Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.22.4
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of income tax provision (benefit)
The components of income tax benefits and expense were as follows (in thousands):
Successor Predecessor
Year Ended December 31, 2022 Period from May 18, 2021 through December 31, 2021 Period from January 1, 2021 through May 17, 2021 Year Ended December 31, 2020
Current:
State $ —  $ (39) $ (7,968) $ — 
Federal —  —  —  (273)
Deferred:
State —  —  —  7,563 
Federal —  —  —  — 
Total income tax (benefit) expense provision $ —  $ (39) $ (7,968) $ 7,290 
Schedule of reconciliation to the statutory federal income tax
A reconciliation of the statutory federal income tax amount to the recorded expense follows (in thousands):
Successor Predecessor
Year Ended December 31, 2022 Period from May 18, 2021 through December 31, 2021 Period from January 1, 2021 through May 17, 2021 Year Ended December 31, 2020
Income (loss) before federal income taxes $ 494,701  $ (112,868) $ 243,026  $ (1,617,843)
Expected income tax at statutory rate 103,887  (23,702) 51,036  (339,747)
State income taxes 2,227  (3,177) (12,484) (14,696)
Bankruptcy adjustments —  44,748  (111,285) — 
Remeasurement of state deferred tax asset 13,869  (7,966) —  — 
Return to provision (17,075) —  —  — 
Other differences 1,117  2,841  445  10,800 
Change in valuation allowance due to current year activity (104,025) (12,783) 64,320  350,933 
Income tax (benefit) expense recorded $ —  $ (39) $ (7,968) $ 7,290 
Schedule of deferred tax assets and liabilities
The tax effects of temporary differences and net operating loss carryforwards, which give rise to deferred tax assets and liabilities at December 31, 2022, and 2021 are estimated as follows (in thousands): 
Successor
December 31, 2022 December 31, 2021
Deferred tax assets:
Net operating loss carryforward and tax credits $ 346,455  $ 298,127 
Oil and gas property basis difference 269,206  432,959 
Investment in pass through entities 66,502  58,751 
Stock-based compensation expense 1,484  — 
Change in fair value of derivative instruments 73,198  86,296 
Other assets 52,107  31,298 
Total deferred tax assets 808,952  907,431 
Valuation allowance for deferred tax assets (803,332) (907,358)
Deferred tax assets, net of valuation allowance 5,620  73 
Deferred tax liabilities:
Right of use asset 5,615  — 
Other 73 
Total deferred tax liabilities 5,620  73 
Net deferred tax asset $ —  $ —