What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-08-04 compared with 2022-05-05 · 109 added, 84 removed, 310 unchanged (38% of the section changed)

34 unchanged sentences

250,000 shares authorized;

36,726 issued and outstanding at March 31, 2022 and 36,675 issued and outstanding at December 31, 2021

36,742 issued and outstanding at June 30, 2022 and 36,675 issued and outstanding at December 31, 2021

Warrants 88,520 88,520

8 unchanged sentences

(In thousands, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Oil, natural gas and NGL $ 69,760 $ 34,196 $ 127,247 $ 67,819

7 unchanged sentences

Employee termination benefits — — — 49

(Gain) loss on derivative contracts 1,064 —

(Gain) loss on sale of assets — ( 19,713 )

Other operating (income) expense, net ( 64 ) ( 48 )

Loss on derivative contracts — — 1,064 —

Gain on sale of assets — — — ( 19,713 )

Other operating income, net ( 51 ) ( 65 ) ( 115 ) ( 113 )

Total expenses 21,253 18,147 43,940 16,708

2 unchanged sentences

Interest expense, net ( 27 ) ( 84 ) ( 179 ) ( 131 )

Other income (expense), net 76 28

Other income, net 12 287 88 315

Total other income (expense) ( 15 ) 203 ( 91 ) 184

11 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited)

(In thousands)

2 unchanged sentences

Shares Amount

Three Months Ended March 31, 2022

Six Months Ended June 30, 2022

Balance at December 31, 2021

5 unchanged sentences

Balance at March 31, 2022 36,726 $ 37 6,981 $ 88,520 $ 1,062,886 $ ( 871,248 ) $ 280,195

Three Months Ended March 31, 2021

Issuance of stock awards, net of cancellations 16 — — — — — —

Stock-based compensation — — — — 440 — 440

— — — — — 48,492 48,492

Balance at June 30, 2022

36,742 $ 37 6,981 $ 88,520 $ 1,063,326 $ ( 822,756 ) $ 329,127

Six Months Ended June 30, 2021

Balance at December 31, 2020 35,928 $ 36 6,734 $ 88,520 $ 1,062,220 $ ( 1,022,710 ) $ 128,066

6 unchanged sentences

Balance at March 31, 2021 36,135 $ 36 6,981 $ 88,520 $ 1,062,437 $ ( 987,667 ) $ 163,326

Issuance of stock awards, net of cancellations 425 1 — — ( 1 ) — —

Stock options exercised and Stock-based compensation — — — — 584 — 584

Cash paid for tax obligations on vested stock awards — — — — ( 594 ) — ( 594 )

— — — — — 16,252 16,252

Balance at June 30, 2021 36,560 $ 37 $ 6,981 $ 88,520 $ 1,062,426 $ ( 971,415 ) $ 179,568

The accompanying notes are an integral part of these condensed consolidated financial statements .

3 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES

4 unchanged sentences

Debt issuance costs amortization — 36

(Gain) loss on derivative contracts 1,064 —

Cash (paid) received on settlement of derivative contracts ( 1,085 ) —

(Gain) loss on sale of assets — ( 19,713 )

Loss on derivative contracts 1,064 —

Cash paid on settlement of derivative contracts ( 1,085 ) —

Gain on sale of assets — ( 19,713 )

Stock-based compensation 754 799

Changes in operating assets and liabilities ( 13,234 ) ( 6,945 )

Net cash provided by (used in) operating activities 32,193 14,331

Net cash provided by operating activities 79,156 33,231

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures for property, plant and equipment ( 11,959 ) ( 4,389 )

Acquisition of assets ( 1,431 ) ( 3,545 )

Purchase of other property and equipment ( 49 ) ( 59 )

6 unchanged sentences

Cash paid for tax obligations on vested stock awards ( 235 ) ( 613 )

Net cash provided by (used in) financing activities ( 320 ) ( 167 )

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS and RESTRICTED CASH 26,254 48,249

Net cash used in financing activities ( 362 ) ( 795 )

NET INCREASE IN CASH, CASH EQUIVALENTS and RESTRICTED CASH 65,661 62,343

CASH, CASH EQUIVALENTS and RESTRICTED CASH, beginning of year 139,524 28,266

3 unchanged sentences

Supplemental Disclosure of Noncash Investing and Financing Activities

Purchase of Plant Property and Equipment in accounts payable $ 680 $ 1,342

Purchase of Plant, Property and Equipment in accounts payables and accrued expenses $ 10,858 $ 1,260

Right-of-use assets obtained in exchange for financing lease obligations $ 117 $ 363

6 unchanged sentences

SandRidge Energy, Inc.

is an oil and natural gas acquisition, development and production company headquartered in Oklahoma City, Oklahoma with a principal focus on developing and producing hydrocarbon resources in the United States.

Principles of Consolidation.

2 unchanged sentences

Interim Financial Statements.

The accompanying unaudited condensed consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes contained in the Company’s 2021 Form 10-K.

Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted, although the Company believes that the disclosures contained herein are adequate to make the information presented not misleading.

1 unchanged sentence

Significant Accounting Policies.

The unaudited condensed consolidated financial statements were prepared in accordance with the accounting policies stated in the Company’s 2021 Form 10-K, as well as the items noted below.

The unaudited condensed consolidated financial statements were prepared in accordance with the accounting policies stated in the Company’s 2021 Form 10-K and 10-K/A, as well as the items noted below.

Use of Estimates.

13 unchanged sentences

Although management believes the estimates used in the areas noted above are reasonable, actual results could differ significantly from those estimates.

Recent Accounting Pronouncements Adopted ASU 2020-04 .

In March 2020, FASB issued ASU No.

2020-04, Reference Rate Reform (Topic 848), to facilitate the effects of reference rate reform on financial reporting.

This ASU provides optional practical expedients and exceptions for applying GAAP provisions to contracts, hedging relationships, and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR"), or other reference rates expected to be discontinued because of reference rate reform, if certain criteria are met.

The provisions of this ASU do not apply to contract modifications made and hedging transactions entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship.

The amendments in ASU 2020-04 are effective, for all entities, as of March 12, 2020 through December 31, 2022.

The Company concluded the ASU did not have a material impact on the consolidated financial statements.

SANDRIDGE ENERGY, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Fair Value Measurements

The Company measures and reports certain assets and liabilities on a fair value basis and has classified and disclosed its fair value measurements using the levels of the fair value hierarchy noted below.

The carrying values of cash, restricted cash, accounts receivable, prepaid expenses, certain other current and non-current assets, accounts payable and accrued expenses, and other current liabilities and other long-term obligations included in the unaudited condensed consolidated balance sheets approximated fair value at March 31, 2022 and December 31, 2021.

Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

3 unchanged sentences

The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

The determination of the fair values, stated below, considers the market for the Company’s financial assets and liabilities, the associated credit risk and other factors.

The determination of the fair values, stated below, considers the market for the Company’s financial

SANDRIDGE ENERGY, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

assets and liabilities, the associated credit risk and other factors.

The Company considers active markets as those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

The Company had liabilities classified in Level 2 of the hierarchy as of December 31, 2021 and none as of March 31, 2022 as described below.

The Company had liabilities classified in Level 2 of the hierarchy as of December 31, 2021 and none as of June 30, 2022 as described below.

Level 2 Fair Value Measurements

Commodity Derivative Contracts.

As applicable, the fair values of the Company’s oil and natural gas fixed price swaps are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets.

Fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs discussed above.

As applicable, the fair values of the Company’s oil, natural gas and NGL fixed price swaps are based upon inputs that are either readily available in the public market, such as oil, natural gas and NGL futures prices, volatility factors and discount rates, or can be corroborated from active markets.

As applicable, if the Company has a commodity derivative contract in place, the fair value is determined through the use of a discounted cash flow model or option pricing model using the applicable inputs discussed above.

The Company applies a weighted average credit default risk rating factor for its counterparties or gives effect to its credit default risk rating, as applicable, in determining the fair value of these derivative contracts.

1 unchanged sentence

Fair Value - Recurring Measurement Basis

There were no open commodity derivative contracts as of March 31, 2022.

The following table summarize the Company’s assets measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

There were no open commodity derivative contracts as of June 30, 2022.

The following table summarizes the Company’s liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

December 31, 2021

Fair Value Measurements

Assets/Liabilities at Fair Value

Liabilities at Fair Value

Commodity derivative contracts $ — $ 200 $ — $ 179 $ 21

2 unchanged sentences

(1) Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists.

The Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements during the three-month periods ended March 31, 2022 and 2021.

The Company did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements as of June 30, 2022 and December 31, 2021.

Commodity Derivatives

The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil, natural gas and NGL.

On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil, natural gas or NGL production sales through the use of commodity derivative contracts.

There were no open commodity derivative contracts as of June 30, 2022.

The Company has not designated any of its derivative contracts as hedges for accounting purposes.

As applicable, if the Company has open derivative contracts, the Company has recorded such contracts at fair value with changes in derivative contract fair values recognized as a gain or loss on derivative contracts in the condensed consolidated income statements.

Commodity derivative contracts were settled on a monthly basis, and the commodity derivative contract valuations were adjusted to the mark-to-market valuation on a quarterly basis.

The following table summarizes derivative activity for the three and six-month periods ended June 30, 2022, and 2021 (in thousands):

SANDRIDGE ENERGY, INC.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Commodity Derivatives

The Company is exposed to commodity price risk, which impacts the predictability of its cash flows from the sale of oil and natural gas.

On occasion, the Company has attempted to manage this risk on a portion of its forecasted oil or natural gas production sales through the use of commodity derivative contracts.

There were no open commodity derivative contracts as of March 31, 2022.

Historically, the Company has not designated any of its derivative contracts as hedges for accounting purposes.

All derivative contracts have been recorded at fair value with changes in derivative contract fair values recognized as a gain or loss on derivative contracts in the condensed consolidated statements of operations.

Commodity derivative contracts were settled on a monthly basis, and the commodity derivative contract valuations were adjusted to the mark-to-market valuation on a quarterly basis.

The following table summarizes derivative activity for the three-month periods ended March 31, 2022, and 2021 (in thousands):

Three Months Ended March 31,

(Gain) loss on commodity derivative contracts $ 1,064 $ —

Cash (paid) received on settlements $ ( 1,085 ) $ —

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Loss on commodity derivative contracts $ — $ — $ 1,064 $ —

Cash paid on settlements $ — $ — $ ( 1,085 ) $ —

M aster Netting Agreements and the Right of Offset.

As applicable, the Company historically had master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the unaudited condensed consolidated balance sheets.

As applicable, the Company has had master netting agreements with all of its commodity derivative counterparties and has presented its derivative assets and liabilities with the same counterparty on a net basis in the unaudited condensed consolidated balance sheets.

As a result of the netting provisions, the Company's maximum amount of loss under commodity derivative transactions due to credit risk is limited to the net amounts due from its counterparties.

There were no open commodity derivatives contracts as of March 31, 2022.

There were no open commodity derivatives contracts as of June 30, 2022.

As of December 31, 2021, the Company’s open commodity derivative contracts were held with one counterparty.

There were no open derivative positions as of March 31, 2022.

There were no open derivative positions as of June 30, 2022.

The following table summarizes (i) the Company's commodity derivative contracts on a gross basis, (ii) the effects of netting assets and liabilities for which the right of offset exists based on master netting arrangements and (iii) for the Company’s net derivative liability positions as of December 31, 2021 were (in thousands):

31 unchanged sentences

Other non-oil and natural gas equipment 1,636 1,575

Buildings and structures 3,603 3,603

Building and structures 3,603 3,603

Financing leases 1,230 1,384

6 unchanged sentences

Acquisitions and Divestitures

On February 5, 2021, the Company sold all of its oil and natural gas properties and related assets of the North Park Basin ("NPB"), in Colorado, for a purchase price of $ 47 million.

The sale closed for net proceeds of $ 39.7 million in cash, which amounts to the purchase price of $ 47 million net of effective date to close date adjustments.

On February 5, 2021, the Company sold all of its oil and natural gas properties and related assets of the North Park Basin ("NPB"), in Colorado, for a gross purchase price of $ 47 million.

The sale closed for net proceeds of $ 38.9 million in cash, net of $ 8.1 million in closing adjustments, primarily for production revenue received prior to closing.

Consequently, the Company allocated a portion of the full cost pool net book value, using the income approach, to the divested oil and gas properties and recognized a reduction of full cost pool assets of $ 22.0 million and a reduction of $ 4.6 million to its non-full cost pool assets.

As the sale significantly altered the relationship between capitalized costs and proved reserves, the Company recognized a $ 19.7 million gain related to the assets sold.

The gain represents net proceeds of $ 39.7 million coupled with the release of revenues in suspense of $ 0.5 million and the relief of asset retirement obligations of $ 6.1 million offset by the reduction of $ 26.6 million in oil and gas properties related to NPB.

The Company recorded a decrease to the sales price of $ 0.8 million as a result of post-closing adjustments made during the second half of the year 2021.

As a result, (Gain) loss on sale of assets decreased to $ 18.9 million for the year ended December 31, 2021.

As the sale significantly altered the relationship between capitalized costs and proved reserves, the Company recognized a $ 19.7 million gain, during the first six months of 2021, related to the assets sold.

During the last six months of 2021 we recognized additional closing adjustments of $ 0.8 million, which reduced the gain on the sale of assets to $ 18.9 million.

The $ 18.9 million gain represents net proceeds of $ 38.9 million coupled with the release of revenues in suspense of $ 0.5 million and the relief of asset retirement obligations of $ 6.1 million offset by the reduction of $ 26.6 million in oil and gas properties related to NPB.

