Infinity Natural Resources plans capex ramp, greater gas emphasis

Leaders of Infinity Natural Resources Inc., Morgantown, W.Va., plan to ramp up capital spending this year across their Appalachian holdings and tilt their development work more toward natural gas.

Infinity, which went public earlier this year, spent $166 million last year on drilling and completion work in the Appalachian basin—where it produces oil from the Ohio Utica basin and gas from holdings in the Utica and Marcellus regions—as well as $5.5 million on its midstream assets and $108 million on land. This year, president and chief executive officer Zack Arnold told analysts on a conference call that his team will have “limited need” to add to its land holdings.

But Infinity’s leaders are forecasting that their drilling and completions spending will grow this year to $240-280 million as the operator looks to capitalize on improving gas market fundamentals. Spending on midstream assets is expected to grow to $9-12 million.

Infinity’s portfolio comprises about 60,000 acres in Pennsylvania that at end-2024 sported 179 undeveloped locations as well as roughly 63,000 net acres in the Utica’s volatile oil window, where it had 154 undeveloped locations. The operator's 2024 production averaged 24,100 boe/d (27% oil, 53% gas, 20% natural gas liquids), which was an increase of 28% from the year before thanks in large part to the addition of 12 net wells in the Utica.

Arnold and his team are planning to grow production to 32,000-35,000 boe/d this year. The company expects to run one rig for the year with a second rig added to initially develop a four-well pad in the Marcellus.

“Our 2025 plan highlights a transition towards a greater balance between natural gas and oil-weighted wells,” Arnold said on the call after noting the oil wells turned in line last year as well as the deferral of completion work on gas wells.

Chief financial officer David Sproule said on the call that oil’s share of production this year will fall by “somewhere in the neighborhood of less than 5%” from its 2024 level of 27%.

During fourth-quarter 2024, Infinity posted a net loss of $5.5 million on revenues of $69.1 million. Contributing to that red bottom line was a loss of derivatives of more than $28 million; operating profits rose to $28.3 million versus $25.1 million in late 2023.

Shares of Infinity (Ticker: INR) were down more than 3% to $17.45 in midday trading Mar. 28. They’re now down about 12% from their $20 IPO price.