Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes

Schedule of income tax expense from continuing operations

The Company’s income tax benefit consisted of the following (in thousands):

	Year Ended December 31,
	2019		2020		2021
Current income tax expense (benefit)	$	5,048		(209)		216
Deferred income tax benefit		(79,158)		(397,273)		(74,293)
Total income tax benefit	$	(74,110)		(397,482)		(74,077)

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 income or loss before taxes as a result of the following (in thousands):

	Year Ended December 31,
	2019		2020		2021
Federal income tax expense (benefit)	$	(77,122)		(348,158)		(47,919)
State income tax expense (benefit), net of federal benefit		(8,826)		(50,584)		(6,576)
Change in state tax rate, net of federal effect		24,041		2,291		(30,910)
Nondeductible equity-based compensation		6,920		4,490		1,117
Dividends received deduction		(4,201)		(4,013)		(3,832)
Noncontrolling interest		(10,998)		(1,801)		(7,862)
Deconsolidation adjustment		(6,626)		—		—
Change in valuation allowance		1,325		789		4,606
Nondeductible loss on 2026 Convertible Notes equitization		—		—		12,174
Other		1,377		(496)		5,125
Total income tax benefit	$	(74,110)		(397,482)		(74,077)

Schedule of net deferred tax assets and liabilities

	December 31,
	2020		2021
Deferred tax assets:
NOL carryforwards	$	565,433		569,523
Equity-based compensation		8,445		2,462
Investment in Antero Midstream		330,301		297,893
Unrealized losses on derivative instruments		—		158,779
Asset retirement obligations and other		17,206		15,051
Total deferred tax assets		921,385		1,043,708
Valuation allowance		(46,013)		(50,304)
Net deferred tax assets		875,372		993,404
Deferred tax liabilities:
Unrealized gains on derivative instruments		13,189		—
Oil and gas properties		1,188,599		1,254,182
Investment in Martica		59,586		51,166
2026 Convertible Notes and other		26,250		6,182
Total deferred tax liabilities		1,287,624		1,311,530
Net deferred tax liabilities	$	(412,252)		(318,126)