Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of components of the income tax provision (benefit)

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


	Successor		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Current
Federal	$	—	$	—	$	(3)	$	—
State	—		—		(6)		(26)
Current Income Taxes	—		—		(9)		(26)
Deferred
Federal	(45)		(54)		—		(297)
State	(4)		(3)		(10)		(8)
Deferred Income Taxes	(49)		(57)		(10)		(305)
Total	$	(49)	$	(57)	$	(19)	$	(331)

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:


	Successor		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Income tax expense (benefit) at the federal statutory rate of 21%	$	188	$	1,119	$	(2,051)	$	(134)
State income taxes (net of federal income tax benefit)	(86)		238		(41)		(21)
Partial release of valuation allowance due to Acquisitions	(49)		—		—		(314)
Change in valuation allowance excluding impact of Acquisitions	(179)		(1,191)		2,010		114
Reorganization items	60		(173)		41		—
Transaction costs	11		—		—		—
Removal of stranded tax effects in accumulated other comprehensive income	—		(57)		—		—
Equity-based compensation (non-officer)	—		7		10		4
Officer compensation limited under Section 162(m)	2		—		9		3
Other	4		—		3		17
Total	$	(49)	$	(57)	$	(19)	$	(331)

Schedule of deferred tax assets and liabilities

The tax-effected temporary differences, net operating loss (“NOL”) carryforwards and excess business interest expense carryforwards that comprise our deferred income taxes are as follows:


	Successor		Predecessor
	December 31, 2021		December 31, 2020
Deferred tax liabilities:
Other	$	(3)	$	(3)
Deferred tax liabilities	(3)		(3)

Deferred tax assets:
Property, plant and equipment	340		907
Net operating loss carryforwards	784		2,066
Carrying value of debt	31		48
Excess business interest expense carryforward	684		293
Asset retirement obligations	86		34
Investments	66		71
Accrued liabilities	38		288
Derivative instruments	289		53
Other	68		51
Deferred tax assets	2,386		3,811
Valuation allowance	(2,383)		(3,808)
Deferred tax assets after valuation allowance	3		3
Net deferred tax liability	$	—	$	—

Schedule of federal NOLs and excess business interest

As of December 31, 2021, and after taking into account each of the foregoing matters, the federal NOLs and excess business interest attributes are as follows:


	Attributes subject to Section 382 base annual limitation				Attributes not subject to Section 382 limitation
	$54 million		$2 million
Net operating losses, by year of expiration:
2037	$	858	$	10	$	—
Indefinitely lived	1,919		112		—
Total federal net operating losses	$	2,777	$	122	$	—

Excess business interest expense (indefinitely lived)	$	1,455	$	58	$	1,459

Reconciliation of unrecognized tax benefits

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


	Successor		Predecessor
	Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Unrecognized tax benefits at beginning of period	$	74	$	74	$	74	$	79
Additions based on tax positions related to the current year	—		—		—		—
Additions to tax positions of prior years	—		—		—		27
Settlements	—		—		—		(32)
Expiration of the applicable statute of limitations	—		—		—		—
Reductions to tax positions of prior years	—		—		—		—
Unrecognized tax benefits at end of period	$	74	$	74	$	74	$	74