eferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax bases of assets and liabilities. The Company’s net deferred tax position as of December 31, 2014 and 2013, respectively, is as follows (in thousands).



	December 31,
	2014			2013
Current deferred tax assets
Property and equipment	$	113		$	62
Unrealized loss on derivatives	—			965
Other	281			609
Total current deferred tax assets	394			1,636
Current deferred tax liabilities
Unrealized gain on derivatives	(20,145		)	—
Net current deferred tax (liabilities) assets	$	(19,751	)	$	1,636
Non-current deferred tax assets
Unrealized loss on derivatives	$	—		$	28
Net operating loss carryforwards	88,447			63,007
Alternative minimum tax carryforward	7,197			7,064
Percentage depletion carryover	2,068			—
Total non-current deferred tax assets	97,712			70,099
Valuation allowance on non-current deferred tax assets	—			(30		)
Total non-current deferred tax assets, net of valuation allowance	97,712			70,069
Non-current deferred tax liabilities
Property and equipment	(145,620		)	(76,719		)
Other	(5,875		)	(4,279		)
Total non-current deferred tax liabilities	(151,495		)	(80,998		)
Net non-current deferred tax liabilities	$	(53,783	)	$	(10,929	)

The Company had an effective tax rate of 36.8% for the year ended December 31, 2014. Total income tax expense for the year ended December 31, 2014 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income primarily due to the impact of state income taxes. The Company had an effective tax rate of 17.7% for the year ended December 31, 2013 due primarily to (i) the reversal of a valuation allowance of approximately $8.9 million on the Company’s federal deferred tax assets at December 31, 2013, as the Company’s federal deferred tax liabilities exceeded its federal deferred tax assets for the year ended December 31, 2013, (ii) the reversal of a state valuation allowance of approximately $1.3 million as the Company believed it would be able to utilize the state net operating losses prior to their expiration and (iii) the impact of permanent differences between book and taxable income. The Company reported a net loss for the year ended December 31, 2012.

At December 31, 2014, the Company had net operating loss carryforwards of $242.0 million for federal income tax purposes and $3.8 million for state income tax purposes available to offset future taxable income, as limited by the applicable provisions, and which expire at various dates beginning December 31, 2027 for the federal net operating loss carryforwards. The state net operating loss carryforwards began expiring at various dates beginning December 31, 2013 for the state of New Mexico; however, the significant portion of the Company’s state net operating loss carryforwards expire beginning in 2027.

No impairment to the net carrying value of our oil and natural gas properties and no corresponding charge resulting from a full-cost ceiling impairment was recorded during the year ended December 31, 2014.

At March 31, 2013, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $13.7 million. As a result, the Company recorded an impairment charge of $21.2 million to its net capitalized costs and a deferred income tax credit of $7.5 million for the three months ended March 31, 2013. The Company established a valuation allowance at September 30, 2012 and retained full valuation allowances of approximately$15.8 million at March 31, 2013 and $6.7 million at June 30, 2013 due to uncertainties regarding the future realization of the net deferred tax assets.

At June 30, 2012, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $21.3 million. As a result, the Company recorded an impairment charge of $33.2 million to the net capitalized costs of its oil and natural gas properties and a deferred income tax credit of $11.9 million. At September 30, 2012, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $2.3 million. As a result, the Company recorded an impairment charge of $3.6 million to the net capitalized costs of its oil and natural gas properties and a deferred income tax credit of $1.3 million. This deferred income tax credit exceeded the Company’s deferred tax liabilities at September 30, 2012. As a result, the Company established a valuation allowance of $2.4 million at September 30, 2012 due to uncertainties regarding the future realization of its deferred tax assets. At December 31, 2012, the net capitalized costs of the Company’s oil and natural gas properties less related deferred income taxes exceeded the full-cost ceiling by $17.3 million. As a result, the Company recorded an impairment charge of $26.7 million to the net capitalized costs of its oil and natural gas properties and a deferred income tax credit of $9.4 million. This deferred income tax credit exceeded the Company’s deferred tax liabilities at December 31, 2012. As a result, the Company increased the previously established valuation allowance by $7.9 million to maintain a full valuation allowance of $10.3 million against the Company’s net deferred tax assets.

The income tax expense reconciled to the tax computed at the statutory federal rate for the years ended December 31, 2014, 2013 and 2012, respectively, is as follows (in thousands).



	Year Ended December 31,
	2014			2013			2012
Current income tax provision (benefit)
Federal alternative minimum tax	$	133		$	404		$	—
Net current income tax provision	133			404			—
Deferred income tax provision (benefit)
Federal tax expense at statutory rate ⁽¹⁾	61,301			19,177			(11,767		)
State income tax	2,707			431			(819		)
Nondeductible expense	—			—			(122		)
Permanent differences ⁽²⁾	397			319			1,018
Federal alternative minimum tax	(133		)	(404		)	—
Change in federal valuation allowance	—			(8,885		)	10,260
Change in state valuation allowance	(30		)	(1,345		)	—
Net deferred income tax provision (benefit)	64,242			9,293			(1,430		)
Total income tax provision (benefit)	$	64,375		$	9,697		$	(1,430	)

__________________


(1)	The statutory federal tax rate was 35% for the years ended December 31, 2014 and 2013 and 34% for the year ended December 31, 2012.


(2)	Amount is primarily attributable to stock-based compensation.

The Company files a United States federal income tax return and several state tax returns, a number of which remain open for examination. The tax years open for examination for the federal tax return are 2011, 2012, 2013 and 2014. The tax years open for examination by the state of Texas are 2009, 2010, 2011, 2012, 2013 and 2014. The tax years open for examination by the state of New Mexico are 2011, 2012, 2013 and 2014. The tax years open for examination by the state of Louisiana are 2011, 2012, 2013 and 2014. As of December 31, 2014, the Company’s 2009 and 2010 franchise tax returns are under examination by the state of Texas. This examination is in the preliminary stage and no additional income taxes or refunds of previous tax payments for these tax years have been recorded as a result of this examination at December 31, 2014.

The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained by examination. Therefore, at December 31, 2014, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions.