Equity-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Equity-Based Compensation

Schedule of equity-based compensation expense

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2024		2023		2024
RSU awards	$	8,720		11,148		15,982		20,409
PSU awards		4,442		5,627		9,847		12,067
Converted AM RSU Awards (1)		—		—		1		—
Equity awards issued to directors		350		376		700		752
Total expense	$	13,512		17,151		26,530		33,228

(1) Antero Resources recognized compensation expense for equity-based awards granted by Antero Midstream Partners LP’s (“Antero Midstream Partners”) under its equity compensation plans prior to March 12, 2019 (date of deconsolidation) because the awards under such plans were accounted for as if they were distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocated a portion of equity-based compensation expense related to grants prior to March 12, 2019 to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. As of March 31, 2023, all such awards were fully vested, and there is no remaining unamortized expense attributable to these awards after such date.

Summary of RSU award activity

		Weighted
		Average
	Number	Grant Date
	of Units	Fair Value
Total awarded and unvested—December 31, 2023	3,521,050	$	22.40
Granted	1,387,062		26.49
Vested	(1,536,814)		17.48
Forfeited	(22,940)		25.71
Total awarded and unvested—June 30, 2024	3,348,358	$	26.33

Schedule of weighted average fair value assumptions used for PSUs granted

Dividend yield		—	%
Volatility		55	%
Risk-free interest rate		4.23	%
Weighted average fair value of awards granted	$	32.29

Summary of PSU award activity

		Weighted
		Average
	Number	Grant Date
	of Units	Fair Value
Total awarded and unvested—December 31, 2023	1,412,191	$	29.54
Granted	354,016		29.39
Vested (1)	(414,912)		10.76
Total awarded and unvested—June 30, 2024	1,351,295	$	35.27

(1) During the three months ended June 30, 2024, the PSUs granted in 2021 that were based on absolute TSR and Net Debt to EBITDAX met the performance criteria to achieve vesting at 150% and 200% of target, respectively, and converted into approximately 0.7 million shares of the Company’s common stock.