Penn Virginia Corporation Announces Record 2006 Results and 2007 Guidance

Reports Record Annual Operating Income, Net Income and Cash Flow

RADNOR, Pa.--

Penn Virginia Corporation (NYSE:PVA) today reported record operating income of $170.5 million and net income of $75.9 million, or $4.02 per diluted share, in 2006 compared with operating income of $162.0 million and net income of $62.1 million, or $3.31 per diluted share, reported in 2005. Net cash provided by operating activities was a record $275.8 million for 2006, a 19 percent increase over the $231.4 million reported for 2005. Operating cash flow, a non-GAAP measure, was also a record $262.0 million for 2006, and 11 percent above the $236.2 million reported for 2005. The increases in operating income and cash flows were primarily due to 14 percent higher oil and gas production volumes, higher production, prices and royalties in the coal segment and an increase in plant inlet volumes and stronger margins in the natural gas midstream segment. The increase in operating income and cash flows was partially offset by lower realized natural gas prices and by higher operating expenses due to the increased production levels. Reported net income further benefited from a gain on derivatives in 2006 as compared to a loss in 2005, offset in part by increased interest expense and higher general and administrative expenses. A reconciliation of operating cash flow and other non-GAAP financial measures appears in the financial tables later in this release.

For the fourth quarter of 2006, operating income was $27.3 million and net income was $10.7 million, or $0.57 per diluted share, compared with fourth quarter 2005 operating income of $61.1 million and net income of $27.4 million, or $1.46 per diluted share. Net cash provided by operating activities was $78.8 million, a five percent decrease from the $82.9 million reported for the fourth quarter of 2005. Operating cash flow, a non-GAAP measure, was $64.0 million, an 11 percent decrease from the $72.3 million reported for the fourth quarter of 2005. The decreases in fourth quarter 2006 operating income and net income were due primarily to lower realized natural gas prices and higher operating expenses. Fourth quarter 2006 net income benefited from derivatives gains and increased other income, partially offset by increased interest expense.

Management Comment

A. James Dearlove, Penn Virginia President and CEO, said, "We are pleased with the record financial and operating results in 2006 which reflect the success of our growth strategy in all of our businesses, and look forward to 2007 with confidence that we will continue to grow.

"Our increased operating income and cash flow were the direct result of strong performance in our coal and midstream businesses, and our oil and gas operations grew production by 14 percent to record levels during 2006. While natural gas prices decline from 2005's weather and storage-induced record levels, oil and natural gas prices remain at attractive levels which we believe are sufficient to generate rates of return superior to our cost of capital, and we have an active hedging program to help supplement our cash flows should prices weaken during 2007.

"We previously announced an ambitious $334 million oil and gas capital expenditures budget for 2007, with 84 percent of the budget targeting development and production projects. We intend to continue to exploit our expertise in unconventional plays in our core development and production areas, including the Cotton Valley play in east Texas, the Selma Chalk in Mississippi and horizontal coalbed methane (HCBM) in both the Appalachian Basin and the Mid-Continent region. Our exploration spending will be spread among projects in south Louisiana and other opportunities involving shale, CBM and tight sands. A primary goal of our exploration program is to identify meaningful resource plays to supplement our core development and production areas.

"In December 2006, we sold approximately 18 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of PVR's general partner, to investors in its initial public offering (IPO). PVG reinvested the proceeds of the IPO into PVR, thereby increasing its ownership stake in PVR while at the same time allowing PVR to de-leverage its balance sheet. By having PVG traded in the public market, we believe the value to PVA of the general partner, inclusive of the incentive distribution rights (IDRs) and ownership of limited partner units, is now more easily recognized by the investment community.

"During 2006, the Company benefited not only from the strong financial and operating results of the coal and midstream businesses in its consolidated financial statements, but also benefited from the $28.3 million in cash distributions from PVR, a 33 percent increase over the $21.2 million received in 2005. During 2006, we realized an increased benefit from the IDRs we owned as the general partner of PVR, which are now owned by PVG. The IDRs provide increasing cash flows to the Company as distributions to PVR unitholders increase.

"As we head into 2007, we look forward to solid growth from all three of our business segments, both organic and from acquisitions, and believe we have strategies in place at each business segment and the financial strength to achieve that growth."

