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Income Taxes
 6 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We file a consolidated federal income tax return in the United States of America in addition to various combined and separate filings in several state and local jurisdictions.
There were no unrecognized tax benefits, nor any accrued interest or penalties associated with unrecognized tax benefits during any periods presented in these unaudited consolidated condensed financial statements. We believe that we have appropriate support for the income tax positions taken and to be taken on the Company's tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. The Company’s federal and state income tax returns are open to audit under the statute of limitations for the fiscal years ended June 30, 2018 through June 30, 2021 for federal tax purposes and for the fiscal years ended June 30, 2017 through June 30, 2021 for state tax purposes. To the extent we utilize net operating losses generated in earlier years, such earlier years may also be subject to audit.
For the six months ended December 31, 2021, we recognized income tax expense of $3.3 million and had an effective tax rate of 21.3% compared to an income tax benefit of $5.5 million and an effective tax rate of 21.7% for the six months ended December 31, 2020.
Our effective tax rate will typically differ from the statutory federal rate as a result of state income taxes, primarily in the states of Louisiana and Texas, and differences related to percentage depletion in excess of basis, stock-based compensation, and other permanent differences. For both periods, our respective statutory federal tax rate was 21%.
At December 31, 2021, the Company has a $2.4 million receivable for the remainder of income tax refunds from its amended federal and state tax returns for fiscal 2017 and 2018 for Enhanced Oil Recovery (“EOR”) credits related to our Delhi field interests as well as a refund for its fiscal 2019 federal tax return. Subsequent to filing these returns, the Company has received $0.8 million of income tax refunds, and the Company currently anticipates receiving the remaining refund within the next twelve months based on inquiries and communication with the Internal Revenue Service, although no assurances can be made as to the actual date of receipt. During the six months ended December 31, 2021, we recognized an income tax benefit of $0.2 million attributable to the EOR credit.
We must assess the likelihood that we will be able to realize our deferred tax assets. Realization is dependent on generating sufficient taxable income over the period the deferred tax assets are deductible. Currently, the Company is in a cumulative taxable loss position, but with the increase in commodity prices and absent material unexpected losses, the Company may be in a cumulative taxable income position during the current fiscal year. Management considered the reversal of deferred tax liabilities and tax planning strategies in assessing the realization of deferred tax assets. Based upon the weight of available evidence, the Company believes that some of the deferred tax assets are not likely to be realized at the time of this report. For the six months ended December 31, 2021, there was no material change in the valuation allowance related to the federal and state deferred tax assets.