Supplemental Guarantor Information | SUPPLEMENTAL GUARANTOR INFORMATION Our CCH Senior Notes are jointly and severally guaranteed by our subsidiaries, CCL, CCP and CCP GP (each a “Guarantor” and collectively, the “Guarantors”) . These guarantees are full and unconditional, subject to certain customary release provisions including (1) the sale, exchange, disposition or transfer (by merger, consolidation or otherwise) of the capital stock or all or substantially all of the assets of the Guarantors, (2) the designation of the Guarantor as an “unrestricted subsidiary” in accordance with the indenture governing the CCH Senior Notes , (3) upon the legal defeasance or covenant defeasance or discharge of obligations under the CCH Indenture and (4) the release and discharge of the Guarantors pursuant to the Common Security and Account Agreement. See Note 9—Debt of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the year ended December 31, 2018 for additional information regarding the CCH Senior Notes . The following is condensed consolidating financial information for CCH (“Parent Issuer”) and the Guarantors . We did not have any non-guarantor subsidiaries as of September 30, 2019 . Condensed Consolidating Balance Sheet September 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 128,848 2,901 — 131,749 Accounts and other receivables — 43,751 — 43,751 Accounts receivable—affiliate — 48,662 — 48,662 Advances to affiliate — 95,021 — 95,021 Inventory — 70,730 — 70,730 Derivative assets — 18,426 — 18,426 Derivative assets—related party — 126 — 126 Other current assets 349 22,759 — 23,108 Other current assets—affiliate — 18 — 18 Total current assets 129,197 302,394 — 431,591 Property, plant and equipment, net 1,311,970 11,061,855 — 12,373,825 Debt issuance and deferred financing costs, net 15,745 — — 15,745 Non-current derivative assets — 9,822 — 9,822 Non-current derivative assets—related party — 1,315 — 1,315 Investments in subsidiaries 11,173,355 — (11,173,355 ) — Other non-current assets, net — 44,466 — 44,466 Total assets $ 12,630,267 $ 11,419,852 $ (11,173,355 ) $ 12,876,764 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ 47 $ 24,409 $ — $ 24,456 Accrued liabilities 66,115 326,671 — 392,786 Accrued liabilities—related party — 1,429 — 1,429 Due to affiliates 325 18,914 — 19,239 Derivative liabilities 76,402 22,473 — 98,875 Other current liabilities — 1,255 — 1,255 Other current liabilities—affiliate — 316 — 316 Total current liabilities 142,889 395,467 — 538,356 Long-term debt, net 10,165,869 — — 10,165,869 Non-current derivative liabilities 95,736 114,586 — 210,322 Deferred tax liabilities — 3,988 (3,988 ) — Other non-current liabilities — 9,849 — 9,849 Other non-current liabilities—affiliate — 844 — 844 Member’s equity 2,225,773 10,895,118 (11,169,367 ) 1,951,524 Total liabilities and member’s equity $ 12,630,267 $ 11,419,852 $ (11,173,355 ) $ 12,876,764 Condensed Consolidating Balance Sheet December 31, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 282,248 6,893 — 289,141 Accounts and other receivables — 24,989 — 24,989 Accounts receivable—affiliate — 21,060 — 21,060 Advances to affiliate — 94,397 — 94,397 Inventory — 26,198 — 26,198 Derivative assets 10,556 5,071 — 15,627 Derivative assets—related party — 2,132 — 2,132 Other current assets 178 15,039 — 15,217 Other current assets—affiliate — 634 (1 ) 633 Total current assets 292,982 196,413 (1 ) 489,394 Property, plant and equipment, net 1,094,671 10,044,154 — 11,138,825 Debt issuance and deferred financing costs, net 38,012 — — 38,012 Non-current derivative assets 7,917 11,115 — 19,032 Non-current derivative assets—related party — 3,381 — 3,381 Investments in subsidiaries 10,194,296 — (10,194,296 ) — Other non-current assets, net 1 31,708 — 31,709 Total assets $ 11,627,879 $ 10,286,771 $ (10,194,297 ) $ 11,720,353 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ 