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Infinity Natural Resources, Inc. Class A
(NYSE:INR)
Select Model
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Rating:69Neutral
Price Target:
$15.50
▲(17.42% Upside)
Action:Downgraded
Date:08/11/26
The score is primarily driven by a mixed financial profile—strong margins and improving leverage, but persistently negative free cash flow and negative TTM operating cash flow. Support comes from attractive valuation (very low P/E) and a constructive earnings-call read with reaffirmed guidance, strong growth/efficiency highlights, and significant hedging, while technicals indicate only a partial trend recovery.
Positive Factors
High unit margins
Sustained high gross and net margins indicate strong unit economics for an E&P operator. Durable margin advantage helps absorb commodity swings, funds reinvestment in drilling and midstream, and supports margin-accretive growth even if volumes or prices fluctuate.
Negative Factors
Weak cash generation
Persistent negative free cash flow and the shift to negative operating cash flow reduce the company's ability to self‑fund growth and increase reliance on external financing. Over months, this elevates liquidity and execution risk and can constrain returns until cash generation normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
High unit margins
Sustained high gross and net margins indicate strong unit economics for an E&P operator. Durable margin advantage helps absorb commodity swings, funds reinvestment in drilling and midstream, and supports margin-accretive growth even if volumes or prices fluctuate.
Read all positive factors
Infinity Natural Resources, Inc. Class A (INR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$894.53M
Dividend YieldN/A
Average Volume (3M)360.53K
Price to Earnings (P/E)4.6
Beta (1Y)0.20
Revenue Growth75.40%
EPS GrowthN/A
CountryUS
Employees101
SectorGeneral
Sector StrengthN/A
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)3.06
Shares Outstanding18,751,608
10 Day Avg. Volume316,685
30 Day Avg. Volume360,531
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.74
Price to Sales (P/S)0.64
P/FCF Ratio-1.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$22.88Price Target Upside73.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)3.18
Revenue Forecast (FY)$684.22M
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 crude oil, natural gas, and natural gas liquids in the United States. The company holds interests in the Utica Shale Oil covering an...
How the Company Makes Money
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Infinity Natural Resources, Inc. Class A Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial wins — record adjusted EBITDAX ($115M), outsized production growth (net +75% YoY; oil +102% YoY), meaningful efficiency gains (drilling/completion improvements and $50/ft completion cost reduction), improved NGL realizations (+70% YoY), and a strategic midstream footprint with growing utilization and substantial spare capacity. Near-term challenges include higher reported GP&T driven by assumed firm transportation costs, modest midstream under-utilization today, ongoing service-input inflation risk, and pending technical analysis on the deep Utica well. Management reaffirmed guidance, highlighted disciplined hedging (81% gas, 78% volumes) and an active plan to capture acquisition synergies. Overall, the positives (growth, margin expansion, operational efficiencies, hedging and reaffirmed guidance) materially outweigh the near-term headwinds and uncertainties.Positive Updates
Record Adjusted EBITDAX and Strong Revenue
Generated $171 million in revenues and a company-record adjusted EBITDAX of $115 million in Q2 2026, delivering adjusted EBITDAX margins of ~$3.62 per Mcfe (roughly double the Appalachian peer group average).
Negative Updates
Higher Reported GP&T from Firm Transportation
Reported GP&T expense increased in the quarter primarily due to inclusion of firm transportation costs from the REX Zone 3 contract assumed in the Antero acquisition and higher overall volumes; excluding firm transportation, GP&T was $0.69 per Mcfe.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Adjusted EBITDAX and Strong Revenue
Generated $171 million in revenues and a company-record adjusted EBITDAX of $115 million in Q2 2026, delivering adjusted EBITDAX margins of ~$3.62 per Mcfe (roughly double the Appalachian peer group average).
