v3.26.3
Income Taxes
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Provision for income taxes$(573)$715 $1,820 $3,916 

The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $243 and $270 were recorded in income tax expense for the three months ended September 30, 2026 and 2025, respectively. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $525 and $958 were recorded in income tax expense for the nine months ended September 30, 2026 and 2025, respectively. Deferred taxes applicable to the Texas margin tax relating to the operation of the Partnership are immaterial.

MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (the "Taxable Subsidiary"). Total income tax expense (benefit) of $(816) and $445, related to the operation of the Taxable Subsidiary, for the three months ended September 30, 2026 and 2025, resulted in an effective income tax rate ("ETR") of (123.25)% and 18.68%, respectively. Total income tax expense of $1,295 and $2,958, related to the operation of the Taxable Subsidiary, for the nine months ended September 30, 2026 and 2025, resulted in an effective income tax rate of 29.40% and 40.38%, respectively.

    A current federal income tax expense (benefit) of $(645) and $(520), related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2026 and 2025, respectively. A current federal income tax expense of $600 and $1,715, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2026 and 2025, respectively. A current state income tax expense of $111 and $119, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2026 and 2025, respectively. A current state income tax expense of $438 and $552, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2026 and 2025, respectively.

With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

    A deferred tax expense (benefit) related to the MTI temporary differences of $(282) and $846 was recorded for the three months ended September 30, 2026 and 2025, respectively. A deferred tax expense related to the MTI temporary differences of $257 and $691 was recorded for the nine months ended September 30, 2026 and 2025, respectively. A net deferred tax asset of $8,769 and $9,026, related to the cumulative book and tax temporary differences, existed at September 30, 2026 and December 31, 2025, respectively.

Consolidated income taxes paid, net of refunds, for the Partnership and the Taxable Subsidiary were $956 and $724, for the three months ended September 30, 2026 and 2025, respectively, and $3,142 and $3,186 for the nine months ended September 30, 2026 and 2025, respectively.

All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.