Income Taxes

6 Months Ended

Jun. 30, 2023

Income Taxes

Taxes

9. Income Taxes

The Company's effective tax rate for six months ended June 30, 2023 is based on its estimated full year effective tax rate, adjusted for discrete items. The effective tax rate for the three and six months ended June 30, 2023 was 14.3% and 15.4%, respectively. The effective tax rate for the three and six months ended June 30, 2023 differ from the U.S. federal statutory rate of 21%, primarily due to the income tax benefit for excess percentage depletion. The effective tax rate for the six months ended June 30, 2023 also includes the impact of discrete tax benefits related to equity compensation.

For the three and six months ended June 30, 2022, the Company's effective tax rate was 0.1% and 0.2%. The effective tax rate for the three and six months ended June 30, 2022 was impacted by the valuation allowance the Company maintained against its deferred tax assets until the fourth quarter of 2022.