Net Income Per Common Share

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



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share amounts)	2019		2018		2019		2018
Net income attributable to Earthstone Energy, Inc.	$	11,770	$	224	$	3,343	$	6,195

Net income per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.41	$	0.01	$	0.12	$	0.22
Diluted	$	0.41	$	0.01	$	0.12	$	0.22

Weighted average common shares outstanding
Basic	29,032,842		28,257,376		28,883,907		28,011,298
Add potentially dilutive securities:
Unvested restricted stock units	—		54,383		—		97,067
Unvested performance units	—		—		—		—
Diluted weighted average common shares outstanding	29,032,842		28,311,759		28,883,907		28,108,365

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net income attributable to noncontrolling interest of $14.4 million for the three months ended September 30, 2019 and net income attributable to noncontrolling interest of $3.9 million for the nine months ended September 30, 2019 would be added back to Net income attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net income per common share attributable to Earthstone Energy, Inc.