Quarterly report [Sections 13 or 15(d)]

STOCK-BASED COMPENSATION

v3.26.1
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
In May 2021, the Board of Directors adopted the Incentive Plan with a share reserve equal to 2.8 million shares of common stock. The Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and performance awards or any combination of the foregoing.
The Company has granted both restricted stock units and performance vesting restricted stock units to employees and directors pursuant to the Incentive Plan, as discussed below. During the three months ended March 31, 2026 and 2025, the Company's stock-based compensation expense was $0.3 million and $4.5 million, of which the Company capitalized $0.1 million and $1.5 million, respectively, relating to its exploration and development efforts. Stock compensation expense, net of the amounts capitalized, is included in general and administrative expenses in the accompanying consolidated statements of operations. As of March 31, 2026, the Company has awarded an aggregate of approximately 581,304 restricted stock units and approximately 649,105 performance vesting restricted stock units under the Incentive Plan.
The following tables summarize activity for the three months ended March 31, 2026 and 2025:
Number of
Unvested
Restricted Stock Units		 Weighted
Average
Grant Date
Fair Value		 Number of
Unvested
Performance Vesting Restricted Stock Units		 Weighted
Average
Grant Date
Fair Value
Unvested shares as of January 1, 2026 143,666  $ 145.22  183,181  $ 113.44 
Granted(1)
64,627  207.92  109,133  126.49 
Vested (59,644) 137.05  (148,381) 58.39 
Forfeited/canceled(2)
(26,398) 180.52  (65,889) 178.95 
Unvested shares as of March 31, 2026 122,251  $ 174.73  78,044  $ 181.04 
_____________________
(1)    The table includes the impacts of performance share units granted in a prior year that vested higher than 100% of target due to the Company's absolute TSR performance and RTSR performance compared to peers.
(2)    The forfeited/canceled amounts include the forfeiture of unvested equity awards in connection with the departure of the Company’s Chief Executive Officer, totaling 25,806 restricted stock units and 64,216 performance vesting restricted stock units.

Number of
Unvested
Restricted Stock Units		 Weighted
Average
Grant Date
Fair Value		 Number of
Unvested
Performance Vesting Restricted Stock Units		 Weighted
Average
Grant Date
Fair Value
Unvested shares as of January 1, 2025 167,014  $ 111.29  178,139  $ 92.06 
Granted 61,350  169.80  41,016  165.39 
Vested (40,011) 112.93  —  — 
Forfeited/canceled (1,288) 126.93  —  — 
Unvested shares as of March 31, 2025 187,065  $ 130.02  219,155  $ 105.78 
The aggregate fair value of share-based awards that vested during the three months ended March 31, 2026 and 2025, were approximately $43.2 million and $7.0 million, respectively, based on the stock price at the time of vesting.
Restricted Stock Units
Restricted stock units awarded under the Incentive Plan generally vest over a period of 3 years in the case of employees and 1 or 3 years in the case of directors upon the recipient meeting applicable service requirements. Stock-based compensation expense is recorded ratably over the service period. The grant date fair value of restricted stock units represents the closing market price of the Company's common stock on the date of the grant. Unrecognized compensation expense as of March 31, 2026, was $18.7 million. The expense is expected to be recognized over a weighted average period of 2.35 years.
Performance Vesting Restricted Stock Units
The Company has awarded performance vesting restricted stock units to certain of its executive officers under the Incentive Plan. The number of shares of common stock issued pursuant to the award will be based on a combination of (i) the Company's TSR and (ii) the Company's RTSR for the performance period. Participants will earn from 0% to 200% of the target award based on the Company's TSR and RTSR ranking compared to the TSR of the companies in the Company's designated peer group at the end of the performance period. Awards will be earned and vested at the end of a three-year performance period, subject to earlier termination of the performance period in the event of a change in control. The grant date fair values were determined using the Monte Carlo simulation method and are being recorded ratably over the performance period.
The table below summarizes the assumptions used in the Monte Carlo simulation to determine the grant date fair value of awards granted during the three months ended March 31, 2026 and 2025:
Grant date March 1, 2025 March 1, 2026
Forecast period (years) 3 3
Risk-free interest rates 3.99% 3.39%
Implied equity volatility 44.60% 43.20%
Unrecognized compensation expense as of March 31, 2026, related to performance vesting restricted shares was $7.2 million. The expense is expected to be recognized over a weighted average period of 2.16 years.