Infinity Natural, backed by Pearl Energy, valued at $1.3 Billion as shares soar in NYSE debut

Infinity Natural Resources, a company owned by private equity, was valued at $1.3 billion after its shares rose 10.8% on their New York Stock Exchange debut on Friday.

Morgantown, West Virginia based company opened its stock at $22.16, over the $20 per share offer price.

Infinity, supported by Pearl Energy Investments, NGP and other buyout firms, sold 13,25 million shares between $18 and $21 in order to raise $265 millions.

The listing coincides with a Trump administration that is more pro-fossil fuels, and a constant stream of energy IPOs.

Last week, President Donald Trump declared an energy emergency in the United States to increase oil and gas production.

Infinity was founded in 2017 and has grown through acquisitions over the years. Its operations are based in the Appalachian Basin in the northeastern United States.

The company that has amassed approximately 93,000 acres net goes public in 2024 after it doubled its profit during the first nine-month period.

Infinity is exposed to both oil assets and gas assets. This gives it the flexibility to adjust its drilling efforts in response to changes in commodity prices.

Marathon Oil, BP America, and Blue Racer Midstream are its major customers. Last year, the company purchased certain oil and natural gas assets from Utica Resource Ventures PEO Ohio and Utica Resource Ventures for $279 millions.

Citigroup, Raymond James, and RBC Capital Markets led the underwriters of the offering.

Pearl and NGP still hold the majority of Infinity’s voting power.

The proceeds will be used to pay off debts and for other purposes by the company.

Hornbeck Offshore Services, a provider of marine transportation services and drilling equipment, is among the other energy-related IPO hopefuls. (Reporting and editing by Atharva Sing and Arasu Kanagi Basil, both in Bengaluru)

(source: Reuters)