Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of Deferred Tax Liabilities and Assets

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax liabilities and assets are as follows:



	Years Ended December 31,
	2012	2013	2014
	(In thousands)
Deferred tax liabilities:



Marketable securities	$	28		$	—		$	—
Hedge contracts	—			—			8,114
Other	—			3,152			4,458
Total deferred tax liabilities	28			3,152			12,572
Deferred tax assets:
U.S. full cost pool	13,837			11,725			3,352
Canada full cost pool	3,720			4,081			—
Capital loss carryforward	—			—			12,325
Depletion carryforward	4,930			4,743			4,936
U.S. net operating loss carryforward	59,362			49,667			50,941
Canada net operating loss carryforward	4,196			5,736			—
Alternative minimum tax credit	422			1,369			1,104
Hedge contracts	2,231			1,397			—
Other	1,042			—			—
Total deferred tax assets	89,740			78,718			72,658
Valuation allowance for deferred tax assets	(89,712		)	(75,566		)	(60,086		)
Net deferred tax assets	28			3,152			12,572
Net deferred tax	$	—		$	—		$	—

Components of Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes are as follows:



	Years ended December 31,
	2012		2013		2014
	(In thousands)
Current:
Federal	$	310	$	632	$	(276	)
State	—		68		(11		)
	$	310	$	700	$	(287	)
Deferred:
Federal	$	—	$	—	$	—
Foreign	—		—		—
	$	—	$	—	$	—

Reconciliation of Income Tax Computed At U.S. Federal Statutory Tax Rates to Income Tax Expense

The reconciliation of income tax computed at the U.S. federal statutory tax rates to income tax expense is:



	Years ended December 31,
	2012			2013			2014
	(In thousands)
Tax (expense) benefit at U.S. statutory rates (35%)	$	6,468		$	(13,771	)	$	(22,044	)
(Increase) decrease in deferred tax asset valuation allowance	(6,231		)	14,146			15,480
Rate differential for non US income	(1,533		)	(574		)	(39		)



State income taxes	—			(47		)	—
Accrual of prior year federal taxes (2009 and 2013)	(310		)	(81		)	287
Permanent differences	(732		)	(743		)	(950		)
Return to provision estimate revision	—			—			4,562
Tax benefit related to the sale of Canadian subsidary	—			—			3,501
Increase in asset for partnership distribution	1,945			—			—
Other	83			370			(510		)
	$	(310	)	$	(700	)	$	287