Infinity Natural Resources just increased its stake in the $1.2 billion Antero Ohio Utica Shale deal and now holds 60%. They achieved this in part with $350 million in equity funding from Quantum Capital Group and Carnelian Energy Capital.
Previously, Infinity held 51%. Now, after reaching an agreement with Northern Oil and Gas, they are set to expand further in eastern Ohio's Utica Shale. The new investment comes as Series A convertible preferred stock and is expected to close at the same time as the main Antero Ohio acquisition, which Infinity anticipates completing by the end of Q1 2026.
Infinity states that this capital helps reduce their leverage, increases liquidity, and supports their Appalachian Basin drilling program. Some of the proceeds will also be used to pay down their senior secured revolving credit facility.
Zack Arnold, Infinity's president and CEO, highlighted Quantum and Carnelian's extensive experience and track record of supporting energy companies' growth. He said their investment supports Infinity's strategy, allows the company to take a larger share of the Antero Ohio deal, and strengthens their financial position. He also noted that Carnelian's Matt Kelly will join Infinity's Board after closing.
Rob Anderson from Quantum praised Infinity's strong performance and drilling results in the Appalachian Basin, expressing Quantum's excitement to support Infinity's major step with the Antero Ohio acquisition and future growth.
Matt Kelly from Carnelian agreed, saying that the combination of Infinity's expertise and the scale provided by the Antero Ohio deal positions the company as a leading consolidator in one of North America's top unconventional gas regions. He said the investment aligns with Carnelian's focus on supporting outstanding management teams with smart growth strategies.
By the numbers, the preferred equity would give Quantum and Carnelian about 20.5% of Infinity's voting power once converted. The shares carry an 8% annual dividend for the first five years, increasing to 12% thereafter. They are convertible at $21.39 per share, representing a 30% premium over the average price before the deal was signed.
BofA Securities is managing the placement for the transaction.
Infinity's main focus is developing the Utica Shale in eastern Ohio, along with dry gas assets in the Marcellus and Utica formations in southwestern Pennsylvania.