Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Current and Deferred Components of Income Tax (Benefit) Expense

The income tax provision is as follows:



	Year Ended December 31,
In thousands	2018			2017
Current income tax (benefit) expense
Federal	$	(1,100	)	$	59
State	291			113
Total current income tax (benefit) expense	(809		)	172
Deferred tax expense (benefit)
Federal	7,686			(29,125		)
State	(85		)	(66		)
Total deferred income tax expense (benefit)	7,601			(29,191		)
Total income tax expense (benefit)	$	6,792		$	(29,019	)

Difference between Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes

The following table provides a reconciliation of Lonestar'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 21% and 35% for the years ended December 31, 2018 and 2017, respectively:



	Year Ended December 31,
In thousands	2018			2017
Expected income tax expense (benefit) at statutory rate	$	5,489		$	(25,370	)
Permanent differences	123			(357		)
Adjustment to NOL	1,119			—
Remeasurement of deferred balances due to federal rate change	—			(4,140		)
State tax, tax effected	146			97
Prior year differences	(210		)	779
Stock-based compensation differences	112			—
Other	13			(28		)
Actual income tax expense (benefit)	$	6,792		$	(29,019	)

Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities as of December 31, 2018 and 2017 are as follows:



	December 31,
In thousands	2018			2017
Deferred tax assets
Net operating loss carryforward	$	17,765		$	20,874
Stock-based compensation	1,973			1,891
Intangibles	304			351
Derivative instruments	—			4,429
Interest expense limitation	2,254			—
Organizational expenses and other	4,477			2,900
Total deferred tax assets	$	26,773		$	30,445
Deferred tax liabilities
Oil and gas properties, and other property and equipment, principally due to intangible drilling costs	$	(34,332	)	$	(35,214	)
Derivative instruments	(4,811		)	—
Net deferred tax liabilities	$	(12,370	)	$	(4,769	)