Earnings Per Share

12 Months Ended

Dec. 31, 2021

We have two classes of common stock in the form of Class A Common Stock and Class B Common Stock. However, only shares of Class A Common Stock are entitled to dividends, and shares of Class B Common Stock do not have rights to participate in dividends or undistributed earnings. We apply the two-class method for purposes of calculating earnings per share (“EPS”). The two-class method determines earnings per share of common stock and participating securities according to dividends or dividend equivalents declared during the period and each security's respective participation rights in undistributed earnings and losses.

As described in NOTE 1 – Organization and Basis of Presentation, our financial statements have been retrospectively recast to reflect the historical accounts of Independence and the Contributed Entities on a combined basis due to the Merger Transactions and Independence Reorganization, respectively. Net income (loss) for periods prior to the Merger Transactions is allocated to our Predecessor as our Predecessor's Class A Units were exchanged for shares of Class B Common Stock in connection with the Merger Transactions. Net income (loss) attributable to Crescent Energy is allocated to Class A Common Stock and Class B Common Stock based on the participation rights of each class to share in undistributed earnings and losses after giving effect to dividends declared during the period, if any.

The following table sets forth the computation of basic and diluted net income (loss) per share:


	Year Ended December 31,
	2021		2020		2019
	(in thousands, except unit and per unit amounts)
Numerator:
Net income (loss)	$	(432,227)	$	(216,124)	$	46,709
Less: net (income) loss attributable to Predecessor	339,168		118,649		(45,839)
Less: net (income) loss attributable to noncontrolling interests	14,922		97,475		(870)
Less: net (income) loss attributable to redeemable noncontrolling interests	58,761		—		—
Net income (loss) attributable to Crescent Energy	$	(19,376)	$	—	$	—
Denominator:
Weighted-average Class A common stock outstanding - basic and diluted (1)	41,954,385
Weighted-average Class B common stock outstanding - basic and diluted	127,536,463
Net income (loss) per share:
Class A common stock - basic and diluted (1)	$	(0.46)
Class B common stock - basic and diluted	$	—

(1)Represents weighted-average Class A common stock outstanding and net loss per share of Class A common stock for the period subsequent to the Merger Transactions.