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 September 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 226,157 $ 75,385 $ — $ — $ 301,542 Terminal Revenue — 16,303 — — — 16,303 Freight Revenue — 2,699 900 — — 3,599 Miscellaneous Other Income (Loss) 20,578 (4,311 ) 1,096 9,701 (15,876 ) 11,188 Gain (Loss) on Sale of Assets 717 (3 ) — — — 714 Total Revenue and Other Income 21,295 240,845 77,381 9,701 (15,876 ) 333,346 Costs and Expenses: Operating and Other Costs — 180,488 53,998 363 — 234,849 Depreciation, Depletion and Amortization — 43,284 11,086 — — 54,370 Freight Expense — 2,699 900 — — 3,599 Selling, General and Administrative Costs — 11,850 2,840 — — 14,690 Loss on Debt Extinguishment 801 — — — — 801 Interest Expense, net 13,739 272 1,587 — — 15,598 Total Costs and Expenses 14,540 238,593 70,411 363 — 323,907 Earnings Before Income Tax 6,755 2,252 6,970 9,338 (15,876 ) 9,439 Income Tax Expense 2,415 — — — — 2,415 Net Income 4,340 2,252 6,970 9,338 (15,876 ) 7,024 Less: Net Income Attributable to Noncontrolling Interest — — — — 2,684 2,684 Net Income Attributable to CONSOL Energy Inc. Shareholders $ 4,340 $ 2,252 $ 6,970 $ 9,338 $ (18,560 ) $ 4,340 Balance Sheet at September 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Assets: Current Assets: Cash and Cash Equivalents $ 92,472 $ 30,191 $ 10,611 $ 57 $ — $ 133,331 Restricted Cash — — — 1,518 — 1,518 Accounts and Notes Receivable: Trade — — — 109,793 — 109,793 Other Receivables 22,772 6,376 56 — — 29,204 Inventories — 37,500 11,339 — — 48,839 Prepaid Expenses and Other Assets 7,125 20,220 7,094 — — 34,439 Total Current Assets 122,369 94,287 29,100 111,368 — 357,124 Property, Plant and Equipment: Property, Plant and Equipment — 3,995,982 977,418 — — 4,973,400 Less-Accumulated Depreciation, Depletion and Amortization — 2,307,111 559,538 — — 2,866,649 Total Property, Plant and Equipment-Net — 1,688,871 417,880 — — 2,106,751 Other Assets: Deferred Income Taxes 91,772 — — — — 91,772 Affiliated Credit Facility 154,155 — — — (154,155 ) — Investment in Affiliates 882,762 — — — (882,762 ) — Right of Use Asset - Operating Leases — 60,556 16,855 — — 77,411 Other 34,187 42,692 13,298 — — 90,177 Total Other Assets 1,162,876 103,248 30,153 — (1,036,917 ) 259,360 Total Assets $ 1,285,245 $ 1,886,406 $ 477,133 $ 111,368 $ (1,036,917 ) $ 2,723,235 Liabilities and Equity: Current Liabilities: Accounts Payable $ 88,838 $ 7,671 $ 23,405 $ 5,406 $ — $ 125,320 Accounts Payable (Recoverable)-Related Parties — — 2,882 — (2,882 ) — Current Portion of Long-Term Debt 25,710 14,906 4,599 — — 45,215 Other Accrued Liabilities 82,441 119,984 38,192 — — 240,617 Total Current Liabilities 196,989 142,561 69,078 5,406 (2,882 ) 411,152 Long-Term Debt: 579,148 108,330 156,240 — (154,155 ) 689,563 Deferred Credits and Other Liabilities: Postretirement Benefits Other Than Pensions — 427,442 — — — 427,442 Pneumoconiosis Benefits — 160,075 4,897 — — 164,972 Asset Retirement Obligations — 231,877 10,939 — — 242,816 Workers’ Compensation — 56,178 2,914 — — 59,092 Salary Retirement 54,622 — — — — 54,622 Operating Lease