What changed in this filing

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Item 1. Financial Statements

2022-11-03 compared with 2022-08-04 · 117 added, 79 removed, 340 unchanged (37% of the section changed)

4 unchanged sentences

(In thousands)

September 30,

2022 December 31,

3 unchanged sentences

Accounts receivable, net 31,075 21,505

Derivative contracts 4,040 —

Prepaid expenses 1,346 626

23 unchanged sentences

250,000 shares authorized;

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

36,865 issued and outstanding at September 30, 2022 and 36,675 issued and outstanding at December 31, 2021

Warrants 88,518 88,520

8 unchanged sentences

(In thousands, except per share data)

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

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

8 unchanged sentences

Employee termination benefits — — — 49

Loss on derivative contracts — — 1,064 —

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

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

(Gain) loss on derivative contracts ( 4,258 ) 4,129 ( 3,194 ) 4,129

(Gain) loss on sale of assets — 761 — ( 18,952 )

Other operating income ( 25 ) ( 202 ) ( 140 ) ( 315 )

Total expenses 17,309 20,125 61,249 36,833

3 unchanged sentences

Other income, net 147 2,396 235 2,711

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

Total other income 135 2,140 44 2,324

Income before income taxes 53,725 28,599 136,941 79,894

Income tax expense (benefit) — — — —

Income tax (benefit) expense — — — —

Net income $ 53,725 $ 28,599 $ 136,941 $ 79,894

13 unchanged sentences

Shares Amount

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Balance at December 31, 2021

2 unchanged sentences

Stock-based compensation — — — — 384 — 384

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

Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — — — ( 235 ) — ( 235 )

— — — — — 34,724 34,724

4 unchanged sentences

Balance at June 30, 2022 36,742 $ 37 6,981 $ 88,520 $ 1,063,326 $ ( 822,756 ) $ 329,127

Issuance of stock awards, net of cancellations 123 — — — — — —

Stock-based compensation — — — — 384 — 384

Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — — — ( 942 ) — ( 942 )

Warrants exercised — — — ( 2 ) 7 — 5

— — — — — 53,725 53,725

Six Months Ended June 30, 2021

Balance at September 30, 2022

36,865 $ 37 6,981 $ 88,518 $ 1,062,775 $ ( 769,031 ) $ 382,299

Nine Months Ended September 30, 2021

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

3 unchanged sentences

Issuance of warrants for general unsecured claims — — 247 — — — —

Cash paid for tax obligations on vested stock awards — — — — ( 19 ) — ( 19 )

Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — — — ( 19 ) — ( 19 )

— — — — — 35,043 35,043

2 unchanged sentences

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

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

Tax withholdings paid in exchange for shares withheld on employee 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

Issuance of stock awards, net of cancellations 114 — — — — — —

Stock-based compensation — — — — 236 — 236

Tax withholdings paid in exchange for shares withheld on employee vested stock awards — — — — ( 286 ) — ( 286 )

— — — — — 28,599 28,599

Balance at September 30, 2021 36,674 $ 37 6,981 $ 88,520 $ 1,062,376 $ ( 942,816 ) $ 208,117

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

3 unchanged sentences

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES

4 unchanged sentences

Debt issuance costs amortization — 57

Loss on derivative contracts 1,064 —

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

Write off of debt issuance costs — 174

(Gain) loss on derivative contracts ( 3,194 ) 4,129

Realized settlement losses on derivative contracts ( 867 ) —

Gain on sale of assets — ( 18,952 )

Stock-based compensation 1,131 1,036

Other 115 107

Changes in operating assets and liabilities ( 12,534 ) ( 9,073 )

5 unchanged sentences

Proceeds from sale of assets 448 38,086

Net cash provided by (used in) investing activities ( 13,133 ) 29,907

Net cash (used in) provided by investing activities ( 32,161 ) 25,867

CASH FLOWS FROM FINANCING ACTIVITIES

Repayments of borrowings — ( 20,000 )

Reduction of financing lease liability ( 295 ) ( 493 )

1 unchanged sentence

Proceeds from exercise of stock options 77 21

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

Proceeds from exercise of warrants 5 —

Tax withholdings paid in exchange for shares withheld on employee vested stock awards ( 1,177 ) ( 899 )

Net cash used in financing activities ( 1,390 ) ( 21,446 )

27 unchanged sentences

The more significant areas requiring the use of assumptions, judgments and estimates include:

oil, natural gas and natural gas liquids (“NGL”) reserves;

oil, natural gas and natural gas liquids reserves;

impairment tests of long-lived assets;

11 unchanged sentences

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 June 30, 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.

