Note 8 - Income Taxes

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

INCOME TAXES

NOTE 8—INCOME TAXES

Income tax provisions for interim quarterly periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items related specifically to interim periods. Income tax expense for the three months ended June 30, 2019 was $2.2 million, an effective tax rate of 17.0%, compared to $0.6 million, an effective tax rate of 5.9% for the three months ended June 30, 2018.    Income tax expense for the six months ended June 30, 2019 was $3.5 million, an effective tax rate of 16.8% compared to expense of $1.4 million, an effective tax rate of 8.2% for the six months ended June 30, 2018.The primary difference between the statutory rate of 21% and the actual rate is related to permanent differences for state income taxes, non-deductible expenses and the difference in depletion expense between U.S. GAAP and federal income tax purposes.