Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 13 – Income Taxes The Company is a corporation and is subject to U.S. federal, state and local income taxes. The effective combined U.S. federal and state income tax rate for the three and six months ended June 30, 2026, was 44.9% and 22.4%, respectively. The effective combined U.S. federal and state income tax rate for the three and six months ended June 30, 2025, was 23.2% and (16.5)%, respectively. During the three and six months ended June 30, 2026, we recognized an income tax benefit of $20.4 million and $20.9 million, respectively. During the three and six months ended June 30, 2025, we recognized an income tax benefit of $1.7 million and income tax expense of $0.6 million, respectively. Total income tax expense for the three and six months ended June 30, 2026 differed from amounts computed by applying the U.S. federal statutory tax rate of 21% to pre-tax book loss for the period primarily due to the benefit of percentage depletion in excess of basis which was offset by the unfavorable impact of non-deductible Section 162(m) compensation. Total income tax expense for the three and six months ended June 30, 2025 differed from amounts computed by applying the U.S. federal statutory tax rate of 21% to pre-tax book income for the period due to the Moser Acquisition which resulted in inherently facilitative transaction costs that were capitalized for tax purposes resulting in an unfavorable impact to the effective tax rate. The tax rate for the period was also impacted by state taxes, the benefit of percentage depletion in excess of basis, and non-deductible Section 162(m) compensation. The Company’s affiliate, Hi-Crush Inc, is currently under an Internal Revenue Service examination for the federal income tax year ended December 31, 2023. The examination is in its early stages and no findings have been proposed as of the date of this filing. During the second quarter of 2026, the Company identified an error in its income tax provision calculation for the three months ended March 31, 2026 that resulted in an understatement of the recorded income tax benefit by approximately $9.6 million for the three months ended March 31, 2026, which overstated net loss by the same amount and overstated net loss per share by $0.08. This error was corrected as part of the income tax benefit recognized for the three months ended June 30, 2026. |