INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Income Tax Provision (Benefit)

The components of income tax benefits were as follows (in thousands):


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Current:
State	$	—	$	—	$	—
Federal	—		—		—
Deferred:
State	11,747		(26,704)		—
Federal	(67,824)		(498,452)		—
Total income tax benefit provision	$	(56,077)	$	(525,156)	$	—

Schedule of Reconciliation to the Statutory Federal Income Tax

A reconciliation of the statutory federal income tax amount to the recorded benefit follows (in thousands):


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Income (loss) before federal income taxes	$	(317,463)	$	945,760	$	494,701
Expected income tax at statutory rate	(66,668)		198,610		103,887
State income taxes	4,765		(2,581)		2,227
Remeasurement of state deferred tax asset	54		—		13,869
Return to provision	5,800		(5,592)		(17,075)
Other differences	1,857		1,982		1,117
Change in valuation allowance due to current year activity	(1,885)		(717,575)		(104,025)
Income tax benefit recorded	$	(56,077)	$	(525,156)	$	—

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2024 and December 31, 2023 are estimated as follows (in thousands):


	Year Ended December 31, 2024		Year Ended December 31, 2023
Deferred tax assets:
Net operating loss carryforward and tax credits	$	345,770	$	399,017
Oil and gas property basis difference	194,412		143,769
Investment in pass through entities	65,210		68,114
Stock-based compensation expense	1,821		1,262
Change in fair value of derivative instruments	6,106		—
Other assets	56,849		52,730
Total deferred tax assets	670,168		664,892
Valuation allowance for deferred tax assets	(83,695)		(85,757)
Deferred tax assets, net of valuation allowance	586,473		579,135
Deferred tax liabilities:
Change in fair value of derivative instruments	3,401		50,448
Right of use asset	1,281		3,003
Other	558		528
Total deferred tax liabilities	5,240		53,979
Net deferred tax asset	$	581,233	$	525,156