NOTE 26—GUARANTOR SUBSIDIARIES FINANCIAL INFORMATION:

The payment obligations under the $1,500,000, 8.000% per annum notes due April 1, 2017, the $1,250,000, 8.250% per annum notes due April 1, 2020, and the $250,000, 6.375% per annum notes due March 1, 2021 issued by CONSOL Energy are jointly and severally, and also fully and unconditionally guaranteed by substantially all subsidiaries of CONSOL Energy. In accordance with positions established by the Securities and Exchange Commission (SEC), the following financial information sets forth separate financial information with respect to the parent, CNX Gas, a guarantor subsidiary, the remaining guarantor subsidiaries and the 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 Year Ended December 31, 2011:



	Parent Issuer			CNX Gas Guarantor		Other Subsidiary Guarantors			Non- Guarantors		Elimination			Consolidated
Sales—Outside	$	—		$	751,767	$	4,678,910		$	234,998	$	(4,862	)	$	5,660,813
Sales—Gas Royalty Interests	—			66,929		—			—		—			66,929
Sales—Purchased Gas	—			4,344		—			—		—			4,344
Freight—Outside	—			—		231,536			—		—			231,536
Other Income (including equity earnings)	876,233			58,923		63,161			26,309		(871,006		)	153,620
Total Revenue and Other Income	876,233			881,963		4,973,607			261,307		(875,868		)	6,117,242
Cost of Goods Sold and Other Operating Charges	108,681			326,597		2,740,011			228,291		97,609			3,501,189
Gas Royalty Interests’ Costs	—			59,377		—			—		(46		)	59,331
Purchased Gas Costs	—			3,831		—			—		—			3,831
Related Party Activity	4,767			—		(25,720		)	1,986		18,967			—
Freight Expense	—			—		231,347			—		—			231,347
Selling, General and Administrative Expense	—			112,339		164,179			1,485		(102,427		)	175,576
Depreciation, Depletion and Amortization	12,194			206,821		396,979			2,403		—			618,397
Interest Expense	235,370			9,398		3,911			53		(388		)	248,344
Taxes Other Than Income	950			34,023		306,450			3,037		—			344,460
Abandonment of Long- Lived Assets	—			—		115,817			—		—			115,817
Transaction and Financing Fees	14,907			—		—			—		—			14,907
Loss on Debt Extinguishment	16,090			—		—			—		—			16,090
Total Costs	392,959			752,386		3,932,974			237,255		13,715			5,329,289
Earnings (Loss) Before Income Taxes	483,274			129,577		1,040,633			24,052		(889,583		)	787,953
Income Tax Expense (Benefit)	(149,223		)	51,876		243,705			9,098		—			155,456
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	632,497		$	77,701	$	796,928		$	14,954	$	(889,583	)	$	632,497

Balance Sheet for December 31, 2011:



