INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes included the following components:


(in thousands)	2025		2024		2023
Current:
Federal	$	—	$	—	$	—
State	200		(135)		322
	$	200	$	(135)	$	322
Deferred:
Federal	$	(245)	$	124,330	$	—
State	(456)		22,483		—
	$	(701)	$	146,813	$	—
Provision (benefit) for income taxes	$	(501)	$	146,678	$	322

Schedule of Effective Income Tax Rate Reconciliation

The following reconciles the provision for income taxes included in the consolidated statements of operations with the provision which would result from application of the statutory federal tax rate to pre-tax financial income for the year ended December 31, 2025 in accordance with ASU 2023-09:


(in thousands)	2025		%
Pretax Income	$	(2,407)

US Federal Statutory Tax Rate	(505)		21%
State and Local Income Taxes, Net of Federal Benefit	(144)		6%
Nontaxable/Nondeductible Items
Limitation on Executive Compensation	2,271		(94)%
Share-Based Compensation	(691)		29%
Noncontrolling Interest	(847)		35%
Other Adjustments
Deferred Tax Adjustment	(611)		25%
Change in Outside Basis	28		(1)%
Other Tax Expense	(2)		—%
Total Tax Expense (Benefit)	$	(501)	21%

The Company’s state and local income tax benefit consists of operations in Colorado, North Dakota, New Mexico, Oklahoma, and Texas.

The following reconciles the provision for income taxes included in the consolidated statement of operations with the provision which would result from application of the statutory federal tax rate to pre-tax financial income for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09:


(in thousands)	2024			2023
Income (loss) before income taxes	$	33,503		$	(38,625)
Increase (decrease) resulting from:
Pretax income at federal statutory rates	7,036			(8,111)
State income taxes, net of federal income tax effect	(804)			322
Corporate reorganization	152,992			—
Transaction costs	1,086			—
Minority interests in Summit Midstream Partners, LP	1,222			—
Removal of noncontrolling interests	(3,304)			—
Removal of nontaxable income	(11,550)			8,111
Provision (benefit) for income taxes	$	146,678		$	322
Effective Tax Rate	438		%	(1)		%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax balances as of December 31, 2025 and 2024 were as follows:


(in thousands)	2025		2024
Deferred tax liabilities:
Investment in Partnership	$	(117,043)	$	(86,227)
Total deferred tax liabilities	$	(117,043)	$	(86,227)

Deferred tax assets:
Interest expense	9,830		6,001
Net operating loss carryforward	33,321		15,683
Other	257		1,217
Subtotal	$	43,408	$	22,901
Valuation allowance	—		—
Total deferred tax assets	$	43,408	$	22,901
Net deferred tax liability	$	(73,635)	$	(63,326)