XML 32 R21.htm IDEA: XBRL DOCUMENT v3.23.1
Share-Based Compensation and Other Benefit Plans
 3 Months Ended
Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation and Other Benefit Plans
Note 13 – Share-Based Compensation and Other Benefit Plans
Share-Based Compensation
We reserved 4,424,600 shares of Class A Common Stock for issuance under the Ranger Oil Management Incentive Plan for share-based compensation awards. A total of 820,651 RSUs and 664,414 PRSUs have been granted to employees and directors through March 31, 2023.
We recognized expense attributable to the RSUs and PRSUs of $2.1 million and $0.9 million for the three months ended March 31, 2023 and 2022, respectively. We recognize share-based compensation expense as a component of general and administrative (“G&A”) expenses in our condensed consolidated statements of operations.
Time-Vested Restricted Stock Units
The table below summarizes activity for the three months ended March 31, 2023 with respect to awarded RSUs:
Time-Vested
Restricted Stock
Units		Weighted-Average
Grant Date
Fair Value
Balance at January 1, 2023
149,871 $17.51 
Granted9,078 $38.68 
Vested(43,015)$4.72 
Forfeited(1,176)$42.81 
Balance at March 31, 2023
114,758 $23.72 
Compensation expense for RSUs is recognized on a straight-line basis over the applicable vesting period, which is generally over a three-year period. As of March 31, 2023, we had $1.6 million of unrecognized compensation cost attributable to RSUs. We expect that cost to be recognized over a weighted-average period of 1.49 years.
Performance-Based Restricted Stock Units
The table below summarizes activity for the three months ended March 31, 2023 with respect to awarded PRSUs:
Performance Restricted Stock
Units		Weighted-Average
Grant Date
Fair Value
Balance at January 1, 2023
440,100 $29.87 
Granted— $— 
Vested— $— 
Forfeited(1,177)$58.87 
Balance at March 31, 2023
438,923 $29.87 
Compensation expense for PRSUs with a market condition is being amortized ratably over three years for the 2022 and 2021 grants. For the 2020 and 2019 grants, compensation expense for the PRSUs with a market condition were amortized on a graded-vesting basis. The applicable period for the amortization of compensation ranges from less than one year to three years. Compensation expense for PRSUs with a performance condition is recognized ratably over three years when it is considered probable that the performance condition will be achieved and such grants are expected to vest. PRSUs with a market condition do not allow for the reversal of previously recognized expense, even if the market condition is not achieved and no shares ultimately vest.
The 2022 and 2021 PRSU grants contain performance measures of which 50% are based on the Company’s return on average capital employed (“ROCE”) relative to a defined peer group and 50% are based on the Company’s absolute total shareholder return and total shareholder return (“TSR”) relative to a defined peer group over the three-year performance period. The 2022 and 2021 PRSUs cliff vest from 0% to 200% of the original grant at the end of a three-year performance period based on satisfaction of the respective underlying conditions.
PRSUs granted in 2020 and 2019 vested at 92% of the original grant based on TSR relative to a defined peer group over the three-year performance period. As TSR is deemed a market condition, the grant-date fair value for the 2019, 2020 and a portion of the 2021 and 2022 PRSU grants was derived by using a Monte Carlo model. The table below presents ranges for the assumptions used in the Monte Carlo model for the PRSUs granted in the following periods:
2022
2021 1
2020 1
2019
Expected volatility
134.98% to 138.75%
131.74% to 134.74%
101.32% to 117.71%
49.9 %
Dividend yield0.0 %0.0 %0.0 %0.0 %
Risk-free interest rate2.59 %
0.22% to 0.29%
0.18% to 0.51%
1.66 %
Performance period2022-20242021-20232020-20222020-2022
_______________________
1    One executive officer’s inducement award originally granted in August 2020 was amended in April 2021 to conform vesting conditions to other PRSU awards granted in 2021. The Monte Carlo assumptions for both years are included above.
As of March 31, 2023, we had $6.5 million of unrecognized compensation cost attributable to PRSUs. We expect that cost to be recognized over a weighted-average period of 1.49 years.
Other Benefit Plans
We maintain the Ranger Oil Corporation and Affiliated Companies Employees 401(k) Plan (the “401(k) Plan”), a defined contribution plan, which covers substantially all of our employees. We recognized expense attributable to the 401(k) Plan of $0.3 million for the three months ended March 31, 2023 and $0.2 million for the three months ended March 31, 2022. The charges for the 401(k) Plan are included as a component of G&A expenses in our condensed consolidated statements of operations.
We maintain unqualified legacy defined benefit pension and defined benefit postretirement plans that cover a limited number of former employees that retired prior to January 1, 2000. The combined expense recognized with respect to these plans was less than $0.1 million for each of the three months ended March 31, 2023 and 2022, and is included as a component of Other, net in our condensed consolidated statements of operations.