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, 2013

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision for continuing operations consists of the following:



	2013		2012		2011
	(In thousands)
Current:
State	$	6,860	$	84	$	—
Federal	6,325		646		282
Deferred:
State	7,385		2,214		—
Federal	77,566		23,419		(372		)
Total income tax expense (benefit) provision from continuing operations	$	98,136	$	26,363	$	(90	)

Reconciliation of Statutory Federal Income Tax Amount

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



	2013		2012			2011
	(In thousands)
Income from continuing operations before federal income taxes	$	251,328	$	98,199		$	108,332
Expected income tax at statutory rate	87,965		34,370			37,916
State income taxes	9,297		1,493			4,227
Other differences	874		292			(146		)
Changes in valuation allowance	—		(9,792		)	(42,087		)
Income tax expense (benefit) recorded for continuing operations	$	98,136	$	26,363		$	(90	)

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, 2013, 2012 and 2011 are estimated as follows:



	2013			2012			2011
	(In thousands)
Deferred tax assets:
Net operating loss carryforward	$	1,462		$	1,513		$	40,880
FASB ASC 718 compensation expense	634			762			520
Investment in pass through entities	—			—			78
AMT credit	7,968			1,643			1,000
Non-oil and gas property basis difference	—			—			103
Charitable contributions carryover	25			5			3
Unrealized loss on hedging activities	8,540			3,836			—
Foreign tax credit carryforwards	2,074			2,074			—
State net operating loss carryover	4,408			4,315			6,410
Total deferred tax assets	25,111			14,148			48,994
Valuation allowance for deferred tax assets	(4,743		)	(4,629		)	(12,347		)
Deferred tax assets, net of valuation allowance	20,368			9,519			36,647
Deferred tax liabilities:
Oil and gas property basis difference	72,173			15,049			35,637
Investment in pass through entities	8,799			3,618			—
Non-oil and gas property basis difference	249			227			—
Investment in nonconsolidated affiliates	46,495			9,232			—
Unrealized gain on hedging activities	—			—			10
Total deferred tax liabilities	127,716			28,126			35,647
Net deferred tax asset (liability)	$	(107,348	)	$	(18,607	)	$	1,000