Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The provision for income taxes has been computed as follows:


	Years Ended December 31
	2020		2019
Net loss before income taxes	$	(2,599,357)	$	(78,921)
Expected income taxes at the statutory rate of 25.42%(1) (2019 – 26.72%)	(660,757)		(21,088)
(Increase) decrease in income tax recovery resulting from:
Share-based compensation	1,834		4,247
Effect of foreign exchange	1,017		(8,155)
Effect of change in income tax rates	10,969		(6,098)
Effect of rate adjustments for foreign jurisdictions	22,375		(27,785)
Effect of change in deferred tax benefit not recognized	444,117		(7,563)
Effect of U.S. tax change	19,807		—
Adjustments and assessments	245		(20)
Income tax recovery	$	(160,393)	$	(66,462)

(1)On October 20, 2020 the Alberta government enacted legislation to decrease the corporate income tax rate from 10% to 8% effective July 1, 2020.

A continuity of the net deferred income tax liability is detailed in the following tables:


As at	January 1, 2020		Recognized in Net Income		Foreign Currency Translation Adjustment		December 31, 2020
Taxable temporary differences:
Petroleum and natural gas properties	$	(881,994)	$	378,321	$	1,048	$	(502,625)
Financial derivatives	—		—		—		—

Other	(2,403)		(18,839)		(1,135)		(22,377)
Deductible temporary differences:
Asset retirement obligations	164,523		23,432		(115)		187,840
Financial derivatives	802		4,608		—		5,410
Non-capital losses	386,717		(141,468)		(3,735)		241,514
Other	97,047		(85,087)		(8,255)		3,705
Net deferred income tax liability (1)	$	(235,308)	$	160,967	$	(12,192)	$	(86,533)

(1)Non-capital loss carry-forwards at December 31, 2020 totaled $2,165.2 million and expire from 2034 to 2040.


As at	January 1, 2019		Recognized in Net Loss		Foreign Currency Translation Adjustment		December 31, 2019
Taxable temporary differences:
Petroleum and natural gas properties	$	(954,506)	$	48,995	$	23,517	$	(881,994)
Financial derivatives	(21,486)		21,486		—		—

Other	(3,045)		5,192		(4,550)		(2,403)
Deductible temporary differences:
Asset retirement obligations	172,359		(7,364)		(472)		164,523
Financial derivatives	—		802		—		802
Non-capital losses	399,699		(1,460)		(11,522)		386,717
Finance costs	96,143		904		—		97,047
Net deferred income tax liability (1)	$	(310,836)	$	68,555	$	6,973	$	(235,308)

(1)Non-capital loss carry-forwards at December 31, 2019 totaled $1,714.6 million and expire from 2034 to 2039.