INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Notes Tables |
|
| Schedule of components of income tax (benefit) expense |
Components of income tax (benefit) expense were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
Current |
|
$ |
92 |
|
$ |
(140) |
|
$ |
8,476 |
Deferred |
|
|
(10,077) |
|
|
18,485 |
|
|
45,184 |
Total income tax (benefit) expense |
|
$ |
(9,985) |
|
$ |
18,345 |
|
$ |
53,660 |
|
| Schedule of effective income tax rate reconciliation |
The reconciliation of income taxes computed at the U.S. federal statutory tax rate of 21% to these effective tax rates is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
Income tax (benefit) expense at the federal statutory rate |
|
$ |
(20,397) |
|
$ |
7,128 |
|
$ |
59,810 |
Compensation adjustments |
|
|
2,607 |
|
|
1,752 |
|
|
599 |
State income taxes |
|
|
(57) |
|
|
1,143 |
|
|
2,418 |
Valuation allowance |
|
|
7,699 |
|
|
8,125 |
|
|
(9,117) |
Other |
|
|
163 |
|
|
197 |
|
|
(50) |
Income tax (benefit) expense |
|
$ |
(9,985) |
|
$ |
18,345 |
|
$ |
53,660 |
|
| Schedule of deferred tax assets and liabilities |
Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):
|
|
|
|
|
|
|
|
|
December 31, |
|
|
2024 |
|
2023 |
Deferred tax assets: |
|
|
|
|
|
|
Derivatives |
|
$ |
4,376 |
|
$ |
8,532 |
Asset retirement obligations |
|
|
118,398 |
|
|
109,111 |
Contingent asset retirement obligations |
|
|
4,493 |
|
|
3,952 |
Right of use liability |
|
|
2,743 |
|
|
2,895 |
Federal net operating losses |
|
|
10,805 |
|
|
6,211 |
State net operating losses |
|
|
4,581 |
|
|
5,941 |
Interest expense limitation carryover |
|
|
24,947 |
|
|
17,501 |
Share-based compensation |
|
|
1,480 |
|
|
2,262 |
Other |
|
|
4,560 |
|
|
4,266 |
Total deferred tax asset |
|
|
176,383 |
|
|
160,671 |
Valuation allowance |
|
|
(29,155) |
|
|
(23,202) |
Total deferred tax asset after valuation allowance |
|
|
147,228 |
|
|
137,469 |
Deferred tax liabilities: |
|
|
|
|
|
|
Property and equipment |
|
$ |
93,284 |
|
$ |
92,707 |
Investment in non-consolidated entity |
|
|
2,149 |
|
|
2,993 |
Other |
|
|
2,995 |
|
|
3,046 |
Total deferred tax liabilities |
|
|
98,428 |
|
|
98,746 |
|
|
|
|
|
|
|
Net deferred tax asset (1) |
|
$ |
48,800 |
|
$ |
38,723 |
| (1) |
As of December 31, 2024 and 2023, $8 thousand and $51 thousand are included in Other liabilities in the Company’s Consolidated Balance Sheets.
|
|
| Schedule of changes to the company's valuation allowance |
Changes to the Company’s valuation allowance are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2024 |
|
2023 |
|
2022 |
Balance at beginning of period |
|
$ |
(23,202) |
|
$ |
(15,311) |
|
$ |
(24,359) |
Additions to valuation allowance |
|
|
(5,953) |
|
|
(7,891) |
|
|
— |
Reductions to valuation allowance |
|
|
— |
|
|
— |
|
|
9,048 |
Balance at end of period |
|
$ |
(29,155) |
|
$ |
(23,202) |
|
$ |
(15,311) |
|
| Schedule of operating loss carryforwards |
The table below presents the details of the Company’s net operating loss and interest expense limitation carryover as of December 31, 2024 (in thousands):
|
|
|
|
|
|
|
|
Amount |
|
Expiration
Year |
Federal net operating loss |
|
$ |
51,450 |
|
N/A |
State net operating loss |
|
|
104,109 |
|
2026 - 2043 |
Interest expense limitation carryover |
|
|
115,495 |
|
N/A |
|