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, 2012

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
	2012		2011
Deferred tax asset:
Federal net operating loss carryforward	$	87,774	$	89,457
Statutory depletion carryforward	8,184		7,032
Alternative minimum tax credit carryforward	208		208
Asset retirement obligations	3,357		3,552
Other	9,571		9,182
Total deferred tax asset	109,094		109,431
Deferred tax liability:
Crude oil and natural gas properties	41,336		40,782
Other	3,375		2,906
Total deferred tax liability	44,711		43,688
Net deferred tax asset	$	64,383	$	65,743

Summary of Operating Loss Carryforwards

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



			Year Expiring
	Total		2013-2018		2019-2021		2022-2024		2025-2027		2028-2031
Federal NOL carryforwards	$	250,783	$	—	$	56,929	$	101,495	$	39,714	$	52,645

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	2012			2011			2010
Income tax expense computed at the statutory federal income tax rate	35		%	35		%	35		%
Change in valuation allowance	—		%	(227		)%	(18		)%
Percentage depletion carryforward	(22		)%	(3		)%	(15		)%
State taxes net of federal benefit	6		%	—		%	—		%
Section 162m	22		%	—		%	—		%
Restricted stock and stock options	2		%	—		%	—		%
Other	4		%	4		%	—		%
Effective income tax rate	47		%	(191		)%	2		%

	For the years ended December 31,
Components of Income Tax Expense	2012			2011			2010
Current federal income tax benefit	$	—		$	—		$	(174	)
Current state income tax expense	110			—			—
Deferred federal income tax expense	1,777			13,176			1,503
Change in deferred rate	336			—			—
Valuation allowance	—			(82,459		)	(1,503		)
Total income tax expense (benefit)	$	2,223		$	(69,283	)	$	(174	)