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What were the key takeaways from Infinity Natural's earnings call?

- **Record Production Growth**: Q3 2025 net production up 39% YoY to 36.0 MBoe/d, driven by 70% natural gas growth.
- **Operational Excellence**: Set 16-stage completion record, reduced casing time by 25%, and added 3,000 net acres via 350 transactions.
- **Financial Strength**: $60M adjusted EBITDA, $71M net debt, and $75M share buyback program approved.
- **2026 Outlook**: 1-1.5 rig pace, balanced oil/gas development, and no midstream constraints.
- **Share Value**: Shares undervalued at $11.50; buyback could repurchase >40% of Class A shares.

**【Management Opening Remarks】**
- Greg Pipkin introduced the call, noting the updated investor presentation and reminding participants of forward-looking statements and non-GAAP financial measures.

**【CEO Summary Section】**
- **Production Growth**: Q3 2025 net production reached 36.0 MBoe/d, up 39% YoY, with natural gas production surging 70% YoY to 138 MMcf/d.
- **Operational Milestones**: Achieved a record 47.9 MBoe/d net production in October, with 10 wells turned in line (6 oil-weighted in Ohio, 4 gas-weighted in Pennsylvania).
- **Efficiency Improvements**: Drilled 93,000 lateral feet with 25% faster casing running times; completed 442 stages, including a 16-stage record in 24 hours.
- **Land Acquisitions**: Added 3,000 net acres (350 transactions) in Q3, enhancing working interests in active projects and adding ~1 net well to 2025 guidance.
- **Updated Guidance**: Full-year production raised to 33.5-35 MBoe/d (from 32-35 MBoe/d); CapEx guidance tightened to $270-292M.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted EBITDA of $60M (Q3 2025) with $18.12/Boe margin, up 33% YoY. Cash operating costs declined to $6.09/Boe (from $9.42/Boe).
- **Capital Deployment**: Q3 D&C spend of $83.2M, with $11.8M in land acquisitions. Full-year CapEx expected within $270-292M range.
- **Balance Sheet Strength**: $71M net debt, $304M liquidity post-$375M borrowing base expansion. Board approved $75M share repurchase program.
- **Hedging Strategy**: Maintained strong natural gas hedges through 2025, with exposure to rising gas prices in 2026.

**【Q&A Key Highlights】**
- **Deep Dry Gas Utica Testing**: No 2026 timeline for first well, but excited about peers' success and potential returns.
- **Ground Game Strategy**: 3,000 net acres added in Q3 via 350 transactions, enhancing working interests in active projects.
- **Share Buybacks vs. Acquisitions**: CFO emphasized buybacks won't impact M&A; shares undervalued at $11.50 (11/10 close).
- **Midstream Constraints**: No bottlenecks; midstream infrastructure built for 2025-26 gas volumes.
- **2026 Outlook**: Expect 1-1.5 rig pace, balanced oil/gas development, and continued efficiency gains.
- **Hedging Decisions**: Reduced hedge volumes reflect strong well performance and confidence in gas price upside.
- **Share Repurchase Execution**: Targeting Class A shares; potential to repurchase >40% of outstanding shares at current price.

Infinity Natural Resources, Inc. (INR) Q3 2025 Earnings Call Transcript

Oil, Natural Gas, and Natural Gas Liquids Sales

Midstream Activities

INR

INR fundamentals

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