Infinity Natural Resources, Inc. Class A

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Infinity Natural Resources fourth quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Tom Marchetti, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, and thank you for joining Infinity Natural Resources' fourth quarter and four-year 2025 earnings conference call. On the stage today are Zach Arnold, our President and Chief Executive Officer, and Dave Stuhl, our Executive Vice President and Chief Financial Officer. In a moment, Zach and David will present their prepared remarks for the 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 everybody that today's call may contain certain forward-looking statements that are subject to risks and uncertainties that could cause actual results that 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 that differ materially from those forward-looking statements. Please review our earnings release and the risk factors discussed under SEC filings. We will also be referring to certain non-GAAP financial measures. Please refer to our earnings release and investor presentation for important disclosures regarding such measures, including definitions and reconciliations of the most comparable GAAP financial measures.

With that, I will turn the call over to Zach. Thank you, Tom, and good morning, everyone. Before I begin, I'd like to formally welcome Tom Marchetti to our team. Tom will lead our investor relations function and is a great addition to the team. We appreciate everyone joining us today to review Infinity Natural Resources' fourth quarter and full year 2025 results and to discuss our outlook for 2026. Overall, 2025 was another transformational year for Infinity. Importantly, we did what we said we'd do during the IPO process. We continued to add scale. We've significantly increased production. We've grown our operating cash flow. We've expanded our asset base through acquisitions. We've accessed the capital markets, we've entered into strategic partnerships, and we've preserved our operational and financial flexibility. We've been busy. Most importantly, our Appalachian platform continues to deliver strong operational and financial execution across both our extensive Utica position in Ohio and Marcellus position in Pennsylvania. Our results during the fourth quarter and year overall are underpinned by our strong wealth performance across our asset base, as well as the disciplined execution of our development program. Our teams remain focused on improving drilling and completion efficiencies, extending lateral lengths, and maintaining capital discipline as we developed our high-quality asset base. Before reviewing our operational activity for the quarter, it is worth highlighting the strength and flexibility of our development portfolio across Appalachia. We have over 390 locations across our portfolio, representing more than 10 years of inventory when developed on a two-grid program. Our returns in oil and liquids weighted projects are strong, especially true in today's oil environment, and our gas returns are strong as well. Balance. Optionality. It is how we build our business in order to maximize value for our shareholders. Well costs are consistent across our position, whether in our Ohio Utica development or our dry gas Marcellus wells. which allows us to allocate capital efficiently across our development opportunities depending on commodity conditions. In addition, much of our drilling and completion design is standardized across our development program, utilizing common equipment and consumables packages that allow us to efficiently shift activity between Ohio and Pennsylvania. Combined with our extensive drilling inventory across these development areas, This portfolio provides significant operational, commodity, and financial flexibility as we allocate capital across our assets. As a result, our development program can be adjusted to prioritize the highest return opportunities while maintaining disciplined growth. During the fourth quarter, we continued to operate one drilling rig across our base asset. We added a second rig in January, bringing our total operated rig count to two, advancing development across our diversified portfolios. During the fourth quarter, net production averaged 45.3 in BOE per day, bringing full-year production to 35.3 in BOE per day, exceeding the high end of our guidance range for fiscal year 2025. When compared to 2024, the company was able to deliver year-over-year growth of approximately 46%. During the fourth quarter, we flooded nine wells, totaling approximately 142,000 lateral feet while finishing completions activities and turning into sales six wells totaling 103,000 lateral feet, evenly split between Ohio oil weighted projects and Pennsylvania dry gas projects. For the full year, we turned 23 wells into sales, including 12 wells in Pennsylvania and 11 wells in Ohio, reflecting our balanced development approach across our asset base. Our development program continues to emphasize extended lateral development and operational efficiencies that support strong capital returns across both our Utica and Marcellus positions. For calendar year 2025, our average well turned into sales exceeded 15,700 lateral feet. The longer laterals help to reduce our per foot drilling costs. It's not just about drilling longer laterals. It's also about cycle times. keeping those wells online, and having them track our anticipated well performance. We continue to target six to seven-month cycle times on our development projects, ranging from three to five wells, which we believe is one of the fastest cycle times in the industry. With regards to well performance, we placed a lot of wells online in the second half of 2025, and we are pleased with the performance of those wells to date, and they continue to track in