Net Loss Per Common Share

3 Months Ended

Mar. 31, 2022

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


	Three Months Ended March 31,
(In thousands, except per share amounts)		2022		2021
Net loss attributable to Earthstone Energy, Inc.		$	(33,478)	$	(5,833)

Net loss per common share attributable to Earthstone Energy, Inc.:
Basic and Diluted		$	(0.53)	$	(0.14)


Weighted average common shares outstanding
Basic		63,445,649		42,778,916
Add potentially dilutive securities:
Unvested restricted stock units (1)		—		—
Unvested performance units (1)		—		—
Diluted weighted average common shares outstanding		63,445,649		42,778,916

(1)For the three months ended March 31, 2022 and 2021, the 1,099,800 performance units granted on January 27, 2021 were excluded due to an assumed settlement in cash and the liability treatment described in Note 9. Stock-Based Compensation. For the three months ended March 31, 2022 and 2021, there were no dilutive effects related to unvested restricted stock units or performance units due to the losses for those periods.

The Class B Common Stock, par value $0.001 per share of Earthstone (the “Class B Common Stock and with the Class A Common Stock, the “Common Stock”) has been excluded, as its conversion would eliminate noncontrolling interest and net loss attributable to noncontrolling interest of $18.4 million and $4.7 million for the three months ended March 31, 2022 and 2021, respectively would be added back to Net loss attributable to Earthstone Energy, Inc. for the periods then ended, having no dilutive effect on Net loss per common share attributable to Earthstone Energy, Inc.