GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION | GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION: The payment obligations under the $275,000 , Term Loan B due in September 2024, the $300,000 , 11.000% per annum senior notes due November 2025, and the $100,000 , Term Loan A due in March 2023 issued by CONSOL Energy are jointly and severally, and also fully and unconditionally, guaranteed by certain subsidiaries of CONSOL Energy. In accordance with positions established by the SEC, the following financial information sets forth separate financial information with respect to the parent, guarantor subsidiaries, CCR, a non-guarantor subsidiary, and the remaining non-guarantor subsidiaries. The principal elimination entries include investments in subsidiaries and certain intercompany balances and transactions. CONSOL Energy, the parent, and a guarantor subsidiary manage several assets and liabilities of all other wholly owned subsidiaries. These include, for example, deferred tax assets, cash and other post-employment liabilities. These assets and liabilities are reflected as parent company or guarantor company amounts for purposes of this presentation. Income Statement for the Three Months Ended June 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 262,965 $ 87,655 $ — $ — $ 350,620 Terminal Revenue — 16,708 — — — 16,708 Freight Revenue — 2,890 964 — — 3,854 Miscellaneous Other Income (Loss) 55,908 (8,869 ) 1,038 19,000 (54,883 ) 12,194 Gain (Loss) on Sale of Assets 1,291 (348 ) (10 ) — — 933 Total Revenue and Other Income 57,199 273,346 89,647 19,000 (54,883 ) 384,309 Costs and Expenses: Operating and Other Costs — 194,580 58,450 418 — 253,448 Depreciation, Depletion and Amortization — 34,815 11,336 — — 46,151 Freight Expense — 2,890 964 — — 3,854 Selling, General and Administrative Costs — 13,335 2,953 — — 16,288 Loss on Debt Extinguishment 1,500 — — — — 1,500 Interest Expense, net 14,227 262 1,557 — — 16,046 Total Costs And Expenses 15,727 245,882 75,260 418 — 337,287 Earnings Before Income Tax 41,472 27,464 14,387 18,582 (54,883 ) 47,022 Income Tax Benefit (1,808 ) — — — — (1,808 ) Net Income 43,280 27,464 14,387 18,582 (54,883 ) 48,830 Less: Net Income Attributable to Noncontrolling Interest — — — — 5,550 5,550 Net Income Attributable to CONSOL Energy Inc. Shareholders $ 43,280 $ 27,464 $ 14,387 $ 18,582 $ (60,433 ) $ 43,280 Balance Sheet at June 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 154,815 $ 361 $ 460 $ 36 $ — $ 155,672 Restricted Cash 14,781 — — 3,915 — 18,696 Accounts and Notes Receivable: Trade — — — 110,454 — 110,454 Other Receivables 21,026 7,671 599 — — 29,296 Inventories — 39,598 11,593 — — 51,191 Prepaid Expenses and Other Assets 9,154 16,353 5,537 — — 31,044 Total Current Assets 199,776 63,983 18,189 114,405 — 396,353 Property, Plant and Equipment: Property, Plant and Equipment — 3,961,814 965,678 — — 4,927,492 Less-Accumulated Depreciation, Depletion and Amortization — 2,275,603 548,745 — — 2,824,348 Total Property, Plant and Equipment-Net — 1,686,211 416,933 — — 2,103,144 Other Assets: Deferred Income Taxes 91,837 — — — — 91,837 Affiliated Credit Facility 137,550 — — — (137,550 ) — Investment in Affiliates 807,972 — — — (807,972 ) — Right of Use Asset - Operating Leases — 64,111 17,994 — — 82,105 Other 35,851 42,650 13,531 — — 92,032 Total Other Assets 1,073,210 106,761 31,525 — (945,522 ) 265,974 Total Assets $ 1,272,986 $ 1,856,955 $ 466,647 $ 114,405 $ (945,522 ) $ 2,765,471 Liabilities and Equity: Current Liabilities: Accounts Payable $ 77,955 $ 18,259 $ 24,811 $ 7,458 $ 2,398 $ 130,881 Accounts Payable (Recoverable)-Related Parties — — 380 — (380 ) — Current Portion of Long-Term Debt 23,185 11,194 3,595 — — 37,974 Other Accrued Liabilities 80,455 122,495 38,117 350 (2,398 ) 239,019 Total Current Liabilities 181,595 151,948 66,903 7,808 (380 ) 407,874 