For restricted stock awards and stock options, we had:



	2013		2012		2011
	(In millions)
Recognized stock compensation expense	$	16.1	$	11.4	$	10.0
Capitalized stock compensation cost for our oil and natural gas properties	3.5		2.7		2.5
Tax benefit on stock based compensation	6.2		4.5		3.9

The remaining unrecognized compensation cost related to unvested awards at December 31, 2013 is approximately $14.2 million with $2.4 million of this amount anticipated to be capitalized. The weighted average period of time over which this cost will be recognized is 0.8 years.

At our annual meeting of stockholders held on May 2, 2012, our stockholders approved the Unit Corporation Stock and Incentive Compensation Plan Amended and Restated May 2, 2012 (the amended plan). The amended plan allows us to grant stock-based and cash-based compensation to our employees (including employees of subsidiaries) as well as non-employee directors. The amended plan succeeds the Non-employee Directors' 2000 Stock Option Plan (the option plan), and no new awards will be issued under the option plan.

The amended plan allows for the issuance of 3.3 million shares of common stock with 2.0 million shares being the maximum number of shares that can be issued as “incentive stock options.” Awards under this plan may be granted in any one or a combination of the following:


•	incentive stock options under Section 422 of the Internal Revenue Code;


•	non-qualified stock options;


•	performance shares;


•	performance units;


•	restricted stock;


•	restricted stock units;


•	stock appreciation rights;


•	cash based awards; and


•	other stock-based awards.

This plan also contains various limits as to the amount of awards that can be given to an employee in any fiscal year. All awards are generally subject to the minimum vesting periods, as determined by our Compensation Committee and included in the award agreement.

The table below shows the estimates of the fair value of stock options granted to our non-employee directors under the option plan in 2011 using the Black-Scholes model and applying the estimated values also presented in the table:



	2011
Options granted	31,500
Estimated fair value (in millions)	$	0.7
Estimate of stock volatility	0.48
Estimated dividend yield	—		%
Risk free interest rate	2		%
Expected life range based on prior experience (in years)	5
Forfeiture rate	—		%

Expected volatilities are based on the historical volatility of our stock. We use historical data to estimate option exercise and termination rates within the model and aggregate groups that have similar historical exercise behavior for valuation purposes. To date, we have not paid dividends on our stock. The risk free interest rate is computed from the United States Treasury Strips rate using the term over which it is anticipated the grant will be exercised.

SARs

Activity pertaining to SARs granted under the Unit Corporation Stock and Incentive Compensation Plan is as follows:



	Number of Shares	Weighted Average Grant Date Price
Outstanding at January 1, 2011	145,901	$	46.59
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding at December 31, 2011	145,901	46.59
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding at December 31, 2012	145,901	46.59
Granted	—	—
Exercised	—	—
Forfeited	—	—
Outstanding at December 31, 2013	145,901	$	46.59

There were no SARs granted in 2013, 2012, or 2011. The SARs expire after 10 years from the date of the grant. In 2013 and 2012, no shares vested. In 2011, 33,745 shares vested. The aggregate intrinsic value of the 145,901 shares outstanding at December 31, 2013 was $0.7 million with a weighted average remaining contractual term of 3.6 years.

Restricted Stock

Activity pertaining to restricted stock awards granted under the amended plan is as follows:



Employees	Number of Shares		Weighted Average Grant Date Price
Nonvested at January 1, 2011	446,125		$	47.39
Granted	211,050		55.91
Vested	(190,262	)	43.32
Forfeited	(18,952	)	44.55
Nonvested at December 31, 2011	447,961		47.44
Granted	376,445		47.37
Vested	(220,788	)	45.66
Forfeited	(14,091	)	45.37
Nonvested at December 31, 2012	589,527		48.11
Granted	453,549		48.20
Vested	(248,003	)	46.46
Forfeited	(18,330	)	47.85
Nonvested at December 31, 2013	776,743		$	48.70



Non-Employee Directors	Number of Shares		Weighted Average Grant Date Price
Nonvested at December 31, 2011	—		$	—
Granted	24,606		40.23
Vested	—		—
Forfeited	—		—
Nonvested at December 31, 2012	24,606		$	40.23
Granted	21,128		41.65
Vested	(10,030	)	40.23
Forfeited	—		—
Nonvested at December 31, 2013	35,704		$	41.07

The restricted stock awards vest in periods ranging from 2 to 3 years, except for a portion of those granted to certain executive officers. As to those executive officers, 30% of the shares granted, or 57,405 shares in 2013, 46,441 shares in 2012, and 20,062 shares in 2011 (the performance shares), will cliff vest in the first half of 2016, 2015, and 2014, respectively. The actual number of performance shares that vest in 2014, 2015, and 2016 will be based on the company’s achievement of certain performance criteria over a three-year period, and will range from 0% to 150% of the restricted shares granted as performance shares. Based on the performance criteria, the participants will receive 65.25% of the 2011 performance based shares and are estimated to receive the targeted amount (or 100%) of the 2012 and 2013 performance shares.

