XML 66 R40.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Allocation of Stock-Based Compensation by Functional Category

Stock-based compensation represents amortization of restricted stock, restricted stock units and SARs expense. The following table details the amount of stock-based compensation that is allocated to functional expense categories (in thousands):

 

 

2013

 

  

2012

 

  

2011

 

Operating expense

$

2,755

  

  

$

2,415

  

  

$

1,987

  

Brokered natural gas and marketing expense

 

1,852

 

  

 

1,765

 

  

 

1,455

 

Exploration expense

 

4,025

 

  

 

4,049

 

  

 

4,108

 

General and administrative expense

 

55,737

  

  

 

44,541

 

  

 

36,244

 

Total

$

64,369

  

  

$

52,770

  

  

$

43,794

  

 
Stock Option and SARs Activities

We have two active equity-based stock plans, the 2005 Plan and the Director Plan. Under these plans, incentive and non-qualified stock options, stock appreciation rights, restricted stock units and various other awards may be issued to directors and employees pursuant to decisions of the compensation committee, which is made up of non-employee, independent directors from the board of directors. All awards granted under these plans have been issued at prevailing market prices at the time of the grant. Of the 2.6 million grants outstanding at December 31, 2013, all grants relate to SARs. Information with respect to stock option and SARs activities is summarized below.

 

 

Shares

 

 

Weighted
Average
Exercise Price

 

Outstanding at December 31, 2010

 

6,461,839

  

 

$

37.20

  

Granted

 

843,485

  

 

 

51.17

  

Exercised

 

(2,511,989

) 

 

 

32.69

  

Expired/forfeited

 

(234,726

) 

 

 

52.65

  

Outstanding at December 31, 2011

 

4,558,609

  

 

 

41.47

  

Granted

 

754,471

  

 

 

64.14

  

Exercised

 

(1,860,367

) 

 

 

30.20

  

Expired/forfeited

 

(19,351

) 

 

 

48.00

  

Outstanding at December 31, 2012

 

3,433,362

  

 

 

52.52

  

Granted

 

470,617

 

 

 

75.82

 

Exercised

 

(1,269,323

) 

 

 

53.24

 

Expired/forfeited

 

(52,582

)  

 

 

53.56

  

Outstanding at December 31, 2013

 

2,582,074

  

 

$

56.36

  

 
Outstanding Stock Options and SARs

The following table shows information with respect to stock options and SARs outstanding and exercisable at December 31, 2013:

 

 

 

Outstanding

 

 

Exercisable

 

Range of Exercise Prices

 

Shares

 

 

Weighted
Average
Remaining Contractual Life (in years)

 

 

Weighted Average Exercise Price

 

 

Shares

 

 

Weighted Average Exercise Price

 

$ 31.13–$ 39.99

 

 

44,980

  

 

 

0.24

  

 

 $

34.48

  

 

 

44,980

  

 

 $

34.48

  

40.00–49.99

 

 

1,007,979

  

 

 

1.10

  

 

 

44.82

  

 

 

917,558

  

 

 

44.39

  

50.00–59.99

 

 

404,799

  

 

 

2.38

  

 

 

52.35

  

 

 

227,838

  

 

 

52.35

  

60.00–69.99

 

 

657,040

  

 

 

3.34

  

 

 

64.17

  

 

 

208,043

  

 

 

64.22

  

70.00–79.99

 

 

466,480

 

 

 

4.33

 

 

 

75.85

 

 

 

22,141

 

 

 

77.26

 

80.00–80.34

 

 

796

  

 

 

4.25

  

 

 

80.34

  

 

 

796

  

 

 

80.34

  

Total

 

 

2,582,074

  

 

 

2.44

  

 

$

56.36

  

 

 

1,421,356

  

 

$

48.79

  

 
Weighted Average Grant Date Fair Value of SARs

During 2013, 2012 and 2011, we granted SARs to officers, non-officer employees and directors. The weighted average grant date fair value of these SARs, based on our Black-Scholes-Merton assumptions, is shown below:

 

 

2013

 

  

2012

 

 

2011

 

Weighted average exercise price per share

$

75.82

  

  

$

64.14

  

 

$

51.17

  

Expected annual dividends per share

 

0.21

% 

  

 

0.25

% 

 

 

0.31

% 

Expected life in years

 

3.7

 

  

 

3.7

  

 

 

3.7

  

Expected volatility

 

35

% 

  

 

45

% 

 

 

47

% 

Risk-free interest rate

 

0.6

%

  

 

0.5

% 

 

 

1.4

% 

Weighted average grant date fair value

 $

20.20

 

  

$

21.32

  

 

$

18.22

  

 
Restricted Stock and Restricted Stock Units Outstanding

A summary of the status of our non-vested restricted stock outstanding at December 31, 2013 is summarized below:

 

 

Equity Awards

 

  

Liability Awards

 

 

Shares

 

 

Weighted
Average Grant
Date Fair Value

 

  

Shares

 

 

Weighted
Average Grant
Date Fair Value

 

Outstanding at December 31, 2010

 

—

  

 

$

—

  

  

 

582,751

  

 

$

44.81

  

Granted

 

331,209

  

 

 

49.56

  

  

 

352,419

  

 

 

51.17

  

Vested

 

(88,854

) 

 

 

49.37

  

  

 

(418,634

) 

 

 

45.55

  

Forfeited

 

(20,746

) 

 

 

49.45

  

  

 

(29,292

) 

 

 

45.04

  

Outstanding at December 31, 2011

 

221,609

  

 

 

49.64

  

  

 

487,244

  

 

 

48.76

  

Granted

 

364,082

  

 

 

63.44

  

  

 

380,808

  

 

 

64.06

  

Vested

 

(208,802

) 

 

 

56.73

  

  

 

(438,283

) 

 

 

52.17

  

Forfeited

 

(27,733

) 

 

 

58.65

  

  

 

(6,291

) 

 

 

54.54

  

Outstanding at December 31, 2012

 

349,156

  

 

 

59.08

  

  

 

423,478

  

 

 

58.91

  

Granted

 

402,053

 

 

 

71.26

 

  

 

424,809

 

 

 

75.53

 

Vested

 

(315,535

) 

 

 

62.43

 

  

 

(437,570

) 

 

 

64.36

 

Forfeited

 

(50,611

) 

 

 

65.29

  

  

 

(21,704

)  

 

 

57.31

  

Outstanding at December 31, 2013

 

385,063

 

 

$

68.24

 

 

 

389,013

 

 

$

71.02