Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income tax expense (benefit) consists of the following (in thousands):



	Successor			Predecessor
	Years ended December 31,
	2017			2016			2015
Current:
Federal	$	(1,740	)	$	—		$	(151	)
State	(16		)	521			(9		)
Total	(1,756		)	521			(160		)
Deferred:
Federal	74			(4,486		)	(127,482		)
State	4			82			(3,688		)
Total	78			(4,404		)	(131,170		)
Total income tax expense (benefit)	$	(1,678	)	$	(3,883	)	$	(131,330	)

Reconciliation Between Federal Statutory Rate and Income (Benefit) Expense

Reconciliation between the amount determined by applying the federal statutory rate of 35% to loss before income taxes to income (benefit) expense is as follows (in thousands):



	Successor			Predecessor
	Years ended December 31,
	2017			2016				2015
Statutory federal income tax	$	(34,423	)	$	(44,540	)		$	(130,576	)
Meals and entertainment	706			522				684
State taxes, net of federal benefit	(1,662		)	(6,778		)		(3,698		)
Valuation allowance	(54,418		)	188,970			—	—
Remeasurement of Federal Deferred Taxes	87,227			—				—
Cancellation of debt income	—			(178,017		)	—	—
Bankruptcy transaction costs	—			9,783			—	—
Tax basis adjustments	(862		)	17,981			—	—
Goodwill impairment	—			—				2,833
Changes in estimates and other	1,754			8,196				(573		)
	$	(1,678	)	$	(3,883	)		$	(131,330	)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands):



	Successor			Predecessor
	December 31, 2017			December 31, 2016
Deferred tax assets:
Operating loss carryforward	$	151,468		$	208,973
Goodwill and intangibles	26,717			49,380
Accrued liabilities	9,418			12,351
Deferred debt costs	2,432			5,158
Deferred compensation	2,902			79
Receivables allowance	348			680
Asset retirement obligation	573			859
Inventory	105			167
Valuation Allowances	(146,330		)	(189,185		)
Total deferred tax assets	$	47,633		$	88,462
Deferred tax liabilities:
Property and equipment	(46,881		)	(88,450		)
Prepaid expenses	(830		)	(12		)
Total deferred tax liabilities	$	(47,711	)	$	(88,462	)
Net deferred tax liability	$	(78	)	$	—
Recognized as:
Deferred tax liabilities - non-current	(78		)	—
Net deferred tax liabilities	$	(78	)	$	—