🗞️ What This Document Is

This document is an 8-K filing, which is a report used to alert investors and the public immediately about significant, unplanned corporate events. In this case, Infinity Natural Resources (INR) is providing an update on the financial impact of its derivative contracts for the first quarter of 2026.

The primary focus is not on daily operations, but rather on the complex accounting results from financial instruments—specifically, how the company's risk-management strategies involving commodity prices translated into reported losses for the quarter.

👉 What readers should expect is a highly detailed look at the mechanics of hedging, including specific dollar amounts and future contract valuations across various energy commodities.

🏢 What The Company Does

In simple terms, Infinity Natural Resources is an energy company focused on growth through the development and production of hydrocarbons (oil, gas, etc.). It is described as an independent, growth-oriented company.

The company's operational footprint is highly specific:

• Geographic Focus: The Appalachian Basin.
• Key Assets: The Utica Shale in eastern Ohio, and stacked dry gas assets in both the Marcellus and Utica Shales in southwestern Pennsylvania.

👉 This focus means INR’s revenue streams are directly tied to the commodity prices and extraction capabilities within these specific, rich basins in the Appalachian region.

💰 Total Impact of Derivative Contracts (Q1 2026) 📉

This section details the overall financial outcome of INR’s hedging activities for the quarter ended March 31, 2026. Derivatives are financial contracts that help companies manage risk, allowing them to lock in prices today for commodities they expect to buy or sell later.

The total effect for the quarter resulted in an estimated total derivative loss of approximately $65 million. This loss is composed of two distinct types of accounting adjustments:

• Realized Losses ($18 million): These losses represent actual cash settlements that occurred during the quarter. These were tied to financial contracts referencing crude oil prices, natural gas prices, and regional basis differentials.
• Unrealized Losses ($47 million): These losses stem from the open derivative portfolio. They arise because the company must periodically revalue its outstanding contracts using the current market price curves, even if the money hasn't actually changed hands yet.

👉 Because the unrealized adjustments only reflect accounting re-measurements, they do not represent current cash inflows or outflows. The Company notes that these contracts were entered into pursuant to the board-approved hedging strategy.

🛢️ WTI Crude Oil Swaps Valuation 📈

These figures relate to the swaps used to hedge WTI (West Texas Intermediate) crude oil. Swaps are agreements to exchange cash flows based on an underlying asset (oil) at a future date. This table tracks the valuation of the open portfolio of these oil contracts.

The total unrealized loss across the oil portfolio is $42,287 thousand as of March 31, 2026.

• 2026 Contract Volume: The company holds a significant volume of oil swaps (1,851 MBbls) with a fair value of $32,059 thousand.
• Future Contract Exposure: The portfolio remains exposed to futures in 2027, 2028, and 2029, representing millions of barrels.

👉 The varying values (both positive and negative) across multiple years indicate that the company is managing its price risk across a long time horizon, hedging against price movements for the next several years.

⛽️ Natural Gas Swaps (Fixed Price) 🔢

This section covers the swaps designed to hedge fixed-price natural gas exposure. A fixed-price swap helps lock in a predictable price per unit (MMBtu) for future gas sales.

As of March 31, 2026, the total fair value of the fixed-price natural gas swap portfolio is $30,411 thousand.

• Short-Term Value (2026): The contract volume for 2026 is sizable at 44,756,000 MMBtu, resulting in a current fair value of $27,448 thousand.
• Long-Term Exposure: The portfolio continues through 2031, showing the long-term commitment to managing gas price volatility.

👉 The positive and large fair value suggests that, as of the reporting date, the current market pricing is generally favorable for the company's fixed-price hedging objectives.

🔗 Natural Gas Basis Swaps 📉

The "basis" is a crucial, complex concept in energy that represents the difference between the price of a specific commodity (like natural gas) and the price of a benchmark commodity (like WTI crude oil). This swap hedges that difference.

The total unrealized loss across the basis swaps is ($4,642 thousand) as of March 31, 2026.

• 2026 Basis: The reported volume for 2026 is 40,690,000 MMBtu, with a weighted average price of ($0.93).
• Trend: The unrealized loss tends to decrease slightly over the forecast period, suggesting that the expected spread between gas and oil prices may stabilize or improve slightly in the coming years.

👉 This segment shows that the company is specifically managing the relationship (the basis) between natural gas prices and other energy market benchmarks, which is a critical risk for an integrated energy company.

💧 NGL Swaps Valuation 🌊

NGLs (Natural Gas Liquids) include products like ethane, propane, and butane. Swaps here help the company hedge the price risk associated with these liquid components of natural gas.

The total unrealized loss across the NGL swaps portfolio is ($6,171 thousand) as of March 31, 2026.

• 2026 Exposure: The company has an exposure of 1,307,357 Mbbls in 2026, with an associated unrealized loss of ($5,040 thousand).
• Market Movement: The portfolio tracks volume and fair value through 2027, managing the price risk of these valuable liquid components.

👉 These contracts are vital for managing the entire value chain of natural gas, ensuring that price fluctuations in the liquid products don't undermine the profitability of the underlying gas asset.

⚠️ Preliminary Information and Disclaimer 📋

It is extremely important to understand that the financial numbers presented in this filing are preliminary and unaudited. The information is based on estimates and is not a substitute for a comprehensive statement of results.

The final, definitive amounts for the three months ended March 31, 2026, will be provided in the Company’s Quarterly Report on Form 10-Q or the corresponding official earnings release. This disclaimer is a crucial reminder that the actual results could differ materially due to final financial adjustments or subsequent developments.

🤝 Key Contacts and Resources 📞

For readers who need to follow up on this information, the filing provides direct contact details for the Investor Relations department.

• Contact Person: Thomas Marchetti, Vice President, Investor Relations.
• Email: [email protected]

🧠 The Analogy

Think of hedging with derivative contracts like purchasing insurance for your farm's harvest. You know your crops (your future cash flow) will be worth a lot, but you don't know if the price of corn or wheat will tank in the coming months. By entering into a swap, you are essentially paying a fee today (your unrealized loss) that guarantees you will receive a minimum agreed-upon price later (your hedge floor), protecting you from a dramatic market drop.

🧩 Final Takeaway

Infinity is aggressively managing its commodity price risk across oil, natural gas, and NGLs using complex derivative contracts. While the company reported a total estimated loss of $65 million for Q1 2026, this number reflects accounting adjustments related to their risk mitigation strategy, not necessarily a sign of immediate operational distress.