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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The income tax provision for continuing operations consists of the following:
| 2014 |  | 2013 |  | 2012
| (In thousands)
Current: |  |  |  |  |
State | $ | 14,384 |  |  | $ | 6,860 |  |  | $ | 84 |
Federal | 16,039 |  |  | 6,325 |  |  | 646 |
Deferred: |  |  |  |  |
State | 4,314 |  |  | 7,385 |  |  | 2,214 |
Federal | 118,604 |  |  | 77,566 |  |  | 23,419 |
Total income tax expense provision from continuing operations | $ | 153,341 |  |  | $ | 98,136 |  |  | $ | 26,363 |
A reconciliation of the statutory federal income tax amount to the recorded expense follows:
| 2014 |  | 2013 |  | 2012
| (In thousands)
Income from continuing operations before federal income taxes | $ | 400,744 |  |  | $ | 251,328 |  |  | $ | 98,199 |
Expected income tax at statutory rate | 140,259 |  |  | 87,965 |  |  | 34,370 |
State income taxes | 11,570 |  |  | 9,297 |  |  | 1,493 |
Other differences | 1,512 |  |  | 874 |  |  | 292 |
Changes in valuation allowance | — |  |  | — |  |  | (9,792 | )
Income tax expense recorded for continuing operations | $ | 153,341 |  |  | $ | 98,136 |  |  | $ | 26,363 |
The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2014, 2013 and 2012 are estimated as follows:
| 2014 |  | 2013 |  | 2012
| (In thousands)
Deferred tax assets: |  |  |  |  |
Net operating loss carryforward | $ | 1,091 |  |  | $ | 1,462 |  |  | $ | 1,513 |
FASB ASC 718 compensation expense | 1,562 |  |  | 634 |  |  | 762 |
AMT credit | 24,053 |  |  | 7,968 |  |  | 1,643 |
Charitable contributions carryover | 150 |  |  | 25 |  |  | 5 |
Unrealized loss on hedging activities | — |  |  | 8,540 |  |  | 3,836 |
Foreign tax credit carryforwards | 2,074 |  |  | 2,074 |  |  | 2,074 |
Accrued liabilities | 1,260 |  |  | — |  |  | — |
State net operating loss carryover | 2,627 |  |  | 4,408 |  |  | 4,315 |
Total deferred tax assets | 32,817 |  |  | 25,111 |  |  | 14,148 |
Valuation allowance for deferred tax assets | (3,145 | ) |  | (4,743 | ) |  | (4,629 | )
Deferred tax assets, net of valuation allowance | 29,672 |  |  | 20,368 |  |  | 9,519 |
Deferred tax liabilities: |  |  |  |  |
Oil and gas property basis difference | 183,767 |  |  | 72,173 |  |  | 15,049 |
Investment in pass through entities | 38,315 |  |  | 8,799 |  |  | 3,618 |
Non-oil and gas property basis difference | 849 |  |  | 249 |  |  | 227 |
Investment in nonconsolidated affiliates | — |  |  | 46,495 |  |  | 9,232 |
Unrealized gain on hedging activities | 37,006 |  |  | — |  |  | — |
Total deferred tax liabilities | 259,937 |  |  | 127,716 |  |  | 28,126 |
Net deferred tax liability | $ | (230,265 | ) |  | $ | (107,348 | ) |  | $ | (18,607 | )
The Company has an available federal tax net operating loss carryforward estimated at approximately $3.1 million as of December 31, 2014. This carryforward will begin to expire in the year 2034. Based upon the December 31, 2014, 2013 and 2012 net deferred tax liability position of the Company's oil and gas assets, management believes that this is a positive source of evidence to utilize the carryforward before it expires. Therefore, a valuation allowance has not been provided at December 31, 2014, 2013 and 2012. The Company also has state net operating loss carryovers of $50.5 million from Louisiana that will begin to expire in 2014, alternative minimum tax credits of $24.1 million with no expiration date and federal foreign tax credit carryovers of $2.1 million which begin to expire in 2017. The Company has recorded a valuation allowance of $3.1 million related to state net operating loss carryovers and foreign tax credit carryovers as the carryovers may not be utilized based upon a more likely than not basis. In 2012, the Diamondback Contribution generated an estimated $61.9 million taxable gain. As a result, the Company recognized $9.8 million of its deferred tax assets which had previously been subject to a valuation allowance. The Company also recognized $25.6 million of deferred tax expense in 2012 primarily due to the utilization of prior net operating losses from the Diamondback Contribution gain. In 2013, the sale of Diamondback common shares generated $120.0 million taxable gain resulting in deferred tax expense of $35.7 million and current tax expense of $13.2 million. In 2014, the sale of the remaining shares of Diamondback, as well as the sale of Blackhawk, generated $203.3 million and $83.7 million taxable gains, respectively, resulting in a deferred tax expense of $79.4 million and $32.3 million, respectively. The Company's current federal tax expense in 2014, 2013 and 2012 is primarily attributable to alternative minimum tax, primarily generated by taxable gains from the sale of shares of Diamondback and the sale of assets by Blackhawk in 2014. At December 31, 2014 and 2013, the Company owed approximately $17.7 million and $11.0 million, respectively, for state and federal income taxes payable which is included on the accompanying consolidated balance sheets.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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