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STOCK-BASED COMPENSATION | 3 Months Ended
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Mar. 31, 2024
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, 2024 and 2023, the Company's stock-based compensation expense was $3.6 million and $2.6 million, of which the Company capitalized $1.2 million and $0.9 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 March 31, 2024, the Company has awarded an aggregate of approximately 438,453 restricted stock units and approximately 322,320 performance vesting restricted stock units under the Incentive Plan. The vesting for certain share-based awards was accelerated in the first three months of 2023 in conjunction with the restructuring activities described in Note 7 and is included in restructuring costs in the accompanying consolidated statement of operations. The following tables summarizes activity for the three months ended March 31, 2024 and 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 January 1, 2024 | 193,602 |  |  | $ | 83.89 |  |  | 255,578 |  |  | $ | 54.40 |
Granted | 69,436 |  |  | 152.54 |  |  | 58,346 |  |  | 156.00 |
Vested | (17,720) |  |  | 75.96 |  |  | — |  |  | — |
Forfeited/canceled | (747) |  |  | 99.88 |  |  | — |  |  | — |
Unvested shares as of March 31, 2024 | 244,571 |  |  | $ | 103.91 |  |  | 313,924 |  |  | $ | 73.28 |
| 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, 2023 | 197,772 |  |  | $ | 77.49 |  |  | 190,804 |  |  | $ | 52.15 |
Granted | 43,415 |  |  | 77.84 |  |  | 68,726 |  |  | 56.57 |
Vested | (11,608) |  |  | 70.86 |  |  | — |  |  | — |
Forfeited/canceled | (971) |  |  | 87.68 |  |  | (5,069) |  |  | 47.67 |
Unvested shares as of March 31, 2023 | 228,608 |  |  | $ | 77.85 |  |  | 254,461 |  |  | $ | 53.43 |
Restricted Stock Units Restricted stock units awarded under the Incentive Plan generally vest over a period of 3 or 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 March 31, 2024, was $19.3 million. The expense is expected to be recognized over a weighted average period of 2.28 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 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 three months ended March 31, 2024 and March 31, 2023:
Grant date | January 24, 2023 | March 3, 2023 | March 1, 2024
Forecast period (years) | 3 | 3 | 3
Risk-free interest rates | 3.88% | 4.64% | 4.36%
Implied equity volatility | 87.2% | 86.4% | 46.70%
Stock price on the date of grant | $72.99 | $82.20 | $142.00
Unrecognized compensation expense as of March 31, 2024, related to performance vesting restricted shares was $12.9 million. The expense is expected to be recognized over a weighted average period of 2.36 years.

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