Income Taxes (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Income Tax Benefit (Provision)

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,
	2026		2025		2026		2025
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)

Schedule of Reconciliation of Benefit from (Provision for) Income Taxes

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,
	2026					2025					2026					2025
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 tax	342			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.

Schedule of Components of Deferred Tax Assets and Liabilities

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 equipment	187		172
Other	111		111
Total deferred tax liabilities	807		778
Deferred tax assets:
Net operating loss carryovers (2)	73		73
Temporary differences related to Texas Margin Tax	3		3
Total deferred tax assets	76		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.