By Atharva Singh and Arasu Kannagi Basil
(Reuters) -Infinity Natural Resources notched a valuation of $1.30 billion after shares of the oil and natural gas producer jumped nearly 11% in their New York Stock Exchange debut on Friday.
The listing comes amid a steady stream of initial public offerings by energy companies against the backdrop of a more fossil fuel-friendly Trump administration.
President Donald Trump had declared a national energy emergency last week to boost U.S. oil and natural gas production.
Oilfield services provider Flowco went public earlier this month. Its shares were up 20.7% from the offer price, as of last close.
Shares of Morgantown, West Virginia-based Infinity opened at $22.16, above the offer price of $20 apiece.
Infinity, 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.
Founded in 2017, the company 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 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.
Infinity’s major customers include Marathon Oil, BP America and Blue Racer Midstream. It acquired certain oil and gas assets from Utica Resource Ventures and PEO Ohio for $279 million last year.
(Reporting by Atharva Singh and Arasu Kannagi Basil in Bengaluru; Editing by Leroy Leo and Shilpi Majumdar)
