Earnings per Common Share

6 Months Ended

Jun. 30, 2022

Earnings per Common Share

Earnings per Common Share

11. Earnings per Common Share

The Company computes basic net income per share using the weighted average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities may consist of warrants, restricted stock units, and convertible debt. The dilutive effect of outstanding warrants and restricted stock units is reflected in diluted earnings per share by application of the treasury stock method whereas the convertible debt uses the if converted method.

The following table provides the basic and diluted earnings per share by reconciling the numerators and denominators of the computations:

		Three Months Ended June 30,			Six Months Ended June 30,
		2022		2021	2022		2021
(In Thousands)
Net income attributable to common shares	$	407,563	$	27,866	$	679,435	$	21,824
Adjustment of interest expense attributable to Convertible Notes		1,691		—		3,999		—
Adjustment for inducement payments		4,697		—		4,697		—
Diluted net income attributable to common stockholders		413,951		27,866		688,131		21,824
Basic weighted average shares outstanding		16,801		15,294		16,124		15,289
Effect of dilutive securities		1,799		1,462		1,725		1,309
Convertible Notes (a)		2,852		—		3,513		—
Diluted weighted average shares outstanding		21,452		16,756		21,362		16,598

(a) Diluted weighted average common shares outstanding includes the dilutive effect had the Company's Convertible Notes been converted at the beginning of the year ended December 31, 2022. If converted by the holder, the Company may settle in cash, shares of the Company's common stock or a combination thereof, at the Company's election. The Capped Call Transaction is anti-dilutive and is excluded from the calculation of diluted earnings per share.