Income Taxes

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income Taxes

NOTE 18—  INCOME TAXES

Our wholly owned subsidiaries are treated as partnerships for federal income tax purposes but are subject to Texas margin taxes. Our controlling interest in a privately held C-Corp is subject to federal income tax. We recorded a deferred tax asset of $1.1million and $0.3million related to our operations located in Texas as of December 31, 2013and 2012 and a deferred tax liability of $3.2million and $0.4million as of December 31, 2013and 2012. The deferred tax asset and deferred tax liability are presented net as a deferred tax liability of $2.1million on the consolidated balance sheet as of December 31, 2013 and as a deferred tax liability of $0.1million on the consolidated balance sheet as of December 31, 2012. Our provision for income taxes was a net benefit of $0.4 million and a net expense of $0.5million and $0.9 million for years ended December 31, 2013, 2012 and 2011.

Income tax expense (benefit) is summarized as follows:

	December 31, 2013		December 31, 2012		December 31, 2011
Current	$		$		$
Federal		17		-		-
State		(66)		156		1
Total		(49)		156		1
Deferred
Federal		(202)		-		-
State		(102)		372		849
Total		(304)		372		849
Total expense income tax (benefit)		(353)		528		850

Federal income tax expense (benefit) differs from expected tax expense (computed by applying the statutory federal income tax rate of 34% to income (loss)  before income taxes) as follows:

	December 31, 2013			December 31, 2012			December 31, 2011
Computed expected tax rate		34.00	%		34.00	%		34.00	%
Tax adjustment for partnership income		(33.55)	%		(34.00)	%		(34.00)	%
Change in valuation allowance		(0.32)	%		-	%		-	%
Other		(0.69)	%		0.66	%		0.95	%
		(0.56)	%		0.66	%		0.95	%

The tax effects of temporary differences and net operating losses that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are as follows:

	December 31, 2013		December 31, 2012
Deferred Tax Assets	$		$
Asset retirement obligation		1,740		-
Post-retirement benefit costs		845		-
Net operating losses		2,043		-
Other		-		300
Total deferred tax assets		4,628		300
Valuation allowance		(3,582)		-
Net deferred tax assets		1,046		300
Deferred Tax Liabilities
Unrealized gain on investments		223		-
Depreciation		1,847		-
Pension costs		1,031		-
Other		59		402
Total deferred tax liabilities		3,160		402
Net Deferred Tax Asset (Liability)		(2,114)		(102)

As of December 31, 2013, the total NOL carryforward consists of $6 million of federal NOL carryforwards, which expire between 2026 and 2030. The Partnership has not fully recognized the deferred tax assets for certain items in advance of their deductibility for income tax purposes due to the uncertainty of realization. The benefit of these items will be recognized in future years to the extent that such deductions are used to reduce taxable income.

As of December 31, 2013, we have not identified any uncertain tax provisions.