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INR

INR Reports $65 Million Loss From Derivative Contracts

Infinity Natural Resources said first-quarter derivative contracts produced an estimated $65 million loss in the period ended March 31, 2026, driven by $18 million of realized losses on settled hedges and $47 million of unrealized losses on open positions.

The company’s oil hedges were the largest contributor to the decline. Its WTI swap book showed a $42.3 million fair-value loss at quarter-end, while oil collars added another $1.2 million loss. The oil portfolio covered 3.88 million barrels in swaps at a weighted average price of $63.58 per barrel, plus 254,000 barrels in collars with a $78.00 ceiling and $70.00 floor.

Natural gas swaps were the main offsetting item, with a $30.4 million fair value gain at March 31. Those positions totaled 196.8 billion cubic feet equivalent at a weighted average fixed price of $3.64 per MMBtu. Natural gas basis swaps were in a $4.6 million loss position, tied to 107.5 million MMBtu of exposure.

The company’s NGL hedges were also negative, with a $6.2 million fair value loss on 3.15 million barrels. The positions were weighted at $33.50 per barrel in 2026 and $33.97 in 2027.

By contract year, the biggest oil losses were concentrated in 2026 and 2027, with fair-value losses of $32.1 million and $10.5 million, respectively. Natural gas swaps showed gains in 2026 and 2027 of $27.4 million and $7.0 million, while later years turned negative: a $1.3 million loss in 2028, $981,000 in 2029, $1.4 million in 2030 and $372,000 in 2031. The market has reacted to these announcements by moving the company's shares 2.59% to a price of $18.25. Check out the company's full 8-K submission here.

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