71 $ 16,131 $ — $ 16,202 Accrued liabilities 1,242 160,963 — 162,205 Current debt 168,000 — — 168,000 Due to affiliates — 25,086 — 25,086 Derivative liabilities 6 13,570 — 13,576 Total current liabilities 169,319 215,750 — 385,069 Long-term debt, net 9,245,552 — — 9,245,552 Non-current derivative liabilities 398 8,197 — 8,595 Deferred tax liability — 2,008 (2,008 ) — Member’s equity 2,212,610 10,060,816 (10,192,289 ) 2,081,137 Total liabilities and member’s equity $ 11,627,879 $ 10,286,771 $ (10,194,297 ) $ 11,720,353 Condensed Consolidating Statement of Operations Three Months Ended September 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 219,621 $ — $ 219,621 LNG revenues—affiliate — 166,938 — 166,938 Total revenues — 386,559 — 386,559 Operating costs and expenses (recoveries) Cost of sales (excluding depreciation and amortization expense shown separately below) — 301,957 — 301,957 Cost of sales—affiliate — 1,692 — 1,692 Cost of sales—related party — 23,269 — 23,269 Operating and maintenance expense — 63,533 — 63,533 Operating and maintenance expense—affiliate — 15,874 — 15,874 Development expense — 63 — 63 Development expense—affiliate — 23 — 23 General and administrative expense 732 716 — 1,448 General and administrative expense—affiliate — 3,214 — 3,214 Depreciation and amortization expense 7,047 59,390 — 66,437 Total operating costs and expenses 7,779 469,731 — 477,510 Loss from operations (7,779 ) (83,172 ) — (90,951 ) Other income (expense) Interest expense, net of capitalized interest (90,530 ) — — (90,530 ) Loss on modification or extinguishment of debt (13,793 ) — — (13,793 ) Derivative loss, net (77,838 ) — — (77,838 ) Other expense 643 59 — 702 Total other income (expense) (181,518 ) 59 — (181,459 ) Loss before income taxes (189,297 ) (83,113 ) — (272,410 ) Income tax provision — (343 ) 343 — Net loss $ (189,297 ) $ (83,456 ) $ 343 $ (272,410 ) Condensed Consolidating Statement of Operations Three Months Ended September 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues $ — $ — $ — $ — Operating costs and expenses (recoveries) Cost (cost recovery) of sales (excluding depreciation and amortization expense shown separately below) — (975 ) — (975 ) Operating and maintenance expense (recovery) — (8,502 ) — (8,502 ) Operating and maintenance expense—affiliate — 1,522 — 1,522 Development expense — 49 — 49 General and administrative expense 450 1,029 — 1,479 General and administrative expense—affiliate — 607 — 607 Depreciation and amortization expense 89 3,399 — 3,488 Impairment expense and gain on disposal of assets — (13 ) — (13 ) Total operating costs and expenses (recoveries) 539 (2,884 ) — (2,345 ) Income (loss) from operations (539 ) 2,884 — 2,345 Other income (expense) Derivative gain, net 21,818 — — 21,818 Other income 220 80 (75 ) 225 Total other income 22,038 80 (75 ) 22,043 Net income $ 21,499 $ 2,964 $ (75 ) $ 24,388 Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 351,202 $ — $ 351,202 LNG revenues—affiliate — 441,511 — 441,511 Total revenues — 792,713 — 792,713 Operating costs and expenses (recoveries) Cost of sales (excluding depreciation and amortization expense shown separately below) — 540,622 — 540,622 Cost of sales—affiliate — 1,692 — 1,692 Cost of sales—related party — 59,022 — 59,022 Operating and maintenance expense — 156,205 — 156,205 Operating and maintenance expense—affiliate — 36,580 — 36,580 Development expense — 595 — 595 Development expense—affiliate — 61 — 61 General and administrative expense 1,629 2,898 — 4,527 General and administrative expense—affiliate — 6,776 — 6,776 Depreciation and amortization expense 15,191 130,870 — 146,061 Impairment expense and loss on disposal of assets — 313 — 313 Total operating costs and expenses 16,820 935,634 — 952,454 Loss from operations (16,820 ) (142,921 ) — (159,741 ) Other income (expense) Interest expense, net of