Long-Term Debt: 565,083 144,888 140,646 — (137,550 ) 713,067 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions — 432,495 — — — 432,495 Pneumoconiosis Benefits — 160,184 4,683 — — 164,867 Asset Retirement Obligations — 226,873 10,776 — — 237,649 Workers’ Compensation — 56,484 3,015 — — 59,499 Salary Retirement 57,805 — — — — 57,805 Operating Lease Liability — 53,771 14,695 — — 68,466 Other — 12,967 539 — — 13,506 Total Deferred Credits and Other Liabilities 57,805 942,774 33,708 — — 1,034,287 Total CONSOL Energy Inc. Stockholders’ Equity 468,503 617,345 225,390 106,597 (949,332 ) 468,503 Noncontrolling Interest — — — — 141,740 141,740 Total Liabilities and Equity $ 1,272,986 $ 1,856,955 $ 466,647 $ 114,405 $ (945,522 ) $ 2,765,471 Income Statement for the Three Months Ended June 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 278,023 $ 92,674 $ — $ — $ 370,697 Terminal Revenue — 16,659 — — — 16,659 Freight Revenue — 13,083 4,361 — — 17,444 Miscellaneous Other Income 70,678 5,583 1,036 — (66,928 ) 10,369 Gain (Loss) on Sale of Assets 8 110 (14 ) — — 104 Total Revenue and Other Income 70,686 313,458 98,057 — (66,928 ) 415,273 Costs and Expenses: Operating and Other Costs — 190,023 57,299 873 — 248,195 Depreciation, Depletion and Amortization — 43,065 11,896 — — 54,961 Freight Expense — 13,083 4,361 — — 17,444 Selling, General and Administrative Costs — 12,364 3,341 — — 15,705 Loss on Debt Extinguishment 1,723 — — — — 1,723 Interest Expense, net 20,769 735 1,784 — (1,784 ) 21,504 Total Costs And Expenses 22,492 259,270 78,681 873 (1,784 ) 359,532 Earnings (Loss) Before Income Tax 48,194 54,188 19,376 (873 ) (65,144 ) 55,741 Income Tax Expense 3,032 — — — — 3,032 Net Income (Loss) 45,162 54,188 19,376 (873 ) (65,144 ) 52,709 Less: Net Income Attributable to Noncontrolling Interest — — — — 7,547 7,547 Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 45,162 $ 54,188 $ 19,376 $ (873 ) $ (72,691 ) $ 45,162 Balance Sheet at December 31, 2018: Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 234,536 $ 138 $ 1,003 $ — $ — $ 235,677 Restricted Cash 14,557 — — 14,701 — 29,258 Accounts and Notes Receivable: Trade — — — 87,589 — 87,589 Other Receivables 24,352 15,935 1,068 — — 41,355 Inventories — 37,580 11,066 — — 48,646 Prepaid Expenses and Other Assets 10,883 15,451 5,096 — — 31,430 Total Current Assets 284,328 69,104 18,233 102,290 — 473,955 Property, Plant and Equipment: Property, Plant and Equipment — 3,891,873 946,298 — — 4,838,171 Less-Accumulated Depreciation, Depletion and Amortization — 2,204,896 526,747 — — 2,731,643 Total Property, Plant and Equipment-Net — 1,686,977 419,551 — — 2,106,528 Other Assets: Deferred Income Taxes 77,545 — — — — 77,545 Affiliated Credit Facility 141,129 — — — (141,129 ) — Investment in Affiliates 605,981 — — — (605,981 ) — Other 40,760 47,031 14,908 — — 102,699 Total Other Assets 865,415 47,031 14,908 — (747,110 ) 180,244 Total Assets $ 1,149,743 $ 1,803,112 $ 452,692 $ 102,290 $ (747,110 ) $ 2,760,727 Liabilities and Equity: Current Liabilities: Accounts Payable $ (721 ) $ 102,995 $ 24,834 $ — $ 3,822 $ 130,930 Accounts Payable (Recoverable)-Related Parties (2,291 ) 36,220 3,831 87,593 (125,353 ) — Current Portion of Long-Term Debt 8,157 11,139 3,503 — 112,013 134,812 Other Accrued Liabilities 92,534 105,806 31,916 — (3,822 ) 226,434 Total Current Liabilities 97,679 256,160 64,084 87,593 (13,340 ) 492,176 Long-Term Debt: 577,957 151,202 146,196 — (141,129 ) 734,226 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions — 441,246 — — — 441,246 Pneumoconiosis Benefits — 160,741 4,260 — — 165,001 Asset Retirement Obligations — 226,209 9,775 — — 235,984 Workers’ Compensation — 56,623 3,119 — — 59,742 Salary Retirement 64,172 — — — — 64,172 Other — 16,051 518 — — 16,569 Total Deferred Credits and Other Liabilities 64,172 900,870 17,672 — — 982,714 Total CONSOL