Equity-Based Compensation and Cash Awards (Tables)

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2022		2023		2022		2023
RSU awards	$	4,774		8,720		7,494		15,982
PSU awards		3,012		4,442		4,431		9,847
Converted AM RSU Awards (1)		35		—		195		1
Equity awards issued to directors		350		350		700		700
Total expense	$	8,171		13,512		12,820		26,530

(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 June 30, 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	1,458,594		25.87
Vested	(2,202,895)		9.02
Forfeited	(69,321)		22.57
Total awarded and unvested—June 30, 2023	3,862,597	$	22.74

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
		Average
	Number of	Grant Date
	Units	Fair Value
Total awarded and unvested—December 31, 2022	1,329,725	$	23.18
Granted	417,466		28.51
Vested (1)	(335,000)		2.97
Total awarded and unvested—June 30, 2023	1,412,191	$	29.54

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—June 30, 2023	—	$	—