Earnings (Loss) Per Share

12 Months Ended

Dec. 31, 2022

The Company calculates earnings per share under the two-class method. During the third quarter of 2022, the Company granted RSUs to non-employee directors which include non-forfeitable rights to dividends and are therefore considered “participating securities.” Accordingly, effective in the third quarter of 2022, the Company computes earnings per share under the two-class earnings allocation method. The two-class method is an earnings allocation formula that computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share amounts have been computed as (i) net income (loss) (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of basic shares outstanding for the periods presented. Diluted earnings per share amounts have been computed as (i) basic net income attributable to common stockholders (ii) plus the reallocation of distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented. The Company calculates diluted earnings per share under both the two-class method and treasury stock method and reports the more dilutive of the two calculations.

The following table summarizes the basic and diluted earnings per share for the periods presented (in thousands, except per share data):


	Successor						Predecessor
	Year Ended				Period from November 20, 2020 through December 31, 2020		Period from January 1, 2020 through November 19, 2020
	2022		2021


Net income (loss) from continuing operations	$	1,430,463	$	188,960	$	(67,108)	$	(3,865,854)
Distributed and undistributed earnings from continuing operations allocated to participating securities	(182)		—		—		—
Net income (loss) from continuing operations attributable to common stockholders (basic)	1,430,281		188,960		(67,108)		(3,865,854)
Reallocation of distributed and undistributed earnings from continuing operations allocated to participating securities	6		—		—		—
Net income (loss) from continuing operations attributable to common stockholders (diluted)	$	1,430,287	$	188,960	$	(67,108)	$	(3,865,854)

Weighted average common shares outstanding:
Basic weighted average common shares outstanding	30,497		19,792		19,991		317,644
Dilutive effect of share-based awards	1,134		856		—		—
Dilutive effect of warrants	620		—		—		—
Diluted weighted average common shares outstanding	32,251		20,648		19,991		317,644

Basic earnings (loss) per share from continuing operations	$	46.90	$	9.55	$	(3.36)	$	(12.17)
Diluted earnings (loss) per share from continuing operations	$	44.35	$	9.15	$	(3.36)	$	(12.17)

Anti-dilutive weighted average common shares:
Potential common shares	2,901		2,144		1,631		5,216

For the years ended December 31, 2022 and 2021 (Successor), the diluted earnings per share calculation excludes the impact of unvested share-based awards and outstanding warrants that were anti-dilutive. During the period from November 20, 2020 through December 31, 2020 (Successor) and the period from January 1, 2020 through November 19, 2020 (Predecessor), the Company incurred a net loss, and therefore the diluted loss per share calculation for those periods excludes the anti-dilutive effect of unvested share-based awards and outstanding warrants.

Basic earnings per share from discontinued operations was $13.96 for the year ended December 31, 2022 (Successor), $6.60 for the year ended December 31, 2021 (Successor), $0.86 for the period from November 20, 2020 through December 31, 2020 (Successor) and $0.71 for the period from January 1, 2020 through November 19, 2020 (Predecessor). Diluted earnings per share from discontinued operations was $13.20 for the year ended December 31, 2022 (Successor), $6.33 for the year ended December 31, 2021 (Successor), $0.86 for the period from November 20, 2020 through December 31, 2020 (Successor) and $0.71 for the period from January 1, 2020 through November 19, 2020 (Predecessor).