOE trend through 2026? /

  A: The production engineering team has identified small-scale low-hanging fruit including optimizing bottom hole assemblies and installing plunger lifts to boost output from existing legacy wells. Water reuse capabilities will improve with increased development activity across both the Antero assets and Infinity's legacy holdings, which is expected to deliver net positive cost savings. The Q1 2026 uptick in LOE to $0.33 per MCFE was driven by an extremely cold winter, and LOE is expected to continue its year-over-year declining trend through 2026. Ownership of the Antero midstream system eliminates gathering and compression charges for the acquired assets, which will drive overall cost structure improvements alongside benefits from volumetric growth, and the Antero assets already have a lower baseline cost structure than Infinity's legacy assets.

• Q: How will you allocate midstream system capacity between your own production growth and third-party volumes? /

  A: Infinity will always prioritize its own production growth for midstream capacity first. Third-party volumes are expected to grow naturally alongside Infinity's own development, as other operators hold partial interests in the units Infinity is developing. Management is highly incentivized to fully utilize the underutilized system to generate incremental revenue, and will pursue third-party opportunities as they arise. Third-party revenue is currently immaterial to overall results, so management will provide more detailed updates as volumes ramp through the year.