Income Tax (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax

Summary of components of the provision for income tax expense (benefit)

The components of the provision for income tax expense (benefit) are as follows (in thousands):

	Year ended December 31,
	2013			2012			2011
Current income tax (benefit) expense:
Federal	$	(11,078	)	$	(2,964	)	$	15,039
State		(130	)		598			2,539
Total current		(11,208	)		(2,366	)		17,578
Deferred income tax expense (benefit):
Federal		24,382			38,531			(4,732	)
State		(505	)		2,163			803
Total deferred		23,877			40,694			(3,929	)
Provision for income tax	$	12,669		$	38,328		$	13,649

Schedule of income tax rate reconciliation

A reconciliation of the provision for income tax and the amount computed by applying the federal statutory rate of 35% to the income before income taxes for each of the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):

Year ended December 31, 2013:

	Corporation			Partnership			Eliminations			Consolidated
Income before provision for income tax	$	31,145		$	42,131		$	(20,162	)	$	53,114
Federal statutory rate		35	%		0	%		0	%
Federal income tax at statutory rate		10,901			—			—		$	10,901
Permanent items		40			—			—			40
State income taxes net of federal benefit		(729	)		39			—			(690	)
Prior period adjustments and tax rate changes		(147	)		—			—			(147	)
Provision on income from Class A units(1)		2,617			—			—			2,617
Other		(52	)		—			—			(52	)
Provision for income tax	$	12,630		$	39		$	—		$	12,669

Year ended December 31, 2012:

	Corporation			Partnership			Eliminations			Consolidated
Income before provision for income tax	$	74,192		$	178,817		$	2,284		$	255,293
Federal statutory rate		35	%		0	%		0	%
Federal income tax at statutory rate		25,967			—			—		$	25,967
Permanent items		28			—			—			28
State income taxes net of federal benefit		688			1,689			—			2,377
Current year change in valuation allowance		(5	)		—			—			(5	)
Prior period adjustments and tax rate changes		(2,517	)		—			—			(2,517	)
Provision on income from Class A units(1)		12,412			—			—			12,412
Other		66			—			—			66
Provision for income tax	$	36,639		$	1,689		$	—		$	38,328

Year ended December 31, 2011:

	Corporation			Partnership			Eliminations			Consolidated
Income before provision for income tax	$	3,813		$	122,642		$	(8,006	)	$	118,449
Federal statutory rate		35	%		0	%		0	%
Federal income tax at statutory rate		1,335			—			—		$	1,335
Permanent items		36			—			—			36
State income taxes net of federal benefit		102			2,742			—			2,844
Current year change in valuation allowance		(64	)		—			—			(64	)
Prior period adjustments and tax rate changes		163			—			—			163
Provision on income from Class A units(1)		9,323			—			—			9,323
Other		12			—			—			12
Provision for income tax	$	10,907		$	2,742		$	—		$	13,649

(1)

The Corporation and the General Partner own Class A units of the Partnership that were received in the merger of the Corporation and the Partnership completed in February 2008. The Class A units share, on a pro-rata basis, in income or loss of the Partnership, except for items attributable to the Partnership's ownership or sale of shares of the Corporation's common stock (as discussed in Note 2). The provision for income tax on income from Class A units includes intra period allocations to continued operations and excludes allocations to equity.

Schedule of deferred tax assets and liabilities resulting from temporary book-tax differences

	December 31,
	2013			2012
Current deferred tax assets:
Accruals and reserves	$	221		$	98
Derivative instruments		4,845			5,183
Net operating loss carryforward		18,134			—
Capital loss carryforward		904			—
State tax credit		74			—
Current deferred tax assets		24,178			5,281
Valuation allowance		(978	)		—
Deferred income taxes		23,200			5,281
Long-term deferred tax assets:
Accruals and reserves		329			113
Derivative instruments		10,102			9,915
Phantom unit compensation		3,328			2,624
Capital loss carryforward		—			904
Net operating loss carryforward		9,283			1
Long-term deferred tax assets		23,042			13,557
Valuation allowance		—			(904	)
Net long-term deferred tax assets		23,042			12,653
Long-term deferred tax liabilities:
Property, plant and equipment and intangibles		(4,755	)		(3,861	)
Investment in affiliated groups		(305,853	)		(198,220	)
Long-term deferred tax liabilities		(310,608	)		(202,081	)
Long-term subtotal		(287,566	)		(189,428	)
Net deferred tax liability	$	(264,366	)	$	(184,147	)