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 through May 8, 2017 and Class A Common Stock from May 9, 2017 through December 31, 2018). 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:



	Years Ended December 31,
(In thousands, except per share amounts)	2018		2017
Net income (loss) attributable to Earthstone Energy, Inc.	$	42,325	$	(12,514	)
Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	1.50	$	(0.53	)
Diluted	$	1.50	$	(0.53	)
Weighted average common shares outstanding
Basic	28,153,885		23,589,973
Add potentially dilutive securities:
Unvested restricted stock units	63,889		—
Diluted weighted average common shares outstanding	28,217,774		23,589,973

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and Net income attributable to noncontrolling interest of $52.9 million 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. For the year ended December 31, 2017, the Company excluded 105,422 shares for the dilutive effect of restricted stock units in calculating diluted earnings per share as the effect was anti-dilutive due to the net loss incurred these periods.