Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax Provision (Benefit)

Our income tax provision (benefit) is as follows:

	Successor				Predecessor
	Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020		Year Ended Dec. 31, 2019
In thousands
Current income tax expense (benefit)
Federal	$	—	$	—	$	(6,407)	$	2,645
State	403		30		(853)		1,236
Total current income tax expense (benefit)	403		30		(7,260)		3,881
Deferred income tax expense (benefit)
Federal	—		—		(319,011)		89,950
State	364		(2,556)		(89,858)		10,521
Total deferred income tax expense (benefit)	364		(2,556)		(408,869)		100,471
Total income tax expense (benefit)	$	767	$	(2,526)	$	(416,129)	$	104,352

Deferred Tax Assets And Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows:

	Successor
In thousands	December 31, 2021		December 31, 2020
Deferred tax assets
Loss and tax credit carryforwards – state	$	54,943	$	55,979
Derivative contracts	30,892		13,090
Accrued liabilities and other reserves	19,567		15,632
Business credit carryforwards	18,066		—
Loss carryforwards – federal	10,310		—
Lease liabilities	4,523		6,354
Property and equipment	2,613		59,207
Other	4,206		4,092
Valuation allowances	(125,462)		(129,408)
Total deferred tax assets	19,658		24,946
Deferred tax liabilities
CO2 and other contracts	(17,208)		(20,030)
Operating lease right-of-use assets	(4,088)		(6,190)
Total deferred tax liabilities	(21,296)		(26,220)
Total net deferred tax liability	$	(1,638)	$	(1,274)

Income Tax Provision (Benefit) Rate Reconciliation

Our reconciliation of income tax expense computed by applying the U.S. federal statutory rate and the reported effective tax rate on income from continuing operations is as follows:

	Successor				Predecessor
	Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020		Year Ended Dec. 31, 2019
In thousands
Income tax provision calculated using the federal statutory income tax rate	$	11,921	$	(11,169)	$	(388,228)	$	67,475
State income taxes, net of federal income tax benefit	450		(2,532)		(86,937)		7,435
Tax shortfall (windfall) on stock-based compensation deduction	(267)		—		(1,502)		1,912
Nondeductible compensation	5,057		—		—		—
Change in valuation allowance	(2,928)		9,653		19,344		26,122
Enhanced oil recovery credits generated	(14,272)		—		—		—
Tax attributes reduction – net of CODI exclusion	—		—		31,667		—
Other	806		1,522		9,527		1,408
Total income tax expense (benefit)	$	767	$	(2,526)	$	(416,129)	$	104,352

Tax Valuation Allowance

Valuation Allowance [Line Items]

Changes in Valuation Allowance

The changes in our valuation allowance are detailed below:

	Successor				Predecessor
	Year Ended Dec. 31, 2021		Period from Sept. 19, 2020 through Dec. 31, 2020		Period from Jan. 1, 2020 through Sept. 18, 2020		Year Ended Dec. 31, 2019
In thousands
Beginning balance	$	129,408	$	129,840	$	77,215	$	51,093
Charges	29,345		2,269		77,138		26,122
Deductions	(33,291)		(2,701)		(24,513)		—
Ending balance	$	125,462	$	129,408	$	129,840	$	77,215