Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

The components of the Company’s income tax expense are as follows:


	Years Ended December 31,
	2020	2019	2018
	(In thousands)
Current
Federal	$—	$—	$—
State	3,447	220	—
Total current income tax expense	3,447	220	—

Deferred
Federal	126,903	33,584	3,594
State	(8,296)	1,497	4,516
Total deferred income tax expense	118,607	35,081	8,110
Total income tax expense	$122,054	$35,301	$8,110

A reconciliation of the income tax expense calculated at the federal statutory rate of 21% to income tax expense is as follows:


	Years Ended December 31,
	2020	2019	2018
	(In thousands)
Income (loss) before income taxes	($2,411,567)	$103,229	$308,470
Income tax expense (benefit) computed at the statutory federal income tax rate	(506,429)	21,678	64,779
State income tax expense (benefit), net of federal benefit	(11,827)	1,253	3,568
Equity based compensation	2,746	1,222	(494)
Non-deductible compensation	—	90	1,209
Non-deductible merger expenses	—	5,537	—
Statutory depletion carryforward	—	5,381	—
Other	(1,621)	140	168
Change in valuation allowance	639,185	—	(61,120)
Income tax expense	$122,054	$35,301	$8,110

As of December 31, 2020 and 2019, the net deferred income tax assets and liabilities are comprised of the following:


	As of December 31,
	2020	2019
	(In thousands)
Deferred tax assets
Oil and natural gas properties	$431,142	$—
Federal net operating loss carryforward	141,308	110,703
Derivative asset	39,378	14,823
Operating lease right-of-use assets	8,567	29,897
Asset retirement obligations	10,134	9,981
Unvested RSU equity awards	1,962	4,928
Other	11,430	10,445
Total deferred tax assets	$643,921	$180,777
Deferred income tax valuation allowance	(639,185)	—
Net deferred tax assets	$4,736	$180,777
Deferred tax liability
Oil and natural gas properties	$—	($38,546)
Derivative liability	—	—
Operating lease liabilities	(4,736)	(26,511)
Total deferred tax liability	($4,736)	($65,057)
Net deferred tax asset (liability)	$—	$115,720