EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

We compute basic and diluted earnings per share (EPS) using the two-class method required for participating

securities. Certain of our restricted and performance stock awards were considered participating securities because they had non-forfeitable dividend rights at the same rate as our Predecessor common stock.

Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income available to common stockholders. In loss periods, no allocation is made to participating securities because participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. Weighted-average shares were calculated based on the number of days in the Predecessor and Successor periods. For diluted EPS, the basic shares outstanding are adjusted by adding all potentially dilutive securities.

The following table presents the calculation of basic and diluted EPS.


	Successor		Predecessor
	November 1, 2020 - December 31, 2020		January 1, 2020 - October 31, 2020		Years ended December 31,
					2019		2018
(in millions, except per share amounts)
Basic EPS calculation
Net income (loss)	$	(125)	$	1,996	$	99	$	429
Less: Net income attributable to noncontrolling interests	2		(107)		(127)		(101)
Net (loss) income attributable to common stock	(123)		1,889		(28)		328
Less: Net income allocated to participating securities	—		(22)		—		(7)
Modification of noncontrolling interest(a)	—		138		—		—
Net (loss) income available to common stockholders	$	(123)	$	2,005	$	(28)	$	321
Weighted-average common shares outstanding	83.3		49.4		49.0		47.4
Basic EPS	$	(1.48)	$	40.59	$	(0.57)	$	6.77

Diluted EPS calculation
Net income (loss)	$	(125)	$	1,996	$	99	$	429
Less: Net income attributable to noncontrolling interests	2		(107)		(127)		(101)
Net (loss) income attributable to common stock	(123)		1,889		(28)		328
Less: Net income allocated to participating securities	—		(22)		—		(7)
Modification of noncontrolling interest(a)	—		138		—		—
Net (loss) income available to common stockholders	$	(123)	$	2,005	$	(28)	$	321
Weighted-average common shares outstanding - Basic	83.3		49.4		49.0		47.4
Dilutive effect of potentially dilutive securities	—		0.2		—		—
Weighted-average common shares outstanding - Diluted	83.3		49.6		49.0		47.4
Diluted EPS	$	(1.48)	$	40.42	$	(0.57)	$	6.77
Weighted-average antidilutive shares	4.4		4.0		3.1		1.6

(a) Modification of noncontrolling interest relates to the deemed redemption of ECR's noncontrolling interest in the Ares JV in the third quarter of 2020. For more information on the Ares JV and the Settlement Agreement, see Note 7 Joint Ventures.