NOTE 12 EARNINGS (LOSS) PER COMMON SHARE

ASC 260, Earnings per Share, requires companies to treat unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. We have granted and expect to continue to grant to employees restricted stock grants that contain non-forfeitable rights to dividends. Such grants are considered participating securities under ASC 260. As such, we are required to include these grants in the calculation of our basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Basic earnings per share is computed utilizing the two-class method and is calculated based on the weighted-average number of common shares outstanding during the periods presented.

Diluted earnings per share is computed using the weighted-average number of common and common equivalent shares outstanding during the periods utilizing the two-class method for stock options, non-vested restricted stock and performance units.

Under the two-class method of calculating earnings per share, dividends paid and a portion of undistributed net income, but not losses, are allocated to unvested restricted stock grants that receive dividends, which are considered participating securities.

The following table sets forth the computation of basic and diluted earnings per share:


	September 30,
(in thousands, except per share amounts)	2025		2024		2023
Numerator:


Net income (loss) attributable to common shareholders	$	(163,695)	$	344,165	$	434,100

Adjustment for basic (loss) earnings per share:
Earnings allocated to unvested shareholders	(1,399)		(4,726)		(5,863)



Numerator for basic earnings (loss) per share	(165,094)		339,439		428,237

Adjustment for diluted earnings (loss) per share:
Effect of reallocating undistributed earnings of unvested shareholders	—		5		12



Numerator for diluted earnings (loss) per share	$	(165,094)	$	339,444	$	428,249

Denominator:
Denominator for basic earnings (loss) per share - weighted-average shares	99,272		98,857		102,447
Effect of dilutive shares from restricted stock and performance share units	—		210		405
Denominator for diluted earnings (loss) per share - adjusted weighted-average shares	99,272		99,067		102,852




Basic earnings (loss) per common share	$	(1.66)	$	3.43	$	4.18




Diluted earnings (loss) per common share	$	(1.66)	$	3.43	$	4.16

We had a net loss for the fiscal year ended September 30, 2025. Accordingly, our diluted loss per share calculation was equivalent to our basic loss per share calculation since diluted loss per share excluded any assumed exercise of equity awards. These were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable period.

The following potentially dilutive average shares attributable to outstanding equity awards were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive:


(in thousands, except per share amounts)	2025		2024		2023
Potentially dilutive shares excluded as anti-dilutive	2,877		2,355		2,451
Weighted-average price per share	$	52.61	$	60.28	$	62.08

Historical Timeline

Fiscal Year	Filed
2025	Nov 21, 2025	Showing above
2017	Nov 22, 2017

2016	Nov 23, 2016

2015	Nov 25, 2015

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.

Helmerich & Payne, Inc. Earnings Per Share Disclosure

Historical Timeline

About Earnings Per Share Disclosures

Other Available Disclosures