Infinity Natural Resources Announces Second Quarter 2025 Results and Maintains 2025 Guidance (Form 8-K)

Infinity Natural Resources Announces Second Quarter 2025 Results and Maintains 2025 Guidance

August 11, 2025

Morgantown, West Virginia-Infinity Natural Resources, Inc. ("Infinity" or the "Company") (NYSE: INR) today reported its second quarter 2025 financial and operating results.

Second Quarter 2025 & Recent Highlights

•Constructed an additional natural gas-weighted pad in Pennsylvania and commenced drilling activities in July

•Drilled seven wells totaling approximately 118,000 lateral feet and completed eight wells and 777 stages

•Placed one oil-weighted well into sales in the Ohio Utica Shale

•Placed six additional wells into sales in July totaling approximately 86,000 lateral feet comprised of (a) two oil-weighted wells in the Ohio Utica Shale and (b) four natural gas-weighted wells in the Marcellus Shale in Pennsylvania

•Delivered total net daily production of 33.1 MBoe/d, approximately 19% oil and 37% liquids

•Reported net income of $72.0 million

•Delivered Adjusted EBITDAX(1) of $49.6 million, representing an Adjusted EBITDAX Margin(1) of $16.48 / Boe

•Generated $144.6 million of net cash provided by operating activities for the six months ended June 30, 2025

•Drilling and completion ("D&C") capital expenditures incurred of $70.4 million

•Midstream capital expenditures incurred of $2.7 million

•Total net debt was approximately $28.1 million as of June 30, 2025

•Total liquidity was $321.9 million as of June 30, 2025

(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

"Our second quarter results yet again demonstrated strong operational performance while highlighting the strategic advantages of our diversified Appalachian platform. Our net production for the quarter averaged 33.1 Mboe/d, representing a 25% increase from the first quarter of this year," said Zack Arnold, President & CEO of Infinity. "Our production growth was primarily driven by our Marcellus natural gas development in Pennsylvania. We brought five natural gas wells online at the end of March ahead of schedule and on budget. In addition, we brought online one oil-weighted well from our Rubel Dodd pad in Guernsey County, Ohio in May. Our team continues to execute our 2025 plan. Our disciplined approach to capital allocation and operational excellence has positioned us well for continued growth in 2025 and beyond."

"What distinguishes Infinity Natural Resources is our proven operational flexibility across our oil and natural gas assets within Appalachia. The second quarter exemplified this advantage, as we elected to accelerate our next natural gas project while maintaining steady progress on our high-quality Ohio oil development in the Utica Shale's volatile oil window. Our unique asset composition provides us with the agility to adjust development timing and weighting as market conditions evolve - a key competitive advantage that we successfully displayed yet again this quarter."

"Looking beyond the second quarter, our overall 2025 development plan remains on track from what we originally outlined earlier this year. We successfully brought online a natural gas project in July, and recently commenced drilling on another natural gas project that we elected to pull forward. With our clean balance sheet featuring minimal net debt and substantial liquidity, we remain well-positioned to pursue accretive growth opportunities as market conditions evolve," concluded Mr. Arnold.

Operational Update

Infinity's net daily production for the second quarter of 2025 averaged 33.1 MBoe/d, consisting of 19.5 MBoe/d in Ohio and 13.6 MBoe/d in Pennsylvania. Infinity's net daily production mix was comprised of approximately 19% oil, 18% NGLs and 63% natural gas. We turned into sales one gross oil-weighted well (0.9 net) during the second quarter in May in the Utica Shale in Ohio. Subsequent to quarter-end, we turned into sales two additional gross oil-weighted wells (1.9 net) in the Utica Shale and four gross natural gas-weighted wells (3.3 net) in the Marcellus Shale in Pennsylvania in July.

The following table sets forth information regarding our production, revenues and realized prices and production costs for the three and six months ended June 30, 2025 and 2024:

			Three Months Ended June 30,												Six Months Ended June 30,
			2025						2024						2025						2024
Production data:
Oil (MBbls)			559						677						1,301						1,074
Natural gas (MMcf)			11,420						7,407						17,939						14,299
NGL (MBbls)			551						448						1,111						828
Total (MBoe)(1)			3,013						2,360						5,402						4,285
Average daily production (MBoe/d)(1)			33,114						25,934						29,844						23,545
Average wellhead realized prices (before giving effect to realized derivatives):
Oil (/Bbl)			$	56.45					$	71.91					$	60.42					$	70.62
Natural gas (/Mcf)			$	2.67					$	1.46					$	2.97					$	1.69
NGL (/Bbl)			$	18.93					$	23.58					$	22.25					$	24.08
Average wellhead realized prices (after giving effect to realized derivatives):
Oil (/Bbl)			$	65.00					$	66.53					$	64.83					$	67.56
Natural gas (/Mcf)			$	2.53					$	1.83					$	2.80					$	2.18
NGL (/Bbl)			$	18.22					$	27.33					$	21.96					$	36.64
Operating costs and expenses (per Boe)(1):
Gathering, processing and transportation			$	4.82					$	5.12					$	4.92					$	5.26
Lease operating			2.09						2.80						2.54						3.24
Production and ad valorem taxes			1.02						0.22						0.69						0.21
Depreciation, depletion, and amortization			7.85						8.36						8.31						8.23
General and administrative(2)			1.75						1.46						25.36						1.30
Total			$	17.52					$	17.95					$	41.83					$	18.24

(1) Calculated by converting natural gas to oil equivalent barrels at a ratio of six Mcf of natural gas to one Boe.

(2) General and administrative expense includes (a) a one-time share-based compensation expense of $126.1 million for the six months ended June 30, 2025 incurred in connection with the Company's initial public offering ("IPO") and (b) $2.3 million and $3.1 million in non-cash stock compensation for the three and six months ended June 30, 2025, respectively.

Capital Investment

Capital expenditures incurred during the quarter were $80.6 million, which included $70.4 million on D&C activities, $2.7 million on midstream and $7.5 million on land activities.

Financial Position and Liquidity

As of June 30, 2025, Infinity had approximately $6.3 million of cash and cash equivalents and $34.4 million of borrowings under its revolving credit facility. Infinity's liquidity as of June 30, 2025 totaled approximately $321.9 million comprised of $6.3 million of cash and cash equivalents and approximately $315.6 million of available borrowing capacity under its revolving credit facility.

2025 Outlook

Infinity's D&C and midstream capital budgets for 2025 remain unchanged at $240 million to $280 million and $9 million to $12 million, respectively. Net production guidance also remains unchanged and is expected to be between 32 and 35 Mboe/d for 2025.

Conference Call and Webcast Details

Infinity will host a conference call Tuesday, August 12, 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: 5378062#.

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.