Quarterly report [Sections 13 or 15(d)]

INCOME TAXES

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INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Components of the provision for income taxes are as follows (in thousands): 
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Federal $ 24,419  $ 38,498  $ 38,245  $ 69,129 
State 5,515  7,683  8,904  14,405 
Total $ 29,934  $ 46,181  $ 47,149  $ 83,534 

The effective tax rate for the three and six months ended June 30, 2026 was 24.8% and 24.4%, respectively, and for the three and six months ended June 30, 2025 was 23.9% and 23.6%, respectively. The increase in the effective tax rate for both the three and six months ended June 30, 2026 was due to an increase in state income taxes.
At June 30, 2026 and December 31, 2025, we have no unrecognized tax benefits. We believe our current income tax filing positions and deductions will be sustained on audit and we do not anticipate any adjustments that will result in a material change. Our policy is to accrue interest and penalties on unrecognized tax benefits and include them in the provision for income taxes.
We determine our deferred tax assets and liabilities in accordance with ASC 740, Income Taxes. We evaluate our deferred tax assets, including the benefit from net operating losses ("NOLs"), by jurisdiction to determine if a valuation allowance is required. This evaluation considers, among other matters, the nature, frequency and severity of cumulative losses, forecasts of future profitability, the length of statutory carryforward periods, experiences with operating losses and experiences of utilizing tax credit carry forwards and tax planning alternatives. We have no federal NOLs or credit carryovers at June 30, 2026, and determined that no valuation allowance on our deferred tax assets was necessary at June 30, 2026.
At June 30, 2026, we had no taxes payable and $9.1 million income taxes receivable. The income taxes receivable at June 30, 2026 primarily consists of federal and state estimated tax payments and energy tax credits in excess of income tax liability. We have accrued taxes of $11.7 million recorded in Accrued and other liabilities on the accompanying unaudited consolidated balance sheets at June 30, 2026 that consists primarily of state franchise tax and federal excise tax.

We conduct business and are subject to tax in the U.S. both federally and in several states. With few exceptions, we are no longer subject to U.S. federal, state, or local income tax examinations by taxing authorities for years prior to 2021. We have no federal tax examinations pending resolution at this time, and one state income tax examination covering various years pending resolution at this time.