Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.24.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision (Benefit)
The components of income tax benefits were as follows (in thousands):
Successor Predecessor
Year Ended December 31, 2023 Year Ended December 31, 2022 Period from May 18, 2021 through December 31, 2021 Period from January 1, 2021 through May 17, 2021
Current:
State $ —  $ —  $ (39) $ (7,968)
Federal —  —  —  — 
Deferred:
State (26,704) —  —  — 
Federal (498,452) —  —  — 
Total income tax benefit provision $ (525,156) $ —  $ (39) $ (7,968)
Schedule of Reconciliation to the Statutory Federal Income Tax
A reconciliation of the statutory federal income tax amount to the recorded benefit follows (in thousands):
Successor Predecessor
Year Ended December 31, 2023 Year Ended December 31, 2022 Period from May 18, 2021 through December 31, 2021 Period from January 1, 2021 through May 17, 2021
Income (loss) before federal income taxes $ 945,760  $ 494,701  $ (112,868) $ 243,026 
Expected income tax at statutory rate 198,610  103,887  (23,702) 51,036 
State income taxes (2,581) 2,227  (3,177) (12,484)
Bankruptcy adjustments —  —  44,748  (111,285)
Remeasurement of state deferred tax asset —  13,869  (7,966) — 
Return to provision (5,592) (17,075) —  — 
Other differences 1,982  1,117  2,841  445 
Change in valuation allowance due to current year activity (717,575) (104,025) (12,783) 64,320 
Income tax benefit recorded $ (525,156) $ —  $ (39) $ (7,968)
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, 2023 and December 31, 2022 are estimated as follows (in thousands): 
Successor
Year Ended December 31, 2023 Year Ended December 31, 2022
Deferred tax assets:
Net operating loss carryforward and tax credits $ 399,017  $ 346,455 
Oil and gas property basis difference 143,769  269,206 
Investment in pass through entities 68,114  66,502 
Stock-based compensation expense 1,262  1,484 
Change in fair value of derivative instruments —  73,198 
Other assets 52,730  52,107 
Total deferred tax assets 664,892  808,952 
Valuation allowance for deferred tax assets (85,757) (803,332)
Deferred tax assets, net of valuation allowance 579,135  5,620 
Deferred tax liabilities:
Change in fair value of derivative instruments 50,448  — 
Right of use asset 3,003  5,615 
Other 528 
Total deferred tax liabilities 53,979  5,620 
Net deferred tax asset $ 525,156  $ —