INCOME TAXES

The following table sets forth our provision for income taxes for the periods indicated:


	Years Ended December 31,
	2025		2024		2023
	(Millions of dollars)
Current tax expense (benefit)
Federal	$	49	$	89	$	(3)
State	22		20		12
Total current tax expense	71		109		9
Deferred tax expense
Federal	888		792		739
State	69		97		90
Total deferred tax expense	957		889		829
Total provision for income taxes	$	1,028	$	998	$	838

The following table is a reconciliation of our income tax provision for the periods indicated:


	Years Ended December 31,
	2025					2024					2023
	(Millions of dollars, except for percentages)
				(b)					(b)					(b)
Income before income taxes	$	4,490				$	4,110				$	3,497
Federal statutory income tax rate	21.0		%			21.0		%			21.0		%
Provision for federal income taxes	943			21.0	%	863			21.0	%	734			21.0	%
State income taxes, net of federal tax benefit (a)	91			2.0	%	125			3.0	%	102			2.9	%
Nontaxable or nondeductible items	(6)			(0.1)	%	3			0.1	%	(1)			—	%
Other, net	—			—	%	7			0.2	%	3			0.1	%
Income tax provision	$	1,028		22.9	%	$	998		24.3	%	$	838		24.0	%

(a) - Our operations are primarily apportioned across Oklahoma, Texas, Kansas and North Dakota for state income tax purposes.

(b) - Represents percent of income before income taxes.

The following table sets forth cash paid for income taxes, net of refunds, for the periods indicated:


	Years Ended December 31,
	2025		2024		2023
	(Millions of dollars)
Federal	$	52	$	85	$	27
State	22		17		10
Total cash paid for income taxes, net of refunds	$	74	$	102	$	37

The following table sets forth the tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of the dates indicated:


	December 31, 2025		December 31, 2024
Deferred tax assets	(Millions of dollars)
Employee benefits and other accrued liabilities	$	98	$	99
Federal net operating loss	2,570		2,818
Federal tax credit	6		—
State net operating loss and benefits	546		515
Derivative instruments	—		15
Interest expense limitation	237		407
Other	17		39
Total deferred tax assets	3,474		3,893
Valuation allowance for state net operating loss and tax credits
Carryforward expected to expire prior to utilization	(267)		(252)
Net deferred tax assets	3,207		3,641
Deferred tax liabilities
Excess of tax over book depreciation	92		58
Derivative instruments	5		—
Investment in partnerships (a)	9,459		9,034
Total deferred tax liabilities	9,556		9,092
Net deferred tax liabilities	$	6,349	$	5,451

(a) Due primarily to excess of tax over book depreciation.

On January 31, 2025, we completed the EnLink Acquisition by acquiring all of the remaining and outstanding publicly held EnLink Units. EnLink is now a wholly owned subsidiary and included in our consolidated income tax returns.

As of December 31, 2025, we have federal net operating loss carryforwards of $12.2 billion, which have an indefinite carryforward period. We expect to generate taxable income and utilize these net operating loss carryforwards in future periods. We also have loss and credit carryovers in multiple states, $13.2 billion of which, have an indefinite carryforward period and $1.2 billion of which will expire between 2029 and 2043. We have deferred tax assets related to federal and state net operating loss and credit carryforwards of $3.1 billion and $3.3 billion in 2025 and 2024, respectively. We believe that it is more likely than not that the tax benefits of certain state carryforwards will not be utilized; therefore, we recorded a valuation allowance, which was increased by $15 million, $12 million and $165 million in 2025, 2024 and 2023, respectively, through net income.

Historical Timeline

Fiscal Year	Filed
2025	Feb 24, 2026	Showing above
2024	Feb 25, 2025

2023	Feb 27, 2024

2022	Feb 28, 2023

2021	Mar 1, 2022

2020	Feb 23, 2021

2019	Feb 25, 2020

2018	Feb 26, 2019

2017	Feb 27, 2018

2016	Feb 28, 2017

2015	Feb 23, 2016

About Income Taxes Disclosures

The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.

Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.

ONEOK INC /NEW/ Income Taxes Disclosure

Historical Timeline

About Income Taxes Disclosures

Other Available Disclosures