Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of the company's income tax (provision) benefit

The components of our income tax (provision) benefit were as follows for the periods indicated (in thousands):

	Year Ended December 31,
	2017			2016			2015
Current:
Federal	$	(1,418	)	$	(2,103	)	$	(3,883	)
State	523			(675		)	(190		)
Total current	(895		)	(2,778		)	(4,073		)
Deferred:
Federal	3,722			777			5,011
State	118			80			(168		)
Total deferred	3,840			857			4,843
Total provision for (benefit from) income taxes (1)	$	2,945		$	(1,921	)	$	770

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(1) 2016 includes a tax benefit of $0.8 million related to losses from our investment in Bencap, and is included in the loss from investment in unconsolidated affiliate category on the consolidated statements of operations.

Reconciliation of taxes computed at the corporate federal income tax rate to the reported income tax (provision)

A reconciliation of the provision for (benefit from) income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes was as follows for the periods indicated (in thousands):

	Year Ended December 31,
	2017			2016			2015
Pre-tax net book income (1)	$	(3,427	)	$	4,434		$	(2,045	)
Statutory federal income tax (provision) benefit	$	1,165		$	(1,552	)	$	716
State income tax (provision) benefit	736			(387		)	(233		)
Federal statutory depletion	153			62			144
Federal tax rate adjustment	2,007			—			—
Valuation allowance	(1,038		)	—			—
Other	(78		)	(44		)	143
Total provision for (benefit from) income taxes	$	2,945		$	(1,921	)	$	770
Effective income tax rate (2)	86		%	43		%	38		%

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(1) 2016 includes the pre-tax loss from investment in unconsolidated affiliate of $2.2 million.

(2) Excluding the adjustment related to the federal tax rate change, the effective income tax rate for 2017 is 58 percent.

Components of the federal deferred tax asset (liability)

Deferred income taxes reflect the net difference between the financial statement carrying amounts and the underlying income tax basis in these items. The components of the federal deferred tax asset (liability) were as follows at the dates indicated (in thousands):

	December 31,
	2017			2016
Long-term deferred tax asset (liability): (1)
Prepaid and other insurance	$	(684	)	$	(1,058	)
Property	(2,497		)	(7,341		)
Investments in unconsolidated affiliates	623			606
Valuation allowance related to investments in unconsolidated affiliates	(623		)	—
Uniform capitalization	—			729
Other	(121		)	(93		)
Net long-term deferred tax liability	(3,302		)	(7,157		)
Net deferred tax liability	$	(3,302	)	$	(7,157	)

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(1) Amounts as of December 31, 2017 have been revalued at 21 percent as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017.

Earliest tax years remaining for federal and major states of operations

The earliest tax years remaining open for audit for federal and major states of operations are as follows:

	Earliest Open
	Tax Year
Federal	2013
Texas	2013
Louisiana	2014
Michigan	2013