1 unchanged sentence

Level 3 Measurement based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e., supported by little or no market activity).

Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement.

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

SANDRIDGE ENERGY, INC.

1 unchanged sentence

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 June 30, 2022 as described below.

Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement.

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

The Company had assets and liabilities classified in Level 2 of the hierarchy as of September 30, 2022 and December 31, 2021, respectively, as described below.

Level 2 Fair Value Measurements

5 unchanged sentences

Fair Value - Recurring Measurement Basis

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):

As of September 30, 2022 and December 31, 2021 the following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

September 30, 2022

Fair Value Measurements

Assets at Fair Value

Commodity derivative contracts $ — $ 4,040 $ — $ — $ 4,040

$ — $ 4,040 $ — $ — $ 4,040

December 31, 2021

5 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 as of June 30, 2022 and December 31, 2021.

Commodity Derivatives

1 unchanged sentence

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

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

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

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 nine-month periods ended September 30, 2022 and 2021 (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

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

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

(Gain) loss on derivative contracts $ ( 4,258 ) $ 4,129 $ ( 3,194 ) $ 4,129

Realized settlement gains (losses) on derivative contracts $ 218 $ — $ ( 867 ) $ —

M aster Netting Agreements and the Right of Offset.

1 unchanged sentence

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 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 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):

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) the Company’s net derivative asset and liability positions as of September 30, 2022 and December 31, 2021 (in thousands):

September 30, 2022

Gross Amounts

5 unchanged sentences

$ 4,040 $ — $ 4,040 $ — $ 4,040

Because we did not designate any of our derivative contracts as hedges for accounting purposes, changes in the fair value of our derivative contracts were recognized as gains and losses in current period earnings.

As a result, and as applicable, our current period earnings could have been significantly affected by changes in the fair value of our commodity derivative contracts.

Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period.

December 31, 2021

Gross Amounts

Gross Amounts Offset

Amounts Net of Offset

Financial Collateral

Derivative contracts - current

$ 200 $ 179 $ 21 $ — $ 21

As of September 30, 2022, the Company's open derivative contracts consisted of natural gas commodity derivative contracts under which we will receive a fixed price for the contract and pay a floating market price to the counterparty over a specified period for a contracted volume.

These commodity derivative contracts consisted of the following:

Notional Units Weighted Average Fixed Price per Unit

Natural Gas Price Swaps:

October 2022 - March 2023 2,088,000 MMBtu $ 8.39

SANDRIDGE ENERGY, INC.

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

As a result, and as applicable, our current period earnings could have been significantly affected by changes in the fair value of our commodity derivative contracts.

Changes in fair value were principally measured based on a comparison of future prices to the contract price at the end of the period.

Fair Value of Derivatives

The following table presents the fair value of the Company’s derivative contracts on a net basis with the same counterparty (in thousands):

Type of Contract Balance Sheet Classification September 30,

Derivative assets

Natural Gas Current assets - Derivative Contracts $ 4,040

Total net derivative contracts $ 4,040

Type of Contract Balance Sheet Classification December 31, 2021

Derivative liabilities

Natural Gas and NGL price swaps Current liabilities - Derivative Contracts $ 21

3 unchanged sentences

Property, plant and equipment consists of the following (in thousands):

September 30,

2022 December 31,

16 unchanged sentences

$ 221,561 $ 190,845

SANDRIDGE ENERGY, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Acquisitions and Divestitures

Overriding Royalty Interest Assets

On April 22, 2021, the Company acquired all of the overriding royalty interest assets of SandRidge Mississippian Trust I (the “Trust”).

