Inbound Financial Resources Corporation's (INR) Q2 2025 Earnings Discussion Transcript

Inbound Financial Resources Corporation's (INR) Q2 2025 Earnings Discussion Transcript

Infinity Natural Resources Anticipates Growth in Q3 and Q4

Infinity Natural Resources, a leading energy company, has announced its plans for the third and fourth quarters of 2025. The company is set to transition one of its rigs to Ohio to drill two more oil wells in Q3, as part of its ongoing operations in the Appalachian Basin.

During Q2, the company completed 8 wells, finishing 777 stages, averaging approximately 16,900 feet per well. Of these, 5 were natural gas wells in Pennsylvania and 3 were oil wells in Ohio. The company drilled an additional 3 wells from another pad location in Ohio, representing another 57,000 lateral feet, and is currently stimulating this project, anticipating turning these wells online subsequent to the end of the third quarter.

The midstream problem in Utica during the quarter was due to a farmer not wanting a pipe going through his field, but this issue has now been resolved, and the pipe has been rerouted.

The company's operational team is efficient in managing logistics, and they have experience in moving the rig from one state to another. This flexibility allows the company to balance its capital allocation across natural gas and oil opportunities.

In May, the company turned into sales one oil-weighted well from its Rubel Dodd pad in Ohio. The company has already turned in line 5 natural gas wells, and they have 3 additional wells that they are targeting to be in line before the end of the year.

The company's gas wells cost almost the same as oil wells, so moving projects back and forth does not significantly change the capital need. This flexibility, combined with Infinity's strong balance sheet with minimal net debt and substantial liquidity, provides the financial foundation to remain opportunistic and continue optimizing its development sequence based on market dynamics.

In Q2, the company delivered production growth of 25%, averaging 33.1 MBoe per day compared to Q1's 26.5. The increase in overall production was primarily due to a full quarter impact from 5 natural gas Marcellus Shale wells in Pennsylvania that were turned into sales only days prior to the end of the first quarter.

Looking ahead to Q3 and Q4, Infinity plans to maintain a natural gas-weighted production profile, driven by drilling activities in Pennsylvania and Ohio. The company anticipates growth in the third and fourth quarters compared to Q3, with 3 additional oil wells expected to come online in Q4.

Infinity Natural Resources, Inc. (NYSE: INR) held a Q2 2025 Earnings Conference Call on August 12, 2025. The call was attended by key industry analysts, including Kaleinoheaokealaula Scott Akamine from BofA Securities, Michael Stephen Scialla from Stephens Inc., Paul Michael Diamond from Citigroup Inc., Scott Michael Hanold from RBC Capital Markets, and Timothy A. Rezvan from KeyBanc Capital Markets Inc.

Zack Arnold, President, CEO & Director of Infinity Natural Resources, anticipates Q3 CapEx to be similar to the last couple of quarters, with a decrease in Q4 as the effects of the two rigs and frac crews fully work through the system.

With its focus on balancing capital allocation across natural gas and oil opportunities, Infinity Natural Resources is poised for continued growth in the Appalachian Basin. The company's strong operational performance and financial position make it a key player in the energy industry.

1. Infinity Natural Resources, with a strong financial foundation and operational flexibility, is prepared to invest in the transition of one of its rigs to Ohio, aiming to drill two more energy wells in the third quarter.
2. As part of its strategic business plan, Infinity Natural Resources will maintain a natural gas-weighted production profile in the Appalachian Basin, expecting growth in the third and fourth quarters due to the addition of more oil wells.
3. The energy industry analysts, including Kaleinoheaokealaula Scott Akamine from BofA Securities, have recognized Infinity Natural Resources' potential for continued growth, owing to its efficient management of resources and strategic financial planning.

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