(WO) — Infinity Natural Resources has increased its ownership in the $1.2-billion Antero Ohio Utica Shale acquisition to 60%, funded in part by a $350-million strategic equity investment from Quantum Capital Group and Carnelian Energy Capital.
The Morgantown-based independent agreed to raise its stake from 51% under an arrangement with Northern Oil and Gas, positioning Infinity to expand its footprint in eastern Ohio’s Utica Shale.
The $350-million investment will be made through Series A convertible preferred stock and is expected to close alongside the Antero Ohio acquisition, which Infinity anticipates completing by the end of the first quarter of 2026.
Infinity said the capital infusion will reduce pro forma leverage, increase liquidity and support continued development across its Appalachian Basin drilling inventory. A portion of the proceeds will also be used to repay borrowings under the company’s senior secured revolving credit facility.
“Quantum and Carnelian bring deep energy sector expertise and a proven track record of partnering with management teams to drive operational excellence and strategic growth,” Zack Arnold, president and CEO of Infinity, said. “Their investment further validates our strategic direction while allowing us to increase our participation in the Antero Ohio acquisition and maintain a conservative capital structure. The transaction furthers our financial flexibility to pursue additional accretive growth opportunities. We are excited to have Matt Kelly from Carnelian join the Board at closing.”
“Infinity’s strong operational execution and successful organic drilling program demonstrate management’s ability to create significant stakeholder value in the Appalachian Basin,” said Rob Anderson, Managing Director at Quantum. “We are excited to partner with Infinity as a strategic investor and to support its transformational Antero Ohio acquisition and continued growth trajectory.”
“The combination of Infinity’s operational excellence and the strategic scale provided by the Antero Ohio acquisition positions the company as a leading consolidator in one of North America’s premier unconventional basins,” said Matt Kelly, Managing Director at Carnelian. “This investment aligns with our focus on partnering with best-in-class management teams executing accretive growth strategies.”
On an as-converted basis, the preferred equity would represent approximately 20.5% of Infinity’s voting power. The preferred shares carry an 8% annual dividend for the first five years, increasing to 12% thereafter, and are convertible at $21.39 per share — a 30% premium to the five-day volume-weighted average price prior to signing.
BofA Securities is acting as sole placement agent on the transaction.
Infinity focuses on development of the Utica Shale in eastern Ohio and stacked dry gas assets in the Marcellus and Utica formations in southwestern Pennsylvania.
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