Gulfport Energy Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

Basic income or loss per share attributable to common stockholders is computed as (i) net income or loss less (ii) dividends paid to holders of New Preferred Stock less (iii) net income or loss attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common stockholders is computed as (i) basic net income or loss attributable to common stockholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The "if-converted" method is used to determine the dilutive impact for the Company's convertible New Preferred Stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock.

There were no potential shares of common stock that were considered dilutive for the Successor Period, Predecessor Period, or the year ended December 31, 2020. There were 3.9 million shares that were considered anti-dilutive for the year ended December 31, 2019. There were 4.1 million shares of potential common shares issuable due to the Company's New Preferred Stock that were considered anti-dilutive for the Successor Period due to the Company's net loss. There were 0.1 million shares of restricted stock that were considered anti-dilutive during the Successor Period due to the Company's net loss.

Reconciliations of the components of basic and diluted net income per common share are presented in the tables below (in thousands):


	Successor		Predecessor
	Period from May 18, 2021 through December 31, 2021		Period from January 1, 2021 through May 17, 2021		Year Ended December 31, 2020		Year Ended December 31, 2019
Net (loss) income	$	(112,829)	$	250,994	$	(1,625,133)	$	(2,002,358)
Dividends on New Preferred Stock	(4,573)		—		—		—
Participating securities - New Preferred Stock(1)	—		—		—		—
Net (loss) income attributable to common stockholders	$	(117,402)	$	250,994	$	(1,625,133)	$	(2,002,358)
Basic shares	20,545		160,834		160,231		160,341
Basic and dilutive EPS	$	(5.71)	$	1.56	$	(10.14)	$	(12.49)

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(1) New Preferred Stock represents participating securities because they participate in any dividends on shares of common stock on a pari passu, pro rata basis. However, New Preferred Stock does not participate in undistributed net losses.