	Parent Issuer		CNX Gas Guarantor			Other Subsidiary Guarantors			Non- Guarantors		Elimination			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	37,342	$	336,727		$	1,269		$	398	$	—		$	375,736
Accounts and Notes Receivable:
Trade	—		63,299			(5,081		)	404,594		—			462,812
Notes Receivable	2,669		311,754			527			—		—			314,950
Securitized	—		—			—			—		—			—
Other	2,913		91,582			7,458			3,755		—			105,708
Inventories	—		8,600			206,096			43,639		—			258,335
Deferred Income Taxes	191,689		(50,606		)	—			—		—			141,083
Prepaid Expenses	28,470		159,900			49,224			1,759		—			239,353
Total Current Assets	263,083		921,256			259,493			454,145		—			1,897,977
Property, Plant and Equipment:
Property, Plant and Equipment	198,004		5,488,094			8,376,831			24,390		—			14,087,319
Less-Accumulated Depreciation, Depletion and Amortization	109,924		778,716			3,855,323			16,940		—			4,760,903
Property, Plant and Equipment-Net	88,080		4,709,378			4,521,508			7,450		—			9,326,416
Other Assets:
Deferred Income Taxes	963,332		(455,608		)	—			—		—			507,724
Investment in Affiliates	9,126,453		96,914			760,548			—		(9,801,879		)	182,036
Restricted Cash	22,148		—			—			—		—			22,148
Notes Receivable	4,148		296,344			—			—		—			300,492
Other	116,624		110,128			52,009			10,146		—			288,907
Total Other Assets	10,232,705		47,778			812,557			10,146		(9,801,879		)	1,301,307
Total Assets	$	10,583,868	$	5,678,412		$	5,593,558		$	471,741	$	(9,801,879	)	$	12,525,700
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts Payable	$	140,823	$	206,072		$	164,521		$	10,587	$	—		$	522,003
Accounts Payable (Recoverable)—Related Parties	2,900,546		9,431			(3,228,229		)	318,252		—			—
Current Portion Long-Term Debt	805		5,587			13,543			756		—			20,691
Accrued Income Taxes	68,819		6,814			—			—		—			75,633
Other Accrued Liabilities	493,450		58,401			206,649			11,570		—			770,070
Total Current Liabilities	3,604,443		286,305			(2,843,516		)	341,165		—			1,388,397
Long-Term Debt:	3,001,092		50,326			124,674			1,331		—			3,177,423
Deferred Credits and Other Liabilities
Postretirement Benefits Other Than Pensions	—		—			3,059,671			—		—			3,059,671
Pneumoconiosis Benefits	—		—			173,553			—		—			173,553
Mine Closing	—		—			406,712			—		—			406,712
Gas Well Closing	—		61,954			62,097			—		—			124,051
Workers’ Compensation	—		—			150,786			248		—			151,034
Salary Retirement	269,069		—			—			—		—			269,069
Reclamation	—		—			39,969			—		—			39,969
Other	98,379		16,899			9,658			—		—			124,936
Total Deferred Credits and Other Liabilities	367,448		78,853			3,902,446			248		—			4,348,995
Total CONSOL Energy Inc. Stockholders’ Equity	3,610,885		5,262,928			4,409,954			128,997		(9,801,879		)	3,610,885
Noncontrolling Interest	—		—			—			—		—			—
Total Liabilities and Stockholders’ Equity	$	10,583,868	$	5,678,412		$	5,593,558		$	471,741	$	(9,801,879	)	$	12,525,700

Condensed Statement of Cash Flows

For the Year Ended December 31, 2011:



	Parent			CNX Gas Guarantor			Other Subsidiary Guarantors			Non- Guarantors			Elimination		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	530,444		$	329,360		$	669,704		$	(1,902	)	$	—	$	1,527,606
Cash Flows from Investing Activities:
Capital Expenditures	$	(41,172	)	$	(664,612	)	$	(676,587	)	$	—		$	—	$	(1,382,371	)
Distributions, net of Investments in, from Equity Affiliates	—			50,626			5,250			—			—		55,876
Other Investing Activities	10			746,956			(469		)	1,474			—		747,971
Net Cash (Used in) Provided by Investing Activities	$	(41,162	)	$	132,970		$	(671,806	)	$	1,474		$	—	$	(578,524	)
Cash Flows from Financing Activities:
Dividends Paid	$	(96,356	)	$	—		$	—		$	—		$	—	$	(96,356	)
Payments on Short-Term Borrowings	(155,000		)	(129,000		)	—			—			—		(284,000		)
Payments on Securitization Facility	(200,000		)	—			—			—			—		(200,000		)
Payments on Long Term Notes, including redemption premium	(265,785		)	—			—			—			—		(265,785		)
Proceeds from Long-Term Notes	250,000			—			—			—			—		250,000
Debt Issuance and Financing Fees	(10,628		)	(5,058		)	—			—			—		(15,686		)
Other Financing Activities	16,377			(8,104		)	(1,793		)	(793		)	—		5,687
Net Cash (Used in) Provided by Financing Activities	$	(461,392	)	$	(142,162	)	$	(1,793	)	$	(793	)	$	—	$	(606,140	)

