v3.26.3
Income Taxes
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes
Note 15. Income Taxes
Income taxes are accounted for under the asset-and-liability method. 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 bases and operating loss and tax credit carryforwards. 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. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We did not rely on any uncertain tax positions in recording our income tax-related amounts during the three and nine months ended September 30, 2026 and 2025.
Our federal and state income tax benefit (provision) is summarized below:
For the Three Months
Ended September 30,		For the Nine Months
Ended September 30,
2026202520262025
Current portion of income tax provision:
Federal$– $(1)$(1)$(2)
State(6)(3)(20)(26)
Total current portion(6)(4)(21)(28)
Deferred portion of income tax provision:
Federal(6)(4)(15)(12)
State(5)21 (15)13 
Total deferred portion(11)17 (30)1 
Total benefit from (provision for) income taxes$(17)$13 $(51)$(27)
A reconciliation of the benefit from (provision for) income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:
For the Three Months
Ended September 30,		For the Nine Months
Ended September 30,
2026202520262025
Pre-Tax Net Book Income (“NBI”)$1,655 $1,343 $5,041 $4,243 
Income tax provision at the U.S. federal income tax rate
(348)(21.0)%(282)(21.0)%(1,059)(21.0)%(891)(21.0)%
Reduction (increase) in provision for income taxes resulting from:
Partnership income not subject to federal income tax342 20.7 %277 20.6 %1,043 20.7 %877 20.7 %
Texas Margin Tax (1)(11)(0.7)%18 1.3 %(34)(0.7)%(12)(0.3)%
Other– – %– – %(1)– %(1)– %
Benefit from (provision for) income taxes $(17)(1.0)%$13 1.0 %$(51)(1.0)%$(27)(0.6)%
Effective income tax rate(1.0)%1.0 %(1.0)%(0.6)%
(1)Although the Texas Margin Tax is not considered a state income tax, it has the characteristics of an income tax since it is determined by applying a tax rate to a base that considers our Texas-sourced revenues and expenses.
The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated:
September 30,
2026		December 31,
2025
Deferred tax liabilities:
Attributable to investment in OTA (1)$509 $495 
Attributable to property, plant and equipment187 172 
Other111 111 
Total deferred tax liabilities807 778 
Deferred tax assets:
Net operating loss carryovers (2)73 73 
Temporary differences related to Texas Margin Tax3 3 
Total deferred tax assets76 76 
Total net deferred tax liabilities$731 $702 
(1)Represents the deferred tax liability balance held by our wholly owned subsidiary, OTA Holdings, Inc. (“OTA”), which we acquired in March 2020.
(2)The loss amount presented as of September 30, 2026 has an indefinite carryover period. All losses are subject to limitations on their utilization.