Energy Inc. Stockholders’ Equity 409,935 494,880 224,740 14,697 (734,317 ) 409,935 Noncontrolling Interest — — — — 141,676 141,676 Total Liabilities and Equity $ 1,149,743 $ 1,803,112 $ 452,692 $ 102,290 $ (747,110 ) $ 2,760,727 Income Statement for the Six Months Ended June 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 512,342 $ 170,781 $ — $ — $ 683,123 Terminal Revenue — 34,526 — — — 34,526 Freight Revenue — 7,887 2,629 — — 10,516 Miscellaneous Other Income (Loss) 109,700 (6,337 ) 2,349 19,000 (99,226 ) 25,486 Gain (Loss) on Sale of Assets 1,291 (14 ) (5 ) — — 1,272 Total Revenue and Other Income 110,991 548,404 175,754 19,000 (99,226 ) 754,923 Costs and Expenses: Operating and Other Costs — 372,184 110,544 833 — 483,561 Depreciation, Depletion and Amortization — 74,322 22,553 — — 96,875 Freight Expense — 7,887 2,629 — — 10,516 Selling, General and Administrative Costs — 30,698 7,513 — — 38,211 Loss on Debt Extinguishment 24,643 — — — — 24,643 Interest Expense, net 31,291 443 2,908 — — 34,642 Total Costs And Expenses 55,934 485,534 146,147 833 — 688,448 Earnings Before Income Tax 55,057 62,870 29,607 18,167 (99,226 ) 66,475 Income Tax Benefit (2,658 ) — — — — (2,658 ) Net Income 57,715 62,870 29,607 18,167 (99,226 ) 69,133 Less: Net Income Attributable to Noncontrolling Interest — — — — 11,418 11,418 Net Income Attributable to CONSOL Energy Inc. Shareholders $ 57,715 $ 62,870 $ 29,607 $ 18,167 $ (110,644 ) $ 57,715 Income Statement for the Six Months Ended June 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 541,280 $ 180,426 $ — $ — $ 721,706 Terminal Revenue — 31,880 — — — 31,880 Freight Revenue — 26,498 8,833 — — 35,331 Miscellaneous Other Income 160,990 16,601 3,237 — (144,572 ) 36,256 Gain on Sale of Assets — 296 62 — — 358 Total Revenue and Other Income 160,990 616,555 192,558 — (144,572 ) 825,531 Costs and Expenses: Operating and Other Costs — 366,843 109,586 1,568 — 477,997 Depreciation, Depletion and Amortization — 81,722 22,710 — — 104,432 Freight Expense — 26,498 8,833 — — 35,331 Selling, General and Administrative Costs — 22,828 6,361 — — 29,189 Loss on Debt Extinguishment 3,149 — — — — 3,149 Interest Expense, net 41,054 1,495 3,735 — (3,735 ) 42,549 Total Costs And Expenses 44,203 499,386 151,225 1,568 (3,735 ) 692,647 Earnings (Loss) Before Income Tax 116,787 117,169 41,333 (1,568 ) (140,837 ) 132,884 Income Tax Expense 9,217 — — — — 9,217 Net Income (Loss) 107,570 117,169 41,333 (1,568 ) (140,837 ) 123,667 Less: Net Income Attributable to Noncontrolling Interest — — — — 16,097 16,097 Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 107,570 $ 117,169 $ 41,333 $ (1,568 ) $ (156,934 ) $ 107,570 Condensed Statement of Cash Flows for the Six Months Ended June 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Net Cash Provided by (Used in) Operating Activities $ 161,749 $ (43,026 ) $ 47,078 $ — $ — $ 165,801 Cash Flows from Investing Activities: Capital Expenditures — (64,908 ) (18,046 ) — — (82,954 ) Proceeds from Sales of Assets — 1,296 4 — — 1,300 (Investments in), net of Distributions from, Subsidiaries (86,783 ) 95,629 — — (8,846 ) — Net Cash (Used in) Provided by Investing Activities (86,783 ) 32,017 (18,042 ) — (8,846 ) (81,654 ) Cash Flows from Financing Activities: Payments on Finance Leases — (7,242 ) (1,890 ) — — (9,132 ) Net (Payments on) Proceeds from Related Party Long-Term Notes (2,000 ) — 2,000 — — — Proceeds from Term Loan A 26,250 — — — — 26,250 Payments on Term Loan A (3,750 ) — — — — (3,750 ) Payments on Term Loan B (123,062 ) — — — — (123,062 ) Buyback of Second Lien Notes (19,320 ) — — — — (19,320 ) Distributions to Noncontrolling Interest — — (28,809 ) — 17,690 (11,119 ) Shares/Units Withheld for Taxes (4,743 ) 880 (880 ) — — (4,743 ) Repurchases of Common Stock (9,550 ) — — — — (9,550 ) Purchases of CCR Units (119 ) — — — — (119 ) Debt-Related Financing