RANGE RESOURCES CORP Earnings Per Share Disclosure
(5) NET INCOME PER COMMON SHARE
Basic income per share attributable to common stockholders is computed as (i) income attributable to common stockholders (ii) less income allocable to participating securities (iii) divided by weighted average basic shares outstanding. Diluted income per share attributable to common stockholders is computed as (i) basic income attributable to common stockholders (ii) plus diluted adjustments to income allocable to participating securities (iii) divided by weighted average diluted shares outstanding. Diluted net income per share is calculated under both the two class method and the treasury stock method and the more dilutive of the two calculations is presented. The following table sets forth a reconciliation of net income to basic income or loss attributable to common stockholders and to diluted income or loss attributable to common stockholders (in thousands except per share amounts):
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Net income as reported |
$ |
658,024 |
|
|
$ |
266,340 |
|
|
$ |
871,142 |
|
Participating basic earnings (a) |
|
(1,298 |
) |
|
|
(1,298 |
) |
|
|
(14,971 |
) |
Basic net income attributed to common stockholders |
|
656,726 |
|
|
|
265,042 |
|
|
|
856,171 |
|
Reallocation of participating earnings (a) |
|
9 |
|
|
|
8 |
|
|
|
159 |
|
Diluted net income attributed to common stockholders |
$ |
656,735 |
|
|
$ |
265,050 |
|
|
$ |
856,330 |
|
Net income per common share: |
|
|
|
|
|
|
|
|
|||
Basic |
$ |
2.76 |
|
|
$ |
1.10 |
|
|
$ |
3.61 |
|
Diluted |
$ |
2.74 |
|
|
$ |
1.09 |
|
|
$ |
3.57 |
|
(a) |
Restricted stock Liability-Classified Awards represent participating securities (discussed in Note 10) because they participate in nonforfeitable dividends or distributions with common equity owners. Income allocable to participating securities represents the distributed and undistributed earnings attributable to the participating securities. Participating securities, however, do not participate in undistributed net losses. |
The following table details basic weighted average common shares outstanding and diluted weighted average common shares outstanding (in thousands):
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Denominator: |
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding – basic |
|
237,943 |
|
|
|
240,689 |
|
|
|
236,986 |
|
Effect of dilutive securities |
|
1,846 |
|
|
|
2,056 |
|
|
|
2,851 |
|
Weighted average common shares outstanding – diluted |
|
239,789 |
|
|
|
242,745 |
|
|
|
239,837 |
|
Weighted average common shares outstanding – basic excludes 471,000 shares of restricted stock Liability-Classified Awards held in our deferred compensation plans (although all awards are issued and outstanding upon grant) for the period ended December 31, 2025 compared to 1.2 million shares for the period ended December 31, 2024 and 4.1 million shares for the period ended December 31, 2023. Equity grants of 5,000 shares for the year ended December 31, 2025, no shares for the year ended December 31, 2024 and 3,000 shares for the year ended December 31, 2023 were outstanding but not included in the computation of diluted net income because the grant prices were greater than the average market price of the common shares and would be anti-dilutive to the computations.
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.