Gulfport Energy Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2022

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 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 preferred stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock.

There were 0.2 million potential shares of common stock that were considered dilutive for the Current Successor Quarter. There were no potential shares of common stock that were considered dilutive for the Current Successor YTD Period, Prior Successor Period, Prior Predecessor Quarter, or Prior Predecessor YTD Period. There were 3.8 million shares of potential common shares issuable due to the Company's convertible preferred stock for each of the Current Successor Quarter and Current Successor YTD Period. There were no shares of restricted stock that were considered anti-dilutive during the Current Successor Quarter. During the Current Successor YTD Period, there were 0.2 million shares of restricted stock that were considered anti-dilutive.

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


	Successor				Predecessor
	Three Months Ended June 30, 2022		Period from May 18, 2021 through June 30, 2021		Period from April 1, 2021 through May 17, 2021

Net income (loss)	$	256,580	$	(209,586)	$	242,214
Dividends on preferred stock	(1,380)		(1,031)		—
Participating securities - preferred stock(1)	(39,590)		—		—
Net income (loss) attributable to common stockholders	$	215,610	$	(210,617)	$	242,214
Re-allocation of participating securities	310		—		—
Diluted net income (loss) attributable to common stockholders	$	215,920	$	(210,617)	$	242,214
Basic Shares	20,684		20,321		160,887
Dilutive Shares	20,877		20,321		160,887
Basic EPS	$	10.42	$	(10.36)	$	1.51
Dilutive EPS	$	10.34	$	(10.36)	$	1.51

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


	Successor				Predecessor
	Six Months Ended June 30, 2022		Period from May 18, 2021 through June 30, 2021		Period from January 1, 2021 through May 17, 2021

Net (loss) income	$	(235,395)	$	(209,586)	$	250,994
Dividends on preferred stock	(2,828)		(1,031)		—

Net (loss) income attributable to common stockholders	$	(238,223)	$	(210,617)	$	250,994
Basic Shares	20,961		20,321		160,834
Basic and Dilutive EPS	$	(11.36)	$	(10.36)	$	1.56