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The call emphasized substantial positive developments: transformative acquisitions that materially increased scale and midstream ownership, very strong production growth (88% YoY in 1Q) with robust commodity-specific gains, best-in-class per-unit economics, improved unit costs (-18% YoY), solid liquidity and targeted 2026 growth guidance. Near-term challenges include weather-driven operating cost impacts, underutilized midstream capacity that will take time to monetize, some unhedged oil exposure from accelerated completions, and ongoing integration/optimization of acquired assets. Overall, the positive operational, financial and strategic progress materially outweighs the addressable near-term risks.
Guidance highlights: Infinity expects 2026 net production of 345–375 MMcfe/d (~70% YOY growth) with gas of 235–255 MMcfe/d and oil + liquids of 18,000–20,000 bbl/d, and production is forecast to increase each quarter (Q1 was 299 MMcfe/d and the low point for the year). Development and midstream capital are expected to total $450–500 million for 2026; Q1 CapEx was $123 million ( $112M development, $11M land). Q1 results included $155M revenue, $97M adjusted EBITDA ($3.61/Mcfe), average gas price $4.86/MMBtu with a $0.69/MMBtu regional differential, oil realizations $65.77/bbl (differentials ~$7–8/bbl expected in Q2), controllable cash operating costs $1.43/Mcfe and LOE ~$0.33/Mcfe. Operationally the company drilled 10 wells to TD and stimulated 11 in Q1, averaged >13,000 ft laterals, reached first production on multi‑well projects in 6–7 months, and plans to turn 7 wells (109,000 lateral feet) in Q2; the midstream system now exceeds 250 miles (140 miles gathering, 90 miles water), ~6 compressor stations and ~80,000 HP, is operating at <25% capacity with ~75% of Infinity’s gas already flowing on it, and management expects throughput and third‑party volumes to ramp. Balance sheet actions included $550M senior notes and $350M preferred issuance, leaving net debt ≈ $477M, total liquidity ≈ $929M and pro‑forma LTM net leverage ~1.3x (expected to decline).
Closed the Antero (Ohio Utica) acquisition in late February and added working interest via the Chase acquisition, increasing operated well count from 154 to 395 and expanding the midstream system to over 250 miles of gathering and water pipelines, immediately increasing scale and development optionality.
Net production averaged 299 MMcfe/d in 1Q26, an 88% year-over-year increase; company expects 2026 average production of 345–375 MMcfe/d (approximately +70% YoY guidance).
Natural gas production averaged 195 MMcfe/d (+169% YoY), oil production ~9,600 bbl/d (+16% YoY), and NGL production ~7,800 bbl/d (+25% YoY); natural gas represented 65% of total production.
Generated approximately $155 million of revenue and $97 million of adjusted EBITDA in 1Q26; reported adjusted EBITDA of ~$3.61 per Mcfe, described as best-in-class in the Appalachian Basin.
Owned midstream: ~140 miles gathering, ~90 miles water lines, 6 compressor stations and ~80,000 HP. Approximately 75% of Infinity's natural gas volumes currently flow through owned midstream, with system operating at <25% of capacity (meaningful runway to increase throughput and drive margins); received first third-party volumes in 1Q26.
Drilled 10 wells to TD (company record) and stimulated 11 wells in 1Q26; added a second frac crew and second rig; average lateral length during the quarter >13,000 feet and multi-well projects reaching first production within 6–7 months.
Controllable cash operating costs were $1.43 per Mcfe in 1Q26, a decline of ~18% year-over-year, reflecting benefits of scale and operating leverage as utilization increases.
Raised $550 million of senior notes and $350 million of preferred equity, paid down revolver, ending the quarter with net debt ~ $477 million, total liquidity ~ $929 million, and pro forma LTM net leverage ~1.3x with expectation to decline toward target levels.
2026 development and midstream capex expected between $450–$500 million; guidance expects gas production of ~235–255 MMcfe/d and oil + liquids of ~18,000–20,000 bbl/d for the year.
Hello, everyone. Thank you for joining us, and welcome to Infinity Natural Resources First Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the call over to Mr. Tom Marchetti, Vice President of Investor Relations. Please go ahead, sir.
Thank you, operator. Good morning, and thank you for joining the Infinity Natural Resources First Quarter 2026 Earnings Conference Call. With me today are Zack Arnold, our President and Chief Executive Officer; and David Sproule, our Executive Vice President and Chief Financial Officer. In a moment, Zach and David will present their prepared remarks with a question-and-answer session to follow. An updated investor presentation has been posted to the Investor Relations section of our website, and we may reference certain slides during today's discussion. A replay of today's call will be available on our website beginning this evening. Before we begin, I would like to remind everyone that today's call may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. All statements that are not historical facts are forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially from those forward-looking statements. Please review our earnings release and risk factors discussed in our SEC filings. We will also be referring to certain non-GAAP financial measures. Please reference our earnings rele...