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Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2013
Share-based Compensation Plans

The Company’s share-based compensation plans at December 31, 2013 follow:

 

Plan Name

    Shares
Authorized
for Grant		      Awards
Outstanding		      Shares
Available
for Grant		  

Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan, as amended

      15,250,000         8,026,643         274,071   

Patterson-UTI Energy, Inc. Amended and Restated 1997 Long-Term Incentive Plan, as amended (“1997 Plan”)

      —         810,000         —   
Weighted-Average Assumptions Used to Estimate Grant Date Fair Values for Stock Options Granted

Weighted-average assumptions used to estimate grant date fair values for stock options granted in the years ended December 31, 2013, 2012 and 2011 follow:

 

     2013     2012     2011  

Volatility

      41.36 %      48.79 %      45.97 % 

Expected term (in years)

      5.00        5.00        5.00   

Dividend yield

      0.89 %      1.21 %      0.67 % 

Risk-free interest rate

      0.70 %      0.87 %      2.34 % 
Stock Option Activity

Stock option activity for the year ended December 31, 2013 follows:

 

     Shares     Weighted-average
exercise price		  

Outstanding at beginning of year

      7,827,195      $ 20.35   

Granted

      692,500      $ 22.51   

Exercised

      (1,190,000 )    $ 16.21   

Cancelled

      (10,000 )    $ 18.63   

Expired

      —        —   
  

 

 

    

Outstanding at end of year

      7,319,695      $ 21.23   
  

 

 

    

Exercisable at end of year

      6,250,860      $ 21.29   
  

 

 

    
Additional Information with Respect to Options Granted, Vested and Exercised

Additional information with respect to options granted, vested and exercised during the years ended December 31, 2013, 2012 and 2011 follows:

 

     2013      2012      2011  

Weighted-average grant date fair value of stock options granted (per share)

    $ 7.59       $ 6.37       $ 12.24   

Aggregate grant date fair value of stock options vested during the year (in thousands)

    $ 5,240       $ 5,512       $ 5,639   

Aggregate intrinsic value of stock options exercised (in thousands)

    $ 8,683       $ 138       $ 12,663   
Restricted Stock Activity

Restricted stock activity for the year ended December 31, 2013 follows:

 

     Shares     Weighted-
average Grant
Date Fair Value		  

Non-vested restricted stock outstanding at beginning of year

      1,279,146      $ 20.03   

Granted

      954,750      $ 21.66   

Vested

      (653,636 )    $ 20.56   

Forfeited

      (83,568 )    $ 20.04   
  

 

 

    

Non-vested restricted stock outstanding at end of year

      1,496,692      $ 20.84   
  

 

 

    
Restricted Stock Unit Activity

Restricted stock unit activity for the year ended December 31, 2013 follows:

 

     Shares     Weighted-
average
Grant Date
Fair Value		  

Non-vested restricted stock units outstanding at beginning of year

      17,670      $ 20.08   

Granted

      11,250      $ 21.09   

Vested

      (8,664 )    $ 20.01   

Forfeited

      —        —   
  

 

 

    

Non-vested restricted stock units outstanding at end of year

      20,256      $ 20.67   
  

 

 

    
Stock-Settled Performance Units

The total target number of shares with respect to the Stock-Settled Performance Units is set forth below:

 

     2013
Performance
Unit Awards		      2012
Performance
Unit Awards		      2011
Performance
Unit Awards		      2010
Performance
Unit Awards		  

Target number of shares

      236,500         192,000         144,375         178,750   
Fair Value of Stock-Settled Performance Units

The fair value of the Stock-Settled Performance Units is set forth below (in thousands):

 

     2013
Performance
Unit Awards		      2012
Performance
Unit Awards		      2011
Performance
Unit Awards		      2010
Performance
Unit Awards		  

Aggregate fair value at date of grant

    $ 5,564       $ 3,065       $ 5,569       $ 3,117   
Compensation Expense Associated with Stock-Settled Performance Units

Compensation expense associated with the Stock-Settled Performance Units is set forth below (in thousands):

 

     2013
Performance
Unit Awards		      2012
Performance
Unit Awards		      2011
Performance
Unit Awards		      2010
Performance
Unit Awards		  

Year ended December 31, 2013

    $ 1,391       $ 1,022       $ 1,856       $ 260   

Year ended December 31, 2012

      NA         766       $ 1,856       $ 1,039   

Year ended December 31, 2011

      NA         NA       $ 1,392       $ 1,039   
Employee Stock Option
  
Additional Information with Respect to Non-vested Shares

Additional information as of December 31, 2013 with respect to these non-vested options follows:

 

Aggregate intrinsic value

    $5.0 million

Weighted-average remaining contractual term

    8.90 years

Weighted-average remaining expected term

    3.90 years

Weighted-average remaining vesting period

    1.81 years

Unrecognized compensation cost

    $6.3 million
Restricted Stock Awards
  
Additional Information with Respect to Non-vested Shares

Additional information as of December 31, 2013 with respect to these non-vested shares follows:

 

Aggregate intrinsic value

    $35.5 million

Weighted-average remaining vesting period

    1.94 years

Unrecognized compensation cost

    $22.5 million