XML 37 R16.htm IDEA: XBRL DOCUMENT
v3.24.0.1

STOCK-BASED COMPENSATION | 12 Months Ended
--- | ---
Dec. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION As discussed in Note 2, on the Emergence Date, the Company's Predecessor common stock was cancelled and the Company's Successor Common Stock was issued. Accordingly, the Company's then existing stock-based compensation awards were also cancelled, which resulted in the recognition of previously unamortized expense of $4.4 million related to the cancelled awards on the date of cancellation. The expense was included in reorganization items, net on the accompanying consolidated statements of operations. As a result, stock-based compensation for the Predecessor and Successor periods are not comparable. Successor Stock-Based Compensation As of the Emergence Date, the Board of Directors adopted the Incentive Plan with a share reserve of 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 years ended December 31, 2023 and December 31, 2022, the Company's stock-based compensation expense was $12.3 million and $8.7 million of which the Company capitalized $4.0 million and $2.9 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 December 31, 2023, the Company has awarded an aggregate of approximately 369,017 restricted stock units and approximately 274,624 performance vesting restricted stock units under the Incentive Plan. The following table summarizes restricted stock unit activity for the Prior Successor Period and years ended December 31, 2022 and December 31, 2023:
| 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 May 18, 2021 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Granted | 200,484 |  |  | 66.05 |  |  | 153,138 |  |  | 48.54 |
Vested | — |  |  | — |  |  | — |  |  | — |
Forfeited/canceled | (2,071) |  |  | 66.89 |  |  | — |  |  | — |
Unvested shares as of December 31, 2021 | 198,413 |  |  | $ | 66.04 |  |  | 153,138 |  |  | $ | 48.54 |
Granted | 78,192 |  |  | 96.90 |  |  | 37,666 |  |  | 66.82 |
Vested | (67,564) |  |  | 65.91 |  |  | — |  |  | — |
Forfeited/canceled | (11,269) |  |  | 80.11 |  |  | — |  |  | — |
Unvested shares as of December 31, 2022 | 197,772 |  |  | $ | 77.49 |  |  | 190,804 |  |  | $ | 52.15 |
Granted | 104,901 |  |  | 88.59 |  |  | 83,820 |  |  | 58.39 |
Vested | (101,804) |  |  | 75.75 |  |  | — |  |  | — |
Forfeited/canceled | (7,267) |  |  | 91.61 |  |  | (19,046) |  |  | 49.37 |
Unvested shares as of December 31, 2023 | 193,602 |  |  | $ | 83.89 |  |  | 255,578 |  |  | $ | 54.40 |
The aggregate fair value of restricted stock units that vested during the years ended December 31, 2023 and December 31, 2022, was approximately $9.9 million and $5.9 million, respectively, based on the stock price at the time of vesting. There were no restricted stock units that vested in the Prior Successor Period. Successor Restricted Stock Units Restricted stock units awarded under the Incentive Plan generally vest over a period of 3 to 4 years in the case of employees and 1 or 4 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 December 31, 2023, was $11.7 million. The expense is expected to be recognized over a weighted average period of 1.83 years. Successor 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 total shareholder return ("TSR") and (ii) the Company's relative total shareholder return ("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 years ended December 31, 2022 and December 31, 2023:
Grant date | April 29, 2022 | January 24, 2023 | March 3, 2023 | April 3, 2023
Forecast period (years) | 3 | 3 | 3 | 3
Risk-free interest rates | 2.87% | 3.88% | 4.64% | 3.79%
Implied equity volatility | 88.4% | 87.2% | 86.4% | 70.8%
Stock price on the date of grant | $93.98 | $72.99 | $82.20 | $79.50
For grants awarded in the Prior Successor Period, expected volatilities utilized in the Monte Carlo models were estimated using a historical period consistent with the remaining performance period of approximately 3 years. The risk-free interest rates were based on the U.S. Treasury rate for a term commensurate with the expected life of the grant. The Company assumed a range of risk-free interest rates between 0.35% and 0.67% and a range of expected volatilities between 87.0% and 87.1% to estimate the fair value. Unrecognized compensation expense as of December 31, 2023, related to performance vesting restricted shares was $5.2 million. The expense is expected to be recognized over a weighted average period of 1.64 years. Predecessor Stock-Based Compensation The Predecessor granted restricted stock units to employees and directors pursuant to the 2019 Amended and Restated Incentive Stock Plan (the "2019 Plan"). During the Prior Predecessor Period, the Company’s stock-based compensation cost was $4.4 million, of which the Company capitalized $0.9 million, relating to its exploration and development efforts. Stock compensation costs, net of the amounts capitalized, are included in general and administrative expenses in the accompanying consolidated statements of operations. The following table summarizes restricted stock unit activity for the Prior Predecessor Period:
| 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, 2021 | 1,702,513 |  |  | $ | 4.74 |  |  | 840,595 |  |  | $ | 4.07 |
Granted | — |  |  | — |  |  | — |  |  | — |
Vested | (227,132) |  |  | 8.45 |  |  | — |  |  | — |
Forfeited/canceled | (1,475,381) |  |  | 4.16 |  |  | (840,595) |  |  | 4.07 |
Unvested shares as of May 17, 2021 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Predecessor Restricted Stock Units Restricted stock units awarded under the 2019 Plan generally vested over a period of one year in the case of directors and three years in the case of employees and vesting was dependent upon the recipient meeting applicable service requirements. Stock-based compensation costs are 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 grant. All unrecognized compensation expense was recognized as of the Emergence Date. Predecessor Performance Vesting Restricted Stock Units The Company previously awarded performance vesting restricted stock units to certain of its executive officers under the 2019 Plan. The number of shares of Common Stock issued pursuant to the award was based on RTSR. RTSR is an incentive measure whereby participants will earn from 0% to 200% of the target award based on the Company’s TSR ranking compared to the TSR of the companies in the Company’s designated peer group at the end of the performance period. Awards were to be earned and vested over a performance period measured from January 1, 2019 to December 31, 2021, subject to earlier termination of the performance period in the event of a change in control. All unrecognized compensation expense was recognized as of the Emergence Date.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration