Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The following table shows the components of the Company’s income tax provision for the years ended December 31, 2020 and 2019 (in thousands):


	Years Ended December 31,
	2020		2019
Current:
Federal	$	—	$	—
State	(545)		—
Total current	(545)		—
Deferred:
Federal	147		(95)
State	510		(1,570)
Total deferred	657		(1,665)
Total income tax benefit (expense)	$	112	$	(1,665)

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, 2020 and 2019 is as follows (in thousands, except percentages):


	Years Ended December 31,
	2020									2019
	U.S.			Canada			Total			U.S.			Canada			Total
Net income (loss) before income taxes	$	(29,546)		$	—		$	(29,546)		$	3,245		$	—		$	3,245
Statutory rate	21		%	27		%	21		%	21		%	27		%	21		%
Tax expense computed at statutory rate	(6,204)			—			(6,204)			681			—			681
Noncontrolling interest	3,349			—			3,349			(374)			—			(374)


Non-deductible general and administrative expenses	1,943			—			1,943			230			—			230
State return to accrual	157			—			157			286			—			286
Refundable tax credits	—			—			—			—			—			—
State income taxes, net of Federal benefit	35			—			35			1,285			—			1,285
Valuation allowance	608			—			608			(443)			—			(443)

State rate change	—			—			—			—			—			—

Total income tax (benefit) expense	$	(112)		$	—		$	(112)		$	1,665		$	—		$	1,665
Effective tax rate	0.4		%	—		%	0.4		%	51.3		%	—		%	51.3		%

Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities at December 31, 2020 and 2019 are as follows (in thousands):


	Years Ended December 31,
	2020		2019
Deferred noncurrent income tax assets (liabilities):

Oil & gas properties	$	18,929	$	20,633

Basis difference in subsidiary obligation	(2,211)		(2,211)



Investment in Partnerships	(25,760)		(31,722)
Federal net operating loss carryforward	11,590		14,597

Net deferred noncurrent tax assets	2,548		1,297
Valuation allowance	(17,044)		(16,451)
Net deferred tax liability	$	(14,496)	$	(15,154)