Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2011

Stock Based Compensation (Tables) [Abstract]

Weighted average assumptions used in the Black-Scholes model for options granted

The estimated fair value of the options granted during the nine months ended September 30, 2011 and 2010 was calculated using a Black-Scholes Merton option pricing model (Black-Scholes). The following table summarizes the weighted average assumptions used in the Black-Scholes model for options granted during the nine months ended September 30, 2011 and 2010:


	2011			2010
Risk-free interest rate		1.17	%		2.47	%
Expected life (in years)		5.0			5.0
Expected volatility		82	%		81	%
Expected dividend yield		—			—
Weighted average fair value per share of stock compensation	$	18.20		$	12.39

Components of stock based compensation included in general and administrative expense

The following table summarizes the components of stock based compensation included in general and administrative expense (in thousands):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Pre-tax stock based compensation expense	$	1,668		$	1,698		$	4,926		$	3,594
Capitalized stock based compensation		(776	)		(804	)		(2,191	)		(1,662	)
Tax benefit		(312	)		(313	)		(957	)		(676	)

Stock based compensation expense, net	$	580		$	581		$	1,778		$	1,256

Option activity under the incentive plans

The following table summarizes option activity under the incentive plans for the nine months ended September 30:


	2011					2010
				Weighted-					Weighted-
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price

Options outstanding at the beginning of the year		4,436,400		$	8.41		4,170,137		$	5.14
Granted		54,500		$	27.98		969,500		$	18.88
Forfeited or cancelled		(9,300	)	$	12.96		(16,800	)	$	3.92
Exercised		(84,020	)	$	7.98		(487,107	)	$	5.03

Options outstanding at the end of the quarter		4,397,580		$	8.65		4,635,730		$	8.03

Options exercisable at the end of the quarter		1,432,795		$	7.04		805,650		$	5.65

Stock options outstanding and exercisable

The following table summarizes information about stock options outstanding and exercisable at September 30, 2011:


	Options Outstanding					Options Exercisable
	Number		Weighted-			Number		Weighted-
	Outstanding at		Average	Weighted-		Exercisable at		Average	Weighted-
	September 30,		Remaining	Average		September 30,		Remaining	Average
Exercise Price	2011		Contractual Life	Exercise Price		2011		Contractual Life	Exercise Price
$2.20 to $3.11		1,064,000	7.5 years	$	2.24		350,000	7.4 years	$	2.25
3.66 to 5.08		357,600	4.0 years	$	5.08		89,400	4.0 years	$	5.08
5.96 to 6.23		1,586,480	7.3 years	$	5.98		652,995	6.5 years	$	6.00
7.22 to 8.77		110,000	3.1 years	$	7.51		68,000	2.8 years	$	7.44
8.93 to 13.86		214,500	5.1 years	$	11.80		92,500	2.3 years	$	11.05
14.43 to 16.85		62,000	8.7 years	$	15.24		12,400	8.7 years	$	15.24
18.36 to 27.15		969,000	8.5 years	$	19.67		167,500	8.6 years	$	19.12
28.00 to 30.20		34,000	9.8 years	$	29.31		—	—	$	—

$2.20 to $30.20		4,397,580	7.2 years	$	8.65		1,432,795	6.4 years	$	7.04

Outstanding restricted stock awards and activity related thereto

The following table reflects the outstanding restricted stock awards and activity related thereto for the nine months ended September 30:


	2011					2010
				Weighted-					Weighted-
				Average					Average
	Shares			Price		Shares			Price

Restricted shares outstanding at the beginning of the year		530,883		$	8.35		556,990		$	7.04
Shares granted		273,331		$	30.85		105,363		$	14.45
Shares forfeited		(1,863	)	$	23.84		(600	)	$	5.26
Lapse of restrictions		(144,423	)	$	10.21		(119,760	)	$	7.31

Shares outstanding at the end of the quarter		657,928		$	17.25		541,993		$	8.43

BRIGHAM EXPLORATION CO 10-Q