Note 13 - Income Taxes

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

INCOME TAXES

NOTE 13—INCOME TAXES

Income tax expense (benefit) consisted of the following:

	Years ended December 31,
(In thousands)	2022		2021		2020
Current taxes:
Federal	$	517	$	—	$	—
State		407		3		19
Current taxes		924		3		19
Deferred taxes:
Federal		28,389		6,518		(3,164)
State		840		(1,874)		(339)
Deferred taxes		29,229		4,644		(3,503)
Provision for income tax expense (benefit), net	$	30,153	$	4,647	$	(3,484)

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)	2022		2021		2020
Income taxes computed at the federal statutory rate	$	30,701	$	9,325	$	(1,762)
Effect of:
State taxes, net of federal benefits		1,422		796		(253)
State tax rate changes, net of federal benefits		(546)		(2,274)		—
Percentage depletion		(3,314)		(3,363)		(714)
PPP Loan forgiveness		—		—		(1,773)
Stock-based compensation		(1,499)		(194)		473
162(m) compensation limitation		3,481		—		—
Other, net		(92)		357		545
Total	$	30,153	$	4,647	$	(3,484)

Deferred tax assets and liabilities were as follows:

	December 31,
(In thousands)	2022		2021
Deferred tax assets:
Loss carryforwards U.S. - Federal/States	$	6,598	$	15,975
Asset retirement obligations		6,359		5,175
Accrued expenses		3,257		744
Stock-based compensation		2,249		2,331
Total deferred tax assets		18,463		24,225
Deferred tax liabilities:
Depreciation & amortization		(54,100)		(30,631)
Net deferred tax liabilities	$	(35,637)	$	(6,406)

As of December 31, 2022, our federal net operating loss carryforwards were approximately $24 million. Total state loss carryforwards were approximately $32 million. The Company’s net operating loss carryforwards have no statutory expiration.

Cash paid for income taxes totaled $15.5 million in 2022. The Company recognized an income tax receivable of $14.6 million included in prepaid expenses and other current assets at December 31, 2022.