Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of the Company’s income tax expense are as follows:

 
Years Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(In thousands)
Current
 
 
 
 
 
 
Federal
 

$—

 

$—

 

($48
)
State
 
220

 

 

Total current income tax expense (benefit)
 
220

 

 
(48
)
 
 
 
 
 
 
 
Deferred
 
 
 
 
 
 
Federal
 
33,584

 
3,594

 
(45
)
State
 
1,497

 
4,516

 
1,366

Total deferred income tax expense
 
35,081

 
8,110

 
1,321

Total income tax expense
 

$35,301

 

$8,110

 

$1,273


Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the income tax expense calculated at the federal statutory rate of 21% in 2019 and 2018 and 35% in 2017, to income tax expense is as follows:

 
Years Ended December 31,
 
 
2019
 
2018
 
2017
Income before income taxes
 

$103,229

 

$308,470

 

$121,697

Income tax expense computed at the statutory federal income tax rate
 
21,678

 
64,779

 
42,594

State income tax expense, net of federal benefit
 
1,253

 
3,568

 
1,273

Equity based compensation
 
1,222

 
(494
)
 

Non-deductible compensation
 
90

 
1,209

 

Non-deductible merger expenses
 
5,537

 

 

Statutory depletion carryforward
 
5,381

 

 

Other
 
140

 
168

 

Change in valuation allowance
 

 
(61,120
)
 
(42,594
)
Income tax expense
 

$35,301

 

$8,110

 

$1,273


Schedule of Deferred Tax Assets and Liabilities

 
As of December 31,
 
 
2019
 
2018
 
 
(In thousands)
Deferred tax assets
 
 
 
 
Federal net operating loss carryforward
 

$110,703

 

$151,497

Interest expense carryforward
 

 
7,335

Statutory depletion carryforward
 

 
5,381

Asset retirement obligations
 
9,981

 
2,347

Derivative asset
 
14,823

 

Unvested RSU equity awards
 
4,928

 
2,751

Operating lease right-of-use assets
 
29,897

 

Other
 
10,445

 
991

Total deferred tax assets
 

$180,777

 

$170,302

Deferred income tax valuation allowance
 

 

Net deferred tax assets
 

$180,777

 

$170,302

Deferred tax liability
 
 
 
 
Oil and natural gas properties
 

($38,546
)
 

($169,682
)
Derivative liability
 

 
(10,184
)
Operating lease liabilities
 
(26,511
)
 

Total deferred tax liability
 

($65,057
)
 

($179,866
)
Net deferred tax asset (liability)
 

$115,720

 

($9,564
)