Annual report pursuant to Section 13 and 15(d)

Share-Based Compensation

v2.4.0.6
Share-Based Compensation
12 Months Ended
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Share-Based Compensation

As discussed in Note 9, “Employee Benefit Plans,” the Company has various stock plans (“Plans”) under which employees of the Company and its subsidiaries and non-employee members of the Board of Directors of the Company have been or may be granted certain share-based compensation.  Shares available for future stock option or restricted stock grants to employees and directors under existing plans were 2,349 at December 31, 2011.  The Company recorded non-cash share-based compensation expense of $4,393, $5,701 and $4,821 during the years ended December 31, 2011, 2010 and 2009, respectively.  The portion of this non-cash share-based compensation expense that was included in general and administrative expense totaled $2,502, $3,107 and $2,335 for the same years respectively, and the portion capitalized to oil and gas properties was $1,891, $2,594 and $2,486, respectively.  Non-cash share-based compensation included:

 
For the year ended December 31,
Non-cash compensation expense for:
2011
 
2010
 
2009
Options
$
24

 
$
206

 
$
144

RSUs
2,832

 
3,898

 
4,302

Share-based units
1,335

 
1,396

 
182

401(k) contributions in shares
202

 
201

 
193

Total non-cash compensation expense
$
4,393

 
$
5,701

 
$
4,821


The following table presents unrecognized compensation expense expected to be recognized in future periods:
 
 As of December 31,
Unrecognized compensation costs related to:
2011
 
2010
 
2009
Unvested options
 
 
$

 
 
 
$
57

 
 
 
$
649

Unvested RSUs
 
 
5,748

 
 
 
3,353

 
 
 
3,201

Unvested share-based units
 
 
2,498

 
 
 
2,676

 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Future share-based compensation expense expected to be recognized for:
 
 
2012
 
2013
 
2014
 
Thereafter
 
Total
Options
 
 
$

 
$

 
$

 
$

 
$

RSUs
 
 
2,913

 
2,129

 
706

 

 
5,748

Stock appreciation rights
 
 
1,752

 
711

 
35

 

 
2,498


Liability-based restricted stock unit awards accounted are recorded on the Company’s consolidated balance sheet at December 31, 2011, 2010 and 2009 as a component of accounts payable and accrued liabilities for $604, $0 and $0, respectively, and as a component of other long-term liabilities for $2,309, $1,578 and $182, respectively.  This liability is marked to fair value each reporting period with changes in the fair value recognized in compensation expense.

Stock Options

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock option awards with the following weighted-average assumptions for the indicated periods.  There were no stock options issued during either 2011 or 2010.

 
For the year ended December 31,
 
2011
 
2010
 
2009
Dividend yield
n/a
 
n/a
 
Expected volatility
n/a
 
n/a
 
1.36
Risk-free interest rate
n/a
 
n/a
 
0.039
Expected life of option (in years)
n/a
 
n/a
 
9
Weighted-average grant-date fair value
n/a
 
 n/a
 
1.23
Forfeiture rate
n/a
 
n/a
 

The assumptions above are based on multiple factors, including historical exercise patterns of employees with respect to exercise and post-vesting employment termination behaviors, expected future exercising patterns and the historical volatility of the Company’s stock price.  The following table represents stock option activity:

 
For the year-ended December 31,
 
2011
 
2010
 
2009
 
Shares
 
Wtd Avg Ex Price per Option
 
Shares
 
Wtd Avg Ex Price per Option
 
Shares
 
Wtd Avg Ex Price per Option
Outstanding, beginning of year
198

 
$
9.57

 
978

 
$
6.37

 
513

 
$
10.27

Granted (at market)

 

 

 

 
500.00

 
2.76

Exercised

 

 
(168
)
 
2.77

 

 

Forfeited
(15
)
 
18.69

 
(334
)
 
2.78

 
(15
)
 
14.44

Expired
(10
)
 
11.61

 
(278
)
 
10.61

 
(20.00
)
 
9.99

Outstanding, end of year
173

 
$
8.66

 
198

 
$
9.57

 
978

 
$
6.37

Exercisable, end of year
173

 
$
8.66

 
184

 
$
8.99

 
465

 
$
9.93

Weighted-average remaining contract life per unit:
 

 
 

 
 

 
 

 
 

 
 

Outstanding options at end of period in years
2.0

 
 
 
3.1

 
 
 
5.8

 
 

Outstanding exercisable at end of period in years
2.0

 
 
 
2.9

 
 
 
1.8

 
 


 
As of December 31,
 
2011
 
2010
 
2009
Aggregate intrinsic value of options outstanding & exercisable
$

 
$

 

Aggregate intrinsic value of options exercised during the year

 
175

 

Fair value of shares vesting during the year

 
207

 
58


There were no stock option exercises in the year ended December 31, 2009, and no cash proceeds from the exercise of stock options for the years ended December 31, 2011 or 2010 due to the fact that all options were exercised through net-share settlements.

Restricted Stock Units
 
The following table represents unvested restricted stock activity for the year ended December 31, 2011:

 
Weighted average
 
Number of Shares
 
Grant-Date Fair Value per Share
 
Period over which expense is expected to be recognized
Outstanding at the beginning of the period
1,421

 
$
5.35

 
 
Granted
837

 
6.81

 
 
Vested
(312
)
 
10.67

 
 
Forfeited
(28
)
 
2.81

 
 
Outstanding at the end of the period
1,918

 
$
5.16

 
2.0 years