SANDRIDGE ENERGY, INC.

16 unchanged sentences

Additionally, the Company currently expenses all legal costs as they are incurred.

As previously disclosed in the Company's 2021 Form 10-K, there are certain ongoing Cases (as that term is defined in the Company's 2021 Form 10-K).

As previously disclosed in the Company's 2021 Form 10-K and 10-K/A, there are certain ongoing Cases (as that term is defined in the Company's 2021 Form 10-K and 10-K/A).

In each of the Cases, lead plaintiffs seek to recover unspecified damages, interest, costs and expenses incurred in the litigation on behalf of themselves and class members.

14 unchanged sentences

The Company continues to closely monitor and weigh all available evidence, including both positive and negative, in making its determination whether to maintain a valuation allowance.

As a result of the significant weight placed on the Company's cumulative negative earnings position, the Company continued to maintain a full valuation allowance against its net deferred tax asset at March 31, 2022 and December 31, 2021.

As a result, the Company had no federal or state income tax expense or benefit for the three-month periods ended March 31, 2022 and 2021.

As a result of the significant weight placed on the Company's trailing three-year cumulative negative earnings position, the Company continued to maintain a full valuation allowance against its net deferred tax asset at June 30, 2022 and December 31, 2021.

As a result, the Company had no federal or state income tax expense or benefit for the three and six-month periods ended June 30, 2022 and 2021.

Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change.

2 unchanged sentences

Since the 2016 ownership change, the Company has generated additional NOLs and other tax attributes that are not currently subject to an IRC Section 382 limitation.

The Company's ability to use NOLs and other tax attributes to reduce taxable income and income taxes could be materially impacted by a future IRC 382 ownership change.

Future transactions involving the Company's stock, including those outside of the Company's control, could cause an IRC 382 ownership change resulting in a limitation on tax attributes currently not limited and a more restrictive limitation on tax attributes currently subject to the previous IRC 382 limitation.

As of March 31, 2022, the Company had approximately $ 1.6 billion of federal NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation.

Of the $ 1.6 billion of federal NOL carryforwards, $ 0.8 billion expire during the years 2027 through 2037, while $ 0.8 billion do not have an expiration date.

The Company adopted the tax benefits preservation plan, as amended on March 16, 2021, in order to protect the Company’s ability to use its tax NOLs and certain other tax benefits.

As of June 30, 2022, the Company had approximately $ 1.6 billion of federal NOL carryforwards, net of NOLs expected to expire unused due to the 2016 IRC Section 382 limitation.

Of the $ 1.6 billion of federal NOL carryforwards, $ 0.7 billion expire during the years 2028 through 2037, while the remaining $ 0.9 billion do not have an expiration date.

Additionally, the Company had federal tax credits in excess of $ 33.5 million which begin expiring in 2029.

The Company did not have unrecognized tax benefits at March 31, 2022 and December 31, 2021.

The Company did not have unrecognized tax benefits at June 30, 2022 and December 31, 2021.

The Company’s only taxing jurisdiction is the United States (federal and state).

3 unchanged sentences

Common Stock, Performance Share Units, and Stock Options .

At March 31, 2022, the Company had approximately 250.0 million shares of common stock authorized, 36.7 million shares of common stock, par value $ 0.001 per share, issued and outstanding.

Further, at March 31, 2022, the Company had approximately 0.1 million shares of unvested restricted stock awards, 0.4 million shares of unvested restricted stock units, 0.3 million stock options outstanding, and an immaterial number of unvested performance share units.

At June 30, 2022, the Company had approximately 250.0 million shares of common stock authorized, 36.7 million shares of common stock, par value $ 0.001 per share, issued and outstanding.

Further, at June 30, 2022, the Company had zero shares of unvested restricted stock awards, 0.4 million shares of unvested restricted stock units, 0.3 million stock options outstanding, and an immaterial number of unvested performance share units.

The Company has issued approximately 4.9 million Series A warrants and 2.1 million Series B warrants that are exercisable until October 4, 2022 for one share of common stock per warrant at initial prices of $ 41.34 and $ 42.03 per share, respectively, subject to adjustments pursuant to the terms of the warrants, to certain holders of general unsecured claims as defined in the 2016 bankruptcy reorganization plan.

3 unchanged sentences

The Program is in accordance with Rule 10b-18 of the Exchange Act.

Subject to applicable rules

Subject to applicable rules and regulations, repurchases under the Program can be made from time to time in open markets at the Company's discretion and in compliance with safe harbor provisions, or in privately negotiated transactions.

