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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The income tax provision consists of the following:
| 2016 |  | 2015 |  | 2014
| (In thousands)
Current: |  |  |  |  |
State | $ | (1,330 | ) |  | $ | (1,069 | ) |  | $ | 14,384 |
Federal | (19,770 | ) |  | (439 | ) |  | 16,039 |
Deferred: |  |  |  |  |
State | (386 | ) |  | (14,218 | ) |  | 4,314 |
Federal | 18,573 |  |  | (240,275 | ) |  | 118,604 |
Total income tax (benefit) expense provision | $ | (2,913 | ) |  | $ | (256,001 | ) |  | $ | 153,341 |
A reconciliation of the statutory federal income tax amount to the recorded expense follows:
| 2016 |  | 2015 |  | 2014
| (In thousands)
(Loss) income before federal income taxes | $ | (982,622 | ) |  | $ | (1,480,885 | ) |  | $ | 400,744 |
Expected income tax at statutory rate | (343,918 | ) |  | (518,310 | ) |  | 140,259 |
State income taxes | (5,883 | ) |  | (15,908 | ) |  | 11,570 |
Other differences | 4,293 |  |  | (420 | ) |  | 1,512 |
Intraperiod tax allocation | (1,349 | ) |  | — |  |  | — |
Changes in valuation allowance | 343,944 |  |  | 278,637 |  |  | — |
Income tax (benefit) expense recorded | $ | (2,913 | ) |  | $ | (256,001 | ) |  | $ | 153,341 |
The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2016, 2015 and 2014 are estimated as follows:
| 2016 |  | 2015 |  | 2014
| (In thousands)
Deferred tax assets: |  |  |  |  |
Net operating loss carryforward | $ | 162,073 |  |  | $ | 46,209 |  |  | $ | 1,091 |
Oil and gas property basis difference | 386,302 |  |  | 292,838 |  |  | — |
Investment in pass through entities | 27,469 |  |  | 14,034 |  |  | — |
FASB ASC 718 compensation expense | 2,084 |  |  | 1,922 |  |  | 1,562 |
Business energy investment tax credit | 369 |  |  | — |  |  | — |
AMT credit | 3,842 |  |  | 23,629 |  |  | 24,053 |
Charitable contributions carryover | 303 |  |  | 146 |  |  | 150 |
Unrealized loss on hedging activities | 48,317 |  |  | — |  |  | — |
Foreign tax credit carryforwards | 2,074 |  |  | 2,074 |  |  | 2,074 |
Accrued liabilities | 397 |  |  | — |  |  | 1,260 |
ARO liability | 12,107 |  |  | 9,415 |  |  | — |
State net operating loss carryover | 5,351 |  |  | 4,344 |  |  | 2,627 |
Total deferred tax assets | 650,688 |  |  | 394,611 |  |  | 32,817 |
Valuation allowance for deferred tax assets | (645,841 | ) |  | (303,246 | ) |  | (13,522 | )
Deferred tax assets, net of valuation allowance | 4,847 |  |  | 91,365 |  |  | 19,295 |
Deferred tax liabilities: |  |  |  |  |
Oil and gas property basis difference | — |  |  | — |  |  | 183,767 |
Investment in pass through entities | — |  |  | — |  |  | 27,938 |
Non-oil and gas property basis difference | 155 |  |  | 715 |  |  | 849 |
Unrealized gain on hedging activities | — |  |  | 66,422 |  |  | 37,006 |
Total deferred tax liabilities | 155 |  |  | 67,137 |  |  | 249,560 |
Net deferred tax asset (liability) | $ | 4,692 |  |  | $ | 24,228 |  |  | $ | (230,265 | )
The Company has an available federal tax net operating loss carryforward estimated at approximately $463.1 million as of December 31, 2016. This carryforward will begin to expire in the year 2036. Based upon the December 31, 2016 net deferred tax asset position and a significant loss in 2016, management believes that there is sufficient negative evidence to place a valuation allowance on the net deferred tax asset that may not be utilized based upon a more likely than not basis. The Company also has state net operating loss carryovers of $111.9 million that will begin to expire in 2016, alternative minimum tax credits of $3.8 million with no expiration date and federal foreign tax credit carryovers of $2.1 million which begin to expire in 2017. The Company believes that it can utilize an Oklahoma state NOL as well as a portion of the AMT credit through carrybacks and a refundable election. Therefore, the Company has recorded a total valuation allowance of $645.8 million related to the remaining net deferred tax asset. In 2014, the Company's sale of its remaining shares of Diamondback common stock, as well as its share of the proceeds from Blackhawk's sale of its interest in Ohio Gas Gathering Company, LLC and Ohio Condensate Company, LLC, generated $203.3 million and $83.7 million of taxable gain, respectively, resulting in a deferred tax expense of $79.4 million and $32.3 million, respectively. The Company's current federal tax benefit in 2016 and 2015 is primarily attributable to the Company recording a full cost ceiling impairment of $715.5 million and $1.4 billion against the oil and gas assets, while the federal tax expense in 2014 is a result of operations plus the sale of Diamondback common shares and the sale of assets by Blackhawk. No amounts for state and federal income taxes payable were owed at December 31, 2016 and 2015.

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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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
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