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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of components of income tax provision (benefit)

The components of our income tax provision (benefit) are as follows:

	June 30, 2016				June 30, 2015				June 30, 2014
Current:
Federal	$	8,731,290			$	1,413,296			$	386,018
State	264,254				608,436				161,168
Total current income tax provision	8,995,544				2,021,732				547,186
Deferred:
Federal	541,891				1,282,059				1,319,727
State	33,344				140,430				25,085
Total deferred income tax provision	575,235				1,422,489				1,344,812
	$	9,570,779			$	3,444,221			$	1,891,998

Schedule of reconciliation of statutory income tax expense to income tax provision

The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate, currently 34%, to the income tax provision in our financial statements. The effective tax rate for 2016 is less than the statutory rate primarily due to the benefit derived from statutory depletion in excess of tax basis. The effective tax rates for 2015 and 2014 exceed the statutory rate as a result of state income taxes, primarily in the state of Louisiana, with smaller adjustments related to stock-based compensation and other permanent differences.

	June 30, 2016				June 30, 2015				June 30, 2014
Income tax provision (benefit) computed at the statutory federal rate	$	11,638,588			$	2,868,267			$	1,866,366
Reconciling items:
Depletion in excess of basis	(2,242,620		)		—				—
State income taxes, net of federal tax benefit	196,415				595,708				189,081
Permanent differences related to stock-based compensation	—				—				(155,817		)
Other permanent differences	(21,604		)		(19,754		)		(7,632		)
Income tax provision	$	9,570,779			$	3,444,221			$	1,891,998

Schedule of components of deferred taxes

The above assets and liabilities are present on the balance sheet as follows:

	June 30, 2016				June 30, 2015				June 30, 2014
Current deferred tax asset	$	105,321			$	82,414			$	159,624
Non-current deferred tax liability	11,840,693				11,242,551				9,897,272
Net liability	11,735,372				11,160,137				9,737,648

	Asset (Liability)
	June 30, 2016				June 30, 2015				June 30, 2014
Deferred tax assets:
Non-qualified stock-based compensation	$	553,182			$	173,647			$	134,469
Net operating loss carry-forwards	386,808				400,288				427,249
AMT credit carry-forward*	—				701,254				701,254
Other	130,947				91,113				165,775
Gross deferred tax assets	1,070,937				1,366,302				1,428,747
Valuation allowance	(292,446		)		(292,446		)		(292,446		)
Total deferred tax assets	778,491				1,073,856				1,136,301
Deferred tax liability:
Oil and natural gas properties	(12,513,863		)		(12,233,993		)		(10,873,949		)
Total deferred tax liability	(12,513,863		)		(12,233,993		)		(10,873,949		)
Net deferred tax liability	$	(11,735,372	)		$	(11,160,137	)		$	(9,737,648	)

_______________________________________________________________________________

* In fiscal 2016 we used our total AMT credit carry-forward of $901,545. Our previous deferred tax asset above did not include $200,291 of AMT credit carry-forward associated with the tax benefit related to stock-based compensation.

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- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: 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=65882285&loc=d3e32639-109319

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- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: 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=65882285&loc=d3e32537-109319

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319

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