Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2013
Components of Provision for Income Taxes

The following table summarizes the components of the provision for income taxes (in thousands):

 

     2013      2012     2011  

Current income tax benefit (expense)

    $ 16       $ (16 )    $ —     

Deferred income tax benefit (expense)

      64,663         (11,865 )      (17,870 ) 
  

 

 

     

 

 

    

 

 

  

Total income tax benefit (expense)

    $ 64,679       $ (11,881 )    $ (17,870 ) 
  

 

 

     

 

 

    

 

 

  
Reconciliation of Provision for Income Taxes to Amount Provided by Applying Statutory United States Federal Income Tax Rate to Income Before Income Taxes

The provision for income taxes for the years ended December 31, 2013, 2012 and 2011 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 35% to income before income taxes. This difference relates primarily to state income taxes and estimated permanent differences as follows (in thousands):

 

     2013     2012     2011  

Expected statutory income tax benefit (expense)

    $ 62,470      $ (10,450 )    $ (16,924 ) 

State income tax benefit (expense)

      3,254        (694 )      (1,112 ) 

Share-based compensation

      (2,031 )      (703 )      —     

Non-deductible executive compensation

      (54 )      (215 )      —     

Other

      1,040        181        166   
  

 

 

    

 

 

    

 

 

  

Total income tax benefit (expense)

    $ 64,679      $ (11,881 )    $ (17,870 ) 
  

 

 

    

 

 

    

 

 

  
Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented below (in thousands):

 

     December 31,  
     2013     2012  

Current deferred income tax assets:

     

Derivative financial instruments

    $ 3,914      $ 8,706   

Asset retirement obligation

      675        1,275   

Equity compensation

      2,924        —     

Other

      817        776   
  

 

 

    

 

 

  

Total current assets

      8,330        10,757   
  

 

 

    

 

 

  

Long term deferred income tax assets (liabilities):

     

Derivative financial instruments

      —          2,885   

Net operating loss carryovers

      62,457        27,565   

Asset retirement obligation

      11,161        5,874   

Startup and organization costs

      158        178   

Deferred acquisition costs

      45        45   

Percentage depletion

      1,323        1,118   

Property and equipment costs

      (110,566 )      (140,048 ) 

Equity compensation

      1,233        2,551   

Other

      (635 )      (2,082 ) 
  

 

 

    

 

 

  

Total long term liability

      (34,824 )      (101,914 ) 
  

 

 

    

 

 

  

Net deferred tax liability

    $ (26,494 )    $ (91,157 )