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

Annual report pursuant to Section 13 and 15(d)

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 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 years ended December 31, 2023 and December 31, 2022, respectively. There were no shares of restricted stock that were considered dilutive for the Prior Successor Period or Prior Predecessor Period. There were 3.2 million, 3.7 million and 4.1 million potential shares of common stock issuable due to the Company's convertible Preferred Stock for the years ended December 31, 2023, December 31, 2022 and Prior Successor Period, respectively. There were 0.1 million shares of restricted stock that were considered anti-dilutive during the Prior Successor Period.

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


	Successor						Predecessor
	Year Ended December 31, 2023		Year Ended December 31, 2022		Period from May 18, 2021 through December 31, 2021		Period from January 1, 2021 through May 17, 2021
Net income (loss)	$	1,470,916	$	494,701	$	(112,829)	$	250,994
Dividends on Preferred Stock	(4,840)		(5,444)		(4,573)		—
Participating securities - Preferred Stock(1)	(212,360)		(76,401)		—		—
Net income (loss) attributable to common stockholders	$	1,253,716	$	412,856	$	(117,402)	$	250,994
Re-allocation of participating securities	2,475		512		—		—
Diluted net income (loss) attributable to common stockholders	$	1,256,191	$	413,368	$	(117,402)	$	250,994
Basic Shares	18,645		20,185		20,545		160,834
Dilutive Shares	18,902		20,347		20,545		160,834
Basic EPS	$	67.24	$	20.45	$	(5.71)	$	1.56
Dilutive EPS	$	66.46	$	20.32	$	(5.71)	$	1.56

_____________________

(1) Preferred Stock represents participating securities because they participate 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.