Guarantor Financial Information

In March and April 2011, we issued $350 million of aggregate principal amount of 2019 Senior Notes. In October 2013, we issued $250 million of aggregate principal amount of the 2019 Senior Notes. The 2019 Senior Notes issued in October 2013 and the 2019 Senior Notes originally issued in March and April 2011 are treated as a single class of debt securities under the same indenture (see Note 3). Presented below is condensed consolidated financial information of CWEI (the “Issuer”) and the Issuer’s material wholly owned subsidiaries. Other than CWEI Andrews Properties, GP, LLC, the general partner of CWEI Andrews Properties, L.P., an affiliated limited partnership formed in April 2013, all of the Issuer’s wholly owned and active subsidiaries (“Guarantor Subsidiaries”) have jointly and severally, irrevocably and unconditionally guaranteed the performance and payment when due of all obligations under the 2019 Senior Notes. The guarantee by a Guarantor Subsidiary of the 2019 Senior Notes may be released under certain customary circumstances as set forth in the Indenture. CWEI Andrews Properties, GP, LLC, is not a guarantor of the 2019 Senior Notes and its accounts are reflected in the “Non-Guarantor Subsidiary” column in this Note 18.

The financial information which follows sets forth our condensed consolidating financial statements as of and for the periods indicated.

Condensed Consolidating Balance Sheet December 31, 2014 (Dollars in thousands)


	Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiary		Adjustments/ Eliminations			Consolidated
Current assets	$	153,373	$	293,613	$	546	$	(314,912	)	$	132,620
Property and equipment, net	986,110		344,174		18,600		—			1,348,884
Investments in subsidiaries	359,777		—		—		(359,777		)	—
Other assets	16,077		13,304		—		—			29,381
Total assets	$	1,515,337	$	651,091	$	19,146	$	(674,689	)	$	1,510,885
Current liabilities	$	352,889	$	113,746	$	586	$	(310,868	)	$	156,353
Non-current liabilities:
Long-term debt	704,696		—		—		—			704,696
Deferred income taxes	129,105		141,130		4,227		(109,863		)	164,599
Other	36,671		50,591		181		—			87,443
	870,472		191,721		4,408		(109,863		)	956,738
Equity	291,976		345,624		14,152		(253,958		)	397,794
Total liabilities and equity	$	1,515,337	$	651,091	$	19,146	$	(674,689	)	$	1,510,885

Condensed Consolidating Balance Sheet December 31, 2013 (Dollars in thousands)

	Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiary		Adjustments/ Eliminations			Consolidated
Current assets	$	140,100	$	248,314	$	538	$	(250,641	)	$	138,311
Property and equipment, net	833,980		351,171		13,956		—			1,199,107
Investments in subsidiaries	342,416		—		—		(342,416		)	—
Other assets	16,032		13,287		—		—			29,319
Total assets	$	1,332,528	$	612,772	$	14,494	$	(593,057	)	$	1,366,737
Current liabilities	$	290,327	$	93,055	$	976	$	(247,963	)	$	136,395
Non-current liabilities:
Long-term debt	639,638		—		—		—			639,638
Deferred income taxes	118,438		129,880		988		(108,497		)	140,809
Other	36,161		59,829		122		—			96,112
	794,237		189,709		1,110		(108,497		)	876,559
Equity	247,964		330,008		12,408		(236,597		)	353,783
Total liabilities and equity	$	1,332,528	$	612,772	$	14,494	$	(593,057	)	$	1,366,737

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2014 (Dollars in thousands)

	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiary			Adjustments/ Eliminations			Consolidated
Total revenue	$	324,055		$	140,857		$	3,544		$	—		$	468,456
Costs and expenses	242,658			111,750			2,409			—			356,817
Operating income (loss)	81,397			29,107			1,135			—			111,639
Other income (expense)	(45,538		)	919			1,548			—			(43,071		)
Equity in earnings of subsidiaries	21,261			—			—			(21,261		)	—
Income tax (expense) benefit	(13,239		)	(10,509		)	(939		)	—			(24,687		)
Net income (loss)	$	43,881		$	19,517		$	1,744		$	(21,261	)	$	43,881

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2013 (Dollars in thousands)

	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiary			Adjustments/ Eliminations			Consolidated
Total revenue	$	280,423		$	146,556		$	2,236		$	—		$	429,215
Costs and expenses	302,898			112,441			1,261			—			416,600
Operating income (loss)	(22,475		)	34,115			975			—			12,615
Other income (expense)	(50,601		)	(25		)	721			—			(49,905		)
Equity in earnings of subsidiaries	23,261			—			—			(23,261		)	—
Income tax (expense) benefit	24,953			(11,931		)	(594		)	—			12,428
Net income (loss)	$	(24,862	)	$	22,159		$	1,102		$	(23,261	)	$	(24,862	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) Year Ended December 31, 2012 (Dollars in thousands)

	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiary		Adjustments/ Eliminations			Consolidated
Total revenue	$	291,782		$	132,690		$	—	$	(1,420	)	$	423,052
Costs and expenses	230,033			114,646			—		(1,420		)	343,259
Operating income (loss)	61,749			18,044			—		—			79,793
Other income (expense)	(25,495		)	2,813			—		—			(22,682		)
Equity in earnings of subsidiaries	13,557			—			—		(13,557		)	—
Income tax (expense) benefit	(14,708		)	(7,300		)	—		—			(22,008		)
Net income (loss)	$	35,103		$	13,557		$	—	$	(13,557	)	$	35,103

Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 (Dollars in thousands)

	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiary			Adjustments/ Eliminations			Consolidated
Operating activities	$	178,769		$	69,543		$	5,842		$	3,967		$	258,121
Investing activities	(274,629		)	(34,749		)	(5,652		)	(3,967		)	(318,997		)
Financing activities	97,384			(34,987		)	(128		)	—			62,269
Net increase (decrease) in cash and cash equivalents	1,524			(193		)	62			—			1,393
Cash at the beginning of the period	19,693			6,886			44			—			26,623
Cash at end of the period	$	21,217		$	6,693		$	106		$	—		$	28,016

Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 (Dollars in thousands)

	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiary			Adjustments/ Eliminations			Consolidated
Operating activities	$	128,146		$	87,433		$	2,406		$	2,591		$	220,576
Investing activities	10,544			(34,121		)	(2,875		)	(2,591		)	(29,043		)
Financing activities	(125,027		)	(51,122		)	513			—			(175,636		)
Net increase (decrease) in cash and cash equivalents	13,663			2,190			44			—			15,897
Cash at the beginning of the period	6,030			4,696			—			—			10,726
Cash at end of the period	$	19,693		$	6,886		$	44		$	—		$	26,623

Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2012 (Dollars in thousands)

	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiary		Adjustments/ Eliminations			Consolidated
Operating activities	$	92,521		$	89,923		$	—	$	6,778		$	189,222
Investing activities	(432,433		)	(36,822		)	—		(6,778		)	(476,033		)
Financing activities	333,703			(53,691		)	—		—			280,012
Net increase (decrease) in cash and cash equivalents	(6,209		)	(590		)	—		—			(6,799		)
Cash at the beginning of the period	12,239			5,286			—		—			17,525
Cash at end of the period	$	6,030		$	4,696		$	—	$	—		$	10,726