Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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


	Years Ended December 31,
	2022	2021	2020
	(In thousands)
Current
Federal	$2,977	$—	$—
State	4,537	180	3,447
Total current income tax expense	7,514	180	3,447

Deferred
Federal	—	—	126,903
State	4,279	—	(8,296)
Total deferred income tax expense	4,279	—	118,607
Total income tax expense	$11,793	$180	$122,054

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,
	2022	2021	2020
	(In thousands)
Income (loss) before income taxes	$1,221,609	$365,331	($2,411,567)
Income tax expense (benefit) computed at the statutory federal income tax rate	256,538	76,720	(506,429)
State income tax expense (benefit), net of federal benefit	11,393	2,905	(11,827)
Non-deductible expenses related to capital structure transactions	(2,896)	(11,875)	—

Equity based compensation	(1,496)	564	2,746


Other	(1,223)	10,247	(1,621)
Change in valuation allowance	(250,523)	(78,381)	639,185
Income tax expense	$11,793	$180	$122,054

As of December 31, 2022 and 2021, the net deferred income tax assets and liabilities are comprised of the following:


	As of December 31,
	2022	2021
	(In thousands)
Deferred tax assets
Oil and natural gas properties	$—	$238,203
Federal net operating loss carryforward	359,784	221,900
Net interest expense limitation	74,628	36,171
Derivative instruments	12,758	30,826
Operating lease right-of-use assets	13,180	8,650
Asset retirement obligations	13,049	12,244
Unvested RSU equity awards	5,391	4,939
Other	11,675	12,892
Total deferred tax assets	$490,465	$565,825
Deferred income tax valuation allowance	(310,281)	(560,804)
Net deferred tax assets	$180,184	$5,021
Deferred tax liability
Oil and natural gas properties	($174,578)	$—

Operating lease liabilities	(9,885)	(5,021)
Total deferred tax liability	($184,463)	($5,021)
Net deferred tax asset (liability)	($4,279)	$—