Net Income Per Common Share

Net income per common share—basic is calculated by dividing Net income by the weighted average number of shares of common stock outstanding during the period (Class A Common Stock for the three months ended March 31, 2018 and Common Stock for the three months ended March 31, 2017). Net income per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net 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 income per common share is as follows:



	Three Months Ended March 31,
(In thousands, except per share amounts)	2018		2017
Net income attributable to Earthstone Energy, Inc.	$	5,321	$	729

Net income per common share attributable to Earthstone Energy, Inc.:
Basic	$	0.19	$	0.03
Diluted	$	0.19	$	0.03

Weighted average common shares outstanding
Basic	27,783,805		22,276,996
Add potentially dilutive securities:
Unvested restricted stock units	128,119		308,478
Diluted weighted average common shares outstanding	27,911,924		22,585,474

Class B Common Stock has been excluded, as its conversion would eliminate noncontrolling interest and Net income attributable to noncontrolling interest of $6.9 million would be added back to Net income attributable to Earthstone Energy, Inc., having no dilutive effect on Net income per common share attributable to Earthstone Energy, Inc.