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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company’s income tax (benefit) provision consisted of the following components (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | — |  |  | — |  |  | — |
| — |  |  | — |  |  | — |
Deferred |  |  |  |  |
Federal | 12,002 |  |  | (55,796) |  |  | — |
State | 1,958 |  |  | (8,733) |  |  | — |
| 13,960 |  |  | (64,529) |  |  | — |
Total (benefit) provision | $ | 13,960 |  |  | $ | (64,529) |  |  | $ | — |
A reconciliation of the (benefit) provision for income taxes at the statutory federal tax rate to the Company’s actual income tax (benefit) provision is as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Computed at federal statutory rate | $ | 15,712 |  | $ | 37,304 |  | $ | 24,404
State taxes, net of federal benefit | 2,433 |  | 5,843 |  | 3,012
Non-deductible expenses | 2 |  | 3 |  | 83
Stock-based compensation | (71) |  | 23 |  | (541)
Return to provision adjustments | 738 |  | 1,015 |  | (221)
Change in statutory tax rate | 2,665 |  | 25,499 |  | —
Change in state net operating loss carryforwards | — |  | 31,762 |  | —
Change in valuation allowance | (7,537) |  | (165,978) |  | (26,733)
Other | 18 |  | — |  | (4)
Total (benefit) provision | $ | 13,960 |  | $ | (64,529) |  | $ | —
Effective tax rate | 18.7 | % |  | (36.3) | % |  | — | %
Deferred income taxes are provided to reflect the future tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. In assessing the realizability of the deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future income in periods in which the deferred tax assets can be utilized. In prior years, we determined that the deferred tax assets did not meet the more likely than not threshold of being utilized and thus recorded a valuation allowance. As of December 31, 2023, we partially released our valuation allowance on our deferred tax assets by $50.6 million. We anticipate being able to utilize these deferred tax assets based on the generation of future income. A change in the estimate of future income could cause the valuation allowance to be adjusted in subsequent periods. As the partial valuation allowance release as of December 31, 2023 was lower than the partial valuation allowance release as of December 31, 2022 of $64.5 million, the Company recognized $14.0 million of deferred federal and state income tax expense for the year ended December 31, 2023. Significant components of the Company’s deferred tax assets and liabilities are as follows (in thousands):
| December 31, 2023 |  | December 31, 2022 |
Deferred tax liabilities |  |  |  |
Investments (1) | $ | — |  |  | $ | — |  |
Derivative contracts | — |  |  | — |  |
Total deferred tax liabilities | — |  |  | — |  |
Deferred tax assets |  |  |  |
Property, plant and equipment | 68,750 |  |  | 89,090 |  |
Net operating loss carryforwards | 372,903 |  |  | 373,702 |  |
Tax credits and other carryforwards | 33,851 |  |  | 33,852 |  |
Asset retirement obligations | 13,551 |  |  | 13,791 |  |
Investments (1) | 121 |  |  | 165 |  |
Other | 1,618 |  |  | 1,392 |  |
Total deferred tax assets | 490,794 |  |  | 511,992 |  |
Valuation allowance | (440,225) |  |  | (447,463) |  |
Net deferred tax asset | $ | 50,569 |  |  | $ | 64,529 |  |
____________________ (1) Includes the Company’s deferred tax liability resulting from its investment in the Royalty Trusts. Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change. As a result of the Chapter 11 reorganization and related transactions, the Company experienced an ownership change within the meaning of IRC Section 382 during 2016 that subjected certain of the Company’s tax attributes, including net operating losses ("NOLs"), to an IRC Section 382 limitation. This limitation has not resulted in cash taxes for any period subsequent to the ownership change. Since the 2016 ownership change, the Company has generated additional NOLs and other tax attributes that are not currently subject to an IRC Section 382 limitation. The Company's ability to use NOLs and other tax attributes to reduce taxable income and income taxes could be materially impacted by a future IRC 382 ownership change. Future transactions involving the Company's stock including those outside of the Company's control could cause an IRC 382 ownership change resulting in a limitation on tax attributes currently not limited and a more restrictive limitation on tax attributes currently subject to the previous IRC 382 limitation. As of December 31, 2023, the Company had approximately $1.6 billion of federal NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $1.6 billion of federal NOL carryforwards, $0.7 billion expire during the years 2025 through 2037, while $0.9 billion do not have an expiration date. In addition, the Company had approximately $1.1 billion of state NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation. Of the $1.1 billion in state NOL carryforwards, approximately $199 million are derived from states the Company currently does not operate in. Of the remaining state NOL carryforwards, $651 million do not have an expiration date and $237 million expire during the years 2026 through 2037. Additionally, the Company had federal tax credits in excess of $33.5 million which begin expiring in 2029. The Company did not have any unrecognized tax benefits at December 31, 2023, 2022 or 2021. The Company’s only taxing jurisdiction is the United States (federal and state). The Company’s tax years 2020 to present remain open for federal examination. Additionally, tax years 2005 through 2019 remain subject to examination for the purpose of determining the amount of federal NOL and other carryforwards. The number of years open for state tax audits varies, depending on the state, but is generally from three to five years.

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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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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