Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.26.1
Income Taxes
3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
We recorded an income tax benefit of $341 million and an income tax provision of $121 million during the three months ended March 31, 2026 and 2025, respectively, which was calculated using the annual effective tax rate method.

Our effective tax rate was 9.1% and 15.3% during the three months ended March 31, 2026 and 2025, respectively, due to a decline in our pre-tax income (loss) and the proportion of such pre-tax income attributable to CQP, which is partially not taxable to us. The decline in our pre-tax income was primarily the result of $4.8 billion of unfavorable changes in the fair value of agreements accounted for as derivative instruments (before tax and the impact of NCI), largely associated with unfavorable changes in fair value of our long-term IPM agreements. The effective tax rate for the comparable three month period was lower than the statutory rate of 21.0% primarily due to CQP’s income that is partially not taxable to us.