Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Schedule of Deferred Taxes

An analysis of the Company’s deferred taxes follows (amounts in thousands):

	December 31,
	2012			2011			2010
Net operating loss carryforwards	$	16,641		$	2,409		$	4,737
Percentage depletion carryforward	7,317			6,103			3,596
Alternative minimum tax credits	784			784			776
Contributions carryforward and other	156			130			90
Temporary differences:
Oil and gas properties—full cost	22,716			(10,541		)	(10,141		)
Derivatives	(222		)	(2,388		)	405
Share-based compensation	3,474			2,952			3,732
Valuation allowance	(50,866		)	—			(3,195		)
Deferred tax liability	$	—		$	(551	)	$	—

Income Tax Reconciliation

Income tax expense (benefit) for each of the years ended December 31, 2012, 2011 and 2010 was different than the amount computed using the Federal statutory rate (35%) for the following reasons (amounts in thousands):

	For the Year Ended December 31,
	2012			2011			2010
Amount computed using the statutory rate	$	(45,655	)	$	3,058		$	17,065
Increase (reduction) in taxes resulting from:
State & local taxes	(2,870		)	192			1,073
Percentage depletion carryforward	(1,309		)	(2,507		)	(252		)
Allowance for alternative minimum tax	—			8			575
Non-deductible stock option expense (1)	292			183			295
Share-based compensation (2)	9			346			3,041
Other	303			(300		)	321
Change in valuation allowance	50,866			(2,790		)	(20,488		)
Income tax expense (benefit)	$	1,636		$	(1,810	)	$	1,630

(1) Relates to compensation expense recognized on the vesting of Incentive Stock Options.

(2) Relates to the write-off of deferred tax assets associated with share based compensation that will not be recognized for tax purposes.