Liability — 52,208 14,224 — — 66,432 Other — 13,150 547 — — 13,697 Total Deferred Credits and Other Liabilities 54,622 940,930 33,521 — — 1,029,073 Total CONSOL Energy Inc. Stockholders’ Equity 454,486 694,585 218,294 105,962 (1,018,841 ) 454,486 Noncontrolling Interest — — — — 138,961 138,961 Total Liabilities and Equity $ 1,285,245 $ 1,886,406 $ 477,133 $ 111,368 $ (1,036,917 ) $ 2,723,235 Income Statement for the Three Months Ended September 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 221,097 $ 73,700 $ — $ — $ 294,797 Terminal Revenue — 16,115 — — — 16,115 Freight Revenue — 1,832 611 — — 2,443 Miscellaneous Other Income 25,485 5,292 1,003 — (20,802 ) 10,978 Loss on Sale of Assets — (85 ) — — — (85 ) Total Revenue and Other Income 25,485 244,251 75,314 — (20,802 ) 324,248 Costs and Expenses: Operating and Other Costs — 172,569 49,540 672 — 222,781 Depreciation, Depletion and Amortization — 40,183 11,059 — — 51,242 Freight Expense — 1,832 611 — — 2,443 Selling, General and Administrative Costs — 14,627 3,899 — — 18,526 Interest Expense, net 20,441 421 1,560 — (1,560 ) 20,862 Total Costs and Expenses 20,441 229,632 66,669 672 (1,560 ) 315,854 Earnings (Loss) Before Income Tax 5,044 14,619 8,645 (672 ) (19,242 ) 8,394 Income Tax Benefit (690 ) — — — — (690 ) Net Income (Loss) 5,734 14,619 8,645 (672 ) (19,242 ) 9,084 Less: Net Income Attributable to Noncontrolling Interest — — — — 3,350 3,350 Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 5,734 $ 14,619 $ 8,645 $ (672 ) $ (22,592 ) $ 5,734 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 Nine Months Ended September 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 738,499 $ 246,166 $ — $ — $ 984,665 Terminal Revenue — 50,829 — — — 50,829 Freight Revenue — 10,586 3,529 — — 14,115 Miscellaneous Other Income (Loss) 130,278 (10,648 ) 3,445 28,701 (115,102 ) 36,674 Gain (Loss) on Sale of Assets 2,008 (17 ) (5 ) — — 1,986 Total Revenue and Other Income 132,286 789,249 253,135 28,701 (115,102 ) 1,088,269 Costs and Expenses: Operating and Other Costs — 552,672 164,542 1,196 — 718,410 Depreciation, Depletion and Amortization — 117,606 33,639 — — 151,245 Freight Expense — 10,586 3,529 — — 14,115 Selling, General and Administrative Costs — 42,548 10,353 — — 52,901 Loss on Debt Extinguishment 25,444 — — — — 25,444 Interest Expense, net 45,030 715 4,495 — — 50,240 Total Costs and Expenses 70,474 724,127 216,558 1,196 — 1,012,355 Earnings Before Income Tax 61,812 65,122 36,577 27,505 (115,102 ) 75,914 Income Tax Benefit (243 ) — — — — (243 ) Net Income 62,055 65,122 36,577 27,505 (115,102 ) 76,157 Less: Net Income Attributable to Noncontrolling Interest — — — — 14,102 14,102 Net Income Attributable to CONSOL Energy Inc. Shareholders $ 62,055 $ 65,122 $ 36,577 $ 27,505 $ (129,204 ) $ 62,055 Income Statement for the Nine Months Ended September 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Revenue and Other Income: Coal Revenue $ — $ 762,377 $ 254,126 $ — $ — $ 1,016,503 Terminal Revenue — 47,995 — — — 47,995 Freight Revenue — 28,330 9,444 — — 37,774 Miscellaneous Other Income 186,475 