Executive Summary

Q1 2025 delivered solid operational execution: production averaged 26.5 MBoe/d (+13% q/q), six wells were turned to sales, and Adjusted EBITDAX reached $57.2M with a $23.96/Boe margin .
Headline GAAP results reflect IPO-related noise: a one-time, non-cash stock-based compensation of ~$126.1M drove a GAAP net loss of $128.4M and GAAP diluted EPS of -$2.27; normalized (S&P Global) primary EPS materially beat consensus ($2.16* vs $0.68*) while revenue modestly beat ($85.17M vs $79.85M*) .
Strategy pivot: management accelerated a Marcellus gas-weighted project amid a more constructive gas macro while preserving flexibility to adjust second-half oil activity based on returns .
Liquidity and balance sheet strength are key near-term catalysts: liquidity was $343.6M; net debt was ~ $6.6M with borrowing base increased to $350M, positioning the company for optionality in M&A and development .

What Went Well and What Went Wrong

What Went Well

Strong operations and cycle times: six wells turned to sales (5 Marcellus gas, 1 Utica oil); production +13% q/q; Tortola Marcellus pad came online ahead of schedule, meeting expectations .
Margin and cash generation: Adjusted EBITDAX of $57.2M ($23.96/Boe), +$1.73/Boe y/y; operating costs per BOE fell to $8.42 vs $9.41 in Q1’24; CFO highlighted best-in-basin EBITDA margin positioning .
Balance sheet and liquidity: net debt reduced to ~$6.6M; liquidity $343.6M; borrowing base raised to $350M; $74.2M net cash from operations in the quarter .

Management quotes:

“We delivered strong operational performance… production of approximately 26.5 MBoe/d, representing 13% sequential growth…” — Zack Arnold, CEO .
“Our unique ability to dynamically shift between oil and natural gas development… is proving invaluable…” — Zack Arnold .

What Went Wrong

GAAP earnings impacted by IPO-related expense: one-time non-cash stock-based compensation (~$126.1M) drove a GAAP net loss of $128.4M and diluted EPS of -$2.27 .
Weather-driven cost pressures: unseasonably cold Northeast winter increased operating costs for maintenance/equipment needs (management noted team offset with execution) .
Hedging/derivative P&L noise: Q1 included a $37.2M loss on derivative instruments in the income statement, with cash settlements of $(3.6)M, creating volatility vs underlying operations .

Financial Results

Results vs. Consensus (Q1 2025)

Metric	Consensus	Actual	Beat/Miss
Revenue ($USD)	$79.85M*	$85.17M	Beat
Primary EPS (Normalized)	$0.68*	$2.16*	Beat
EBITDA ($USD)	$56.65M*	$22.16M*	Miss (definition differs from company’s Adjusted EBITDAX)

Notes: Company-reported Adjusted EBITDAX was $57.2M (non-GAAP) . Values marked with * retrieved from S&P Global.

Income Statement/Profitability – Sequential and YoY

Metric	Q1 2024	Q4 2024	Q1 2025
Total Revenues ($USD)	$50.23M	$68.83M*	$85.17M
Net Income (Loss) ($USD)	$(14.06)M	$(5.52)M*	$(128.36)M
GAAP Diluted EPS ($)	N/A	N/A	$(2.27)
Adjusted EBITDAX / Adjusted EBITDA ($USD)	$42.79M (Adj. EBITDAX)	$46.20M (Adj. EBITDA)	$57.25M (Adj. EBITDAX)
EBITDA Margin %	13.02%*	24.90%*	26.02%*
EBIT Margin %	(17.95%)*	(0.25%)*	1.06%*
Net Income Margin %	(27.99%)*	(7.98%)*	(28.95%)*
Cash from Operations ($USD)	$30.16M	$30.10M*	$74.23M
Capital Expenditures ($USD)	$(38.18)M	$(61.36)M*	$(108.43)M
Cash & Equivalents ($USD)	N/A	$2.20M*	$4.86M
Total Debt ($USD)	$172.00M*	$260.90M*	$12.78M

Notes:

Q4 2024 adjusted profitability was disclosed as adjusted EBITDA; company generally presents Adjusted EBITDAX (minor definitional differences).
Values marked with * retrieved from S&P Global.

KPIs and Operating Metrics

KPI	Q1 2024	Q1 2025
Total Production (MBoe)	1,925	2,389
Avg Daily Production (MBoe/d)	21.157	26.546
Mix (% oil / % NGL / % gas)	N/A	31% / 23% / 45%
Oil (MBbls)	380	742
NGL (MBbls)	380	561
Natural Gas (MMcf)	6,892	6,519
Realized Price – Oil ($/Bbl, before derivatives)	$68.42	$63.40
Realized Price – Gas ($/Mcf, before derivatives)	$1.93	$3.51
Realized Price – NGL ($/Bbl, before derivatives)	$24.70	$25.49
GP&T ($000)	$10,456	$12,070
LOE ($000)	$7,288	$7,434
Taxes ($000)	$359	$632
DD&A ($000)	$15,555	$21,258
G&A ex SBC ($000)	$2,128	$4,856
Adjusted EBITDAX ($000)	$42,790	$57,246

Production by Region (Q1 2025)

