XML 38 R17.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The following is an analysis of the consolidated income tax provision (benefit):
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Current - Federal | $ | 40,445 |  |  | $ | — |  |  | $ | — |
Current - State | (7,701) |  |  | 14,968 |  |  | (154) |
Deferred - Federal | 209,705 |  |  | (16,721) |  |  | (12,037) |
Deferred - State | 18,612 |  |  | 13,156 |  |  | 2,981 |
| $ | 261,061 |  |  | $ | 11,403 |  |  | $ | (9,210) |
In recording deferred income tax assets, the Company considers whether it is more likely than not that its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods. The tax effects of significant temporary differences representing the net deferred tax liabilities were as follows:
| As of December 31,
| 2022 |  | 2021
| (In thousands)
Deferred tax assets: |  |  |
Interest expense limitation | $ | 101,104 |  |  | $ | 103,771 |
Net operating loss carryforwards | 49,740 |  |  | 53,112 |
Unrealized hedging losses | — |  |  | 37,953 |
Asset retirement obligation | 5,714 |  |  | 4,312 |
Other | 4,932 |  |  | 7,771 |
| 161,490 |  |  | 206,919 |
Valuation allowance on deferred tax assets | (2,145) |  |  | (46,474) |
Deferred tax assets | 159,345 |  |  | 160,445 |
Deferred tax liabilities: |  |  |
Property and equipment | (570,833) |  |  | (340,722) |
Unrealized hedging gains | (4,087) |  |  | — |
Amortization of debt issuance costs and bond discount | — |  |  | (9,954) |
Other | (10,162) |  |  | (7,186) |
Deferred tax liabilities | (585,082) |  |  | (357,862) |
Net deferred tax liability | $ | (425,737) |  |  | $ | (197,417) |
The difference between the customary rate of 21% and the effective tax rate on income (losses) is due to the following:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (In thousands)
Tax at statutory rate | $ | 294,408 |  |  | $ | (48,368) |  |  | $ | (12,941) |
Tax effect of: |  |  |  |  |
Valuation allowance on deferred tax assets | (47,077) |  |  | 30,504 |  |  | (919) |
State income taxes, net of federal benefit | 14,680 |  |  | 28,117 |  |  | 3,746 |
Other | (950) |  |  | 1,150 |  |  | 904 |
Total | $ | 261,061 |  |  | $ | 11,403 |  |  | $ | (9,210) |
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Tax at statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Tax effect of: |  |  |  |  |
Valuation allowance on deferred tax assets | (3.4) |  |  | (13.3) |  |  | 1.5 |
State income taxes, net of federal benefit | 1.1 |  |  | (12.2) |  |  | (6.1) |
Other | (0.1) |  |  | (0.5) |  |  | (1.5) |
Effective tax rate | 18.6 | % |  | (5.0) | % |  | 14.9 | %
At December 31, 2022, Comstock had the following carryforwards available to reduce future income taxes:
Types of Carryforward |  | Years of Expiration Carryforward |  | Amount
|  |  |  | (In thousands)
Net operating loss – U.S. federal |  | 2023-2037 |  | $ | 899,953 |
Net operating loss – U.S. federal |  | Unlimited |  | $ | 9,931 |
Net operating loss – state taxes |  | Unlimited |  | $ | 1,486,685 |
Interest expense – U.S. federal |  | Unlimited |  | $ | 481,449 |
Interest expense – state taxes |  | Unlimited |  | $ | 531,058 |
The Company's ability to use net operating losses ("NOLs") generated before its ownership change in 2018 to reduce taxable income is limited under IRC Section 382. NOLs that exceed the Section 382 limitation in any year continue to be allowed as carry forwards until they expire and can be used to offset taxable income for years within the carryover period subject to the limitation in each year. NOLs incurred prior to 2018 generally have a 20-year life until they expire. NOLs generated in 2018 and after would be carried forward indefinitely. NOLs arising after the date of an ownership change are not affected by the 382 limitation. If the Company does not generate a sufficient level of taxable income prior to the expiration of the pre-2018 NOL carry-forward periods, then it will lose the ability to apply those NOLs as offsets to future taxable income. The Company estimates that $766.2 million of the U.S. federal NOL carryforwards and $1.2 billion of the estimated state NOL carryforwards will expire unused. The Company's federal income tax returns for the years subsequent to December 31, 2018 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2019. The Company is currently under examination with the state of Louisiana and believe that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration