Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2019 |
Income Taxes |
|
Schedule of income tax expense from continuing operations |
For the years ended December 31, 2017, 2018 and 2019, income tax expense (benefit) consisted of the following (in thousands):
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Year ended December 31, |
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2017 |
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2018 |
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2019 |
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Current income tax expense (benefit) |
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$ |
75 |
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|
— |
|
|
5,048 |
|
Deferred income tax benefit |
|
|
(295,126) |
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|
(128,857) |
|
|
(79,158) |
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Total income tax benefit |
|
$ |
(295,051) |
|
|
(128,857) |
|
|
(74,110) |
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Schedule of reconciliation of income tax expense from continuing operations |
Income tax expense (benefit) differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 35% to the year ended December 31, 2017 and 21% to the years ended December 31, 2018 and 2019 to income or loss before taxes as a result of the following (in thousands):
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Year ended December 31, |
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2017 |
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2018 |
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2019 |
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Federal income tax expense (benefit) |
|
$ |
171,530 |
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|
(36,657) |
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|
(77,122) |
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State income tax expense (benefit), net of federal benefit |
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|
10,779 |
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(12,627) |
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|
(8,826) |
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Change in Federal tax rate, net of state benefit (1) |
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|
(427,962) |
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|
— |
|
|
— |
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Change in State tax rate, net of federal effect |
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— |
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|
(40,415) |
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|
24,041 |
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Nondeductible equity-based compensation |
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|
12,098 |
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|
6,079 |
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|
6,920 |
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Dividends received deduction |
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|
— |
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— |
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(4,201) |
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Noncontrolling interest in Antero Midstream Partners |
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|
(59,523) |
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(73,881) |
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|
(10,998) |
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Deconsolidation adjustment |
|
|
— |
|
|
— |
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(6,626) |
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Change in valuation allowance |
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|
(2,073) |
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|
28,116 |
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|
1,325 |
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Other |
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|
100 |
|
|
528 |
|
|
1,377 |
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Total income tax benefit |
|
$ |
(295,051) |
|
|
(128,857) |
|
|
(74,110) |
|
|
(1) |
The change in the Federal tax rate was due to the passage of Public Law No. 115-97, commonly referred to as the Tax Cuts and Jobs Act. The passage of this legislation resulted in the Company generating a deferred tax benefit in 2017 primarily due to the reduction in the U.S. statutory rate from 35% to 21%.
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Schedule of net deferred tax assets and liabilities |
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2018 |
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2019 |
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Deferred tax assets: |
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|
|
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Net operating loss carryforwards |
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$ |
734,255 |
|
|
560,136 |
|
Equity-based compensation |
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|
10,633 |
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|
7,669 |
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Investment in Antero Midstream |
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|
— |
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|
172,460 |
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Other |
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|
15,726 |
|
|
15,754 |
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Total deferred tax assets |
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|
760,614 |
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|
756,019 |
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Valuation allowance |
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|
(45,477) |
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|
(46,802) |
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Net deferred tax assets |
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|
715,137 |
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|
709,217 |
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Deferred tax liabilities: |
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|
|
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Unrealized gains on derivative instruments |
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|
271,747 |
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|
206,677 |
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Oil and gas properties |
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|
1,055,850 |
|
|
1,284,528 |
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Investment in Antero Midstream Partners |
|
|
11,258 |
|
|
— |
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Other |
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|
27,070 |
|
|
— |
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Total deferred tax liabilities |
|
|
1,365,925 |
|
|
1,491,205 |
|
Net deferred tax liabilities |
|
$ |
(650,788) |
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|
(781,987) |
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