Note 13 - Income Taxes

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

INCOME TAXES

NOTE 13—INCOME TAXES

Income tax expense (benefit) consisted of the following:

	Years ended December 31,
(In thousands)	2021		2020		2019
Current taxes:
Federal	$	—	$	—	$	—
State		3		19		7
Current taxes		3		19		7
Deferred taxes:
Federal		6,518		(3,164)		3,228
State		(1,874)		(339)		1,928
Deferred taxes		4,644		(3,503)		5,156
Income tax expense (benefit)	$	4,647	$	(3,484)	$	5,163

The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes were as follows:

	Years ended December 31,
(In thousands)	2021		2020		2019
Income taxes computed at the federal statutory rate	$	9,325	$	(1,762)	$	6,320
Effect of:
State taxes, net of federal benefits		796		(253)		945
State tax rate changes, net of federal benefits		(2,274)		—		—
Percentage depletion		(3,363)		(714)		(2,093)
PPP Loan forgiveness		—		(1,773)		—
Stock-based compensation		(194)		473		109
Other, net		357		545		(118)
Total	$	4,647	$	(3,484)	$	5,163

Deferred tax assets and liabilities were as follows:

	December 31,
(In thousands)	2021		2020
Deferred tax assets:
Loss carryforwards U.S. - Federal/States	$	15,975	$	22,873
Asset retirement obligations		5,175		3,972
Accrued expenses		744		856
Stock-based compensation		2,331		2,200
Other		—		—
Total deferred tax assets		24,225		29,901
Deferred tax liabilities:
Depreciation & amortization		(30,631)		(31,663)
Net deferred tax liabilities	$	(6,406)	$	(1,762)

As of December 31, 2021, our federal net operating loss carryforwards were approximately $67 million. Total state loss carryforwards were approximately $57 million. If not utilized, federal and state net operating loss carryforwards approximating $33 million and $11 million, respectively, will expire between 2035 and 2037. The remaining net operating loss carryforwards have no statutory expiration.