Earnings Per Share

9 Months Ended

Sep. 30, 2018

Note 12. Earnings Per Share

The following sets forth the calculation of earnings (loss) per share, or EPS, for the three and nine months ended September 30, 2018 and 2017 (in thousands, except per share amounts). In the calculation of basic net income (loss) per share attributable to common stockholders, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common stockholders, if any, after recognizing distributed earnings. The Company’s participating securities do not participate in undistributed net losses because they are not contractually obligated to do so.


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator:
Net income (loss) available to WRD	$	11,523	$	(10,804)	$	(118,345)	$	35,814
Less: Preferred stock dividends		6,756		6,450		22,106		6,523
Less: Undistributed earnings allocated to participating securities		1,233		—		—		3,234
Net income (loss) available to common stockholders	$	3,534	$	(17,254)	$	(140,451)	$	26,057

Denominator:
Weighted-average common shares outstanding (in thousands) (1) (2)		99,639		99,142		99,433		95,369
Basic EPS	$	0.04	$	(0.17)	$	(1.41)	$	0.27
Diluted EPS (1) (2)	$	0.04	$	(0.17)	$	(1.41)	$	0.27

(1)

The Company used the two-class method for both basic and diluted EPS. Restricted shares were excluded from the calculation of diluted EPS due to their antidilutive effect as we were in a loss position for the nine months ended September 30, 2018. For the three months ended September 30, 2018, 546 incremental restricted shares were excluded in the calculation of diluted EPS under the treasury stock method. For the three and nine months ended September 30, 2018, 32,402 shares and 32,349 shares, were excluded in the calculation of diluted EPS due to their antidilutive effect under the if-converted method.

(2)

The Company used the two-class method for both basic and diluted EPS. For the three months ended September 30, 2017, restricted shares were excluded in the calculation of diluted EPS due to their antidilutive effect as we were in a loss position. For the nine months ended September 30, 2017, 481 incremental restricted shares were excluded in the calculation of diluted EPS due to their antidilutive effect under the treasury stock method. For the three and nine months ended September 30, 2017, 10,696 and 31,400 shares, respectively, were excluded in the calculation of diluted EPS due to their antidilutive effect under the if-converted method.

WildHorse Resource Development Corp 10-Q