Earnings Per Share

6 Months Ended

Jun. 30, 2017

12. 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 voting 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.

Potentially dilutive common shares outstanding consist of shares of Class A voting common stock issuable pursuant to stock options, SARs, and 760,000 equity warrants. These securities have no dilutive effect for the six months ended June 30, 2017 and 2016 as the Company reported losses from operations for the periods. The Series A and Series B Preferred Stock are participating securities as they contain rights to receive non-forfeitable dividends at the same rate as common stock. EPS is computed under the two-class method, which is a method of computing EPS when an entity has both common stock and participating securities. Under the two-class method, the income and distributions attributable to participating securities are excluded from the calculation of basic and diluted EPS and the participating securities are excluded from the weighted average shares outstanding. The dilutive effect of the participating securities was calculated under the treasury stock method and the two-class method. The EPS was more dilutive under the two-class method. As such, there is no difference in basic and diluted EPS.

The following table presents unaudited earnings per share of Lonestar Resources US Inc.

Unaudited Earnings Per Share

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Net loss per share of Class A voting common stock:
Basic	$	(1.07	)	$	(1.71	)	$	(0.93	)	$	(3.21	)
Diluted		(1.07	)		(1.71	)		(0.93	)		(3.21	)

Weighted average Class A voting common stock outstanding:
Basic		21,822,015			7,522,025			21,822,015			7,522,025
Diluted		21,822,015			7,522,025			21,822,015			7,522,025