Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of components of the income tax provision (benefit)

The components of the income tax provision (benefit) for each of the periods presented below are as follows:



	Years Ended December 31,
	2019			2018			2017
	($ in millions)
Current
Federal	$	—		$	—		$	(14	)
State	(26		)	—			5
Current Income Taxes	(26		)	—			(9		)
Deferred
Federal	(297		)	3			13
State	(8		)	(13		)	(2		)
Deferred Income Taxes	(305		)	(10		)	11
Total	$	(331	)	$	(10	)	$	2

Schedule of effective income tax expense (benefit)

The income tax expense (benefit) reported in our consolidated statement of operations is different from the federal income tax expense (benefit) computed using the federal statutory rate for the following reasons:



	Years Ended December 31,
	2019			2018			2017
	($ in millions)
Income tax expense (benefit) at the federal statutory rate (21%, 21%, 35%)	$	(134	)	$	45		$	(175	)
State income taxes (net of federal income tax benefit)	(21		)	27			5
Partial release of valuation allowance due to the WildHorse Merger	(314		)	—			—
Remeasurement of deferred tax assets and liabilities	—			—			931
Change in valuation allowance excluding impact of WildHorse Merger	114			(97		)	(771		)
Other	24			15			12
Total	$	(331	)	$	(10	)	$	2

Schedule of deferred tax assets and liabilities

The tax-effected temporary differences, NOL carryforwards and disallowed business interest carryforwards that comprise our deferred income taxes are as follows:



	December 31,
	2019			2018
	($ in millions)
Deferred tax liabilities:
Property, plant and equipment	$	(546	)	$	(976	)
Volumetric production payments	(89		)	(86		)
Carrying value of debt	—			(95		)
Derivative instruments	(14		)	(56		)
Other	(5		)	(7		)
Deferred tax liabilities	(654		)	(1,220		)

Deferred tax assets:
Net operating loss carryforwards	1,971			2,737
Carrying value of debt	169			—
Disallowed business interest carryforward	25			194
Asset retirement obligations	50			40
Investments	83			111
Accrued liabilities	64			89
Other	87			60
Deferred tax assets	2,449			3,231
Valuation allowance	(1,805		)	(2,011		)
Deferred tax assets after valuation allowance	644			1,220
Net deferred tax liability	$	(10	)	$	—

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:



	2019			2018			2017
	($ in millions)
Unrecognized tax benefits at beginning of period	$	79		$	106		$	202
Additions based on tax positions related to the current year	—			—			—
Additions to tax positions of prior years	27			—			4
Settlements	(32		)	—			(100		)
Expiration of the applicable statute of limitations	—			(23		)	—
Reductions to tax positions of prior years	—			(4		)	—
Unrecognized tax benefits at end of period	$	74		$	79		$	106