Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The following table shows the components of the Company’s income tax provision for the years ended December 31, 2016, 2015 and 2014 (in thousands):

	Years Ended December 31,
	2016		2015			2014
Current:
Federal	$	—	$	—		$	—
State		—		91			—
Total current		—		91			—

Deferred:
Federal		515		(26,214	)		21,803
State		13		(319	)		302
Total deferred		528		(26,533	)		22,105
Total income tax provision (benefit)	$	528	$	(26,442	)	$	22,105

Reconciliation of Effective Tax Rate to Statutory Rate

A reconciliation of the effective tax rate to the statutory rate for the year ended December 31, 2016 rate is as follows (in thousands, except percentages):

	U.S.			Canada			Total
Net loss before income taxes	$	(54,032	)	$	19		$	(54,013	)
Statutory rate		34	%		26	%
Tax benefit computed at statutory rate		(18,370	)		5			(18,365	)
Non-deductible impairment of goodwill		5,961			—			5,961
Non-deductible transaction costs		878			—			878
Non-deductible general and administrative expenses		5			—			5
Return to accrual		15			—			15
State income taxes, net of Federal benefit		(128	)		—			(128	)
Valuation allowance		12,167			(5	)		12,162
Total income tax expense	$	528		$	—		$	528
Effective tax rate		-1.0	%		0.0	%		-1.0	%

A reconciliation of the effective tax rate to the statutory rate for the years ended December 31, 2015 and 2014 rates is as follows (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, 2016 and 2015 are as follows (in thousands):

	December 31,
	2016			2015
Deferred noncurrent income tax assets (liabilities):
Office and other equipment		(48	)		(253	)
Oil & gas properties		7,428			23,177
Asset retirement obligation		2,042			1,788
Basis difference in subsidiary obligation		(4,226	)		—
Intangible assets		36			(7	)
Unrealized derivative loss (gain)		2,145			(1,284	)
Stock-based compensation		1,148			—
Federal net operating loss carryforward		15,109			339
Other		186			59
Net deferred noncurrent tax assets		23,820			23,819
Valuation allowance		(39,596	)		(23,819	)
Net deferred tax (liability) asset	$	(15,776	)	$	—