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Income Taxes
 6 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

7. Income Taxes

 

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.

 

 

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

 

   2025   2024 
   Six Months Ended 
   September 30 
   2025   2024 
Current income tax expense:        
Federal  $232,079   $51,692 
State   52,403    46,986 
Total current income tax expense   284,482    98,678 
Deferred income tax (benefit) expense:        
Federal   (123,298)   119,661 
State   282    - 
Total deferred income tax (benefit) expense   (123,016)   119,661 
Total income tax expense:  $161,466   $218,339 

 

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

 

   2025   2024 
Tax expense at federal statutory rate (1)  $152,654   $173,581 
Statutory depletion carryforward   (49,319)   - 
Change in valuation allowance   -    - 
Permanent differences   16,450    7,639 
State income expense, net of federal benefit   41,621    37,119 
Other   60    - 
Total income tax   161,466    218,339 
Effective income tax rate   22.2%   26.4%

 

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

 

Total income tax expense from continuing operations for the six months ended September 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.