EARTHSTONE ENERGY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) On May 9, 2017, and in connection with the completion of the Bold Transaction, Earthstone recapitalized its Common Stock into two classes, as described in  Note 1. Organization and Basis of Presentation , Class A Common Stock and Class B Common Stock. At that time, all of Earthstone’s existing outstanding Common Stock was automatically converted on a one-for-one basis into Class A Common Stock. At December 31, 2018 and 2017, there were 28,696,321 and 27,584,638 shares of Class A Common Stock issued and outstanding, respectively. During the years ended December 31, 2018 and 2017, as a result of the vesting and settlement of restricted stock units under the 2014 Plan, Earthstone issued 681,585 and 703,214 shares of Class A Common Stock, respectively, of which 169,893 and 61,055 shares of Class A Common Stock, respectively, were retained as treasury stock and canceled to satisfy the related employee income tax liability. On July 1, 2017, Earthstone retired and returned the 15,357 shares of treasury stock to authorized but unissued shares of Class A Common Stock. Additionally, on May 9, 2017, under the Bold Contribution Agreement, Earthstone issued 150,000 shares of Class A Common Stock valued at approximately $2.0 million on that date. For additional information, see  Note 3. Acquisitions and Divestitures . In October 2017, Earthstone completed a public offering of 4,500,000 shares of Class A Common Stock, at an issue price of $9.25 per share. Earthstone received net proceeds from this offering of $39.4 million, after deducting underwriters’ fees and offering expenses of $2.2 million. The net proceeds from the offering were used to repay outstanding indebtedness under the EEH Credit Agreement, as described in  Note 13. Long-Term Debt . At December 31, 2018 and 2017, there were 35,452,178 and 36,052,169 shares of Class B Common Stock issued and outstanding, respectively. Each share of Class B Common Stock, together with one EEH Unit, is convertible into one share of Class A Common Stock. During the years ended December 31, 2018 and 2017, 599,991 and 18,659 shares, respectively, of Class B Common Stock and EEH Units were exchanged for an equal number of shares of Class A Common Stock. On May 9, 2017, in connection with Earthstone’s completion of the Bold Transaction, Earthstone issued 36,070,828 shares of Class B Common Stock in exchange for $36 thousand. For additional information, see  Note 3. Acquisitions and Divestitures . The 2014 Plan allows, among other things, for the grant of restricted stock units (“RSUs”). On June 6, 2018, at the annual meeting of stockholders, Earthstone's stockholders approved an amendment and restatement of the 2014 Plan, including increasing the shares of Class A Common Stock that may be issued under the Plan by 600,000 shares, to a total of 6.4 million shares. Each RSU represents the contingent right to receive one share of Class A Common Stock. The holders of outstanding RSUs do not receive dividends or have voting rights prior to vesting and settlement. Prior to May 9, 2017, the Company determined the fair value of granted RSUs based on the market price of the Common Stock on the date of the grant. Beginning on May 9, 2017, the Company began determining the fair value of granted RSUs based on the market price of the Class A Common Stock on the date of the grant. Compensation expense for granted RSUs is recognized on a straight-line basis over the vesting term and is net of forfeitures, as incurred. Stock-based compensation is included in General and administrative expense in the Consolidated Statements of Operations and is recorded with a corresponding increase in Additional paid-in capital within the Consolidated Balance Sheet. The table below summarizes unvested RSU activity for the year ended December 31, 2018: Class A Common Stock Class A Common Stock Offering Class B Common Stock Note 12. Stock-Based Compensation Restricted Stock Units During the year ended December 31, 2018, Earthstone granted 561,000 RSUs to employees and 6,500 RSUs to certain members of the Board with vesting periods ranging from 12 to 36 months. The total grant date fair value of the RSUs granted during the Shares Weighted-Average Grant Date Fair Value Unvested RSUs at December 31, 2017 969,245 $ 9.89 Granted 567,500 $ 8.41 Forfeited (44,165 ) $ 10.87 Vested (681,585) $ 9.86 Unvested RSUs at December 31, 2018 810,995 $ 8.83 F-22