Provision for Income Taxes (As Restated)

Income (Loss) from continuing operations before taxes is as follows (in thousands):



	Year Ended December 31,
	2013 (As Restated)		2012 (As Restated)		2011 (As Restated)
Income (Loss) from Continuing Operations Before Income Taxes	$	198	$	37,773	$	131,125

The following is an analysis of the consolidated income tax provision (benefit) from continuing operations (in thousands):



	Year Ended December 31,
	2013 (As Restated)			2012 (As Restated)			2011 (As Restated)
Current	$	(12	)	$	(1,144	)	$	1,616
Deferred	2,652			17,216			47,438
Total	$	2,640		$	16,072		$	49,054

Reconciliations of income taxes computed using the U.S. Federal statutory rate to the effective income tax rates are as follows (in thousands):



	Year Ended December 31,
	2013 (As Restated)			2012 (As Restated)			2011 (As Restated)
Income taxes computed at U.S. statutory rate (35%)	$	69		$	13,221		$	45,889
State tax provisions (benefits), net of federal benefits	(184		)	(950		)	(1,206		)
Non-deductible equity compensation	1,127			1,911			1,537
Stock-based compensation tax shortfall	558			—			—
Valuation allowances	385			2,370			2,273
Expiration of carryover items	400			—			—
Uncertain Tax Positions	—			(977		)	—
Other, net	285			497			561
Provision for income taxes	$	2,640		$	16,072		$	49,054

Effective rate	1,333.4		%	42.5		%	37.4		%

The Company’s operations are concentrated in Texas and Louisiana. The Company’s state tax provision varies in proportion to the overall statutory rate due to differences in deductions allowed for U.S. Federal and state income taxes.

In 2013, the Company recorded tax expense of $0.6 million for stock-based compensation shortfall. This shortfall is for stock compensation grants on which the realized tax deduction was less than expense booked for these grants. Historically, the Company recorded excess tax benefits and shortfalls to paid-in-capital. However, during 2013 the Company exhausted its APIC Pool. The total tax effect of the shortfall for the year was $2.2 million, with $1.6 million being recorded as a reduction in paid-in-capital, and the remainder to tax expense.

The valuation allowances are primarily attributable to Louisiana net operating loss carryovers.

The tax effects of temporary differences representing the net deferred tax asset (liability) at December 31, 2013 and 2012 were as follows (in thousands):



	Year Ended December 31,
	2013 (As Restated)			2012 (As Restated)
Deferred tax assets:
Federal net operating loss (“NOL”) carryovers	$	117,713		$	93,445
NOLs for excess stock-based compensation	(9,615		)	(9,676		)
State NOL carryovers	14,626			13,686
Alternative minimum tax credits	2,092			2,092
Other Carryover Items	1,295			1,378
Asset Retirement Obligation	28,628			31,413
Unrealized share-based compensation	9,957			9,096
Valuation allowance	(6,703		)	(6,318		)
Other	6,042			5,904
Total deferred tax assets	$	164,035		$	141,020

Deferred tax liabilities:
Oil and gas exploration and development costs	$	(393,606	)	$	(363,952	)
Other	(919		)	(3,299		)
Total deferred tax liabilities	$	(394,525	)	$	(367,251	)

Net deferred tax liabilities	$	(230,490	)	$	(226,231	)

Net current deferred tax assets	10,715			8,262

Net non-current deferred tax liabilities	$	(241,205	)	$	(234,493	)

The federal NOL carryovers totaling $337.1 million will expire between 2027 and 2033 if not utilized in earlier periods. Deferred tax benefits for excess stock-based compensation deductions represent stock-based compensation that have generated tax deductions that have not yet resulted in a cash tax benefit because the Company has NOL carryovers. The Company plans to recognize the federal NOL net deferred tax assets associated with excess stock-based compensation tax deductions only when all other components of the federal NOL carryover tax assets have been fully utilized. If and when the excess stock-based compensation related NOL carryover tax assets are realized, the benefit will be credited directly to equity. The state NOL carryovers are for Louisiana. The Louisiana loss carryovers are scheduled to expire between 2014 and 2028. The valuation allowances include $6.6 million and $6.0 million for 2013 and 2012, respectively for the Louisiana NOL carryovers.

U.S. Federal income tax returns for 2007 forward, Louisiana income tax returns from 1999 forward, New Zealand income tax returns after 2007, and Texas franchise tax returns after 2008 remain open to possible examination by the taxing authorities. There are no material unresolved items related to periods previously audited by these taxing authorities. No other state returns are significant to our financial position.

As of December 31, 2013, we do not have any accrued liability for uncertain tax positions. We do not believe the total of unrecognized tax positions will significantly increase or decrease during the next 12 months.

During 2012, we reversed our previously accrued liability of 1.0 million for an uncertain tax position on which

the statutory audit period expired and recognized the related tax benefit.