INFINITY NATURAL RESOURCES, INC. Expands with Key Pennsylvania Acquisition

Infinity Natural Resources, Inc. (INR) is significantly expanding its oil and gas portfolio with a major acquisition in Pennsylvania. The company announced it has purchased substantial non-operated assets in an all-stock transaction designed to boost production, grow its footprint, and ultimately enhance shareholder value, despite some share dilution.

1. Event Description

INR acquired non-operated interests in approximately 50,000 net acres of conventional and unconventional oil and gas properties in Pennsylvania. These assets are expected to add about 2,000 barrels of oil equivalent per day (BOE/d) to INR's net production and an estimated 15 million barrels of oil equivalent (MMBOE) in proven, producing reserves (PDP). INR purchased the properties from Chase Oil Corporation and its affiliates.

INR paid for the acquisition by issuing 2,517,194 new shares of its common stock to the sellers. This all-stock deal values the transaction at approximately $37.76 million, based on INR's stock price at the time of the announcement.

2. Event Date/Timeline

INR signed and closed the acquisition on January 20, 2026, announcing the transaction via a press release on the same day.

3. Impact Assessment

This acquisition supports INR's strategy to expand its asset base and production in key domestic regions. By acquiring non-operated interests, INR seeks capital-efficient growth. This approach reduces direct operational risk and overhead, allowing the company to leverage existing infrastructure and established operations. INR can now direct its capital towards strategic investments instead of daily field management.

The added production and reserves are expected to significantly boost INR's future revenue and cash flow. The issuance of new shares, representing about 10% of INR's previously outstanding shares, will dilute existing shareholders' ownership.

4. Financial Impact

Valued at approximately $37.76 million, the transaction was an all-stock deal. INR issued 2,517,194 new shares of common stock, which dilutes existing shareholders by about 10%.

Despite this dilution, INR management anticipates the acquisition will boost key financial metrics like cash flow per share (CFPS) and earnings per share (EPS) within the first 12 months. This improvement is expected due to the increased production and reserves. Because it was an all-stock transaction, this deal does not immediately affect INR's cash reserves or debt, preserving financial flexibility for future initiatives.

5. Key Takeaways for Investors

Key Risks for Investors:

• Commodity Price Volatility: The value and profitability of these assets depend directly on volatile oil and natural gas prices.
• Operational Dependence: Although non-operated, INR's financial performance from these assets relies on the efficiency and effectiveness of third-party operators.
• Regulatory and Environmental: Expanding fossil fuel extraction can increase scrutiny regarding environmental regulations and community relations in Pennsylvania.
• Integration Challenges: Even for non-operated assets, successful financial and data integration is essential to fully realize the benefits.

What Investors Should Watch Next: Investors should closely monitor INR's upcoming quarterly earnings reports for specific updates on the financial contribution of these new assets, including:

• Production Volumes: Monitor reported increases in net production and any revised guidance.
• Cash Flow and Earnings: Assess the actual impact on CFPS and EPS to confirm the expected boost.
• Reserve Reports: Look for updated reserve estimates that include the newly acquired assets.
• Management Commentary: Pay attention to future statements about the performance of these non-operated interests and any further strategic plans for the Pennsylvania region.

This acquisition marks a notable step in INR's growth trajectory, balancing expansion with a capital-efficient approach. However, its ultimate success will depend on effective integration and favorable market conditions.