The Company has a Long Term Incentive Plan (the “LTIP”) that provides for grants of certain types of equity and cash-based awards. On May 19, 2026, following the approval of the Company’s board of directors, the Company's stockholders approved the First Amendment to the LTIP, which increased the total number of shares of Class A Common Stock authorized for issuance under the LTIP by 30,000,000 shares to 101,718,560 shares.

Stock-based compensation expense is recognized within both General and administrative expenses and Exploration and other expenses in the consolidated statements of operations. The Company accounts for forfeitures of awards granted under the LTIP as they occur.

The following table summarizes stock-based compensation expense recognized for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Equity Awards
Restricted Stock	$	9,353	$	7,713	$	18,222	$	13,927
Performance stock units	9,968		12,451		17,301		23,166
Total stock-based compensation expense	$	19,321	$	20,164	$	35,523	$	37,093

The Company has restricted stock, which includes both restricted stock and restricted stock units (collectively, “Restricted Stock”), stock options and performance stock units (“PSUs”) outstanding that were granted under the LTIP as discussed below. Each award has service-based and, in the case of the PSUs, market-based vesting requirements, and is expected to be settled in shares of Class A Common Stock upon vesting. As a result, these awards are classified as equity-based awards in accordance with ASC Topic 718, Compensation-Stock Compensation.

The Company grants service-based Restricted Stock to certain officers and employees, which either vests ratably over a three-year service period or cliff vests upon a twelve month to five year service period, and to directors, which vest over a one-year service period. Compensation cost for these service-based Restricted Stock grants is based on the closing market price of the Company’s Class A Common Stock on the grant date, and such costs are recognized ratably over the applicable vesting period. The total fair value of Restricted Stock that vested during the six months ended June 30, 2026 and 2025, was $17.3 million and $12.0 million, respectively. Unrecognized compensation cost related to Restricted Stock that were unvested as of June 30, 2026, was $50.2 million, which the Company expects to recognize over a weighted average period of 1.8 years.

Stock options that have been granted under the LTIP expire ten years from the grant date and vest ratably over their three-year service period. The exercise price for an option granted under the LTIP is the closing market price of the Company’s Class A Common Stock on the grant date. Compensation cost for stock options is based on the grant-date fair value of the award, which is then recognized ratably over the vesting period of three years.


	Options	Weighted Average Exercise Price		Weighted Average Remaining Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2025	239,533	$	16.11		$	339

Exercised	(118,533)	16.51			346

Expired	—	—
Outstanding as of June 30, 2026	121,000	15.72		1.8	386
Exercisable as of June 30, 2026	121,000	15.72		1.8	386

The Company grants PSUs to certain officers and members of management that are subject to market-based vesting criteria as well as a service period of three years. Vesting at the end of the service period depends on the Company’s absolute annualized total shareholder return (“TSR”) over the performance period, as well as the Company’s TSR relative to the TSR of a group of peer companies. These market-based conditions must be met in order for the stock awards to vest, and it is therefore possible that no shares could ultimately vest. However, the Company recognizes compensation expense for the PSUs subject to market conditions regardless of whether it becomes probable that these conditions will be met or not, and compensation expense is not reversed if vesting does not actually occur.

The Company’s PSUs currently outstanding can be settled in either Class A Common Stock or cash upon vesting at the Company’s discretion. The Company intends to settle all PSUs in Class A Common Stock and has sufficient shares available under the LTIP to settle the units in Class A Common Stock at the potential future vesting dates. Accordingly, the PSUs have been treated as equity-based awards with their fair values determined as of the grant date. The fair values of the awards are estimated using a Monte Carlo valuation model. The Monte Carlo valuation model is based on a large number of simulated stock price paths and potential TSR for the Company and its peer companies and produces a probabilistic assessment of fair value. Expected volatility was calculated based on the implied volatility of the Company’s Class A Common Stock and its peer companies, consistent with the remaining term of the performance period, or historical volatility where implied volatility data was unavailable for the respective term. The risk-free interest rate is based on U.S. Treasury yield curve rates with maturities consistent with the vesting periods.

The following table summarizes the key assumptions and related information used to determine the fair value of PSUs granted during the six months ended June 30, 2026:


			2026 Awards
Fair value per share			$28.07
Expected implied stock volatility			41.4%
Risk-free interest rate			3.4%

The following table provides information about PSUs outstanding during the six months ended June 30, 2026:


	Awards	Weighted Average Fair Value
Unvested balance as of December 31, 2025	5,238,609	$	17.93
Granted	1,964,333	28.07
Vested	—	—
Forfeited	—	—
Unvested balance as of June 30, 2026	7,202,942	20.70