Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of income tax expense from continuing operations

For the years ended December 31, 2018, 2019 and 2020, income tax benefit consisted of the following (in thousands):

	Year Ended December 31,
	2018		2019		2020
Federal income tax expense (benefit)	$	—		5,048		(209)
State income tax expense (benefit), net of federal benefit		(128,857)		(79,158)		(397,273)
Total income tax benefit	$	(128,857)		(74,110)		(397,482)

Schedule of reconciliation of income tax expense from continuing operations

Income tax expense (benefit) differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 21% to the years ended December 31, 2018, 2019 and 2020 to income or loss before taxes as a result of the following (in thousands):

	Year Ended December 31,
	2018		2019		2020
Federal income tax expense (benefit)	$	(36,657)		(77,122)		(348,158)
State income tax expense (benefit), net of federal benefit		(12,627)		(8,826)		(50,584)
Change in state tax rate, net of federal effect		(40,415)		24,041		2,291
Nondeductible equity-based compensation		6,079		6,920		4,490
Dividends received deduction		—		(4,201)		(4,013)
Noncontrolling interest		(73,881)		(10,998)		(1,801)
Deconsolidation adjustment		—		(6,626)		—
Change in valuation allowance		28,116		1,325		789
Other		528		1,377		(496)
Total income tax benefit	$	(128,857)		(74,110)		(397,482)

Schedule of net deferred tax assets and liabilities

	December 31,
	2019		2020
Deferred tax assets:
NOL carryforwards	$	560,136		565,433
Equity-based compensation		7,669		8,445
Investment in Antero Midstream		172,460		330,301
Other		15,754		17,206
Total deferred tax assets		756,019		921,385
Valuation allowance		(46,802)		(46,013)
Net deferred tax assets		709,217		875,372
Deferred tax liabilities:
Unrealized gains on derivative instruments		206,677		13,189
Oil and gas properties		1,284,528		1,188,599
Investment in Martica		—		59,586
2026 Convertible Notes		—		26,250
Total deferred tax liabilities		1,491,205		1,287,624
Net deferred tax liabilities	$	(781,988)		(412,252)