EARNINGS PER SHARE

On February 28, 2017, upon emergence from Chapter 11 bankruptcy, the Company’s Predecessor equity was cancelled and new equity was issued. Additionally, the Predecessor Company’s 2017 Convertible Notes were cancelled. See Note 2 – Reorganization for further details.

The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the indicated periods (in thousands, except per share amounts):



	Successor						Predecessor
	Three Months Ended March 31, 2018			Period from March 1, 2017 through March 31, 2017			Period from January 1, 2017 through February 28, 2017
Income (numerator):
Basic:
Net income (loss)	$	18,308		$	(259,613	)	$	630,317
Net income attributable to participating securities	(57		)	—			(4,995		)
Net income (loss) attributable to common stock - basic	$	18,251		$	(259,613	)	$	625,322
Diluted:
Net income (loss)	$	18,308		$	(259,613	)	$	630,317
Net income attributable to participating securities	(56		)	—			(4,995		)
Net income (loss) attributable to common stock - diluted	$	18,252		$	(259,613	)	$	625,322
Weighted average shares (denominator):
Weighted average shares - basic	19,998			19,997			5,634
Dilutive effect of stock options	—			—			—
Dilutive effect of warrants	—			—			—
Dilutive effect of convertible notes	—			—			—
Weighted average shares - diluted	19,998			19,997			5,634
Basic income (loss) per share	$	0.91		$	(12.98	)	$	110.99
Diluted income (loss) per share	$	0.91		$	(12.98	)	$	110.99

All outstanding stock options were considered antidilutive during the period from January 1, 2017 through February 28, 2017 (Predecessor) (10,400 shares) because the exercise price of the options exceeded the average price of our common stock for the applicable period. On February 28, 2017, upon emergence from bankruptcy, all outstanding stock options were cancelled.

On February 28, 2017, upon emergence from bankruptcy, the Predecessor Company’s existing common stockholders received warrants to purchase common stock of the Successor Company. See Note 2 – Reorganization. For the three months ended March 31, 2018 (Successor), all outstanding warrants (approximately 3.5 million) were considered antidilutive because the exercise price of the warrants exceeded the average price of our common stock for the applicable period. For the period of March 1, 2017 through March 31, 2017 (Successor), all outstanding warrants (approximately 3.5 million) were antidilutive because we had a net loss for such period.

The Predecessor Company had no outstanding restricted stock units. The board of directors of the Successor Company (the “Board”) received grants of restricted stock units on March 1, 2017. For the period from March 1, 2017 through March 31, 2017 (Successor), all outstanding restricted stock units (62,137) were considered antidilutive because we had a net loss for such period.

For the period from January 1, 2017 through February 28, 2017 (Predecessor), the average price of our common stock was less than the effective conversion price for the 2017 Convertible Notes, resulting in no dilutive effect on the diluted earnings per share computation for such period. On February 28, 2017, upon emergence from bankruptcy, the 2017 Convertible Notes were cancelled. See Note 2 – Reorganization.

During the three months ended March 31, 2018 (Successor), 682 shares of common stock of the Successor Company were issued from authorized shares upon the lapsing of forfeiture restrictions of restricted stock for employees. During the period from March 1, 2017 through March 31, 2017 (Successor), we had no issuances of shares of our common stock. During the period from January 1, 2017 through February 28, 2017 (Predecessor), 47,390 shares of Predecessor Company common stock were issued from authorized shares upon the granting of stock awards and the lapsing of forfeiture restrictions of restricted stock for employees and nonemployee directors.