|6 Months Ended|
Jun. 30, 2012
|Share-based Compensation [Abstract]|
During the three months and six months ended June 30, 2012, the Company’s stock-based compensation expense was $1,135,000 and $2,270,000, respectively, of which the Company capitalized $454,000 and $908,000, respectively, relating to its exploration and development efforts. During the three months and six months ended June 30, 2011, the Company’s stock-based compensation expense was $325,000 and $453,000, respectively, of which the Company capitalized $130,000 and $181,000, respectively, relating to its exploration and development efforts.
Options and restricted common stock are reported as share based payments and their fair value is amortized to expense using the straight-line method over the vesting period. The shares of stock issued once the options are exercised will be from authorized but unissued common stock.
The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses certain assumptions. Expected volatilities are based on the historical volatility of the market price of Gulfport’s common stock over a period of time ending on the grant date. Based upon historical experience of the Company, the expected term of options granted is equal to the vesting period plus one year. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The 2005 Stock Incentive Plan provides that all options must have an exercise price not less than the fair value of the Company’s common stock on the date of the grant.
No stock options were issued during the six months ended June 30, 2012 and 2011.
The Company has not declared dividends and does not intend to do so in the foreseeable future, and thus did not use a dividend yield. In each case, the actual value that will be realized, if any, depends on the future performance of the common stock and overall stock market conditions. There is no assurance that the value an optionee actually realizes will be at or near the value estimated using the Black-Scholes model.
A summary of the status of stock options and related activity for the six months ended June 30, 2012 is presented below:
The following table summarizes information about the stock options outstanding at June 30, 2012:
The following table summarizes restricted stock activity for the six months ended June 30, 2012:
Unrecognized compensation expense as of June 30, 2012 related to outstanding stock options and restricted shares was $8,808,000. The expense is expected to be recognized over a weighted average period of 1.78 years.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef