EARNINGS PER SHARE

Earnings per share is calculated based on income from continuing and discontinued operations less any income attributable to the noncontrolling interest. Income attributable to noncontrolling interests represents third party limited partner unitholders' interests in the earnings of our consolidated subsidiary, Rose Rock. Rose Rock allocates net income to its limited partners based on the distributions pertaining to the current period's available cash as defined by Rose Rock's partnership agreement. After adjusting for the appropriate period's distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to Rose Rock's general partner, limited partners and participating securities in accordance with the contractual terms of Rose Rock's partnership agreement and as further prescribed under the two-class method. Incentive distribution rights do not participate in undistributed earnings.

Basic earnings (loss) per share (“Basic EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings (loss) per share (“Diluted EPS”) includes the dilutive effect of warrants and unvested equity compensation awards.

The following summarizes the calculation of basic earnings (loss) per share for the three months and six months ended June 30, 2013 and 2012 (in thousands, except per share amounts):



	Three Months Ended June 30, 2013						Three Months Ended June 30, 2012
	Continuing Operations		Discontinued Operations		Net		Continuing Operations		Discontinued Operations			Net
Income	$	7,477	$	35	$	7,512	$	7,684	$	(441	)	$	7,243
less: Income attributable to noncontrolling interests	3,943		—		3,943		2,096		—			2,096
Numerator	$	3,534	$	35	$	3,569	$	5,588	$	(441	)	$	5,147
Common stock issued and to be issued pursuant to Plan of Reorganization	41,400		41,400		41,400		41,400		41,400			41,400
Weighted average common stock outstanding issued under compensation plans and warrant exercises	811		811		811		534		534			534
Denominator	42,211		42,211		42,211		41,934		41,934			41,934
Basic earnings (loss) per share	$	0.08	$	—	$	0.08	$	0.13	$	(0.01	)	$	0.12



	Six Months Ended June 30, 2013						Six Months Ended June 30, 2012
	Continuing Operations		Discontinued Operations		Net		Continuing Operations		Discontinued Operations			Net
Income	$	56,011	$	67	$	56,078	$	9,542	$	(189	)	$	9,353
less: Income attributable to noncontrolling interests	9,065		—		9,065		5,579		—			5,579
Numerator	$	46,946	$	67	$	47,013	$	3,963	$	(189	)	$	3,774
Common stock issued and to be issued pursuant to Plan of Reorganization	41,400		41,400		41,400		41,400		41,400			41,400
Weighted average common stock outstanding issued under compensation plans and warrant exercises	745		745		745		520		520			520
Denominator	42,145		42,145		42,145		41,920		41,920			41,920
Basic earnings per share	$	1.11	$	—	$	1.12	$	0.09	$	—		$	0.09

The following summarizes the calculation of diluted earnings (loss) per share for the three months and six months ended June 30, 2013 and 2012 (in thousands, except per share amounts):



	Three Months Ended June 30, 2013						Three Months Ended June 30, 2012
	Continuing Operations		Discontinued Operations		Net		Continuing Operations		Discontinued Operations			Net
Income	$	7,477	$	35	$	7,512	$	7,684	$	(441	)	$	7,243
less: Income attributable to noncontrolling interests	3,943		—		3,943		2,096		—			2,096
Numerator	$	3,534	$	35	$	3,569	$	5,588	$	(441	)	$	5,147
Common stock issued and to be issued pursuant to Plan of Reorganization	41,400		41,400		41,400		41,400		41,400			41,400
Weighted average common stock outstanding issued under compensation plans and warrant exercises	811		811		811		534		534			534
Effect of dilutive securities	315		315		315		199		199			199
Denominator	42,526		42,526		42,526		42,133		42,133			42,133
Diluted earnings (loss) per share	$	0.08	$	—	$	0.08	$	0.13	$	(0.01	)	$	0.12



	Six Months Ended June 30, 2013						Six Months Ended June 30, 2012
	Continuing Operations		Discontinued Operations		Net		Continuing Operations		Discontinued Operations			Net
Income	$	56,011	$	67	$	56,078	$	9,542	$	(189	)	$	9,353
less: Income attributable to noncontrolling interests	9,065		—		9,065		5,579		—			5,579
Numerator	$	46,946	$	67	$	47,013	$	3,963	$	(189	)	$	3,774
Common stock issued and to be issued pursuant to Plan of Reorganization	41,400		41,400		41,400		41,400		41,400			41,400
Weighted average common stock outstanding issued under compensation plans and warrant exercises	745		745		745		520		520			520
Effect of dilutive securities	279		279		279		176		176			176
Denominator	42,424		42,424		42,424		42,096		42,096			42,096
Diluted earnings per share	$	1.11	$	—	$	1.11	$	0.09	$	—		$	0.09

During the three months and six months ended June 30, 2013, we recorded expenses of $6.4 million and $32.2 million, respectively, related to the change in fair value of the warrants. During the three months and six months ended June 30, 2012, we recorded expenses of $3.6 million and $7.5 million related to the change in fair value of the warrants. Because the mark to market valuation of the warrants resulted in losses, the warrants would have been antidilutive and, therefore, were not included in the computation of diluted earnings per share.