INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2025 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income Tax Provision (Benefit) |
The components of income tax expense and benefits were as follows (in thousands):
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Year Ended December 31, 2025 |
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Year Ended December 31, 2024 |
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Year Ended December 31, 2023 |
| Current: |
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| State |
$ |
— |
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|
$ |
— |
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|
$ |
— |
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| Federal |
— |
|
|
— |
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|
— |
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| Deferred: |
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|
|
|
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| State |
71 |
|
|
11,747 |
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|
(26,704) |
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| Federal |
115,424 |
|
|
(67,824) |
|
|
(498,452) |
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| Total income tax expense (benefit) provision |
$ |
115,495 |
|
|
$ |
(56,077) |
|
|
$ |
(525,156) |
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|
| Schedule of Reconciliation to the Statutory Federal Income Tax |
A reconciliation of the statutory federal income tax amount to the recorded expense (benefit) follows (in thousands):
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Year Ended December 31, 2025 |
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Year Ended December 31, 2024 |
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Year Ended December 31, 2023 |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
|
Amount |
|
Percent |
| Income (loss) before federal income taxes |
$ |
543,305 |
|
|
|
|
$ |
(317,463) |
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|
|
$ |
945,760 |
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|
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| U.S. federal statutory tax rate |
114,094 |
|
|
21.00 |
% |
|
(66,668) |
|
|
21.00 |
% |
|
198,610 |
|
|
21.00 |
% |
State and local income taxes, net of federal income tax effect(1)
|
(479) |
|
|
(0.09) |
% |
|
8,939 |
|
|
(2.82) |
% |
|
(26,018) |
|
|
(2.75) |
% |
| Valuation allowances |
(56) |
|
|
(0.01) |
% |
|
(259) |
|
|
0.08 |
% |
|
(699,730) |
|
|
(73.99) |
% |
| Nontaxable or nondeductible items |
1,745 |
|
|
0.32 |
% |
|
1,857 |
|
|
(0.58) |
% |
|
1,982 |
|
|
0.21 |
% |
| Tax credits |
191 |
|
|
0.04 |
% |
|
— |
|
|
— |
% |
|
— |
|
|
— |
% |
| Other adjustments |
— |
|
|
— |
% |
|
54 |
|
|
(0.02) |
% |
|
— |
|
|
— |
% |
| Income tax expense (benefit) recorded |
$ |
115,495 |
|
|
21.26 |
% |
|
$ |
(56,077) |
|
|
17.66 |
% |
|
$ |
(525,156) |
|
|
(55.53) |
% |
_____________________
(1) For 2025, 2024 and 2023, state taxes in Oklahoma contributed to the majority (greater than 50 percent) of the tax effect in this category.
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| Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2025 and 2024 are estimated as follows (in thousands):
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Year Ended December 31, 2025 |
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Year Ended December 31, 2024 |
| Deferred tax assets: |
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| Net operating loss carryforward and tax credits |
$ |
330,805 |
|
|
$ |
345,770 |
|
| Oil and gas property basis difference |
123,496 |
|
|
194,412 |
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| Investment in pass through entities |
65,385 |
|
|
65,210 |
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| Stock-based compensation expense |
2,223 |
|
|
1,821 |
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| Change in fair value of derivative instruments |
— |
|
|
6,106 |
|
| Other assets |
33,491 |
|
|
56,849 |
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| Total deferred tax assets |
555,400 |
|
|
670,168 |
|
| Valuation allowance for deferred tax assets |
(82,637) |
|
|
(83,695) |
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| Deferred tax assets, net of valuation allowance |
472,763 |
|
|
586,473 |
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| Deferred tax liabilities: |
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| Change in fair value of derivative instruments |
6,232 |
|
|
3,401 |
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| Right of use asset |
118 |
|
|
1,281 |
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| Other |
675 |
|
|
558 |
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| Total deferred tax liabilities |
7,025 |
|
|
5,240 |
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| Net deferred tax asset |
$ |
465,738 |
|
|
$ |
581,233 |
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