Income Statement for the Year Ended December 31, 2010:



	Parent Issuer			CNX Gas Guarantor		Other Subsidiary Guarantors			Non- Guarantors		Elimination			Consolidated
Sales—Outside	$	—		$	745,809	$	4,002,790		$	196,118	$	(6,014	)	$	4,938,703
Sales—Gas Royalty Interests	—			62,869		—			—		—			62,869
Sales—Purchased Gas	—			11,227		—			—		—			11,227
Freight—Outside	—			—		125,715			—		—			125,715
Other Income (including equity earnings)	565,780			5,174		51,004			29,851		(554,302		)	97,507
Total Revenue and Other Income	565,780			825,079		4,179,509			225,969		(560,316		)	5,236,021
Cost of Goods Sold and Other Operating Charges	102,645			258,278		2,636,360			10,858		254,186			3,262,327
Gas Royalty Interests’ Costs	—			53,839		—			—		(64		)	53,775
Purchased Gas Costs	—			9,736		—			—		—			9,736
Related Party Activity	(11,676		)	—		(10,059		)	180,398		(158,663		)	—
Freight Expense	—			—		125,544			—		—			125,544
Selling, General and Administrative Expense	—			92,886		134,590			1,068		(78,334		)	150,210
Depreciation, Depletion and Amortization	10,641			190,424		363,961			2,637		—			567,663
Interest Expense	188,343			7,196		9,838			25		(370		)	205,032
Taxes Other Than Income	6,599			29,882		289,160			2,817		—			328,458
Transaction and Financing Fees	62,031			3,330		2			—		—			65,363
Total Costs	358,583			645,571		3,549,396			197,803		16,755			4,768,108
Earnings (Loss) Before Income Taxes	207,197			179,508		630,113			28,166		(577,071		)	467,913
Income Tax Expense (Benefit)	(139,584		)	73,378		164,838			10,655		—			109,287
Net Income (Loss)	$	346,781		$	106,130	$	465,275		$	17,511	$	(577,071	)	$	358,626
Less: Net Income Attributable to Noncontrolling Interest	$	—		$	—	$	—		$	—	$	(11,845	)	$	(11,845	)
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	346,781		$	106,130	$	465,275		$	17,511	$	(588,916	)	$	346,781

Balance Sheet for December 31, 2010:



