Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.3.a.u2
Income Taxes (Tables)
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):

Year ended December 31,

    

2017

    

2018

    

2019

 

Current income tax expense (benefit)

$

75

5,048

Deferred income tax benefit

 

(295,126)

 

(128,857)

 

(79,158)

Total income tax benefit

$

(295,051)

(128,857)

(74,110)

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):

Year ended December 31,

    

2017

    

2018

    

2019

 

Federal income tax expense (benefit)

$

171,530

(36,657)

(77,122)

State income tax expense (benefit), net of federal benefit

 

10,779

 

(12,627)

 

(8,826)

Change in Federal tax rate, net of state benefit (1)

(427,962)

Change in State tax rate, net of federal effect

(40,415)

24,041

Nondeductible equity-based compensation

 

12,098

 

6,079

 

6,920

Dividends received deduction

(4,201)

Noncontrolling interest in Antero Midstream Partners

(59,523)

(73,881)

(10,998)

Deconsolidation adjustment

(6,626)

Change in valuation allowance

 

(2,073)

 

28,116

 

1,325

Other

 

100

 

528

 

1,377

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%.
Schedule of net deferred tax assets and liabilities

    

2018

    

2019

 

Deferred tax assets:

Net operating loss carryforwards

$

734,255

560,136

Equity-based compensation

10,633

7,669

Investment in Antero Midstream

172,460

Other

15,726

15,754

Total deferred tax assets

760,614

756,019

Valuation allowance

(45,477)

(46,802)

Net deferred tax assets

715,137

709,217

Deferred tax liabilities:

Unrealized gains on derivative instruments

271,747

206,677

Oil and gas properties

1,055,850

1,284,528

Investment in Antero Midstream Partners

11,258

Other

27,070

Total deferred tax liabilities

1,365,925

1,491,205

Net deferred tax liabilities

$

(650,788)

(781,987)