Infinity Natural Resources Announces Third Quarter Impact of Derivative Contracts
INFINITY NATURAL RESOURCES, INC. (INR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Infinity Natural Resources Announces Third Quarter Impact of Derivative Contracts October 14, 2026 MORGANTOWN, W.Va.-- Infinity Natural Resources, Inc. (“Infinity” or the “Company”) (NYSE: INR) today provided an update on the impact of derivative contracts for the th
How this was made
The 30-second read
Why it matters
The disclosed $64.4 M loss is material for the company and may trigger a short‑term price decline.
Market read
The loss underscores commodity price risk for shale producers and could weigh on INR and peers.
What to watch
The company’s hedging strategy may limit future losses; the loss is largely accounting‑driven and not cash‑flow negative.
Infinity Natural Resources Announces Third Quarter Impact of Derivative Contracts
The preliminary update reported approximately $64.4 million of total derivative losses, driven primarily by approximately $63.2 million of non-cash mark-to-market unrealized losses, while providing no comprehensive operating or financial results.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Realized losses associated with settled derivative contracts for the quarter ended September 30, 2026other | approximately $1.2 million | – | – |
| Non-cash mark-to-market unrealized losses in outstanding derivative portfolio for the quarter ended September 30, 2026other | approximately $63.2 million | – | – |
| Total derivative loss for the quarter ended September 30, 2026other | approximately $64.4 million | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2026 volumeother | 801 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2026 weighted average priceother | $ 63.71 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2026 fair valueother | $ (19,499) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2026 volumeother | 115 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2026 weighted average ceiling priceother | $ 78.00 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2026 weighted average floor priceother | $ 70.00 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2026 fair valueother | $ (1,275) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2027 volumeother | 1,710 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2027 weighted average priceother | $ 65.08 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2027 fair valueother | $ (24,170) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2027 volumeother | 350 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2027 weighted average ceiling priceother | $ 84.60 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2027 weighted average floor priceother | $ 70.00 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars 2027 fair valueother | $ (918) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2028 volumeother | 884 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2028 weighted average priceother | $ 70.87 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps 2028 fair valueother | $ (932) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps total volumeother | 3,395 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) swaps total fair valueother | $ (44,601) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars total volumeother | 465 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Oil (WTI) collars total fair valueother | $ (2,193) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2026 volumeother | 8,886,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2026 weighted average priceother | $ 4.31 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2026 fair valueother | $ 9,903 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2027 volumeother | 44,334,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2027 weighted average priceother | $ 3.91 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2027 fair valueother | $ 31,781 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2028 volumeother | 35,370,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2028 weighted average priceother | $ 3.76 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2028 fair valueother | $ 1,019 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2029 volumeother | 29,970,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2029 weighted average priceother | $ 3.61 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2029 fair valueother | $ (2,961) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2030 volumeother | 26,310,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2030 weighted average priceother | $ 3.56 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps 2030 fair valueother | $ (2,931) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps total volumeother | 144,870,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (NYMEX) swaps total fair valueother | $ 36,811 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps 2026 volumeother | 4,296,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps 2026 weighted average priceother | $ 3.12 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps 2026 fair valueother | $ 4,567 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps 2027 volumeother | 10,372,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps 2027 weighted average priceother | $ 2.96 per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps 2027 fair valueother | $ 4,922 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps total volumeother | 14,668,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Fixed Basis) swaps total fair valueother | $ 9,489 in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2026 volumeother | 13,641,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2026 weighted average priceother | $ (0.96) per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2026 fair valueother | $ (1,950) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2027 volumeother | 29,537,000 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2027 weighted average priceother | $ (0.62) per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2027 fair valueother | $ (3,766) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2028 volumeother | 33,086,250 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2028 weighted average priceother | $ (0.51) per MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps 2028 fair valueother | $ (2,153) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps total volumeother | 76,264,250 MMBtu | – | – |
| Open derivative contracts scheduled after September 30, 2026 — Natural Gas (Basis) swaps total fair valueother | $ (7,869) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2026 volumeother | 620 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2026 weighted average priceother | $ 35.89 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2026 fair valueother | $ (5,962) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2027 volumeother | 1,645 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2027 weighted average priceother | $ 33.68 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2027 fair valueother | $ (8,396) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2028 volumeother | 84 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2028 weighted average priceother | $ 57.96 per Bbl | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps 2028 fair valueother | $ (408) in thousands | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps total volumeother | 2,348 MBbls | – | – |
| Open derivative contracts scheduled after September 30, 2026 — NGLs swaps total fair valueother | $ (14,766) in thousands | – | – |
What drove it
- The Company attributed the approximately $63.2 million non-cash mark-to-market unrealized losses to periodic revaluation of open derivative positions using prevailing forward commodity price curves at the end of the reporting period.
