Income Taxes

3 Months Ended

Mar. 31, 2023

Income Taxes

Taxes

9. Income Taxes

The Company's effective tax rate for three months ended March 31, 2023 is based on its estimated full year effective tax rate, adjusted for discrete items. The effective tax rate for the three months ended March 31, 2023 was 15.8%. The effective tax rate for the three months ended March 31, 2023 differs from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion and discrete tax benefits related to equity compensation.

For the three months ended March 31, 2022, the Company's effective tax rate was 0.2%. The effective tax rate for the three months ended March 31, 2022 was impacted by the valuation allowance the Company maintained against its deferred tax assets until the fourth quarter of 2022.