INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income Tax Provision (Benefit)

The components of income tax expense and benefits were as follows (in thousands):


	Year Ended December 31, 2025		Year Ended December 31, 2024		Year Ended December 31, 2023
Current:
State	$	—	$	—	$	—
Federal	—		—		—
Deferred:
State	71		11,747		(26,704)
Federal	115,424		(67,824)		(498,452)
Total income tax expense (benefit) provision	$	115,495	$	(56,077)	$	(525,156)

Schedule of Reconciliation to the Statutory Federal Income Tax

A reconciliation of the statutory federal income tax amount to the recorded expense (benefit) follows (in thousands):


	Year Ended December 31, 2025				Year Ended December 31, 2024				Year Ended December 31, 2023
	Amount		Percent		Amount		Percent		Amount		Percent
Income (loss) before federal income taxes	$	543,305			$	(317,463)			$	945,760
U.S. federal statutory tax rate	114,094		21.00	%	(66,668)		21.00	%	198,610		21.00	%
State and local income taxes, net of federal income tax effect(1)	(479)		(0.09)	%	8,939		(2.82)	%	(26,018)		(2.75)	%
Valuation allowances	(56)		(0.01)	%	(259)		0.08	%	(699,730)		(73.99)	%
Nontaxable or nondeductible items	1,745		0.32	%	1,857		(0.58)	%	1,982		0.21	%
Tax credits	191		0.04	%	—		—	%	—		—	%
Other adjustments	—		—	%	54		(0.02)	%	—		—	%
Income tax expense (benefit) recorded	$	115,495	21.26	%	$	(56,077)	17.66	%	$	(525,156)	(55.53)	%

_____________________

(1) For 2025, 2024 and 2023, state taxes in Oklahoma contributed to the majority (greater than 50 percent) of the tax effect in this category.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2025 and 2024 are estimated as follows (in thousands):


	Year Ended December 31, 2025		Year Ended December 31, 2024
Deferred tax assets:
Net operating loss carryforward and tax credits	$	330,805	$	345,770
Oil and gas property basis difference	123,496		194,412
Investment in pass through entities	65,385		65,210
Stock-based compensation expense	2,223		1,821
Change in fair value of derivative instruments	—		6,106
Other assets	33,491		56,849
Total deferred tax assets	555,400		670,168
Valuation allowance for deferred tax assets	(82,637)		(83,695)
Deferred tax assets, net of valuation allowance	472,763		586,473
Deferred tax liabilities:
Change in fair value of derivative instruments	6,232		3,401
Right of use asset	118		1,281
Other	675		558
Total deferred tax liabilities	7,025		5,240
Net deferred tax asset	$	465,738	$	581,233

GULFPORT ENERGY CORP 10-K