| Schedule of Components of Income Tax Expense (Benefit) |
The income tax provision consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
(In thousands) |
Current: |
|
|
|
|
|
State |
$ |
2,167 |
|
|
$ |
(1,330 |
) |
|
$ |
(1,069 |
) |
Federal |
3,362 |
|
|
(19,770 |
) |
|
(439 |
) |
Deferred: |
|
|
|
|
|
State |
(118 |
) |
|
(386 |
) |
|
(14,218 |
) |
Federal |
(3,602 |
) |
|
18,573 |
|
|
(240,275 |
) |
Total income tax expense (benefit) provision |
$ |
1,809 |
|
|
$ |
(2,913 |
) |
|
$ |
(256,001 |
) |
|
| Reconciliation of Statutory Federal Income Tax Amount |
A reconciliation of the statutory federal income tax amount to the recorded expense follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
(In thousands) |
Income (loss) before federal income taxes |
$ |
436,961 |
|
|
$ |
(982,622 |
) |
|
$ |
(1,480,885 |
) |
Expected income tax at statutory rate |
152,936 |
|
|
(343,918 |
) |
|
(518,310 |
) |
State income taxes |
2,299 |
|
|
(5,883 |
) |
|
(15,908 |
) |
Other differences |
5,731 |
|
|
4,293 |
|
|
(420 |
) |
Intraperiod tax allocation |
— |
|
|
(1,349 |
) |
|
— |
|
Remeasurement due to Tax Cut and Jobs Act |
190,034 |
|
|
— |
|
|
— |
|
Change in valuation allowance due to current year activity |
(158,704 |
) |
|
343,944 |
|
|
278,637 |
|
Change in valuation allowance due to Tax Cuts and Jobs Act |
(190,487 |
) |
|
— |
|
|
— |
|
Income tax expense (benefit) recorded |
$ |
1,809 |
|
|
$ |
(2,913 |
) |
|
$ |
(256,001 |
) |
|
| Schedule of Deferred Tax Assets and Liabilities |
The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2017, 2016 and 2015 are estimated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
|
(In thousands) |
Deferred tax assets: |
|
|
|
|
|
Net operating loss carryforward |
$ |
120,626 |
|
|
$ |
162,073 |
|
|
$ |
46,209 |
|
Oil and gas property basis difference |
151,260 |
|
|
386,302 |
|
|
292,838 |
|
Investment in pass through entities |
12,343 |
|
|
27,469 |
|
|
14,034 |
|
FASB ASC 718 compensation expense |
813 |
|
|
2,084 |
|
|
1,922 |
|
Business energy investment tax credit |
369 |
|
|
369 |
|
|
— |
|
AMT credit |
— |
|
|
3,842 |
|
|
23,629 |
|
Charitable contributions carryover |
255 |
|
|
303 |
|
|
146 |
|
Unrealized loss on hedging activities |
— |
|
|
48,317 |
|
|
— |
|
Foreign tax credit carryforwards |
2,074 |
|
|
2,074 |
|
|
2,074 |
|
Accrued liabilities |
285 |
|
|
397 |
|
|
— |
|
ARO liability |
15,897 |
|
|
12,107 |
|
|
9,415 |
|
Non-oil and gas property basis difference |
171 |
|
|
— |
|
|
— |
|
State net operating loss carryover |
6,954 |
|
|
5,351 |
|
|
4,344 |
|
Total deferred tax assets |
311,047 |
|
|
650,688 |
|
|
394,611 |
|
Valuation allowance for deferred tax assets |
(298,830 |
) |
|
(645,841 |
) |
|
(303,246 |
) |
Deferred tax assets, net of valuation allowance |
12,217 |
|
|
4,847 |
|
|
91,365 |
|
Deferred tax liabilities: |
|
|
|
|
|
Non-oil and gas property basis difference |
— |
|
|
155 |
|
|
715 |
|
Unrealized gain on hedging activities |
11,009 |
|
|
— |
|
|
66,422 |
|
Total deferred tax liabilities |
11,009 |
|
|
155 |
|
|
67,137 |
|
Net deferred tax asset |
$ |
1,208 |
|
|
$ |
4,692 |
|
|
$ |
24,228 |
|
|