Net (Loss) Income Per Common Share

Net (loss) income per common share—basic is calculated by dividing Net (loss) income by the weighted average number of shares of common stock outstanding during the period. Net (loss) income per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net (loss) income 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 (loss) income per common share is as follows:



	Three Months Ended March 31,
(In thousands, except per share amounts)	2019			2018
Net (loss) income attributable to Earthstone Energy, Inc.	$	(17,204	)	$	5,321

Net (loss) income per common share attributable to Earthstone Energy, Inc.:
Basic	$	(0.60	)	$	0.19
Diluted	$	(0.60	)	$	0.19

Weighted average common shares outstanding
Basic	28,719,542			27,783,805
Add potentially dilutive securities:
Unvested restricted stock units	—			128,119
Diluted weighted average common shares outstanding	28,719,542			27,911,924

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and Net loss attributable to noncontrolling interest of $21.2 million would be added back to Net (loss) income attributable to Earthstone Energy, Inc., having no dilutive effect on Net (loss) income per common share attributable to Earthstone Energy, Inc. For the three months ended March 31, 2019, the Company excluded 336,759 shares for the dilutive effect of performance units in calculating diluted earnings per share as the effect was anti-dilutive due to the net loss incurred the period.