Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2015		2016		2017
	(In thousands)
Deferred tax liabilities:
Hedge contracts	$	9,578	$	—	$	—
Assets held for sale	—		3,390		—
Other	4,042		4,431		2,834
Total deferred tax liabilities	13,620		7,821		2,834
Deferred tax assets:



U.S. full cost pool	35,689			48,436			20,011
Capital loss carryforward	7,767			7,361			3,015
Depletion carryforward	5,558			5,216			3,174
U.S. net operating loss carryforward	67,531			80,670			53,545
Alternative minimum tax credit	757			757			757
Hedge contracts	—			3,135			2,777
Total deferred tax assets	117,302			145,575			83,279
Valuation allowance for deferred tax assets	(103,682		)	(137,754		)	(80,445		)
Net deferred tax assets	13,620			7,821			2,834
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,
	2015			2016		2017
	(In thousands)
Current:
Federal	$	(242	)	$	—	$	—
State	(37		)	—		—
	$	(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,
	2015			2016			2017
	(In thousands)
Tax (expense) benefit at U.S. statutory rates	$	44,586		$	33,732		$	(5,602	)
(Increase) decrease in deferred tax asset valuation allowance	(43,596		)	(34,072		)	57,309
Accrual of prior year federal taxes (2009 and 2013)	37			—			—
Permanent differences	(1,371		)	(1,133		)	(1,134		)
Return to provision estimate revision	—			1,473			2,494
Change in deferred tax rate	—			—			(53,125		)
Other	55			—			58
	$	279		$	—		$	—