The fair value of the restricted stock granted in 2013, 2012, and 2011 at the grant date was $21.3 million, $16.9 million, and $10.8 million, respectively. The aggregate intrinsic value of the 248,003 shares of restricted stock on their 2013 vesting date was $11.3 million. The aggregate intrinsic value of the 776,743 shares outstanding subject to vesting at December 31, 2013 was $40.1 million with a weighted average remaining life of 1.0 year.

Employee Stock Option Plan

The Stock Option Plan, provided the granting of options for up to 2,700,000 shares of common stock to officers and employees. The option plan permitted the issuance of qualified or nonqualified stock options. Options granted typically became exercisable at the rate of 20% per year one year after being granted and expire after 10 years from the original grant date. The exercise price for options granted under this plan was the fair market value of the common stock on the date of the grant. In 2006, as a result of the approval of the adoption of the Unit Corporation Stock and Incentive Compensation Plan, no further awards were made under this plan.

Activity pertaining to the Stock Option Plan is as follows:



	Number of Shares		Weighted Average Exercise Price
Outstanding at January 1, 2011	184,765		$	31.11
Granted	—		—
Exercised	(42,285	)	28.29
Forfeited	(3,500	)	53.90
Outstanding at December 31, 2011	138,980		31.39
Granted	—		—
Exercised	(18,850	)	20.38
Forfeited	(2,100	)	37.83
Outstanding at December 31, 2012	118,030		33.03
Granted	—		—
Exercised	(48,110	)	26.09
Forfeited	(1,000	)	37.83
Outstanding at December 31, 2013	68,920		$	37.81

There were no shares that vested in 2013, 2012, or 2011. The intrinsic value of options exercised in 2013 was $1.1 million. Total cash received from the options exercised in 2013 was $0.1 million.



	Outstanding and Exercisable Options at December 31, 2013
Exercise Prices	Number of Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$37.69 - $37.83	68,920	1.0 year	$37.81

Options for 68,920, 118,030, and 138,980 shares were exercisable with weighted average exercise prices of $37.81, $33.03, and $31.39 at December 31, 2013, 2012, and 2011, respectively. The aggregate intrinsic value of the 68,920 shares outstanding subject to options at December 31, 2013 was $1.0 million with a weighted average remaining contractual term of 1.0 year.

Non-Employee Directors' Stock Option Plan

Under the Unit Corporation 2000 Non-Employee Directors’ Stock Option Plan, on the first business day following each annual meeting of shareholders, each person who was then a member of our Board of Directors and who was not then an employee of the company or any of its subsidiaries was granted an option to purchase 3,500 shares of common stock. The option price for each stock option was the fair market value of the common stock on the date the stock options were granted. The term of each option is 10 years and cannot be increased and no stock options were to be exercised during the first six months of its term except in case of death. As mentioned above, on May 2, 2012, our stockholders approved the amended plan which succeeds this plan, and no new awards will be issued under the non-employee director option plan.

Activity pertaining to the Directors’ Plan is as follows:



	Number of Shares		Weighted Average Exercise Price
Outstanding at January 1, 2011	178,500		$	48.77
Granted	31,500		53.81
Exercised	(10,500	)	21.96
Forfeited	—		—
Outstanding at December 31, 2011	199,500		48.37
Granted	—		—
Exercised	(7,000	)	20.28
Forfeited	—		—
Outstanding at December 31, 2012	192,500		49.39
Granted	—		—
Exercised	(17,500	)	32.53
Forfeited	(3,500	)	20.46
Outstanding at December 31, 2013	171,500		$	51.70

The total grant date fair value of the 31,500 shares vesting in 2011 was $0.7 million. The intrinsic value of the 17,500 options exercised in 2013 was $0.2 million. Total cash received from options exercised in 2013 was $0.6 million.



	Outstanding and Exercisable Options at December 31, 2013
Weighted Average Exercise Price	Number of Shares	Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$28.23 - $41.21	66,500	4.6 years	$	36.64
$53.81 - $73.26	105,000	4.5 years	$	61.24

Options for 171,500, 192,500, and 199,500 shares were exercisable with weighted average exercise prices of $51.70, $49.39, and $48.37 at December 31, 2013, 2012, and 2011, respectively. The aggregate intrinsic value of the shares outstanding subject to options at December 31, 2013 was $1.0 million with a weighted average remaining contractual term of 4.6 years.