Provision For Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Federal and State Income Tax Provision (Benefit)


	Years Ended December 31,
	2019		2018
Current:
Federal	$	—	$	—
State		328		64
Total current		328		64

Deferred:
Federal		—		—
State		(126)		126
Total deferred		(126)		126
Total provision for income taxes	$	202	$	190

Reconciliation of Provision for (Benefit from) Income Taxes


	Years Ended December 31,
	2019		2018
Current:
Federal	$	—	$	—
State		328		64
Total current		328		64

Deferred:
Federal		—		—
State		(126)		126
Total deferred		(126)		126
Total provision for income taxes	$	202	$	190

A reconciliation of the provision for (benefit from) income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income (loss) before income taxes is as follows (in thousands):


	Years Ended December 31,
	2019		2018
Pre-tax net book income (loss)	$	(50,940)	$	15,881

Texas Margin Tax (a)		126		267
Return to accrual		76		9
Valuation allowance		—		(86)
Provision for income taxes	$	202	$	190

Effective income tax rate		(0.40%)		1.20%

(a)

Although the Texas Margin Tax is not considered a state income tax, it has the characteristics of an income tax since it is determined by applying a tax rate to a base that considers our Texas-sourced revenues and expenses.

Significant Components of Deferred Tax Assets and Deferred Tax Liabilities

The following table presents the significant components of deferred tax assets and deferred tax liabilities at the dates indicated (in thousands):


	December 31,
	2019		2018
Deferred tax assets (liabilities):
Derivative assets	$	(23)	$	(15)
Depreciable, depletable property, plant and equipment		21		(112)
Other		2		1
Deferred tax assets (liabilities):		—		(126)
Valuation allowance		—		—
Total deferred tax assets (liabilities)	$	—	$	(126)