Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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


	Years Ended December 31,
	2021	2020	2019
	(In thousands)
Current
Federal	$—	$—	$—
State	180	3,447	220
Total current income tax expense	180	3,447	220

Deferred
Federal	—	126,903	33,584
State	—	(8,296)	1,497
Total deferred income tax expense	—	118,607	35,081
Total income tax expense	$180	$122,054	$35,301

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,
	2021	2020	2019
	(In thousands)
Income (loss) before income taxes	$365,331	($2,411,567)	$103,229
Income tax expense (benefit) computed at the statutory federal income tax rate	76,720	(506,429)	21,678
State income tax expense (benefit), net of federal benefit	2,905	(11,827)	1,253
Non-deductible expenses related to capital structure transactions	(11,875)	—	—
Non-deductible compensation	1,100	—	90
Equity based compensation	564	2,746	1,222
Non-deductible merger expenses	—	—	5,537
Statutory depletion carryforward	—	—	5,381
Other	9,147	(1,621)	140
Change in valuation allowance	(78,381)	639,185	—
Income tax expense	$180	$122,054	$35,301

As of December 31, 2021 and 2020, the net deferred income tax assets and liabilities are comprised of the following:


	As of December 31,
	2021	2020
	(In thousands)
Deferred tax assets
Oil and natural gas properties	$238,203	$431,142
Federal net operating loss carryforward	221,900	141,308
Net interest expense limitation	36,171	—
Derivative asset	30,826	39,378
Operating lease right-of-use assets	8,650	8,567
Asset retirement obligations	12,244	10,134
Unvested RSU equity awards	4,939	1,962
Other	12,892	11,430
Total deferred tax assets	$565,825	$643,921
Deferred income tax valuation allowance	(560,804)	(639,185)
Net deferred tax assets	$5,021	$4,736
Deferred tax liability


Operating lease liabilities	($5,021)	($4,736)
Total deferred tax liability	($5,021)	($4,736)
Net deferred tax asset (liability)	$—	$—