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Employee compensation (Tables)
 6 Months Ended
Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of outstanding restricted stock awards
The following table reflects the outstanding restricted stock awards for the six months ended June 30, 2014:
(in thousands, except for weighted-average grant date fair values)
 
Restricted
stock
awards
 
Weighted-average
grant date
fair value (per award)
Outstanding at December 31, 2013
 
1,799

 
$
19.17

Granted
 
1,161

 
$
25.75

Forfeited
 
(50
)
 
$
22.62

Vested(1)
 
(527
)
 
$
17.70

Outstanding at June 30, 2014
 
2,383

 
$
22.64

______________________________________________________________________________
(1)
The vesting of certain restricted stock awards could result in federal and state income tax expense or benefits related to the difference between the market price of the common stock at the date of vesting and the date of grant. For the three and six months ended June 30, 2014, the Company's recognized income tax expense related to the vesting of restricted stock awards was immaterial. The Company recognized income tax expense of $0.1 million and $0.4 million during the three and six months ended June 30, 2013, respectively, related to restricted stock awards, which were recorded as adjustments to deferred income taxes.
Schedule of stock option award activity
The following table reflects the stock option award activity for the six months ended June 30, 2014:
(in thousands, except for weighted-average exercise price and contractual term)
 
Restricted
stock option
awards
 
Weighted-average
exercise price
(per option)
 
Weighted-average
remaining contractual term
(years)
Outstanding at December 31, 2013
 
1,229

 
$
19.32

 
8.82

Granted
 
336

 
$
25.60

 
9.66

Exercised(1)
 
(91
)
 
$
20.02

 
8.22

Expired or canceled
 
—

 
$
—

 
—

Forfeited
 
(13
)
 
$
19.61

 
—

Outstanding at June 30, 2014
 
1,461

 
$
20.72

 
8.64

Vested and exercisable at end of period(2)
 
355

 
$
20.35

 
8.17

Vested, exercisable, and expected to vest at end of period(3)
 
1,428

 
$
20.71

 
8.64

_____________________________________________________________________________
(1)
The exercise of stock option awards could result in federal and state income tax expense or benefits related to the difference between the fair value of the stock option at the date of grant and the intrinsic value of the stock option when exercised. The Company recognized income tax expense of $0.1 million and $0.2 million during the three and six months ended June 30, 2014, respectively, related to stock options, which were recorded as adjustments to deferred income taxes. No stock options were exercised during the three and six months ended June 30, 2013.
(2)
The aggregate intrinsic value of vested and exercisable options at June 30, 2014 was $3.8 million.
(3)
The aggregate intrinsic value of vested, exercisable and expected to vest options at June 30, 2014 was $14.7 million.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]
The assumptions used to estimate the fair value of restricted stock options granted on February 27, 2014 are as follows:
Risk-free interest rate(1)
1.88
%
Expected option life(2)
6.25 years

Expected volatility(3)
53.21
%
Fair value per stock option
$
13.41

______________________________________________________________________________
(1)
U.S. Treasury yields as of the grant date were utilized for the risk-free interest rate assumption, matching the treasury yield terms to the expected life of the option.
(2)
As the Company had limited exercise history at the time of valuation relating to terminations and modifications, expected option life assumptions were developed using the simplified method in accordance with GAAP.
(3)
The Company utilized a peer historical look-back, which was weighted with the Company’s own volatility, in order to develop the expected volatility.
Share Based Compensation Schedule Of Vesting Rights Options
In accordance with the LTIP and stock option agreement, the options granted will become exercisable in accordance with the following schedule based upon the number of full years of the optionee's continuous employment or service with the Company, following the date of grant:
Full years of continuous employment
 
Incremental percentage of
option exercisable
 
Cumulative percentage of
option exercisable
Less than one
 
—
%
 
—
%
One
 
25
%
 
25
%
Two
 
25
%
 
50
%
Three
 
25
%
 
75
%
Four
 
25
%
 
100
%
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]
The following has been recorded to stock-based compensation expense for the periods presented:
 
 
Three months ended June 30,

Six months ended June 30,
(in thousands)
 
2014

2013

2014

2013
Restricted stock award compensation
 
$
6,010

 
$
3,572

 
$
10,242

 
$
6,398

Restricted stock option award compensation
 
1,010

 
891

 
1,805


1,282

Restricted performance share unit award compensation
 
625

 
—

 
845


—

Total stock-based compensation
 
7,645

 
4,463

 
12,892


7,680

Less amounts capitalized in oil and natural gas properties
 
(1,249
)
 
—

 
(2,167
)

—

Net stock-based compensation expense
 
$
6,396

 
$
4,463

 
$
10,725


$
7,680
Performance Shares
  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of assumptions used to estimate the fair value of options granted
The assumptions used to estimate the fair value of the Performance Share Awards are as follows:
Risk-free rate(1)
 
0.63
%
Dividend yield
 
—
%
Expected volatility(2)
 
38.21
%
Laredo stock closing price as of February 27, 2014
 
$
25.60

Fair value per performance share
 
$
28.56

______________________________________________________________________________
(1)
The risk-free rate was derived using a zero-coupon yield derived from the Treasury Constant Maturities yield curve on the grant date.
(2)
The Company utilized a peer historical look-back, weighted with the Company's own volatility, to develop the expected volatility.