INFINITY NATURAL RESOURCES, INC.

Previous wording

We are a growth oriented independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin. We are focused on creating shareholder value through the identification and disciplined development of low-risk, highly economic oil and natural gas assets while maintaining a strong and flexible balance sheet. We are an early mover into the core of the Utica Shale’s volatile oil window in eastern Ohio as well as the emerging dry gas Utica Shale in southwestern Pennsylvania. Our Marcellus Shale development overlays our deep dry gas Utica assets in Pennsylvania, providing highly economic stacked development inventory that leverages the same company-owned midstream infrastructure. We have amassed approximately 95,000 net surface acres with exposure to the core of these plays providing us a unique and balanced portfolio of high-return oil and natural gas drilling locations. This balance allows us to optimize our development plan across our portfolio to capitalize on changes in commodity pricing over time.

Current wording

We are a growth oriented independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin. We are focused on creating shareholder value through the identification and disciplined development of low-risk, highly economic oil and natural gas assets while maintaining a strong and flexible balance sheet. We have amassed approximately 95,600 net surface acres with exposure to the core of the Marcellus and Utica Shale plays providing us a unique and balanced portfolio of high-return oil and natural gas drilling locations. This balance allows us to optimize our development plan across our portfolio to capitalize on changes in commodity pricing over time.

Previous wording

Concerns of global economic growth, inflation, OPEC+’s recent decisions to increase production and resulting increases in global oil and natural gas supply levels and the potential for a global trade war resulted in oil price deterioration throughout 2024 and 2025. Oil prices have continued to be volatile and have been influenced by geopolitical tensions and trade policies as well as global economic slowdowns resulting in more downward pressure of prices at the end of the first quarter and beginning of the second quarter of 2025, though oil prices have moderately recovered from their lows in May. Natural gas prices remained low for the majority of 2024 driven by an over-supply due to mild winter weather, liquefied natural gas project delays and higher than expected natural gas production, but prices have improved during 2025 relative to 2024 though they remain volatile.

Current wording

Concerns of global economic growth, inflation, the Federal Reserve’s recent decisions to adjust interest rates, OPEC+’s recent decisions to increase production and resulting increases in global oil and natural gas supply levels and the potential for a global trade war resulted in oil price deterioration throughout 2024 and 2025. Oil prices have continued to be volatile and have been influenced by geopolitical tensions, tariffs and trade policies as well as global economic slowdowns resulting in more downward pressure on prices. Natural gas prices remained low for the majority of 2024 driven by an over-supply due to mild winter weather, liquefied natural gas project delays and higher than expected natural gas production, but prices have improved during 2025 relative to 2024 due to a combination of weather-related demand spikes, tightening supply, and increased global exports, particularly of liquified natural gas, though prices remain volatile.

Previous wording

The oil and gas industry is cyclical and commodity prices are highly volatile. During the period from January 1, 2025 through June 30, 2025, spot prices for NYMEX WTI crude oil ranged from $60.92 per Bbl to $75.25 per Bbl, while the range for NYMEX Henry Hub natural gas spot prices was between $3.17 per MMBtu and $3.95 per MMBtu. We expect that the commodity market will continue to be volatile in the future. The prices we receive for our production, and the levels of our production, depend on numerous factors beyond our control. We use a derivative portfolio and firm sales contracts to mitigate the risks of price volatility.

Current wording

The oil and gas industry is cyclical and commodity prices are highly volatile. During the period from January 1, 2025 through September 30, 2025, spot prices for NYMEX WTI crude oil ranged from $62.17 per Bbl to $75.74 per Bbl, while the range for NYMEX Henry Hub natural gas spot prices was between $2.87 per MMBtu and $3.96 per MMBtu. We expect that the commodity market will continue to be volatile in the future. The prices we receive for our production, and the levels of our production, depend on numerous factors beyond our control. We use a derivative portfolio and firm sales contracts to mitigate the risks of price volatility.

