Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

The following is an analysis of the consolidated income tax provision (benefit):

The valuation allowances recognized and the related tax effect for 2014, 2015 and 2016 are as follows:

The difference between the Company's customary rate of 35% and the effective tax rate on losses is due to the following:

	For the Years Ended December 31,
	2014			2015			2016
	(In thousands)
Tax benefit at statutory rate	$	(28,630	)	$	(420,544	)	$	(44,788	)
Tax effect of:
Nondeductible compensation		756			539			73
State taxes, net of federal tax benefit		(8,121	)		(18,218	)		(18,860	)
Valuation allowance on deferred tax assets		11,099			283,585			69,890
Other		207			193			854
Total	$	(24,689	)	$	(154,445	)	$	7,169

	For the Years Ended December 31,
	2014			2015			2016
Statutory rate		35.0	%		35.0	%		35.0	%
Tax effect of:
Nondeductible compensation		(0.9	)		—			(0.1	)
State taxes, net of federal tax benefit		9.9			1.4			14.7
Valuation allowance on deferred tax assets		(13.6	)		(23.5	)		(54.6	)
Other		(0.2	)		—			(0.6	)
Effective tax rate		30.2	%		12.9	%		(5.6	%)

The tax effects of significant temporary differences representing the net deferred tax liability at December 31, 2015 and 2016 were as follows:

	2015			2016
	(In thousands)
Deferred tax assets:
Property and equipment	$	58,993		$	15,164
Net operating loss carryforwards		255,571			339,914
Alternative minimum tax carryforward		20,435			20,435	Alternative minimum tax carryforward
Unrealized hedging loss		—			2,110
Gain on debt exchange		—			20,194
Other		7,895			8,523
		342,894			406,340
Valuation allowance on deferred tax assets		(330,372	)		(398,120	)
Deferred tax assets		12,522			8,220

Deferred tax liabilities:
Property and equipment		(9,047	)		(9,203	)
Unrealized hedging income		(506	)		—
Original issue discount		—			(4,025	)
Other		(4,934	)		(4,118	)
Deferred tax liabilities		(14,487	)		(17,346	)
Net deferred tax liability	$	(1,965	)	$	(9,126	)

At December 31, 2016, Comstock had the following carryforwards available to reduce future income taxes:

Types of Carryforward	Years of Expiration Carryforward	Amount
		(In thousands)
Net operating loss - U.S. federal	2017 – 2036	$	745,190
Net operating loss – state taxes	2020 – 2036	$	1,521,847
Alternative minimum tax credits	Unlimited	$	20,435