INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
|
Schedule of income tax provision (benefit) |
The components of income tax benefits and expense were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Year Ended December 31, 2022 |
|
Period from May 18, 2021 through December 31, 2021 |
|
|
Period from January 1, 2021 through May 17, 2021 |
|
Year Ended December 31, 2020 |
Current: |
|
|
|
|
|
|
|
|
State |
$ |
— |
|
|
$ |
(39) |
|
|
|
$ |
(7,968) |
|
|
$ |
— |
|
Federal |
— |
|
|
— |
|
|
|
— |
|
|
(273) |
|
Deferred: |
|
|
|
|
|
|
|
|
State |
— |
|
|
— |
|
|
|
— |
|
|
7,563 |
|
Federal |
— |
|
|
— |
|
|
|
— |
|
|
— |
|
Total income tax (benefit) expense provision |
$ |
— |
|
|
$ |
(39) |
|
|
|
$ |
(7,968) |
|
|
$ |
7,290 |
|
|
Schedule of reconciliation to the statutory federal income tax |
A reconciliation of the statutory federal income tax amount to the recorded expense follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Year Ended December 31, 2022 |
|
Period from May 18, 2021 through December 31, 2021 |
|
|
Period from January 1, 2021 through May 17, 2021 |
|
Year Ended December 31, 2020 |
Income (loss) before federal income taxes |
$ |
494,701 |
|
|
$ |
(112,868) |
|
|
|
$ |
243,026 |
|
|
$ |
(1,617,843) |
|
Expected income tax at statutory rate |
103,887 |
|
|
(23,702) |
|
|
|
51,036 |
|
|
(339,747) |
|
State income taxes |
2,227 |
|
|
(3,177) |
|
|
|
(12,484) |
|
|
(14,696) |
|
Bankruptcy adjustments |
— |
|
|
44,748 |
|
|
|
(111,285) |
|
|
— |
|
Remeasurement of state deferred tax asset |
13,869 |
|
|
(7,966) |
|
|
|
— |
|
|
— |
|
Return to provision |
(17,075) |
|
|
— |
|
|
|
— |
|
|
— |
|
Other differences |
1,117 |
|
|
2,841 |
|
|
|
445 |
|
|
10,800 |
|
Change in valuation allowance due to current year activity |
(104,025) |
|
|
(12,783) |
|
|
|
64,320 |
|
|
350,933 |
|
Income tax (benefit) expense recorded |
$ |
— |
|
|
$ |
(39) |
|
|
|
$ |
(7,968) |
|
|
$ |
7,290 |
|
|
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, 2022, and 2021 are estimated as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
|
December 31, 2022 |
|
December 31, 2021 |
|
|
|
|
|
Deferred tax assets: |
|
|
|
|
|
|
|
|
Net operating loss carryforward and tax credits |
$ |
346,455 |
|
|
$ |
298,127 |
|
|
|
|
|
|
Oil and gas property basis difference |
269,206 |
|
|
432,959 |
|
|
|
|
|
|
Investment in pass through entities |
66,502 |
|
|
58,751 |
|
|
|
|
|
|
Stock-based compensation expense |
1,484 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of derivative instruments |
73,198 |
|
|
86,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
52,107 |
|
|
31,298 |
|
|
|
|
|
|
Total deferred tax assets |
808,952 |
|
|
907,431 |
|
|
|
|
|
|
Valuation allowance for deferred tax assets |
(803,332) |
|
|
(907,358) |
|
|
|
|
|
|
Deferred tax assets, net of valuation allowance |
5,620 |
|
|
73 |
|
|
|
|
|
|
Deferred tax liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Right of use asset |
5,615 |
|
|
— |
|
|
|
|
|
|
Other |
5 |
|
|
73 |
|
|
|
|
|
|
Total deferred tax liabilities |
5,620 |
|
|
73 |
|
|
|
|
|
|
Net deferred tax asset |
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|