Equity-Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2019 |
|---|
| Equity-Based Compensation |
|
| Schedule of equity-based compensation expense |
The Company’s equity-based compensation expense, by type of award, was as follows for the years ended December 31, 2017, 2018 and 2019 (in thousands):
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Year ended December 31, |
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|
|
2017 |
|
2018 |
|
2019 |
|
Restricted stock unit awards |
|
$ |
70,866 |
|
|
41,505 |
|
|
10,343 |
|
Stock options |
|
|
2,375 |
|
|
1,799 |
|
|
355 |
|
Performance share unit awards |
|
|
10,797 |
|
|
9,659 |
|
|
8,069 |
|
Antero Midstream Partners phantom unit awards (1) |
|
|
17,461 |
|
|
15,351 |
|
|
3,425 |
|
Equity awards issued to directors |
|
|
1,946 |
|
|
2,100 |
|
|
1,367 |
|
Total expense |
|
$ |
103,445 |
|
|
70,414 |
|
|
23,559 |
|
|
(1) |
Antero Resources recognized compensation expense for equity awards granted under both the Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to the Transactions to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. Through March 12, 2019, the total amount of equity-based compensation is included in the consolidated financial statements of Antero Resources; and effective March 13, 2019 (date of deconsolidation), the amount allocated to Antero Midstream Partners is no longer reflected in Antero Resources’ consolidated financial statements. See Note 3 to the consolidated financial statements for further discussion on the Transactions. |
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| Summary of restricted stock and restricted stock unit awards activity |
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Weighted |
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Aggregate |
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|
|
Number of |
|
grant date |
|
intrinsic value |
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|
|
shares |
|
fair value |
|
(in thousands) |
|
Total awarded and unvested—December 31, 2018 |
|
1,712,485 |
|
$ |
24.57 |
|
$ |
16,080 |
|
Granted |
|
1,745,784 |
|
$ |
8.14 |
|
|
|
|
Vested |
|
(730,343) |
|
$ |
27.60 |
|
|
|
|
Forfeited |
|
(357,351) |
|
$ |
16.09 |
|
|
|
|
Total awarded and unvested—December 31, 2019 |
|
2,370,575 |
|
$ |
12.81 |
|
$ |
6,756 |
|
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| Summary of stock option activity |
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|
|
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|
|
|
|
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Weighted |
|
|
|
|
|
|
|
average |
|
remaining |
|
Intrinsic |
|
|
|
Stock |
|
exercise |
|
contractual |
|
value |
|
|
|
options |
|
price |
|
life |
|
(in thousands) |
|
Outstanding at December 31, 2018 |
|
579,617 |
|
$ |
50.55 |
|
5.81 |
|
$ |
— |
|
Granted |
|
— |
|
$ |
— |
|
|
|
|
|
|
Exercised |
|
— |
|
$ |
— |
|
|
|
|
|
|
Forfeited |
|
(4,250) |
|
$ |
50.18 |
|
|
|
|
|
|
Expired/Cancelled |
|
(107,734) |
|
$ |
— |
|
|
|
|
|
|
Outstanding at December 31, 2019 |
|
467,633 |
|
$ |
50.64 |
|
5.05 |
|
$ |
— |
|
Vested or expected to vest as of December 31, 2019 |
|
467,633 |
|
$ |
50.64 |
|
5.05 |
|
$ |
— |
|
Exercisable at December 31, 2019 |
|
467,633 |
|
$ |
50.64 |
|
5.05 |
|
$ |
— |
|
|
| Summary of Performance Stock Unit activity |
A summary of PSU activity for the year ended December 31, 2019 is as follows:
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|
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|
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Weighted average |
|
|
|
Number of |
|
grant date |
|
|
|
units |
|
fair value |
|
Total awarded and unvested—December 31, 2018 |
|
1,767,299 |
|
$ |
26.36 |
|
Granted |
|
1,416,378 |
|
$ |
9.26 |
|
Exercised |
|
(31,944) |
|
$ |
27.38 |
|
Cancelled - Unearned |
|
(326,938) |
|
$ |
32.97 |
|
Forfeited |
|
(287,512) |
|
$ |
19.38 |
|
Total awarded and unvested—December 31, 2019 |
|
2,537,283 |
|
$ |
16.74 |
|
|
| Schedule of weighted average fair value assumptions used for PSUs granted |
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Year ended December 31, |
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|
|
|
2018 |
|
|
2019 |
|
|
Dividend yield |
|
|
— |
% |
|
|
— |
% |
|
Volatility |
|
|
41 |
% |
|
|
36 |
% |
|
Risk-free interest rate |
|
|
2.49 |
% |
|
|
2.35 |
% |
|
Weighted average fair value of awards granted |
|
$ |
24.85 |
|
|
$ |
9.26 |
|
|
|
| Schedule of outstanding unvested restricted stock awards vesting schedule |
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|
|
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Weighted |
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Aggregate |
|
|
|
Number of |
|
average grant |
|
intrinsic value |
|
|
|
units |
|
date fair value |
|
(in thousands) |
|
Total awarded and unvested—December 31, 2018 |
|
583,000 |
|
$ |
27.63 |
|
$ |
12,470 |
|
Granted |
|
5,972 |
|
$ |
23.44 |
|
|
|
|
Vested |
|
(3,853) |
|
$ |
32.44 |
|
|
|
|
Forfeited |
|
(20,338) |
|
$ |
26.73 |
|
|
|
|
AMP Plan Units awarded and unvested—March 12, 2019 |
|
564,781 |
|
$ |
27.59 |
|
$ |
13,476 |
|
Effect of conversion (1) |
|
504,119 |
|
$ |
14.58 |
|
|
|
|
Vested |
|
(362,191) |
|
$ |
14.35 |
|
|
|
|
Forfeited |
|
(48,952) |
|
$ |
14.51 |
|
|
|
|
Total awarded and unvested—December 31, 2019 |
|
657,757 |
|
$ |
14.71 |
|
$ |
4,992 |
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(1)Effective March 12, 2019, all outstanding phantom units under the AMP Plan were assumed by Antero Midstream Corporation and converted into restricted stock units under the AMC Plan.
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