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Income Taxes
 3 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

 

The income tax provision consists of the following for the three months ended June 30, 2025 and 2024:

 

   2025   2024 
   Three Months Ended 
   June 30 
   2025   2024 
Current income tax expense:          
Federal  $115,316   $11,905 
State   26,600    20,066 
Total current income tax expense   141,916    31,971 
Deferred income tax (benefit) expense:          
Federal   (37,536)   74,615 
State   (1,149)   - 
Total deferred income tax (benefit) expense   (38,685)   74,615 
Total income tax expense:  $103,231   $106,586 

 

 

A reconciliation of the provision for income taxes to income taxes computed using the federal statutory rate for the three months ended June 30 follows:

 

   2025   2024 
Tax expense at federal statutory rate (1)  $72,488   $83,501 
Statutory depletion carryforward   1,566    10,500 
Change in valuation allowance   -    - 
Permanent differences   9,312    (3,267)
State income expense, net of federal benefit   21,014    15,852 
Other   (1,149)   - 
Total income tax   103,231    106,586 
Effective income tax rate (1)   29.9%   26.8%

 

  (1) The federal statutory rate was 21% for three months ended June 30, 2025 and 2024.

 

Total income tax expense from continuing operations for the three months ended June 30, 2025 and 2024 differed from amounts computed by applying the U.S. federal statutory tax rate to pre-tax income primarily due to state income taxes, net of federal benefit, and the impact of permanent differences between book and taxable income.

 

On July 4, 2025, the “One Big Beautiful Bill” (“OBBB”) was enacted. The OBBB is a significant piece of legislation that includes significant changes to federal tax policy, environmental funding, and energy development regulations. Key provisions relevant to the crude oil and natural gas industry include (i) tax policy changes that extend and expand components of the 2017 Tax Cuts and Jobs Act and (ii) the introduction of fee and royalty-related provisions aimed at reducing financial and administrative burdens on domestic energy producers. The Company is currently evaluating the full impact of the OBBB on the Company’s condensed consolidated balance sheets, condensed consolidated statements of operations and condensed consolidated statements of cash flows in its condensed consolidated financial statements.