Earnings per Common Share

6 Months Ended

Jun. 30, 2023

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,
		2023		2022	2023		2022
(In Thousands)
Net income attributable to common shares	$	77,353	$	407,563	$	275,461	$	679,435
Adjustment of interest expense attributable to Convertible Notes		—		1,691		108		3,999
Adjustment for inducement payments		—		4,697		—		4,697
Diluted net income attributable to common stockholders		77,353		413,951		275,569		688,131
Basic weighted average shares outstanding		18,406		16,801		18,165		16,124
Effect of dilutive securities		729		1,799		1,126		1,725
Convertible Notes (a)		—		2,852		168		3,513
Diluted weighted average shares outstanding		19,135		21,452		19,459		21,362

(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, 2023. 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.