Infinity Natural Resources, Inc. Class A

Hello, everyone. Thank you for joining us and welcome to Infinity Natural Resources first quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. 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 Zach Arnold, our President and Chief Executive Officer, and David Sproul, 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 release and investor presentation for important disclosures regarding such measures, including definitions and reconciliations for the most comparable GAAP financial measures. With that, I will turn the call over to Zach.

Thank you, Tom, and good morning. We appreciate everyone joining us today to review Infinity Natural Resources first quarter results. The first quarter was pivotal for Infinity. We successfully closed the Antero Ohio Utica acquisition in late February, our largest transaction to date, and added working interest in our Pennsylvania assets through the Chase acquisition. These acquisitions immediately increased our scale, with our operated well count increasing from 154 to 395 and our midstream system expanding to over 250 miles of gathering and water pipelines, positioning Infinity for disciplined growth through the end of the decade. Importantly, we did so while preserving the quality of our balance sheet through strategic financing, including the issuance of perpetual preferred securities and senior notes. Since closing these transactions, our teams have been focused on integrating the assets into our operational platform. This includes onboarding personnel, evaluating the new inventory, and identifying opportunities to optimize operations across the acreage and associated infrastructure. The more time we spend with the Ontario assets, the more excited we become about the opportunity, especially the midstream infrastructure, which we will discuss in more detail in a few minutes. Before that, let me review production and operating highlights from the first quarter. Net production averaged 299 million cubic feet equivalent of gas per day, a year-over-year growth rate of 88%. We turned to sales four wells in the volatile oil window with 53,000 lateral feet, two in early February and two in mid-March. On the operating front, we added a second frac crew and a second rig during the quarter, and we stimulated 11 wells and drilled 10 wells to TD, which is a company record. One of the frackers was deployed to the assets we acquired from Antero approximately 30 days after closing near the end of 1Q, and we expect to turn these first three wells from the acquisition to sales during the second quarter. We've had one rig on legacy Infinity volatile oil window assets and one rig on legacy Infinity natural gas assets since January. and we intend to move a rig onto the newly acquired Antero assets later this quarter. As we have previously discussed, our plan for the balance of 2026 is to run one dedicated rig on legacy Infinity assets, drilling both volatile oil and dry gas wells, and one rig on the newly acquired assets. As of today, we have accelerated completion activity in our volatile oil window to capture stronger near-term returns, which includes pooling four oil-weighted wells into the second quarter from later in the year with mostly unhedged barrels. That said, we retain the flexibility, as always, to quickly pivot between commodities and will lean harder into the natural gas market if conditions warrant the shift. We continue to focus on longer laterals. During the first quarter, the average lateral length turned in line was over 13,000 lateral feet. We benefit from efficient cycle times with multi-well projects continuing to reach first production within six to seven months, supporting faster capital recycling and improved returns. As an example, we started drilling on four well 55,000-lateral-foot oil-weighted pad in November, and we expect to turn in those wells in the coming days. Coming back to our newly acquired midstream infrastructure, In our minds, the scale and versatility of this unique system is vastly underappreciated with 140 miles of gathering lines, 90 miles of water lines, six compressor stations, 43 compressors, and nearly 80,000 horsepower. This is a turnkey system with no lead time or bottlenecks that would likely take years to replicate. We have retained nearly all the field employees associated with these assets and hired additional senior leadership permission including a VP of midstream. The continuity and deep expertise of our midstream bench is truly invaluable. We are excited by the value that we can unlock from this system. To put it bluntly, we believe it is poised to become a meaningful contributor to future results as we are one of the limited number of operators in the Appalachian Basin with owned midstream infrastructure. Currently, the system is underutilized, operating at less than a quarter of its currently available capacity providing significant runway to support not only our own development but also third-party volumes we received third-party volumes on the system for the first time during the first quarter and we will be focused on increasing third-party volumes on the system as we move through the year we expect to drive a meaningful ramp in throughput that will contribute to our financial results this infrastructure also provides a significant structural cost advantage as we leverage existing pads and pipeline connections, significantly reducing or eliminating the need for incremental midstream capital on new development. As of today, approximately 75% of Infinity's natural gas volumes are flowing through our owned midstream system, and we expect that to increase as we ramp development. This system creates a strategic advantage for us that we expect to drive improved margins and lower break-evens over time. We'll share more over time as we continue to operate the assets. I will now spend a few minutes on the macro. We remain constructive on the longer-term outlook for both liquids and natural gas. Oil and liquids markets in Appalachia remain strong with a combination of domestic and international demand from refining and chemicals driving a favorable pricing environment. Beginning in April, we have increased our taken kind NGL volumes which provides us greater control and optimization of the realized pricing specific to propane, butane, and pentane. For natural gas, we see a clear cadence of demand growth, with near-term strength driven by LNG exports, continued momentum from gas-fired power generation in basin data centers, and longer-term expansion tied to industrial development. As these demand drivers scale, we expect regional gas differentials to tighten alongside broader market growth. Given our outlook for oil and liquids, we've leveraged the flexibility of our platform to adjust our completion schedule and accelerate facilities construction to pull forward oil-weighted wells into 2Q to capture stronger price realizations. We will continue to evaluate our development plans across the portfolio with a focus on directing capital toward the highest return projects. Against this backdrop, here's where our plan stands for the second quarter. As I touched on earlier, we expect to turn in line a four-well pad in the volatile oil window in the coming days, representing 55,000 lateral feet. We also expect to bring to market our first barrels from the Antero acquisition later this quarter, a three-well pad in our rich gas area with 53,000 lateral feet. That's a total of seven wells turned in line and 109,000 lateral feet during the second quarter. With that, I will turn the call over to David to review our financial results and outlook.