Note 9- Income Taxes

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

INCOME TAXES

NOTE 9—INCOME TAXES

Income tax provisions for interim quarterly periods are generally based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items related specifically to interim periods.

During the three months ended March 31, 2021, we recognized a tax benefit of $0.4 million for legislative changes in the state of West Virginia. The effective tax rate for the three months ended March 31, 2021, excluding this discrete benefit, was approximately 5%. Our effective tax rate for the three months ended March 31, 2020 was also 5%. The primary difference from the federal statutory rate of 21% in each period is related to state taxes, permanent differences for non-deductible expenses and depletion expense for income tax purposes.