INFINITY NATURAL RESOURCES, INC.INR

INFINITY NATURAL RESOURCES, INC. Commitments Disclosure

10-KFiled Mar 10, 20262 min read
Commitments and Contingencies
South Bend Utica Farmout Agreement. On March 2, 2018, INR Holdings entered into an Exploration and Development Agreement and Farm Out Agreement (collectively, the “South Bend Utica Development Agreements”) with Dominion Energy Transmission, Inc. (“Dominion”) covering approximately 11,000 acres in Armstrong and Indiana Counties, Pennsylvania targeting the Utica Shale horizon. This acreage underpins our acreage position at South Bend for Utica development.
The South Bend Utica Development Agreements had an initial term of 15 years and require the drilling of one (1) seven thousand foot lateral into the Utica formation. As of December 31, 2025, we had yet to satisfy that obligation and have approximately 9 years remaining to meet its obligation.

Minimum Future Commitments
The following table summarizes our future commitments related to these oil and natural gas transportation and gathering agreements as of December 31, 2025:
 As of December 31, 2025
 20262027202820292030 and
thereafter		Total
(in thousands)  
Total minimum future volume commitments14,093 13,346 13,962 12,677 13,418 67,496 
Total minimum future service commitments5,850 — — — — 5,850 
Total minimum future commitments$19,943 13,346 13,962 12,677 13,418 $73,346 
Lease Commitments. Refer to Note 6 – “Leases” for details on our operating lease agreements. We do not have any finance lease obligations.
Litigation. From time to time, we are party to various legal and/or regulatory proceedings arising in the ordinary course of business. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe that all such matters
are without merit and involve amounts which, if resolved unfavorably, either individually or in the aggregate, will not have a material effect on our financial condition, results of operations or cash flows.
When it is determined that a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at the time. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, the matter should otherwise be disclosed.

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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