Income Tax

9 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Tax

Income Tax

On July 4, 2025, the U.S. enacted significant tax legislation under H.R. 1, the One Big Beautiful Bill Act (“OBBBA”). The OBBBA, among other tax provisions, (i) restores 100 percent bonus depreciation for qualified property acquired and placed in service after January 19, 2025, unless the property was subject to a legally binding written contract entered into before that date, (ii) restores immediate expensing of domestic research and development expenditures for tax years after December 31, 2024, (iii) restores a more favorable EBITDA-based calculation for the business interest expense deduction limitation for tax years after December 31, 2024, and (iv) allows for the deduction of intangible drilling costs in computing adjusted financial statement income under the Corporate Alternative Minimum Tax for tax years after December 31, 2025.

The effects of the provisions of the OBBBA have been reflected in the Company’s financial statements for the quarter ended September 30, 2025. While the enactment of the OBBBA did not result in a material change to the Company’s total income tax expense, it had a material impact on the allocation between current and deferred taxes. Specifically, the

reinstatement of 100 percent bonus depreciation and immediate expensing of domestic research and development costs resulted in a significant reduction to current tax expense, with a corresponding increase in deferred tax expense.