Previous wording

Due to the cyclical nature of the oil and gas industry, fluctuating demand for oilfield goods and services can put pressure on the pricing structure within our industry. As commodity prices rise, costs of oilfield goods and services generally also increase; however, during periods of commodity price declines, oilfield costs typically lag and do not adjust downward as fast as commodity prices do. In addition, the United States saw higher levels of inflation during 2024 and the beginning of 2025, which is expected to remain heightened throughout 2025 due to concerns over global trade wars and changes in tariff policies. Inflationary pressures such as these may also result in increases to the costs of our oilfield goods, services and personnel, which can in turn cause our capital expenditures and operating costs to rise.

Current wording

Due to the cyclical nature of the oil and gas industry, fluctuating demand for oilfield goods and services can put pressure on the pricing structure within our industry. As commodity prices rise, costs of oilfield goods and services generally also increase; however, during periods of commodity price declines, oilfield costs typically lag and do not adjust downward as fast as commodity prices do. In addition, the United States saw higher levels of inflation during 2024 and the beginning of 2025, which is expected to remain heightened for the remainder of 2025 due to concerns over global trade wars and changes in tariff policies. Inflationary pressures such as these may also result in increases to the costs of our oilfield goods, services and personnel, which can in turn cause our capital expenditures and operating costs to rise.

Previous wording

Public Company Expenses. We have incurred and expect to continue to incur direct, incremental G&A expenses as a result of being a public company, including costs associated with compliance with the Securities Exchange Act of 1934, as amended (the "Exchange Act"), tax compliance, PCAOB support fees, the Sarbanes-Oxley Act compliance costs, investor relations activities, listing fees, registrar and transfer agent fees, stock-based compensation, incremental director and officer liability insurance costs, and independent director compensation. We estimate these direct, incremental G&A expenses could total approximately $4 million to $6 million per year, which are not included in our historical results of operations.

Current wording

Public Company Expenses. We have incurred and expect to continue to incur direct, incremental G&A expenses as a result of being a public company, including costs associated with compliance with the Exchange Act, tax compliance, PCAOB support fees, the Sarbanes-Oxley Act compliance costs, investor relations activities, listing fees, registrar and transfer agent fees, stock-based compensation, incremental director and officer liability insurance costs, and independent director compensation. We estimate these direct, incremental G&A expenses could total approximately $4 million to $6 million per year, which are not included in our historical results of operations of our predecessor.

Previous wording

Oil, natural gas, and NGL sales. Total oil, natural gas and NGL net revenues for the three months ended June 30, 2025 increased by $2.4 million, or 3%, compared to the three months ended June 30, 2024. Revenues are a function of oil, natural gas and NGL volumes sold and average commodity prices realized.

Current wording

Oil, natural gas, and NGL sales. Total oil, natural gas and NGL net revenues for the three months ended September 30, 2025 increased by $9.3 million, or 13%, compared to the three months ended September 30, 2024. Revenues are a function of oil, natural gas and NGL volumes sold and average commodity prices realized.

Previous wording

Net production volumes for oil decreased 17%, natural gas volumes increased 54% and NGL volumes increased 23% between periods for the three months ended June 30, 2025 and 2024. The increase in natural gas volumes is predominantly related to the five wells coming online in the first quarter of 2025 in the Marcellus Shale in Pennsylvania as well as the contribution from one additional well placed online in Ohio during 2025. The decrease in oil volumes between periods was due primarily to the normal production decline across existing wells as well as the timing of wells placed online during 2024. The combination of a full quarter of production from the wells placed into production in late 2024 and new wells placed into production in the first quarter of 2025 contributed to the overall increase of 7.2 Mboe/d, or 28%, in production relative to the prior period.

Current wording

Net production volumes for oil increased 7%, natural gas volumes increased 70% and NGL volumes remained flat between periods for the three months ended September 30, 2025 and 2024. The increase in oil volumes between periods was due primarily to six wells placed into service in Ohio during the third quarter of 2025. The increase in natural gas volumes was predominantly related to the four wells coming online in the third quarter of 2025 in the Marcellus Shale in Pennsylvania and the six Ohio wells. The wells placed into service in the third quarter 2025 contributed to the overall increase of 10.0 MBoe/d, or 39%, in production relative to the prior period, offset by the natural decline of producing wells.

