INFINITY NATURAL RESOURCES, INC. Q1 FY2025 earnings call

• Zack Arnold highlighted the company's most active operational quarter in history despite a harsh winter, with 6 wells turned to sales (1 in Ohio Utica volatile oil window, 5 in Pennsylvania Marcellus Shale).
• Production increased 13% from Q4 2024 to 26.5 MBoe/d. Drilled 8 wells, TD-ed 4 with 62,000 lateral feet, completed 7 wells with 522 stages.
• In Ohio Utica, 34 wells drilled in volatile oil window with 420,000 lateral feet, longest well averaging ~19,000 feet. Operated well count at 119 at quarter end.
• In Pennsylvania, 5 Marcellus wells turned to sales ahead of schedule, with 67,000 lateral feet, and contracted a second drilling rig for next Marcellus project.
• Strong balance sheet with $7 million net debt and $344 million liquidity at quarter end, allowing flexibility for M&A and strategic opportunities.

In the first quarter of 2025, Infinity Natural Resources achieved a production average of 26.5 million barrels of oil equivalent per day, a 13% increase compared to the fourth quarter of 2024. Operationally, the company drilled 8 wells, TD-ed 4 of them totaling 62,000 lateral feet, and completed 7 wells with 522 stages while pumping 4.6 million barrels of water. In the Ohio Utica, 4 wells were drilled in the first quarter, with 34 total wells in the volatile oil window totaling 420,000 lateral feet. In Pennsylvania, 5 natural gas weighted Marcellus wells turned to sales totaled 67,000 lateral feet. Adjusted EBITDA was $57 million, an $11 million increase from the fourth quarter of 2024, with adjusted EBITDA margin at $23.96/Boe, a $1.73/Boe increase quarter-over-quarter.

• Pulled forward gas-weighted activity, with gas projects moved ahead in response to commodity environment. Projects coming online later in the year will impact 2026 production more than 2025.
• Maintaining CapEx guidance for 2025, with CapEx expected to remain elevated in the first half then decline. Flexibility in capital allocation between oil and gas due to comparable unit costs.
• Actively evaluating 2026 plans, focusing on high return projects on both gas and oil sides based on market conditions.

• Forward-looking statements subject to risks and uncertainties beyond control that could materially differ from statements. Market sentiment and commodity price volatility are key uncertainties.

Q: Scott Hanold asked about pulling forward gas-weighted activity and its impact on production mix.

A: Zack Arnold said gas projects pulled forward will impact 2026 more than 2025, with production mix in 2025 driven by current and next quarter projects.

Q: Michael Scialla inquired about deal flow and acquisition opportunities.

A: Zack Arnold stated they are active in processes, with a strong balance sheet allowing patience in deals, and David Sproule added they are uniquely positioned to create value through M&A as transactions have been accretive.

Q: John Freeman asked about the mix of oil and gas projects and decision factors.

A: Zack Arnold said projects are based on ROI, with flexibility to shift between oil and gas based on market conditions, and David Sproule mentioned projects are hedged to secure DROIs.

Q: Kalei Akamine asked about capital for 2026 and M&A valuations.

A: Zack Arnold said 2025 is a growth year, with 2026 plans evaluated based on returns, and David Sproule noted they are well-positioned with a strong balance sheet to create value through M&A as transactions are accretive.

Q: Scott Hanold followed up on Utica deep gas potential.

A: Zack Arnold said they are encouraged by offset operators' activity, prepared to execute Utica projects when the right time comes, and infrastructure is ready for quick execution.

Q: Michael Scialla asked about activity level and service costs.

A: Zack Arnold said they are maintaining one rig and a frac crew, with service costs in line with expectations, and focusing on seeking efficiencies with service providers.