Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

NOTE 8 – INCOME TAXES

A reconciliation of income tax expense (benefit), computed by applying the federal statutory rate to pre-tax income to our effective income tax expense is as follows:

	2011		2010		2009
	(In thousands)
Income tax expense (benefit) computed by applying the statutory rate	$	111,651	$	83,027	$	(30,704	)
State income tax, net of federal benefit		8,941		6,030		(2,409	)
Statutory depletion and other		2,543		1,680		887
Income tax expense (benefit)	$	123,135	$	90,737	$	(32,226	)

For the periods indicated, the total provision for income taxes consisted of the following:

	2011			2010			2009
	(In thousands)
Current taxes:
Federal	$	(3,159	)	$	(6,856	)	$	(5,124	)
State		743			(3,079	)		4,901
		(2,416	)		(9,935	)		(223	)
Deferred taxes:
Federal		109,363			88,021			(23,510	)
State		16,188			12,651			(8,493	)
		125,551			100,672			(32,003	)
Total provision	$	123,135		$	90,737		$	(32,226	)

Deferred tax assets and liabilities are comprised of the following at December 31:

	2011			2010
	(In thousands)
Deferred tax assets:
Allowance for losses and nondeductible accruals	$	53,376		$	47,742
Net operating loss carryforward		47,683			2,926
Alternative minimum tax credit carryforward		0			0
		101,059			50,668
Deferred tax liability:
Depreciation, depletion, amortization and impairment		(773,246	)		(593,237	)
Net deferred tax liability		(672,187	)		(542,569	)
Current deferred tax asset		10,936			13,537
Non-current—deferred tax liability	$	(683,123	)	$	(556,106	)

Realization of the deferred tax assets are dependent on generating sufficient future taxable income. Although realization is not assured, management believes it is more likely than not that the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near-term if estimates of future taxable income are reduced. At December 31, 2011, we have federal net operating loss carryforwards of approximately $119.8 million which expire from 2015 to 2031.