14. Earnings Per Share
Basic EPS is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the applicable period. Diluted EPS is computed by dividing income by the weighted-average number of shares of common stock outstanding, increased by incremental shares that would be outstanding if potentially dilutive non-participating securities were converted to common stock as calculated using the treasury stock method. EPS for the periods were:
SuccessorPredecessor
Year Ended December 31, 2025Year Ended December 31, 2024May 18 through December 31, 2023January 1 through May 17, 2023
Numerator: (Millions of Dollars)
Net Income (Loss)$(219)$1,013 $143 $465 
Less:
Net income (loss) attributable to noncontrolling interest— 15 (14)
Net Income (Loss) Attributable to Stockholders$(219)$998 $134 $479 
Denominator: (Thousands)
Weighted-Average Number of Common Shares Outstanding - Basic45,692 54,254 59,029  
Warrants— — 84 — 
Restricted stock units— 354 166 — 
Performance stock units— 1,878 120 — 
Weighted-Average Number of Common Shares Outstanding - Diluted45,692 56,486 59,399  
Earnings per Share - Basic$(4.79)$18.40 $2.27 N/A
Earnings per Share - Diluted(4.79)17.67 2.26 N/A
There were 151,505 RSUs and 1,631,614 PSUs excluded from dilutive EPS for the year ended December 31, 2025 (Successor) because the Company generated a net loss. No shares were excluded from diluted EPS for the year ended December 31, 2024 (Successor). 134,798 PSUs were excluded from diluted EPS for the period from May 18 through December 31, 2023 (Successor) due to their anti-dilutive nature. These awards are excluded from the calculation of EPS because the performance conditions have not been met during the reporting period.
For the period from January 1 through May 17, 2023 (Predecessor), there were no outstanding shares of common stock.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 28, 2025
2015Feb 29, 2016

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.