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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The income tax provision consists of the following:
| 2017 |  | 2016 |  | 2015
| (In thousands)
Current: |  |  |  |  |
State | $ | 2,167 |  |  | $ | (1,330 | ) |  | $ | (1,069 | )
Federal | 3,362 |  |  | (19,770 | ) |  | (439 | )
Deferred: |  |  |  |  |
State | (118 | ) |  | (386 | ) |  | (14,218 | )
Federal | (3,602 | ) |  | 18,573 |  |  | (240,275 | )
Total income tax expense (benefit) provision | $ | 1,809 |  |  | $ | (2,913 | ) |  | $ | (256,001 | )
A reconciliation of the statutory federal income tax amount to the recorded expense follows:
| 2017 |  | 2016 |  | 2015
| (In thousands)
Income (loss) before federal income taxes | $ | 436,961 |  |  | $ | (982,622 | ) |  | $ | (1,480,885 | )
Expected income tax at statutory rate | 152,936 |  |  | (343,918 | ) |  | (518,310 | )
State income taxes | 2,299 |  |  | (5,883 | ) |  | (15,908 | )
Other differences | 5,731 |  |  | 4,293 |  |  | (420 | )
Intraperiod tax allocation | — |  |  | (1,349 | ) |  | — |
Remeasurement due to Tax Cut and Jobs Act | 190,034 |  |  | — |  |  | — |
Change in valuation allowance due to current year activity | (158,704 | ) |  | 343,944 |  |  | 278,637 |
Change in valuation allowance due to Tax Cuts and Jobs Act | (190,487 | ) |  | — |  |  | — |
Income tax expense (benefit) recorded | $ | 1,809 |  |  | $ | (2,913 | ) |  | $ | (256,001 | )
The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2017, 2016 and 2015 are estimated as follows:
| 2017 |  | 2016 |  | 2015
| (In thousands)
Deferred tax assets: |  |  |  |  |
Net operating loss carryforward | $ | 120,626 |  |  | $ | 162,073 |  |  | $ | 46,209 |
Oil and gas property basis difference | 151,260 |  |  | 386,302 |  |  | 292,838 |
Investment in pass through entities | 12,343 |  |  | 27,469 |  |  | 14,034 |
FASB ASC 718 compensation expense | 813 |  |  | 2,084 |  |  | 1,922 |
Business energy investment tax credit | 369 |  |  | 369 |  |  | — |
AMT credit | — |  |  | 3,842 |  |  | 23,629 |
Charitable contributions carryover | 255 |  |  | 303 |  |  | 146 |
Unrealized loss on hedging activities | — |  |  | 48,317 |  |  | — |
Foreign tax credit carryforwards | 2,074 |  |  | 2,074 |  |  | 2,074 |
Accrued liabilities | 285 |  |  | 397 |  |  | — |
ARO liability | 15,897 |  |  | 12,107 |  |  | 9,415 |
Non-oil and gas property basis difference | 171 |  |  | — |  |  | — |
State net operating loss carryover | 6,954 |  |  | 5,351 |  |  | 4,344 |
Total deferred tax assets | 311,047 |  |  | 650,688 |  |  | 394,611 |
Valuation allowance for deferred tax assets | (298,830 | ) |  | (645,841 | ) |  | (303,246 | )
Deferred tax assets, net of valuation allowance | 12,217 |  |  | 4,847 |  |  | 91,365 |
Deferred tax liabilities: |  |  |  |  |
Non-oil and gas property basis difference | — |  |  | 155 |  |  | 715 |
Unrealized gain on hedging activities | 11,009 |  |  | — |  |  | 66,422 |
Total deferred tax liabilities | 11,009 |  |  | 155 |  |  | 67,137 |
Net deferred tax asset | $ | 1,208 |  |  | $ | 4,692 |  |  | $ | 24,228 |
The Company has an available federal tax net operating loss carryforward estimated at approximately $574.4 million as of December 31, 2017. This carryforward will begin to expire in the year 2023. Based upon the December 31, 2017 net deferred tax asset position and a recent history of cumulative losses, 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 $121.3 million that began to expire in 2017 and federal foreign tax credit carryovers of $2.1 million which began to expire in 2017. The Company believes that it can utilize an Oklahoma state NOL through carrybacks. Therefore, the Company has recorded a total valuation allowance of $298.8 million related to the remaining net deferred tax asset. The Tax Act was enacted on December 22, 2017. The Tax Act reduces the US federal corporate tax rate from 35% to 21% effective January 1, 2018. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the statutory rate, the Company has remeasured its deferred tax balances, the effects of which are reflected in the rate reconciliation shown in the table above. The Company has applied the provisions of SEC Staff Accounting Bulletin No. 118 ("SAB 118"). SAB 118 allows for a measurement period in which companies can either use provisional estimates for changes resulting from the Tax Act or apply the tax laws that were in effect immediately prior to the Tax Act being enacted if estimates cannot be determined at the time of the preparation of the financial statements until the actual impacts can be determined. The Company has recorded a provisional estimate of $0.5 million benefit for the impact of the Tax Act within its December 31, 2017 financial statements. The Company will continue to evaluate the impacts of the Tax Act on deferred taxes, compensation and international provisions and will record adjustments, as needed, based on changes to its estimates. The Company's income tax benefit in 2016 and 2015 was 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. The Company's income tax expense in 2017 is primarily the result of a change in state income tax positions. As of December 31, 2017, the amount of unrecognized tax benefits related to federal and state tax liabilities associated with uncertain tax positions was immaterial.

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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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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