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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | (4) Income Taxes Our income tax expense was $229.2 million for the year ended December 31, 2023 compared to expense of $230.5 million in 2022 and a benefit of $9.7 million in 2021. The effective income tax rate is influenced by a variety of factors including geographic sources and relative magnitude of these sources of income. Reconciliation between the statutory federal income tax rate and our effective income tax rate is as follows:
| Year Ended December 31, |  |
| 2023 |  |  | 2022 |  |  | 2021 |  |
Federal statutory tax rate |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | %
State, net of federal benefit |  | (0.1 | ) |  |  | 1.0 |  |  |  | 0.6 |  |
Equity compensation and executive compensation disallowance |  | (0.3 | ) |  |  | 0.2 |  |  |  | 2.6 |  |
Valuation allowances |  | 0.2 |  |  |  | (5.5 | ) |  |  | (26.8 | ) |
Permanent differences and other |  | — |  |  |  | (0.4 | ) |  |  | 0.2 |  |
Consolidated effective tax rate |  | 20.8 |  | % |  | 16.3 |  | % |  | (2.4 | ) | %
Income tax expense (benefit) attributable to income before income taxes consists of the following (in thousands):
| Year Ended December 31, |
| 2023 |  |  | 2022 |  |  | 2021 |
Current |  |  |  |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State |  | 1,547 |  |  |  | 14,688 |  |  |  | 7,984 |
| $ | 1,547 |  |  | $ | 14,688 |  |  | $ | 7,984 |
Deferred |  |  |  |  |  |  |  |
Federal | $ | 230,563 |  |  | $ | 245,839 |  |  | $ | 6,297 |
State |  | (2,909 | ) |  |  | (30,067 | ) |  |  | (24,024 | )
|  | 227,654 |  |  |  | 215,772 |  |  |  | (17,727 | )
Income tax expense (benefit) | $ | 229,201 |  |  | $ | 230,460 |  |  | $ | (9,743 | )
Significant components of deferred tax assets and liabilities are as follows (in thousands):
| December 31, |
| 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |
Net operating loss carryforward | $ | 538,340 |  |  | $ | 581,349 |
Divestiture contract obligation |  | 107,067 |  |  |  | 105,227 |
Deferred compensation |  | 17,342 |  |  |  | 25,733 |
Equity compensation |  | 6,767 |  |  |  | 4,813 |
Asset retirement obligations |  | 25,614 |  |  |  | 24,113 |
Interest expense carryforward |  | 19,861 |  |  |  | 16,118 |
Lease right-of-use liabilities |  | 6,023 |  |  |  | 19,395 |
Unrealized mark-to-market loss |  | — |  |  |  | 30,307 |
Other |  | 16,396 |  |  |  | 16,922 |
Valuation allowances: |  |  |  |  |
Federal |  | (23,396 | ) |  |  | (21,320 | )
State, net of federal benefit |  | (172,001 | ) |  |  | (171,423 | )
Total deferred tax assets |  | 542,013 |  |  |  | 631,234 |
Deferred tax liabilities: |  |  |  |  |
Depreciation and depletion |  | (998,886 | ) |  |  | (935,710 | )
Unrealized mark-to-market gain |  | (96,545 | ) |  |  | — |
Lease right-of-use assets |  | (5,184 | ) |  |  | (18,440 | )
Other |  | (2,686 | ) |  |  | (10,655 | )
Total deferred tax liabilities |  | (1,103,301 | ) |  |  | (964,805 | )
Net deferred tax liability | $ | (561,288 | ) |  | $ | (333,571 | )
At December 31, 2023, deferred tax liabilities exceeded deferred tax assets by $561.3 million. As of December 31, 2023, we have a state valuation allowance of $172.0 million related to state tax attributes in Louisiana, Oklahoma, Pennsylvania, Texas and West Virginia. As of December 31, 2023, we have federal valuation allowances of $23.4 million primarily related to our federal basis differences. The net change in our deferred tax asset valuation allowances was an increase of $2.7 million for the year ended December 31, 2023 compared to a reduction in our valuation allowances of $78.3 million in 2022 and a reduction of $108.0 million in 2021. We continue to evaluate the realizability of our federal and state deferred tax assets. At December 31, 2023, we had federal NOL carryforwards of $1.8 billion. This includes $157.5 million that expires in 2037 and also includes $1.7 billion of NOL carryforwards generated after 2017 that do not expire. We have state NOL carryforwards in Pennsylvania of $811.1 million that expire between 2031 and 2042 and in Louisiana, we have state NOL carryforwards of $1.6 billion that do not expire. We file a consolidated tax return in the United States federal jurisdiction. We file separate company state income tax returns in Louisiana and Pennsylvania and file consolidated or unitary state income tax returns in Oklahoma, Texas and West Virginia. We are subject to U.S. federal income tax examinations for the years 2020 and after and we are subject to various state tax examinations for years 2019 and after. We have not extended the statute of limitation period in any income tax jurisdiction. Our policy is to recognize interest related to income tax expense in interest expense and penalties in general and administrative expense. We do no t have any material accrued interest or penalties related to tax amounts as of December 31, 2023 or December 31, 2022. Throughout 2023, 2022 and 2021, our unrecognized tax benefits were not material. On July 12, 2022, the Commonwealth of Pennsylvania enacted legislation to reduce the corporate net income tax rate from 9.99% to 8.99% in 2023 and continues to reduce that rate by 0.5% per year beginning in 2024, with the rate becoming 4.99% in 2031 and each year thereafter.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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