Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

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
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Current
Federal	$	264	$	37	$	—	$	—
State	6		10		—		—
Current Income Taxes	270		47		—		—
Deferred
Federal	381		(1,112)		(45)		(54)
State	47		(220)		(4)		(3)
Deferred Income Taxes	428		(1,332)		(49)		(57)
Total	$	698	$	(1,285)	$	(49)	$	(57)

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
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Income tax expense (benefit) at the federal statutory rate of 21%	$	655	$	767	$	188	$	1,119
State income taxes (net of federal income tax benefit)	56		75		(86)		238
Change in valuation allowance due to Acquisitions	—		19		(49)		—
Change in valuation allowance excluding impact of Acquisitions	(33)		(2,147)		(179)		(1,191)
Reorganization items	—		—		60		(173)
Transaction costs	—		2		11		—
Removal of stranded tax effects in accumulated other comprehensive income	—		—		—		(57)
Other	20		(1)		6		7
Total	$	698	$	(1,285)	$	(49)	$	(57)

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
	December 31, 2023		December 31, 2022
Deferred tax liabilities:
Property, plant and equipment	$	(295)	$	(253)
Derivative instruments	(166)		—
Right of use lease asset	(25)		(30)
Other	(4)		(5)
Deferred tax liabilities	(490)		(288)
Deferred tax assets:
Net operating loss carryforwards	848		870
Carrying value of debt	25		29
Excess business interest expense carryforward	646		665
Capital loss carryforwards	78		101
Asset retirement obligations	65		91
Investments	1		11
Future lease payments	25		30
Accrued liabilities	15		21
Derivative instruments	—		137
Other	32		29
Deferred tax assets	1,735		1,984
Valuation allowance	(312)		(345)
Deferred tax assets after valuation allowance	1,423		1,639
Net deferred tax asset	$	933	$	1,351

Schedule of federal NOLs and excess business interest

As of December 31, 2023, 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	$	760	$	24	$	—
Indefinitely lived	2,268		102		—
Total federal net operating losses	$	3,028	$	126	$	—
Excess business interest expense (indefinitely lived)	$	1,381	$	75	$	1,277

Schedule of reconciliation of unrecognized tax benefits

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

	Successor						Predecessor
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from February 10, 2021 through December 31, 2021		Period from January 1, 2021 through February 9, 2021
Unrecognized tax benefits at beginning of period	$	69	$	74	$	74	$	74
Additions based on tax positions related to the current year	3		2		—		—
Additions to tax positions of prior years	3		2		—		—
Settlements	(5)		—		—		—
Expiration of the applicable statute of limitations	—		—		—		—
Reductions to tax positions of prior years	(2)		(9)		—		—
Unrecognized tax benefits at end of period	$	68	$	69	$	74	$	74