Chord Energy Corp

12. Income Taxes

The Company’s effective tax rate was (15.2)% for the three months ended March 31, 2026 as compared to an effective tax rate of 25.0% for the three months ended March 31, 2025.

The effective tax rate for the three months ended March 31, 2026 was lower than the statutory federal rate of 21% primarily as a result of the identification of an error in the tax provision for the three and six months ended June 30, 2025 pertaining to the impact of goodwill impairment on the Company’s deferred taxes on unremitted earnings. As a result, the Company recognized an additional income tax benefit of $41.8 million during the three months ended March 31, 2026, with a corresponding decrease to deferred tax liabilities. The Company determined that this misstatement was not material to any of its previously issued financial statements nor is it expected to be material to the results for the full year ending December 31, 2026.

The effective tax rate for the three months ended March 31, 2025 was higher than the statutory federal rate of 21% primarily as a result of the impact of state income taxes and deferred taxes on unremitted earnings.

The Company paid income taxes of $21.0 million and $33.9 million during the three months ended March 31, 2026 and 2025, respectively.