Annual report pursuant to Section 13 and 15(d)

Equity-Based Compensation (Tables)

v3.19.3.a.u2
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):

Year ended December 31,

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.
Summary of restricted stock and restricted stock unit awards activity

Weighted

Aggregate

Number of

grant date

intrinsic value

    

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

Summary of stock option activity

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:

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

Year ended December 31,

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

Weighted

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

(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.