Previous wording

Lease operating expenses. LOE for the three months ended June 30, 2025, decreased $0.3 million compared to the prior period. LOE per Boe was $2.09 for the three months ended June 30, 2025, which represents a decrease of $0.71 per Boe, or 25%, from the prior period. This decrease in LOE was primarily related to lower fixed and semi-variable well costs, such as water disposal, equipment rentals, repair work, wellhead chemicals, labor and electricity, associated with a higher well count from new producing wells drilled or acquired.

Current wording

Lease operating expenses. LOE for the three months ended September 30, 2025, decreased $0.2 million compared to the prior period. LOE per Boe was $2.01 for the three months ended September 30, 2025, which represents a decrease of $0.85 per Boe, or 30%, from the prior period. This decrease in LOE was primarily related to lower fixed and semi-variable well costs, such as water disposal, equipment rentals, repair work, wellhead chemicals, labor and electricity, associated with a higher well count from new producing wells drilled or acquired.

Previous wording

Production and ad valorem taxes. Production and ad valorem taxes for the three months ended June 30, 2025, increased $2.5 million compared to the prior period. Production taxes in Ohio are based on our production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of our proved developed oil and gas properties and vary across the different counties in which we operate. Production taxes in Pennsylvania are assessed on producing wells by imposing an impact fee determined based on the market price for natural gas, which commences on the date the well is initially spud and continues for a period of 15 years.

Current wording

Production and ad valorem taxes. Production and ad valorem taxes for the three months ended September 30, 2025, increased $0.4 million compared to the prior period. Production taxes in Ohio are based on our production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of our proved developed oil and gas properties and vary across the different counties in which we operate. Production taxes in Pennsylvania are assessed on producing wells by imposing an impact fee determined based on the market price for natural gas, which commences on the date the well is initially spud and continues for a period of 15 years.

Previous wording

Depreciation, Depletion and Amortization. For the three months ended June 30, 2025, DD&A expense was $23.7 million, an increase of $3.9 million over the prior period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which increased DD&A expense by $5.1 million, while our average DD&A rate of $7.60 per Boe decreased total DD&A expense by $1.2 million between periods. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, impairments, as well as changes in proved developed and proved undeveloped reserves.

Current wording

Depreciation, Depletion and Amortization. For the three months ended September 30, 2025, DD&A expense was $27.6 million, an increase of $6.5 million over the prior period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods resulting in an average DD&A rate of $8.10 per Boe.

Previous wording

General and Administrative Expenses. G&A expenses for the three months ended June 30, 2025 were $5.3 million compared to $3.5 million for the prior period. This increase was primarily related to increased expenses associated with stock compensation, which totaled $2.3 million during the period and higher public company expenses.

Current wording

General and Administrative Expenses. G&A expenses for the three months ended September 30, 2025 were $8.1 million compared to $2.7 million for the prior period. This increase was primarily related to expenses associated with stock compensation and professional services associated with being a public company.

Previous wording

(2)Based on Netherland, Sewell and Associates Inc. (“NSAI”) found at https://netherlandsewell.com/resources/pricing-data/ and EIA commodity pricing. Weighted average is based on INR’s production in a given month during the course of the calendar year.

Current wording

(2)Based on Netherland, Sewell and Associates Inc. found at https://netherlandsewell.com/resources/pricing-data/ and EIA commodity pricing. Weighted average is based on INR’s production in a given month during the course of the calendar year.

Previous wording

Oil, natural gas, and NGL sales. Total oil, natural gas and NGL net revenues for the six months ended June 30, 2025 increased by $36.7 million, or 31%, compared to the six months ended June 30, 2024. Revenues are a function of oil, natural gas and NGL volumes sold and average commodity prices realized.

