Callon Petroleum Company 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 Deferred Tax Assets and Liabilities

The following table presents Callon’s net tax benefits relating to its reported net losses and other temporary differences from operations:



	For the Year Ended December 31
	2013		2012
Deferred tax asset
Federal net operating loss carryforward	$	70,365	$	87,774
Statutory depletion carryforward	8,880		8,184
Alternative minimum tax credit carryforward	208		208
Asset retirement obligations	1,024		3,357
Other	7,575		9,571
Total deferred tax asset	88,052		109,094
Deferred tax liability
Oil and natural gas properties	26,412		41,336
Other	32		3,375
Total deferred tax liability	26,444		44,711
Net deferred tax asset	$	61,608	$	64,383

Summary of Operating Loss Carryforwards

If not utilized, the Company’s federal operating loss (“NOL”) carryforwards will expire as follows:



			Year Expiring
	Total		2014-2019		2020-2022		2023-2025		2026-2028		2029-2033
Federal NOL carryforwards	$	201,042	$	—	$	48,986	$	65,878	$	32,714	$	53,464

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Below is a reconciliation of the reported amount of income tax expense attributable to continuing operations to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.



	For the Years Ended December 31,
Component of Income Tax Rate Reconciliation	2013			2012			2011
Income tax expense computed at the statutory federal income tax rate	35		%	35		%	35		%
Change in valuation allowance	—		%	—		%	(227		)%
Percentage depletion carryforward	(8		)%	(22		)%	(3		)%
State taxes net of federal benefit	4		%	6		%	—		%
Restricted stock and stock options	5		%	2		%	—		%
Section 162(m)	6		%	22		%	—		%
Other	—		%	4		%	4		%
Effective income tax rate	42		%	47		%	(191		)%

	For the Years Ended December 31,
Components of Income Tax Expense	2013			2012			2011
Current federal income tax benefit	$	—		$	—		$	—
Current state income tax expense	326			110			—
Deferred federal income tax expense	2,652			1,777			13,176
Deferred state income tax expense	126			336			—
Valuation allowance	—			—			(82,459		)
Total income tax expense (benefit)	$	3,104		$	2,223		$	(69,283	)