Our long-term incentive plan, as amended and adopted by our Board of Directors (the “LTIP”), provides for the grant of restricted stock units (“RSUs”), restricted stock awards, stock options, stock appreciation rights, performance awards and other stock awards to the Company’s employees and non-employee directors and has a share reserve equal to 6,800,000 shares of common stock.

Restricted Stock Units. During the years ended December 31, 2024, 2023 and 2022, we granted RSUs to employees and non-employee directors under the LTIP, which will vest over a three-year to five-year period and one-year period, respectively. The fair value of RSUs is based on the closing sales price of our common stock on the date of grant, and compensation expense is recognized ratably over the requisite service period. A summary of the changes in unvested RSUs is presented below:


	Unvested Restricted Stock Units	Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Unvested as of December 31, 2021	775	$	46.77
Granted	666	$	81.87
Vested	(300)	$	48.11
Forfeited	(184)	$	56.54
Unvested as of December 31, 2022	957	$	68.91
Granted	440	$	72.25
Vested	(329)	$	61.66
Forfeited	(128)	$	68.42
Unvested as of December 31, 2023	940	$	73.08
Granted (a)	962	$	83.09
Vested (a)	(925)	$	74.18
Forfeited	(20)	$	77.71
Unvested as of December 31, 2024	957	$	81.99

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(a)Approximately 5.2 million Southwestern RSUs were converted to 478 thousand Company RSUs, of which approximately 384 thousand RSUs were accelerated. We recognized the accelerated share-based compensation expense related to these awards in other operating expense, net on our consolidated statements of operations. Additionally, approximately 105 thousand RSUs were accelerated related to one-time termination benefits for certain employees.

The aggregate intrinsic value of RSUs that vested during the years ended December 31, 2024, 2023 and 2022 was approximately $77 million, $25 million and $26 million, respectively, based on the stock price at the time of vesting.

As of December 31, 2024, there was approximately $46 million of total unrecognized compensation expense related to unvested RSUs. The expense is expected to be recognized over a weighted average period of approximately 2.04 years.

Performance Share Units. During the years ended December 31, 2024, 2023 and 2022, we granted performance share units (“PSUs”) to senior management under the LTIP, which will generally vest over a three-year period and will be settled in shares. The performance criteria include total shareholder return (“TSR”) and relative TSR (“rTSR”) and could result in a total payout between 0% - 200% of the target units. The fair value of the PSUs was measured on the grant date using a Monte Carlo simulation, and compensation expense is recognized ratably over the requisite service period because these awards depend on a combination of service and market criteria.

The following table presents the assumptions used in the valuation of the PSUs granted during the years ended December 31, 2024, 2023 and 2022.


Assumption - TSR, rTSR	2024 PSU Awards		2023 PSU Awards		2022 PSU Awards
Risk-free interest rate	4.55	%	3.85	%	2.00	%
Volatility	39.36	%	64.4	%	70.2	%


	Unvested Performance Share Units	Weighted Average Grant Date Fair Value Per Share
	(in thousands)
Unvested as of December 31, 2021	183	$	66.12
Granted	133	$	109.65
Vested	—	$	—
Forfeited	(40)	$	57.48
Unvested as of December 31, 2022	276	$	88.28
Granted	131	$	78.78
Vested	—	$	—
Forfeited	(13)	$	68.77
Unvested as of December 31, 2023	394	$	85.78
Granted	133	$	95.33
Vested	(151)	$	71.29
Forfeited	—	$	—
Unvested as of December 31, 2024	376	$	94.67

The aggregate intrinsic value of PSUs that vested during the year ended December 31, 2024 was approximately $19 million based on the stock price at the time of vesting.

As of December 31, 2024, there was approximately $14 million of total unrecognized compensation expense related to unvested PSUs. The expense is expected to be recognized over a weighted average period of approximately 1.84 years.


	Years Ended December 31,
	2024		2023		2022
General and administrative expenses	$	33	$	29	$	19
Natural gas and oil properties	7		6		4
Production expense	4		4		3
Separation and other termination costs	9		—		—
Other operating expense, net	28		—		—
Total RSU and PSU compensation	$	81	$	39	$	26
Related income tax benefit	$	13	$	7	$	6