11. Income Taxes

The current and deferred components of income tax expense (benefit) are as follows:

Years Ended December 31,	2016			2015
Current income tax expense	(In thousands)
Federal	$	5,057		$	288
State		341			74
Total current income tax expense		5,398			362
Deferred tax expense (benefit)
Federal		21,909			(15,130	)
Foreign		270			—
State		(172	)		(353	)
Total deferred income tax expense (benefit)	$	22,007		$	(15,483	)
Total income tax expense (benefit) from continuing operations		27,405			(15,121	)

Total income tax (benefit)/expense differs from the amounts computed by applying the U.S. statutory federal income tax rate to income (loss) before income taxes as a result of state income taxes, certain permanent differences and valuation allowances.

The following table provides a reconciliation of the Company’s actual income tax provision amounts from the expected income tax provision amount by applying the U.S. federal statutory corporate income tax rate of 35% for the periods indicated:

Years Ended December 31,	2016			2015
	(In thousands)
Expected income tax provision (benefit) at statutory rate	$	(23,416	)	$	(14,859	)
State tax, tax effected		52			11
Other		339			(40	)
Net operating loss write down		49,608			—
Rate difference		311			(233	)
Permanent differences		511			—
Actual income tax provision	$	27,405		$	(15,121	)

The tax effects of the Company’s temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:

December 31,	2016			2015
Deferred tax assets:	(In thousands)
Net operating loss carryforward	$	20,442		$	77,508
Organizational expenses		52			57
Stock based compensation		2,593			2,431
Intangibles		682			776
Other		3,812			1,419
		27,581			82,191
Deferred tax liabilities:
Oil and gas properties and other property and equipment, principally due to intangible drilling costs		(66,772	)		(86,790	)
Unrealized hedging loss (gain)		1,371			(11,414	)
Other		(200	)		—
Net deferred tax liabilities	$	(38,020	)	$	(16,013	)

The net operating loss carryforward as of December 31, 2016, approximates $199.9 million and begins to expire in 2030. The deferred tax asset recorded for the net operating losses does not include $2.2 million of deductions for excess stock-based compensation.

On December 22, 2016, the Company completed a public offering of 13.8 million of its Class A common stock. A change of ownership, as defined under the provisions of Section 382 of the Internal Revenue Code (“IRC”) occurred on this date. A portion of our net operating loss and tax credit carryforwards will be limited in future periods. IRC Section 382 places limitations on the amount of taxable income which may be offset by tax carryforward attributes, such as net operating losses or tax credits after a change of ownership event. As a result of this ownership change, certain of our accumulated net operating losses will be subject to an annual limitation regarding their utilization against taxable income in future periods. The 2016 change creates an estimated annual utilization limit of approximately $1.0 million on our ability to utilize net operating losses generated prior to the ownership change event. Built-in gains associated with our deferred tax attributes on the date of the ownership change may increase the net operating loss utilization limit in future periods, allowing additional utilization of net operating losses generated prior to the date of the ownership change. Due to the ownership change and the resulting limitation on the utilization of net operating loss generated prior to the change, an estimated $141.7 million of the net operating loss carryforwards have been written off in 2016. If the Company were to experience another ownership change in future periods, the net operating loss carryforwards may be subject to additional utilization limits. The Company has approximately $10 million of percentage depletion carryover which has no expiration.

The Company files income tax returns in the United States federal jurisdiction and in various state jurisdictions. At December 31, 2016, there are no current examinations of federal or state jurisdictions in progress. The Company’s income tax returns related to fiscal years ended December 31, 2010 through 2015 remain open to possible examination by the tax authorities. The Company has not recorded any interest or penalties associated with uncertain tax positions.