Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Current and Deferred Components of Income Tax (Benefit) Expense

The income tax provision is as follows:



	Year Ended December 31,
In thousands	2019			2018
Current income tax (benefit) expense
Federal	$	(591	)	$	(1,100	)
State	(464		)	291
Total current income tax benefit	(1,055		)	(809		)
Deferred tax (benefit) expense
Federal	(20,989		)	7,686
State	673			(85		)
Valuation allowance	8,876			—
Total deferred income tax (benefit) expense	(11,440		)	7,601
Total income tax (benefit) expense	$	(12,495	)	$	6,792

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% for the years ended December 31, 2019 and 2018, respectively:



	Year Ended December 31,
In thousands	2019			2018
Expected income tax expense (benefit) at statutory rate	$	(24,258	)	$	5,489
Permanent differences	(48		)	123
Return to provision adjustment	2,567			1,119
Change in valuation allowance	8,876			—
Other	368			61
Actual income tax (benefit) expense	$	(12,495	)	$	6,792

Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows:



	December 31,
In thousands	2019			2018
Deferred tax assets
Net operating loss carryforward	$	27,025		$	17,765
Stock-based compensation	922			1,973
Intangibles	257			304
Derivative instruments	606			—
Interest expense limitation	19,243			2,254
Organizational expenses and other	3,306			4,477
Total deferred tax assets	$	51,359		$	26,773
Deferred tax liabilities
Oil and gas properties, and other property and equipment, principally due to intangible drilling costs	$	(43,414	)	$	(34,332	)
Derivative instruments	—			(4,811		)
Net deferred tax assets (liabilities)	7,945			(12,370		)
Valuation allowance for deferred tax assets	(8,876		)	—
Net deferred tax liability, net of valuation allowance	$	(931	)	$	(12,370	)