Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of components of provision for income taxes

The provision for income taxes consisted of the following:


	For the Years Ended December 31,
	2023			2022			2021

	(in thousands)
Current portion of income tax (expense) benefit
Federal	$	(8,461)		$	(9,230)		$	—
State	395			(5,531)			(373)
Deferred portion of income tax expense	(88,256)			(269,057)			(9,565)
Income tax expense	$	(96,322)		$	(283,818)		$	(9,938)

Effective tax rate	10.5		%	20.3		%	21.5		%

Schedule of components of net deferred income tax liabilities

The components of the net deferred tax liabilities are as follows:


	As of December 31,
	2023		2022

	(in thousands)
Deferred tax liabilities:
Oil and gas properties excluding asset retirement obligation liabilities	$	450,634	$	358,537
Derivative assets	12,319		3,416

Other	6,283		6,059
Total deferred tax liabilities	469,236		368,012
Deferred tax assets:
Credit carryover, net	56,097		161
Asset retirement obligation liabilities	26,592		24,899
Lease liabilities	4,454		4,525
Federal and state tax net operating loss carryovers	3,271		28,151
Legal liabilities	2,838		—
Pension	2,453		3,970



Interest carryforward	1,031		22,667
Other	4,003		4,444
Total deferred tax assets	100,739		88,817
Valuation allowance	(1,406)		(1,616)
Net deferred tax assets	99,333		87,201
Net deferred tax liabilities	$	369,903	$	280,811

Current federal income tax refundable (payable)	$	(4,899)	$	770
Current state income tax refundable (payable)	$	1,253	$	(5,316)

Schedule of effective income tax rate reconciliation

Income tax expense or benefit differs from the amount that would be provided by applying the statutory United States federal income tax rate to income or loss before income taxes. These differences primarily relate to the effect of federal tax credits, state income taxes, changes in valuation allowances, excess tax benefits and deficiencies from stock-based compensation awards, tax deduction limitations on compensation of covered individuals, the cumulative impact of other smaller permanent differences, and can also reflect the cumulative effect of an enacted tax rate change, in the period of enactment, on the Company’s net deferred tax asset and liability balances. These differences for the years ended December 31, 2023, 2022, and 2021, are presented below:


	For the Years Ended December 31,
	2023		2022		2021

	(in thousands)
Federal statutory tax expense	$	(191,983)	$	(293,112)	$	(9,695)
(Increase) decrease in tax resulting from:
Net federal R&D tax credit	92,420		—		—

Change in valuation allowance	210		16,845		(5,073)



State tax (expense) benefit, net of federal effect	5,166		(9,870)		(211)
Other	(2,135)		2,319		5,041
Income tax expense	$	(96,322)	$	(283,818)	$	(9,938)

Schedule of Unrecognized Tax Benefits Roll Forward

The total amount recorded for unrecognized tax benefits is presented below:


	For the Years Ended December 31,
	2023		2022		2021

	(in thousands)
Beginning balance	$	446	$	446	$	446
Additions based on tax positions related to current year	23,713		—		—



Ending balance	$	24,159	$	446	$	446