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:



	Years Ended December 31,
(In thousands, except per share amounts)	2019		2018
Net income attributable to Earthstone Energy, Inc.	$	719	$	42,325
Net income per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.02	$	1.50
Diluted	$	0.02	$	1.50
Weighted average common shares outstanding
Basic	28,983,354		28,153,885
Add potentially dilutive securities:
Unvested restricted stock units	—		63,889
Unvested performance units	377,531		—
Diluted weighted average common shares outstanding	29,360,885		28,217,774

The Class B common stock, $0.001 par value per share of Earthstone (the “Class B Common Stock”), has been excluded, as its conversion would eliminate noncontrolling interest and Net income attributable to noncontrolling interest of $0.9 million for the year ended December 31, 2019 would be added back to Net income attributable to Earthstone Energy, Inc. for the year then ended, having no dilutive effect on Net income per common share attributable to Earthstone Energy, Inc.