Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Equity-Based Compensation

Schedule of equity-based compensation expense

The Company’s equity-based compensation expense, by type of award, was as follows for the years ended December 31, 2017, 2018 and 2019 (in thousands):

	Year ended December 31,
	2017		2018		2019
Restricted stock unit awards	$	70,866		41,505		10,343
Stock options		2,375		1,799		355
Performance share unit awards		10,797		9,659		8,069
Antero Midstream Partners phantom unit awards (1)		17,461		15,351		3,425
Equity awards issued to directors		1,946		2,100		1,367
Total expense	$	103,445		70,414		23,559

(1) Antero Resources recognized compensation expense for equity awards granted under both the Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to the Transactions to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero Resources; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Midstream Partners is no longer reflected in Antero Resources’ consolidated financial statements. See Note 3 to the consolidated financial statements for further discussion on the Transactions.

Summary of restricted stock and restricted stock unit awards activity

		Weighted		Aggregate
	Number of	grant date		intrinsic value
	shares	fair value		(in thousands)
Total awarded and unvested—December 31, 2018	1,712,485	$	24.57	$	16,080
Granted	1,745,784	$	8.14
Vested	(730,343)	$	27.60
Forfeited	(357,351)	$	16.09
Total awarded and unvested—December 31, 2019	2,370,575	$	12.81	$	6,756

Summary of stock option activity

				Weighted
		average		remaining	Intrinsic
	Stock	exercise		contractual	value
	options	price		life	(in thousands)
Outstanding at December 31, 2018	579,617	$	50.55	5.81	$	—
Granted	—	$	—
Exercised	—	$	—
Forfeited	(4,250)	$	50.18
Expired/Cancelled	(107,734)	$	—
Outstanding at December 31, 2019	467,633	$	50.64	5.05	$	—
Vested or expected to vest as of December 31, 2019	467,633	$	50.64	5.05	$	—
Exercisable at December 31, 2019	467,633	$	50.64	5.05	$	—

Summary of Performance Stock Unit activity

A summary of PSU activity for the year ended December 31, 2019 is as follows:

		Weighted average
	Number of	grant date
	units	fair value
Total awarded and unvested—December 31, 2018	1,767,299	$	26.36
Granted	1,416,378	$	9.26
Exercised	(31,944)	$	27.38
Cancelled - Unearned	(326,938)	$	32.97
Forfeited	(287,512)	$	19.38
Total awarded and unvested—December 31, 2019	2,537,283	$	16.74

Schedule of weighted average fair value assumptions used for PSUs granted

	Year ended December 31,
	2018			2019
Dividend yield		—	%		—	%
Volatility		41	%		36	%
Risk-free interest rate		2.49	%		2.35	%
Weighted average fair value of awards granted	$	24.85		$	9.26

Schedule of outstanding unvested restricted stock awards vesting schedule

		Weighted		Aggregate
	Number of	average grant		intrinsic value
	units	date fair value		(in thousands)
Total awarded and unvested—December 31, 2018	583,000	$	27.63	$	12,470
Granted	5,972	$	23.44
Vested	(3,853)	$	32.44
Forfeited	(20,338)	$	26.73
AMP Plan Units awarded and unvested—March 12, 2019	564,781	$	27.59	$	13,476
Effect of conversion (1)	504,119	$	14.58
Vested	(362,191)	$	14.35
Forfeited	(48,952)	$	14.51
Total awarded and unvested—December 31, 2019	657,757	$	14.71	$	4,992

(1)Effective March 12, 2019, all outstanding phantom units under the AMP Plan were assumed by Antero Midstream Corporation and converted into restricted stock units under the AMC Plan.