INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

INCOME TAXES

Schedule of income tax benefit (provision)

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

	Years Ended December 31,
	2023		2022
Current:
Federal	$	—	$	—
State		—		—
		—		—
Deferred:
Federal		—		—
State		—		—
		—		—
Total income tax benefit (provision)	$	—	$	—

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 periods indicated below, as follows (in thousands):

	Years Ended December 31,
	2023		2022
Expected tax benefit (provision)	$	640	$	(3,893)
Change in valuation allowance and related items		(15)		6,689
Attribute reduction		—		(2,704)
Permanent adjustments		(2)		(5)
Employee retention credit		—		—
Non-deductible compensation		(95)		(56)
Preferred equity transaction costs		—		—
Merger transaction costs		(541)		—
Other		13		(31)
Total income tax benefit (provision)	$	—	$	—

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):

	December 31, 2023		December 31, 2022
Deferred noncurrent income tax assets:
Net operating loss carry-forwards	$	172,654	$	151,905
Built in loss adjustment Section 382		693		693
Capital loss carryforward		114,725		114,725
Stock-based compensation expense		1,693		2,334
Asset retirement obligations		3,666		2,558
Book-tax differences in property basis		106,045		129,427
Unrealized hedging transactions		4,070		8,676
Disallowed interest Section 163(j)		20,712		14,905
Embedded derivative liability		437		459
Operating lease liability		228		74
GAAP amortization - discount on MOIC derivative		—		—
Amortization of debt issuance costs		323		—
Other		874		874
Gross deferred noncurrent income tax assets		426,120		426,630
Valuation allowance		(425,019)		(425,005)
Deferred noncurrent income tax assets	$	1,101	$	1,625
Deferred noncurrent income tax liabilities:
Basis difference in debt	$	(615)	$	(885)
Investment in unconsolidated subsidiary		(270)		(580)
Amortization of debt issuance costs		—		(86)
Lease right of use		(216)		(74)
Deferred noncurrent income tax liabilities	$	(1,101)	$	(1,625)
Net noncurrent deferred income tax assets (liabilities)	$	—	$	—