	Parent Issuer			CNX Gas Guarantor			Other Subsidiary Guarantors			Non- Guarantors		Elimination			Consolidated
Assets:
Current Assets:
Cash and Cash Equivalents	$	11,382		$	16,559		$	3,235		$	1,618	$	—		$	32,794
Accounts and Notes Receivable:
Trade	—			65,197			646			186,687		—			252,530
Securitized	200,000			—			—			—		—			200,000
Notes Receivable	408			—			—			—		—			408
Other	4,227			3,361			10,915			2,678		—			21,181
Inventories	—			4,456			203,962			50,120		—			258,538
Recoverable Income Taxes	(3,189		)	35,717			—			—		—			32,528
Deferred Income Taxes	173,211			960			—			—		—			174,171
Prepaid Expenses	35,297			57,907			39,309			10,343		—			142,856
Total Current Assets	421,336			184,157			258,067			251,446		—			1,115,006
Property, Plant and Equipment:
Property, Plant and Equipment	166,884			6,336,121			8,422,235			26,118		—			14,951,358
Less-Accumulated Depreciation, Depletion and Amortization	91,952			628,506			4,083,693			17,956		—			4,822,107
Property, Plant and Equipment-Net	74,932			5,707,615			4,338,542			8,162		—			10,129,251
Other Assets:
Deferred Income Taxes	902,188			(417,342		)	—			—		—			484,846
Investment in Affiliates	7,833,948			23,569			952,138			11,087		(8,727,233		)	93,509
Restricted Cash	20,291			—			—			—		—			20,291
Notes Receivable	6,866			—			—			—		—			6,866
Other	111,283			37,268			61,532			10,758		—			220,841
Total Other Assets	8,874,576			(356,505		)	1,013,670			21,845		(8,727,233		)	826,353
Total Assets	$	9,370,844		$	5,535,267		$	5,610,279		$	281,453	$	(8,727,233	)	$	12,070,610
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts Payable	$	130,063		$	101,944		$	113,036		$	8,968	$	—		$	354,011
Accounts Payable (Recoverable)-Related Parties	2,363,108			30,302			(2,543,991		)	150,581		—			—
Short-Term Notes Payable	155,000			129,000			—			—		—			284,000
Current Portion of Long-Term Debt	758			9,851			13,589			585		—			24,783
Borrowings under Securitization Facility	200,000			—			—			—		—			200,000
Other Accrued Liabilities	302,788			59,960			425,735			13,508		—			801,991
Total Current Liabilities	3,151,717			331,057			(1,991,631		)	173,642		—			1,664,785
Long-Term Debt:	3,000,702			58,905			125,627			904		—			3,186,138
Deferred Credits and Other Liabilities:
Postretirement Benefits Other Than Pensions	—			—			3,077,390			—		—			3,077,390
Pneumoconiosis Benefits	—			—			173,616			—		—			173,616
Mine Closing	—			—			393,754			—		—			393,754
Gas Well Closing	—			60,027			70,951			—		—			130,978
Workers’ Compensation	—			—			148,265			49		—			148,314
Salary Retirement	161,173			—			—			—		—			161,173
Reclamation	—			—			53,839			—		—			53,839
Other	112,775			25,483			6,352			—		—			144,610
Total Deferred Credits and Other Liabilities	273,948			85,510			3,924,167			49		—			4,283,674
Total CONSOL Energy Inc. Stockholders’ Equity	2,944,477			5,068,259			3,543,652			106,858		(8,718,769		)	2,944,477
Noncontrolling Interest	—			(8,464		)	8,464			—		(8,464		)	(8,464		)
Total Liabilities and Stockholders’ Equity	$	9,370,844		$	5,535,267		$	5,610,279		$	281,453	$	(8,727,233	)	$	12,070,610

Condensed Statement of Cash Flows

For the Year Ended December 31, 2010:



	Parent			CNX Gas Guarantor			Other Subsidiary Guarantors			Non- Guarantors			Elimination			Consolidated
Net Cash Provided by Operating Activities	$	93,623		$	361,073		$	675,627		$	989		$	—		$	1,131,312
Cash Flows from Investing Activities:
Capital Expenditures	$	—		$	(421,428	)	$	(732,596	)	$	—		$	—		$	(1,154,024	)
Acquisition of Dominion Exploration and Production Business	—			—			(3,470,212		)	—			—			(3,470,212		)
Purchase of CNX Gas Noncontrolling Interest	(991,034		)	—			—			—			—			(991,034		)
Investment in Equity Affiliates	(3,470,212		)	1,501			9,951			—			3,470,212			11,452
Other Investing Activities	—			562			59,282			—			—			59,844
Net Cash Used in Investing Activities	$	(4,461,246	)	$	(419,365	)	$	(4,133,575	)	$	—		$	3,470,212		$	(5,543,974	)
Cash Flows from Financing Activities:
Dividends Paid	$	(85,861	)	$	—		$	—		$	—		$	—		$	(85,861	)
(Payments on) Proceeds from Short-Term Borrowings	(260,000		)	71,150			—			—			—			(188,850		)
Proceeds from Securitization Facility	150,000			—			—			—			—			150,000
Proceeds from Long-Term Notes	2,750,000			—			—			—			—			2,750,000
Proceeds from Issuance of Common Stock	1,828,862			—			—			—			—			1,828,862
Proceeds from Parent	—			—			3,470,212			—			(3,470,212		)	—
Debt Issuance and Financing Fees	(84,248		)	—			—			—			—			(84,248		)
Other Financing Activities	20,703			2,577			(12,793		)	(541		)	—			9,946
Net Cash Provided by (Used in) Financing Activities	$	4,319,456		$	73,727		$	3,457,419		$	(541	)	$	(3,470,212	)	$	4,379,849

