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Income Taxes | 9 Months Ended
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Sep. 30, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Provision for income taxes | $ | 715 |  |  | $ | 1,066 |  |  | $ | 3,916 |  |  | $ | 3,634 |
The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $270 and $270 were recorded in income tax expense for the three months ended September 30, 2025 and 2024, respectively. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $958 and $820 were recorded in income tax expense for the nine months ended September 30, 2025 and 2024, respectively. Deferred taxes applicable to the Texas margin tax relating to the operation of the Partnership are immaterial. MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (the "Taxable Subsidiary"). Total income tax expense of $445 and $796, related to the operation of the Taxable Subsidiary, for the three months ended September 30, 2025 and 2024, resulted in an effective income tax rate ("ETR") of 18.68% and 33.36%, respectively. Total income tax expense of $2,958 and $2,814, related to the operation of the Taxable Subsidiary, for the nine months ended September 30, 2025 and 2024, resulted in an ETR of 40.38% and 25.17%, respectively. On July 4, 2025, Congress enacted the One Big Beautiful Bill Act ("OBBBA"). The new legislation resulted in a discrete deferred income tax expense of $570 related to the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025 and the favorable provision that modifies the deductibility of interest expense by excluding amortization and depreciation from the Adjusted Taxable Income (ATI) calculation for purposes of Section 163j. The decrease in the provision for income taxes and the ETR for the income taxes during the three months ended September 30, 2025, compared to the same period in 2024, was primarily due to a decrease in permanent differences and a reduction in estimated current taxable income resulting from favorable impacts of the OBBBA legislation, offset in part by the one-time discrete income tax expense for the revaluation of deferred tax assets and liabilities as a result of the enactment of the OBBBA. The increase in the provision for income taxes and the ETR for the income taxes during the nine months ended September 30, 2025, compared to the same period in 2024, was primarily due to an increase in permanent differences and the one-time discrete income tax expense for the revaluation of deferred tax assets and liabilities as a result of the enactment of the OBBBA, offset in part by a reduction in current estimated taxable income resulting from favorable impacts of the OBBBA legislation. A current federal income tax expense (benefit) of $(520) and $471, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2025 and 2024, respectively. A current federal income tax expense of $1,715 and $2,047, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2025 and 2024, respectively. A current state income tax expense of $119 and $194, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2025 and 2024, respectively. A current state income tax expense of $552 and $610, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2025 and 2024, respectively. With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A deferred tax expense related to the MTI temporary differences of $846 and $131 was recorded for the three months ended September 30, 2025 and 2024, respectively. A deferred tax expense related to the MTI temporary differences of $691 and $157 was recorded for the nine months ended September 30, 2025 and 2024, respectively. A net deferred tax asset of $9,255 and $9,946, related to the cumulative book and tax temporary differences, existed at September 30, 2025 and December 31, 2024, respectively. All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.

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