Oil and Gas Segment Review

Proved natural gas and oil reserves increased by 29 percent in 2006, from 377 billion cubic feet of natural gas equivalent (Bcfe) at December 31, 2005 to 487 Bcfe at December 31, 2006. This increase was primarily due to increases from the Cotton Valley play in east Texas and Selma Chalk play in Mississippi, as well as a contribution from the Mid-Continent region, which was established following the Mid-Continent acquisition in June 2006. Oil and gas production grew 14 percent from 27.4 Bcfe in 2005 to a record 31.3 Bcfe in 2006. Fourth quarter 2006 oil and gas production also grew 19 percent to 8.6 Bcfe from 7.2 Bcfe in the fourth quarter of 2005, which also was the fifth straight quarterly record for oil and gas production by the Company. See the Company's February 7, 2007 news release for a more detailed discussion of fourth quarter 2006 drilling and production operations and proved reserves for the oil and gas business segment.

Oil and gas operating income for 2006 was $84.8 million compared to $95.5 million reported for 2005. Total oil and gas revenues increased by three percent from $226.2 million in 2005 to $234.2 million in 2006. The increased production volumes and higher realized prices for oil and condensate were partially offset by a lower average realized sales price for natural gas. The average realized sales price in 2006 was $7.35 per thousand cubic feet (Mcf), a decrease of 12 percent from the $8.31 per Mcf realized in 2005. A 13 percent increase in natural gas production, from 25.6 billion cubic feet (Bcf) in 2005 to 29.0 Bcf in 2006, essentially offset the natural gas price decrease and resulted in flat natural gas revenues from 2005 to 2006. Natural gas production represented approximately 93 percent of the Company's equivalent production for the year.

Total oil and gas segment expenses increased 15 percent to $151.1 million, or $4.83 per thousand cubic feet of natural gas equivalent (Mcfe) produced, in 2006, from $131.3 million, or $4.80 per Mcfe produced, in 2005, primarily due to the following:

    --  Operating expenses increased to $27.4 million, or $0.88 per
        Mcfe produced, in 2006 from $17.3 million, or $0.63 per Mcfe
        produced, in 2005. The increase was primarily due to the 14
        percent production increase, including the acquisition of
        producing properties in the Mid-Continent region, additional
        compressor rentals at fields with this increased production,
        downhole maintenance charges associated with HCBM wells in
        Appalachia and Selma Chalk wells in Mississippi, increased
        surface repair costs and increased gathering fees related to
        HCBM and Cotton Valley wells.

    --  Taxes other than income decreased to $11.8 million, or $0.38
        per Mcfe produced, in 2006 from $13.2 million, or $0.48 per
        Mcfe produced, in 2005. The decrease was primarily due to a
        severance tax refund related to production in the Cotton
        Valley play and property tax adjustments in West Virginia.

    --  Exploration expense decreased to $34.3 million in 2006 from
        $40.9 million in 2005. The decrease was primarily due to
        unproved leasehold and dry hole costs related to an
        exploratory well in south Texas that was determined to be
        unsuccessful in the second quarter of 2005, partially offset
        in 2006 by increases in dry hole costs due to the write-off of
        exploratory wells and in unproved leasehold amortization.

    --  Impairment charges increased to $8.5 million in 2006 from $4.8
        million in 2005 related to changes in estimates of reserves of
        certain fields in Louisiana, Texas and West Virginia in 2006
        and changes in estimates of reserves of certain fields in
        Texas in 2005.

    --  Depreciation, depletion and amortization (DD&A) expense
        increased to $56.2 million, or $1.80 per Mcfe produced, in
        2006 from $45.9 million, or $1.68 per Mcfe produced, in 2005.
        The increase was the result of the 14 percent production
        increase and higher average depletion rates.

Oil and gas operating income for the fourth quarter of 2006 was $8.7 million, compared to $43.9 million reported for the fourth quarter of 2005. Total oil and gas revenues decreased by 27 percent from $79.1 million in the fourth quarter of 2005 to $57.4 million in the fourth quarter of 2006. A lower average realized sales price for natural gas of $6.60 per Mcf in the fourth quarter of 2006, a decrease of 41 percent from the $11.22 per Mcf in the prior year, more than offset record natural gas production volumes of 8.0 Bcf, an increase of 19 percent over the fourth quarter of 2005.

Total oil and gas segment expenses increased 39 percent to $49.0 million, or $5.73 per Mcfe produced, in the fourth quarter of 2006 from $35.2 million, or $4.91 per Mcfe produced, in the fourth quarter of 2005, primarily due to the following:

    --  Operating expenses increased to $7.9 million, or $0.93 per
        Mcfe produced, in the fourth quarter of 2006 from $5.7
        million, or $0.79 per Mcfe produced, in the fourth quarter of
        2005. The increase was primarily due to the 20 percent
        production increase, including the acquisition of producing
        properties in the Mid-Continent region, additional compressor
        rentals at fields with this increased production, downhole
        maintenance charges associated with HCBM wells in Appalachia
        and Selma Chalk wells in Mississippi, increased surface repair
        costs and increased gathering fees related to HCBM and Cotton
        Valley wells.

