1 SOUTHERN MINERAL CORPORATION Exhibit 11.1 COMPUTATION OF EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Quarter Ended Quarter Ended September 30, 1996 September 30, 1995 Fully Fully Primary Diluted Primary Diluted ------------------------------------------------- Net Earnings (loss) $ 627 $ 627 $ 92 $ 92 ================================================= Weighted average number of common shares outstanding 6,469 6,469 6,275 6,275 Excess of shares issuable upon exercise of stock options over shares deemed retired under the "modified treasury stock" method 856 983 0 0 ------------------------------------------------- Weighted average number of common and dilutive common equivalent shares outstanding 7,325 7,452 6,275 6,275 ================================================= Earnings (loss) per common and common equivalent share $ 0.09 $ 0.08 $ 0.01 $ 0.01 ================================================= Nine Months Ended Nine Months Ended September 30, 1996 September 30, 1995 Fully Fully Primary Diluted Primary Diluted ------------------------------------------------- Net Earnings (loss) $2,072 $2,072 $ (18) $ (18) Weighted average number of common shares outstanding 6,461 6,461 5,507 5,507 Excess of shares issuable upon exercise of stock options over shares deemed retired under the "modified treasury stock" method 545 685 0 0 ------------------------------------------------- Weighted average number of common and dilutive common equivalent shares outstanding 7,006 7,146 5,507 5,507 ================================================= Earnings (loss) per common and common equivalent share $ 0.30 $ 0.29 $ (0.00) $(0.00) =================================================