XML 23 R13.htm IDEA: XBRL DOCUMENT v3.25.4
Income Taxes
 9 Months Ended
Dec. 31, 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 nine months ended December 31, 2025 and 2024:

 

   2025   2024 
   Nine Months Ended 
   December 31 
   2025   2024 
Current income tax expense:          
Federal  $213,320   $322,708 
State   39,335    33,012 
Total current income tax expense   252,655    355,720 
Deferred income tax benefit:          
Federal   (22,294)   (94,746)
State   (4,789)   (60,940)
Total deferred income tax benefit   (27,083)   (155,686)
Total income tax expense:  $225,572   $200,034 

 

 

The following table summarizes our income tax expense and effective income tax rate for the nine months ended December 31 follows:

 

   2025   2024 
Tax expense at federal statutory rate (1)  $176,668   $268,255 
Statutory depletion carryforward   -    - 
Change in valuation allowance   -    - 
Permanent differences   22,619    19,833 
State income expense (benefit), net of federal benefit   27,291    (22,063)
Other   (1,006)   (65,991)
Total income tax   225,572    200,034 
Effective income tax rate   26.8%   15.7%

 

(1)The federal statutory rate was 21% for nine months ended December 31, 2025 and 2024.

 

Total income tax expense from continuing operations for the nine months ended December 31, 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.