Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes

Schedule of income tax benefit

Income tax benefit for 2012, 2011 and 2010 consist of the following:

	2012			2011			2010
Current tax expense	$	343,252		$	—		$	—
Deferred tax benefit	(35,062,841		)	(8,098,357		)	(16,607,139		)
Income tax benefit	$	(34,719,589	)	$	(8,098,357	)	$	(16,607,139	)

Schedule of reconciliation of effective income tax rates by applying the federal statutory rate to the income and loss

The following is a reconciliation of effective income tax rates by applying the federal statutory rate of 35% to the income and loss for the years ended December 31, 2012, 2011 and 2010, respectively:

	2012			2011			2010
Loss before income taxes	$	(126,710,944	)	$	(23,943,739	)	$	(47,452,036	)
Income tax benefit at statutory rate	$	44,348,830		$	8,380,309		$	16,608,213
Valuation allowance	(10,197,845		)	—			—
Adjustment to NOL carryforward	—			—			(261,154		)
Effect for permanent items	(11,496		)	(17,306		)	(23,699		)
State taxes and other	580,100			(264,646		)	283,779
Income tax benefit	$	34,719,589		$	8,098,357		$	16,607,139

Schedule of significant components of the entity's deferred tax assets and liabilities

	December 31,
	2012			2011
Deferred tax assets
Net operating loss carryforwards	$	38,988,438		$	59,443,480
Oil and gas properties	19,163,931			—
Deferred compensation	8,057,657			7,177,942
Income tax credits	347,737			281,424
Deferred tax assets before valuation allowance	66,557,763			66,902,846
Valuation allowance	(13,290,201		)	(3,238,656		)
Net deferred tax assets	53,267,562			63,664,190
Deferred tax liabilities
Oil and gas properties	—			(44,780,151		)
Derivative instruments	(532,795		)	(1,349,679		)
Other	(563,451		)	(425,726		)
Deferred tax liabilities	(1,096,246		)	(46,555,556		)
Net deferred tax assets	$	52,171,316		$	17,108,634

Schedule of reconciliation of the beginning and ending amount of unrecognized income tax benefits

	Unrecognized Tax Benefits
Balance at December 31, 2011	$	518,219
Additions based on tax positions related to the current year	—
Additions based on tax positions related to prior years	—
Additions due to acquisitions	—
Reductions due to a lapse of the applicable statute of limitations	—
Balance at December 31, 2012	$	518,219