XML 45 R18.htm IDEA: XBRL DOCUMENT v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the Company's consolidated provision for income taxes from operations are as follows:
Three Months Ended March 31,
20262025
(In thousands)
Current income tax expense:
Federal$770 $9,124 
State250 941 
Total current income tax expense
$1,020 $10,065 
Deferred income tax benefit:
Federal$(22,374)$(1,800)
State(934)(26)
Total deferred income tax benefit
$(23,308)$(1,826)
Total income tax (benefit) expense
$(22,288)$8,239 
Beginning in the first quarter of 2026, the Company elected to change its interim income tax reporting methodology from the income statement method to the balance sheet method and will apply this method consistently for the remainder of the fiscal year. The change was made because significant unrealized losses on derivative instruments recognized during the three months ended March 31, 2026 are expected to reverse in future periods, and use of the income statement method would have caused a disproportionate amount of the related tax benefit to be recognized in the first quarter. Under the balance sheet method, interim income tax expense is based on changes in deferred tax assets and liabilities during the period, which the Company believes more appropriately reflects the allocation of the annual effective tax rate between current and deferred income tax expense. This change affects only the allocation of the interim income tax expense between current and deferred income tax expense and does not affect the Company’s full-year effective tax rate or total quarterly income tax expense.
A reconciliation of the statutory federal income tax rate to the Company's effective income tax rate is as follows:
Three Months Ended March 31,
20262025
AmountPercentAmountPercent
(In thousands, except percentages)
U.S federal statutory tax rate
$(19,472)21.0 %$7,248 21.0 %
State income taxes, net of federal income tax effect(1)
(2,209)2.4 %723 2.1 %
Nondeductible items:
Nondeductible compensation
(559)0.6 %269 0.8 %
Stock-based compensation
(13)— %(5)— %
Other(35)— %4 — %
Effective income tax rate$(22,288)24.0 %$8,239 23.9 %
_____________________
(1)State taxes in New Mexico and Texas make up the tax effect in this category.
Cash paid for income taxes was as follows:
Three Months Ended March 31,
20262025
(In thousands)
Total federal
$10,000 $9,000 
Total state and local
— — 
Total income taxes paid
$10,000 $9,000 
The Company's federal income tax returns for the years subsequent to December 31, 2021, 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, 2020. 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 reserves for uncertain tax positions.