Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were as follows (in thousands):

	Year Ended December 31,
	2021			2020			2019
Current income tax expense (benefit):
United States	$	(5	)	$	(499	)	$	437
Mexico		(993	)		185			1,183
Total current income tax expense (benefit)	$	(998	)	$	(314	)	$	1,620
Deferred income tax expense (benefit):
United States	$	(1,067	)	$	35,923		$	(37,131	)
Mexico		430			(26	)		(630	)
Total deferred income tax expense (benefit)	$	(637	)	$	35,897		$	(37,761	)
Total income tax expense (benefit)	$	(1,635	)	$	35,583		$	(36,141	)

Summary of Reconciliation of Income Taxes Computed at U.S. Federal Statutory Tax Rate to Income Tax Expense (Benefit)

A reconciliation of income tax expense (benefit) computed at the U.S. federal statutory tax rate to the Company’s income tax expense (benefit) is as follows (in thousands, except percentages):

	Year Ended December 31,
	2021			2020			2019
Income tax expense (benefit) at the federal statutory tax rate	$	(38,763	)	$	(90,304	)	$	4,744
State income taxes		(674	)		(14,215	)		1,396
Impact of foreign operations		(11,920	)		(1,030	)		(4,948	)
Effect of change in state rate		2,008			—			—
Prior year taxes		486			(4,237	)		(1,950	)
Other adjustments		—			—			137
Legal entity reorganization		—			(17,566	)		39,336
Change in valuation allowance		45,547			162,213			(75,196	)
Other permanent differences		1,681			722			340
Total income tax expense (benefit)	$	(1,635	)	$	35,583		$	(36,141	)
Effective tax rate		0.89	%		(8.27	)%		(159.99	)%

Summary of Significant Components of Deferred Tax Assets and Liabilities

Net deferred tax assets (liabilities) reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and liabilities were as follows (in thousands):

	Year Ended December 31,
	2021			2020
Deferred tax assets:
Federal net operating loss	$	153,849		$	133,804
Foreign tax loss carryforward		49,932			45,980
State net operating loss		24,265			25,740
Asset retirement obligations		92,823			106,604
Tax credits		303			522
Derivatives		42,075			16,346
Other well equipment inventory		5,680			9,470
Accrued bonus		5,087			3,069
Operating lease liabilities		4,081			4,904
Other		9,257			7,727
Total deferred tax assets		387,352			354,166
Valuation allowance		(224,266	)		(178,998	)
Total deferred tax assets, net	$	163,086		$	175,168
Deferred tax liabilities:
Oil and gas properties	$	160,002		$	170,596
Deferred financing		—			1,765
Operating lease assets		1,423			1,652
Prepaid		3,075			3,216
Total deferred tax liabilities		164,500			177,229
Net deferred tax liability	$	(1,414	)	$	(2,061	)

Summary of Net Operating Loss Carryovers

The table below presents the details of the Company’s net operating loss carryovers as of December 31, 2021 (in thousands):

	Amount		Expiration Year
Federal net operating losses	$	534,964	2035 - 2037
Federal net operating losses	$	197,651	Unlimited
Foreign tax loss carryforward	$	166,440	2025 - 2031
State net operating losses	$	125,958	2025 - 2037
State net operating losses	$	268,221	Unlimited

Summary of Balances In Uncertain Tax Positions

Balances in the uncertain tax positions are as follows (in thousands):

	Year Ended December 31,
	2021		2020
Total unrecognized tax benefits, beginning balance	$	648	$	791
Increases in unrecognized tax benefits as a result of:
Tax positions taken during a prior period		21		(208	)
Tax positions taken during the current period		27		65
Total unrecognized tax benefits, ending balance	$	696	$	648