Less: Cimarex redeemable preferred stock dividends

[Table of Contents](#i1852a2ea91e948d98ea7c44fc3e188ea_7)The following is a calculation of basic and diluted earnings per share:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  |  | Three Months Ended June 30, |  | Six Months Ended June 30, |  |  |
| (In millions, except per share amounts) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Income (Numerator) |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income |  | $ | 1,229  |  |  | $ | 30  |  |  | $ | 1,837  |  |  | $ | 156  |  |  |  |  |  |
| Less: dividends attributable to participating securities |  | (1) |  |  | —  |  |  | (3) |  |  | —  |  |  |  |  |  |
| Less: Cimarex redeemable preferred stock dividends |  | —  |  |  | —  |  |  | (1) |  |  | —  |  |  |  |  |  |
| Net income available to common stockholders |  | $ | 1,228  |  |  | $ | 30  |  |  | $ | 1,833  |  |  | $ | 156  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Shares (Denominator) |  |  |  |  |  |  |  |  |  |  |  |  |
| Weighted-average shares - Basic |  | 803  |  |  | 400  |  |  | 806  |  |  | 399  |  |  |  |  |  |
| Dilution effect of stock awards at end of period |  | 5  |  |  | 3  |  |  | 3  |  |  | 3  |  |  |  |  |  |
| Weighted-average shares - Diluted |  | 808  |  |  | 403  |  |  | 809  |  |  | 402  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |
| Basic |  | $ | 1.53  |  |  | $ | 0.08  |  |  | $ | 2.28  |  |  | $ | 0.39  |  |  |  |  |  |
| Diluted |  | $ | 1.52  |  |  | $ | 0.08  |  |  | $ | 2.27  |  |  | $ | 0.39  |  |  |  |  |  |

The following is a calculation of weighted-average shares excluded from diluted EPS due to anti-dilutive effect:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  |  | Three Months Ended June 30, |  | Six Months Ended June 30, |  |  |
| (In millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |
| Weighted-average stock awards excluded from diluted EPS due to the anti-dilutive effect calculated using the treasury stock method |  | —  |  |  | —  |  |  | 1  |  |  | 1  |  |  |  |  |  |
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13. Related Party TransactionsFrom time to time, Helmerich & Payne, Inc. (“H&P”) provides contract drilling services to the Company. The Company incurred drilling costs of approximately $2 million and $5 million related to these services during the three and six months ended June 30, 2022, respectively.Hans Helmerich, a director of the Company, is the Chairman of the Board of Directors of H&P. 14. Restructuring CostsIn connection with the Merger, the Company incurred certain merger-related restructuring costs that are primarily related to workforce reductions and the associated employee severance benefits that were triggered by the Merger. The Company recognized $33 million of restructuring expenses during 2022 related to the accrual of employee-related severance and termination benefits associated with the expected termination of certain Cimarex employees.The following table summarizes the Company’s restructuring liabilities:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| (In millions) |  | Six Months Ended June 30, 2022 |
| Balance at beginning of period |  | $ | 43  |  |
| Additions to merger-related restructuring costs |  | 33  |  |
| Payments of merger-related restructuring costs |  | (7) |  |
| Balance at end of period |  | $ | 69  |  |

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