- The Company stated that the derivative contracts were entered into pursuant to its board approved hedging strategy.
- Open derivative contracts scheduled after September 30, 2026 include Oil (WTI) swaps and collars, Natural Gas (NYMEX) swaps, Natural Gas (Fixed Basis) swaps, Natural Gas (Basis) swaps and NGLs swaps.
Concerns
- The filing reported a total derivative loss of approximately $64.4 million for the quarter.
- The reported financial and operating information is preliminary and unaudited, based on estimates and subject to completion of financial closing procedures.
- The Company stated that actual results may differ materially from the preliminary estimates because of final adjustments, completion of closing procedures and other developments after the date of the release.
What to watch
- Final amounts for the three months ended September 30, 2026 in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2026 or in the corresponding earnings release.
- Changes in prevailing forward commodity price curves and their effect on remeasurement of the open derivative portfolio.
- Future settlements and fair-value changes for open oil, natural gas and NGL derivative contracts scheduled from 2026 through 2030.
Balance sheet and cash flow
- Realized losses associated with settled derivative contracts of approximately $1.2 million were cash settlements tied to financial contracts referencing crude oil prices, natural gas prices, NGLs prices and regional basis differentials.
Analysis
This Item 2.02 update is limited to the third-quarter impact of derivative contracts rather than a comprehensive earnings release. Infinity reported realized losses associated with settled derivative contracts of approximately $1.2 million and non-cash mark-to-market unrealized losses of approximately $63.2 million. The combined effect was a total derivative loss of approximately $64.4 million for the quarter ended September 30, 2026.
The loss was dominated by unrealized valuation changes. The Company said these changes result from periodic revaluation of open positions using prevailing forward commodity price curves at period end and do not represent current-period cash inflows or outflows. The cash component was tied to settled contracts referencing crude oil, natural gas, NGL and regional basis prices.
The disclosed hedge book extends beyond the current year. Oil swaps and collars are scheduled through 2028, Natural Gas (NYMEX) swaps through 2030, Natural Gas (Fixed Basis) swaps through 2027, Natural Gas (Basis) swaps through 2028, and NGL swaps through 2028. The filing characterizes these contracts as part of the Company's board approved hedging strategy.
The release provides no reported revenue, production, operating income, net income, earnings per share, capital spending, operating cash flow, free cash flow, cash balance, debt or capital-return information. It also contains no forward guidance. Management explicitly described the disclosed third-quarter information as preliminary and unaudited, with final amounts to be reported in the Form 10-Q for the period ended September 30, 2026 or the corresponding earnings release.
Not in the filing
stated, not guessed- Total revenue and revenue comparisons
- Segment revenue and segment comparisons
- Production volumes and pricing
- Gross margin
- Operating expenses
- Operating income
- Net income
- GAAP and non-GAAP earnings per share
- Operating cash flow
- Free cash flow
- Capital expenditures
- Cash and cash equivalents
- Debt and leverage
- Share repurchases and dividends
- Forward financial or operating guidance
- Prior-year and prior-quarter comparisons for reported derivative losses
- Named executive commentary or executive quotes
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Infinity Natural Resources (NYSE: INR) filed an 8‑K reporting its Q3 2026 derivative contract performance.
Ticker impact
Infinity Natural Resources disclosed a total derivative loss of $64.4 million for Q3 2026, including $1.2 million realized and $63.2 million unrealized losses.
likely downward pressure as investors price in the large unrealized loss
Derivative losses of this magnitude are material for a mid‑cap energy producer and directly affect earnings outlook.
Market effects
Highlights exposure of shale producers to commodity price volatility and the importance of hedging programs.
US energy stocks may see modest pullback as the loss underscores sector risk.
Moderate relevance for global commodity‑linked equities.
Counterpoint
If oil and gas prices rebound, the unrealized losses could reverse, offering upside potential.
Key entities
- companyInfinity Natural Resources, Inc.
US‑listed energy producer focused on Appalachian shale assets.
