Callon Petroleum Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Share-Based Compensation

Share-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

RSU Equity Awards

The following table summarizes activity for restricted stock units that may be settled in common stock (“RSU Equity Awards”) for the three months ended March 31, 2022:


	Three Months Ended March 31, 2022
	RSU Equity Awards (In thousands)	Weighted Average Grant-Date Fair Value Per Share
Unvested at beginning of the period	968	$34.04
Granted	328	$60.63
Vested	(10)	$53.38
Forfeited	(11)	$33.36
Unvested at end of the period	1,275	$40.73

Grant activity for the three months ended March 31, 2022 primarily consisted of RSU Equity Awards granted to executives and employees as part of the annual grant of long-term equity incentive awards with a weighted-average grant date fair value of $60.63.

The aggregate fair value of RSU Equity Awards that vested during the three months ended March 31, 2022 was $0.5 million. As of March 31, 2022, unrecognized compensation costs related to unvested RSU Equity Awards were $37.3 million and will be recognized over a weighted average period of 2.5 years.

Cash-Settled Awards

No restricted stock units that may be settled in cash (“Cash-Settled RSU Awards”) or cash-settled stock appreciation rights (“Cash SARs”) were granted to employees during the three months ended March 31, 2022 and 2021. The following table summarizes the Company’s liabilities for cash-settled awards and the classification in the consolidated balance sheets for the periods indicated:


	March 31, 2022	December 31, 2021
	(In thousands)
Cash SARs	$10,324	$7,884
Cash-Settled RSU Awards	4,563	1,382
Other current liabilities	14,887	9,266

Cash-Settled RSU Awards	1,972	6,366
Other long-term liabilities	1,972	6,366
Total Cash-Settled RSU Awards	$16,859	$15,632

Share-Based Compensation Expense (Benefit), Net

Share-based compensation expense associated with the RSU Equity Awards, Cash-Settled RSU Awards, and Cash SARs, net of amounts capitalized, is included in “General and administrative” in the consolidated statements of operations. The following table presents share-based compensation expense (benefit), net for each respective period:


	Three Months Ended March 31,
	2022	2021
	(In thousands)
RSU Equity Awards	$3,366	$2,608
Cash-Settled RSU Awards	237	4,442
Cash SARs	2,440	4,866
	6,043	11,916
Less: amounts capitalized to oil and gas properties	(1,877)	(4,308)
Total share-based compensation expense (benefit), net	$4,166	$7,608

See “Note 10 - Share-Based Compensation” of the Notes to Consolidated Financial Statements in the 2021 Annual Report for details of the Company’s equity-based incentive plans.