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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the Company's consolidated provision for income taxes are as follows:
Year Ended December 31,
20242023
(In thousands)
Current income tax expense:
Federal$22,814 $5,852 
State2,058 1,020 
Total current income tax expense$24,872 $6,872 
Deferred income tax expense:
Federal$1,666 $24,305 
State1,536 3,284 
Total deferred income tax expense
$3,202 $27,589 
Total income tax expense
$28,074 $34,461 
Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax basis of our assets and liabilities. The Company's net deferred tax position is as follows:
Year Ended December 31,
20242023
(In thousands)
Intangibles$146 $163 
Share-based compensation 1,129 772 
Interest expense limitation19 3,861 
Accruals and other 1,893 1,123 
Net operating loss2,639 2,700 
Total deferred tax assets$5,826 $8,619 
Oil and natural gas assets(80,972)(79,761)
Other fixed assets(628)(661)
Unrealized gain on derivatives(773)(1,542)
Total deferred tax liabilities$(82,373)$(81,964)
Net deferred tax liabilities$(76,547)$(73,345)
A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows:
Year Ended December 31,
20242023
Tax at statutory rate21.0 %21.0 %
Nondeductible compensation0.7 %0.7 %
Share-based compensation(0.1)%(0.5)%
State income taxes, net of federal benefit2.4 %2.4 %
Effective income tax rate24.0 %23.6 %
The Company's federal income tax returns for the years subsequent to December 31, 2020 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2019. The Company currently believes that all other significant filing positions are highly certain and that all of our other significant income tax positions and deductions would be sustained under audit or the final resolution would not have a material effect on our consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions.
Section 382 of the Internal Revenue Code limits the utilization of U.S. net operating loss ("NOL") carryforwards following a change in control. The Merger caused a stock ownership change for purposes of Section 382 which is subject to an approximate annual limit. The Company has federal NOLs subject to the annual Section 382 limit of $12.6 million of which $3.8 million will expire beginning in 2025 through 2037 with the remaining $8.8 million of the NOLs not expiring. Additionally, the Company has no federal NOLs generated after the Merger that are not limited by Section 382 and are not subject to expiration. We believe it is more likely than not the tax benefit of these NOLs will be fully realized, as such no valuation allowance has been recorded. The deferred tax assets for the net operating losses, along with the other deferred tax assets as shown in the table above, are presented net with deferred tax liabilities, which primarily consist of book and tax depreciation, depletion and amortization differences.