| Schedule of income tax provision |
The income tax provision consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
|
(In thousands) |
Current: |
|
|
|
|
|
State |
$ |
— |
|
|
$ |
(1,530 |
) |
|
$ |
2,167 |
|
Federal |
(7 |
) |
|
253 |
|
|
3,362 |
|
Deferred: |
|
|
|
|
|
State |
(7,556 |
) |
|
1,530 |
|
|
(118 |
) |
Federal |
— |
|
|
(322 |
) |
|
(3,602 |
) |
Total income tax (benefit) expense provision |
$ |
(7,563 |
) |
|
$ |
(69 |
) |
|
$ |
1,809 |
|
|
| Schedule of reconciliation to the statutory federal income tax |
A reconciliation of the statutory federal income tax amount to the recorded expense follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
|
(In thousands) |
Income (loss) before federal income taxes |
$ |
(2,009,921 |
) |
|
$ |
430,491 |
|
|
$ |
436,961 |
|
Expected income tax at statutory rate |
(422,083 |
) |
|
90,403 |
|
|
152,936 |
|
State income taxes |
(28,316 |
) |
|
(511 |
) |
|
2,299 |
|
Other differences |
3,372 |
|
|
1,078 |
|
|
5,731 |
|
Remeasurement due to Tax Cut and Jobs Act |
— |
|
|
— |
|
|
190,034 |
|
Change in valuation allowance due to current year activity |
439,464 |
|
|
(91,039 |
) |
|
(158,704 |
) |
Change in valuation allowance due to Tax Cuts and Jobs Act |
— |
|
|
— |
|
|
(190,487 |
) |
Income tax (benefit) expense recorded |
$ |
(7,563 |
) |
|
$ |
(69 |
) |
|
$ |
1,809 |
|
|
| 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, 2019, 2018 and 2017 are estimated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
|
(In thousands) |
Deferred tax assets: |
|
|
|
|
|
Net operating loss carryforward |
$ |
269,851 |
|
|
$ |
164,363 |
|
|
$ |
120,626 |
|
Oil and gas property basis difference |
289,850 |
|
|
3,595 |
|
|
151,260 |
|
Investment in pass through entities |
58,951 |
|
|
8,620 |
|
|
12,343 |
|
Stock-based compensation expense |
1,440 |
|
|
616 |
|
|
813 |
|
Business energy investment tax credit |
370 |
|
|
369 |
|
|
369 |
|
Charitable contributions carryover |
297 |
|
|
269 |
|
|
255 |
|
Change in fair value of derivative instruments |
11,219 |
|
|
2,761 |
|
|
— |
|
Foreign tax credit carryforwards |
943 |
|
|
2,009 |
|
|
2,074 |
|
Accrued liabilities |
669 |
|
|
834 |
|
|
285 |
|
ARO liability |
12,744 |
|
|
16,923 |
|
|
15,897 |
|
Non-oil and gas property basis difference |
— |
|
|
104 |
|
|
171 |
|
Lease liability |
12,128 |
|
|
— |
|
|
— |
|
State net operating loss carryover |
13,258 |
|
|
11,526 |
|
|
6,954 |
|
Interest expense carryforward |
23,818 |
|
|
— |
|
|
— |
|
Total deferred tax assets |
695,538 |
|
|
211,989 |
|
|
311,047 |
|
Valuation allowance for deferred tax assets |
(647,575 |
) |
|
(211,987 |
) |
|
(298,830 |
) |
Deferred tax assets, net of valuation allowance |
47,963 |
|
|
2 |
|
|
12,217 |
|
Deferred tax liabilities: |
|
|
|
|
|
Non-oil and gas property basis difference |
1,859 |
|
|
— |
|
|
— |
|
Change in fair value of derivative instruments |
26,410 |
|
|
2 |
|
|
11,009 |
|
Right of use asset |
12,128 |
|
|
— |
|
|
— |
|
Other |
3 |
|
|
— |
|
|
— |
|
Total deferred tax liabilities |
40,400 |
|
|
2 |
|
|
11,009 |
|
Net deferred tax asset |
$ |
7,563 |
|
|
$ |
— |
|
|
$ |
1,208 |
|
|