Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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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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2023 |
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2022* |
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2021* |
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(In thousands) |
| Current |
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| Federal |
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($2,271) |
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$2,977 |
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$— |
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| State |
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(266) |
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4,537 |
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180 |
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Total current income tax expense (benefit) |
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(2,537) |
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7,514
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180
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| Deferred |
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| Federal |
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(188,911) |
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— |
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— |
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| State |
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1,640 |
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6,308 |
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— |
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Total deferred income tax expense (benefit) |
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(187,271) |
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6,308 |
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— |
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Total income tax expense (benefit) |
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($189,808) |
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$13,822
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$180
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*Financial information for the prior period has been recast to reflect retrospective application of the successful efforts method of accounting. See “Note 2 - Summary of Significant Accounting Policies” for additional information.
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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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2023 |
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2022* |
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2021* |
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(In thousands) |
Income before income taxes |
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$211,393 |
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$1,033,265 |
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$133,741 |
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Income tax expense computed at the statutory federal income tax rate |
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44,393 |
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216,986 |
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28,086 |
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| State income tax expense (benefit), net of federal benefit |
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1,430 |
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11,393 |
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2,905 |
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| Non-deductible expenses related to capital structure transactions |
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— |
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(2,896) |
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(11,875) |
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| Equity based compensation |
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385 |
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(1,496) |
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564 |
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| Other |
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2,364 |
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(1,223) |
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10,247 |
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| Change in valuation allowance |
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(238,380) |
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(208,942) |
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(29,747) |
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Income tax expense (benefit) |
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($189,808) |
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$13,822
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$180
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*Financial information for the prior period has been recast to reflect retrospective application of the successful efforts method of accounting. See “Note 2 - Summary of Significant Accounting Policies” for additional information.
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| Schedule of Deferred Tax Assets and Liabilities |
As of December 31, 2023 and 2022, 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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2023 |
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2022* |
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(In thousands) |
| Deferred tax assets |
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Federal net operating loss carryforward and credits |
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$412,401 |
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$359,784 |
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| Net interest expense limitation |
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84,202 |
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74,628 |
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| Derivative instruments |
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6,507 |
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12,758 |
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| Operating lease right-of-use assets |
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15,724 |
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13,180 |
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| Asset retirement obligations |
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10,165 |
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13,049 |
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| Unvested RSU equity awards |
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6,214 |
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5,391 |
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| Other |
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4,260 |
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11,675 |
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| Total deferred tax assets |
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$539,473 |
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$490,465 |
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| Deferred income tax valuation allowance |
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— |
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(238,380) |
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| Net deferred tax assets |
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$539,473 |
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$252,085 |
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| Deferred tax liability |
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| Oil and natural gas properties |
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($346,050) |
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($248,508) |
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| Operating lease liabilities |
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(12,460) |
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(9,885) |
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| Total deferred tax liability |
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($358,510) |
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($258,393) |
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| Net deferred tax asset (liability) |
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$180,963
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($6,308) |
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*Financial information for the prior period has been recast to reflect retrospective application of the successful efforts method of accounting. See “Note 2 - Summary of Significant Accounting Policies” for additional information.
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