XML 41 R9.htm IDEA: XBRL DOCUMENT

Note 2 - Income Taxes	9 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 2: Income Taxes The Company’s provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from estimated excess federal and Oklahoma percentage depletion, which are permanent tax benefits. Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with the detail well-by-well calculations at fiscal year-end. Federal and Oklahoma excess percentage depletion benefits, when a provision for income taxes is recorded, decrease the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is recorded. The benefits of federal and Oklahoma excess percentage depletion are not directly related to the amount of pre-tax income recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. The effective tax rate for the nine months ended June 30, 2013, was 31% as compared to 29% for the nine months ended June 30, 2012. Excess percentage depletion, which is a permanent tax benefit, reduced the effective tax rate below the statutory rate for the nine month periods ended June 30, 2013, and June 30, 2012. The effective tax rate for the quarter ended June 30, 2013, was 31% as compared to 34% for the quarter ended June 30, 2012. The decreased rate was the result of an increase in the estimated annual effective tax rate during the 2012 third quarter resulting from higher projected income before provision for income taxes (mostly related to higher lease bonus income) at June 30, 2012, as compared to the projections made as of March 31, 2012.

Note 2 - Income Taxes

9 Months Ended

Jun. 30, 2013

NOTE 2: Income Taxes

The Company’s provision for income taxes differs from the statutory rate primarily due to estimated federal and state benefits generated from estimated excess federal and Oklahoma percentage depletion, which are permanent tax benefits.

Both excess federal percentage depletion, which is limited to certain production volumes and by certain income levels, and excess Oklahoma percentage depletion, which has no limitation on production volume, reduce estimated taxable income or add to estimated taxable loss projected for any year. The federal and Oklahoma excess percentage depletion estimates will be updated throughout the year until finalized with the detail well-by-well calculations at fiscal year-end. Federal and Oklahoma excess percentage depletion benefits, when a provision for income taxes is recorded, decrease the effective tax rate, while the effect is to increase the effective tax rate when a benefit for income taxes is recorded. The benefits of federal and Oklahoma excess percentage depletion are not directly related to the amount of pre-tax income recorded in a period. Accordingly, in periods where a recorded pre-tax income or loss is relatively small, the proportional effect of these items on the effective tax rate may be significant. The effective tax rate for the nine months ended June 30, 2013, was 31% as compared to 29% for the nine months ended June 30, 2012. Excess percentage depletion, which is a permanent tax benefit, reduced the effective tax rate below the statutory rate for the nine month periods ended June 30, 2013, and June 30, 2012. The effective tax rate for the quarter ended June 30, 2013, was 31% as compared to 34% for the quarter ended June 30, 2012. The decreased rate was the result of an increase in the estimated annual effective tax rate during the 2012 third quarter resulting from higher projected income before provision for income taxes (mostly related to higher lease bonus income) at June 30, 2012, as compared to the projections made as of March 31, 2012.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details