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Income taxes
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The following table presents income tax benefit (expense) for the periods presented:
Three months ended June 30,Six months ended June 30,
(in thousands)2024202320242023
Current$(1,062)$(503)$(2,237)$(1,834)
Deferred(9,347)222,334 7,577 222,058 
Income tax benefit (expense)$(10,409)$221,831 $5,340 $220,224 
The Company estimates its annual effective tax rate (“AETR”) in recording its interim quarterly income tax provision for the various jurisdictions in which it operates. The tax effects of statutory rate changes, significant unusual or infrequently occurring items, and certain changes in the assessment of the realizability of deferred tax assets are excluded from the determination of its estimated AETR and are recognized as discrete items in the quarter in which they occur. The Company's effective tax rate during the three and six months ended June 30, 2024 was 22.09% and 15.36%, respectively, and is the result of projecting current and deferred U.S. income and Texas Franchise taxes, including the impact of discrete items and permanent differences. Current income tax expense is primarily attributable to Texas Franchise tax.
During the six months ended June 30, 2023, the Company determined there was sufficient positive evidence to conclude that it is more likely than not its federal deferred tax assets are realizable. Therefore, the Company reduced its valuation allowance accordingly and recorded a discrete quarterly benefit of $222.2 million during the three months ended June 30, 2023. The balance of the valuation allowance reversal was reflected as part of the Company's estimated annualized effective tax rate with respect to prior year projected earnings.
The Company’s deferred tax assets are primarily the result of U.S. net operating loss carryforwards. As of June 30, 2024, the Company had U.S. net operating loss carryforwards totaling $1.2 billion, of which $789.8 million will begin to expire in 2034 and $421.7 million will not expire but may be limited in future periods, and state of Oklahoma net operating loss carryforwards totaling $538.0 million, of which $34.6 million is subject to expiration beginning in 2032. As of June 30, 2024, the Company continues to maintain a full valuation allowance against its state of Oklahoma deferred tax assets.
If the Company were to experience an "ownership change," as determined under Section 382 of the Internal Revenue Code, the Company's ability to offset taxable income, arising after the ownership change with net operating losses arising prior to the ownership change, could be significantly limited. Based on information available as of June 30, 2024, no such ownership change has occurred.
The Company closed the PEP Acquisition during the first quarter of 2024. For income tax purposes, the PEP Acquisition will be treated as an asset purchase such that the tax basis in the assets and liabilities will generally reflect the allocated fair value at closing. Therefore, the Company does not anticipate recording any deferred income taxes as part of the purchase consideration with respect to this acquisition. See Note 3 for additional information regarding the Company's acquisition.