INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Schedule of income tax benefit (provision)

Income tax benefit (provision) for the indicated periods is comprised of the following (in thousands):

	Successor		Predecessor
	Period from		Period from
	October 2, 2019		January 1, 2019
	through		through		Years Ended December 31,
	December 31, 2019		October 1, 2019		2018		2017
Current:
Federal	$	—	$	—	$	—	$	5,000
State		—		—		—		—
		—		—		—		5,000
Deferred:
Federal		—		95,791		(95,791)		—
State		—		—		—		—
		—		95,791		(95,791)		—
Total income tax benefit (provision)	$	—	$	95,791	$	(95,791)	$	5,000

Schedule of differences between the actual income tax benefit (provision) and the expected income tax benefit (provision)

The actual income tax benefit (provision) differs from the expected income tax benefit (provision) as computed by applying the United States federal corporate income tax rate of 21% for the period from October 2, 2019 through December 31, 2019 (Successor), the period from January 1, 2019 through October 1, 2019 (Predecessor) and the year ended December 31, 2018 (Predecessor) and 35% for the year ended December 31, 2017 (Predecessor), as follows (in thousands):

	Successor		Predecessor
	Period from		Period from
	October 2, 2019		January 1, 2019
	through		through		Years Ended December 31,
	December 31, 2019		October 1, 2019		2018		2017
Expected tax benefit (provision)	$	2,196	$	262,888	$	(29,767)	$	(185,740)
State income tax expense, net of federal benefit		—		—		—		(2,587)
Stock-based compensation		—		(6,093)		(350)		—
Change in state rate		—		—		—		(10,121)
Capital loss		—		271,248		—		—
Increase (reduction) in deferred tax asset		—		(9,287)		(201,903)		95,907
Change in valuation allowance and related items		(1,506)		(186,851)		136,432		392,846
Attribute reduction				(229,385)		—		—
Tax Cuts and Jobs Act of 2017		—		—		—		(280,874)
Permanent adjustments		(690)		(7,241)		(203)		—
Other		—		512		—		(4,431)
Total income tax benefit (provision)	$	—	$	95,791	$	(95,791)	$	5,000

Schedule of components of net deferred income tax assets (liabilities)

The components of net deferred income tax assets (liabilities) recognized are as follows (in thousands):

	Successor		Predecessor
	December 31, 2019		December 31, 2018
Deferred noncurrent income tax assets:
Net operating loss carry-forwards	$	46,382	$	204,751
Built in loss adjustment Section 382		142,285		88,835
Capital loss carryforward		74,848		—
Stock-based compensation expense		—		8,509
Asset retirement obligations		2,224		1,011
Book-tax differences in property basis		200,478		—
Unrealized hedging transactions		1,618		—
Disallowed interest Section 163(j)		7,722		3,370
Basis difference in debt		2,142		—
Operating lease liability		666		—
Other		991		1,917
Gross deferred noncurrent income tax assets		479,356		308,393
Valuation allowance		(478,690)		(290,333)
Deferred noncurrent income tax assets	$	666	$	18,060
Deferred noncurrent income tax liabilities:
Basis difference in debt	$	—	$	(5,507)
Book-tax differences in property basis		—		(96,414)
Unrealized hedging transactions		—		(11,930)
Lease right of use		(666)		—
Deferred noncurrent income tax liabilities	$	(666)	$	(113,851)
Net noncurrent deferred income tax assets (liabilities)	$	—	$	(95,791)