Income Statement for the Year Ended December 31, 2009:



	Parent Issuer			CNX Gas Guarantor		Other Subsidiary Guarantors			Non- Guarantors		Elimination			Consolidated
Sales—Outside	$	—		$	630,598	$	3,487,022		$	197,350	$	(3,179	)	$	4,311,791
Sales—Gas Royalty Interests	—			40,951		—			—		—			40,951
Sales—Purchased Gas	—			7,040		—			—		—			7,040
Freight—Outside	—			—		148,907			—		—			148,907
Other Income (including equity earnings)	622,216			4,855		76,442			22,173		(612,500		)	113,186
Total Revenue and Other Income	622,216			683,444		3,712,371			219,523		(615,679		)	4,621,875
Cost of Goods Sold and Other Operating Charges	84,960			188,454		2,050,591			190,854		242,193			2,757,052
Gas Royalty Interests’ Costs	—			32,423		—			—		(47		)	32,376
Purchased Gas Costs	—			6,442		—			—		—			6,442
Related Party Activity	7,052			—		132,106			1,495		(140,653		)	—
Freight Expense	—			—		148,907			—		—			148,907
Selling, General and Administrative Expense	—			66,655		151,158			1,287		(88,396		)	130,704
Depreciation, Depletion and Amortization	13,022			107,251		316,352			2,654		(1,862		)	437,417
Interest Expense	13,229			7,568		10,959			15		(352		)	31,419
Taxes Other Than Income	9,576			12,590		265,180			2,595		—			289,941
Black Lung Excise Taxes	—			—		(728		)	—		—			(728		)
Total Costs	127,839			421,383		3,074,525			198,900		10,883			3,833,530
Earnings (Loss) Before Income Taxes	494,377			262,061		637,846			20,623		(626,562		)	788,345
Income Tax Expense (Benefit)	(45,340		)	98,636		160,105			7,802		—			221,203
Net Income (Loss)	539,717			163,425		477,741			12,821		(626,562		)	567,142
Less: Net Income Attributable to Noncontrolling Interest	—			1,037		(1,037		)	—		(27,425		)	(27,425		)
Net Income (Loss) Attributable to CONSOL Energy Inc. Shareholders	$	539,717		$	164,462	$	476,704		$	12,821	$	(653,987	)	$	539,717

Condensed Statement of Cash Flows

For the Year Ended December 31, 2009:



	Parent			CNX Gas Guarantor			Other Subsidiary Guarantors			Non- Guarantors			Elimination		Consolidated
Net Cash Provided by (Used in) Operating Activities	$	179,095		$	360,163		$	523,596		$	(2,403	)	$	—	$	1,060,451
Cash Flows from Investing Activities:
Capital Expenditures	$	—		$	(336,447	)	$	(583,633	)	$	—		$	—	$	(920,080	)
Investment in Equity	—			1,250			3,605			—			—		4,855
Other Investing Activities	—			288			69,596			—			—		69,884
Net Cash (Used in) Provided by Investing Activities	$	—		$	(334,909	)	$	(510,432	)	$	—		$	—	$	(845,341	)
Cash Flows from Financing Activities:
Dividends Paid	$	(72,292	)	$	—		$	—		$	—		$	—	$	(72,292	)
Payments on Short-Term Borrowings	(70,000		)	(14,850		)	—			—			—		(84,850		)
Payments on Securitization Facility	(115,000		)	—			—			—			—		(115,000		)
Other Financing Activities	5,275			(11,206		)	(9,481		)	(461		)	—		(15,873		)
Net Cash (Used in) Provided by Financing Activities	$	(252,017	)	$	(26,056	)	$	(9,481	)	$	(461	)	$	—	$	(288,015	)