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Income taxes (Tables)
 9 Months Ended
Sep. 30, 2014
Income Tax Disclosure [Abstract]  
Schedule of income tax (benefit) expense
The Company is subject to corporate income taxes and the Texas franchise tax. Income tax expense attributable to income from continuing operations for the periods presented consisted of the following:
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in thousands)

2014
 
2013
 
2014
 
2013
Current taxes

$
—

 
$
—


$
—

 
$
—

Deferred taxes

(45,778
)
 
(10,048
)
 
(35,511
)
 
(31,205
)
Income tax expense

$
(45,778
)
 
$
(10,048
)

$
(35,511
)
 
$
(31,205
)
Schedule of comprehensive provision for income tax
The following presents the comprehensive provision for income taxes for the periods presented:
 

Three months ended September 30,
 
Nine months ended September 30,
(in thousands)

2014
 
2013
 
2014
 
2013
Comprehensive provision for income taxes allocable to:

 


 







Continuing operations

$
(45,778
)
 
$
(10,048
)
 
$
(35,511
)
 
$
(31,205
)
Discontinued operations

—

 
(321
)
 
—

 
(765
)
Comprehensive provision for income taxes

$
(45,778
)
 
$
(10,369
)
 
$
(35,511
)
 
$
(31,970
)
Schedule of reconciliation of income tax expense computed by applying the federal income tax rate of 35% to pre-tax income from operations
Income tax expense attributable to income from continuing operations before income taxes differed from amounts computed by applying the applicable federal income tax rate of 35% for the three and nine months ended September 30, 2014 and 34% for the three and nine months ended September 30, 2013 to pre-tax earnings as a result of the following:
 

Three months ended September 30,
 
Nine months ended September 30,
(in thousands)

2014
 
2013
 
2014
 
2013
Income tax expense computed by applying the statutory rate

$
(45,215
)
 
$
(7,434
)
 
$
(34,932
)
 
$
(27,014
)
State income tax, net of federal tax benefit and increase in valuation allowance

247

 
(2,651
)
 
1,881

 
(3,223
)
Non-deductible stock-based compensation

(152
)
 
(156
)
 
(391
)
 
(495
)
Stock-based compensation tax deficiency

(4
)
 
(72
)
 
(160
)
 
(483
)
Change in deferred tax valuation allowance

(22
)
 
(20
)
 
(1,134
)
 
(49
)
Other items

(632
)
 
285

 
(775
)
 
59

Income tax expense

$
(45,778
)
 
$
(10,048
)
 
$
(35,511
)
 
$
(31,205
)
Schedule of Income Tax Deficiency from Share-based Compensation
 
 
Three months ended September 30,
 
Nine months ended September 30,
(in thousands)
 
2014
 
2013
 
2014
 
2013
Vesting of restricted stock
 
$
4

 
$
2

 
$
5

 
$
427

Exercise of restricted stock options
 
1

 
72

 
158

 
72

Tax impact of shortfalls
 
$
5

 
$
74

 
$
163

 
$
499
Schedule of significant components of deferred tax assets and liabilities
Significant components of the Company’s deferred tax liabilities for the periods presented are as follows:
(in thousands)
 
September 30, 2014
 
December 31, 2013
Net operating loss carry-forward
 
$
337,933

 
$
284,890

Oil and natural gas properties and equipment
 
(396,802
)
 
(278,735
)
Derivatives
 
(4,054
)
 
(30,859
)
Stock-based compensation
 
9,624

 
6,578

Accrued bonus
 
3,133

 
3,740

Capitalized interest
 
2,705

 
2,099

Other
 
586

 
(240
)
Gross deferred tax liability
 
(46,875
)
 
(12,527
)
Valuation allowance
 
(1,295
)
 
(132
)
Net deferred tax liability
 
$
(48,170
)
 
$
(12,659
)
Schedule of net deferred tax assets and liabilities as classified in the consolidated balance sheets
Net deferred tax assets and liabilities were classified in the unaudited consolidated balance sheets as follows for the periods presented:
(in thousands)
 
September 30, 2014
 
December 31, 2013
Deferred tax asset
 
$
1,255

 
$
3,634

Deferred tax liability
 
(49,425
)
 
(16,293
)
Net deferred tax liability
 
$
(48,170
)
 
$
(12,659
)