Current wording

Oil, natural gas, and NGL sales. Total oil, natural gas and NGL net revenues for the nine months ended September 30, 2025 increased by $46.0 million, or 24%, compared to the nine months ended September 30, 2024. Revenues are a function of oil, natural gas and NGL volumes sold and average commodity prices realized.

Previous wording

Net production volumes for oil, natural gas and NGLs increased 21%, 25% and 34%, respectively, between periods. The oil, natural gas and NGL production volume increase resulted from placing twelve (12) wells on production across our oil weighted assets in the Ohio Utica’s Volatile Oil Window and our natural gas weighted assets in the Marcellus Shale in Pennsylvania during 2024 and 2025. The addition of these wells contributed to the overall increase of 6.3 Mboe/d, or 27%, in production relative to the prior period.

Current wording

Net production volumes for oil increased 16%, natural gas increased 41% and NGLs increased 22%, respectively, between periods. The oil, natural gas and NGL production volume increase resulted from placing 23 wells on production across our oil weighted assets in the Ohio Utica’s Volatile Oil Window and our natural gas weighted assets in the Marcellus Shale in Pennsylvania during the fourth quarter of 2024 and 2025. The addition of these wells contributed to the overall increase of 7.6 MBoe/d, or 31%, in production relative to the prior period.

Previous wording

Average realized sales prices for natural gas increased 76% during the period due to 68% higher average NYMEX gas prices between periods and lower natural gas differentials. Oil prices decreased 14%, driven by lower NYMEX WTI oil prices during the period . NGL prices decreased 8% between periods primarily attributable to lower Mont Belvieu spot prices for plant products in 2025 compared to 2024 and changes in product composition between periods.

Current wording

Average realized natural gas prices rose 59% during the period driven by higher NYMEX prices and improved differentials. Oil prices fell 15%, reflecting lower NYMEX WTI prices. NGL prices decreased 10% due to lower Mont Belvieu spot prices and changes in product mix.

Previous wording

Gathering, processing, and transportation. GP&T for the three months ended June 30, 2025, increased $2.4 million compared to the three months ended June 30, 2024. This increase is attributed to additional wells brought online in Ohio between periods. GP&T per Boe was $4.82 for the three months ended June 30, 2025, which represents a decrease of $0.30 per Boe, or 6%, from the prior period. The per unit decrease was attributable to improved weighted average costs associated with various midstream systems in Ohio and increased development of our natural gas weighted areas within Pennsylvania.

Current wording

Gathering, processing, and transportation. GP&T for the nine months ended September 30, 2025, increased $1.5 million compared to the nine months ended September 30, 2024. This increase was attributed to additional wells brought online in Ohio between periods. GP&T per Boe was $4.51 for the nine months ended September 30, 2025, which represents a decrease of $1.16 per Boe, or 20%, from the prior period. The decrease in per-unit GP&T rate was primarily attributable to increased production volumes in our natural gas-weighted areas of Pennsylvania, which are subject to lower GP&T rates on our internal gathering systems. This shift in volume mix reduced our overall average GP&T rate, as these areas incur fewer processing charges compared to our wet gas-weighted areas in Ohio, where the NGLs require additional processing.

Previous wording

Lease operating. LOE for the six months ended June 30, 2025, increased $(0.2) million compared to the prior period. LOE per Boe was $2.54 for the six months ended June 30, 2025, which represents a decrease of $0.70 per Boe, or 22%, from the prior period. This decrease in LOE was primarily related to a combination of (a) lower fixed and semi-variable well costs, such as water disposal, equipment rentals, repair work, wellhead chemicals, labor and electricity, associated with a higher well count from new producing wells drilled or acquired and (b) higher volumes driven by our Pennsylvania Marcellus development.

Current wording

Lease operating. LOE for the nine months ended September 30, 2025, decreased $0.3 million compared to the prior period. LOE per Boe was $2.34 for the nine months ended September 30, 2025, which represents a decrease of $0.76 per Boe, or 25%, from the prior period. This decrease in LOE was primarily related to a combination of (a) lower fixed and semi-variable well costs, such as water disposal, equipment rentals, repair work, wellhead chemicals, labor and electricity, associated with a higher well count from new producing wells drilled or acquired and (b) higher volumes driven by our Pennsylvania Marcellus development.

Previous wording

Production and ad valorem taxes. Production and ad valorem taxes for the six months ended June 30, 2025, increased $2.8 million compared to the prior period. Production taxes in Ohio are based on our production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of our proved developed oil and gas properties and vary across the different counties in which we operate. Production taxes in Pennsylvania are assessed on producing wells by imposing an impact fee determined based on the market price for natural gas, which commences on the date the well is initially spud and continues for a period of 15 years.

Current wording

Production and ad valorem taxes. Production and ad valorem taxes for the nine months ended September 30, 2025, increased $3.2 million compared to the prior period. Production taxes in Ohio are based on our production at the wellhead, while ad valorem taxes are generally based on the assessed taxable value of our proved developed oil and gas properties and vary across the different counties in which we operate. Production taxes in Pennsylvania are assessed on producing wells by imposing an impact fee determined based on the market price for natural gas, which commences on the date the well is initially spud and continues for a period of 15 years.

Previous wording

Depreciation, Depletion and Amortization. For the six months ended June 30, 2025, DD&A expense was $44.9 million, an increase of $9.6 million over the prior period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which increased DD&A expense by $9.3 million, while our higher average DD&A rate of $8.13 per Boe increased total DD&A expense by $0.6 million between periods. Our DD&A rate can fluctuate as a result of finding and development costs incurred, acquisitions, impairments, as well as changes in proved developed and proved undeveloped reserves.

Current wording

Depreciation, Depletion and Amortization. For the nine months ended September 30, 2025, DD&A expense was $72.5 million, an increase of $16.1 million over the prior period. The primary factor contributing to higher DD&A expense in 2025 was the increase in our overall production volumes between periods, which resulted in an average DD&A rate of $8.12 per Boe.

Previous wording

General and Administrative Expenses. G&A expenses for the six months ended June 30, 2025 were $137.0 million compared to $5.6 million for the prior period. This increase was primarily due to expenses associated with a public company and a one-time stock compensation expense of $126.1 million incurred in connection with the IPO. We also had higher payroll and employee-related costs due to higher headcount associated with the growth of the business.

Current wording

General and Administrative Expenses. G&A expenses for the nine months ended September 30, 2025 were $145.1 million compared to $8.3 million for the prior period. This increase was primarily due to expenses associated with being a public company and a one-time stock compensation expense of $126.1 million incurred in connection with the IPO. We also had higher payroll and employee-related costs due to higher headcount associated with the growth of the business.

Previous wording

We continually evaluate our capital needs and compare them to our capital resources. Our total capital expenditures incurred for development during the three and six months ended June 30, 2025 were $80.6 million and $168.9 million, respectively. For the three months ended June 30, 2025, we incurred $70.4 million in drilling and completion activities, $2.7 million associated with midstream activities and $7.5 million related to land activities. During the six months ended June 30, 2025, we incurred $148.5 million in drilling and completion activities, $6.2 million associated with midstream activities and $14.2 million related to land activities. We funded our capital expenditures for the three and six months ended June 30, 2025 from cash flows from operations and borrowings incurred under the Credit Facility. We expect to fund our 2025 capital expenditures budget through a combination of cash flows from operations and additional borrowings under the Credit Facility. Our ability to utilize cash flows from operations to fund our development program is driven by our oil and gas production, current commodity prices and our commodity hedge positions in place.

Current wording

We continually evaluate our capital needs and compare them to our capital resources. Our total capital expenditures incurred for the three and nine months ended September 30, 2025 were $95.0 million and $263.8 million, respectively. For the three months ended September 30, 2025, we incurred $83.2 million in development activities, including drilling and completion and midstream, and $11.8 million related to land activities. During the nine months ended September 30, 2025, we incurred $237.9 million in development activities and $25.9 million related to land activities. We funded our capital expenditures for the three and nine months ended September 30, 2025 from cash flows from operations and borrowings incurred under the Credit Facility, which we expect to continue for the remainder of 2025. Our ability to utilize cash flows from operations to fund our development program is driven by our oil and gas production, current commodity prices and our commodity hedge positions in place.

