2. Earnings Per Share

6 Months Ended

Sep. 30, 2014

Per share amounts:

2. Earning Per Share

Basic earnings per share attributable to Earthstone shareholders is computed by dividing net income attributable to Earthstone shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share attributable to Earthstone shareholders is computed by dividing the net income attributable to Earthstone shareholders by the weighted average number of common shares outstanding during the period adjusted to include the effects of potentially dilutive securities.  Potentially dilutive securities include incremental shares issuable upon the vesting of common shares issued to the employees and directors of Earthstone.

The amounts used in computing earnings per share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows:

	Three Months Ended				Six Months Ended
	09/30/14		09/30/13		09/30/14		09/30/13
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Net income attributable to Earthstone
Energy, Inc. shareholders	$	1,114,000	$	1,224,000	$	2,111,000	$	1,917,000
Weighted average number of shares
used in basic earnings per share		1,718,964		1,710,445		1,719,003		1,710,445
Effects of dilutive securities:
Unvested common shares *		9,830		-		8,801		-
Weighted average number of shares
used in diluted earnings per share		1,728,794		1,710,445		1,727,804		1,710,445
Basic earnings per share attributable to
Earthstone Energy, Inc. shareholders	$	0.65	$	0.72	$	1.23	$	1.12
Diluted earnings per share attributable to
Earthstone Energy, Inc. shareholders	$	0.64	$	0.72	$	1.22	$	1.12

* As of September 30, 2013, we have excluded unvested common shares outstanding from the calculation of diluted earnings per share, as the inclusion of these shares would have been anti-dilutive.