Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

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

Stock-Based Compensation

STOCK-BASED COMPENSATION

For restricted stock awards and stock options, we had:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(In millions)
Recognized stock compensation expense	$	2.0	$	4.8	$	5.3	$	9.1
Capitalized stock compensation cost for our oil and natural gas properties	0.4		1.0		1.2		1.9
Tax benefit on stock based compensation	0.7		1.7		2.0		3.4

The remaining unrecognized compensation cost related to unvested awards at June 30, 2016 is approximately $10.9 million, of which $1.7 million is anticipated to be capitalized. The weighted average period of time over which this cost will be recognized is 0.7 of a year.

The Second Amended and Restated Unit Corporation Stock and Incentive Compensation Plan effective May 6, 2015 (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. A total of 4,500,000 shares of the company's common stock is authorized for issuance to eligible participants under the amended plan with 2,000,000 shares being the maximum number of shares that can be issued as "incentive stock options."

We did not grant any SARs or stock options during either of the three or six month periods ending June 30, 2016 and 2015. The following tables show the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated.

	Three Months Ended					Three Months Ended
	June 30, 2016					June 30, 2015
	Time Vested			Performance Vested		Time Vested			Performance Vested
Shares granted:
Employees	—			—		—			—
Non-employee directors	90,000			—		25,848			—
	90,000			—		25,848			—
Estimated fair value (in millions):(1)
Employees	$	—		$	—	$	—		$	—
Non-employee directors	0.9			—		0.9			—
	$	0.9		$	—	$	0.9		$	—
Percentage of shares granted expected to be distributed:
Employees	N/A			N/A		N/A			N/A
Non-employee directors	100		%	N/A		100		%	N/A

_______________________

(1) Represents 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)

	Six Months Ended						Six Months Ended
	June 30, 2016						June 30, 2015
	Time Vested			Performance Vested			Time Vested			Performance Vested
Shares granted:
Employees	486,578			152,373			576,361			148,081
Non-employee directors	90,000			—			25,848			—
	576,578			152,373			602,209			148,081
Estimated fair value (in millions):(1)
Employees	$	2.6		$	0.8		$	18.5		$	5.1
Non-employee directors	0.9			—			0.9			—
	$	3.5		$	0.8		$	19.4		$	5.1
Percentage of shares granted expected to be distributed:
Employees	94		%	70		%	94		%	3		%
Non-employee directors	100		%	N/A			100		%	N/A

_______________________

(1) Represents 100% of the grant date fair value. (We recognize the grant date fair value minus estimated forfeitures.)

The time vested restricted stock awards granted during the first six months of 2016 and 2015 are being recognized over a three year vesting period. During the first quarter of 2016, there were two different performance vested restricted stock awards granted to certain executive officers. The first will cliff vest three years from the grant date based on the company's achievement of certain stock performance measures at the end of the term and will range from 0% to 200% of the restricted shares granted as performance shares. The second will vest, one-third each year, over a three year vesting period based on the company's achievement of cash flow to total assets performance measurement each year and will range from 0% to 200%. The total aggregate stock compensation expense and capitalized cost related to oil and natural gas properties for 2016 awards for the first six months of 2016 was $0.7 million.