Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
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,
2020 2019 2018
(In thousands)
Current
Federal $—  $—  $— 
State 3,447  220  — 
Total current income tax expense 3,447  220  — 
Deferred
Federal 126,903  33,584  3,594 
State (8,296) 1,497  4,516 
Total deferred income tax expense 118,607  35,081  8,110 
Total income tax expense $122,054  $35,301  $8,110 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the income tax expense calculated at the federal statutory rate of 21% to income tax expense is as follows:
Years Ended December 31,
2020 2019 2018
(In thousands)
Income (loss) before income taxes ($2,411,567) $103,229  $308,470 
Income tax expense (benefit) computed at the statutory federal income tax rate (506,429) 21,678  64,779 
State income tax expense (benefit), net of federal benefit (11,827) 1,253  3,568 
Equity based compensation 2,746  1,222  (494)
Non-deductible compensation —  90  1,209 
Non-deductible merger expenses —  5,537  — 
Statutory depletion carryforward —  5,381  — 
Other (1,621) 140  168 
Change in valuation allowance 639,185  —  (61,120)
Income tax expense $122,054  $35,301  $8,110 
Schedule of Deferred Tax Assets and Liabilities
As of December 31, 2020 and 2019, the net deferred income tax assets and liabilities are comprised of the following:
As of December 31,
2020 2019
(In thousands)
Deferred tax assets
Oil and natural gas properties $431,142  $— 
Federal net operating loss carryforward 141,308  110,703 
Derivative asset 39,378  14,823 
Operating lease right-of-use assets 8,567  29,897 
Asset retirement obligations 10,134  9,981 
Unvested RSU equity awards 1,962  4,928 
Other 11,430  10,445 
Total deferred tax assets $643,921  $180,777 
Deferred income tax valuation allowance (639,185) — 
Net deferred tax assets $4,736  $180,777 
Deferred tax liability
Oil and natural gas properties $—  ($38,546)
Derivative liability —  — 
Operating lease liabilities (4,736) (26,511)
Total deferred tax liability ($4,736) ($65,057)
Net deferred tax asset (liability) $—  $115,720