Compensation Plans

3 Months Ended

Mar. 31, 2019

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

Note 7 - Compensation Plans

Performance Share Units

The Company grants performance share units (“PSUs”) to eligible employees as part of its long-term equity incentive compensation program. The number of shares of the Company’s common stock issued to settle PSUs ranges from zero to two times the number of PSUs awarded and is determined based on certain performance criteria over a three-year performance period. PSUs generally vest on the third anniversary of the date of the grant or upon other triggering events as set forth in the Company’s Equity Incentive Compensation Plan (“Equity Plan”).

PSUs are subject to a combination of market, performance, and service vesting criteria. Awards with a market criteria component are based on annualized Total Shareholder Return (“TSR”) for the performance period and the relative performance of the Company’s TSR compared with the annualized TSR of the Company’s peer group for the performance period. Compensation expense for market-based PSUs is recognized on a straight-line basis within general and administrative expense and exploration expense over the vesting periods of the respective awards.

Awards with a performance criteria component are based on relative debt adjusted per share cash flow growth (“DACFG”) compared with DACFG, as calculated by the Company, of its peer group that is evaluated over the three-year performance period. Compensation expense for performance-based PSUs will be evaluated on a quarterly basis and may be adjusted as the number of units expected to vest increases or decreases.

Total compensation expense recorded for PSUs was $2.8 million and $2.4 million for the three months ended March 31, 2019, and 2018, respectively. As of March 31, 2019, there was $15.9 million of total unrecognized compensation expense related to non-vested PSU awards, which is being amortized through 2021. There have been no material changes to the outstanding and non-vested PSUs during the three months ended March 31, 2019.

Employee Restricted Stock Units

The Company grants restricted stock units (“RSUs”) to eligible persons as part of its long-term equity incentive compensation program. Each RSU represents a right to receive one share of the Company’s common stock upon settlement of the award at the end of the specified vesting period. Compensation expense for RSUs is recognized within general and administrative expense and exploration expense over the vesting periods of the respective awards. RSUs granted to employees generally vest one-third on each anniversary date of the grant over a three-year vesting period or upon other triggering events as set forth in the Company’s Equity Plan.

Total compensation expense recorded for employee RSUs was $2.7 million for each of the three months ended March 31, 2019, and 2018. As of March 31, 2019, there was $16.4 million of total unrecognized compensation expense related to non-vested RSU awards, which is being amortized through 2021. There have been no material changes to the outstanding and non-vested RSUs during the three months ended March 31, 2019.