Under the Talos Energy Inc. Long Term Incentive Plans (the “LTIP”), the Company may issue, subject to approval by the Talos board of directors, grants of options (including incentive stock options), stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, cash awards, substitute awards or any combination of the foregoing to employees, directors and consultants. The LTIP authorizes the Company to grant awards of up to 5,415,576 shares of the Company’s common stock.

Restricted Stock Units (“RSUs”) — The following table summarizes RSU activity for the three months ended March 31, 2021:

	RSUs			Weighted Average Grant Date Fair Value
Unvested RSUs at December 31, 2020		1,652,988		$	13.73
Granted		1,067,141		$	13.11
Vested		(623,400	)	$	14.07
Forfeited		—		$	—
Unvested RSUs at March 31, 2021⁽¹⁾		2,096,729		$	13.31

Performance Share Units (“PSUs”) — The following table summarizes PSU activity for the three months ended March 31, 2021:

	PSUs		Weighted Average Grant Date Fair Value
Unvested PSUs at December 31, 2020		834,172	$	25.46
Granted		586,984	$	18.96
Vested		—	$	—
Forfeited		—	$	—
Unvested PSUs at March 31, 2021⁽¹⁾		1,421,156	$	22.77

⁽¹⁾As of March 31, 2021, 586,984 of the unvested PSUs were accounted for as liability awards in “Accrued liabilities” on the Condensed Consolidated Balance Sheet.

The grant date fair value of the PSUs granted during the three months ended March 31, 2021, calculated using a Monte Carlo simulation, was $11.1 million. The following table summarizes the assumptions used to calculate the grant date fair value of the PSUs granted:

	2021 Grant Date
	March 8
Number of simulations		100,000
Expected term (in years)		2.8
Expected volatility		78.3	%
Risk-free interest rate		0.3	%
Dividend yield		—	%

Share-based compensation expense associated with RSUs, PSUs and other awards are reflected as “General and administrative expense,” in the Condensed Consolidated Statements of Operations, net amounts capitalized to “Proved Properties,” in the Condensed Consolidated Balance Sheets. Because of the non-cash nature of share-based compensation, the expensed portion of share-based compensation is added back to net income in arriving at “Net cash provided by operating activities” in the Condensed Consolidated Statements of Cash Flows.

The Company recognized the following share-based compensation expense, net (in thousands):

	Three Months Ended March 31,
	2021			2020
Share-based compensation expense	$	4,915		$	3,212
Less: amounts capitalized to oil and gas properties		(2,251	)		(1,585	)
Total share-based compensation expense, net	$	2,664		$	1,627