Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of Components of Income Tax Expense (Benefit) |
The components of the Company’s income tax expense are as follows:
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Years Ended December 31, |
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2021 |
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2020 |
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2019 |
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(In thousands) |
| Current |
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| Federal |
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$— |
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$— |
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$— |
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| State |
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180 |
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3,447 |
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220 |
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| Total current income tax expense |
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180
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3,447
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220
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| Deferred |
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| Federal |
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— |
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126,903 |
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33,584 |
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| State |
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— |
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(8,296) |
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1,497 |
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| Total deferred income tax expense |
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—
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118,607
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35,081
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| Total income tax expense |
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$180
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$122,054
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$35,301
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| 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:
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Years Ended December 31, |
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2021 |
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2020 |
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2019 |
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(In thousands) |
| Income (loss) before income taxes |
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$365,331 |
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($2,411,567) |
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$103,229 |
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| Income tax expense (benefit) computed at the statutory federal income tax rate |
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76,720 |
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(506,429) |
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21,678 |
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| State income tax expense (benefit), net of federal benefit |
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2,905 |
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(11,827) |
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1,253 |
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| Non-deductible expenses related to capital structure transactions |
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(11,875) |
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— |
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— |
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| Non-deductible compensation |
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1,100 |
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— |
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90 |
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| Equity based compensation |
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564 |
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2,746 |
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1,222 |
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| Non-deductible merger expenses |
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— |
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— |
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5,537 |
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| Statutory depletion carryforward |
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— |
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— |
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5,381 |
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| Other |
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9,147 |
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(1,621) |
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140 |
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| Change in valuation allowance |
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(78,381) |
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639,185 |
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— |
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| Income tax expense |
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$180
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$122,054
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$35,301
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| Schedule of Deferred Tax Assets and Liabilities |
As of December 31, 2021 and 2020, the net deferred income tax assets and liabilities are comprised of the following:
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As of December 31, |
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2021 |
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2020 |
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(In thousands) |
| Deferred tax assets |
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| Oil and natural gas properties |
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$238,203 |
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$431,142 |
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| Federal net operating loss carryforward |
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221,900 |
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141,308 |
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| Net interest expense limitation |
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36,171 |
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— |
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| Derivative asset |
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30,826 |
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39,378 |
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| Operating lease right-of-use assets |
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8,650 |
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8,567 |
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| Asset retirement obligations |
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12,244 |
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10,134 |
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| Unvested RSU equity awards |
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4,939 |
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1,962 |
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| Other |
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12,892 |
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11,430 |
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| Total deferred tax assets |
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$565,825 |
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$643,921 |
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| Deferred income tax valuation allowance |
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(560,804) |
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(639,185) |
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| Net deferred tax assets |
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$5,021 |
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$4,736 |
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| Deferred tax liability |
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| Operating lease liabilities |
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($5,021) |
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($4,736) |
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| Total deferred tax liability |
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($5,021) |
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($4,736) |
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| Net deferred tax asset (liability) |
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$—
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$—
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