Equity

Preferred Stock Dividends

Dividends on the Company’s 8.5% and 7.0% convertible perpetual preferred stock may be paid in cash or with shares of the Company’s common stock at the Company’s election. All dividend payments to date on the Company’s 8.5%, 6.0% and 7.0% convertible perpetual preferred stock have been paid in cash. Paid and unpaid dividends included in the calculation of loss applicable to the Company’s common stockholders and the Company’s basic loss per share calculation for the three-month periods ended March 31, 2015 and 2014 as presented in the accompanying unaudited condensed consolidated statements of operations, are included in the tables below (in thousands):



	Three Months Ended March 31,
	2015						2014
	Dividends Paid		Dividends Unpaid		Total		Dividends Paid		Dividends Unpaid		Total
8.5% Convertible perpetual preferred stock	$	2,815	$	2,816	$	5,631	$	2,815	$	2,816	$	5,631
6.0% Convertible perpetual preferred stock	—		—		—		500		2,500		3,000
7.0% Convertible perpetual preferred stock	—		5,250		5,250		—		5,250		5,250
Total	$	2,815	$	8,066	$	10,881	$	3,315	$	10,566	$	13,881

In 2014, all outstanding shares of the 6.0% convertible perpetual preferred stock converted automatically into shares of the Company’s common stock at the then-prevailing conversion rate, resulting in the issuance of approximately 18.4 million shares of common stock. The final dividend payment for the 6.0% convertible preferred stock was made during 2014.

On April 1, 2015, the Company announced a semi-annual dividend of $3.50 per share on its 7.0% convertible perpetual preferred stock and stated its intent to pay such dividends with shares of the Company’s common stock on May 15, 2015.

Treasury Stock

The Company makes required statutory tax payments on behalf of employees when their restricted stock awards vest and then withholds a number of vested shares of common stock having a value on the date of vesting equal to the tax obligation. The following table shows the number of shares withheld for taxes and the associated value of those shares for the three-month periods ended March 31, 2015 and 2014. These shares were accounted for as treasury stock when withheld and then immediately retired.



	Three Months Ended March 31,
	2015		2014
	(In thousands)
Number of shares withheld for taxes	719		609
Value of shares withheld for taxes	$	1,218	$	3,677

Stockholder Receivable

The Company is party to a settlement agreement relating to a third-party claim against its former CEO under Section 16(b) of the Securities Exchange Act of 1934, as amended. Based on the nature of the settlement as well as the former CEO’s position as an officer of the Company at the time of the settlement, the receivable is classified as a component of additional paid-in capital in the accompanying unaudited condensed consolidated balance sheets. The remaining amount receivable under the agreement as of March 31, 2015 and December 31, 2014 was $2.5 million and is due in two equal installments in October 2015 and October 2016.

Restricted Common Stock

Equity compensation provided to employees directly involved in exploration and development activities is capitalized to the Company’s oil and natural gas properties. Equity compensation not capitalized is recognized in general and administrative expenses, production expenses, cost of sales and midstream and marketing expenses in the consolidated statements of operations. For the three-month periods ended March 31, 2015 and 2014, the Company recognized equity compensation expense of $4.8 million and $7.4 million, net of $1.2 million and $1.9 million capitalized, respectively, related to restricted common stock.

See Note 15 for discussion of the Company’s share-based compensation.