Infinity Natural valued at $1.3 billion in debut as US energy IPOs rebound
By Atharva Singh and Arasu Kannagi Basil
(Reuters) - Infinity Natural Resources was valued at $1.30 billion after its shares jumped nearly 11% in their NYSE debut on Friday, underscoring a rebound in energy listings against the backdrop of a more fossil fuel-friendly Trump administration.
President Donald Trump plans to maximize oil and gas production and had declared a national energy emergency last week to accelerate permitting of oil, gas and power projects, roll back environmental protections and withdraw the U.S. from the climate pact.
Shares of West Virginia-based Infinity opened at $22.16, above the initial public offering price of $20 apiece. They were last up at $22.08.
The oil and natural gas producer, backed by buyout firms Pearl Energy Investments and NGP, sold 13.25 million shares within the marketed range of $18 and $21 apiece to raise $265 million.
Shares of oilfield services provider Flowco, which went public earlier this month, were up 20.7% from the offer price, as of last close.
Founded in 2017, Infinity has grown over the years through a series of acquisitions. It has amassed about 93,000 net acres and its operations are located in the Appalachian basin in the northeastern U.S.
"Infinity seems to be a fundamentally solid company, with strong margins and growth backed by its continued increases in production and acquisitions," said Renaissance Capital senior research analyst Nicholas Smith.
The company has more than doubled its profit in the first nine months of 2024.
Infinity, which counts Marathon Oil, BP America and Blue Racer Midstream among its major customers, has exposure to both oil and gas assets, allowing it the flexibility to shift its drilling efforts based on commodity price changes.
"Flowco's solid performance thus far could encourage the IPOs of some of these energy services or tool companies (e.g. HMH Holding, Hornbeck Offshore Services) that are less directly tied to the volatility of oil and gas prices," Smith said.
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