INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The tax benefit (expense) for the Successor period indicated is comprised of the following (in thousands):


			Seven Months
	Year Ended		Ended
	December 31, 2019		December 31, 2018
Current tax benefit (expense):
Federal	$	—	$	—
State		13		(78)
Total		13		(78)
Deferred tax benefit (expense):
Federal		—		—
State		—		—
Total		—		—
Total tax benefit (expense):
Federal		—		—
State		13		(78)
Total	$	13	$	(78)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory federal income tax expense to the income tax expense or benefit from continuing operations provided for the Successor period is as follows (in thousands):


			Seven Months
	Year Ended		Ended
	December 31, 2019		December 31, 2018
Tax expense at statutory rate	$	29,049	$	(5,050)
State income tax benefit (expense), net of federal benefit		13		(62)
Changes in valuation allowance		(28,957)		4,999
Other		(92)		35
Total income tax benefit (expense)	$	13	$	(78)

Schedule of deferred tax assets and liabilities

The Successor’s net deferred tax is comprised of the following (in thousands):


	December 31, 2019		December 31, 2018
Deferred tax assets:
Net operating loss carryforward	$	30,643	$	19,086
Asset retirement obligation		19,909		26,948
Other		1,588		2,365
Total deferred tax assets before valuation allowance		52,140		48,399
Valuation allowance		(45,976)		(15,573)
Net deferred tax assets		6,164		32,826

Deferred tax liability:
Oil and natural gas properties		4,785		30,200
Derivative instruments		1,379		2,626
Total deferred tax liability		6,164		32,826

Total net deferred tax	$	—	$	—