Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Provision

The following table shows the components of the Company’s income tax provision for the years ended December 31, 2019 and 2018 (in thousands):

	Years Ended December 31,
	2019			2018
Current:
Federal	$	—		$	—
State	—			—
Total current	—			—
Deferred:
Federal	(95		)	(1,398		)
State	(1,570		)	(1,072		)
Total deferred	(1,665		)	(2,470		)
Total income tax (expense) benefit	$	(1,665	)	$	(2,470	)

Reconciliation of Effective Tax Rate to Statutory Rate

A reconciliation of the effective tax rate to the statutory rate for the years ended December 31, 2019 and 2018 is as follows (in thousands, except percentages):

	Years Ended December 31,
	2019									2018
	U.S.			Canada			Total			U.S.			Canada			Total
Net income (loss) before income taxes	$	3,245		$	—		$	3,245		$	97,683		$	—		$	97,683
Statutory rate	21		%	27		%				21		%	27		%
Tax expense computed at statutory rate	681			—			681			20,513			—			20,513
Noncontrolling interest	(374		)	—			(374		)	(11,475		)	—			(11,475		)
Non-deductible general and administrative expenses	230			—			230			94			—			94
State return to accrual	286			—			286			—			—			—
Refundable tax credits	—			—			—			(505		)	—			(505		)
State income taxes, net of Federal benefit	1,285			—			1,285			1,208			—			1,208
Valuation allowance	(443		)	—			(443		)	(7,393		)	—			(7,393		)
State rate change	—			—			—			28			—			28
Total income tax expense	$	1,665		$	—		$	1,665		$	2,470		$	—		$	2,470
Effective tax rate	51.3		%	—		%	51.3		%	2.5		%	—		%	2.5		%

Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities at December 31, 2019 and 2018 are as follows (in thousands):  

	December 31,
	2019			2018
Deferred noncurrent income tax assets (liabilities):
Oil & gas properties	$	20,633		$	11,164
Basis difference in subsidiary obligation	(2,211		)	(2,211		)
Investment in Partnerships	(31,722		)	(18,517		)
Federal net operating loss carryforward	14,597			12,940
Net deferred noncurrent tax assets	1,297			3,376
Valuation allowance	(16,451		)	(16,865		)
Net deferred tax liability	$	(15,154	)	$	(13,489	)