Employee compensation (Tables)
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3 Months Ended |
Mar. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
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Schedule of restricted stock award activity |
The following table reflects the restricted stock award activity for the three months ended March 31, 2017: | | | | | | | | | (in thousands, except for weighted-average grant date fair values) | | Restricted stock awards | | Weighted-average grant date fair value (per award) | Outstanding as of December 31, 2016 | | 3,878 |
| | $ | 12.88 |
| Granted | | 1,082 |
| | $ | 14.12 |
| Forfeited | | (97 | ) | | $ | 12.76 |
| Vested(1) | | (1,473 | ) | | $ | 13.80 |
| Outstanding as of March 31, 2017 | | 3,390 |
| | $ | 12.88 |
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_____________________________________________________________________________ | | (1) | The total intrinsic value of vested restricted stock awards for the three months ended March 31, 2017 was $20.7 million. |
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Schedule of stock option award activity |
The following table reflects the stock option award activity for the three months ended March 31, 2017: | | | | | | | | | | | (in thousands, except for weighted-average price and weighted- average remaining contractual term) | | Stock option awards | | Weighted-average price (per option) | | Weighted-average remaining contractual term (years) | Outstanding as of December 31, 2016 | | 2,370 |
| | $ | 12.54 |
| | 7.71 | Granted | | 391 |
| | $ | 14.12 |
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| Exercised(1) | | (44 | ) | | $ | 8.17 |
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| Expired or canceled | | (13 | ) | | $ | 21.92 |
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| Outstanding as of March 31, 2017 | | 2,704 |
| | $ | 12.79 |
| | 7.84 | Vested and exercisable at end of period(2) | | 1,312 |
| | $ | 16.54 |
| | 6.68 | Expected to vest at end of period(3) | | 1,392 |
| | $ | 9.24 |
| | 8.92 |
_____________________________________________________________________________ | | (1) | The total intrinsic value of exercised stock option awards for the three months ended March 31, 2017 was $0.3 million. |
| | (2) | The vested and exercisable stock option awards as of March 31, 2017 had an aggregate intrinsic value of $2.7 million. |
| | (3) | The stock option awards expected to vest as of March 31, 2017 had an aggregate intrinsic value of $8.1 million. |
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
The assumptions used to estimate the fair value of the 390,733 stock option awards granted during three months ended March 31, 2017 are as follows: | | | | | | | | February 17, 2017 | Risk-free interest rate(1) | | 2.14 | % | Expected option life(2) | | 6.25 years |
| Expected volatility(3) | | 60.84 | % | Fair value per stock option award | | $ | 8.22 |
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____________________________________________________________________________ | | (1) | U.S. Treasury yields as of the grant date were utilized for the risk-free interest rate assumption, correlating the treasury yield terms to the expected life of the stock option award. |
| | (2) | As the Company had limited exercise history at the time of valuation relating to terminations and modifications, expected stock option award life assumptions were developed using the simplified method in accordance with GAAP. |
| | (3) | The Company utilized its own volatility in order to develop the expected volatility. |
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Schedule Of Share Based Compensation Vesting Rights Options |
In accordance with the LTIP and stock option agreement, the stock option awards 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 | % |
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Schedule Share-based Compensation, Performance Shares Award Unvested Activity |
The following table reflects the performance share award activity for the three months ended March 31, 2017: | | | | | | | | | (in thousands, except for weighted-average grant date fair values) | | Performance share awards | | Weighted-average grant date fair value (per award) | Outstanding as of December 31, 2016 | | 2,325 |
| | $ | 18.35 |
| Granted | | 696 |
| | $ | 18.96 |
| Forfeited | | (16 | ) | | $ | 18.02 |
| Vested(1) | | (200 | ) | | $ | 28.56 |
| Outstanding as of March 31, 2017 | | 2,805 |
| | $ | 17.77 |
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______________________________________________________________________________ | | (1) | These performance share awards had a performance period of January 1, 2014 to December 31, 2016 (the "2014 Performance Share Awards") and, as their vesting and performance criteria were satisfied, each award converted into 0.75 shares representing 150,388 shares of common stock issued during the first quarter of 2017. |
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Schedule of stock-based compensation expense |
The following has been recorded to stock-based compensation expense for the periods presented: | | | | | | | | | | | | Three months ended March 31, | (in thousands) | | 2017 | | 2016 | Restricted stock award compensation | | $ | 6,167 |
| | $ | 3,768 |
| Stock option award compensation | | 1,297 |
| | 624 |
| Performance share award compensation | | 3,740 |
| | 228 |
| Total stock-based compensation, gross | | 11,204 |
| | 4,620 |
| Less amounts capitalized in oil and natural gas properties | | (1,980 | ) | | (782 | ) | Total stock-based compensation, net of amounts capitalized | | $ | 9,224 |
| | $ | 3,838 |
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Performance Share Awards |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] |
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Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions |
The assumptions used to estimate the fair values of the 696,460 performance share awards granted during the three months ended March 31, 2017 are as follows: | | | | | | | | February 17, 2017 | Risk-free rate(1) | | 1.44 | % | Dividend yield | | — | % | Expected volatility(2) | | 74.00 | % | Laredo stock closing price on grant date | | $ | 14.12 |
| Fair value per performance share | | $ | 18.96 |
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______________________________________________________________________________ | | (1) | The risk-free rate was derived using a term-matched zero-coupon yield derived from the U.S. Treasury constant maturities yield curve on the grant date. |
| | (2) | The Company utilized its own volatility in order to develop the expected volatility. |
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