Stock-Based Compensation Arrangements

12 Months Ended

Dec. 31, 2012

Stock Based Compensation Arrangements [Abstract]

Stock-Based Compensation Arrangements

Note 13 – Stock-Based Compensation Arrangements

We grant restricted stock, performance units and stock options to employees and directors as incentive compensation. The restricted stock and options generally vest over three years. The vesting of these shares and options is dependent upon the continued service of the grantees with Endeavour. Upon the occurrence of a change in control, each outstanding share of restricted stock and stock option will immediately vest.

At December 31, 2012, total compensation cost related to nonvested awards not yet recognized was approximately $7.7 million and is expected to be recognized over a weighted average period of less than three years. For the year ended December 31, 2012, we included approximately $1.6 million of stock-based compensation in capitalized G&A in property and equipment.

Stock Options

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model.We did not grant any options during 2012, 2011 and 2010. Information relating to stock options, including notional stock options, is summarized as follows:

			Weighted	Weighted
	Number of		Average	Average
	Shares		Exercise	Contractual		Aggregate
	Underlying		Price per	Life in		Intrinsic
	Options		Share	Years		Value
Balance outstanding January 1, 2012	299	$	8.95
Exercised	(1)		6.73
Expired	(110)		12.04
Balance outstanding - December 31, 2012	188	$	6.72	5.5	$	85
Currently exercisable - December 31, 2012	188	$	6.72	5.5	$	85

Of options granted prior to 2009, 0.2million options were granted pursuant to incentive plans which have been approved by our stockholders. All other stock options have been granted pursuant to stock option plans that were not subject to stockholder approval.

Information relating to stock options outstanding at December 31, 2012 is summarized as follows:

	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number of Options Outstanding	Weighted Average Remaining Contractual Life		Weighted Average Exercise Price Per Share	Number Exercisable		Weighted Average Exercise Price Per Share
Less than $5.00	61	6.0	$	3.78	61	$	3.78
$5.00 - $8.00	36	5.8		5.25	36		5.25
Greater than $8.00	91	5.0		9.23	91		9.23
Total	188	5.5	$	6.72	188	$	6.72

Restricted Stock

At December 31, 2012, our employees and directors held 0.8 million restricted shares of our common stock that vest over the service period of up to three years. The restricted stock awards were valued based on the closing price of our common stock on the measurement date, typically the date of grant, and compensation expense is recorded on a straight-line basis over the restricted share vesting period.

Status of the restricted shares as of December 31, 2012 and the changes during the year ended December 31, 2012 are presented below:

				Weighted
				Average Grant
				Date Fair
		Number of		Value per
		Shares		Share
Balance outstanding - January 1, 2012		830	$	10.13
Granted		458		9.09
Vested		(452)		9.28
Forfeited		(82)		10.34
Balance outstanding - December 31, 2012		754	$	10.11
Total grant date fair value of shares vesting during the period	$	4,199

Non-Cash stock-based compensation is recorded inG&A expenses or capitalized G&A as follows:

		Year Ended
		December 31,
	2012		2011		2010
G&A Expenses	$	4,641	$	2,988	$	3,191
Capitalized G&A		1,634		1,051		988
Total non-cash stock-based compensation	$	6,275	$	4,039	$	4,179

Performance-Based Share Awards

In January 2012, certain of our executive officers were granted a target number of performance shares under individual Performance Unit Award Agreements. The performance shares will be earned as the relative total shareholder return ranking is measured among a designated peer group at the end of a three-year performance period. Payouts will be based on a predetermined schedule at the end of the performance period. The shares issued may range from 0% to 200% of the number of Performance Units specified in the agreements. The fair value of each performance-based award is estimated on the date of grant using a Monte Carlo simulation model.

Status of the performance-based share awards as of December 31, 2012 and the changes during the year ended December 31, 2012 are presented below:

			Weighted
			Average Grant
			Date Fair
	Number of		Value per
	Shares		Share
Granted	422		16.72
Forfeited	(65)		16.72
Balance outstanding - December 31, 2012	357	$	16.72