The Δ natural orbital (ΔNO) two-electron density matrix (2-RDM) and energy expression are derived from a multideterminantal wave function. The approximate ΔNO 2-RDM is combined with an on-top density functional and a double-counting correction to capture electron correlation. A trust-region Newton's method optimization algorithm for the simultaneous optimization of ΔNO orbitals and occupancies is introduced and compared to the previous iterative diagonalization algorithm. The combination of ΔNO and two different on-top density functionals, Colle-Salvetti (CS) and Opposite-spin exponential cusp and Fermi-hole correction (OF), is assessed on small hydrogen clusters and compared to density functional, single-reference coupled-cluster, and multireference perturbation theory (MRMP2) methods. The ΔNO-CS and ΔNO-OF methods outperform the single-reference methods and are comparable to MRMP2. However, there is a distinct qualitative error in the ΔNO potential energy surface for H4 compared to the exact. This discrepancy is explained through analysis of the ΔNO orbitals, occupancies, and the two-electron density.
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