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, 2014

Schedule of Components of Income Tax Expense (Benefit)

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



	2014		2013		2012
	(In thousands)
Current:
State	$	14,384	$	6,860	$	84
Federal	16,039		6,325		646
Deferred:
State	4,314		7,385		2,214
Federal	118,604		77,566		23,419
Total income tax expense provision from continuing operations	$	153,341	$	98,136	$	26,363

Reconciliation of Statutory Federal Income Tax Amount

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



	2014		2013		2012
	(In thousands)
Income from continuing operations before federal income taxes	$	400,744	$	251,328	$	98,199
Expected income tax at statutory rate	140,259		87,965		34,370
State income taxes	11,570		9,297		1,493
Other differences	1,512		874		292
Changes in valuation allowance	—		—		(9,792		)
Income tax expense recorded for continuing operations	$	153,341	$	98,136	$	26,363

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, 2014, 2013 and 2012 are estimated as follows:



	2014			2013			2012
	(In thousands)
Deferred tax assets:
Net operating loss carryforward	$	1,091		$	1,462		$	1,513
FASB ASC 718 compensation expense	1,562			634			762
AMT credit	24,053			7,968			1,643
Charitable contributions carryover	150			25			5
Unrealized loss on hedging activities	—			8,540			3,836
Foreign tax credit carryforwards	2,074			2,074			2,074
Accrued liabilities	1,260			—			—
State net operating loss carryover	2,627			4,408			4,315
Total deferred tax assets	32,817			25,111			14,148
Valuation allowance for deferred tax assets	(3,145		)	(4,743		)	(4,629		)
Deferred tax assets, net of valuation allowance	29,672			20,368			9,519
Deferred tax liabilities:
Oil and gas property basis difference	183,767			72,173			15,049
Investment in pass through entities	38,315			8,799			3,618
Non-oil and gas property basis difference	849			249			227
Investment in nonconsolidated affiliates	—			46,495			9,232
Unrealized gain on hedging activities	37,006			—			—
Total deferred tax liabilities	259,937			127,716			28,126
Net deferred tax liability	$	(230,265	)	$	(107,348	)	$	(18,607	)