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Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 8 — INCOME TAXES
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted. The legislation, among other things, makes permanent, extends or modifies certain provisions under the 2017 Tax Cuts and Jobs Act, including (i) a permanent extension of 100% bonus depreciation for certain capital expenditures, (ii) an immediate deduction of domestic research or experimental expenditures, (iii) an acceleration of deductions for unamortized domestic research and development expenditures and (iv) an elimination of the deduction for depreciation, amortization and depletion from the definition of “adjusted taxable income” for the purpose of calculating limitations on interest expense deductions. Pursuant to ASC Topic 740, Income Taxes, the effects of changes in tax law are recognized in the period of enactment, and as a result, the Company recognized the impacts of this legislation in its consolidated financial statements for the year ended December 31, 2025. While the enactment of OBBBA resulted in a decrease in the current income tax provision and corresponding increase in the deferred income tax provision for the year ended December 31, 2025, the effective income tax rates and the total income tax provision were not materially impacted.
Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax bases of assets and liabilities. The Company’s net deferred tax position as of December 31, 2025 and 2024 is as follows (in thousands).
December 31,
 20252024
Deferred tax assets
Net operating loss carryforwards$118,860 $14,338 
Lease liabilities24,021 31,843 
Compensation17,615 16,562 
Research and experimental tax credits, net of reserve8,376 1,117 
Interest expense carryforward— 15,891 
Other2,553 1,677 
Total deferred tax assets171,425 81,428 
Valuation allowance on deferred tax assets$(8,985)(11,957)
Total deferred tax assets, net of valuation allowance162,440 69,471 
Deferred tax liabilities
Property and equipment(1,036,280)(802,186)
Less than wholly-owned subsidiaries(107,566)(75,580)
Lease right of use assets(24,021)(31,843)
Unrealized gain on derivatives(8,097)(4,039)
Other(2,407)(3,489)
Total deferred tax liabilities(1,178,371)(917,137)
Net deferred tax liabilities$(1,015,931)$(847,666)
At December 31, 2025, the Company had a federal net operating loss (“NOL”) carryforward and research and experimental credit carryforward of $97.3 million and $10.4 million, respectively. The federal NOL carryforward is indefinite-lived, and the research and experimental credit carryforward expires in 2045. At December 31, 2025, the Company had state NOL carryforwards and research and experimental credit carryforwards of $21.5 million and $4.3 million, respectively. State NOL carryforwards were comprised of $11.1 million and $10.0 million related to Louisiana and New Mexico, respectively. The Louisiana NOL carryforwards are fully offset by a valuation allowance, and the New Mexico NOL carryforward expires in 2045. The state research and experimental credit carryforwards all relate to Texas and begin expiring in 2038.
The current income tax provision and the deferred income tax provision for the years ended December 31, 2025, 2024 and 2023 were comprised of the following (in thousands).
Year Ended December 31,
 202520242023
Current income tax provision
Federal$6,192 $21,296 $1,554 
State896 5,763 12,368 
Total current income tax provision$7,088 $27,059 $13,922 
Deferred income tax provision (benefit)
Federal$187,881 $221,356 $145,711 
State(22,294)43,949 26,393 
Total deferred income tax provision$165,587 $265,305 $172,104 
Total income tax provision (benefit)
Federal$194,073 242,652 147,265 
State(21,398)49,712 38,761 
Total income tax provision $172,675 $292,364 $186,026 

Reconciliations of expected income tax expense and reported income tax expense on income before income taxes for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands). 
Year Ended December 31,
 202520242023
AmountPercentAmountPercentAmountPercent
US federal statutory income tax rate$217,558 21.00 %$265,379 21.00 %$230,241 21.00 %
Federal
Non-controlling interest in subsidiaries(21,325)(2.06)%(18,064)(1.43)%(13,500)(1.23)%
Research and experimental tax credits(11,545)(1.11)%1,504 0.12 %(102,330)(9.33)%
Other nontaxable and nondeductible items5,922 0.57 %(3,931)(0.31)%3,558 0.32 %
State income tax (benefit) expense(1)
(21,398)(2.06)%47,927 3.79 %37,358 3.41 %
Change in reserve on uncertain tax positions3,463 0.33 %(451)(0.04)%30,699 2.80 %
Total income tax provision$172,675 16.67 %$292,364 23.13 %$186,026 16.97 %
__________________    
(1)For the years ended December 31, 2025, 2024 and 2023, the state income tax (benefit) expense was primarily related to the State of New Mexico.

The Company did not have any reconciling items related to changes in tax laws or rates enacted in the current period.
The Company files a United States federal income tax return and several state tax returns, a number of which remain open for examination. The earliest tax year open for examination for the federal, the State of New Mexico and the State of Louisiana tax returns is 2022. The earliest tax year open for examination for the State of Texas tax return is 2021.
As of December 31, 2025, 2024 and 2023, the Company had unrecognized tax benefits (“UTB”) of $37.8 million, $34.3 million and $35.3 million, respectively, as a result of research and experimental expenditures, which would reduce the Company’s effective tax rate in future periods if and when realized. As of December 31, 2025, 2024 and 2023, $31.5 million, $31.1 million and $27.0 million, respectively, of the Company’s UTBs were recorded as other long-term liabilities on the consolidated balance sheets.
Reconciliations of UTBs for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands).
Year Ended December 31,
 202520242023
Balance at beginning of period $34,335 $35,336 $— 
Additions for tax positions of current period3,111 2,745 35,336 
Adjustment for tax positions of prior periods352 (3,746)— 
Balance at end of period(1)
$37,798 $34,335 $35,336 
__________________    
(1)At December 31, 2025, 2024 and 2023, the UTBs related to U.S. federal taxes were $33.7 million, $30.2 million and $30.7 million, respectively. At each of December 31, 2025 and 2024, the UTBs related to state of Texas taxes were $4.1 million. At December 31, 2023, the UTBs related to state of Texas taxes were $4.6 million.

The Company’s cash paid for income taxes, net of refunds received during the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands).
Year Ended December 31,
 202520242023
Federal$43,000 $22,622 $(8,864)
State
New Mexico7,500 7,200 13,284 
Other— 182 177 
Total cash paid for income taxes, net of refunds received$50,500 $30,004 $4,597