Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Components of Income Tax Provision

The following table shows the components of the Company’s income tax provision for the years ended December 31, 2021, 2020 and 2019 (in thousands):


	Years Ended December 31,
	2021		2020		2019
Current:
Federal	$	—	$	—	$	—
State	(625)		(545)		—
Total current	(625)		(545)		—
Deferred:
Federal	(901)		147		(95)
State	(333)		510		(1,570)
Total deferred	(1,234)		657		(1,665)
Total income tax (expense) benefit	$	(1,859)	$	112	$	(1,665)

Schedule of Reconciliation of Effective Tax Rate to Statutory Rate

A reconciliation of the effective tax rate to the federal statutory rate for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands, except percentages):


	Years Ended December 31,
	2021			2020			2019
Net income (loss) before income taxes	$	63,365		$	(29,546)		$	3,245
Statutory rate	21		%	21		%	21		%
Tax (expense) benefit computed at statutory rate	(13,307)			6,204			(681)
Noncontrolling interest	5,613			(3,349)			374


Non-deductible general and administrative expenses	455			(1,943)			(230)
State return to accrual	—			(157)			(286)

State income taxes, net of Federal benefit	(958)			(35)			(1,285)
Valuation allowance	6,338			(608)			443



Total income tax (expense) benefit	$	(1,859)		$	112		$	(1,665)
Effective tax rate	(2.9)		%	(0.4)		%	(51.3)		%

Schedule of Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows (in thousands):


	Years Ended December 31,
	2021		2020
Deferred noncurrent income tax assets (liabilities):

Oil & gas properties	$	20,909	$	18,929

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



Investment in Partnerships	(27,463)		(25,760)
Federal net operating loss carryforward	16,544		11,590

Net deferred noncurrent tax (liability) asset	7,779		2,548
Valuation allowance	(23,510)		(17,044)
Net deferred tax liability	$	(15,731)	$	(14,496)