Infinity Natural Resources Announces First Quarter 2025 Results and Maintains 2025 Guidance
MORGANTOWN, W.V.--(BUSINESS WIRE)--May 12, 2025--
Infinity Natural Resources, Inc. ("Infinity" or the "Company") (NYSE: INR) today reported its first quarter 2025 financial and operating results.
First Quarter 2025 & Recent Highlights
-- Placed into sales six wells on budget and ahead of schedule during the
quarter totaling approximately 83,000 lateral feet comprised of (a) one
oil well in the Utica Shale in Ohio in early January and (b) five natural
gas wells in late March in the Marcellus Shale in Pennsylvania
-- Accelerated a natural gas weighted project by contracting a second
drilling rig to drill four natural gas weighted wells in the Marcellus
Shale in Pennsylvania expected to be turned into sales this summer
-- Delivered total net daily production of 26.5 MBoe/d, approximately 31%
oil and 55% liquids
-- Reported net loss of $128.4 million, which includes a one-time non-cash
share-based compensation expense of $126.1 million related to the IPO
-- Delivered Adjusted EBITDAX(1) of $57.2 million, representing an Adjusted
EBITDAX Margin(1) of $23.96 / Boe, which is an increase of $1.73 / Boe
from the first quarter of 2024
-- Generated $74.2 million of net cash provided by operating activities
-- Drilling and completion ("D&C") capital expenditures incurred of $78.2
million and midstream capital expenditures incurred of $3.5 million
-- Total net debt was reduced by approximately $250.7 million to
approximately $6.6 million as of March 31, 2025
-- Total liquidity was $343.6 million as of March 31, 2025
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(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
"We delivered strong operational performance in the first quarter, with production of approximately 26.5 MBoe/d, representing 13% sequential growth over fourth quarter 2024, driven by consistent well performance across our asset base," said Zack Arnold, President & CEO of Infinity. "Despite unseasonably cold weather in the Northeast that impacted operating costs for well maintenance and additional equipment needs, our team's operational excellence allowed us to maintain strong production levels and bring wells online ahead of schedule. I'm proud of our team's execution through these challenging conditions."
"Our flexible operating model and balanced portfolio across the Marcellus and Utica Shales enable us to pivot between oil and natural gas development based on market conditions. This adaptability, combined with our clean balance sheet, positions us to fund development through cash flow while pursuing strategic opportunities that create long-term value for our stakeholders."
"Looking ahead to the second quarter, we're executing as planned and remain on track with the development program embedded in our full year 2025 outlook. The macro landscape has recently shifted and market sentiment remains cautious about the outlook for oil prices in the back half of this year. However, the market remains more constructive regarding natural gas prices. In response to the current environment, we have elected to bring forward our next natural gas project. We will be constructing this pad during the second quarter and expect to begin drilling these wells this summer. Concurrently, we are reviewing our oil-weighted development plans in the second half of the year and will be flexible with our operations depending on estimated project returns as we progress through our one rig schedule," concluded Mr. Arnold.
Operational Update
Infinity's net daily production for the first quarter of 2025 averaged 26.5 MBoe/d, consisting of 22.7 MBoe/d in Ohio and 3.9 MBoe/d in Pennsylvania. Infinity's net daily production mix was comprised of approximately 31% oil, 23% NGLs and 45% natural gas. We turned into sales 6.0 gross (5.2 net) wells during the first quarter, including 5 gross wells in the Marcellus Shale in Pennsylvania and 1 gross well in the Utica Shale in Ohio, representing approximately 83,000 lateral feet.
The following table sets forth information regarding our production, revenues and realized prices and production costs for the first quarter of 2025 and 2024:
Three Months Ended
March 31,
----------------------
2025 2024
------------ --------
Production data:
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Oil (MBbls) 742 397
Natural gas (MMcf) 6,519 6,892
NGL (MBbls) 561 380
-------- -------
Total (MBoe)(1) 2,389 1,925
-------- -------
Average daily production (MBoe/d)(1) 26,546 21,157
Average wellhead realized prices (before giving
effect to realized derivatives):
--------------------------------------------------
Oil (/Bbl) $ 63.40 $ 68.42
Natural gas (/Mcf) $ 3.51 $ 1.93
NGL (/Bbl) $ 25.49 $ 24.70
Average wellhead realized prices (after giving
effect to realized derivatives):
--------------------------------------------------
Oil (/Bbl) $ 64.70 $ 69.31
Natural gas (/Mcf) $ 3.30 $ 2.54
NGL (/Bbl) $ 25.27 $ 26.79
Operating costs and expenses:
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Gathering, processing and transportation $ 12,070 $ 10,456
Lease operating 7,434 7,288
Production and ad valorem taxes 632 359
Depreciation, depletion, and amortization 21,258 15,555
General and administrative (excluding
share-based compensation) 4,856 2,128
-------- -------
Total $ 46,250 $ 35,786
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(1) Calculated by converting natural gas to oil equivalent barrels at a ratio
of six Mcf of natural gas to one Boe.
Capital Investment
Capital expenditures incurred during the quarter were $88.3 million, which included $78.2 million on D&C activities, $3.5 million on midstream and $6.6 million on land activities.
Financial Position and Liquidity
As of March 31, 2025, Infinity had approximately $4.9 million of cash and cash equivalents and $11.3 million of borrowings under its revolving credit facility. On March 31, 2025, Infinity increased the borrowing base under its credit facility from $325 million to $350 million as part of its periodic redetermination. Infinity's liquidity as of March 31, 2025 totaled approximately $343.6 million comprised of $4.9 million of cash and cash equivalents and approximately $338.7 million of available borrowing capacity under its revolving credit facility.
2025 Outlook
Infinity is maintaining its 2025 capital & production guidance from its fourth quarter earnings press release. Consistent with its corporate hedging strategy, the Company has supported its development program by significantly hedging its anticipated near-term drilling program, securing attractive discounted returns on investment for those projects. The Company expects to maintain optionality with its operations and deploy capital based on estimated project returns.
Conference Call and Webcast Details
Infinity will host a conference call Tuesday, May 13, 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 (U.S.), or +1 (646) 307-1963 (International), and referencing "Infinity." A replay of the call will be available for 14 days following the call at the Company's website or by phone at (800) 770-2030 (U.S.) or +44 20 3433 3849 (International) using the conference ID: 7133167#.
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 Ohio as well as our stacked dry gas assets in both the Marcellus and Utica Shales in southwestern Pennsylvania.
Cautionary Statement Regarding Forward-Looking Statements
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