Net (Loss) Income Per Common Share

3 Months Ended

Mar. 31, 2021

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)		2021		2020
Net (loss) income attributable to Earthstone Energy, Inc.		$	(5,833)	$	16,708

Net (loss) income per common share attributable to Earthstone Energy, Inc.:
Basic		$	(0.14)	$	0.57
Diluted		$	(0.14)	$	0.57

Weighted average common shares outstanding
Basic		42,778,916		29,497,428
Add potentially dilutive securities:
Unvested restricted stock units (1)		—		—
Unvested performance units (1)		—		—
Diluted weighted average common shares outstanding		42,778,916		29,497,428

(1)For the three months ended March 31, 2021, the Company had no dilutive effect related to unvested restricted stock units or performance units due to the loss for the period. 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 the period were in excess of the weighted average outstanding fair value for the unvested shares for the same period.

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 loss attributable to noncontrolling interest of $4.7 million for the three months ended March 31, 2021 and net income attributable to noncontrolling interest of $20.0 million for the three months ended March 31, 2020 would be added back to Net (loss) income attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net (loss) income per common share attributable to Earthstone Energy, Inc.