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Provision (Benefit) for Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes Provision (Benefit) for Income Taxes
Income (Loss) before taxes is as follows (in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020
Income (Loss) Before Income Taxes$93,157 $(288,471)

The following is an analysis of the consolidated income tax provision (benefit) (in thousands):
Year Ended December 31, 2021Year Ended December 31, 2020
Current$186 $(480)
Deferred6,212 21,391 
Total$6,398 $20,911 

Reconciliations of income taxes computed using the U.S. Federal statutory rate of (21%) to the effective income tax rate are as follows:
Year Ended December 31, 2021Year Ended December 31, 2020
Federal Statutory Rate21.0 %21.0 %
State tax provisions (benefits), net of federal benefits1.0 %0.6 %
Executive compensation limitation0.6 %— %
Other, net0.6 %(0.2)%
Valuation allowance adjustments(16.2)%(28.6)%
Effective rate6.9 %(7.2)%
The tax effects of temporary differences representing the net deferred tax asset (liability) at December 31, 2021 and 2020 were as follows (in thousands):
December 31, 2021December 31, 2020
Deferred tax assets:
Federal net operating loss (“NOL”) carryovers$97,142 $93,293 
Other carryover items642 610 
Asset retirement obligations1,306 1,074 
Share-based compensation579 959 
Lease liability3,425 929 
Derivative contracts11,451 — 
Other2,111 1,029 
Valuation allowance(67,578)(82,618)
Total deferred tax assets$49,078 $15,276 
Deferred tax liabilities:
Oil and gas exploration and development costs$(52,219)$(13,008)
Derivative contracts— (1,653)
Leased assets(3,374)(917)
Other(1)(1)
Total deferred tax liabilities(55,594)(15,579)
Net deferred tax asset (liabilities)$(6,516)$(303)
State net deferred tax liabilities$(1,016)$(303)
Federal net deferred tax liabilities(5,500)— 
Net deferred tax asset (liabilities)$(6,516)$(303)

The Company’s valuation allowance balance was $67.6 million and $82.6 million at December 31, 2021 and 2020, respectively. The Company recorded a net deferred tax liability for state income tax purposes at December 31, 2021 and 2020.

The Company’s NOL carryforward asset is attributable to Federal tax losses of $114.6 million generated from 2013 through 2015, $159.6 million generated in 2017 and $188.3 million generated from 2018 through 2021. The losses generated between 2013 and 2015 are subject to an annual utilization limit under Sec. 382. These losses will expire between 2033 and 2035 if not utilized. The 2017 loss will expire in 2037 if not utilized. The losses generated from 2018 through 2021 will not expire under the current tax code, but their usage will be limited to 80% of taxable income.

Our U.S. federal and most state income tax returns from 2018 forward are subject to examination. For years prior to 2018 our U.S. federal returns are subject to examination to the extent of our net operating loss (NOL) carryforwards. Our Texas tax returns from 2017 forward are subject to examination. There are no material unresolved items related to periods previously audited by the taxing authorities.