Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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:


	Years Ended December 31,
	2024		2023		2022
Current
Federal	$	(1)	$	264	$	37
State	(3)		6		10
Current Income Taxes	(4)		270		47
Deferred
Federal	(178)		381		(1,112)
State	55		47		(220)
Deferred Income Taxes	(123)		428		(1,332)
Total	$	(127)	$	698	$	(1,285)

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,
	2024				2023				2022
Income tax expense (benefit) at the federal statutory rate of 21%	$	(177)	21.0	%	$	655	21.0	%	$	767	21.0	%
State income taxes (net of federal income tax benefit)	(5)		0.6	%	76		2.5	%	45		1.2	%
Deferred remeasurement due to state rate changes	47		(5.6)	%	(20)		(0.6)	%	30		0.8	%
Change in valuation allowance due to acquisitions	14		(1.7)	%	—		—	%	19		0.5	%
Change in valuation allowance excluding impact of acquisitions	(18)		2.1	%	(33)		(1.1)	%	(2,147)		(58.8)	%
Research and development tax credits	(31)		3.7	%	(3)		(0.1)	%	(19)		(0.5)	%
Transaction costs	22		(2.6)	%	—		—	%	2		0.1	%
Compensation costs related to acquired company	11		(1.2)	%	—		—	%	—		—	%
Other	10		(1.2)	%	23		0.7	%	18		0.5	%
Total	$	(127)	15.1	%	$	698	22.4	%	$	(1,285)	(35.2)	%

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:


	December 31, 2024		December 31, 2023
Deferred tax liabilities:
Property, plant and equipment	$	(1,730)	$	(295)
Derivative instruments	—		(166)
Right of use lease asset	(36)		(25)
Other	(3)		(4)
Deferred tax liabilities	(1,769)		(490)

Deferred tax assets:

Net operating loss carryforwards	1,258		848
Carrying value of debt	4		25
Excess business interest expense carryforward	777		646
Capital loss carryforwards	103		78
Tax credit carryforwards	53		15
Contract liabilities	261		—
Asset retirement obligations	123		65
Investments	—		1
Future lease payments	36		25
Accrued liabilities	39		15
Derivative instruments	13		—
Other	24		17
Deferred tax assets	2,691		1,735
Valuation allowance	(343)		(312)
Deferred tax assets after valuation allowance	2,348		1,423
Net deferred tax asset	$	579	$	933

Reflected in the accompanying balance sheets as:
Deferred income tax assets	$	589	$	933
Deferred income tax liabilities	(10)		—
Total	$	579	$	933

Schedule of federal NOLs and excess business interest

As of December 31, 2024, and after taking into account each of the foregoing matters, the federal NOLs are as follows:


Net operating losses, by year of expiration:
2031	$	5
2032	8
2033	2
2034	2
2035	50
2036	618
2037	832
Indefinitely lived	3,640
Total federal net operating losses	$	5,157

Schedule of reconciliation of unrecognized tax benefits

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


	Years Ended December 31,
	2024		2023		2022
Unrecognized tax benefits at beginning of period	$	68	$	69	$	74
Additions based on tax positions related to the current year	3		3		2
Additions to tax positions of prior years	1		3		2
Additions to tax positions related to acquisitions	9		—		—
Settlements	—		(5)		—
Expiration of the applicable statute of limitations	—		—		—
Reductions to tax positions of prior years	(1)		(2)		(9)
Unrecognized tax benefits at end of period	$	80	$	68	$	69