XML 76 R15.htm IDEA: XBRL DOCUMENT
v3.20.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | 8. Income Taxes The components of the provision (benefit) for income taxes for the years ended December 31, 2019 and 2018 are as follows:
|  | Year Ended December 31, |
(Thousands of dollars) |  | 2019 |  |  | 2018 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (1,798 | ) |  | $ | (4,742 | )
State |  |  | 123 |  |  |  | (146 | )
Total current |  |  | (1,675 | ) |  |  | (4,888 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 3,536 |  |  |  | 7,620 |
State |  |  | (440 | ) |  |  | 246 |
Total deferred |  |  | 3,096 |  |  |  | 7,866 |
Total income tax provision |  | $ | 1,421 |  |  | $ | 2,978 |
|  | At December 31, |
(Thousands of dollars) |  | 2019 |  |  | 2018 |
Deferred Tax Assets: |  |  |  |  |  |  |  |
Accrued liabilities |  | $ | 614 |  |  | $ | 519 |
Allowance for doubtful accounts |  |  | 95 |  |  |  | 51 |
Derivative Contracts |  |  | 110 |  |  |  | 0 |
Disallowed Interest Carryforwards |  |  | — |  |  |  | 769 |
Alternative minimum tax credits |  |  | 1,720 |  |  |  | 4,760 |
State Net operating loss carry-forwards |  |  | 821 |  |  |  | 469 |
Percentage depletion carry-forwards |  |  | — |  |  |  | — |
General Business Credits |  |  | — |  |  |  | 137 |
Total deferred tax assets |  |  | 3,360 |  |  |  | 6,705 |
Deferred Tax Liabilities: |  |  |  |  |  |  |  |
Basis differences relating to managed partnerships |  |  | 2,109 |  |  |  | 2,296 |
Depletion and depreciation |  |  | 37,173 |  |  |  | 36,711 |
Derivative Contracts |  |  | — |  |  |  | 526 |
Total deferred tax liabilities |  |  | 39,282 |  |  |  | 39,533 |
Net deferred tax liabilities |  | $ | 35,922 |  |  | $ | 32,828 |
The total provision for income taxes for the years ended December 31, 2019 and 2018 varies from the federal statutory tax rate as a result of the following:
|  | Year Ended December 31, |
(Thousands of dollars) |  | 2019 |  |  | 2018 |
Expected tax expense |  | $ | 1,028 |  |  | $ | 3,676 |
Revaluation of deferred tax attributes |  |  | — |  |  |  | 0 |
Executive Compensation |  |  | 597 |  |  |  | 553 |
State income tax, net of federal benefit |  |  | (303 | ) |  |  | 79 |
Percentage depletion |  |  | (341 | ) |  |  | (140 | )
AMT and Marginal Well Credits |  |  | 436 |  |  |  | (1,186 | )
Other, net |  |  | 4 |  |  |  | (4 | )
Total income tax provision (benefit) |  | $ | 1,421 |  |  | $ | 2,978 |
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. On December 22, 2017, the U.S. enacted into legislation the Tax Cuts and Jobs Act (2017 Tax Act). Under the 2017 Tax Act, the company may use alternative minimum tax (AMT) credits to fully offset any regular tax liability. In addition, a portion of the minimum tax credit which exceeds the regular tax liability is refundable in future years. The refundable portion is 50% of any excess credit in the years 201 9 through 2020 and 100% in 2021. The Company expects to receive a refund of $1.720 million in 20 20 based on refundable credits claimed on the 201 9 return, and additional $1.720 million refunds of previously paid taxes on its tax returns for the years 20 20 and 2021. The Company is entitled to marginal well production credits under Internal Revenue Code section 45I. The Marginal Well Credit is phased out when oil and gas prices exceed certain levels. 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 availability of the percentage depletion deduction is phased out as an entity’s production exceeds certain levels, and based on the Company’s increasing production the percentage depletion deduction is becoming less significant. The Company is allowed a credit against the Texas Franchise Tax based on net operating losses incurred in prior periods. The credits allowed are $89 thousand in the years 20 20 through 2026. Any credits not utilized in a given year due to the allowable credit exceeding the tax liability may be carried forward. No credit may be carried forward past 2026. The value of the credit is calculated net of the federal income tax effect. 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, 2009 and 2017 federal income tax returns have been audited by the Internal Revenue Service. 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 2017 through 2019 remain open for examination by the relevant taxing authorities

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration