v3.26.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Income Tax (Expense) Benefit . The Company’s income tax expense (benefit) consisted of the following:

Tax Expense (Benefit)

Year Ended December 31,

(in thousands)

2025

2024

2023

Current tax expense (benefit)

  ​ ​ ​

  ​

  ​ ​ ​

  ​

  ​ ​ ​

  ​

United States federal income tax

$

(474)

$

567

$

Various state income taxes

 

(529)

 

639

 

(4,169)

Total current income tax expense (benefit)

 

(1,003)

 

1,206

 

(4,169)

Deferred tax expense (benefit)

 

  ​

 

  ​

 

  ​

United States federal income tax

 

38,126

 

(43,445)

 

31,338

Various state taxes

 

(270)

 

(194)

 

2,954

Total deferred income tax expense (benefit)

 

37,856

 

(43,639)

 

34,292

Income tax expense (benefit)

$

36,853

$

(42,433)

$

30,123

Reconciliation of the Effective Tax Rate The following table reconciles the provision for income taxes using the federal statutory rate to the Company’s effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the years ended December 31, 2025, 2024, and 2023. Income tax expense (benefit) attributable to pre-tax income differed from the amounts computed by applying the U.S. federal statutory income tax rate of 21% to pre-tax income by the following:

Year Ended December 31,

 

2025

2024

2023

 

($ in thousands)

Amount

Percent

Amount

Percent

Amount

Percent

 

Income (loss) before income taxes

  ​ ​ ​

$

225,169

  ​ ​ ​

  ​

  ​ ​ ​

$

(175,813)

  ​ ​ ​

  ​

  ​ ​ ​

$

162,146

  ​ ​ ​

  ​

U.S. federal tax at statutory tax rate

$

47,285

 

21.0

%  

$

(36,921)

 

21.0

%  

$

34,051

 

21.0

%

State and local income taxes, net of federal income tax effect

 

(805)

 

(0.4)

%  

 

100

 

(0.1)

%  

 

(1,237)

 

(0.8)

%

Tax credits

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Investment tax credit

 

 

%  

 

(1,010)

 

0.6

%  

 

 

%

Marginal well credit

 

(10,226)

 

(4.5)

%  

 

(7,644)

 

4.3

%  

 

(94)

 

(0.1)

%

Nontaxable or nondeductible items

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

 

  ​

Section 162(m) limitation

 

1,756

 

0.8

%  

 

8,881

 

(5.1)

%  

 

 

%

Excess tax benefits from vesting of restricted shares

 

(167)

 

(0.1)

%  

 

(3,829)

 

2.2

%  

 

(373)

 

(0.2)

%

Section 45Q tax credits

 

(855)

 

(0.4)

%  

 

(2,944)

 

1.7

%  

 

(147)

 

(0.1)

%

Other, net

 

(201)

 

(0.1)

%  

 

(967)

 

0.6

%  

 

89

 

0.1

%

Other adjustments

 

66

 

%  

 

1,901

 

(1.1)

%  

 

(2,166)

 

(1.3)

%

Income tax expense (benefit)

$

36,853

 

16.4

%  

$

(42,433)

 

24.1

%  

$

30,123

 

18.6

%

Schedule of Cash Flow, Supplemental Disclosures Income taxes paid (net of refunds) consisted of the following for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31,

(in thousands)

2025

2024

2023

Federal

  ​ ​ ​

$

  ​ ​ ​

$

  ​ ​ ​

$

State

 

232

 

6

 

1,545

Total taxes paid (net of refunds)

$

232

$

6

$

1,545

Schedule of Deferred Income Tax Assets and Liabilities The tax effect of the temporary differences giving rise to net deferred tax assets and liabilities is as follows:

Recognized Deferred Income Tax Assets and Liabilities

December 31,

(in thousands)

2025

2024

Deferred tax assets

  ​ ​ ​

  ​

  ​ ​ ​

  ​

Fair value of derivative financial instruments

$

$

9,018

Asset retirement obligations

 

51,528

 

46,240

Equity-based compensation

 

1,649

 

494

Contingent consideration

 

353

 

4,597

Interest expense carryforward

 

34,836

 

33,029

Net operating loss carryforward

 

67,693

 

35,826

Accrued bonuses

 

5,226

 

4,218

Marginal well credit

 

23,669

 

13,180

Other

 

4,441

 

7,373

Total deferred tax asset

 

189,395

 

153,975

Deferred tax liabilities

 

  ​

 

  ​

Property and equipment

 

(243,261)

 

(193,978)

Investment in joint venture

 

(56,344)

 

(50,287)

Fair value of derivative financial instruments

 

(15,240)

 

Other

 

(3,389)

 

(2,460)

Total deferred tax liability

 

(318,234)

 

(246,725)

Deferred tax liability, net

$

(128,839)

$

(92,750)