Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of unrecognized tax benefits

Unrecognized tax benefit activity is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Beginning unrecognized tax benefits	$	—	$	39	$	141
Current year additions	27		—		—
Effectively settled tax positions	—		(39)		(102)
Ending unrecognized tax benefits	$	27	$	—	$	39

Schedule of net tax refunds

Net tax refunds (payments) related to filed tax returns are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Tax refunds (payments), net (a)	$	(1)	$	13	$	5

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(a)Represents net state tax payments of $3 million, $3 million and $2 million for the years ended December 31, 2021, 2020 and 2019, respectively, and net federal tax refunds of $2 million, $16 million and $7 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Summary of open tax years

The earliest open years in the Company's key jurisdictions are as follows:

U.S. federal	2020
Various U.S. states	2013

Income tax (provision) benefit attributable to continuing operations

Income tax benefit (provision) is as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Current:
U.S. federal	$	(1)	$	12	$	8
U.S. state	(44)		(3)		(3)
Current income tax benefit (provision)	(45)		9		5
Deferred:
U.S. federal	(585)		55		(228)
U.S. state	2		(3)		(12)
Deferred income tax benefit (provision)	(583)		52		(240)
Income tax benefit (provision)	$	(628)	$	61	$	(235)

Reconciliation of federal statutory tax rate

The effective tax rate for income (loss) is reconciled to the United States federal statutory rate as follows:

	Year Ended December 31,
	2021			2020			2019
	(in millions, except percentages)
Income (loss) before income taxes	$	2,746		$	(261)		$	1,008
Federal statutory income tax rate	21		%	21		%	21		%
Benefit (provision) for federal income taxes at the statutory rate	(577)			55			(212)
State income tax provision (net of federal tax)	(33)			(5)			(12)
Transaction costs	(6)			—			—
Other	(12)			11			(11)
Income tax benefit (provision)	$	(628)		$	61		$	(235)
Effective tax rate	23		%	23		%	23		%

Schedule of deferred tax assets and liabilities

Significant components of deferred tax assets and deferred tax liabilities are as follows:

	As of December 31,
	2021		2020
	(in millions)
Deferred tax assets:
Net operating loss carryforward (a)	$	1,263	$	1,111
Credit carryforwards (b)	110		110
Asset retirement obligations	77		61
Incentive plans	27		29
Net deferred hedge losses	167		68
South Texas Divestiture	41		62
Lease deferred tax assets	196		167
Convertible debt	17		—
Other	60		47
Deferred tax assets	1,958		1,655
Deferred tax liabilities:
Oil and gas properties, principally due to differences in basis, depletion and the deduction of intangible drilling costs for tax purposes	(3,664)		(2,741)
Other property and equipment, principally due to the deduction of bonus depreciation for tax purposes	(235)		(196)
South Texas Divestiture	(18)		(16)
Lease deferred tax liabilities	(76)		(43)
Convertible Notes	—		(23)
Other	(3)		(2)
Deferred tax liabilities	(3,996)		(3,021)
Net deferred tax liability	$	(2,038)	$	(1,366)

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(a)Net operating loss carryforwards as of December 31, 2021 consist of $6.0 billion of U.S. federal NOLs. Of the NOLs, $2.2 billion were incurred prior to January 1, 2018 and will begin to expire, if unused, in 2032, and $3.8 billion were incurred on or after January 1, 2018 and will not expire and will be carried forward indefinitely under current tax law. Additionally, the net operating loss carryforwards consist of $177 million of Colorado NOLs that begin to expire in 2027, all of which have a fully offsetting valuation allowance.

(b)Credit carryforwards as of December 31, 2021, consist of $110 million of U.S. federal credits for increasing research and development activities that expire between 2032 and 2038.