Equity-Based Compensation and Cash Awards (Tables)

12 Months Ended

Dec. 31, 2021

Equity-Based Compensation and Cash Awards

Schedule of equity-based compensation expense

The Company’s equity-based compensation expense, by type of award, is as follows (in thousands):

	Year Ended December 31,
	2019		2020		2021
RSU awards	$	10,343		12,510		13,232
PSU awards		8,069		7,219		4,662
Converted AM RSU Awards (1)		3,425		2,519		1,160
Stock options		355		—		—
Equity awards issued to directors		1,367		1,069		1,383
Total expense	$	23,559		23,317		20,437

(1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to the Simplification Transactions to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero Resources; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Midstream Partners is no longer reflected in Antero Resources’ consolidated financial statements. See Note 3—Deconsolidation of Antero Midstream Partners to the consolidated financial statements for further discussion on the Simplification Transactions.

Summary of RSU award activity

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Total awarded and unvested—December 31, 2020	8,432,397	$	4.06
Granted	1,447,806		9.63
Vested	(3,622,741)		4.37
Forfeited	(326,855)		5.45
Total awarded and unvested—December 31, 2021	5,930,607	$	5.15

Summary of PSU award activity

A summary of PSU activity is as follows:

		Weighted
	Number of	Average Grant
	Units	Date Fair Value
Total awarded and unvested—December 31, 2020	2,547,798	$	12.66
Granted	479,120		9.71
Forfeited	(67,000)		2.97
Cancelled (unearned)	(1,112,639)		19.19
Total awarded and unvested—December 31, 2021	1,847,279	$	8.31

Schedule of weighted average fair value assumptions used for PSUs granted

	Year Ended December 31,
	2019			2020			2021
Dividend yield		—	%		—	%		—	%
Volatility		36	%		80	%		85	%
Risk-free interest rate		2.35	%		0.17	%		0.32	%
Weighted average fair value of awards granted—Absolute TSR	$	9.26			2.63			11.99
Weighted average fair value of awards granted—Relative TSR	$	—			3.30			—

Schedule of Converted AM RSU Awards

		Weighted
		Average
	Number of	Grant Date
	Units	Fair Value
Total awarded and unvested—December 31, 2020	296,390	$	15.06
Granted	—		—
Vested	(209,964)		15.73
Forfeited	(4,719)		13.25
Total awarded and unvested—December 31, 2021	81,707	$	13.46

Summary of stock option activity

				Weighted
		Weighted		Average
		Average		Remaining	Intrinsic
	Stock	Exercise		Contractual	Value
	Options	Price		Life	(in thousands)
Outstanding—December 31, 2020	432,461	$	50.64	4.1	$	—
Granted	—		—
Exercised	—		—
Forfeited	—		—
Expired	(80,667)		50.00
Outstanding—December 31, 2021	351,794	$	50.79	3.0	$	—
Vested—December 31, 2021	351,794	$	50.79	3.0	$	—
Exercisable—December 31, 2021	351,794	$	50.79	3.0	$	—