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

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2023

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 0.3 million and 0.2 million shares of restricted stock that were considered dilutive for the three and six months ended June 30, 2023, respectively. There were 0.2 million shares of restricted stock that were considered dilutive for the three months ended June 30, 2022. There were no shares of restricted stock that were considered dilutive for the six months ended June 30, 2022. There were 3.3 million potential shares of common stock issuable due to the Company's convertible preferred stock for each of the three and six months ended June 30, 2023. There were 3.8 million potential shares of common stock issuable due to the Company's convertible preferred stock for each of the three and six months ended June 30, 2022. There were 0.2 million shares of restricted stock that were considered anti-dilutive during the six months ended June 30, 2022.

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


	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022
Net income	$	93,687	$	256,580
Dividends on preferred stock	(1,278)		(1,380)
Participating securities - preferred stock(1)	(14,044)		(39,590)
Net income attributable to common stockholders	$	78,365	$	215,610
Re-allocation of participating securities	182		310
Diluted net income attributable to common stockholders	$	78,547	$	215,920
Basic Shares	18,518		20,684
Dilutive Shares	18,805		20,877
Basic EPS	$	4.23	$	10.42
Dilutive EPS	$	4.18	$	10.34

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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.


	Six Months Ended June 30, 2023		Six Months Ended June 30, 2022
Net income (loss)	$	616,741	$	(235,395)
Dividends on preferred stock	(2,585)		(2,828)
Participating securities - preferred stock(1)	(92,611)		—
Net income (loss) attributable to common stockholders	$	521,545	$	(238,223)
Re-allocation of participating securities	1,008		—
Diluted net income (loss) attributable to common stockholders	$	522,553	$	(238,223)
Basic Shares	18,688		20,961
Dilutive Shares	18,930		20,961
Basic EPS	$	27.91	$	(11.36)
Dilutive EPS	$	27.60	$	(11.36)

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