Note J – Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of stock options and restricted stock in the periods where such items are dilutive.

On August 30, 2013, 46,743,316 shares of our common stock were distributed to the shareholders of Murphy Oil in connection with the separation and distribution. For comparative purposes, we have assumed this amount to be outstanding as of the beginning of each prior period prior to the separation and distribution presented in the calculation of weighted average shares outstanding.

The following table provides a reconciliation of basic and diluted earnings per share computations for the three and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2013	2012	2013	2012

Earnings per common share:

Net income attributable to common stockholders	$ 41,729	$ 11,001	$ 141,404	$ 64,510
Weighted average common shares outstanding (in thousands)	46,743	46,743	46,743	46,743
Total earnings per share	$ 0.89	$ 0.24	$ 3.03	$ 1.38

Earnings per common share - assuming dilution:

Net income attributable to common stockholders	$ 41,729	$ 11,001	$ 141,404	$ 64,510
Weighted average common shares outstanding (in thousands)	46,743	46,743	46,743	46,743
Common equivalent shares:
Dilutive options	16	-	16	-
Weighted average common shares outstanding - assuming dilution (in thousands)	46,759	46,743	46,759	46,743
Earnings per share - assuming dilution	$ 0.89	$ 0.24	$ 3.02	$ 1.38

Excluded from the calculation of shares used in the diluted earnings per share calculation for the three months and nine months ended September 30, 2013 are 59,250 anti-dilutive options at a weighted average share price of $40.25.