Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of (Expense) Benefit for Income Taxes

The (expense) benefit for income taxes consisted of the following for the periods indicated:



	Year Ended December 31,
	2019		2018			2017
	(in thousands)
Current:
Federal	$	—	$	—		$	1,402
State	—		—			—
Deferred:
Federal	35,806		(1,777		)	—
State	6,310		(50		)	—
Total	$	42,116	$	(1,827	)	$	1,402

Schedule of Reconciliation of Actual Income Tax (Expense) Benefit

Income tax (expense) benefit differed from the amounts computed by applying the U.S. federal income tax rate of 21% to pretax income for the years ended December 31, 2019 and 2018 and 35% to pretax income for the year ended December 31, 2017 from continuing operations as a result of the following:



	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Income tax (expense) benefit at the federal statutory rate	$	37,159		$	(25,840	)	$	48,869
State income tax (expense) benefit, net of federal tax effect	6,002			(5,144		)	4,030
Change in federal tax rate	—			—			(64,949		)
Refundable AMT credits	—			—			1,402
Nondeductible equity-based compensation	(1,895		)	(3,101		)	(13,655		)
Nondeductible costs in connection with Merger	—			(2,545		)	—
Other permanent items	(157		)	(418		)	(37		)
Change in valuation allowance	628			36,321			(35,684		)
Change in valuation allowance due to TCJA	—			—			64,949
Change in valuation allowance - Section 382	—			64,994			—
Change in apportioned state tax rates	275			(723		)	(1,086		)
Eliminate UT jurisdiction NOL's and credits	—			—			(2,647		)
Change in ownership - Section 382	—			(64,994		)	—
Other, net	104			(377		)	210
Income tax (expense) benefit	$	42,116		$	(1,827	)	$	1,402

Schedule of Components of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities as of December 31, 2019 and 2018 are presented below:



	As of December 31,
	2019			2018
	(in thousands)
Long-term:
Deferred tax assets:
Net operating loss carryforward	$	112,409		$	112,898
Stock-based compensation	1,368			1,962
Deferred rent	—			628
Financing obligation	2,163			1,174
Accrued expenses	38			250
Derivative instruments	287			—
Other assets	148			2,409
Capital loss carryforward	890			1,028
Less: Valuation allowance	(12,587		)	(13,215		)
Total long-term deferred tax assets	104,716			107,134
Deferred tax liabilities:
Oil and gas properties	(201,396		)	(219,390		)
Long-term derivative instruments	—			(26,700		)
Prepaid expenses	(462		)	(374		)
Deferred compensation	(276		)	(204		)
Total long-term deferred tax assets (liabilities)	(202,134		)	(246,668		)
Net long-term deferred tax assets (liabilities)	$	(97,418	)	$	(139,534	)