line with our tight curve expectations across both development areas. Looking forward, we intend to operate two rigs throughout calendar year 2026. While the world is ever-changing these days, especially with commodities, we anticipate allocating slightly more capital towards natural gas-weighted development based on wells turned into sales during the year. Approximately 30% of our projected wells turned into sales will be on the assets we recently acquired developing our rich gas locations in the Utica Shale of eastern Ohio. Turning to our recent acquisitions, on February 23rd, we closed the previously announced $1.2 billion acquisition of Ohio Utica assets from Intero Resources and Intero Midstream. This transaction is a highly complimentary bolt-on to our existing position in Ohio, adding extensive inventory across multiple phase windows directly adjacent to our legacy acreage, further supporting our long lateral development strategy. Just as importantly, The transactions included ownership in the associated midstream system, which provides us with attractive midstream costs and further reduces well break evens across the acquired assets. We intend to devote a rig to the development of these assets during the year, beginning early in the second quarter, and we expect our first pad from the acquired position to come online during the second quarter. As we begin developing this inventory, We expect to increase production from these assets meaningfully in the coming months and years. Not to be forgotten with all of our activities, we also completed the Chase acquisition, which increased our working interest in our dry gas South Bend field in Pennsylvania. Transactions like this, where we can increase working interest in assets we already operate, are typically among the most attractive investments that we can make using our equity, as they increase our exposure to future development and production without requiring incremental corporate overhead for G&A. This acquisition represents another milestone for Infinity, as it is the first time post-IPO that we have used our equity to acquire assets. Together, these transactions expand our development inventory, increase our participation in high-quality drilling projects, and strengthen the strategic position of our Appalachian platform through enhanced infrastructure and marketing assets. In conjunction with the Antero transaction, Infinity successfully issued $350 million of perpetual convertible preferred stock to two highly respected energy investors, Quantum Capital Group and Carnelian Energy Capital. We believe the strong demand from these investors reflects confidence in both in the quality of the underlying assets and our long-term development strategy. This hybrid equity structure is consistent with our philosophy of maintaining a strong and flexible balance sheet. we were able to raise significant equity capital above our IPO price while reducing outstanding debt and preserving financial and strategic optionality for the company. Importantly, this capital supported our election to increase our participation in the Ohio Utica acquisition to a 60% working interest, deepening our ownership in an asset we know well and believe strongly in, while maintaining balance sheet discipline as we continue to advance development across our Appalachian platform. Looking more broadly at the market environment, we continue to see strong structural demand for natural gas and associated liquids across North America. Recent geopolitical developments in the Middle East have strengthened crude prices across the forward curve through 2030, representing another opportunity for us to demonstrate the value and flexibility of our unique asset base. With our development activities in the fourth quarter, we have significant oil-weighted volumes planned for the first half of 2025. We have taken this opportunity in the commodity markets to lock in attractive oil hedges for 2026 and 2027 using a balance of swaps and collars. Additionally, we are evaluating our development plan as to whether we should accelerate any additional oil projects to take advantage of attractive prices. We cannot predict whether this will be a short-term event, but we will continue to monitor the situation to see if elevated oil prices proved to be longer lasting and warrant additional development of our oil inventory. On a more micro level, and for our Ohio Utica liquids production specifically, we are witnessing increased regional demand dynamics. Codensate and other light hydrocarbons produced from liquids rich plays, such as the Utica, are used both as refinery feedstock and as diluent for heavier crude oils. As production of heavier barrels from regions such as Canada and Venezuela increases, Producers require additional volumes of condensate and other light hydrocarbons to blend those barrels to move them through pipeline systems and into refineries. Given our proximity to regional refining markets and infrastructure, we believe our Ohio Utica liquids production is well positioned to serve this demand. Turning to natural gas, global demand for US LNG continues to expand, and with additional liquefaction capacity expected to come online over the next several years, U.S. natural gas supply is increasingly positioned to serve global energy markets. Domestically, rising electricity demand is expected to drive additional natural gas consumption within the U.S. power sector. Looking ahead, we remain focused on executing a disciplined development program that balances growth with capital efficiency. Our diversified asset base across our Appalachian platform provides flexibility to allocate capital toward the highest return opportunities depending on market conditions. With that, I will turn the call over to David to review our financial results and outlook. Thank you, Zach, and good morning.