XML 28 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Earnings per Share
12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Earnings per Share

NOTE 4.  EARNINGS PER SHARE

The following table reconciles the number of shares used in calculating the basic and diluted earnings per share for the years ended December 31:

 

(Dollars in thousands, except per share amounts)

 

2018

 

 

2017

 

 

2016

 

Net income

 

$

122,880

 

 

$

86,453

 

 

$

10,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted-average shares outstanding

 

 

60,533,615

 

 

 

40,824,420

 

 

 

40,797,806

 

Incremental shares due to:

 

 

 

 

 

 

 

 

 

 

 

 

Performance shares

 

 

230,437

 

 

 

362,509

 

 

 

200,164

 

Restricted stock units

 

 

33,969

 

 

 

40,459

 

 

 

35,470

 

Stock portion of earnings and profits distribution

 

 

1,015,698

 

 

 

 

 

 

 

Diluted weighted-average shares outstanding

 

 

61,813,719

 

 

 

41,227,388

 

 

 

41,033,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share

 

$

2.03

 

 

$

2.12

 

 

$

0.27

 

Diluted net income per share

 

$

1.99

 

 

$

2.10

 

 

$

0.27

 

 

For stock-based awards, the dilutive effect is calculated using the treasury stock method. Under this method, the dilutive effect is computed as if the awards were exercised at the beginning of the period (or at time of issuance, if later) and assumes the related proceeds were used to repurchase common stock at the average market price during the period. Related proceeds include future compensation cost associated with the stock award.

At December 31, 2018, 2017 and 2016, there were 41,980, 250 and 503 stock-based awards, respectively, which were excluded from the calculation of earnings per share because they were anti-dilutive. Anti-dilutive stock-based awards could be dilutive in future periods.

In February 2018, we issued 22.0 million shares in connection with the Deltic merger. On August 30, 2018, the board of directors approved a special distribution of $222.0 million, or approximately $3.54 per share. The special distribution amount equaled the company’s determination of the accumulated earnings and profits of Deltic as of the merger date and was distributed in order to maintain the company’s qualification as a REIT for U.S. federal income tax purposes. The special distribution was paid on November 15, 2018, to stockholders of record on September 27, 2018. Common stockholders had the option to elect to receive payment of the special distribution in the form of stock or cash, with the total cash payment to all stockholders limited to no more than 20%, or $44.4 million (Cash Amount), of the total distribution. The number of shares distributed was determined based upon common stockholder elections and the volume weighted average price for the company’s common stock over the period from November 12 through November 14 of $36.88. As such, the company issued 4,814,673 shares of its common stock and distributed $44.4 million for the Cash Amount.  The special distribution shares are included in basic weighted-average shares outstanding from November 15, 2018, through December 31, 2018, and diluted weighted-average shares outstanding from August 30, 2018, to November 14, 2018. See Note 2: Merger with Deltic for further discussion on the merger. Additionally, on February 14, 2019 the board of directors approved a quarterly cash dividend of $0.40 per share payable on March 29, 2019 to stockholders of record as of March 8, 2019.

On April 26, 2016 the Company announced that our Board of Directors authorized management to repurchase up to $60.0 million of common stock over a 24-month period. During 2016 we repurchased 169,625 shares at a cost of $6.0 million. No shares were repurchased in 2018 or 2017 under this repurchase plan.

On August 30, 2018, our board of directors authorized management to repurchase up to $100 million of common stock with no time limit set for the repurchase. No shares were repurchased in 2018. We retire shares upon repurchase. Any excess repurchase price over par is recorded in accumulated deficit.