Earnings Per Share

12 Months Ended

Dec. 31, 2019

Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of stock options and restricted stock in the periods where such items are dilutive.

On August 30, 2013, 46,743,316 shares of our common stock were distributed to the shareholders of Murphy Oil in connection with the separation. For comparative purposes, we have assumed this amount to be outstanding as of the beginning of each prior period prior to the separation presented in the calculation of weighted average shares outstanding.

On July 24, 2019, the Board of Directors approved an up to $400 million share repurchase program to be executed over the two-year period ending July 2021. Prior to the July authorization, the Company had continued to conduct repurchases under quarterly allocations in line with recent past practice. During 2019, total purchases were made of 1,898,023 common shares for $165.8 million,or $87.35 per share, of which 1,393,626 common shares for $125.0 million were made under the July 2019 authorization, leaving approximately $275.0 million available until July 2021. Previous authorizations for common share repurchases include May 2014, in which 1,040,636 common shares were acquired for an average price (including brokerage fees) of $48.07 per share, October 2014, in which 4,169,349 common shares were repurchased for an average price of $59.96 per share, January 2016, in which 7,489,388 common shares for an average price of $66.76 per share, and after completion of the 2016 program, an additional 379,054 common shares at an average price of $77.20 were repurchased in 2017. During 2018 the Company acquired 1,994,632 common shares at an average price of $72.39.

The following table provides a reconciliation of basic and diluted earnings per share computations for the years ended December 31, 2019, 2018 and 2017 (in millions, except per share amounts):



	Years ended December 31,
(Millions of dollars except per share amounts)	2019		2018		2017
Earnings per common share:
Net income per share - basic
Net income attributable to common stockholders	$	154.8	$	213.6	$	245.3

Weighted average common shares outstanding (in thousands)	31,594		32,674		35,816
Earnings per common share	$	4.90	$	6.54	$	6.85

Earnings per common share - assuming dilution:
Net income per share - diluted
Net income attributable to common stockholders	$	154.8	$	213.6	$	245.3
Weighted average common shares outstanding (in thousands)	31,594		32,674		35,816
Common equivalent shares:
Share-based awards	264		309		340
Weighted average common shares outstanding - assuming dilution (in thousands)	31,858		32,983		36,156

Earnings per common share assuming dilution	$	4.86	$	6.48	$	6.78

We have excluded from the earnings-per-share calculation certain stock options and shares that are considered to be anti-dilutive under the treasury stock method. For the reported periods, the number of time-based restrictive stock units, performance based units and non-qualified stock options that are excluded due to their anti-dilutive nature is immaterial.