21,893 4,240 — (165,374 ) 47,234 Gain on Sale of Assets — 211 62 — — 273 Total Revenue and Other Income 186,475 860,806 267,872 — (165,374 ) 1,149,779 Costs and Expenses: Operating and Other Costs — 539,412 159,126 2,240 — 700,778 Depreciation, Depletion and Amortization — 121,905 33,769 — — 155,674 Freight Expense — 28,330 9,444 — — 37,774 Selling, General and Administrative Costs — 37,455 10,260 — — 47,715 Loss on Debt Extinguishment 3,149 — — — — 3,149 Interest Expense, net 61,495 1,916 5,295 — (5,295 ) 63,411 Total Costs and Expenses 64,644 729,018 217,894 2,240 (5,295 ) 1,008,501 Earnings (Loss) Before Income Tax 121,831 131,788 49,978 (2,240 ) (160,079 ) 141,278 Income Tax Expense 8,527 — — — — 8,527 Net Income (Loss) 113,304 131,788 49,978 (2,240 ) (160,079 ) 132,751 Less: Net Income Attributable to Noncontrolling Interest — — — — 19,447 19,447 Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 113,304 $ 131,788 $ 49,978 $ (2,240 ) $ (179,526 ) $ 113,304 Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Net Cash Provided by (Used in) Operating Activities $ 182,938 $ (27,260 ) $ 67,505 $ — $ — $ 223,183 Cash Flows from Investing Activities: Capital Expenditures — (102,121 ) (29,354 ) — — (131,475 ) Proceeds from Sales of Assets — 2,011 4 — — 2,015 (Investments in), net of Distributions from, Subsidiaries (146,896 ) 173,436 — — (26,540 ) — Net Cash (Used in) Provided by Investing Activities (146,896 ) 73,326 (29,350 ) — (26,540 ) (129,460 ) Cash Flows from Financing Activities: Payments on Finance Leases — (10,931 ) (2,853 ) — — (13,784 ) Net (Payments on) Proceeds from Related Party Long-Term Notes (18,400 ) — 18,400 — — — Proceeds from Term Loan A 26,250 — — — — 26,250 Payments on Term Loan A (7,500 ) — — — — (7,500 ) Payments on Term Loan B (123,062 ) (688 ) — — — (123,750 ) Buyback of Second Lien Notes (35,048 ) — — — — (35,048 ) Proceeds from Asset-Backed Financing 3,757 — — — — 3,757 Purchases of CCR Units (369 ) — — — — (369 ) Repurchases of Common Stock (31,318 ) — — — — (31,318 ) Distributions to Noncontrolling Interest — — (43,214 ) — 26,540 (16,674 ) Shares/Units Withheld for Taxes — (3,865 ) (880 ) — — (4,745 ) Debt-Related Financing Fees (20,628 ) — — — — (20,628 ) Net Cash Used in Financing Activities $ (206,318 ) $ (15,484 ) $ (28,547 ) $ — $ 26,540 $ (223,809 ) Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non-Guarantor Elimination Consolidated Net Cash (Used in) Provided by Operating Activities $ (45,278 ) $ 280,396 $ 95,134 $ — $ — $ 330,252 Cash Flows from Investing Activities: Capital Expenditures — (76,599 ) (20,256 ) — — (96,855 ) Proceeds from Sales of Assets — 1,198 170 — — 1,368 Distributions from, net of (Investments in), Subsidiaries 30,237 (3,959 ) — — (26,278 ) — Net Cash Provided by (Used in) Investing Activities 30,237 (79,360 ) (20,086 ) — (26,278 ) (95,487 ) Cash Flows from Financing Activities: Payments on Finance Leases — (8,894 ) (2,125 ) — — (11,019 ) Net Proceeds from (Payments on) Related Party Long-Term Notes 29,583 — (29,583 ) — — — Payments on Term Loan A (26,250 ) — — — — (26,250 ) Payments