XML 158 R47.htm IDEA: XBRL DOCUMENT v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense on the Consolidated Statements of Operations for the years ended December 31 was as follows:
202520242023
(In thousands)
Current:
Federal$21,690 $51,899 $45,746 
State8,955 17,767 18,296 
30,645 69,666 64,042 
Deferred:
Income taxes:
Federal19,032 (1,082)263 
State6,459 732 (1,869)
25,491 (350)(1,606)
Total income tax expense$56,136 $69,316 $62,436 
Schedule of Deferred Tax Assets and Liabilities
Components of deferred tax assets and deferred tax liabilities at December 31 were as follows:
20252024
(In thousands)
Deferred tax assets:
Deferred compensation/compensation related$20,750 $23,751 
Asset retirement obligations20,506 15,420 
Operating lease liabilities13,317 12,725 
Accrued pension costs9,958 9,528 
Capitalized inventory overheads9,951 8,359 
Net operating loss
3,318 5,528 
Section 174 costs
— 4,051 
Other7,053 4,645 
Total deferred tax assets$84,853 $84,007 
20252024
(In thousands)
Deferred tax liabilities:
Basis differences on property, plant and equipment$317,809 $209,488 
Intangible assets17,347 13,574 
Operating lease right-of-use-assets13,317 12,725 
Other21,269 17,419 
Total deferred tax liabilities369,742 253,206 
Valuation allowance3,028 5,528 
Net deferred income tax liability$(287,917)$(174,727)
Schedule of Net Deferred Income Tax Liability
The following table reconciles the change in the net deferred income tax liability from December 31, 2024, to December 31, 2025, to deferred income tax expense:
20252024
(In thousands)
Change in net deferred income tax liability from the preceding table$113,190 $185 
Deferred taxes established due to acquisition
(88,031)— 
Deferred taxes associated with other comprehensive loss332 (670)
Other
— 135 
Deferred income tax expense for the period$25,491 $(350)
Schedule of Effective Income Tax Rate Reconciliation
Total income tax expense differs from the amount computed by applying the statutory federal income tax rate to income before taxes. The reasons for this difference were as follows:
Years ended December 31,202520242023
Amount%Amount%Amount%
(Dollars in thousands)
Computed tax at federal statutory rate$44,770 21.0 $56,909 21.0 $51,515 21.0 
Increases (reductions) resulting from:
State income taxes, net of federal income tax*
12,189 5.7 14,559 5.4 12,977 5.3 
Depletion allowance(2,359)(1.1)(2,767)(1.0)(2,808)(1.1)
Nondeductible expenses
2,041 1.0 1,258 0.5 2,299 0.9 
Tax credits
(549)(0.3)(720)(0.3)(1,722)(0.7)
Unrecognized tax benefits
44 — 77 — 175 0.1 
Total income tax expense$56,136 26.3 $69,316 25.6 $62,436 25.5 
__________________
*State taxes in Oregon and California for 2025; and Oregon, Minnesota, and California for 2024 and 2023 constitute the majority (greater than 50%) of the tax effect within this category.
Schedule of Cash Flow Information
Cash expenditures for interest and income taxes for the years ended December 31 were as follows:
202520242023
(In thousands)
Interest paid, net
$78,780 $56,916 $54,925 
Income taxes paid, net$41,765 $62,181 $76,689 
Noncash investing and financing transactions at December 31 were as follows:
202520242023
(In thousands)
Property, plant and equipment additions in accounts payable$25,840 $22,167 $12,672 
Right-of-use assets obtained in exchange for new operating lease liabilities$15,811 $20,777 $14,967 
Equity contribution from Centennial related to the Separation
$— $— $64,724 
Equity contribution to MDU Resources for asset/liability transfers related to the Separation
$— $— $(1,537)
MDU Resources’ stock issued in connection with a business combination
$— $— $383 
Accrual for holdback payment related to a business combination$5,686 $— $— 
The following table provides cash taxes paid (net of refunds) for the year end December 31 were as follows:
Jurisdiction20252024
(In thousands)
Federal$26,500 $40,736 
Oregon6,350 7,229 
Minnesota
1,300 4,396 
Other States/Cities7,615 9,820 
Total$41,765 $62,181