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Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
(8) Income Taxes

The components of our income tax benefit (expense) are as follows (in millions):
Year Ended December 31,
202320222021
Current income tax expense$(0.7)$(0.4)$(0.8)
Deferred income tax benefit (expense)(62.1)95.3 (24.6)
Income tax benefit (expense)$(62.8)$94.9 $(25.4)

The following schedule reconciles income tax benefit (expense) and the amount calculated by applying the statutory U.S. federal tax rate to income before non-controlling interest and income taxes (in millions):
Year Ended December 31,
202320222021
Expected income tax expense based on federal statutory tax rate$(56.5)$(55.9)$(10.0)
State income tax expense, net of federal benefit(7.2)(7.0)(1.4)
Unit-based compensation (1)7.7 0.7 (3.1)
Statutory rate changes (2)— — (10.2)
Change in valuation allowance(1.2)151.6 1.7 
Other(5.6)5.5 (2.4)
Total income tax benefit (expense)$(62.8)$94.9 $(25.4)
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(1)Related to book-to-tax differences recorded upon the vesting of unit-based awards.
(2)Effective January 1, 2022, Oklahoma House Bill 2960 resulted in a change in the corporate income tax rate from 6% to 4% and Louisiana Senate Bill No. 159 resulted in a change in the corporate income tax rate from 8% to 7.5%. Accordingly, we recorded deferred tax expense related to our Oklahoma and Louisiana operations in the amount of $7.6 million and $2.6 million, respectively, for the year ended December 31, 2021 due to a remeasurement of deferred tax assets.
Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax liabilities, net of deferred tax assets, are included in “Deferred tax liability, net” in the consolidated balance sheets. Our deferred income tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in millions):
December 31, 2023December 31, 2022
Deferred income tax assets:
Federal net operating loss carryforward$627.2 $636.5 
State net operating loss carryforward77.2 77.6 
Interest deduction limitation (1)53.0 57.6 
Other2.1 2.4 
Total deferred tax assets, gross759.5 774.1 
Valuation allowance(1.2)— 
Total deferred tax assets, net of valuation allowance758.3 774.1 
Deferred tax liabilities:
Property, plant, equipment, and intangible assets (2)(862.5)(816.8)
Total deferred tax liabilities(862.5)(816.8)
Deferred tax liability, net$(104.2)$(42.7)
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(1)Related to book-to-tax differences between the allowable interest deduction amount under Section 163j of the Internal Revenue Code of 1986, as amended.
(2)Includes our investment in ENLK and primarily relates to differences between the book and tax bases of property and equipment.

As of December 31, 2023, we had federal net operating loss (“NOL”) carryforwards of $3.0 billion that represented a net deferred tax asset of $627.2 million. As of December 31, 2023, we had state NOL carryforwards of $1.6 billion that represented a net deferred tax asset of $77.2 million. A portion of these carryforwards will begin expiring in 2027 through 2043. Federal NOLs incurred in 2018 and in future years (approximately $2.8 billion of our federal NOL carryforwards) may be carried forward indefinitely, but the deductibility of such federal NOLs is limited, while federal NOLs incurred prior to 2018 (approximately $0.2 billion of our NOL carryforwards) may be carried forward for only twenty years, but the deductibility of such NOL carryforwards generally is not limited unless we were to undergo an IRC Section 382 “ownership change.”

We provide a valuation allowance, if necessary, to reduce deferred tax assets, if all, or some portion, of such assets will more than likely not be realized. We continually review the realizability of our deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. We assessed whether a valuation allowance should be recorded against our deferred tax assets based on consideration of all available evidence, using a “more likely than not” standard. In assessing the need for a valuation allowance, we considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessment, more weight was given to evidence that could be objectively verified, including recent cumulative losses. Future sources of taxable income were also considered in determining the amount of the recorded valuation allowance.

For the year ended December 31, 2021, we recorded a $1.7 million net reduction in the valuation allowance as a result of the remeasurement of the state deferred tax assets and liabilities from the statutory rate changes. For the year ended December 31, 2022, we further reduced the valuation allowance by $151.6 million as a result of improved current and expected future operating income. For the year ended December 31, 2023, we established a valuation allowance of $1.2 million, primarily related to state tax operating loss carryforwards for which we did not believe a tax benefit was more likely than not to be realized. As of December 31, 2023, management believes it is more likely than not that the Company will realize the benefits of the deferred tax assets, net of valuation allowance.

For the years ended December 31, 2023 and 2022, there was no recorded unrecognized tax benefit. Per our accounting policy election, penalties and interest related to unrecognized tax benefits are recorded to income tax expense. As of December 31, 2023, tax years 2019 through 2023 remain subject to examination by various taxing authorities.
Excise Tax on Common Unit Repurchases

The Inflation Reduction Act of 2022, which was enacted on August 16, 2022, includes a new tax provision that imposes a 1% excise tax on common unit repurchases, net of common unit issuances, made after December 31, 2022. As a result, we accrued $2.0 million of excise tax in connection with our net common unit repurchases for the year ended December 31, 2023, which was recorded as an adjustment to the cost basis of common units repurchased in “Members’ equity” and “Other current liabilities” on the consolidated balance sheet as of December 31, 2023.