on Term Loan B (3,000 ) — — — — (3,000 ) Buyback of Second Lien Notes (20,524 ) — — — — (20,524 ) Purchases of CCR Units (1,142 ) — — — — (1,142 ) Repurchases of Common Stock (9,724 ) — — — — (9,724 ) Spin Distribution to CNX Resources — (18,234 ) — — — (18,234 ) Distributions to Noncontrolling Interest — — (43,041 ) — 26,278 (16,763 ) Shares/Units Withheld for Taxes — (2,011 ) (912 ) — — (2,923 ) Debt Related Financing Fees (2,851 ) — — — — (2,851 ) Net Cash Used in Financing Activities $ (33,908 ) $ (29,139 ) $ (75,661 ) $ — $ 26,278 $ (112,430 ) Statement of Comprehensive Income for the Three Months Ended September 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income $ 4,340 $ 2,252 $ 6,970 $ 9,338 $ (15,876 ) $ 7,024 Other Comprehensive Income (Loss): Net Actuarial Gain (Loss) 2,457 — (5 ) — 5 2,457 Unrecognized Loss on Derivatives (261 ) — — — — (261 ) Other Comprehensive Income (Loss) 2,196 — (5 ) — 5 2,196 Comprehensive Income 6,536 2,252 6,965 9,338 (15,871 ) 9,220 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 2,681 2,681 Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders $ 6,536 $ 2,252 $ 6,965 $ 9,338 $ (18,552 ) $ 6,539 Statement of Comprehensive Income for the Three Months Ended September 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income (Loss) $ 5,734 $ 14,619 $ 8,645 $ (672 ) $ (19,242 ) $ 9,084 Other Comprehensive Income (Loss): Net Actuarial Gain (Loss) 4,177 — (2 ) — 2 4,177 Other Comprehensive Income (Loss) 4,177 — (2 ) — 2 4,177 Comprehensive Income (Loss) 9,911 14,619 8,643 (672 ) (19,240 ) 13,261 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 3,346 3,346 Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 9,911 $ 14,619 $ 8,643 $ (672 ) $ (22,586 ) $ 9,915 Statement of Comprehensive Income for the Nine Months Ended September 30, 2019 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income $ 62,055 $ 65,122 $ 36,577 $ 27,505 $ (115,102 ) $ 76,157 Other Comprehensive Income (Loss): Net Actuarial Gain (Loss) 7,376 — (11 ) — 11 7,376 Unrecognized Loss on Derivatives (525 ) — — — — (525 ) Other Comprehensive Income (Loss) 6,851 — (11 ) — 11 6,851 Comprehensive Income 68,906 65,122 36,566 27,505 (115,091 ) 83,008 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 14,097 14,097 Comprehensive Income Attributable to CONSOL Energy Inc. Shareholders $ 68,906 $ 65,122 $ 36,566 $ 27,505 $ (129,188 ) $ 68,911 Statement of Comprehensive Income for the Nine Months Ended September 30, 2018 (unaudited): Parent Issuer Guarantor CCR Non-Guarantor Non- Elimination Consolidated Net Income (Loss) $ 113,304 $ 131,788 $ 49,978 $ (2,240 ) $ (160,079 ) $ 132,751 Other Comprehensive Income (Loss): Net Actuarial Gain (Loss) 12,356 — (6 ) — 6 12,356 Other Comprehensive Income (Loss) 12,356 — (6 ) — 6 12,356 Comprehensive Income (Loss) 125,660 131,788 49,972 (2,240 ) (160,073 ) 145,107 Less: Comprehensive Income Attributable to Noncontrolling Interest — — — — 19,444 19,444 Comprehensive Income (Loss) Attributable to CONSOL Energy Inc. Shareholders $ 125,660 $ 131,788 $ 49,972 $ (2,240 ) $ (179,517 ) $ 125,663 |