Gulfport Energy Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The income tax provision consists of the following:


	2020		2019		2018
	(In thousands)
Current:
State	$	—	$	—	$	(1,530)
Federal	(273)		(7)		253
Deferred:
State	7,563		(7,556)		1,530
Federal	—		—		(322)
Total income tax expense (benefit) provision	$	7,290	$	(7,563)	$	(69)

Schedule of reconciliation to the statutory federal income tax

A reconciliation of the statutory federal income tax amount to the recorded expense follows:


	2020		2019		2018
	(In thousands)
(Loss) income before federal income taxes	$	(1,617,843)	$	(2,009,921)	$	430,491
Expected income tax at statutory rate	(339,747)		(422,083)		90,403
State income taxes	(14,696)		(28,316)		(511)
Other differences	10,800		3,372		1,078


Change in valuation allowance due to current year activity	350,933		439,464		(91,039)

Income tax expense (benefit) recorded	$	7,290	$	(7,563)	$	(69)

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, 2020, 2019 and 2018 are estimated as follows:


	2020		2019		2018
	(In thousands)
Deferred tax assets:
Net operating loss carryforward	$	392,318	$	269,851	$	164,363
Oil and gas property basis difference	463,705		289,850		3,595
Investment in pass through entities	61,078		58,951		8,620
Stock-based compensation expense	1,223		1,440		616
Business energy investment tax credit	370		370		369

Charitable contributions carryover	318		297		269
Change in fair value of derivative instruments	7,656		11,219		2,761
Foreign tax credit carryforwards	523		943		2,009
Accrued liabilities	868		669		834
ARO liability	13,414		12,744		16,923
Non-oil and gas property basis difference	—		—		104
Lease liability	72		12,128		—
Reorganization items	25,714		—		—
State net operating loss carryover	22,191		13,258		11,526
Interest expense carryforward	—		23,818		—
Total deferred tax assets	989,450		695,538		211,989
Valuation allowance for deferred tax assets	(985,528)		(647,575)		(211,987)
Deferred tax assets, net of valuation allowance	3,922		47,963		2
Deferred tax liabilities:
Non-oil and gas property basis difference	575		1,859		—

Change in fair value of derivative instruments	3,272		26,410		2
Right of use asset	72		12,128		—
Other	3		3		—
Total deferred tax liabilities	3,922		40,400		2
Net deferred tax asset	$	—	$	7,563	$	—