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 March 31,
(In thousands, except per share amounts)	2020		2019
Net income (loss) attributable to Earthstone Energy, Inc.	$	16,708	$	(17,204	)

Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.57	$	(0.60	)
Diluted	$	0.57	$	(0.60	)

Weighted average common shares outstanding
Basic	29,497,428		28,719,542
Add potentially dilutive securities:
Unvested restricted stock units (1)	—		—
Unvested performance units (1)	—		—
Diluted weighted average common shares outstanding	29,497,428		28,719,542

(1)For the three months ended March 31, 2020, the Company had no dilutive effect related to unvested restricted stock units or performance units as, under the treasury stock method, the proceeds from the average unrecognized expense for both during the period were in excess of the weighted average outstanding fair value for the unvested shares for the same period.

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and net income (loss) attributable to noncontrolling interest of $20.0 million for the three months ended March 31, 2020 would be added back to Net income (loss) attributable to Earthstone Energy, Inc. for the period then ended, having no dilutive effect on Net income (loss) per common share attributable to Earthstone Energy, Inc.