STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

STOCK-BASED COMPENSATION

Stock-based Compensation

6.Stock-based Compensation

We have recognized stock-based compensation cost as shown below. Expense associated with stock compensation will fluctuate based on the grant-date fair value of awards, the number of awards and the timing of the awards.  Historical amounts may not be representative of future amounts as the value of future awards may vary from historical amounts.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2016		2015		2016		2015
Restricted stock awards
Performance stock awards	$	7,215	$	4,645	$	12,909	$	9,643
Service-based stock awards		4,751		3,861		8,916		8,798
		11,966		8,506		21,825		18,441
Stock option awards		748		647		1,403		1,286
Total stock compensation cost		12,714		9,153		23,228		19,727
Less amounts capitalized to oil and gas properties		(5,224)		(4,165)		(10,210)		(9,584)
Compensation expense	$	7,490	$	4,988	$	13,018	$	10,143

During the second quarter of 2016, a voluntary Early Retirement Incentive Program (ERIP) was offered to certain employees and completed in June.  In addition to those who participated in the ERIP, other individuals also retired in June.  The retirement agreements included accelerated vesting of performance and service-based restricted stock awards and stock option awards.  The effect of the accelerated vesting on our total stock compensation cost for the second quarter and six months ended June 30, 2016 was an increase of $2.6 million over the same periods from 2015.