capitalized interest (175,340 ) — — (175,340 ) Loss on modification or extinguishment of debt (13,793 ) — — (13,793 ) Derivative loss, net (186,746 ) — — (186,746 ) Other income 2,821 289 (84 ) 3,026 Total other income (expense) (373,058 ) 289 (84 ) (372,853 ) Loss before income taxes (389,878 ) (142,632 ) (84 ) (532,594 ) Income tax provision — (1,980 ) 1,980 — Net loss $ (389,878 ) $ (144,612 ) $ 1,896 $ (532,594 ) Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues $ — $ — $ — $ — Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 172 — 172 Operating and maintenance expense (recovery) — (6,549 ) — (6,549 ) Operating and maintenance expense—affiliate — 2,539 — 2,539 Development expense — 172 — 172 General and administrative expense 999 2,515 — 3,514 General and administrative expense—affiliate — 1,605 — 1,605 Depreciation and amortization expense 114 5,132 — 5,246 Impairment expense and gain on disposal of assets — (13 ) — (13 ) Total operating costs and expenses 1,113 5,573 — 6,686 Loss from operations (1,113 ) (5,573 ) — (6,686 ) Other income (expense) Loss on modification or extinguishment of debt (15,332 ) — — (15,332 ) Derivative gain, net 119,233 — — 119,233 Other income 177 7,833 (7,826 ) 184 Total other income 104,078 7,833 (7,826 ) 104,085 Income before income taxes 102,965 2,260 (7,826 ) 97,399 Income tax provision — (1,225 ) 1,225 — Net income $ 102,965 $ 1,035 $ (6,601 ) $ 97,399 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Cash flows provided by (used in) operating activities $ (100,618 ) $ 91,987 $ (32,240 ) $ (40,871 ) Cash flows from investing activities Property, plant and equipment, net (182,800 ) (1,072,678 ) — (1,255,478 ) Investments in subsidiaries (2,011,271 ) — 2,011,271 — Distributions received from affiliates 1,000,119 — (1,000,119 ) — Other — (2,213 ) — (2,213 ) Net cash used in investing activities (1,193,952 ) (1,074,891 ) 1,011,152 (1,257,691 ) Cash flows from financing activities Proceeds from issuances of debt 2,189,674 — — 2,189,674 Repayments of debt (1,446,000 ) — — (1,446,000 ) Debt issuance and deferred financing costs (5,485 ) — — (5,485 ) Capital contributions 402,981 2,011,272 (2,011,272 ) 402,981 Distributions — (1,032,360 ) 1,032,360 — Net cash provided by financing activities 1,141,170 978,912 (978,912 ) 1,141,170 Net decrease in cash, cash equivalents and restricted cash (153,400 ) (3,992 ) — (157,392 ) Cash, cash equivalents and restricted cash—beginning of period 282,248 6,893 — 289,141 Cash, cash equivalents and restricted cash—end of period $ 128,848 $ 2,901 $ — $ 131,749 Balances per Condensed Consolidating Balance Sheet: September 30, 2019 Parent Issuer Guarantors Eliminations Consolidated Cash and cash equivalents $ — $ — $ — $ — Restricted cash 128,848 2,901 — 131,749 Total cash, cash equivalents and restricted cash $ 128,848 $ 2,901 $ — $ 131,749 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ (8,075 ) $ (23,786 ) $ — $ (31,861 ) Cash flows from investing activities Property, plant and equipment, net (374,390 ) (1,853,975 ) — (2,228,365 ) Investments in subsidiaries (1,876,013 ) — 1,876,013 — Other — 3,705 — 3,705 Net cash used in investing activities (2,250,403 ) (1,850,270 ) 1,876,013 (2,224,660 ) Cash flows from financing activities Proceeds from issuances of debt 2,276,800 — — 2,276,800 Repayments of debt (295,455 ) — — (295,455 ) Debt issuance and deferred financing costs (45,743 ) — — (45,743 ) Debt extinguishment cost (9,108 ) — — (9,108 ) Capital contributions 323,418 1,876,013 (1,876,013 ) 323,418 Net cash provided by financing activities 2,249,912 1,876,013 (1,876,013 ) 2,249,912 Net increase (decrease) in cash, cash equivalents and restricted cash (8,566 ) 1,957 — (6,609 ) Cash, cash equivalents and restricted cash—beginning of period 226,559 — — 226,559 Cash, cash equivalents and restricted cash—end of period $ 217,993 $ 1,957 $ — $ 219,950 |