Chord Energy Corp

13. Income Taxes

The Company’s effective tax rate was 26.1% and 20.6% for the three and nine months ended September 30, 2026, respectively, as compared to an effective tax rate of 23.6% and 131.3% for the three and nine months ended September 30, 2025, respectively.

The effective tax rate for the three months ended September 30, 2026 was higher than the statutory federal rate of 21% primarily as a result of state income taxes. The effective tax rate for the nine months ended September 30, 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 nine months ended September 30, 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 September 30, 2025 was higher than the statutory federal rate of 21% primarily as a result of state income taxes. The effective tax rate for the nine months ended September 30, 2025 was higher than the statutory federal rate of 21% primarily as a result of the impact of goodwill impairment.

The Company paid income taxes of $30.8 million and $119.2 million during the three and nine months ended September 30, 2026, respectively, and $7.0 million and $73.1 million during the three and nine months ended September 30, 2025, respectively.