NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2021

Basic net income (loss) per share is calculated by dividing net income (loss) attributable to Class A common shareholders by the weighted average number of shares of Class A Common Stock outstanding during the period. Class C Common Stock is excluded from the weighted average shares outstanding for the calculation of basic net income (loss) per share, as holders of Class C Common Stock are not entitled to any dividends or liquidating distributions.

The Company uses the “if-converted method” to determine the potential dilutive effect of (i) an assumed exchange of outstanding Common Units of Altus Midstream (and the cancellation of a corresponding number of shares of outstanding Class C Common Stock) for shares of Class A Common Stock, (ii) an assumed exercise of the outstanding public and private warrants for shares of Class A Common Stock and (iii) an assumed exchange of the outstanding Preferred Units of Altus Midstream for shares of Class A Common Stock. The dilutive effect of any earn-out consideration payable in shares is only included in periods for which the underlying conditions for the issuance are met.

The computation of basic and diluted net income (loss) per share for the periods presented in the consolidated financial statements is shown in the table below.


	Three Months Ended June 30,
	2021					2020(1)
	Income		Shares	Per Share		Loss		Shares	Per Share

	(In thousands, except per share data)
Basic:
Net income (loss) attributable to Class A common shareholders	$	11,663	3,746	$	3.11	$	(951)	3,746	$	(0.25)

Effect of dilutive securities:
Redeemable noncontrolling interest — Apache limited partner	$	16,345	12,500			$	—	—
Redeemable noncontrolling interest — Preferred Unit limited partners	$	14,826	16,342			$	—	—

Diluted(2)(3)(4):
Net income (loss) attributable to Class A common shareholders	$	42,834	32,588	$	1.31	$	(951)	3,746	$	(0.25)


	Six Months Ended June 30,
	2021					2020(1)
	Income		Shares	Per Share		Loss		Shares	Per Share

	(In thousands, except per share data)
Basic:
Net income (loss) attributable to Class A common shareholders	$	11,843	3,746	$	3.16	$	(9,032)	3,746	$	(2.41)

Effect of dilutive securities:
Redeemable noncontrolling interest — Apache limited partner	$	—	—			$	(37,331)	12,500
Redeemable noncontrolling interest — Preferred Unit limited partners	$	38,442	16,342			$	—	—

Diluted(2)(3)(4):
Net income (loss) attributable to Class A common shareholders	$	50,285	20,088	$	2.50	$	(46,363)	16,246	$	(2.85)

(1)This period presented has been revised to reflect the Company’s fair value change of its underlying warrants. Refer to Note 1—Summary of Significant Accounting Policies, see the section titled Revision of Previously Issued Consolidated Financial Statements for Immaterial Adjustment for further information.

(2)The effect of an assumed exchange of the outstanding Preferred Units of Altus Midstream for shares of Class A Common Stock would have been anti-dilutive for the three and six months ended June 30, 2020.

(3)The effect of an assumed exchange of the outstanding public and private warrants for shares of Class A Common Stock would have been anti-dilutive for all periods presented.

(4)The effect of the exchange of outstanding Common Units of Altus Midstream (and the cancellation of a corresponding number of shares of outstanding Class C Common Stock) would have been anti-dilutive for the three months ended June 30, 2020 and six months ended June 30, 2021.

Further discussion of the Preferred Units and associated embedded features can be found in Note 10—Series A Cumulative Redeemable Preferred Units and Note 13—Fair Value Measurements, respectively. Earn-out consideration granting Apache the right to receive additional shares of Class A Common Stock is not included in the earnings per share calculation above, as the conditions for issuance were not satisfied for any of the periods presented.