Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

v2.4.0.6
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2011
Stock-Based Compensation [Abstract]  
Stock-Based Compensation
9. STOCK-BASED COMPENSATION

During the years ended December 31, 2011, 2010 and 2009, the Company's stock-based compensation cost was $1,287,000, $492,000 and $529,000, respectively, of which the Company capitalized $515,000, $197,000 and $212,000, respectively, relating to its exploration and development efforts.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on the historical volatility of the market price of Gulfport's common stock over a period of time ending on the grant date. Based upon historical experience of the Company, the expected term of options granted is equal to the vesting period plus one year. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The 2005 Plan provides that all options must have an exercise price not less than the fair value of the Company's common stock on the date of the grant.

No stock options were issued during the years ended December 31, 2011, 2010 and 2009.

The Company has not declared dividends and does not intend to do so in the foreseeable future, and thus did not use a dividend yield. In each case, the actual value that will be realized, if any, depends on the future performance of the common stock and overall stock market conditions. There is no assurance that the value an optionee actually realizes will be at or near the value estimated using the Black-Scholes model.

A summary of the status of stock options and related activity for the years ended December 31, 2011, 2010 and 2009 are presented below:

 

     Shares     Weighted
Average
Exercise Price
per Share 		     Weighted
Average
Remaining
Contractual Term 		     Aggregate
Intrinsic
Value 		 

Options outstanding at December 31, 2008

      522,380      $ 7.01         6.24       $ (1,599,000 ) 
       

 

 

     

 

 

  

Granted

      —          —           

Exercised

      (13,750 )      2.20            71,000   

Forfeited/expired

      —          —           
  

 

 

    

 

 

        

Options outstanding at December 31, 2009

      508,630        7.14         5.38       $ 2,192,000   
       

 

 

     

 

 

  

Granted

      —          —           

Exercised

      (48,889 )      6.46            545,000   

Forfeited/expired

      (1,500 )      2.00         
  

 

 

    

 

 

        

Options outstanding at December 31, 2010

      458,241        7.23         4.48       $ 6,621,000   
       

 

 

     

 

 

  

Granted

      —          —           

Exercised

      (102,000 )      9.74            2,308,000   

Forfeited/expired

      —          —           
  

 

 

    

 

 

        

Options outstanding at December 31, 2011

      356,241      $ 6.51         3.41       $ 8,172,000   
  

 

 

    

 

 

     

 

 

     

 

 

  

Options exercisable at December 31, 2011

      356,241      $ 6.51         3.41       $ 8,172,000   
  

 

 

    

 

 

     

 

 

     

 

 

  

 

Unrecognized compensation expense as of December 31, 2011 related to outstanding stock options and restricted shares was $4,819,000. The expense is expected to be recognized over a weighted average period of 2.10 years.

The following table summarizes information about the stock options outstanding at December 31, 2011:

 

Exercise

Price

    Number
Outstanding 		     Weighted Average
Remaining Life
(in years) 		     Number
Exercisable 		 
$3.36      206,241         3.06         206,241   
$9.07      25,000         3.69         25,000   
$11.20      125,000         3.92         125,000   
  

 

 

        

 

 

  
     356,241            356,241   
  

 

 

        

 

 

  

The following table summarizes restricted stock activity for the twelve months ended December 31, 2011, 2010 and 2009:

 

     Number of
Unvested
Restricted Shares 		    Weighted
Average
Grant Date
Fair Value 		 

Unvested shares as of December 31, 2008

      93,456      $ 7.04   

Granted

      13,332        8.08   

Vested

      (43,458 )      8.16   

Forfeited

      (3,086 )      15.77   
  

 

 

    

 

 

  

Unvested shares as of December 31, 2009

      60,244      $ 6.01   
  

 

 

    

 

 

  

Granted

      111,667      $ 12.94   

Vested

      (58,525 )      8.17   

Forfeited

      —          —     
  

 

 

    

 

 

  

Unvested shares as of December 31, 2010

      113,386      $ 11.72   
  

 

 

    

 

 

  

Granted

      153,332      $ 31.15   

Vested

      (63,370 )      12.87   

Forfeited

      —          —     
  

 

 

    

 

 

  

Unvested shares as of December 31, 2011

      203,348      $ 26.02