Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2014			2015			2016
	(In thousands)
Deferred tax liabilities:
Hedge contracts	$	8,114		$	9,578		$	—
Assets held for sale	—			—			3,390
Other	4,458			4,042			4,431
Total deferred tax liabilities	12,572			13,620			7,821
Deferred tax assets:
U.S. full cost pool	3,352			35,689			48,436
Capital loss carryforward	12,325			7,767			7,361
Depletion carryforward	4,936			5,558			5,216
U.S. net operating loss carryforward	50,941			67,531			80,670
Alternative minimum tax credit	1,104			757			757
Hedge contracts	—			—			3,135
Total deferred tax assets	72,658			117,302			145,575
Valuation allowance for deferred tax assets	(60,086		)	(103,682		)	(137,754		)
Net deferred tax assets	12,572			13,620			7,821
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,
	2014			2015			2016
	(In thousands)
Current:
Federal	$	(276	)	$	(242	)	$	—
State	(11		)	(37		)	—
	$	(287	)	$	(279	)	$	—
Deferred:
Federal	$	—		$	—		$	—
	$	—		$	—		$	—

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,
	2014			2015			2016
	(In thousands)
Tax (expense) benefit at U.S. statutory rates (35%)	$	(22,044	)	$	44,586		$	33,732
(Increase) decrease in deferred tax asset valuation allowance	15,480			(43,596		)	(34,072		)
Alternative minimum tax	—			568			—
Rate differential for non US income	(39		)	—			—
State income taxes	—			—			—
Accrual of prior year federal taxes (2009 and 2013)	287			37			—
Permanent differences	(950		)	(1,371		)	(1,133		)
Return to provision estimate revision	4,562			—			1,473
Tax benefit related to the sale of Canadian subsidiary	3,501			—			—
Increase in asset for partnership distribution	—			—			—
Other	(510		)	55			—
	$	287		$	279		$	—