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, 2024

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 share-based awards that were considered anti-dilutive for the three months ended June 30, 2024, and 0.4 million share-based awards that were considered dilutive for the six months ended June 30, 2024. There were 0.3 million and 0.2 million share-based awards that were considered dilutive for the three months and six months ended June 30, 2023, respectively. There were 3.1 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, 2024. 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.

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, 2024		Three Months Ended June 30, 2023
Net (loss) income	$	(26,212)	$	93,687
Dividends on preferred stock	(1,095)		(1,278)
Participating securities - preferred stock(1)	—		(14,044)
Net (loss) income attributable to common stockholders	$	(27,307)	$	78,365
Re-allocation of participating securities	—		182
Diluted net (loss) income attributable to common stockholders	$	(27,307)	$	78,547
Basic Shares	18,144		18,518
Dilutive Shares	18,144		18,805
Basic EPS	$	(1.51)	$	4.23
Dilutive EPS	$	(1.51)	$	4.18

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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, 2024		Six Months Ended June 30, 2023
Net income	$	25,823	$	616,741
Dividends on preferred stock	(2,200)		(2,585)
Participating securities - preferred stock(1)	(3,469)		(92,611)
Net income attributable to common stockholders	$	20,154	$	521,545
Re-allocation of participating securities	64		1,008
Diluted net income attributable to common stockholders	$	20,218	$	522,553
Basic Shares	18,169		18,688
Dilutive Shares	18,573		18,930
Basic EPS	$	1.11	$	27.91
Dilutive EPS	$	1.09	$	27.60

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