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Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

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

STOCK-BASED COMPENSATION

For restricted stock awards and stock options, we had:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2019		2018		2019		2018
	(In millions)
Recognized stock compensation expense	$	4.5	$	4.1	$	13.0	$	13.6
Capitalized stock compensation cost for our oil and natural gas properties	0.7		0.6		2.0		1.6
Tax benefit on stock-based compensation	1.1		1.0		3.2		3.3

The remaining unrecognized compensation cost related to unvested awards at September 30, 2019 is approximately $18.9 million, of which $2.6 million is anticipated to be capitalized. The weighted average period over which this cost will be recognized is 0.8 of a year.

Our 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) and to non-employee directors. There are 7,230,000 shares of the company's common stock 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 stock options during either of the three or nine month periods ending September 30, 2019 or 2018. We did not grant any restricted stock awards during either of the three-month periods ending September 30, 2019 or 2018. This table shows the fair value of restricted stock awards granted to employees and non-employee directors during the periods indicated:


	Nine Months Ended									Nine Months Ended
	September 30, 2019									September 30, 2018
	Time Vested			Performance Vested			Time Vested			Performance Vested
Shares granted:
Employees	927,173			424,070			844,498			362,070
Non-employee directors	72,784			—			44,312			—
	999,957			424,070			888,810			362,070
Estimated fair value (in millions): ⁽¹⁾
Employees	$	14.6		$	7.1		$	16.2		$	7.3
Non-employee directors	0.9			—			0.9			—
	$	15.5		$	7.1		$	17.1		$	7.3
Percentage of shares granted expected to be distributed:
Employees	95		%	52		%	95		%	74		%
Non-employee directors	100		%	N/A			100		%	N/A

_______________________

1.The performance shares represent 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 nine months of 2019 and 2018 are being recognized over a three-year vesting period. During the first quarter of 2019 and 2018, two performance vested restricted stock awards were granted to certain executive officers. The first cliff vests three years from the grant date based on the company's achievement of certain stock performance measures (TSR) at the end of the term and will range from 0% to 200% of the restricted shares granted as performance shares. The second vests, one-third each year, over a three-year vesting period subject to the company's achievement of cash flow to total assets (CFTA) performance measurement each year and will range from 0% to 200%. Based on a probability assessment of the selected TSR performance criteria at September 30, 2019, the participants are estimated to receive 4% of the 2019 and 53% of the 2018 performance-based shares. We expense the CFTA performance award at target or 100%. The total aggregate stock compensation expense and capitalized cost related to oil and natural gas properties for 2019 awards for the first nine months of 2019 was $6.9 million.