Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The components of Energen’s income taxes consisted of the following:



Years ended December 31, (in thousands)	2015			2014			2013
Taxes estimated to be payable currently:
Federal	$	3,972		$	161,576		$	23,342
State	758			72,379			2,516
Total current	4,730			233,955			25,858
Taxes deferred:
Federal	(513,187		)	144,645			85,950
State	(26,548		)	(34,447		)	(2,300		)
Total deferred	(539,735		)	110,198			83,650
Total income tax expense (benefit)	$	(535,005	)	$	344,153		$	109,508

Schedule of Components of Income Tax Expense (Benefit), Continuing and Discontinued Operations

The components of Energen’s income taxes consisted of the following:



Years ended December 31, (in thousands)	2015			2014		2013
Income tax expense (benefit) from continuing operations	$	(535,005	)	$	40,728	$	74,323
Income tax expense from discontinued operations	—			17,928		33,174
Income tax expense from gain on disposal of discontinued operations	—			285,497		2,011
Total income tax expense (benefit)	$	(535,005	)	$	344,153	$	109,508

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards which gave rise to Energen’s deferred tax assets and liabilities were as follows:



(in thousands)	December 31, 2015					December 31, 2014
	Current		Noncurrent			Current			Noncurrent
Deferred tax assets:
Minimum tax credit	$	—	$	44,862		$	—		$	46,338
Allowance for doubtful accounts	—		253			244			—
Insurance and other accruals	—		2,807			2,537			—
Compensation accruals	—		11,650			11,355			—
Pension and other costs	—		8,693			—			7,009
Other comprehensive income	—		—			10,732			1,581
State net operating losses and other carryforwards	—		12,577			—			15,392
Other	—		962			665			—
Total deferred tax assets	—		81,804			25,533			70,320
Valuation allowance	—		(4,235		)	(1,122		)	(2,467		)
Total deferred tax assets	—		77,569			24,411			67,853



Deferred tax liabilities:
Depreciation and basis differences	—		620,629			—			1,057,430
Derivative instruments	—		2,838			102,691			—
Other comprehensive income	—		141			—			—
Other	—		6,330			884			10,909
Total deferred tax liabilities	—		629,938			103,575			1,068,339
Net deferred tax liabilities	$	—	$	(552,369	)	$	(79,164	)	$	(1,000,486	)

Schedule of Effective Income Tax Rate Reconciliation

Total income tax expense from continuing operations differed from the amount which would have been provided by applying the statutory federal income tax rate of 35 percent to earnings before taxes as illustrated below:



Years ended December 31, (in thousands)	2015			2014			2013
Income tax expense (benefit) at statutory federal income tax rate	$	(518,258	)	$	49,130		$	75,671
Increase (decrease) resulting from:
State income taxes, net of federal income tax benefit	(14,112		)	93			1,461
Impact of state law changes	(3,075		)	(121		)	(1,966		)
Impact of state deferred tax revaluation on San Juan properties	(1,241		)	(8,382		)	—
401(k) stock dividend deduction	—			(232		)	(449		)
Other, net	1,681			240			(394		)
Total income tax expense (benefit)	$	(535,005	)	$	40,728		$	74,323
Effective income tax rate (%)	36.13			29.01			34.38

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of Energen’s beginning and ending amount of unrecognized tax benefits is as follows:



(in thousands)
Balance as of December 31, 2012	$	12,555
Additions based on tax positions related to the current year	4,546
Additions for tax positions of prior years	366
Reductions for tax positions of prior years	(46		)
Lapse of statute of limitations	(1,435		)
Balance as of December 31, 2013	15,986
Additions based on tax positions related to the current year	3,873
Additions for tax positions of prior years	19
Reductions for tax positions of prior years	(954		)
Lapse of statute of limitations	(1,394		)
Balance as of December 31, 2014	17,530
Additions based on tax positions related to the current year	2,378
Reductions based on tax positions related to the current year	(6,589		)
Reductions for tax positions of prior years	(345		)
Lapse of statute of limitations	(1,785		)
Balance as of December 31, 2015	$	11,189