Earnings Per Share

6 Months Ended

Jun. 30, 2025

The Company calculates earnings per share under the two-class method. The Company has granted RSUs to non-employee directors which include non-forfeitable rights to dividends and are therefore considered “participating securities.” Accordingly, the Company computes earnings per share under the two-class earnings allocation method, which computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share amounts have been computed as (i) net income (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of basic shares outstanding for the periods presented. Diluted earnings per share amounts have been computed as (i) basic net income attributable to common stockholders (ii) plus the reallocation of distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented. The Company calculates diluted earnings per share under both the two-class method and treasury stock method and reports the more dilutive of the two calculations.

The following table summarizes the basic and diluted earnings per share for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,


	2025		2024		2025		2024

	(In thousands, except per share data)
Net income (loss)	$	(389,905)	$	213,361	$	(170,068)	$	412,715
Distributed and undistributed earnings allocated to participating securities	2,312		(1,032)		1,425		(1,824)
Net income (loss) attributable to common stockholders (basic)	(387,593)		212,329		(168,643)		410,891
Reallocation of distributed and undistributed earnings allocated to participating securities	(3,604)		10		(2,687)		17
Net income (loss) attributable to common stockholders (diluted)	$	(391,197)	$	212,339	$	(171,330)	$	410,908

Weighted average common shares outstanding:
Basic weighted average common shares outstanding	57,786		48,665		58,420		45,048
Dilutive effect of share-based awards	—		375		81		438
Dilutive effect of warrants	—		876		—		827
Diluted weighted average common shares outstanding	57,786		49,916		58,501		46,313

Basic earnings (loss) per share	$	(6.71)	$	4.36	$	(2.89)	$	9.12
Diluted earnings (loss) per share	$	(6.77)	$	4.25	$	(2.93)	$	8.87

Anti-dilutive weighted average common shares:
Potential common shares	1,067		1,818		980		2,028

For the three and six months ended June 30, 2025 and 2024, the diluted earnings (loss) per share calculation excludes the impact of unvested share-based awards and outstanding warrants that were anti-dilutive.

Chord Energy Corp 10-Q