Note 2: Earnings per share

We have not historically presented earnings per share (“EPS”) because our common stock did not previously trade on a public market, either on a stock exchange or in the over-the-counter (“OTC”) market. Accordingly, we were permitted under accounting guidance to omit such disclosure. However, on July 24, 2018, our Class A common stock began trading on the New York Stock Exchange (“NYSE”) under the symbol “CHAP”. From May 26, 2017, through July 23, 2018, our Class A common stock was quoted on the OTCQB tier of the OTC Markets Group Inc. under the symbol “CHPE”. From May 18, 2017, through May 25, 2017, our Class A common stock was quoted on the OTC Pink marketplace under the symbol “CHHP”. Our Class B common stock is not listed or quoted on the OTCQB or any other national exchange. Our Class A and Class B common stock shares equally in dividends and undistributed earnings. Pursuant to our certificate of incorporation, our Class B common stock will convert to Class A common stock at the latest on December 15, 2018. We are presenting basic and diluted EPS for all Successor periods subsequent to our emergence from bankruptcy but are not presenting EPS for any Predecessor period.

We are required under accounting guidance to compute EPS using the two-class method which considers multiple classes of common stock and participating securities. All securities that meet the definition of a participating security are to be included in the computation of basic EPS under the two-class method.

A reconciliation of the components of basic and diluted EPS is presented below:



							Nine months ended September 30, 2018			Period from March 22, 2017 through September 30, 2017
	Three months ended September 30,
(in thousands, except share and per share data)	2018			2017
Numerator for basic and diluted earnings per share
Net loss	$	(12,068	)	$	(19,115	)	$	(45,503	)	$	(17,433	)
Denominator for basic earnings per share
Weighted average common shares - Basic for Class A and Class B	45,333,745			44,982,142			45,272,595			44,982,142
Denominator for diluted earnings per share
Weighted average common shares - Diluted for Class A and Class B (1)	45,333,745			44,982,142			45,272,595			44,982,142
Earnings per share
Basic for Class A and Class B	$	(0.27	)	$	(0.42	)	$	(1.01	)	$	(0.39	)
Diluted for Class A and Class B	$	(0.27	)	$	(0.42	)	$	(1.01	)	$	(0.39	)
Participating securities excluded from earnings per share calculations
Unvested restricted stock awards (2)	1,126,669			1,796,943			1,126,669			1,796,943

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(1)	During the 2017 periods presented, 140,023 warrants were outstanding. All such warrants expired on June 30, 2018. The warrants to purchase shares of our Class A common stock were antidilutive due to the exercise price exceeding the average price of our Class A shares for the periods presented and due to the net losses we incurred.

(2)

Our unvested restricted stock awards are considered to be participating securities as they include non-forfeitable dividend rights in the event a dividend is paid on our common stock. Our participating securities do not participate in undistributed net losses because they are not contractually obligated to do so and hence are not included in the computation of EPS in periods when a net loss occurs. Figures reflect period end amounts.