v3.26.3
Income Taxes (Notes)
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
8.  Income Taxes

Income tax expense included on our accompanying consolidated statements of income is as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
(In millions, except percentages)
Income tax expense$190 $185 $749 $548 
Effective tax rate19.4 %22.0 %21.8 %20.4 %

The effective tax rate for the three months ended September 30, 2026 is lower than the statutory federal rate of 21% primarily due to (i) an adjustment to our deferred tax liability as a result of the reduction in the state effective tax rates; (ii) tax benefits from equity based compensation; and (iii) dividend-received deductions from our investments in Citrus, NGPL Holdings LLC, and PPL, partially offset by state taxes.

The effective tax rate for the nine months ended September 30, 2026 is higher than the statutory federal rate of 21% primarily due to (i) an adjustment to Texas Margin Tax as a result of the enactment of bonus depreciation provisions; and (ii) state income taxes, partially offset by (i) an adjustment to our deferred tax liability as a result of the reduction in the state effective tax rates; (ii) tax benefits from equity based compensation; and (iii) dividend-received deductions from our investments in Citrus, NGPL Holdings LLC, and PPL.

The effective tax rate for the three months ended September 30, 2025 is higher than the statutory federal tax rate of 21% primarily due to state income taxes, partially offset by dividend-received deductions from our investments in Citrus, NGPL Holdings LLC, and PPL.
The effective tax rate for the nine months ended September 30, 2025 is lower than the statutory federal tax rate of 21% primarily due to (i) the recognition of investment tax credits generated by a biogas project; (ii) an adjustment to our deferred tax liability as a result of modified income allocations; and (iii) dividend-received deductions from our investments in Citrus, NGPL Holdings LLC, and PPL, partially offset by state income taxes.