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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
8.Income Taxes

The table below presents a comparison of the Current Quarter and Prior Quarter’s income tax expense and actual quarterly effective tax rates.
Three Months Ended March 31,
20242023
Income before income taxes$33 $1,793 
Current tax expense— — %261.5 %
Deferred tax expense721.2 %37821.0 %
Income tax expense$7 21.2 %$404 22.5 %

An estimated annual effective tax rate (“EAETR”) is used in recording our interim quarterly income tax provision. The EAETR is determined based on analysis of year-to-date and projected financial results of our operations. Our EAETR during the Current Quarter was 21.9%, compared to 22.5% in the Prior Quarter. The actual quarterly effective tax rate and EAETR can differ as a result of certain discrete items, which are recorded in the quarter. Such items include, but are not limited to, certain equity-based compensation, true-ups resulting from differences between tax returns filed and estimated accruals, and tax effects of enacted laws.

The Current Quarter income tax expense is entirely deferred as a result of projecting a loss this year for tax purposes. The Prior Quarter recorded $26 million of current tax expense, primarily as a result of projecting a tax gain on the Eagle Ford divestiture which closed in the Prior Quarter.

There were no material income tax payments made or refunds received in the Current Quarter.

As of December 31, 2023, we were in a net deferred tax asset position and anticipate being in a net deferred tax asset position as of December 31, 2024. Based on all available positive and negative evidence, including projections of future taxable income, we believe it is more likely than not that some of our deferred tax assets will not be realized. As such, a partial valuation allowance was recorded against our net deferred tax asset position for federal and state purposes as of March 31, 2024 and December 31, 2023.
On August 16, 2022, the President of the United States signed into law the Inflation Reduction Act of 2022, which includes provisions for a 15% corporate alternative minimum tax (“CAMT”) on book income for companies whose average book income exceeds $1 billion for any three consecutive years preceding the tax year. Based upon
our book income in the past three years, we believe we are subject to the CAMT beginning in the current year. The CAMT will result in incremental taxes to the extent that 15% of our adjusted book earnings exceeds our regular federal tax liability. We do not currently project any material impact due to the CAMT in 2024.