    --  Taxes other than income decreased to $2.6 million, or $0.31
        per Mcfe produced, in the fourth quarter of 2006 from $3.7
        million, or $0.52 per Mcfe produced, in the prior year. The
        decrease resulted from lower severance taxes primarily due to
        the lower average realized sales price for natural gas in the
        fourth quarter of 2006 as compared to the previous year.

    --  Impairment charges increased to $8.5 million, or $1.00 per
        Mcfe produced, in the fourth quarter of 2006 from $1.3 million
        in the prior year related to changes in estimates of reserves
        of certain fields in Louisiana, Texas and West Virginia in
        2006 and changes in estimates of reserves of certain fields in
        Texas in 2005.

    --  DD&A expense increased to $17.5 million, or $2.04 per Mcfe
        produced, in the fourth quarter of 2006 from $12.1 million, or
        $1.69 per Mcfe produced, in the fourth quarter of 2005. The
        increase was the result of the 20 percent production increase
        and higher average depletion rates.

Coal Segment Review (Penn Virginia Resource Partners, L.P. - NYSE:PVR)

As of December 31, 2006, PVR owned or controlled approximately 765 million tons of proven and probable coal reserves located in Central Appalachia, Northern Appalachia, the San Juan Basin and the Illinois Basin. Coal production by PVR's lessees increased nine percent to 32.8 million tons in 2006 from 30.2 million tons in 2005, primarily due to acquisitions by PVR, with 1.2 million tons of the increase attributable to Central Appalachia and 1.1 million tons of the increase attributable to the Illinois Basin.

Full-year 2006 operating income in PVR's coal segment was a record $73.4 million, or 19 percent higher than the $61.7 million reported in 2005. Revenues increased to $113.0 million in 2006 from $95.8 million in 2005, mainly as the result of acquisitions, increased coal production by PVR's lessees and higher coal prices. Coal royalty revenues increased to $98.2 million in 2006, a 19 percent increase from the $82.7 million in 2005, due to higher coal production by PVR's lessees and an increase in average coal royalties due to higher coal prices. The average coal royalty increased by nine percent from $2.74 per ton in 2005 to $2.99 per ton in 2006, primarily as the result of a greater percentage of coal being produced under certain price-sensitive leases and stronger market conditions for coal resulting in higher prices. Coal services revenues increased by 13 percent to $5.9 million in 2006 from $5.2 million in 2005. Other revenues increased to $9.0 million in 2006 from $7.8 million in 2005 due to increased revenues for the management of certain coal properties which began in July 2005 and due to increases in forfeiture income, railcar rental income and wheelage fees, partially offset by a decrease in royalty income from oil and natural gas and $1.5 million received in a legal settlement in 2005.

Expenses increased from $34.0 million in 2005 to $39.5 million in 2006, primarily due to a $2.5 million increase in depreciation, depletion and amortization expense and smaller increases in operating and general and administrative expenses, as a result of acquisitions and increased lessee production.

Coal production by PVR's lessees increased eight percent to 8.3 million tons in the fourth quarter of 2006 from 7.7 million tons in the prior year, primarily due to acquisitions, with 0.3 million tons of the increase attributable to Central Appalachia and 0.3 million tons of the increase attributable to Northern Appalachia.

Fourth quarter 2006 operating income in PVR's coal segment was $18.3 million, or 11 percent higher than the $16.5 million reported for the prior year. Revenues increased to $29.9 million in the fourth quarter of 2006 from $26.3 million in the prior year, mainly as the result of acquisitions, increased coal production by PVR's lessees and higher coal prices. Coal royalty revenues increased to $24.9 million in the fourth quarter of 2006, a 14 percent increase from the $21.8 million in the prior year due to higher coal production by PVR's lessees and an increase in average coal royalties due to higher coal prices. In addition, the average coal royalty increased by six percent from $2.82 per ton in the fourth quarter of 2005 to $2.99 per ton in the fourth quarter of 2006, primarily as the result of a greater percentage of coal being produced under certain price-sensitive leases and stronger market conditions for coal resulting in higher prices.

