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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2017
Share-based Compensation [Abstract]  
Stock-Based Compensation Text Block
Stock-Based Compensation
     
Our stock-based compensation expense consisted of the following:
 
 
Three Months Ended 
 March 31,
 
 
2017
 
2016
 
 
(In millions)
Equity awards
 
$
16

 
$
9

Liability awards — cash-settled restricted stock units
 
2

 
3

Total stock-based compensation
 
18

 
12

Capitalized in oil and gas properties
 
(5
)
 
(4
)
Net stock-based compensation expense
 
$
13

 
$
8



As of March 31, 2017, we had approximately $76 million of total unrecognized stock-based compensation expense related to unvested stock-based compensation awards that vest within four years. On March 31, 2017, the last reported sales price of our common stock on the New York Stock Exchange was $36.91 per share.

During the first quarter of 2017, we changed our qualified retirement requirements for existing market-based restricted stock units and all subsequently issued equity and liability awards. An employee becomes eligible for qualified retirement based on a combination of years of service and age. Qualified retirement allows an employee to continue vesting between 50% and 100% of awards with no additional service requirement beyond a six-month notification period. This change resulted in the accelerated recognition of stock-based compensation expense for awards issued to eligible employees.
Equity Awards

Equity awards consist of service-based and market-based restricted stock awards and restricted stock units, stock options and stock purchase options under the Employee Stock Purchase Plan (ESPP). At March 31, 2017, we had approximately (1) 4.0 million shares available for issuance under our 2011 Omnibus Stock Plan, as amended (2011 Plan), if all future awards are stock options, or (2) 2.1 million shares available for issuance under our 2011 Plan if all future awards are restricted stock awards or restricted stock units.

Restricted Stock. The following table provides information about restricted stock awards and restricted stock unit activity.
 
 
Service-Based
Shares
 
Weighted- Average Grant Date Fair Value per Share
 
Market-Based
Shares(1)
 
Weighted- Average Grant Date Fair Value per Share
 
Total
Shares
 
 
(In thousands, except per share data)
Non-vested shares outstanding at January 1, 2017
 
1,574

 
$
35.56

 
859

 
$
26.28

 
2,433

Granted
 
268

 
39.56

 
323

 
50.22

 
591

Forfeited
 
(19
)
 
18.70

 
—

 
—

 
(19
)
Vested
 
(37
)
 
25.38

 
—

 
—

 
(37
)
Non-vested shares outstanding at March 31, 2017
 
1,786

 
$
36.41

 
1,182

 
$
32.81

 
2,968


________
(1)
In February 2017, we granted approximately 323,000 restricted stock units, which based on achievement of certain criteria, could vest within a range of 0% to 200% of shares granted upon completion of the period ending December 31, 2019.

Employee Stock Purchase Plan. During the first three months of 2017, options to purchase approximately 54,000 shares of our common stock were granted under our ESPP. The fair value of each option was $10.73 per share. The fair value of the options granted was determined using the Black-Scholes option valuation method assuming no dividends, a risk-free interest rate of 0.61%, an expected life of six months and weighted-average volatility of 40.2%.

Stock Options. As of March 31, 2017, we had approximately 177,000 stock options outstanding and exercisable. These outstanding stock options expire in January 2018. No stock options have been granted since 2008, except for ESPP options as discussed above.

Liability Awards

Liability awards consist of service-based awards that are settled in cash instead of shares, as discussed below.

Cash-Settled Restricted Stock Units. The value of the cash-settled restricted stock units, and the associated stock-based compensation expense, is based on the Company's stock price at the end of each period. As of March 31, 2017, we had a liability of $12 million for estimated future cash settlement upon vesting of awards. The following table provides information about cash-settled restricted stock unit activity.
 
 
Cash-Settled Restricted Stock Units
 
 
(In thousands)
Non-vested units outstanding at January 1, 2017
 
460

Granted
 
235

Forfeited
 
(12
)
Vested
 
(26
)
Non-vested units outstanding at March 31, 2017
 
657