Granite Ridge Resources, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| (in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
| Net income | $ | 18,759 | $ | 81,099 | $ | 262,344 | |||||||||||
| Participating basic earnings (a) | (211) | (152) | — | ||||||||||||||
| Basic earnings attributable to common stockholders | 18,548 | 80,947 | 262,344 | ||||||||||||||
| Reallocation of participating earnings | — | — | — | ||||||||||||||
| Diluted earnings attributable to common stockholders | $ | 18,548 | $ | 80,947 | $ | 262,344 | |||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||
| Weighted average common shares outstanding – basic | 130,189 | 133,093 | 132,923 | ||||||||||||||
| Dilutive performance stock units | 29 | 10 | — | ||||||||||||||
| Dilutive stock options | 9 | 6 | — | ||||||||||||||
| Vesting Shares | — | — | 151 | ||||||||||||||
| Weighted average common shares outstanding – diluted | 130,227 | 133,109 | 133,074 | ||||||||||||||
| Net income per common share: | |||||||||||||||||
| Basic | $ | 0.14 | $ | 0.61 | $ | 1.97 | |||||||||||
| Diluted | $ | 0.14 | $ | 0.61 | $ | 1.97 | |||||||||||
| (a) Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends with the common stockholders of the Company. Participating earnings represent the distributed and undistributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so. | |||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Number of antidilutive common shares: | |||||||||||||||||
| Antidilutive performance stock units | 44,649 | 23,428 | — | ||||||||||||||
| Antidilutive stock options | 491,745 | 303,805 | — | ||||||||||||||
| Total antidilutive common shares | 536,394 | 327,233 | — | ||||||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.