Net Income (Loss) Per Common Share

Net income (loss) per common share—basic is calculated by dividing Net income (loss) by the weighted average number of shares of common stock outstanding during the period (Common Stock for the period from January 1, 2017 through May 8, 2017 and Class A Common Stock thereafter). Net income (loss) per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net income (loss) by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net income (loss) per common share—diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect.

A reconciliation of Net income (loss) per common share is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands, except per share amounts)	2018		2017			2018		2017
Net income (loss) attributable to Earthstone Energy, Inc.	$	650	$	(17,123	)	$	5,971	$	(16,394	)

Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.02	$	(0.75	)	$	0.21	$	(0.73	)
Diluted	$	0.02	$	(0.75	)	$	0.21	$	(0.73	)

Weighted average common shares outstanding
Basic	27,987,509		22,728,011			27,886,220		22,503,750
Add potentially dilutive securities:
Unvested restricted stock units	48,543		—			81,201		—
Diluted weighted average common shares outstanding	28,036,052		22,728,011			27,967,421		22,503,750

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and Net income (loss) attributable to noncontrolling interest of $0.8 million and $7.7 million for the three and six months ended June 30, 2018, respectively, would be added back to Net income (loss) attributable to Earthstone Energy, Inc., having no dilutive effect on Net income (loss) per common share attributable to Earthstone Energy, Inc.