Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The following table shows the components of the Company’s income tax provision for the years ended December 31, 2015 and 2014 (in thousands):

	Years Ended December 31,
	2015			2014
Current:
Federal	$	—		$	—
State		91			—
Total current		91			—

Deferred:
Federal		(26,214	)		21,803
State		(319	)		302
Total deferred		(26,533	)		22,105
Total income tax (benefit) provision	$	(26,442	)	$	22,105

Reconciliation of Taxes Computed at Corporate Federal Statutory Income Tax Rate

The following is a reconciliation of taxes computed at the corporate federal statutory income tax rate of 34% to the reported income tax rate provision for the years ended December 31, 2015 and 2014 (in thousands, except percentages):

	Years Ended December 31,
	2015			2014
Net loss before income taxes	$	(143,097	)	$	(6,729	)
Tax benefit computed at Federal statutory rate		(48,653	)		(2,288	)
Non-taxable Oak Valley income prior to merger		—			(4,142	)
Deferred income tax arising from change in tax status of Oak Valley		—			28,347
Non-deductible general and administrative expenses		534			—
Return to accrual		(1,398	)		—
State income taxes, net of Federal benefit		(743	)		188
Valuation allowance		23,818			—
Total income tax (benefit) expense	$	(26,442	)	$	22,105
Effective tax rate		18.5	%		-328.5	%

Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands):

	Years Ended December 31,
	2015			2014
Deferred current income tax assets:
Asset retirement obligation	$	—		$	140
Deferred compensation		—			81
Other		—			5
Deferred current income tax assets		—			226
Deferred noncurrent income tax assets (liabilities):
Office and other equipment		(253	)		(381	)
Oil & gas properties		23,177			(29,730	)
Asset retirement obligation		1,788			1,952
Intangible assets		(7	)		130
Unrealized derivative gain		(1,284	)		(1,229	)
Federal net operating loss carryforward		339			—
Other		59			—
Net deferred noncurrent tax assets (liabilities)		23,819			(29,258	)
Valuation allowance		(23,819	)
Net deferred tax asset (liability)	$	—		$	(29,032	)