Income Taxes

9 Months Ended

Sep. 30, 2024

Income Taxes

Income Taxes

10. Income Taxes

The Company's effective tax rate for nine months ended September 30, 2024 is based on its estimated full year effective tax rate, adjusted for discrete items. Due to the pretax loss incurred during the quarter and the related impact to the Company’s estimated full year tax rate, the effective tax rate for the three and nine months ended September 30, 2024 was 50.8% and (1.4)%, respectively. The effective tax rates for the three and nine months ended September 30, 2024 differs from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion. The effective tax rate for nine months ended September 30, 2024 also includes the impact of discrete tax benefits related to equity compensation.

For the three and nine months ended September 30, 2023, the Company's effective tax rate was 18.6% and 16.1%, respectively. The effective tax rates for the three and nine months ended September 30, 2023 differs from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion and discrete tax benefits related to equity compensation.