Infinity Natural Resources, Inc. (NYSE: INR) increased its ownership in the pending $1.2 billion Antero Ohio Utica Shale acquisition from 51 % to 60%. The move is financed by a $350 million strategic equity investment from Quantum Capital Group and Carnelian Energy Capital, issued as Series A convertible preferred stock.
The $350 million is split between Quantum Capital Group’s $275 million and Carnelian Energy Capital’s $75 million. The Series A preferred shares carry an 8.00 % dividend per annum for the first five years, rising to 12.00 % thereafter, and can be paid in cash or in kind for the first two years. The conversion price is set at $21.39 per share, a 30 % premium over the five‑day volume‑weighted average price preceding the agreement, and the preferred stock represents roughly 20.5 % of Infinity’s voting power on an as‑converted basis.
The equity injection reduces Infinity’s pro‑forma leverage and strengthens its balance sheet, providing liquidity for the acquisition and additional general corporate purposes. The transaction is expected to close by the end of the first quarter of 2026, adding 141 miles of gathering lines and expanding Infinity’s footprint in the Utica play.
Under the new ownership structure, Northern Oil and Gas will hold a 40 % interest in the deal, while Infinity’s share of the purchase price is now $480 million, down from $588 million. The acquisition remains valued at $1.2 billion and includes upstream and midstream assets.
Infinity’s 2024 financials show revenue of $259.02 million, a 60.16 % increase from $161.73 million in 2023, but earnings fell 43.14 %. The company’s operating margin was –4.58 %, net margin –0.58 %, and gross margin 53.02 %, highlighting ongoing profitability challenges.
Analysts have responded cautiously. KeyBanc lowered its price target to $19.00 from $22.00, while BofA reduced its target to $20 from $24, citing concerns about execution risk and debt management. President and CEO Zack Arnold said, "Quantum and Carnelian bring deep energy sector expertise and a proven track record of partnering with management teams to drive operational excellence and strategic growth. Their investment further validates our strategic direction while allowing us to increase our participation in the Antero Ohio acquisition and maintain a conservative capital structure."
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