The Vital Energy, Inc. Omnibus Equity Incentive Plan (the "Equity Incentive Plan") provides for the granting of incentive awards in the form of restricted stock awards, stock option awards, performance share awards, performance unit awards, phantom unit awards and other awards. On May 23, 2024, the Company's stockholders approved an amendment and restatement to the Equity Incentive Plan, which increased the maximum number of shares of the Company's common stock issuable under the Equity Incentive Plan from 2,432,500 to 3,332,500 shares.


	Equity Awards	Liability Awards
(in thousands)	Restricted Stock Awards	Performance Share Awards	Performance Unit Awards(1)(2)
Outstanding as of December 31, 2023	472	48	158
Granted	458	—	141
Forfeited	(13)	—	—
Vested	(203)	—	(83)


Outstanding as of June 30, 2024	714	48	216

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(1)The performance unit awards granted on March 9, 2021 had a performance period of January 1, 2021 to December 31, 2023 and, as their market and performance criteria were satisfied, resulted in a 145.83% payout, or 120,297 units. As such, the granted awards vested and were paid out in cash on March 8, 2024 at $50.38 per unit based on the Company's closing stock price on the vesting date.

(2)On February 20, 2024 and April 1, 2024, the Company granted performance unit awards with a performance period of January 1, 2024 through December 31, 2026. The market criteria consists of: (i) relative total shareholder return comparing the Company's shareholder return to the shareholder return of the exploration and production companies listed in the Russell 2000 Index and (ii) absolute shareholder return. The performance criteria for these awards consists of: (i) earnings before interest, taxes, depreciation, amortization and exploration expense and three-year total debt reduction, (ii) growth in inventory and (iii) emissions reductions. Any units earned are expected to be paid in cash during the first quarter following the completion of the requisite service period, based on the achievement of market and performance criteria, and the payout can range from 0% to 225%.

As of June 30, 2024, total unrecognized cost related to equity-based compensation awards was $36.4 million, of which $7.7 million was attributable to liability awards which will be settled in cash rather than shares. Such cost will be recognized on a straight-line basis over an expected weighted-average period of 2.15 years.


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Equity awards:
Restricted stock awards	$	4,392	$	3,322	$	8,194	$	6,039
Performance share awards	473		389		1,019		813

Total share-settled equity-based compensation, gross	4,865		3,711		9,213		6,852
Less amounts capitalized	(931)		(818)		(1,778)		(1,387)
Total share-settled equity-based compensation, net	3,934		2,893		7,435		5,465
Liability awards:
Performance unit awards and phantom unit awards	460		1,111		2,227		1,825

Total cash-settled equity-based compensation, gross	460		1,111		2,227		1,825
Less amounts capitalized	(7)		—		(14)		(50)
Total cash-settled equity-based compensation, net	453		1,111		2,213		1,775
Total equity-based compensation, net	$	4,387	$	4,004	$	9,648	$	7,240