Archaea Energy Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Earnings (Loss) Per Share

Net Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2022

NOTE 18 – Net Earnings (Loss) Per Share

The Archaea Merger was accounted for as a reverse recapitalization and is treated as the equivalent of Legacy Archaea receiving proceeds for the issuance of the outstanding Class A and Class B shares, as well as the warrants, of Rice Acquisition Corp. accompanied by a recapitalization. Therefore, Class A Common Stock is deemed to be outstanding beginning at the Closing due to the reverse recapitalization.

The Company’s basic earnings per share (“EPS”) of Class A Common Stock is computed based on the average number of

shares of Class A Common Stock outstanding for the period. Diluted EPS includes the effects of the Company’s outstanding RSUs and Private Placement Warrants, unless the effects are anti-dilutive to EPS.

The following provides a reconciliation between basic and diluted EPS attributable to Class A Common Stock for the three months ended March 31, 2022 and 2021.


	Three Months Ended March 31,
(in thousands, except per share amounts)	2022		2021
Net income (loss) attributable to Class A Common Stock	$	(18,427)	$	—
Class A Common Stock
Average number of shares outstanding - basic	66,376		—
Average number of shares outstanding - diluted	66,376		—
Net income (loss) per share of Class A Common Stock
Basic and diluted	$	(0.28)	$	—

The following potential common shares were excluded from diluted EPS for the three months ended March 31, 2022 as the Company had a net loss for the period: 6,771,000 weighted-average warrants and 835,015 weighted-average RSUs.