The Program does not require any specific

SANDRIDGE ENERGY, INC.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

and regulations, repurchases under the Program can be made from time to time in open markets at the Company's discretion and in compliance with safe harbor provisions, or in privately negotiated transactions.

The Program does not require any specific number of shares to be acquired, and can be modified or discontinued by the Board at any time.

The Company did not repurchase any common stock under the Program during the quarter ended March 31, 2022.

The following table disaggregates the Company’s revenue by source for the three-month periods ended March 31, 2022 and 2021:

Three Months Ended March 31,

number of shares to be acquired, and can be modified or discontinued by the Board at any time.

The Company did not repurchase any common stock under the Program during the quarter ended June 30, 2022.

The following table disaggregates the Company’s revenue by source for the three and six-month periods ended June 30, 2022 and 2021:

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

(In thousands)

4 unchanged sentences

$ 69,760 $ 34,196 $ 127,247 $ 67,819

(1) March 31, 2021 includes 36 days of production for NPB, which was sold on February 5, 2021.

(1) Six months ended June 30, 2021 includes 36 days of production and related revenues for NPB, which was sold on February 5, 2021.

Oil, natural gas and NGL revenues.

All of the Company’s revenues come from the sale of oil, natural gas and NGLs and are recorded at a point in time when control of the oil, natural gas and NGL production passes to the purchaser at the inlet of the processing plant or pipeline, or the delivery point for onloading to a delivery truck.

As the Company’s purchaser obtain control of the production prior to selling it to other end customers, the Company presents its revenues on a net basis, rather than on a gross basis.

As the Company’s purchaser obtains control of the production prior to selling it to other end customers, the Company presents its revenues on a net basis, rather than on a gross basis.

Pricing for the Company’s oil, natural gas and NGL contracts is variable and is based on either an index price, net of deductions, or a percentage of the sales price obtained by the purchaser, which is also based on index prices.

1 unchanged sentence

Oil, natural gas and NGL revenues are also recorded net of royalties, discounts and allowances, and transportation costs, as applicable.

Taxes assessed by governmental authorities on oil, natural gas and NGL sales are presented separately from revenues and are included in production, ad valorem, and other tax expense in the consolidated statements of operations.

Revenues Receivable.

2 unchanged sentences

Revenues receivable are typically collected the month after the Company delivers the related production to its purchaser.

As of March 31, 2022, and December 31, 2021, the Company had revenues receivable of $ 23.8 million and $ 18.8 million, respectively, and did no t record any bad debt expense on revenues receivable during the three-month periods ended March 31, 2022 and 2021.

As of June 30, 2022, and December 31, 2021, the Company had revenues receivable of $ 27.5 million and $ 18.8 million, respectively.

The Company did no t record any bad debt expense on revenues receivable nor write-offs during the three and six-month periods ended June 30, 2022 and 2021, as the Company’s purchasers of oil, natural gas and NGL have had no issues of payment collectability or lack of credit worthiness with the Company.

SANDRIDGE ENERGY, INC.

5 unchanged sentences

(In thousands, except per share amounts)

Three Months Ended March 31, 2022

Three Months Ended June 30, 2022

Basic earnings per share

7 unchanged sentences

$ 48,492 37,185 $ 1.30

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

Basic earnings per share $ 16,252 36,416 $ 0.45

6 unchanged sentences

$ 16,252 37,345 $ 0.44

Six Months Ended June 30, 2022

Basic earnings per share

$ 83,216 36,667 $ 2.27

Effect of dilutive securities

Restricted stock units — 323

Restricted stock awards — 42

Performance share units (1) — —

Stock options — 75

Diluted earnings per share (2)

$ 83,216 37,107 $ 2.24

Six Months Ended June 30, 2021

Basic earnings per share $ 51,295 36,187 $ 1.42

Effect of dilutive securities

Restricted stock units — 1,019

Restricted stock awards 39

Performance share units (1) — —

Stock options — 38

Diluted earnings per share (2)

$ 51,295 37,283 $ 1.38

____________________

(1) The performance share unit awards are contingently issuable and are considered in the calculation of diluted earnings per share.

The Company assesses the number of awards that would be issuable, if any, under the terms of the agreement if the end of the reporting period were the end of the contingency period.

(2) The incremental shares of potentially dilutive restricted stock units, restricted stock awards and stock options were included for the three-month periods ended March 31, 2022 and 2021 as their effect was dilutive under the treasury stock method.

(3) Includes 0.2 million of performance share units that are no longer contingently issuable.

(2) The incremental shares of potentially dilutive restricted stock units, restricted stock awards and stock options were included for the three and six month periods ended June 30, 2022 and 2021 as their effect was dilutive under the treasury stock method.

Tabl e of Contents

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements