Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 6 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The following table presents Callon’s net unrecognized tax benefits relating to its reported net losses and other temporary differences from operations, and as discussed in Note 1, amounts presented for December 31, 2011 have been adjusted:
 
 
June 30, 2012
 
December 31, 2011
Deferred tax asset:
 
 
 
 
Federal net operating loss carryforward
 
$
88,987

 
$
86,551

Statutory depletion carryforward
 
7,600

 
7,032

Alternative minimum tax credit carryforward
 
208

 
208

Asset retirement obligations
 
3,496

 
3,552

Other
 
7,064

 
9,182

Deferred tax asset before valuation allowance
 
107,355

 
106,525

Less: Valuation allowance
 
—

 
—

Total deferred tax asset
 
107,355

 
106,525

Deferred tax liability:
 
 

 
 

  Crude oil and natural gas properties
 
41,325

 
38,534

  Acquired assets (see Note 9)
 
2,065

 
2,248

Total deferred tax liability
 
43,390

 
40,782

Net deferred tax asset
 
$
63,965

 
$
65,743



The effective tax rate for the six months ended June 30, 2012 and 2011 was 30% and 0%, respectively. The variance is attributable to the impact of the valuation allowance against the Company's net deferred tax asset throughout 2011 until it was reversed as of December 31, 2011. The most significant change from 2011 to 2012 other than the valuation allowance was an increase in the expected statutory depletion rate in 2012. We do not have a liability for uncertain tax positions or any accrued interest or penalties as of June 30, 2012.