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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

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, 2018				June 30, 2017				June 30, 2016
Current:
Federal	$	1,186,649			$	168,152			$	8,731,290
State	652,238				581,593				264,254
Total current income tax provision	1,838,887				749,745				8,995,544
Deferred:
Federal	(5,498,890		)		3,880,522				541,891
State	228,034				210,397				33,344
Total deferred income tax provision	(5,270,856		)		4,090,919				575,235
	$	(3,431,969	)		$	4,840,664			$	9,570,779

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 to the income tax provision (benefit) in our financial statements. The rate for 2018 is 27.55% due to our fiscal tax year. This is a result of the transition from the previously enacted 34% federal statutory rate to the new federal tax rate of 21%,, enacted December 31, 2017. Going forward, the federal statutory rate that will be applied is 21%. Our federal statutory rate for fiscal 2017 and 2016 was 34%. The effective tax rates for annual income tax provision (benefit) were approximately (21)%, 38% and 28% year ended June 30, 2018, 2017 and 2016, respectively. Excluding the permanent adjustment of $6.1 million benefit from the revaluation of our deferred income tax liabilities and valuation allowance at December 31, 2017, the effective rate for the year ended June 30, 2018, would have been 16% of income before income taxes.

Our effective tax rate for fiscal 2018 is less than the statutory rate primarily as a result of the reduction in federal tax rate from newly enacted tax legislation as well as the benefit derived from statutory depletion in excess of tax basis partly offset by the state of Louisiana income taxes. Our effective tax rate for 2017 exceeded the statutory rate primarily as a result of state of Louisiana income taxes, partly offset by depletion in excess of basis. 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 and relatively lower state income taxes because a significant legal settlement and derivative gains were not taxable in Louisiana.

	June 30, 2018				% of Income Before Income Taxes			June 30, 2017				% of Income Before Income Taxes			June 30, 2016				% of Income Before Income Taxes
Income tax provision computed at the statutory federal rate:	$	4,459,940			27.6	%		$	4,380,892			34.0	%		$	11,638,588			34.0	%
Reconciling items:
Adjustment of deferred income liability for lower statutory federal tax rate	(5,949,389		)		(36.8	)%		—				—	%		—				—	%
Change in valuation allowance due to newly enacted tax legislation	(111,818		)		(0.7	)%		—				—	%		—				—	%
Depletion in excess of tax basis	(2,433,530		)		(14.9	)%		(92,196		)		(0.7	)%		(2,242,620		)		(6.6	)%
State income taxes, net of federal tax benefit	718,337				4.4	%		522,713				4.1	%		196,415				0.6	%
Permanent differences related to stock-based compensation	(139,333		)		(0.9	)%		27,884				0.2	%		—				—	%
Other	23,824				0.1	%		1,371				—	%		(21,604		)		(0.1	)%
Income tax (benefit) provision	$	(3,431,969	)		(21.2	)%		$	4,840,664			37.6	%		$	9,570,779			28.0	%

Schedule of components of deferred taxes

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

	June 30, 2018				June 30, 2017				June 30, 2016
Current deferred tax asset	$	—			$	—			$	105,321
Non-current deferred tax liability	10,555,435				15,826,291				11,840,693
Net liability	10,555,435				15,826,291				11,735,372

	Asset (Liability)
	June 30, 2018				June 30, 2017				June 30, 2016
Deferred tax assets:
Non-qualified stock-based compensation	$	144,956			$	367,159			$	553,182
Net operating loss carry-forwards	680,186				852,477				386,808
AMT credit carry-forward	—				110,564				—
Other	24,207				18,581				130,947
Gross deferred tax assets	849,349				1,348,781				1,070,937
Valuation allowance	(180,628		)		(292,446		)		(292,446		)
Total deferred tax assets	668,721				1,056,335				778,491
Deferred tax liability:
Oil and natural gas properties	(11,224,156		)		(16,882,626		)		(12,513,863		)
Total deferred tax liability	(11,224,156		)		(16,882,626		)		(12,513,863		)
Net deferred tax liability	$	(10,555,435	)		$	(15,826,291	)		$	(11,735,372	)

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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

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-Section 50
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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.

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-SubTopic 10
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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.

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 12
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