Net Income (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Reconciliation of Net Income (Loss) Per Common Share

A reconciliation of Net income (loss) per common share is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share amounts)	2022		2021		2022		2021
Net income (loss) attributable to Earthstone Energy, Inc.	$	211,456	$	10,418	$	322,863	$	(4,286)

Net income (loss) attributable to Earthstone Energy, Inc. from assumed conversion of Series A Convertible Preferred Stock (2)	1,068		—		12,388		—

Net income (loss) attributable to Earthstone Energy, Inc. - Diluted	$	212,524	$	10,418	$	335,251	$	(4,286)

Net income (loss) per common share attributable to Earthstone Energy, Inc.:
Basic	$	2.01	$	0.21	$	3.91	$	(0.09)
Diluted	$	1.94	$	0.20	$	3.61	$	(0.09)

Weighted average common shares outstanding
Basic	105,254,778		49,243,185		82,483,635		45,406,952
Add potentially dilutive securities:
Unvested restricted stock units (1)	353,889		525,475		466,453		—
Unvested performance units (1)	2,024,871		2,894,282		2,133,158		—
Series A Convertible Preferred Stock (2)	1,645,123		—		7,761,608		—
Diluted weighted average common shares outstanding	109,278,661		52,662,942		92,844,854		45,406,952

(1)The 1,099,800 performance units granted on January 27, 2021 were excluded for all periods presented due to an assumed settlement in cash and the liability treatment described in Note 9. Stock-Based Compensation. For the nine months ended September 30, 2021, there were no dilutive effects related to unvested restricted stock units or performance units due to the loss for the period.

(2)On April 14, 2022, Earthstone issued 280,000 shares of Series A Convertible Preferred Stock which automatically converted into 25,225,225 shares of Class A Common Stock on July 6, 2022. Under the “If-Converted” method, the shares would have been assumed issued on April 14, 2022, which would have resulted in an additional allocation of Net income (loss) attributable to Earthstone Energy, Inc. of $1.1 million and $12.4 million for the three and nine months ended September 30, 2022, respectively.