One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Infinity Natural Resources, Inc.
INR · NYQ · Energy · Oil & Gas E&P
Current price
$13.34
52-week range
$11.13 - $19.59
Market cap
$248.68M
Balance sheet
Stretched
1.23x Concerning
Net debt $514.13M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 46.6% last year.
- Reward Returns 19.3% on equity, ahead of 50% of its peers.
- Reward Trades at 4.5x P/E vs peer median 9.4x (52.2% cheaper).
- Risk Net debt grew 156.1% over 3 years.
What this company does
Infinity Natural Resources, Inc.
Infinity Natural Resources, Inc. is in the business of finding and extracting oil and natural gas, which are the main things they sell. Their money primarily comes from selling these fuels, and this matters because their success depends on the demand and price of these energy sources.
How the company got here
Infinity Natural Resources was founded in 2017 as a private company focused on exploring and developing oil and natural gas reserves in the Appalachian Basin. The company's strategy has been to build a strong position in this region through acquiring land, developing technical expertise, and drilling wells. A key turning point was its transition from a private operator to a publicly traded company, listed under the ticker symbol INR. This move allowed for greater access to capital and increased visibility in the market. The company has since focused on repeatable development programs and improving operational efficiency to create value for its shareholders.
What it actually does
Infinity Natural Resources is in the business of finding and producing oil and natural gas. Think of them like a modern-day prospector, but instead of gold, they're looking for underground deposits of crude oil and natural gas. They acquire land, drill wells using advanced techniques, and then sell the extracted resources. The company's primary customers are not individual consumers, but rather other businesses in the energy sector, such as marketers and processors, who buy these raw materials.
Utica Shale Oil
This segment of Infinity Natural Resources focuses on extracting oil from the Utica Shale formation, primarily located in eastern Ohio. The Utica Shale is known for its rich deposits of crude oil and natural gas liquids. The company holds significant acreage in this area, allowing for extensive exploration and development. By utilizing advanced drilling techniques, Infinity aims to efficiently extract these valuable resources, contributing a significant portion of the company's overall production and revenue.
Marcellus Shale Dry Gas
Infinity Natural Resources also operates in the Marcellus Shale, focusing on extracting dry natural gas. This region, spanning parts of Pennsylvania and West Virginia, is a major source of natural gas in the United States. Dry gas refers to natural gas that has had most of its heavier hydrocarbon components removed. The company's operations here involve developing these gas reserves to meet market demand, adding another key commodity to its product mix.
Utica Deep Dry Gas
This business line involves the extraction of dry natural gas from deeper geological formations within the Utica region, also primarily in Pennsylvania. While similar to the Marcellus Shale operations in that it targets dry gas, this segment focuses on specific deep formations within the Utica play. Developing these deeper reserves requires specialized techniques and technology, contributing to the company's diverse production portfolio and its ability to tap into various resource opportunities within the Appalachian Basin.
What management is betting on now
Infinity Natural Resources' current strategy revolves around disciplined growth and operational efficiency. Management is focused on developing its existing acreage in the Appalachian Basin through repeatable drilling programs, aiming to increase production while controlling costs. A major recent development is the acquisition of significant upstream and midstream assets, which is expected to boost cash flow and expand the company's operational footprint. They are also prioritizing strengthening their financial position and ensuring they can adapt to changing energy prices.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$171.02M
Net income
$31.75M
Diluted EPS
0.88
Operating cash flow
$137.85M
Free cash flow
—
Fetching…
Sources
Revenue
$154.87M
Net income
$-1.87M
Diluted EPS
-0.28
Operating cash flow
$58.43M
Free cash flow
—
Fetching…
Sources
Revenue
$117.06M
Net income
$20.01M
Diluted EPS
1.33
Operating cash flow
$75.09M
Free cash flow
—
Fetching…
Sources
Revenue
$79.73M
Net income
$10.40M
Diluted EPS
0.65
Operating cash flow
$42.07M
Free cash flow
—
Fetching…
Sources
Revenue
$74.48M
Net income
$17.99M
Diluted EPS
1.18
Operating cash flow
$70.40M
Free cash flow
—
Fetching…
Sources
Revenue
$85.17M
Net income
$-34.57M
Diluted EPS
-2.27
Operating cash flow
$74.23M
Free cash flow
—
Fetching…
Sources
Revenue
$69.11M
Net income
$0.00
Diluted EPS
0.00
Operating cash flow
$30.10M
Free cash flow
—
Fetching…
Sources
Revenue
$69.24M
Net income
—
Diluted EPS
0.00
Operating cash flow
$50.77M
Free cash flow
—
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $13.34
We couldn't calculate a fair value right now.
Is it drowning in debt?
Stretched
Net debt $514.1M. Interest coverage 1.2x.
Net debt
$514.13M
Interest coverage
1.23x
Infinity Natural Resources, Inc.'s profit covers its interest bill about 1.2 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
INR
BASELINE
Infinity Natural Resources, Inc.
Total debt $540.02M Interest coverage 1.23x This is the baseline the peer rows are being compared against.
Total debt $196.00M Interest coverage 29.21x +2,273% vs INR Carries about 23.7x more debt cushion than INR.
Total debt $1.34B Interest coverage -0.65x -100% vs INR This peer has almost no interest-payment cushion compared with INR.
Total debt $922.41M Interest coverage 10.23x +731% vs INR Carries about 8.3x more debt cushion than INR.
Total debt $2.72B Interest coverage 3.49x +183% vs INR Carries about 2.8x more debt cushion than INR.
Total debt $104.74M Interest coverage 1.40x +14% vs INR Has roughly the same debt cushion as INR.
What you should know
The case for and against INR
3 Rewards
1 Risk
Rewards
-
Revenue grew 46.6% last year.
-
Returns 19.3% on equity, ahead of 50% of its peers.
-
Trades at 4.5x P/E vs peer median 9.4x (52.2% cheaper).
Risks
-
Net debt grew 156.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
4.49x
Forward P/E
4.04x
P/B
0.62x
P/S
0.48x
EV/EBITDA
4.49x
PEG ratio
0.13x
Profitability
How much profit each dollar creates
Gross margin
78.4%
Operating margin
74.9%
Net margin
11.5%
ROE
19.3%
ROA
10.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.37x
Current ratio
0.87x
Quick ratio
0.70x
Total debt
$540.02M
Total cash
$25.88M
Growth
How the business has been compounding
Revenue TTM
$522.68M
Revenue 5Y CAGR
120.4%
EPS TTM
2.97
EPS 5Y CAGR
-8.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$313.43M
Free CF TTM
$-168.38M
FCF margin
-32.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—