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Acquisitions
 3 Months Ended
Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
2026 Antero Acquisition
On February 23, 2026, the Company completed the acquisition of certain upstream oil and gas properties and related midstream assets in Ohio from affiliates of Antero Resources Corporation and Antero Midstream LLC (the “Antero Acquisition”), pursuant to purchase and sale agreements dated December 5, 2025, each as amended on February 22, 2026. The Antero Acquisition significantly increased the Company’s production volumes, proved reserves, gathering and transportation capacity, and overall asset base. The total gross purchase price was approximately $1.2 billion in cash, consisting of $800 million for the upstream assets and $400 million for the midstream assets. The Company acquired a 60% undivided interest in the assets, with Northern Oil and Gas Inc. acquiring the remaining 40%.

The Company’s aggregate consideration for its 60% interest in the Antero Acquisition was approximately $683.9 million, which reflects preliminary purchase price adjustments and remains subject to finalization. The acquisition was financed with borrowings under the Company’s Credit Facility and net proceeds from the issuance of Series A Preferred Stock. The Antero Acquisition was accounted for as an asset acquisition in accordance with ASC 805.

Transaction costs of $13.5 million and $0 related to the Antero Acquisition are included in the statements of operations for the three months ended March 31, 2026 and 2025, respectively.

Nonrecurring Fair Value Measurements

The fair values of assets acquired and liabilities assumed in an acquisition are measured on a non-recurring basis on the acquisition date. If the assets acquired and liabilities assumed are current and short-term in nature, the Company typically uses their approximate carrying values as it believes that it approximates their fair values. If the assets acquired are not short-term in nature, then the fair value is determined using the estimated future cash flows or other appropriate methods, and as such, are considered Level 3 inputs in the fair value hierarchy.

The Antero Acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, and the Company estimated the fair value of assets acquired and liabilities assumed as of February 23, 2026.

The fair values of the proved developed producing, proved undeveloped, probable and possible oil and natural gas reserves acquired in the Antero Acquisition were measured using an income approach based on discounted cash flow valuation techniques. The valuations utilize inputs that are not observable in the market and as such are Level 3 fair value measurements. Significant inputs used in the valuation of proved and unproved reserves included commodity prices based on NYMEX strip pricing as of February 23, 2026, projected reserve quantities based on a third-party reserve report, estimated future rates of production and production decline curves, projected reserve recovery factors, development plans including timing and amount of development, future development costs, operating costs and a weighted average cost of capital of 9.5%. The fair value of unevaluated acreage with no associated reserve development plans acquired in the Antero Acquisition was measured using a market approach based on guideline transactions involving comparable Appalachian Basin acreage. This measurement is classified as a Level 3 fair value measurement as the acreage pricing inputs are derived from market transactions that require significant judgment and adjustment.

The fair value of midstream and other property and equipment (gathering systems, compression facilities and water systems) acquired in the Antero Acquisition was measured using a cost approach based on estimated replacement cost new less physical depreciation, functional obsolescence and economic obsolescence. These measurements are classified as Level 3 fair value measurements as the replacement cost estimates and depreciation assumptions are not observable in the market.
Purchase Price Allocation
The following table presents the preliminary allocation of the Company’s consideration to the identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The allocation is preliminary and subject to change as the Company completes its valuation analysis and obtains additional information related to the fair values of the acquired assets and assumed liabilities.
 (in thousands)Preliminary Consideration
Cash (1)
$683,897 
Total estimated consideration$683,897 
Preliminary Purchase Price Allocation
Assets acquired:
Oil and natural gas properties, full cost method$416,527 
Midstream and other property and equipment283,927 
Total assets acquired$700,454 
Liabilities assumed:
Royalties payable13,056 
Asset retirement obligations3,501 
Total liabilities assumed16,557 
Net assets acquired$683,897 
(1) Inclusive of approximately $61.4 million of cash deposit held in escrow as of December 31, 2025.
Pro Forma Financial Information
The following unaudited pro forma financial information represents a summary of the condensed combined results of operations of the Company for the three months ended March 31, 2026 and 2025, assuming the Antero Acquisition and related transactions, including the issuance of the Series A Preferred Stock, occurred on January 1, 2025. The pro forma financial information is provided for illustrative purposes and is not necessarily indicative of results that would have been achieved had the Antero Acquisition occurred on that date, nor is it indicative of future operating results.

The pro forma results include adjustments to depreciation, depletion and amortization based on the purchase price allocated to Oil and natural gas properties, full cost method and Midstream and other property and equipment and the estimated useful lives as well as adjustments to accretion expense and interest expense for the financing of the transactions.

The pro forma adjustments are based on estimates and assumptions that management believes are reasonable under the circumstances. The results of operations from the date of the Antero Acquisition through March 31, 2026 represented approximately $13.9 million of revenue and $8.6 million of income from operations. The pro forma results do not include anticipated synergies or integration-related costs.


Three Months Ended March 31,
(in thousands)20262025
Revenues$175,726 $115,070 
Net loss$(3,074)$(126,177)
Net loss attributable to Infinity Natural Resources, Inc.$(907)$(34,023)
Less
Accretion of Series A Preferred Stock cumulative undeclared dividends$(35,484)$(6,813)
Net loss attributable to Infinity Natural Resources, Inc. - Basic and diluted$(36,391)$(40,836)
Net loss attributable to Infinity Natural Resources, Inc.- basic and diluted$(2.06)$(2.68)