v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of (Benefit) Provision for Income Taxes
The Company’s income tax (benefit) provision consisted of the following components (in thousands):
Year Ended December 31,
202520242023
Current
Federal$— $— $— 
State— — — 
— — — 
Deferred
Federal(4,755)(19,370)12,002 
State(780)(2,862)1,958 
(5,535)(22,232)13,960 
Total (benefit) provision $(5,535)$(22,232)$13,960 
Schedule of Reconciliation of Provision (Benefit) for Income Taxes at Statutory Federal Tax Rate
A reconciliation of the (benefit) provision for income taxes at the statutory federal tax rate to the Company’s actual income tax (benefit) provision is as follows (in thousands):
Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023
$ AmountPercent$ AmountPercent$ AmountPercent
Provision for income taxes at U.S. Federal statutory rate$13,580 21.0 %$8,559 21.0 %$15,712 21.0 %
State and local income taxes, net of federal benefit (1)(780)(1.2)%(2,862)(7.0)%1,958 2.6 %
Effect of changes in tax laws or rates enacted in the current period— — %— — %— — %
Changes in the valuation allowance(18,380)(28.4)%(27,930)(68.5)%(3,699)(4.9)%
Nontaxable or nondeductible items45 0.1 %1 — %(69)(0.1)%
Other adjustments— — %— — %58 0.1 %
Total$(5,535)(8.5)%$(22,232)(54.5)%$13,960 18.7%
____________________
(1) The state that contributes to the majority (greater than 50%) of the tax effect in this category is Oklahoma.
Schedule of Deferred Tax Assets and Liabilities
Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
 Year Ended December 31,
20252024
Deferred tax liabilities
Investments (1)$— $— 
Derivative contracts— — 
Total deferred tax liabilities— — 
Deferred tax assets
Property, plant and equipment50,421 57,061 
Net operating loss carryforwards363,807 373,506 
Tax credits and other carryforwards33,851 33,851 
Asset retirement obligations13,091 13,327 
Investments (1)98 97 
Other1,935 1,454 
Total deferred tax assets463,203 479,296 
Valuation allowance(384,867)(406,495)
Net deferred tax asset$78,336 $72,801 
____________________
(1) Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts.