Equity-Based Compensation (Tables)

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2023		2024		2023		2024
RSU awards	$	8,286		11,499		24,268		31,908
PSU awards		9,796		4,190		19,643		16,257
Converted AM RSU Awards (1)		—		—		1		—
Equity awards issued to directors		376		376		1,076		1,128
Total expense	$	18,458		16,065		44,988		49,293

(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	1,404,041		26.52
Vested	(1,588,616)		17.73
Forfeited	(85,114)		26.01
Total awarded and unvested—September 30, 2024	3,251,361	$	26.36

Schedule of weighted average fair value assumptions used for PSUs granted

The following table presents the assumptions used in the Monte Carlo valuation model and the grant date fair value information for the 2024 Absolute TSR PSUs:

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—September 30, 2024	1,351,295	$	35.27

(1) During the nine months ended September 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.

Summary of stock option activity

				Weighted
		Weighted		Average
		Average		Remaining	Intrinsic
	Number	Exercise		Contractual	Value
	of Options	Price		Life	(in thousands) (1)
Outstanding—December 31, 2023	258,696	$	50.04	1.3	$	—
Expired	(1,667)		50.00	—		—
Outstanding—September 30, 2024	257,029	$	50.04	0.5		—
Vested—September 30, 2024	257,029	$	50.04	0.5	$	—
Exercisable—September 30, 2024	257,029	$	50.04	0.5	$	—

(1) Intrinsic values are based on the exercise price of the options and the closing price of Antero Resources’ common stock on the referenced dates.