Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes included the following components:

(in millions)	2021		2020		2019
Current:
Federal	$	—	$	(2)	$	(1)
State	—		—		(1)
	—		(2)		(2)
Deferred:
Federal	—		371		(431)
State	—		38		22
	—		409		(409)
Provision (benefit) for income taxes	$	—	$	407	$	(411)

Reconciliation of Provision for Income Taxes

The following reconciles the provision for income taxes included in the consolidated statements of operations with the provision which would result from application of the statutory federal tax rate to pre-tax financial income:

(in millions)	2021		2020		2019
Expected provision (benefit) at federal statutory rate	$	(5)	$	(568)	$	101
Increase (decrease) resulting from:
State income taxes, net of federal income tax effect	—		(55)		11
Change in valuation allowance	2		1,034		(522)
Other	3		(4)		(1)
Provision (benefit) for income taxes	$	—	$	407	$	(411)

Components of Deferred Tax Balances

The components of the Company’s deferred tax balances as of December 31, 2021 and 2020 were as follows:

(in millions)	2021		2020
Deferred tax liabilities:
Right of use lease asset	$	45	$	38
Other	3		2
	48		40
Deferred tax assets:
Differences between book and tax basis of property	—		295
Accrued compensation	44		38
Accrued pension costs	6		11
Asset retirement obligations	25		20
Net operating loss carryforward	585		1,117
Future lease payments	46		38
Derivative activity	362		9
Capital loss carryover	28		27
Other	31		24
	1,127		1,579
Valuation allowance	(1,079)		(1,539)
Net deferred tax asset	$	—	$	—

Reconciliation of Changes to the Valuation Allowance

A reconciliation of the changes to the valuation allowance is as follows:

(in millions)	2021		2020
Valuation allowance at beginning of year	$	1,539	$	87
Establishment of valuation allowance on opening deferred balance	—		408
Return to accrual adjustments	(31)		6
Current period deferred activity	(1)		626
Reduction due to 382 limitations on NOLs	(428)		(120)
Purchase accounting	—		532
Valuation allowance at end of year	$	1,079	$	1,539