Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2025 |
| Income Tax Disclosure [Abstract] |
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| 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 |
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| 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 | % |
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| 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 |
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| 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) |
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