Region	Net Daily Production (MBoe/d)
Ohio	22.7
Pennsylvania	3.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
D&C Capital	FY 2025	$240–$280M (Q4’24 call)	Maintain FY 2025 capital guidance	Maintained
Production Growth	FY 2025	~40% YoY (midpoint)	Maintain FY 2025 production outlook	Maintained
Operated Rigs	FY 2025	1 rig for year; temp 2nd rig for one 4-well Marcellus pad	Remain on one-rig schedule; 2 rigs ran for part of Q1; 2 frac crews in Q2	Maintained plan/cadence clarified
Commodity Mix	FY 2025	Increased gas weighting vs 2024	Accelerating next gas project; reviewing H2 oil-weighted plan	Tilt to gas accelerated
Borrowing Base	As of 3/31/25	$325M prior	Increased to $350M	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q3 2024)	Current Period (Q1 2025)	Trend
Commodity optionality (oil ↔ gas)	Emphasized ability to shift; planned higher gas weighting in 2025	Not available	Accelerating Marcellus gas pad; reviewing H2 oil program; optionality core to strategy	Increasing focus on gas
Hedging discipline	Active hedging: ~36 Bcf at $3.58, 2.2MMbbl at $71.65 for 2025	Not available	Maintain dynamic hedging to lock DROIs; hedge near-term projects	Consistent/ongoing
Operations/cycle times	Highlighted rapid pad build and cycle times; 6 oil wells online late Q4	Not available	Six TILs in Q1; Tortola online ahead of schedule; 2 rigs in Q1; 2 frac crews in Q2	Strong execution sustained
Costs/unit economics	Anticipated per-unit cost declines in 2025 with gas mix, owned midstream	Not available	Operating costs/BOE down to $8.42; expect further declines with more PA gas	Improving
Deep Utica (PA)	Permits in hand; evaluating timing	Not available	Actively evaluating; pads/rig capable; timing TBD	Under evaluation; constructive
M&A posture	Active in basin; balanced oil/gas opportunities	Not available	Very active but patient; recent NE deals supportive; accretive opportunities	Active and selective

Management Commentary

“Our flexible operating model and balanced portfolio across the Marcellus and Utica Shales enable us to pivot between oil and natural gas development based on market conditions… combined with our clean balance sheet, [this] positions us to fund development through cash flow.” — Zack Arnold, CEO .
“Operating costs on a per unit basis declined during the first quarter to $8.42 per BOE… We continue to anticipate further declines… as we increase our natural gas production from Pennsylvania.” — David Sproule, CFO .
“With approximately $7 million in net debt and $344 million in liquidity at quarter end, our balance sheet provides significant flexibility to evaluate strategic opportunities, including M&A….” — Zack Arnold .

Q&A Highlights

Gas acceleration vs oil deferrals: Gas pads pulled forward twice in 2025; mix impact more meaningful in 2026 if late-2025 gas comes online then .
Tortola Marcellus pad: Brought online ahead of schedule, in line with budgets, meeting expectations to date .
Deep Utica (PA): Offsets encouraging (CNX, Olympus); pads/rigs ready; timing under evaluation, not a risk-based delay .
Hedging approach: Continue hedging at project stages (oil and gas) to lock high DROIs while preserving upside through continued development .
Activity cadence and services: Dropped to one rig post-Q1; added second frac crew in Q2; service costs acceptable and focus is on efficiency gains with partners .

Estimates Context

Q1 2025 normalized Primary EPS and revenue beat consensus (EPS $2.16* vs $0.68*; revenue $85.17M vs $79.85M*) . The GAAP diluted EPS (-$2.27) diverged due to ~$126.1M one-time, non-cash stock-based compensation tied to the IPO .
S&P Global EBITDA consensus appears not directly comparable to company’s non-GAAP Adjusted EBITDAX; company reported $57.2M Adjusted EBITDAX vs S&P EBITDA actual of $22.16M*, highlighting definitional differences .
Implication: Street models will likely adjust for IPO-related SBC and reconcile to Adjusted EBITDAX; expect estimate revisions to reflect stronger gas macro, faster TIL cadence, and lower per-unit costs from PA gas and owned midstream .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Underlying operations strong; GAAP loss driven by one-time IPO SBC—normalized EPS and revenue beat consensus; Adjusted EBITDAX trends positive .
Gas pivot accelerating into a constructive macro; optionality remains a core differentiator enabling agile capital allocation between oil and gas .
Cost trajectory favorable: per-unit operating costs declining with increased PA gas volumes over owned midstream; additional efficiencies targeted with service partners .
Balance sheet/liquidity provide catalysts: $343.6M liquidity and minimal net debt enable accretive M&A and disciplined growth without stressing leverage .
Watch near-term: execution on summer Marcellus pad, sequential production ramp, and clarity on H2 oil program; service-cost stability supports returns .
Medium-term: potential Deep Utica entry could expand high-return inventory; sustained hedge discipline should underpin DROIs across cycles .
Narrative driver: demonstrable gas-weighted growth within cash flow, coupled with strong margins and optionality, is likely to be rewarded if execution continues and gas pricing remains constructive .

Additional Disclosures:

Where noted with an asterisk (*), values are retrieved from S&P Global consensus/actuals and may reflect definitions (e.g., EBITDA vs Adjusted EBITDAX) that differ from company-reported non-GAAP measures.

Sources: Q1 2025 8-K and press release ; Q1 2025 earnings call transcript ; Q4 2024 earnings call transcript .

INFINITY NATURAL RESOURCES, INC. (INR)·Q1 2025 Earnings Summary