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Share-Based Compensation
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
10.Share-Based Compensation
Our long-term incentive plan, as amended and adopted by our Board of Directors (the “LTIP”), provides for the grant of 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 Current Period, we granted RSUs to employees and non-employee directors under the LTIP, which will vest over a three-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 UnitsWeighted Average Grant Date Fair Value Per Share
(in thousands)
Unvested as of December 31, 2024957 $81.99 
Granted548 $103.47 
Vested(446)$78.21 
Forfeited(14)$97.39 
Unvested as of June 30, 20251,045 $94.67 
The aggregate intrinsic value of RSUs that vested during the Current Period was approximately $51 million based on the stock price at the time of vesting.
As of June 30, 2025, there was approximately $80 million of total unrecognized compensation expense related to unvested RSUs. The expense is expected to be recognized over a weighted average period of approximately 2.3 years.
Performance Share Units. During the Current Period, we granted PSUs to senior management and certain employees 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 Current Period.
AssumptionTSR, rTSR
Risk-free interest rate4.00 %
Volatility33.40 %
A summary of the changes in unvested PSUs is presented below:
Unvested Performance Share UnitsWeighted Average Grant Date Fair Value Per Share
(in thousands)
Unvested as of December 31, 2024376 $94.67 
Granted250 $125.64 
Vested(124)$109.71 
Forfeited(4)$125.64 
Unvested as of June 30, 2025498 $106.22 
The aggregate intrinsic value of PSUs that vested during the Current Period was approximately $20 million based on the stock price at the time of vesting.
As of June 30, 2025, there was approximately $37 million of total unrecognized compensation expense related to unvested PSUs. The expense is expected to be recognized over a weighted average period of approximately 2.44 years.

RSU and PSU Compensation.
We recognized the following compensation costs, net of actual forfeitures, related to RSUs and PSUs for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
General and administrative expenses$10 $9 $18 $17 
Natural gas and oil properties3 2 4 4 
Production expense1 1 2 2 
Separation and other termination costs— 9 — 9 
Marketing expense1 — 2 — 
Other operating expense, net1 — 3 — 
Total RSU and PSU compensation$16 $21 $29 $32 
Related income tax benefit$4 $7 $8 $9