Equity-Based Compensation and Cash Awards (Tables)

3 Months Ended

Mar. 31, 2023

Equity-Based Compensation and Cash Awards

Schedule of equity-based compensation expense

The Company’s equity-based compensation expense, by type of award, is as follows (in thousands):


	Three Months Ended March 31,
	2022		2023
RSU awards	$	2,720		7,262
PSU awards		1,419		5,405
Converted AM RSU Awards ⁽¹⁾		160		1
Equity awards issued to directors		350		350
Total expense	$	4,649		13,018

(1)

Antero Resources recognized compensation expense for equity awards granted under both the 2013 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 March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. As of March 31, 2023, all Converted AM RSU Awards were fully vested, and there is no remaining unamortized expense attributable to these awards.

Summary of RSU award activity


		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Total awarded and unvested—December 31, 2022	4,676,219	$	15.29
Granted	1,425,619		25.98
Vested	(892,595)		3.20
Forfeited	(58,898)		22.46
Total awarded and unvested—March 31, 2023	5,150,345	$	20.27

Schedule of weighted average fair value assumptions used for PSUs granted


Dividend yield		—	%
Volatility		82	%
Risk-free interest rate		4.61	%
Weighted average fair value of awards granted—Absolute TSR	$	33.96

Summary of PSU award activity


		Weighted
	Number of	Average Grant
	Units	Date Fair Value
Total awarded and unvested—December 31, 2022	1,329,725	$	23.18
Granted	417,466		28.51
Vested	—		—
Total awarded and unvested—March 31, 2023	1,747,191	$	24.45

Schedule of Converted AM RSU Awards


		Weighted
		Average
	Number of	Grant Date
	Units	Fair Value
Total awarded and unvested—December 31, 2022	2,827	$	12.38
Vested	(2,827)		12.38
Total awarded and unvested—March 31, 2023	—	$	—