Infinity Natural Resources NYSE: INR reported second-quarter production growth of 75% year over year and record adjusted EBITDAX of $115 million, while advancing development of recently acquired Ohio Utica assets and reaffirming its full-year outlook.
Net production averaged 348 million cubic feet equivalent per day (Mcfe/d) during the quarter. Oil production rose 102% from a year earlier to about 12,400 barrels per day, natural gas production increased 73% to approximately 217 MMcf/d, and NGL production climbed 57% to roughly 9,500 barrels per day.
“The second quarter reflected continued execution of our strategy,” President and Chief Executive Officer Zack Arnold said. “We delivered strong production growth and our highest quarterly adjusted EBITDAX in company history at $115 million.”
Leadership Changes Announced
The company said David Sproule will step down as executive vice president and chief financial officer. Arnold described Sproule as one of Infinity’s founders and thanked him for his work with the company.
Effective Aug. 12, Cary Baetz will assume the executive vice president and CFO role, while Andrew Judge will join Infinity as senior vice president of finance. Arnold said Baetz brings experience raising capital, managing significant transactions and building financial infrastructure, while Judge has upstream experience in the basin as well as experience in capital markets, M&A evaluation and investor relations.
During the question-and-answer session, Arnold said the additions position the company for its targeted growth. He said Baetz has decades of public-company experience, and that the company believes the combined capabilities of Baetz, Judge and the board will support its scaled-growth plans.
Ohio Utica Development Advances
Infinity brought 10 Ohio wells online during the quarter, including its first three rich-gas wells from the Antero asset acquisition and seven other volatile-oil wells. The company spudded nine wells: four volatile-oil wells and two rich-gas wells in Ohio, two dry-gas wells in Pennsylvania, and its first deep dry-gas Utica well in Pennsylvania.
The company drilled a vertical pilot and collected subsurface data for its deep Utica well before drilling a 9,500-foot lateral. Arnold said the company is still evaluating the core and log data and will decide whether to complete the Utica well now or later after finishing completions on three Marcellus wells drilled on the same pad.
“The team executed on the drilling and the science phase flawlessly,” Arnold said, adding that core analysis will take time.
Infinity also said it began drilling on a second Ohio Utica pad during the quarter, completed that pad after quarter-end and began drilling on a third pad. Arnold told analysts the first three wells brought online from the acquired assets were meeting or exceeding underwriting expectations. He said the company is using a completion design with about 1,000 additional pounds of sand per foot compared with the prior operator’s approach.
The company expects to turn in line seven wells during the third quarter, including a four-well volatile-oil pad expected in the coming days and a three-well dry-gas-weighted Pennsylvania Marcellus pad that was turned in line in mid-July.
Efficiency and Midstream Utilization
Infinity reported a 15% increase in lateral feet drilled per day compared with its 2025 average while maintaining what it described as 100% in-zone geosteering accuracy. The company also validated a revised completion design in Guernsey County that reduced completion costs by $50 per foot through higher proppant loading, wider stage spacing and fewer frac stages.
Since the end of the first quarter, utilization of the company’s midstream system has increased about 30%, according to Arnold. Roughly 70% of its current gross natural-gas production now flows through its wholly owned, low-cost system.
Infinity has approximately 1 billion cubic feet per day of gathering capacity, including about 400 MMcf/d in Pennsylvania and 600 MMcf/d in Ohio. The system was operating at about 35% total utilization, leaving capacity for future production growth without meaningful additional infrastructure investment, management said.
Arnold said near-term value from the midstream assets will primarily come from supporting Infinity’s own production and lowering unit costs rather than from third-party revenue. He said third-party midstream revenues are expected to remain small in the near future.
The company said it assumed a REX Zone 3 firm-transportation contract in the Antero acquisition, which contributed to higher reported gathering, processing and transportation expense but also supports access to premium gas markets. Arnold said the contract provides sufficient volume and duration to move forecasted Ohio production while the company waits for additional in-basin demand to develop.
Financial Results, Costs and Outlook
Second-quarter revenue was approximately $171 million. Adjusted EBITDAX of $115 million translated to margins of about $3.62 per Mcfe, which Arnold said was roughly twice the Appalachian peer-group average.
- Natural-gas realizations were $2.34 per Mcfe, compared with an average NYMEX gas price of $2.89 per MMBtu during the period.
- Oil realizations were $85.41 per barrel, with oil differentials of approximately $7.10 per barrel.
- NGL realizations rose 70% year over year to $32.27 per barrel.
- Controllable cash operating costs were $1.58 per Mcfe, down about 9% from the second quarter of 2025, excluding firm transportation costs.
- Capital expenditures totaled approximately $137 million, including $129 million for development and $8 million for land activity.
Reported GP&T expense increased because of firm-transportation costs associated with the REX Zone 3 contract and higher volumes. Excluding firm transportation, GP&T was $0.69 per Mcfe in the second quarter, reflecting a sequential decline in operating costs, the company said.
Infinity said it began taking the majority of its propane, butane and pentane products in kind in March and has seen higher propane price realizations than in prior periods.
The company reaffirmed 2026 guidance for net production of 345 Mcfe/d to 375 Mcfe/d, representing projected year-over-year growth of about 70%. It also maintained development capital expenditure guidance of $450 million to $500 million.
For the remainder of 2026, Infinity said it is 81% hedged on natural gas and 78% hedged on total volumes based on the midpoint of its guidance. Arnold said the company uses hedges at the project level to protect expected pad economics rather than attempting to time commodity markets.
Management also said it expects to maintain an inventory runway of roughly 10 to 12 years, depending on drilling pace, through leasing, land work and potential small-to-moderate acquisitions in the basin.
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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