INCOME TAXES (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Income Tax Benefits (Provisions) |
The Company recorded the following federal and state income tax provisions for the years ended December 31, 2024, 2023, and 2022.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
| Deferred federal income tax benefit (provision) |
$ |
(19,096,010) |
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$ |
901,522 |
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$ |
(6,437,680) |
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| Current state income tax benefit (provision) |
(401,197) |
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(72,213) |
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— |
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| Deferred state income tax benefit (provision) |
(943,747) |
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(954,551) |
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(1,971,044) |
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| Provision for Income Taxes |
$ |
(20,440,954) |
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$ |
(125,242) |
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$ |
(8,408,724) |
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For the years ended December 31, 2024, 2023, and 2022, components of our provision for income taxes are as follows:
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Provision for Income Taxes: |
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2024 |
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2023 |
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2022 |
| Federal deferred tax |
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$ |
19,096,010 |
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$ |
(901,522) |
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$ |
6,437,680 |
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State current tax |
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401,197 |
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72,213 |
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— |
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| State deferred tax |
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943,747 |
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954,551 |
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1,971,044 |
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Provision for Income Taxes |
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$ |
20,440,954 |
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$ |
125,242 |
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$ |
8,408,724 |
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| Schedule of Effective Income Tax Rate Reconciliation |
The Company’s overall effective tax rates are calculated as Provision for Income Taxes divided by Income Before Provision for Income Taxes. The effective tax rates for the years ended December 31, 2024, 2023, and 2022 were as follows.
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For the Years Ended December 31, |
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2024 |
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2023 |
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2022 |
Effective tax rate (1)
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23.3 |
% |
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0.1 |
% |
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5.7 |
% |
(1) 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 $24.2 million was recorded in the year ended December 31, 2023.
The following is a reconciliation of income taxes computed using the U.S. federal statutory rate to the provision for income taxes:
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Rate Reconciliation: |
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2024 |
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2023 |
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2022 |
Pre-tax book income (1)
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$ |
87,911,268 |
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$ |
104,917,670 |
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$ |
147,043,749 |
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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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$ |
30,879,187 |
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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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(312,268) |
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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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214,740 |
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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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1,443,145 |
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| Valuation allowance |
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— |
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(24,182,975) |
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(24,151,242) |
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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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335,162 |
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| Provision for Income Taxes |
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$ |
20,440,954 |
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$ |
125,242 |
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$ |
8,408,724 |
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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, 2024 and 2023:
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12/31/2024
Total |
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12/31/2023
Total |
| Deferred Tax Assets |
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| Net operating loss (NOL) carryforward |
68,516,720 |
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82,011,212 |
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| Share-based compensation |
1,097,273 |
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1,372,277 |
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| Asset retirement obligation |
5,755,174 |
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6,165,239 |
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| Fair value of derivative instruments |
— |
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224,209 |
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| §163(j) business interest expense carryforward |
18,838,600 |
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12,854,900 |
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| Other |
1,672,268 |
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1,638,297 |
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| Gross Deferred Tax Assets |
95,880,035 |
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104,266,134 |
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| Less: valuation allowance |
— |
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— |
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| Net Deferred Tax Assets |
95,880,035 |
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104,266,134 |
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| Deferred Tax Liabilities |
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| Property and equipment |
(123,318,803) |
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(111,872,367) |
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| Fair value of derivative instruments |
(392,761) |
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— |
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| Other |
(760,273) |
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(945,812) |
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| Net Deferred Tax Liabilities |
(124,471,837) |
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(112,818,179) |
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| Net Deferred Tax Liability |
(28,591,802) |
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(8,552,045) |
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