Stock-Based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

For restricted stock awards and stock options, we had:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	(In millions)
Recognized stock compensation expense	$	3.2	$	1.9	$	9.0	$	7.2
Capitalized stock compensation cost for our oil and natural gas properties	0.5		0.4		1.3		1.6
Tax benefit on stock based compensation	1.2		0.7		3.4		2.7

The remaining unrecognized compensation cost related to unvested awards at September 30, 2017 is approximately $14.2 million, of which $1.7 million is anticipated to be capitalized. The weighted average period over which this cost will be recognized is one year.

Our Second Amended and Restated Unit Corporation Stock and Incentive Compensation Plan effective May 6, 2015 (the amended plan) allows us to grant stock-based and cash-based compensation to our employees (including employees of subsidiaries) as well as to non-employee directors. A total of 7,000,000 shares of the company's common stock is authorized for issuance to eligible participants under the amended plan with 2,000,000 shares being the maximum number of shares that can be issued as "incentive stock options."

We did not grant any SARs or stock options during either of the three or nine month periods ending September 30, 2017 or 2016. We did not grant any restricted stock awards during either of the three month periods ending September 30, 2017 or 2016. The following table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated:



	Nine Months Ended						Nine Months Ended
	September 30, 2017						September 30, 2016
	Time Vested			Performance Vested			Time Vested			Performance Vested
Shares granted:
Employees	475,799			173,373			486,578			152,373
Non-employee directors	49,104			—			90,000			—
	524,903			173,373			576,578			152,373
Estimated fair value (in millions):⁽¹⁾
Employees	$	11.8		$	4.5		$	2.6		$	0.8
Non-employee directors	0.9			—			0.9			—
	$	12.7		$	4.5		$	3.5		$	0.8
Percentage of shares granted expected to be distributed:
Employees	95		%	91		%	94		%	89		%
Non-employee directors	100		%	N/A			100		%	N/A

_______________________


(1)	Represents 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)

The time vested restricted stock awards granted during the first nine months of 2017 and 2016 are being recognized over a three-year vesting period. During the first two quarters of 2017 and the first quarter of 2016, there were two different performance vested restricted stock awards granted to certain executive officers. The first will cliff vest three years from the grant date based on the company's achievement of certain stock performance measures at the end of the term and will range from 0% to 200% of the restricted shares granted as performance shares. The second will vest, one-third each year, over a three-year vesting period subject to the company's achievement of cash flow to total assets (CFTA) performance measurement each year and will range from 0% to 200%. Based on a probability assessment of the selected performance criteria at September 30, 2017, the participants are estimated to receive 81% of the 2017, 153% of the 2016, and 40% of the 2015 performance based shares. The CFTA performance measurement at September 30, 2017 was assessed to vest at target or 100%. The total aggregate stock compensation expense and capitalized cost related to oil and natural gas properties for 2017 awards for the first nine months of 2017 was $5.8 million.