Previous wording

In February 2025, we completed our IPO of 15.2 million shares of our Class A common stock at a price to the public of $20.00 per share, resulting in net cash proceeds of $286.5 million after deducting underwriting discounts and commissions. We used all of the net proceeds after paying certain offering expenses to repay borrowings outstanding under the Credit Facility.

Current wording

In February 2025, we completed our IPO of 15.2 million shares of our Class A common stock at a price to the public of $20.00 per share, resulting in net cash proceeds of $286.5 million after deducting underwriting discounts and commissions. The net proceeds from the offering, along with cash from operations, were used to repay outstanding borrowings under the Credit Facility.

Previous wording

Analysis of Cash Flow Changes Between the Six Months Ended June 30, 2025 and 2024

Current wording

Analysis of Cash Flow Changes Between the Nine Months Ended September 30, 2025 and 2024

Previous wording

For the six months ended June 30, 2025, we generated $144.6 million of cash from operating activities, an increase of $47.8 million from the prior period. Cash provided by operating activities increased primarily due to higher production volumes and higher realized prices for natural gas and associated revenues as compared to the prior period. These factors were partially offset by higher operating expenses during the six months ended June 30, 2025 as compared to the prior period. Refer to “Results of Operations” for more information on the impact of volumes and prices on revenues and on fluctuations in our operating costs between periods.

Current wording

For the nine months ended September 30, 2025, we generated $186.7 million of cash from operating activities, an increase of $39.1 million from the prior period. Cash provided by operating activities increased primarily due to higher production volumes and higher realized prices for natural gas and associated revenues as compared to the prior period. These factors were partially offset by higher operating expenses during the nine months ended September 30, 2025 as compared to the prior period. Refer to “Results of Operations” for more information on the impact of volumes and prices on revenues and on fluctuations in our operating costs between periods.

Previous wording

For the six months ended June 30, 2025, we spent $188.3 million on capital expenditures in connection with our drilling and completion activities. We also spent $6.2 million on other property and equipment largely related to midstream activities.

Current wording

For the nine months ended September 30, 2025, we spent $269.1 million on capital expenditures in connection with our development activities. We also spent $10.2 million on other property and equipment largely related to midstream activities.

Previous wording

For the six months ended June 30, 2024, we spent $104.9 million on capital expenditures in connection with our drilling and completion activities. We also spent $3.5 million on other property and equipment.

Current wording

For the nine months ended September 30, 2024, we spent $189.6 million on capital expenditures in connection with our development activities. We also spent $5.2 million on other property and equipment.

Previous wording

For the six months ended June 30, 2025, the change in financing activity was primarily related to the IPO which generated net proceeds of $286.5 million. We used funds from the IPO, along with cash from operating activities to pay down borrowings under the Credit Facility of $307.0 million since the beginning of the year. We have also made borrowings under the Credit Facility of $82.0 million during the period. We also paid approximately $6.8 million of other costs associated with the IPO.

Current wording

For the nine months ended September 30, 2025, the change in financing activity was primarily related to the IPO which generated net proceeds of $286.5 million. We used funds from the IPO, along with cash from operating activities to pay down borrowings under the Credit Facility of $327.0 million since the beginning of the year and paid approximately

Previous wording

For the six months ended June 30, 2024, the change in financing activity was primarily related to borrowing $56.5 million under our prior credit facility and repaying $40.0 million of borrowings.

Current wording

For the nine months ended September 30, 2024, the change in financing activity was primarily related to borrowing $366.9 million under our prior credit facility and repaying $313.1 million of borrowings.

