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Share-Based Compensation | 9 Months Ended
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Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Share-Based Compensation | Share-Based Compensation The Company issues share-based compensation awards including restricted common stock awards, restricted stock units, performance units and performance share units under the SandRidge Energy, Inc. 2009 Incentive Plan (the “Plan”). Total share-based compensation expense is measured using the grant date fair value for equity-classified awards and using the fair value at period end for liability-classified awards. Restricted Common Stock Awards The Company’s restricted common stock awards generally vest over a four-year period, subject to certain conditions, and are valued based upon the market value of the Company’s common stock on the date of grant. The following table presents a summary of the Company’s unvested restricted stock awards.
| Number of Shares |  | Weighted- Average Grant Date Fair Value
| (In thousands) |  |
Unvested restricted shares outstanding at December 31, 2014 | 8,556 |  |  | $ | 6.39 |
Granted | 2,928 |  |  | $ | 0.88 |
Vested | (4,887 | ) |  | $ | 4.95 |
Forfeited / Canceled | (620 | ) |  | $ | 6.39 |
Unvested restricted shares outstanding at September 30, 2015 | 5,977 |  |  | $ | 4.87 |
As of September 30, 2015, the Company’s unrecognized compensation cost related to unvested restricted stock awards was $21.9 million. Such cost is expected to be recognized over a weighted-average period of 2.2 years. The Company’s restricted stock awards are equity-classified awards. Restricted Stock Units During the nine-month period ended September 30, 2015, the Company granted restricted stock units that vest over a maximum of four years and will be settled in cash, shares of Company common stock or a combination of common stock and cash. Restricted Stock Units - Settled in Cash or Stock. The following table presents a summary of the Company’s unvested restricted stock units which may be settled in shares of the Company’s common stock, cash or some combination of common stock and cash at the Company’s election. These restricted stock units are liability-classified awards, which vest ratably over a maximum four-year period from the date of grant and were valued at September 30, 2015 based upon the Company’s period end common stock price.
| Number of Units |  | Fair Value per Unit at September 30, 2015
| (In thousands) |  |
Unvested units outstanding at December 31, 2014 | — |  |  |
Granted | 11,095 |  |  |
Vested(1) | (873 | ) |  |
Forfeited / Canceled | (646 | ) |  |
Unvested units outstanding at September 30, 2015 | 9,576 |  |  | $ | 0.27 |
____________________ (1) Restricted stock units which vested during the nine-month period ended September 30, 2015 were settled by the issuance of common stock. As of September 30, 2015, the Company’s unrecognized compensation cost related to the unvested restricted stock units noted above was $1.8 million and is expected to be recognized over a weighted-average period of 1.8 years. Restricted Stock Units - Settled in Cash. The following table presents a summary of the Company’s unvested restricted stock units which will be settled in cash at the end of each vesting period for an amount based on the Company’s common stock price as of the vesting date. These restricted stock units are liability-classified awards and vest over a two-year period (40% at the end of the first year and 60% at the end of the second year). The restricted stock units were valued based upon the Company’s period end common stock price, discounted using a credit spread (7.2% at September 30, 2015) that was determined based upon an analysis of the historical option adjusted spread for the Company’s outstanding senior notes and the outstanding long-term debt of comparable companies.
| Number of Units |  | Fair Value per Unit at September 30, 2015
| (In thousands) |  |  |  |
Unvested units outstanding at December 31, 2014 | — |  |  |  |  |
Granted | 3,104 |  |  |  |  |
Vested | — |  |  |  |  |
Forfeited / Canceled | (122 | ) |  |  |  |
Unvested units outstanding at September 30, 2015 | 2,982 |  |  | $ | 0.08 |  | – | $ | 0.23 |
As of September 30, 2015, the Company’s unrecognized compensation cost related to unvested two-year restricted stock units was $0.2 million. Such cost is expected to be recognized over a weighted-average period of 0.9 years. Performance Units and Performance Share Units The Company periodically grants performance units and performance share units to certain members of senior management which vest ratably over a performance period of approximately three years with cash settlements, if any, occurring at the end of the performance period. The value, and ultimate cash settlement, of the performance units is determined based upon the Company’s total shareholder return relative to that of a predetermined peer group over a specific performance period. The Company’s performance units and performance share units are liability-classified awards. The performance units and performance share units are valued for accounting purposes using a Monte Carlo simulation based on certain assumptions including (i) a volatility assumption based on the historical realized price volatility of the Company’s common stock and the common stock of the predetermined peer group and (ii) a risk-free interest rate based on the U.S. Treasury bond yield for a term commensurate with the approximate remaining vesting period for each grant. Performance Units. The following table presents a summary of the fair values of the performance units granted during the years ended December 31, 2014 and 2013 and the related assumptions for all outstanding performance units at September 30, 2015 and December 31, 2014.
| September 30, 2015 |  | December 31, 2014
Expected price volatility range | 30.7 | % | - | 148.5 | % |  | 26.6 | % | - | 86.6 | %
Weighted-average risk-free interest rate |  |  | 0.2 | % |  |  |  | 0.5 | %
Weighted-average fair value per unit |  |  | $ | 0.17 |  |  |  |  | $ | 13.85 |
Performance unit activity for the nine-month period ended September 30, 2015 was as follows:
| Number of Performance Units
| (In thousands)
Outstanding at December 31, 2014 | 66 |
Granted | — |
Forfeited /canceled | — |
Outstanding at September 30, 2015 | 66 |
Performance period ending December 31, 2015 |
Vested | 22 |
Unvested | 6 |
Performance period ending December 31, 2016 |
Vested | 15 |
Unvested | 23 |
Performance Share Units. During the nine-month period ended September 30, 2015, the Company granted performance share units to certain members of senior management. The following table presents a summary of the fair values of the performance share units granted and the related assumptions for all outstanding performance share units at September 30, 2015.
| September 30, 2015
Expected price volatility range | 29.8 | % | - | 116.9 | %
Weighted-average risk-free interest rate |  |  | 0.7 | %
Weighted-average fair value per unit |  |  | $ | 0.08 |
P erformance share unit activity for the nine-month period ended September 30, 2015 was as follows:
| Number of Performance Share Units
| (In thousands)
Outstanding at December 31, 2014 | — |
Granted | 2,044 |
Forfeited /canceled | (151 | )
Outstanding at September 30, 2015 | 1,893 |
Performance period ending December 31, 2017 |
Vested | 96 |
Unvested | 1,797 |
Allocation of Share-Based Compensation 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 unaudited condensed consolidated statements of operations. For the three and nine-month periods ended September 30, 2015, the Company recognized share-based compensation expense of $3.6 million and $17.5 million, net of $0.9 million and $3.2 million capitalized, respectively. For the three and nine-month periods ended September 30, 2014, the Company recognized share-based compensation expense of $3.1 million and $18.6 million, net of $1.5 million and $4.5 million capitalized, respectively.

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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