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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income (loss) before income taxes is attributable as follows:
Year Ended December 31,
(in thousands)202420232022
U.S.$(26,337)$(15,781)$(56,750)
Foreign166,134 165,927 180,132 
 $139,797 $150,146 $123,382 
Provision for income taxes related to income (loss) consists of the following:
Year Ended December 31,
202420232022
U.S. Federal:(in thousands)
Current$— $— $— 
Deferred(1,698)6,214 (3,344)
Foreign:   
Current98,882 92,642 26,615 
Deferred(15,877)(9,079)48,149 
Total$81,307 $89,777 $71,420 
The reconciliation of income tax expense (benefit) to income tax at the U.S. statutory rate is as follows:
Year Ended December 31,
(in thousands)202420232022
Tax provision computed at U.S. statutory rate$29,360 $31,530 $25,910 
Foreign taxes not offset in U.S. by foreign tax credits14,833 25,719 53,851 
Permanent differences932 3,455 778 
Foreign tax credit expirations— — 17,247 
Increase/(decrease) in valuation allowance34,281 27,656 (25,623)
Bargain purchase gain(2,842)— — 
Other4,743 1,417 (743)
Total income tax expense (benefit)$81,307 $89,777 $71,420 

Deferred tax assets and liabilities, which are computed on the estimated income tax effect of temporary differences between financial and tax bases in assets and liabilities, are determined using the tax rates expected to be in effect when taxes are actually paid or recovered.
In assessing the realizability of the deferred tax assets, the Company considers all available positive and negative evidence by jurisdiction to estimate whether it is more likely than not that sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, future operating conditions, particularly as related to prevailing crude oil prices.

On the basis of this evaluation, as of December 31, 2024, a valuation allowance of $173.1 million has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced or increased.
The tax effects of significant temporary differences giving rise to deferred tax assets and liabilities are as follows:
December 31,
(in thousands)20242023
Deferred tax assets:
Fixed assets(1)$35,541 $9,132 
Foreign tax credit carryforward123,660 55,069 
Net operating losses56,317 32,306 
Asset retirement obligations20,384 9,631 
ROU lease liabilities9,973 10,345 
Accrued liabilities19,686 3,808 
Receivables(1,788)(146)
Other2,682 719 
Total deferred tax assets266,455 120,864 
Valuation allowance(173,140)(83,893)
Net deferred tax assets$93,315 $36,971 
 
Deferred tax liabilities:
Basis difference in fixed assets(131,639)(81,310)
Net deferred tax liabilities$(131,639)$(81,310)
(1)This line includes ROU lease asset.
The Corporation’s undistributed earnings from subsidiary companies outside the United States include amounts that have been retained to fund prior and future capital project expenditures. Deferred income taxes have not been recorded for potential future tax obligations, such as foreign withholding tax and state tax, as these undistributed earnings are expected to be indefinitely reinvested for the foreseeable future. As of December 31, 2024, it is not practicable to estimate the unrecognized deferred tax liability. However, unrecognized deferred taxes on remittance of these funds are not expected to be material.
The Company has NOL’s, in the following jurisdictions as of December 31, 2024:
Jurisdiction
Amount
(in thousands)
Expiration Period
U.S.$— No expiration
Gabon$— No expiration
Egypt$18,322 2025-2029
Canada$77,132 2032-2041
Equatorial Guinea$124,589 No expiration
UK$— No expiration
The Company recognizes the financial statement benefit of a tax position only after determining that they are more likely than not to sustain the position following an audit. The Company believes that its income tax positions and deductions will be sustained on audit, and therefore no reserves for uncertain tax positions have been established. Accordingly, no interest or penalties have been accrued as of December 31, 2024 and 2023. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense.

For the years ended December 31, 2024, 2023 and 2022, the Company is subject to foreign and U.S. federal taxes only, with no allocations made to state and local taxes. The following table summarizes the tax years that remain subject to examination by major tax jurisdictions.
JurisdictionYears
U.S.
2014-2024
Gabon
2020-2024
Egypt
2019-2024
Canada
2019-2024
Sweden
2018-2024
Cote d'Ivoire
2020-2024