Infinity Natural Resources Nearly Doubles Production on Antero Acquisition
The Appalachian Basin natural gas producer posted 299.3 MMcfe/d of net daily output in the first quarter, up 88% year over year.
Infinity Natural Resources (INR) reported first-quarter 2026 total net daily production of 299.3 MMcfe/d, an 88% increase from a year earlier, as the Appalachian Basin producer absorbed volumes from its Antero Acquisition and expanded its gas-weighted output. The result marked the company's third consecutive quarter of accelerating production growth, building on 93% year-over-year growth in the fourth quarter of 2025 and 46% growth for the full year.
Natural gas drove the expansion. Net gas production grew 169% year over year in the quarter, quickening from 129% growth in the prior quarter. Oil production rose 16% year over year to 864,000 barrels but slipped sequentially from 1.05 million barrels in the fourth quarter, reflecting a shift in the company's drilling mix toward gas-weighted acreage. The company completed and placed four oil-weighted wells in the volatile oil window of the Ohio Utica Shale into sales during the quarter, totaling roughly 53,000 lateral feet, compared with six wells and approximately 103,000 lateral feet in the fourth quarter.
Total revenues reached $154.9 million, up 82% year over year and 32% sequentially. Realized commodity prices improved across the board: the wellhead natural gas price before derivatives rose to $4.23 per Mcf from $3.14 per Mcf in the fourth quarter, while the realized oil price climbed to $65.77 per barrel from $51.22 per barrel. Adjusted EBITDAX grew 70% year over year to $97.3 million, though the pace decelerated from 104% growth in the fourth quarter, when the metric reached $94.0 million. The adjusted EBITDAX margin narrowed to $3.61 per Mcfe from $3.76 per Mcfe sequentially, though the company maintained it was the best among Appalachian Basin peers.
Cost discipline partially offset margin pressure. Total controllable cash costs fell 18% to $1.43 per Mcfe from $1.74 a year earlier, with gathering, processing and transportation expenses declining to $0.73 per Mcfe and lease operating expense dropping to $0.33 per Mcfe. Recurring cash general and administrative costs per Mcfe fell to $0.22 from $0.34, which the company attributed to improved cost discipline following the Antero Acquisition.
The bottom line remained in the red. Infinity posted a net loss of $6.3 million, or $0.28 a share, roughly flat with the per-share loss a year earlier but a sharp reversal from net income of $80.4 million, or $1.32 a share, in the fourth quarter. Capital expenditures totaled $122.6 million in the quarter, including $111.5 million for development and $11.1 million for land, compared with $52.9 million in development spending in the fourth quarter.
The balance sheet expanded alongside the drilling program. Net debt rose to approximately $477.0 million as of March 31 from $148.0 million at year-end, driven by a $550 million senior notes issuance used to fund the Antero Acquisition. Total liquidity, however, widened to $928.8 million from $226.9 million following the upsized notes offering and credit facility activity. Approximately 75% of natural gas volumes were flowing through the company's owned midstream system at quarter-end, a new disclosure reflecting post-acquisition integration.
Infinity reaffirmed its full-year 2026 guidance, targeting a capital budget of $450 million to $500 million and net production of 345 to 375 MMcfe/d, representing roughly 70% year-over-year growth at the midpoint. The company's share repurchase program had $73.8 million remaining as of March 31, unchanged from year-end, indicating no buyback activity during the quarter. On July 13, Infinity appointed Timothy Dugan, a former chief executive of Olympus Energy and chief operating officer of CNX Resources, to its board of directors.