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. 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)	2019		2018		2019			2018
Net income (loss) attributable to Earthstone Energy, Inc.	$	8,777	$	650	$	(8,427	)	$	5,971

Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.30	$	0.02	$	(0.29	)	$	0.21
Diluted	$	0.30	$	0.02	$	(0.29	)	$	0.21

Weighted average common shares outstanding
Basic	28,895,893		27,987,509		28,808,205			27,886,220
Add potentially dilutive securities:
Unvested restricted stock units	—		48,543		—			81,201
Unvested performance units	332,993		—		—			—
Diluted weighted average common shares outstanding	29,228,886		28,036,052		28,808,205			27,967,421

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net income attributable to noncontrolling interest of $10.8 million for the three months ended June 30, 2019 and net loss attributable to noncontrolling interest of $10.5 million for the six months ended June 30, 2019 would be added back to Net income (loss) attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net income (loss) per common share attributable to Earthstone Energy, Inc. For the six months ended June 30, 2019, the Company excluded 348,224 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.