Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

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

(in millions)	2022		2021		2020
Current:
Federal	$	47	$	—	$	(2)
State	4		—		—
	51		—		(2)
Deferred:
Federal	—		—		371
State	—		—		38
	—		—		409
Provision for income taxes	$	51	$	—	$	407

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)	2022		2021		2020
Expected provision (benefit) at federal statutory rate	$	400	$	(5)	$	(568)
Increase (decrease) resulting from:
State income taxes, net of federal income tax effect	39		—		(55)
Change in valuation allowance	(392)		2		1,034
Other	4		3		(4)
Provision for income taxes	$	51	$	—	$	407

Components of Deferred Tax Balances

The components of the Company’s deferred tax balances as of December 31, 2022 and 2021 were as follows:

(in millions)	2022		2021
Deferred tax liabilities:
Differences between book and tax basis of property	$	379	$	—
Right of use lease asset	$	41	$	45
Accrued pension costs	1		—
Other	3		3
	424		48
Deferred tax assets:
Accrued compensation	50		44
Accrued pension costs	—		6
Asset retirement obligations	24		25
Net operating loss carryforward	469		585
Future lease payments	41		46
Derivative activity	340		362
Capital loss carryover	27		28
Interest carryover	41		11
Other	21		20
	1,013		1,127
Valuation allowance	(589)		(1,079)
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)	2022		2021
Valuation allowance at beginning of year	$	1,079	$	1,539
Establishment of valuation allowance on opening deferred balance	—		—
Return to accrual adjustments	(36)		(16)
State rate and apportionment changes	(66)		(15)
Current period deferred activity	(388)		(1)
Reduction due to 382 limitations on NOLs	—		(428)
Purchase accounting	—		—
Valuation allowance at end of year	$	589	$	1,079