Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

For restricted stock awards and stock options, we had:



	Three Months Ended
	March 31,
	2015		2014
	(In millions)
Recognized stock compensation expense	$	4.3	$	3.8
Capitalized stock compensation cost for our oil and natural gas properties	0.9		0.8
Tax benefit on stock based compensation	1.7		1.5

The remaining unrecognized compensation cost related to unvested awards at March 31, 2015 is approximately $35.4 million, of which $5.7 million is anticipated to be capitalized. The weighted average period of time over which this cost will be recognized is one year.

The Unit Corporation Stock and Incentive Compensation Plan Amended and Restated May 2, 2012 (the amended plan) allows us to grant stock-based and cash-based compensation to our employees (including employees of subsidiaries) as well as to non-employee directors. As of the date of this report, a total of 3,300,000 shares of the company's common stock was authorized for issuance to eligible participants under the amended plan.

We did not grant any SARs or stock options during either of the three month periods ending March 31, 2015 and 2014. The following table shows the fair value of restricted stock awards granted to employees and non-employee directors during the first three months ended March 31, 2015 and 2014.



	Three Months Ended
	March 31,
	2015			2014
Shares granted:
Employees	724,442			438,342
Non employee directors	—			—
	724,442			438,342
Estimated fair value (in millions):
Employees	$	23.6		$	22.3
Non employee directors	—			—
	$	23.6		$	22.3
Percentage of shares granted expected to be distributed:
Employees	96		%	95		%
Non employee directors	N/A			N/A

The restricted stock awards granted during the first three months of 2015 and 2014 are being recognized over a three year vesting period, except for a portion of those awards made to certain executive officers. As to those executive officers, 50% of the shares granted, or 148,081 shares in 2015 and 40% of the share granted, or 71,674 shares in 2014, (the performance shares), will cliff vest in the first half of 2018 and 2017, respectively. The actual number of performance shares that vest in 2017 and 2018 will be based on the company’s achievement of certain stock performance measures at the end of the term, and will range from 0% to 150% of the restricted shares granted as performance shares. Based on the selected performance criteria, the participants are estimated to receive the targeted amount (or approximately 100%) of the 2015 and 2014 performance based shares. The total aggregate stock compensation expense and capitalized cost related to oil and natural gas properties for 2015 awards for the first three months of 2015 was $1.1 million.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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