Fees (20,169 ) — — — — (20,169 ) Net Cash (Used in) Provided by Financing Activities $ (156,463 ) $ (6,362 ) $ (29,579 ) $ — $ 17,690 $ (174,714 ) Condensed Statement of Cash Flows for the Six Months Ended June 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Net Cash (Used in) Provided by Operating Activities $ (1,344 ) $ 201,323 $ 78,213 $ — $ — $ 278,192 Cash Flows from Investing Activities: Capital Expenditures — (44,020 ) (12,179 ) — — (56,199 ) Proceeds from Sales of Assets — 1,064 165 — — 1,229 Distributions from, net of (Investments in), Subsidiaries 21,478 (3,959 ) — — (17,519 ) — Net Cash Provided by (Used in) Investing Activities 21,478 (46,915 ) (12,014 ) — (17,519 ) (54,970 ) Cash Flows from Financing Activities: Payments on Finance Leases — (5,186 ) (1,411 ) — — (6,597 ) Net Proceeds from (Payments on) Related Party Long-Term Notes 36,083 — (36,083 ) — — — Payments on Term Loan A (26,250 ) — — — — (26,250 ) Payments on Term Loan B (2,000 ) — — — — (2,000 ) Buyback of Second Lien Notes (20,524 ) — — — — (20,524 ) Distributions to Noncontrolling Interest — — (28,693 ) — 17,519 (11,174 ) Shares/Units Withheld for Taxes — (1,972 ) (899 ) — — (2,871 ) Spin Distribution to CNX Resources — (18,234 ) — — — (18,234 ) Repurchases of Common Stock (3,281 ) — — — — (3,281 ) Debt-Related Financing Fees (1,767 ) — — — — (1,767 ) Net Cash (Used in) Provided by Financing Activities $ (17,739 ) $ (25,392 ) $ (67,086 ) $ — $ 17,519 $ (92,698 ) Statement of Comprehensive Income for the Three Months Ended June 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income $ 43,280 $ 27,464 $ 14,387 $ 18,582 $ (54,883 ) $ 48,830 Other Comprehensive Income: Net Actuarial Gain (Loss) 2,462 — (3 ) — — 2,459 Unrecognized Loss on Derivatives (264 ) — — — — (264 ) Other Comprehensive Income (Loss) 2,198 — (3 ) — — 2,195 Comprehensive Income 45,478 27,464 14,384 18,582 (54,883 ) 51,025 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 5,549 5,549 Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders $ 45,478 $ 27,464 $ 14,384 $ 18,582 $ (60,432 ) $ 45,476 Statement of Comprehensive Income for the Three Months Ended June 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income (Loss) $ 45,162 $ 54,188 $ 19,376 $ (873 ) $ (65,144 ) $ 52,709 Other Comprehensive Income (Loss): Net Actuarial Gain (Loss) 4,184 — (2 ) — — 4,182 Other Comprehensive Income (Loss) 4,184 — (2 ) — — 4,182 Comprehensive Income (Loss) 49,346 54,188 19,374 (873 ) (65,144 ) 56,891 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 7,550 7,550 Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 49,346 $ 54,188 $ 19,374 $ (873 ) $ (72,694 ) $ 49,341 Statement of Comprehensive Income for the Six Months Ended June 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income $ 57,715 $ 62,870 $ 29,607 $ 18,167 $ (99,226 ) $ 69,133 Other Comprehensive Income: Net Actuarial Gain (Loss) 4,919 — (6 ) — 6 4,919 Unrecognized Loss on Derivatives (264 ) — — — — (264 ) Other Comprehensive Income (Loss) 4,655 — (6 ) — 6 4,655 Comprehensive Income 62,370 62,870 29,601 18,167 (99,220 ) 73,788 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 11,416 11,416 Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders $ 62,370 $ 62,870 $ 29,601 $ 18,167 $ (110,636 ) $ 62,372 Statement of Comprehensive Income for the Six Months Ended June 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income (Loss) $ 107,570 $ 117,169 $ 41,333 $ (1,568 ) $ (140,837 ) $ 123,667 Other Comprehensive Income (Loss): Net Actuarial Gain (Loss) 8,183 (4 ) — — 8,179 Other Comprehensive Income (Loss) 8,183 — (4 ) — — 8,179 Comprehensive Income (Loss) 115,753 117,169 41,329 (1,568 ) (140,837 ) 131,846 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 16,098 16,098 Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 115,753 $ 117,169 $ 41,329 $ (1,568 ) $ (156,935 ) $ 115,748 |