Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021			2020
Current income tax expense (benefit):
United States	$	1,375	$	(5	)	$	(499	)
Mexico		432		(993	)		185
Total current income tax expense (benefit)	$	1,807	$	(998	)	$	(314	)
Deferred income tax expense (benefit):
United States	$	659	$	(1,067	)	$	35,923
Mexico		71		430			(26	)
Total deferred income tax expense (benefit)	$	730	$	(637	)	$	35,897
Total income tax expense (benefit)	$	2,537	$	(1,635	)	$	35,583

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,
	2022			2021			2020
Income tax expense (benefit) at the federal statutory tax rate	$	80,735		$	(38,763	)	$	(90,304	)
State income taxes		1,591			(674	)		(14,215	)
Impact of foreign operations		15,657			(11,920	)		(1,030	)
Effect of change in state rate		—			2,008			—
Prior year taxes		(2,920	)		486			(4,237	)
Legal entity reorganization		—			—			(17,566	)
Change in valuation allowance		(96,537	)		45,547			162,213
Other permanent differences		4,011			1,681			722
Total income tax expense (benefit)	$	2,537		$	(1,635	)	$	35,583
Effective tax rate		0.66	%		0.89	%		(8.27	)%

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,
	2022			2021
Deferred tax assets:
Federal net operating loss	$	159,257		$	153,849
Foreign tax loss carryforward		44,462			49,932
State net operating loss		24,787			24,265
Tax credits		107			303
Interest expense carryforward		23,262			—
Asset retirement obligations		115,848			92,823
Derivatives		9,273			42,075
Other well equipment inventory		1,891			5,680
Accrued bonus		5,863			5,087
Share-based compensation		5,296			3,833
Operating lease liabilities		3,669			4,081
Finance lease liabilities		32,559			—
Other		7,142			5,424
Total deferred tax assets		433,416			387,352
Valuation allowance		(129,105	)		(224,266	)
Total deferred tax assets, net	$	304,311		$	163,086
Deferred tax liabilities:
Oil and gas properties	$	302,602		$	160,002
Operating lease assets		1,323			1,423
Prepaid		2,530			3,075
Total deferred tax liabilities		306,455			164,500
Net deferred tax liability	$	(2,144	)	$	(1,414	)

Summary of Net Operating Loss Carryovers

The table below presents the details of the Company’s net operating loss carryovers as of December 31, 2022 (in thousands):

	Amount		Expiration Year
Federal net operating losses	$	525,745	2035 - 2037
Federal net operating losses	$	232,620	Unlimited
Foreign tax loss carryforward	$	148,206	2025 - 2032
State net operating losses	$	125,958	2025 - 2037
State net operating losses	$	277,031	Unlimited

Summary of Balances In Uncertain Tax Positions

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

	Year Ended December 31,
	2022		2021
Total unrecognized tax benefits, beginning balance	$	696	$	648
Increases in unrecognized tax benefits as a result of:
Tax positions taken during a prior period		100		21
Tax positions taken during the current period		39		27
Total unrecognized tax benefits, ending balance	$	835	$	696