Previous wording

On September 25, 2024, INR Holdings entered into the Credit Facility. The borrowing base is based on the net present value of our oil and gas properties and is subject to semi-annual redeterminations. The Credit Facility is guaranteed by INR

Current wording

On September 25, 2024, INR Holdings entered into the Credit Facility. The borrowing base is based on the net present value of our oil and gas properties and is subject to semi-annual redeterminations. The Credit Facility is guaranteed by INR Holdings’ subsidiaries and is secured by first priority security interests on substantially all of INR Holdings’ consolidated assets.

Previous wording

Borrowings under the Credit Facility may be base rate loans or Secured Overnight Financing Rate (“SOFR”) loans. Base rate loans bear interest at a rate per annum equal to the greater of: (i) the administrative agent bank’s prime rate; (ii) the federal funds effective rate plus 50 basis points; or (iii) the adjusted Term SOFR rate (as defined in the Credit Agreement), plus an additional basis point credit spread, plus an applicable margin ranging from 275 basis points to 375 basis points, depending on the percentage of the borrowing base utilized. SOFR loans bear interest at SOFR plus an applicable margin ranging from 275 basis points to 375 basis points, depending on the percentage of the borrowing base utilized, plus an additional basis point credit spread. We also pay a commitment fee on unused elected commitment amounts under the Credit Facility, which is also dependent on the percentage of the borrowing base utilized. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for SOFR loans. The Credit Facility matures in September 2028. On March 31, 2025, the Company amended the Credit Agreement to, among other things, increase each of the aggregate elected commitment amount and borrowing base from $325,000,000 to $350,000,000. On May 29, 2025, the Company amended the Credit Agreement to, among other things, amend certain provisions relating to hedging requirements and restrictions in the Credit Agreement. As of June 30, 2025, the Company’s reserves supported a $350.0 million borrowing base of which $34.4 million was outstanding, leaving $315.6 million of unused capacity.

Current wording

Borrowings under the Credit Facility may be base rate loans or Secured Overnight Financing Rate (“SOFR”) loans. Base rate loans bear interest at a rate per annum equal to the greater of: (i) the administrative agent bank’s prime rate; (ii) the federal funds effective rate plus 50 basis points; or (iii) the adjusted Term SOFR rate (as defined in the Credit Agreement), plus an additional basis point credit spread, plus an applicable margin ranging from 275 basis points to 375 basis points, depending on the percentage of the borrowing base utilized. SOFR loans bear interest at SOFR plus an applicable margin ranging from 275 basis points to 375 basis points, depending on the percentage of the borrowing base utilized, plus an additional basis point credit spread. We also pay a commitment fee on unused elected commitment amounts under the Credit Facility, which is also dependent on the percentage of the borrowing base utilized. Interest is payable quarterly for base rate loans and at the end of the applicable interest period for SOFR loans. The Credit Facility matures in September 2028. On March 31, 2025, the Company amended the Credit Agreement to, among other things, increase each of the aggregate elected commitment amount and borrowing base from $325.0 million to $350.0 million. On May 29, 2025, the Company amended the Credit Agreement to, among other things, amend certain provisions relating to hedging requirements and restrictions in the Credit Agreement. As of September 30, 2025, the Company’s reserves supported a $350.0 million borrowing base, of which $75.4 million was outstanding, leaving $274.6 million of unused capacity. Effective October 1, 2025, the borrowing base under the Credit Facility was increased from $350.0 million to $375.0 million and the aggregate elected commitment amount was also increased from $350.0 million to $375.0 million.

Previous wording

For the six months ended June 30, 2025 and 2024, total interest expense on the Credit Facility was $3.5 million and $8.1 million, respectively. We did not capitalize any interest expense for the six months ended June 30, 2025 and 2024. For the six months ended June 30, 2025 and 2024, the Company’s weighted-average interest rate was 4.2% and 8.9%, respectively.

Current wording

For the nine months ended September 30, 2025 and 2024, total interest expense on the Credit Facility was $5.3 million and $14.8 million, respectively. We did not capitalize any interest expense for the nine months ended September 30, 2025 and 2024. For the nine months ended September 30, 2025 and 2024, the Company’s weighted-average interest rate was 4.2% and 9.1%, respectively.