INR · Infinity Natural Resources, Inc.

Infinity Natural Resources provided a preliminary update regarding its derivative contract activities for the first quarter of 2026. The Company recognized realized losses of approximately $18 million associated with settled derivative contracts for the quarter ended March 31, 2026. These realized losses stemmed from cash settlements tied to financial contracts referencing crude oil prices, natural gas prices, and regional basis differentials. In addition to the cash impacts, the Company recorded significant non-cash unrealized losses of approximately $47 million in its outstanding derivative portfolio. These unrealized losses arose from the periodic revaluation of open derivative positions using prevailing forward commodity price curves at the end of the reporting period. Management emphasized that these unrealized adjustments do not represent current-period cash inflows or outflows but rather reflect the accounting remeasurement of the portfolio. The combined effect resulted in estimated total derivative losses of approximately $65 million for the quarter. As of March 31, 2026, the Company's derivative portfolio showed a net liability position. Oil swaps constituted the largest liability with a fair value of negative $42.3 million, while natural gas fixed price swaps provided an offsetting asset value of $30.4 million. The Company noted that all contracts were entered into pursuant to its board-approved hedging strategy. The disclosed financial and operating information is preliminary, unaudited, and subject to completion of financial closing procedures.