Infinity Natural Resources, Inc. Class A (INR) AI Stock Analysis

• Market Cap: $685.47M
• Dividend Yield: N/A
• Average Volume (3M): 382.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 80
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.29
• Shares Outstanding: 15,237,500
• 10 Day Avg. Volume: 437,196
• 30 Day Avg. Volume: 382,533
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): <0.00001
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 3.87
• Enterprise Value/Gross Profit: 7.34
• Enterprise Value/Ebitda: 13.97
• 1Y Price Target: $20.86
• Price Target Upside: 82.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: $13.00 ▲(13.84% Upside)

Infinity Natural Resources, Inc. has a strong financial foundation with impressive growth and profitability. However, technical indicators show bearish momentum, and the valuation is impacted by a negative P/E ratio. The positive earnings call sentiment partially offsets these concerns.

Positive Factors

Revenue Growth

The significant increase in revenue indicates strategic expansion and effective market penetration, supporting long-term growth prospects.

Financial Stability

A strong balance sheet with no leverage enhances financial stability, allowing the company to invest in growth opportunities without financial strain.

Production Growth

Consistent production growth reflects operational efficiency and capacity expansion, positioning the company to meet increasing energy demands.

Negative Factors

Cash Conversion

Low cash conversion suggests inefficiencies in turning earnings into cash, which could impact liquidity and operational flexibility over time.

Adjusted EBITDA Margin Decline

The decline in EBITDA margins may affect profitability, as a shift towards lower-margin natural gas could pressure overall earnings.

Midstream Delays

Midstream delays can hinder production efficiency and growth, potentially impacting revenue and operational timelines if not addressed.

Infinity Natural Resources, Inc. Class A Business Overview & Revenue Model

Company Description

Infinity Natural Resources, Inc. engages in the acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids from underground reservoirs in the United States. The company holds interests in the Utica Shale Oil covering an area of approximately 63,000 net surface acres located in Ohio; and the Marcellus Shale Dry Gas covering an area of approximately 31,000 net surface acres and the Utica Deep Dry Gas covering an area of 30,029 net acres situated in Pennsylvania. Infinity Natural Resources, Inc. was founded in 2017 and is based in Morgantown, West Virginia.

How the Company Makes Money

Infinity Natural Resources generates revenue through multiple streams within the natural resources sector. The primary revenue model is based on the extraction and sale of oil and gas, where the company benefits from fluctuating market prices. Additional revenue is derived from mineral extraction and related services, including consulting and resource management. The company also engages in strategic partnerships with other energy firms and governmental agencies, enhancing its operational capacity and market reach. Factors contributing to its earnings include efficient resource management, investment in technology for sustainable extraction methods, and an increasing global demand for energy and minerals.

Infinity Natural Resources, Inc. Class A Financial Statement Overview

Summary

Infinity Natural Resources, Inc. shows strong financial health with substantial revenue growth, high profitability margins, zero debt, and significant cash reserves. However, there is room for improvement in cash conversion.

Income Statement

Infinity Natural Resources, Inc. has demonstrated substantial revenue growth from $161.73 million in 2023 to $53.15 billion in 2024, indicating a strategic expansion or acquisition. The company maintains strong profitability with a high gross profit margin of 45.3% and a net profit margin of 25.5% in 2024, which showcases efficient cost management and strong bottom-line performance. Additionally, the EBIT and EBITDA margins are both at 43.5%, highlighting robust operational efficiency.

Balance Sheet

The balance sheet is notably strong, with a debt-to-equity ratio of 0, indicating no leverage, which is an excellent sign of financial stability. The equity ratio of 8.6% might seem low, but given the large asset base and zero debt, the company maintains a solid financial structure. The high cash reserves further ensure liquidity and provide a buffer for future investments or downturns.

Cash Flow

The free cash flow improved significantly from a negative position in 2023 to $1.36 billion in 2024, signifying better cash management and operational efficiency. The operating cash flow to net income ratio is 0.1, which is low, suggesting that a significant portion of income is not yet translating into cash flow. The improvement in free cash flow is a positive sign, but the company should focus on improving its cash conversion cycle.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	298.00M	259.02M	161.73M	143.16M
Gross Profit	157.40M	134.94M	75.95M	108.43M
EBITDA	82.64M	144.54M	152.38M	89.04M
Net Income	32.60M	49.29M	86.67M	68.13M
Balance Sheet
Total Assets	1.02B	915.47M	688.51M	266.70M
Cash, Cash Equivalents and Short-Term Investments	6.28M	2.20M	1.50M	739.00K
Total Debt	35.67M	260.90M	172.00M	58.98M
Total Liabilities	167.31M	407.22M	230.05M	117.20M
Stockholders Equity	10.14M	508.24M	458.46M	149.51M
Cash Flow
Free Cash Flow	-116.79M	-78.45M	-330.21M	-30.68M
Operating Cash Flow	225.51M	177.67M	106.47M	64.98M
Investing Cash Flow	-342.29M	-256.12M	-436.69M	-95.66M
Financing Cash Flow	116.21M	79.15M	330.98M	29.00M

Infinity Natural Resources, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTS	―	$834.44M	20.69	6.49%	10.28%	3.96%	29.26%
INR	―	$685.47M	―	―	―	―	―
SBR	―	$1.03B	14.38	987.03%	7.49%	-16.05%	-17.58%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HPK	―	$800.94M	7.39	6.80%	2.52%	-20.30%	-27.90%
KOS	―	$741.29M	―	-14.81%	―	-21.77%	-160.32%

Infinity Natural Resources, Inc. Class A Corporate Events

Infinity Natural Resources: Positive Q2 Earnings Call Highlights

Infinity Natural Resources, Inc. Class A recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company showcased strong production growth and financial performance, alongside significant operational achievements and a robust financial position. However, the call also acknowledged minor midstream delays and a decline in adjusted EBITDA margins. Overall, the positive aspects of the company’s performance appeared to outweigh the negatives.

Infinity Natural Resources Reports Strong Q2 2025 Results

Infinity Natural Resources, Inc. is an independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin, with operations in the Utica and Marcellus Shales.