Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

On the Effective Date, the Board adopted the Unit Corporation Long Term Incentive Plan (LTIP) to incentivize employees, officers, directors and other service providers of the company and its affiliates. The LTIP provides for the grant, from time to time, at the discretion of the Board or a committee thereof, of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, cash awards, performance awards, substitute awards or any combination of the foregoing. Subject to adjustment in the event of certain transactions or changes of capitalization in accordance with the LTIP, 903,226 shares of new common stock of the reorganized company (New Common Stock) have been reserved for issuance pursuant to awards under the LTIP. New Common Stock subject to an award that expires or is canceled, forfeited, exchanged, settled in cash, or otherwise terminated without delivery of shares and shares withheld to pay the exercise price of, or to satisfy the withholding obligations with respect to, an award will again be available for delivery pursuant to other awards under the LTIP. The LTIP will be administered by the Board or a committee thereof.

On April 27, 2021, 109,008 aggregate restricted stock units (RSUs) were granted to the members of the Board pursuant to the LTIP with a weighted-average grant date fair value of $12.90 per unit. The RSUs will 25% vest on each of the following dates: the date that is thirteen months following the date of grant, September 3, 2022, September 3, 2023, and September 3, 2024. The fair value of these grants is measured based on the closing stock price on grant date and compensation expense recognized in general and administrative on the unaudited condensed consolidated statements of operations over the vesting period. There were no other grants made during the nine months ended September 30, 2021.

No stock options or restricted stock units were granted during the two or eight months ended August 31, 2020, or during the one month ended September 30, 2020.

Also on the Effective Date, the company's equity-based awards outstanding immediately before the Effective Date were cancelled. The cancellation of the awards resulted in an acceleration of unrecorded stock compensation expense during the Predecessor Period. Under the Plan, the company issued Warrants to holders of those equity-based awards that were outstanding immediately before the Effective Date who did not opt out of releases under the Plan.

There were no outstanding restricted stock awards or stock options during the one month ended September 30, 2020. For the other periods, we had:


	Successor		Predecessor		Successor		Predecessor
	Three Months Ended September 30, 2021		Two Months Ended August 31, 2020		Nine Months Ended September 30, 2021		Eight Months Ended August 31, 2020
	(In millions)
Recognized stock compensation expense	$	(0.1)	$	2.0	$	0.1	$	6.1

Tax benefit on stock-based compensation	—		$	0.5	—		$	1.5