Income Taxes	3 Months Ended
Mar. 31, 2019
Income Taxes
Income Taxes	12. Income Taxes For the three months ended March 31, 2019, the Company recorded no income tax expense or benefit. The significant difference between our effective tax rate and the federal statutory income tax rate of 21% is primarily due to the effect of changes in the Company’s valuation allowance. During the three months ended March 31, 2019, the Company’s valuation allowance increased by $4.6 million from December 31, 2018, bringing the total valuation allowance to $114.2 million at March 31, 2019. A valuation allowance has been recorded as management does not believe that it is more-likely-than-not that its deferred tax assets are realizable. The Company expects to incur a tax loss in the current year due to the flexibility in deducting or capitalizing current year intangible drilling costs; thus no current income taxes are anticipated to be paid.

Income Taxes

3 Months Ended

Mar. 31, 2019

12. Income Taxes

For the three months ended March 31, 2019, the Company recorded no income tax expense or benefit. The significant difference between our effective tax rate and the federal statutory income tax rate of 21% is primarily due to the effect of changes in the Company’s valuation allowance. During the three months ended March 31, 2019, the Company’s valuation allowance increased by $4.6 million from December 31, 2018, bringing the total valuation allowance to $114.2 million at March 31, 2019. A valuation allowance has been recorded as management does not believe that it is more-likely-than-not that its deferred tax assets are realizable.

The Company expects to incur a tax loss in the current year due to the flexibility in deducting or capitalizing current year intangible drilling costs; thus no current income taxes are anticipated to be paid.