NOTE 12 CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Our Credit Facilities and Second Lien Notes are guaranteed both fully and unconditionally and jointly and severally by our material wholly owned subsidiaries (Guarantor Subsidiaries). Certain of our subsidiaries do not guarantee our Credit Facilities and Second Lien Notes (Non-Guarantor Subsidiaries). The following condensed consolidating balance sheets at September 30, 2017 and December 31, 2016, condensed consolidating statements of operations and statements of cash flows for the nine months ended September 30, 2017 and 2016 reflect the condensed consolidating financial information of our parent company, CRC (Parent), our combined Guarantor Subsidiaries, our combined Non-Guarantor Subsidiaries and the consolidation and elimination entries necessary to arrive at the information for CRC on a consolidated basis.

The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities.

Condensed Consolidating Balance Sheet


	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated

As of September 30, 2017	(in millions)
Total current assets	$	9	$	425	$	20	$	(2)	$	452
Total property, plant and equipment, net	24		5,589		79		—		5,692
Investments in consolidated subsidiaries	5,981		582		—		(6,563)		—
Other assets	—		37		2		—		39

TOTAL ASSETS	$	6,014	$	6,633	$	101	$	(6,565)	$	6,183


Total current liabilities	234		513		1		(2)		746
Long-term debt - principal amount	5,039		—		—		—		5,039
Deferred gain and issuance costs, net	356		—		—		—		356
Other long-term liabilities	138		475		3		—		616
Amounts due to (from) affiliates	914		(914)		—		—		—
Total equity	(667)		6,559		97		(6,563)		(574)

TOTAL LIABILITIES AND EQUITY	$	6,014	$	6,633	$	101	$	(6,565)	$	6,183


As of December 31, 2016

Total current assets	$	7	$	418	$	—	$	—	$	425
Total property, plant and equipment, net	25		5,856		4		—		5,885
Investments in consolidated subsidiaries	5,713		537		—		(6,250)		—
Other assets	—		44		—		—		44

TOTAL ASSETS	$	5,745	$	6,855	$	4	$	(6,250)	$	6,354


Total current liabilities	221		505		—		—		726
Long-term debt - principal amount	5,168		—		—		—		5,168
Deferred gain and issuance costs, net	397		—		—		—		397
Other long-term liabilities	132		487		1		—		620
Amounts due to (from) affiliates	384		(384)		—		—		—
Total equity	(557)		6,247		3		(6,250)		(557)

TOTAL LIABILITIES AND EQUITY	$	5,745	$	6,855	$	4	$	(6,250)	$	6,354

Condensed Consolidating Statement of Operations

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated

For the nine months ended September 30, 2017	(in millions)
Total revenues and other	$	22	$	1,551	$	10	$	(32)	$	1,551
Total costs and other	168		1,303		9		(32)		1,448
Non-operating (loss) income	(253)		23		—		—		(230)
Income tax benefit	—		—		—		—		—

NET (LOSS) INCOME	(399)		271		1		—		(127)

Net income attributable to noncontrolling interest	—		—		(1)		—		(1)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCK	$	(399)	$	271	$	—	$	—	$	(128)


For the nine months ended September 30, 2016
Total revenues and other	$	—	$	1,093	$	2	$	—	$	1,095
Total costs and other	153		1,243		2		—		1,398
Non-operating income (loss)	547		34		—		—		581
Income tax benefit	78		—		—		—		78

NET INCOME (LOSS)	$	472	$	(116)	$	—	$	—	$	356

Condensed Consolidating Statement of Cash Flows

	Parent		Combined Guarantor Subsidiaries		Combined Non- Guarantor Subsidiaries		Eliminations		Consolidated

For the nine months ended September 30, 2017	(in millions)
Net cash (used) provided by operating activities	$	(403)	$	621	$	7	$	—	$	225
Net cash used by investing activities	(2)		(90)		(82)		—		(174)
Net cash provided (used) by financing activities	409		(536)		92		—		(35)

Increase (decrease) in cash and cash equivalents	4		(5)		17		—		16
Cash and cash equivalents—beginning of period	—		12		—		—		12

Cash and cash equivalents— end of period	$	4	$	7	$	17	$	—	$	28

For the nine months ended September 30, 2016
Net cash (used) provided by operating activities	$	(419)	$	563	$	1	$	—	$	145
Net cash used by investing activities	(1)		(30)		—		—		(31)
Net cash provided (used) by financing activities	420		(535)		(1)		—		(116)

Decrease in cash and cash equivalents	—		(2)		—		—		(2)
Cash and cash equivalents—beginning of period	—		12		—		—		12
Cash and cash equivalents— end of period	$	—	$	10	$	—	$	—	$	10