INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Income Tax Benefits (Provisions) |
For the years ended December 31, 2025, 2024, and 2023, components of our provision (benefit) for income taxes are as follows.
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| Provision for (Benefit from) Income Taxes: |
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2025 |
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2024 |
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2023 |
| Federal deferred tax |
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$ |
(7,654,389) |
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$ |
19,096,010 |
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$ |
(901,522) |
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State current tax |
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374,982 |
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401,197 |
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72,213 |
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| State deferred tax |
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(173,339) |
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943,747 |
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954,551 |
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| Provision for (Benefit from) Income Taxes |
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$ |
(7,452,746) |
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$ |
20,440,954 |
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$ |
125,242 |
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| Schedule of Effective Income Tax Rate Reconciliation |
The effective tax rates for the years ended December 31, 2025, 2024, and 2023 were as follows.
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For the years ended December 31, |
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2025 |
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2024 |
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2023 |
Effective tax rate (1)
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17.7 |
% |
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23.3 |
% |
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0.1 |
% |
(1) The effective tax rates for the years ended December 31, 2025 and 2024 differ from the U.S. federal statutory rate of 21% primarily due to share-based and executive compensation and state income taxes. The effective tax rate for the year ended December 31, 2023 was impacted by the release of valuation allowance on the Company's federal net deferred tax asset. A tax benefit of $24.2 million was recorded in the year ended December 31, 2023.
The following is a reconciliation of the difference between the effective income tax rate and the U.S. federal statutory rate, for the year ended December 31, 2025.
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| Rate Reconciliation: |
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2025 |
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Amount |
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Percent |
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| Pre-tax book income (loss) |
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$ |
(42,183,945) |
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| Tax provision (benefit) computed at the U.S. federal statutory rate |
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(8,858,628) |
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21.0 |
% |
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State and local income tax, net of federal income tax effect (1)
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174,193 |
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(0.4) |
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| Nontaxable or nondeductible items: |
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| Share-based compensation and executive compensation disallowance |
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1,209,928 |
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(2.9) |
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| Meals and entertainment |
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20,147 |
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0.0 |
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| Other |
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1,614 |
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0.0 |
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| Provision for (Benefit from) Income Taxes |
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$ |
(7,452,746) |
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17.7 |
% |
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(1) State taxes in Texas made up the majority (greater than 50%) of the tax effect in this category.
As previously disclosed for the years ended December 31, 2024, and 2023, prior to the adoption of ASU 2023-09, the following is a reconciliation of the difference between the effective income tax rate and the U.S. federal statutory rate.
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Rate Reconciliation: |
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2024 |
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2023 |
Pre-tax book income (loss) (2)
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$ |
87,911,268 |
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$ |
104,917,670 |
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| Tax at federal statutory rate |
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18,461,366 |
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22,032,711 |
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| Excess tax benefit from stock option exercises and restricted stock vesting |
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104,344 |
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478,304 |
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| Adjust prior estimates to tax return |
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69,654 |
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(474,617) |
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| States taxes, net of federal benefit |
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1,008,096 |
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1,122,782 |
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| Valuation allowance |
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— |
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(24,182,975) |
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| Non-deductible expenses and other |
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797,494 |
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1,149,037 |
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| Provision for (Benefit from) Income Taxes |
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$ |
20,440,954 |
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$ |
125,242 |
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| Schedule of Deferred Tax Assets and Liabilities |
The Company's deferred tax position reflects the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. The net deferred taxes consisted of the following as of December 31, 2025 and 2024.
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2025 |
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2024 |
| Deferred Tax Assets |
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| Net operating loss (NOL) carryforward |
$ |
72,880,353 |
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$ |
68,516,720 |
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| Share-based compensation |
910,213 |
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1,097,273 |
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| Asset retirement obligation |
6,627,813 |
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5,755,174 |
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| §163(j) business interest expense carryforward |
19,675,692 |
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18,838,600 |
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| Other |
1,488,392 |
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1,672,268 |
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| Gross Deferred Tax Assets |
$ |
101,582,463 |
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$ |
95,880,035 |
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| Less: valuation allowance |
— |
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— |
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| Net Deferred Tax Assets |
$ |
101,582,463 |
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$ |
95,880,035 |
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| Deferred Tax Liabilities |
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| Property and equipment |
$ |
(115,663,637) |
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$ |
(123,318,803) |
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| Fair value of derivative instruments |
(6,107,910) |
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(392,761) |
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| Other |
(575,035) |
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(760,273) |
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| Net Deferred Tax Liabilities |
$ |
(122,346,582) |
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$ |
(124,471,837) |
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| Net Deferred Tax Liability |
$ |
(20,764,119) |
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$ |
(28,591,802) |
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| Schedule of Cash Flow, Supplemental Disclosures |
The following table summarizes income taxes paid (net of refunds received) for the year ended December 31, 2025. All jurisdictions in which income taxes paid (net of refunds received) were equal to or greater than five percent of total income taxes paid (net of refunds received) are included below (if the noted jurisdiction did not meet the five percent threshold for a particular year, the amount for that year is not included below).
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| Income taxes paid (net of refunds received) |
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2025 |
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| Federal income taxes |
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$ |
— |
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| State and local income taxes: |
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| Texas |
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$ |
337,787 |
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| Other |
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9,700 |
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| Total state and local income taxes, net of refunds |
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$ |
347,487 |
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| Total income taxes paid, net of refunds received |
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$ |
347,487 |
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