Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income Taxes

Schedule of components of income tax (expense) benefit

Income tax (expense) benefit for the years ended June 30, 2022 and 2021 is comprised of the following (in thousands):

	June 30, 2022		June 30, 2021
Current:
Federal	$	(6,309)	$	334
State		(1,062)		(454)
Total current income tax (expense) benefit		(7,371)		(120)
Deferred:
Federal		(913)		3,987
State		(229)		1,117
Total deferred income tax (expense) benefit		(1,142)		5,104
Total income tax (expense) benefit	$	(8,513)	$	4,984

Schedule of reconciliation of statutory federal tax rate to income tax (expense) benefit

The following table presents the reconciliation of the Company’s income taxes calculated at the statutory federal tax rate to the income tax (expense) benefit (in thousands).

			% of Income					% of Income
			Before					Before
	June 30, 2022		Income Taxes			June 30, 2021		Income Taxes
Income tax (expense) benefit computed at the statutory federal rate:	$	(8,640)		21.0	%	$	4,499	21.0	%
Reconciling items:
Return to provision adjustments		(2)		—	%		(20)	(0.1)	%
Depletion in excess of tax basis		190		(0.5)	%		176	0.8	%
State income taxes, net of federal tax benefit		(1,020)		2.5	%		523	2.4	%
Permanent differences related to stock-based compensation and other		3		—	%		(55)	(0.3)	%
Federal valuation allowance		623		(1.5)	%		(570)	(2.7)	%
EOR credit benefit		377		(0.9)	%		336	1.6	%
Other		(44)		0.1	%		95	0.6	%
Income tax (expense) benefit	$	(8,513)		20.7	%	$	4,984	23.3	%

Schedule of components of deferred taxes

The components of net deferred income tax assets (liabilities) recognized are as follows (in thousands):

	June 30, 2022		June 30, 2021
Deferred tax assets:
Non-qualified stock-based compensation	$	106	$	310
Net operating loss carry-forwards and other carry-forwards		8		365
Derivative losses		427		—
Asset retirement obligations		3,128		1,285
Other deferred tax assets		238		161
Gross deferred tax assets		3,907		2,121
Valuation allowance		—		(862)
Net deferred tax assets		3,907		1,259
Deferred tax liability:
Oil and natural gas properties		(11,006)		(7,216)
Total deferred tax liability		(11,006)		(7,216)
Net deferred tax liability	$	(7,099)	$	(5,957)