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## EARTHSTONE ENERGY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 

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## Note 10. Net (Loss) Income Per Common Share 

Net (loss) income per common share—basic is calculated by dividing Net (loss) income by the weighted average number of shares of common stock outstanding during the period. Net (loss) income per common share—diluted assumes the conversion of all potentially dilutive securities and is calculated by dividing Net (loss) income by the sum of the weighted average number of shares of common stock, as defined above, outstanding plus potentially dilutive securities. Net (loss) income per common share—diluted considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares, as defined above, would have an anti-dilutive effect. 

A reconciliation of Net (loss) income per common share is as follows: 

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The Class B common stock, $0.001 par value per share of Earthstone (the “Class B Common Stock”), has been excluded, as its conversion would eliminate noncontrolling interest and Net loss attributable to noncontrolling interest of $15.9 million for the year ended December 31, 2020 and Net income attributable to noncontrolling interest of $0.9 million for the year ended December 31, 2019 would be added back to Net (loss) income attributable to Earthstone Energy, Inc. for the years then ended, having no dilutive effect on Net (loss) income per common share attributable to Earthstone Energy, Inc. 

## Note 11. Common Stock 

## Class A Common Stock 

At December 31, 2020 and 2019, there were 30,343,421 and 29,421,131 shares of Class A Common Stock issued and outstanding, respectively. During the years ended December 31, 2020 and 2019, as a result of the vesting and settlement of restricted stock units under the 2014 Plan, Earthstone issued 914,905 and 736,706 shares of Class A Common Stock, respectively, of which 243,924 and 203,394 shares of Class A Common Stock, respectively, were retained as treasury stock and canceled to satisfy the related employee income tax liability. 

## Class B Common Stock 

At December 31, 2020 and 2019, there were 35,009,371 and 35,260,680 shares of Class B Common Stock issued and outstanding, respectively. Each share of Class B Common Stock, together with one EEH Unit, is convertible into one share of Class A Common Stock. During the years ended December 31, 2020 and 2019, 251,309 and 191,498 shares, respectively, of Class B Common Stock and EEH Units were exchanged for an equal number of shares of Class A Common Stock. 

