Infinity Natural Resources, Inc. Q2 FY2025 earnings call

• Production growth of 25% driven by Marcellus Shale wells in Pennsylvania and Ohio oil well turn-ins. - Drilled 7 wells totaling 118,000 lateral feet, focusing on long lateral development. - Stimulated 8 wells completing 777 stages. - Resolved midstream constraints in Ohio, allowing free flow of wells. - Accelerated Pennsylvania natural gas project, with wells turned into sales in July. - Third quarter operating plan includes rig developing gas wells in Pennsylvania and transitioning to Ohio oil wells.

During the second quarter, production grew 25% to average 33.1 MBoe per day. Adjusted EBITDA was $49.6 million. Adjusted EBITDA margins fell to $16.48 per barrel of oil equivalent. Operating costs per unit declined to $7.93 per BOE, largely due to increased natural gas development. Capital expenditures for the quarter were $70.4 million in drilling and completion, plus $2.7 million for midstream. Revenue contribution: Marcellus natural gas-weighted wells had higher production volumes than Utica oil wells on a BOE basis.

• Net production anticipated to be between 32 and 35 MBoe per day for 2025. - Drilling and completion CapEx targeted between $240 million and $280 million. - Midstream capital spend estimated between $9 million and $12 million. - Strong balance sheet with $28 million net debt and $322 million liquidity.

• Minor third-party midstream delays during Q2 restricted production of oil-weighted wells. - Commodity price volatility and potential M&A landscape uncertainties.

Q: Thoughts on 2026 activity program?

A: Can't give 2026 CapEx guidance yet, but will continue to focus on development and maintain strong free cash flow.

Q: Latest thoughts on in-basin demand and egress in Ohio?

A: Power plant acquisitions and data warehouses supplant pipeline needs, improving pricing potential in Ohio, WV, PA.

Q: Color on small ground game acquisitions and M&A landscape?

A: Added key acreage in oil and gas windows, focused on ground game and asset M&A opportunities.

Q: LOE costs?

A: Anticipate LOE costs to drive lower, with true-up adjustments from prior periods resolved.

Q: Impact of project pulling forward on CapEx?

A: Pulling forward gas pad doesn't change overall CapEx need as gas and oil well D&C costs are similar.

Q: Third-party midstream constraints in Utica?

A: Remediated by rerouting pipe, wells now flowing unconstrained, next projects have pre-placed pipe.

Q: D&C costs between Marcellus gas and Ohio/Utica?

A: D&C costs similar, differing based on lateral length and working interest, not state.

Q: Production mix complexity and guidance?

A: Anticipate growth in Q3 and Q4, but not providing specific production mix breakdown in guidance yet.

Q: Curtailed wells performance and gas completions?

A: Happy with recent gas development, demonstrating repeatable gas results.