Taxes

12 Months Ended

Dec. 31, 2023

Taxes

Taxes

11. Taxes

Significant components of the provision for (benefit from) income taxes are as follows:

		Year Ended		Year Ended	Year Ended
		December 31,		December 31,	December 31,
		2023		2022	2021
(In thousands)
Current:
Federal	$	106	$	(30,107)	$	1,525
State		317		204		342
Total current	$	423	$	(29,903)	$	1,867
Deferred:
Federal	$	85,002	$	(209,130)	$	7
State		2,089		(12,893)		—
Total deferred	$	87,091	$	(222,023)	$	7
Provision for (benefit from) income taxes	$	87,514	$	(251,926)	$	1,874

A reconciliation of the statutory federal income tax provision (benefit) at the statutory rate to the actual provision for (benefit from) income taxes follows:

	Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,
	2023		2022		2021
Income tax provision at statutory rate	$	115,826	$	226,587	$	71,284
Percentage depletion and other permanent items		(30,585)		(52,647)		(29,392)
State taxes, net of effect of federal taxes		2,725		2,988		16,490
Change in valuation allowance		(879)		(420,688)		(69,603)
Other, net		427		(8,166)		13,095
Provision for (benefit from) income taxes	$	87,514	$	(251,926)	$	1,874

Significant components of the Company’s deferred tax assets and liabilities that result from carryforwards and temporary differences between the financial statement basis and tax basis of assets and liabilities are summarized as follows:

	December 31,		December 31,
	2023		2022
(In thousands)
Deferred tax assets:
Tax loss carryforwards	$	157,648	$	219,302
Tax credit carryforwards		1,584		1,656
Investment in partnerships		24,933		39,999
Other		28,070		38,362
Gross deferred tax assets	$	212,235	$	299,319
Valuation allowance		(82,825)		(83,704)
Total deferred tax assets	$	129,410	$	215,615
Deferred tax liabilities:
Plant and equipment		1,075		1,245
Convertible Notes		—		75
Other		4,311		4,825
Total deferred tax liabilities	$	5,386	$	6,145
Net deferred tax asset	$	124,024	$	209,470

The Company provides for deferred income taxes for temporary differences arising from differences between the financial statement and tax basis of assets and liabilities existing at each balance sheet date using enacted tax rates expected to be in effect when the related taxes are expected to be paid or recovered.

The Company assesses the need for a valuation allowance against its deferred tax assets (including temporary differences and tax attributes) through a review of all available positive and negative evidence. On the basis of this assessment for the year ended December 31, 2022, the Company determined that it is more likely than not that the net deferred tax assets would be realized, except for certain state NOLs and capital loss carryforwards, and released the valuation allowance that was recorded against the Company's net deferred tax assets. As of December 31, 2023, the Company continues to carry a valuation allowance against certain state NOLs and capital loss carryforwards.

At December 31, 2023, the Company has gross NOL carryforwards for federal income tax purposes of $319.3 million. Of these carryforwards, approximately $46.6 million will expire, if not utilized, starting in 2037. The remaining carryforwards have no expiration, however, they can only be used to offset 80% of U.S. federal taxable income.

The ability to use the NOLs in existence immediately prior to emergence from bankruptcy in 2016 has been limited by the “ownership change” under Section 382 of the Internal Revenue Code (the “Code”) that occurred as a result of such emergence (the “Emergence Ownership Change”). NOLs generated after the Emergence Ownership Change are generally not subject to limitations resulting from the Emergence Ownership Change.

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law. This legislation introduces a 15% corporate alternative minimum tax among its key tax provisions. The IRA is effective for years beginning after December 31, 2022. The Company did not experience any related material impact in the current year. The Company will continue to evaluate the effects of IRA on future periods, however, does not anticipate any material impact.

A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:

	(In thousands)
Balance at December 31, 2020	$	48,116
Additions based on tax positions to the current year		3,467
Additions for tax positions related to the prior year		3,931
Reductions for tax positions of prior years		(2,868)
Reductions as a result of lapses in the statute of limitations		(3,683)
Balance at December 31, 2021		48,963
Additions for tax positions related to the current year		5,446
Additions for tax positions related to the prior year		768
Reductions for tax positions of prior years		(125)
Reductions as a result of lapses in the statute of limitations		(36,988)
Balance at December 31, 2022		18,064
Additions based on tax positions related to the current year		3,019
Additions for tax positions related to the prior year		731
Increases for tax positions of prior years		1,485
Reductions as a result of lapses in the statute of limitations		(2,732)
Balance at December 31, 2023	$	20,567

If recognized, the entire amount of the gross unrecognized tax benefits at December 31, 2023 would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company had no accrued interest and penalties at December 31, 2023 and 2022, respectively. In the next 12 months, no gross unrecognized tax benefits are expected to be reduced due to the expiration of the statute of limitations.

The Company is subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. The tax years 2016 through 2022 remain open to examination for U.S. federal income tax matters and 2002 through 2022 remain open to examination for various state income tax matters.