INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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| Income Tax Disclosure [Abstract] |
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| Summary of Income Tax Benefits (Provisions) |
The Company recorded the following federal and state income tax benefits (provisions) for the years ended December 31, 2023, 2022, and 2021.
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For the Years Ended December 31, |
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2023 |
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2022 |
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2021 |
| Deferred federal income tax benefit (provision) |
$ |
901,522 |
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$ |
(6,437,680) |
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$ |
— |
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| Current state income tax provision |
(72,213) |
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— |
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— |
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| Deferred state income tax provision |
(954,551) |
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(1,971,044) |
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(90,342) |
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| Provision for Income Taxes |
$ |
(125,242) |
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$ |
(8,408,724) |
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$ |
(90,342) |
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For the years ended December 31, 2023, 2022, and 2021, components of our provision for income taxes are as follows:
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Provision for Income Taxes: |
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2023 |
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2022 |
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2021 |
| Federal deferred tax |
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$ |
(901,522) |
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$ |
6,437,680 |
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$ |
— |
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State current tax |
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72,213 |
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— |
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— |
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| State deferred tax |
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954,551 |
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1,971,044 |
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90,342 |
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Provision for Income Taxes |
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$ |
125,242 |
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$ |
8,408,724 |
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$ |
90,342 |
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| Schedule of Effective Income Tax Rate Reconciliation |
The Company’s overall effective tax rates (calculated as Provision for Income Taxes divided by Income Before Provision for Income Taxes) for the years ended December 31, 2023, 2022, and 2021 were as follows.
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For the Years Ended December 31, |
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2023 |
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2022 |
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2021 |
Effective tax rate |
0.1 |
% |
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5.7 |
% |
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2.6 |
% |
The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes:
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Rate Reconciliation: |
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2023 |
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2022 |
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2021 |
Pre-tax book income (1)
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$ |
104,917,670 |
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$ |
147,043,749 |
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$ |
3,413,234 |
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| Tax at federal statutory rate |
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$ |
22,032,711 |
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$ |
30,879,187 |
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$ |
716,779 |
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| Excess tax benefit from stock option exercises and restricted stock vesting |
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478,304 |
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(312,268) |
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(175,187) |
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| Adjust prior estimates to tax return |
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(474,617) |
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214,740 |
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2,938,948 |
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| States taxes, net of federal benefit |
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1,122,782 |
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1,443,145 |
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430,654 |
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| Valuation allowance |
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(24,182,975) |
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(24,151,242) |
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(3,827,194) |
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| Non-deductible expenses and other |
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1,149,037 |
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335,162 |
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6,342 |
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| Provision for Income Taxes |
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$ |
125,242 |
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$ |
8,408,724 |
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$ |
90,342 |
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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, 2023 and 2022:
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12/31/2023
Total |
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12/31/2022
Total |
| Deferred Tax Assets |
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| Net operating loss (NOL) carryforward |
82,011,212 |
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70,564,004 |
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| Equity compensation |
1,372,277 |
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1,554,680 |
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| Asset retirement obligation |
6,165,239 |
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6,635,099 |
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| Fair market value of derivatives |
224,209 |
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2,827,202 |
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| §163(j) business interest expense carryforward |
12,854,900 |
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4,917,358 |
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| Others |
1,638,297 |
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1,173,441 |
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| Gross Deferred Tax Assets |
104,266,134 |
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87,671,784 |
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| Less: valuation allowance |
— |
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(24,182,975) |
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| Net Deferred Tax Assets |
104,266,134 |
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63,488,809 |
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| Deferred Tax Liabilities |
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| Property and equipment |
(111,872,367) |
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(71,402,820) |
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| Other |
(945,812) |
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(585,005) |
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| Net Deferred Liabilities |
(112,818,179) |
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(71,987,825) |
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| Net Deferred Tax Liabilities |
(8,552,045) |
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(8,499,016) |
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