Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

The components of the income tax expense were as follows for the periods indicated (in thousands):



	Year Ended December 31,
	2019		2018		2017
Federal:
Current	$	—	$	—	$	(44	)
Deferred	58,310		101,023		(423		)
Total federal	58,310		101,023		(467		)
State, net of federal benefit:
Deferred	3,127		4,452		6,175
Total state	3,127		4,452		6,175
Income tax expense	$	61,437	$	105,475	$	5,708

Schedule of Reconciliation of Income Tax (Benefit) Provision with Income Tax Expense at Federal Statutory Rate

The following table reconciles the income tax expense with income tax expense at the federal statutory rate for the periods indicated (in thousands):



	Year Ended December 31,
	2019			2018			2017
Income before income taxes	$	271,855		$	551,444		$	129,628
Less: net income before income taxes attributable to noncontrolling interest	(35,710		)	(77,446		)	(18,725		)
Income attributable to Parsley Energy, Inc. Stockholders before income taxes	236,145			473,998			110,903

Income taxes at the federal statutory rate	49,591			99,539			38,816
State income taxes, net of federal benefit	3,127			4,452			6,175
Provision to return adjustment	2,352			(1,018		)	178
Permanent and other	(140		)	(2,285		)	166
TRA liability change	—			92			(12,547		)
Valuation allowance	6,507			4,695			(26,657		)
Valuation allowance due to the reduction in federal statutory rate	—			—			(24,356		)
Income tax provision due to change in federal statutory rate	—			—			23,933
Income tax expense	$	61,437		$	105,475		$	5,708

Net income attributable to Parsley Energy, Inc. Stockholders	$	175,212		$	369,127		$	106,774
Net income attributable to noncontrolling interest	$	35,206		$	76,842		$	17,146

Schedule of Tax Effects of Significant Portions of the Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows (in thousands):



	December 31,
	2019			2018
Assets:
Asset retirement obligations	$	4,923		$	4,723
Deferred stock-based compensation	7,196			6,718
Derivative fair value loss	5,985			—
Accrued compensation	5,642			4,650
Lease liabilities	27,089			—
Earnings in investment in subsidiary	182			—
Other	1,910			—
Net operating loss carryforward	170,520			299,250
Total deferred tax assets	223,447			315,341
Less: Valuation allowance	(20,382		)	(13,862		)
Net deferred tax assets	203,065			301,479
Liabilities:
Book basis of oil and natural gas properties in excess of tax basis	(369,474		)	(423,102		)
Derivative fair value gain	—			(9,450		)
Earnings in investment in subsidiary	—			(156		)
Lease right-of-use assets	(27,000		)	—
Other	—			(294		)
Total deferred tax liabilities	(396,474		)	(433,002		)
Net deferred tax liability	$	(193,409	)	$	(131,523	)

Schedule Of Open Tax Years

The Company’s earliest open years in its key jurisdictions are as follows:



U.S. Federal	2016
State of Texas	2015