Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

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

(in millions)	2023		2022		2021
Current:
Federal	$	(4)	$	47	$	—
State	(1)		4		—
	(5)		51		—
Deferred:
Federal	(192)		—		—
State	(60)		—		—
	(252)		—		—
Provision (benefit) for income taxes	$	(257)	$	51	$	—

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)	2023		2022		2021
Expected provision (benefit) at federal statutory rate	$	273	$	400	$	(5)
Increase (decrease) resulting from:
State income taxes, net of federal income tax effect	18		39		—
Change in valuation allowance	(526)		(392)		2
Return to accrual	(16)		—		—
Federal research and development credit	(13)		—		—
Other	7		4		3
Provision (benefit) for income taxes	$	(257)	$	51	$	—

Components of Deferred Tax Balances

The components of the Company’s deferred tax balances as of December 31, 2023 and 2022 were as follows:

(in millions)	2023		2022
Deferred tax liabilities:
Differences between book and tax basis of property	$	255	$	379
Derivative activity	137		—
Right of use lease asset	34		41
Accrued pension costs	—		1
Other	3		3
	429		424
Deferred tax assets:
Accrued compensation	53		50
Accrued pension costs	1		—
Asset retirement obligations	27		24
Net operating loss carryforward	450		469
Future lease payments	35		41
Derivative activity	—		340
Capital loss carryover	26		27
Interest carryover	93		41
Research and development credits	17		—
Other	17		21
	719		1,013
Valuation allowance	(52)		(589)
Net deferred tax asset	$	238	$	—

Reconciliation of Changes to the Valuation Allowance

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

(in millions)	2023		2022
Valuation allowance at beginning of year	$	589	$	1,079
Return to accrual adjustments	(12)		(36)
State rate and apportionment changes	(13)		(66)
Current period deferred activity	—		(388)
Release of valuation allowance	(512)		—
Valuation allowance at end of year	$	52	$	589