Earnings Per Share

12 Months Ended

Dec. 31, 2016

13. Earnings Per Share

In accordance with the provisions of current authoritative guidance, basic earnings or loss per share shown on the Consolidated Statements of Operations is computed on the basis of the weighted average number of common shares outstanding during the periods. Diluted earnings or loss per share is computed based upon the weighted average number of common shares outstanding plus the assumed issuance of common shares for all potentially dilutive securities. The Company includes the number of stock options in the calculation of diluted weighted average shares outstanding when the grant date or exercise prices are less than the average market prices of the Company’s Class A common stock for the period. When a loss from operations exists, all potentially dilutive common shares outstanding are anti-dilutive and therefore excluded from the calculation of diluted weighted average shares outstanding. There is no dilutive effect for the years ended December 31, 2016 and 2015 as the Company reported a loss from operations for those periods.

The following table presents unaudited earnings per share of Lonestar Resources US Inc., assuming that the 1 for 2 reverse stock split upon Reorganization had occurred at the beginning of the year ended December 31, 2015:

Unaudited Earnings Per Share (After Reorganization)

	Year Ended
	December 31,
	2016			2015
Net income (loss) per common share:
Basic	$	(11.64	)	$	(3.63	)
Diluted		(11.64	)		(3.63	)

Weighted average common shares outstanding:
Basic		8,106,931			7,521,788
Diluted		8,106,931			7,521,788