Read all positive updates
Company Guidance
Infinity reaffirmed full‑year 2026 guidance of average net production of 345–375 MMcfe/d (≈70% y/y growth) and development capital spending of $450–$500 million, noted they are 81% hedged on natural gas and 78% hedged on total volumes for the remainder of 2026 (midpoint basis), expect a six‑to‑seven‑month development cycle and plan to turn in line seven wells in Q3 (a four‑well volatile oil pad and a three‑well dry‑gas PA pad); management also cited supporting operational and midstream metrics — record adjusted EBITDAX of $115M and $3.62/Mcfe margins in Q2, ~1.0 Bcf/d gathering capacity (≈600 MMcf/d Ohio, ≈400 MMcf/d Pennsylvania), system at ~35% utilization with ~70% of current gross gas flowing on the company’s system after a ~30% utilization increase since Q1 — all expected to drive lower per‑unit controllable costs and structural cost declines as volumes scale.Infinity Natural Resources, Inc. Class A Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 522.68M | 356.43M | 259.02M | 161.73M | 143.16M |
| Gross Profit | 299.98M | 191.98M | 134.94M | 75.95M | 108.43M |
| EBITDA | 387.52M | 172.52M | 144.54M | 152.38M | 89.04M |
| Net Income | 60.96M | 23.75M | 49.29M | 86.67M | 68.13M |
Balance Sheet | |||||
| Total Assets | 2.19B | 1.24B | 915.47M | 688.51M | 266.70M |
| Cash, Cash Equivalents and Short-Term Investments | 160.13B | 2.85M | 2.20M | 1.50M | 739.00K |
| Total Debt | 540.02M | 152.01M | 260.90M | 172.00M | 58.98M |
| Total Liabilities | 737.98M | 262.93M | 407.22M | 230.05M | 117.20M |
| Stockholders Equity | 742.54M | 307.14M | 508.24M | 458.46M | 149.51M |
Cash Flow | |||||
| Free Cash Flow | -800.44M | -168.38M | -78.45M | -330.21M | -30.68M |
| Operating Cash Flow | 313.43M | 261.79M | 177.67M | 106.47M | 64.98M |
| Investing Cash Flow | -1.11B | -430.17M | -256.12M | -436.69M | -95.66M |
| Financing Cash Flow | 819.40M | 169.03M | 79.15M | 330.98M | 29.00M |
Infinity Natural Resources, Inc. Class A Risk Analysis
Infinity Natural Resources, Inc. Class A disclosed 80 risk factors in its most recent earnings report. Infinity Natural Resources, Inc. Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Infinity Natural Resources, Inc. Class A Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $894.53M | 4.60 | 16.06% | ― | 75.40% | ― | |
66 Neutral | $800.42M | 6.45 | 19.88% | 4.45% | 23.16% | 21.24% | |
66 Neutral | $682.93M | -52.04 | -1.82% | 12.66% | 8.52% | -129.00% | |
59 Neutral | $939.54M | -9.53 | -5.69% | 2.09% | -12.57% | -188.23% | |
59 Neutral | $870.47M | -11.07 | -3.45% | ― | -5.91% | -114.75% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
INR
Infinity Natural Resources, Inc. Class A
14.08
0.58
4.30%
REPX
Riley Exploration Permian
36.13
10.91
43.28%
HPK
HighPeak Energy
7.43
-0.22
-2.91%
GFR
Greenfire Resources
6.94
2.85
69.68%
VTS
Vitesse Energy, Inc.
16.22
-6.56
-28.78%
TXO
TXO Energy Partners LP
13.81
1.37
10.99%
Infinity Natural Resources, Inc. Class A Corporate Events
Business Operations and StrategyExecutive/Board Changes
Infinity Natural Resources Names New Executive Finance Leaders
Positive
Aug 10, 2026
On August 10, 2026, Infinity Natural Resources announced that its board had appointed industry veteran Cary Baetz as Executive Vice President and Chief Financial Officer and Andrew Judge as Senior Vice President of Finance, with both roles effecti...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Infinity Natural Resources Amends Syndicated Credit Agreement
Neutral
Jun 22, 2026
Infinity Natural Resources, Inc. reported that on June 22, 2026, its subsidiary Infinity Natural Resources, LLC entered into a Fifth Amendment to its Credit Agreement with a group of lenders, with Citibank, N.A. serving as administrative and colla...
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingShareholder Meetings
Infinity Natural Resources Shareholders Back Governance and Capital Plans
Positive
Jun 10, 2026
At its 2026 Annual Meeting of Stockholders held on June 9, 2026, Infinity Natural Resources, Inc. Class A shareholders elected eight directors to one-year terms expiring at the 2027 meeting and endorsed, on an advisory basis, the compensation pack...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.