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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | 9. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2013 and 2012 are as follows:
|  | Year Ended December 31, |
(Thousands of dollars) |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (462 | ) |  | $ | 16 |
State |  |  | 266 |  |  |  | (130 | )
Total current |  |  | (196 | ) |  |  | (114 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 6,549 |  |  |  | 7,009 |
State |  |  | 465 |  |  |  | (39 | )
Total deferred |  |  | 7,014 |  |  |  | 6,970 |
Total income tax provision |  | $ | 6,818 |  |  | $ | 6,856 |
The components of net deferred tax assets and liabilities are as follows:
|  | At December 31, |
(Thousands of dollars) |  | 2013 |  |  | 2012 |
Current Assets: |  |  |  |  |  |  |  |
Accrued liabilities |  | $ | 683 |  |  | $ | 613 |
Allowance for doubtful accounts |  |  | 118 |  |  |  | 124 |
Derivative contracts |  |  | 677 |  |  |  | (83 | )
Total current deferred income tax assets |  | $ | 1,478 |  |  | $ | 654 |
Non-Current Assets: |  |  |  |  |  |  |  |
Alternative minimum tax credits |  | $ | 5,852 |  |  | $ | 5,890 |
Net operating loss carry-forwards |  |  | 168 |  |  |  | 114 |
Percentage depletion carry-forwards |  |  | 4,543 |  |  |  | 4,287 |
Derivative contracts |  |  | — |  |  |  | 91 |
Total non-current assets |  |  | 10,563 |  |  |  | 10,382 |
Non-Current Liabilities: |  |  |  |  |  |  |  |
Basis differences relating to managed partnerships |  |  | 2,462 |  |  |  | 1,492 |
Depletion and depreciation |  |  | 39,694 |  |  |  | 33,084 |
Derivative contracts |  |  | 369 |  |  |  | — |
Total non-current liabilities |  |  | 42,525 |  |  |  | 34,576 |
Net non-current deferred income tax liabilities |  | $ | 31,962 |  |  | $ | 24,194 |
The total provision for income taxes for the years ended December 31, 2013 and 2012 varies from the federal statutory tax rate as a result of the following:
|  | Year Ended December 31, |
(Thousands of dollars) |  | 2013 |  |  | 2012 |
Expected tax expense |  | $ | 6,491 |  |  | $ | 7,450 |
State income tax, net of federal benefit |  |  | 488 |  |  |  | (112 | )
Percentage depletion |  |  | (422 | ) |  |  | (902 | )
Other, net |  |  | 261 |  |  |  | 420 |
Total income tax provision |  | $ | 6,818 |  |  | $ | 6,856 |
The Company showed a net operating loss on its 2012 federal income tax return, which was carried back to the 2010 and 2011 tax years, resulting in total refunds of $685,000. The net operating loss and related refunds were the result of elections to deduct intangible drilling costs in 2012 which was made upon filing the return in 2013, and the refunds result in the lowering of the current federal income tax expense in 2013. Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. Differences relating to oil and gas properties owned through Prime Offshore are reflected under “Depletion and depreciation,” while basis differences relating to the managed partnerships are reflected under “Basis differences relating to managed partnerships.” The Company is entitled to percentage depletion on certain of its wells, which is calculated without reference to the basis of the property. To the extent that such depletion exceeds a property’s basis, it creates a permanent difference, which lowers the Company’s effective rate. The Company has $5.9 million in alternative minimum tax (“AMT”) credits which can be used to lower the regular tax liability to the tentative AMT amount in years where the tentative AMT amount is less. These credits do not expire. The Company has not recorded any provision for uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The 2004, 2005, 2006, and 2009 federal income tax returns have been audited by the Internal Revenue Service, while the 2010, 2011 and 2012 returns remain open for examination. Returns for unexamined earlier years may be examined and adjustments made to the amount of percentage depletion and AMT credit carryforwards flowing from those years into an open tax year, although in general no assessment of income tax may be made for those years on which the statute has closed. State returns for the years 2010, 2011 and 2012 remain open for examination by the relevant taxing authorities.

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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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