The gross purchase price was $ 4.9 million (net $ 3.6 million, given our 26.9 % ownership of the Trust).

North Park Basin Sale

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.

1 unchanged sentence

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, 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.

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.

During the three months ended September 30, 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.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following (in thousands):

September 30,

2022 December 31,

13 unchanged sentences

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.

Although the claims against the Company in each Case have been discharged pursuant to the Plan, the Company remains a nominal defendant because of a technical connection with the Cases, and is necessary for the court to decide all issues and make a proper judgement.

Although the claims against the Company in each Case have been discharged, the Company remains a nominal defendant as the Cases await final judgement.

The Company may also be contractually obligated to indemnify two former officers who are defendants and the SandRidge Mississippian Trust I against losses, claims, damages, liabilities and expenses, including reasonable costs of investigation and attorney’s fees and expenses, which it is required to advance, arising out of the Cases, although the Company disputes any such obligations.

1 unchanged sentence

As of October 2020, we have exhausted all remaining insurance coverage for the costs of indemnification and expect no further reimbursements.

SANDRIDGE ENERGY, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

In light of the status of the Cases and the facts, circumstances and legal theories relating thereto, the Company is not able to determine the likelihood of an outcome in either case or provide an estimate of any reasonably possible loss or range of possible loss related thereto.

2 unchanged sentences

The Company intends to continue to vigorously defend against the Cases in its capacity as a nominal defendant.

SANDRIDGE ENERGY, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

For each interim reporting period, the Company estimates the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis.

2 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 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.

As a result, the Company had no federal or state income tax expense or benefit for the three and nine-month periods ended September 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.

3 unchanged sentences

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.

As of September 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 June 30, 2022 and December 31, 2021.

The Company did not have unrecognized tax benefits at September 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 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.

The warrants contain customary anti-dilution adjustments in the event of any stock split, reverse stock split, reclassification, stock dividend or other distributions.

At September 30, 2022, the Company had approximately 250.0 million shares of common stock authorized, 36.9 million shares of common stock, par value $ 0.001 per share, issued and outstanding.

Further, at September 30, 2022, the Company had an immaterial number of unvested restricted stock awards, 0.3 million shares of unvested restricted stock units, 0.2 million unvested stock options outstanding, and an immaterial number of unvested performance share units.

SANDRIDGE ENERGY, INC.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

The Company issued approximately 4.9 million Series A warrants and 2.1 million Series B warrants that were 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.

The warrants contained customary anti-dilution adjustments in the event of any stock split, reverse stock split, reclassification, stock dividend or other distributions.

During the quarter ended September 30, 2022, warrant holders exercised 91 Series A warrants and 41 Series B warrants for 132 shares of common stock.

Share Repurchase Program.

2 unchanged sentences

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.

AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

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,

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 three or nine-month periods ended September 30, 2022.

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

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

5 unchanged sentences

$ 70,899 $ 46,584 $ 198,146 $ 114,403

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

(1) Nine months ended September 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.

A majority 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 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.

7 unchanged sentences

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

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.

As of September 30, 2022 and December 31, 2021, the Company had revenues receivable of $ 25.4 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 nine-month periods ended September 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.

2 unchanged sentences

Earnings per Share

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings (loss) per share:

The following table summarizes the calculation of weighted average common shares outstanding used in the computation of diluted earnings per share:

Weighted Average Shares Earnings Per Share

(In thousands, except per share amounts)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Basic earnings per share

7 unchanged sentences

$ 53,725 37,150 $ 1.45

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Basic earnings per share $ 28,599 36,577 $ 0.78

6 unchanged sentences

$ 28,599 36,996 $ 0.77

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Basic earnings per share

7 unchanged sentences

$ 136,941 37,121 $ 3.69

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Basic earnings per share $ 79,894 36,318 $ 2.20

9 unchanged sentences

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 and six month periods ended June 30, 2022 and 2021 as their effect was dilutive under the treasury stock method.

(2) The incremental shares of potentially dilutive restricted stock units, restricted stock awards and stock options were included for the three and nine-month periods ended September 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