Expenses increased from $9.8 million in the fourth quarter of 2005 to $11.6 million in 2006, primarily due to a $1.4 million increase in operating expense and a $0.9 million increase in depreciation, depletion and amortization expense, partially offset by a $0.5 million decrease in general and administrative expense.

Natural Gas Midstream Segment Review (Penn Virginia Resource Partners, L.P. - NYSE: PVR)

Inlet volumes at PVR's gas processing plants and gathering systems increased 44 percent to 56.0 Bcf, or approximately 163 million cubic feet (MMcf) per day, for the year ended December 31, 2006, from the 38.9 Bcf, or approximately 127 MMcf per day, for ten months reported for the prior year. The increase was primarily due to a full year of results in 2006 as compared to the ten-month period in 2005, and to higher average daily inlet volumes resulting from the pipeline acquisition completed in the second quarter of 2006 and successful drilling results of local producers.

Full-year 2006 operating income in PVR's natural gas midstream segment was $29.4 million, or 80 percent higher than the $16.3 million for the ten month results reported in 2005. The gross midstream processing margin, represented by natural gas midstream revenues less cost of cash purchased, increased 52 percent to $68.1 million, or $1.22 per thousand cubic feet of natural gas (Mcf), in 2006 from $44.7 million, or $1.15 per Mcf, for the ten months ended December 31, 2005, mainly as a result of a full year of results in 2006 as compared to ten months of results in 2005, increased average daily inlet volumes and an improved spread between natural gas liquids (NGLs) and natural gas prices.

Expenses, other than cost of gas purchased, increased from $30.3 million in the ten months of 2005 to $40.9 million in 2006, primarily due to a full year of results in 2006 as compared to ten months of results in 2005 and increased inlet volumes.

Inlet volumes at PVR's gas processing plants and gathering systems increased 39 percent to 16.6 Bcf, or approximately 180 MMcf per day, for the fourth quarter of 2006, from the 11.9 Bcf, or approximately 129 MMcf per day, in the prior year. The increase was primarily due to higher average daily inlet volumes resulting from the pipeline acquisition completed in the second quarter of 2006 and successful drilling results of local producers.

Fourth quarter 2006 operating income in PVR's natural gas midstream segment was $7.1 million, or 65 percent higher than the $4.3 million in the prior year. The gross midstream processing margin increased to $17.4 million, or $1.05 per Mcf, in the fourth quarter of 2006, from $13.7 million, or $1.15 per Mcf, in the prior year period, mainly as a result of increased inlet volumes, partially offset by declining gross midstream processing margins per Mcf. The gross midstream processing margin per Mcf declined by $0.10 per Mcf, or nine percent, in the fourth quarter of 2006 as compared to the prior year, primarily due to lower prices in the crude oil markets at the end of 2006.

Expenses, other than cost of gas purchased, increased from $9.9 million in the fourth quarter of 2005 to $10.8 million in 2006, primarily due to increased inlet volumes.

    Partnership Distributions and Consolidated Financial Statements

As previously announced, PVG today paid to unitholders of record as of February 5, 2007 a quarterly cash distribution, covering the period December 5 through December 31, 2006, in the amount of $0.07 per unit, or an annualized rate of $0.96 per unit. This distribution represents a $0.02 per unit increase over the $0.94 per unit annualized distribution contemplated in connection with PVG's initial public offering.

PVG, whose common units began trading on the New York Stock Exchange on December 5, 2006, owns PVR's general partner, including the incentive distribution rights, and is PVR's largest unitholder and reports its financial results on a consolidated basis with the financial results of PVR. PVG currently has no separate operating activities apart from those conducted by PVR, and its cash flow is derived solely from cash distributions received from PVR. Similarly, PVA is the largest unitholder of PVG and reports its financial results on a consolidated basis with the financial results of PVG.

Capital Resources and Impact of Derivatives

As of December 31, 2006, the Company had borrowed $221 million under its revolving credit facility compared to $79 million at the end of 2005. The increases in borrowings were used to fund the $72 million acquisition of Mid-Continent reserves in June 2006 and to execute the Company's expanded capital expenditures program. In November 2006, the Company amended its credit facility to increase the commitment from $200 million to $300 million and to increase the borrowing base from $300 million to $400 million. PVR's outstanding borrowings as of December 31, 2006 were $218.0 million, including $10.8 million of senior unsecured notes classified as current portion of long-term debt, a decrease from $255.0 million as of December 31, 2005. The decrease in outstanding borrowings was primarily due to $114.6 million of debt repayment using proceeds received from the sale of additional limited partner units to PVG following its initial public offering in December 2006, partially offset by borrowings during the year to fund acquisitions. Due to the higher weighted average of outstanding borrowings during 2006 as compared to 2005 and an increase in the underlying base interest rate, consolidated interest expense increased from $15.3 million in 2005 to $24.8 million in 2006 and from $4.2 million in the fourth quarter of 2005 to $7.5 million for the fourth quarter of 2006.

During the full-year and the fourth quarter of 2006, gains (losses) on derivatives changed from a loss of $14.9 million in 2005 to a gain of $19.5 million in 2006 and from a loss of $3.7 million in the fourth quarter of 2005 to a gain of $8.1 million in the fourth quarter of 2006. Oil and gas hedges provided significant non-cash unrealized gains on derivatives in the fourth quarter and full-year 2006, as compared to the prior year period, and natural gas midstream hedges provided reduced non-cash unrealized losses on derivatives in the fourth quarter and full-year 2006, as compared to the prior year. See the Guidance Table included in this release for detail of our derivative positions as of December 31, 2006.

Guidance for 2007

See the Guidance Table included in this release for guidance estimates for 2007. These estimates, including capital expenditure plans, are meant to provide guidance only and are subject to revision as PVA's operating environment changes.

2006 Fourth Quarter and Full Year Operational Update and Financial Results Conference Call

The Company will release its consolidated 2006 fourth quarter and full year results, including the results of Penn Virginia Resource Partners, L.P. (NYSE: PVR) and Penn Virginia GP Holdings, L.P. (NYSE: PVG), after the close of trading on the NYSE on Wednesday, February 14, 2007, followed by a conference call on Thursday, February 15, 2007 at 3:00 p.m. ET. A joint conference call for PVR and PVG will be at 1:00 p.m. ET. Prepared remarks by A. James Dearlove, President and Chief Executive Officer, will be followed by a question and answer period. Investors and analysts may participate via phone by dialing 1-877-407-9205 five to ten minutes before the scheduled start of the conference call, or via webcast by logging on to the Company's website at www.pennvirginia.com at least 20 minutes prior to the scheduled start of the call to download and install any necessary audio software. A telephone replay of the call will be available until March 1 at 11:59 p.m. ET by dialing 1- 877-660-6853 and using replay passcodes: conference ID #228281, password #286. An on-demand replay of the conference call will be available at the Company's website for 14 days beginning shortly after the call.

Headquartered in Radnor, PA and a member of the S&P SmallCap 600 Index, Penn Virginia Corporation (NYSE: PVA) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of natural gas reserves. PVA also owns approximately 82 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of the general partner and the largest unitholder of Penn Virginia Resource Partners, L.P. (NYSE: PVR), a manager of coal properties and related assets and the operator of a midstream natural gas gathering and processing business. For more information about PVA, please visit the Company's website at www.pennvirginia.com.

Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the cost of finding and successfully developing oil and gas reserves; PVA's ability to acquire new oil and gas reserves and the price for which such reserves can be acquired; energy prices generally and specifically, the price of crude oil, natural gas, NGLs and coal; the relationship between natural gas and NGL prices; the price of coal and its comparison to the price of natural gas and oil; the volatility of commodity prices for crude oil, natural gas, NGLs and coal; the projected demand for crude oil, natural gas, NGLs and coal; the projected supply of crude oil, natural gas, NGLs and coal; PVA's ability to obtain adequate pipeline transportation capacity for its oil and gas production; non-performance by third party operators in wells in which PVA owns an interest; competition among producers in the oil and natural gas and coal industries generally and among natural gas midstream companies; the extent to which the amount and quality of actual production of PVA's oil and natural gas or PVR's coal differs from estimated recoverable proved oil and gas reserves and coal reserves; PVR's ability to generate sufficient cash from its midstream and coal businesses to pay the minimum quarterly distribution to its general partner and its unitholders; hazards or operating risks incidental to PVA's business and to PVR's coal or midstream business; PVR's ability to successfully manage its relatively new natural gas midstream business; PVR's ability to acquire new coal reserves or midstream assets on satisfactory terms and to integrate effectively these new operations; the price for which coal reserves can be acquired; PVR's ability to continually find and contract for new sources of natural gas supply for its midstream business; PVR's ability to retain existing or acquire new midstream customers; PVR's ability to lease new and existing coal reserves; the ability of PVR's lessees to produce sufficient quantities of coal on an economic basis from PVR's reserves; the ability of PVR's lessees to obtain favorable contracts for coal produced from its reserves; PVR's exposure to the credit risk of its coal lessees and midstream customers; hazards or operating risks incidental to midstream operations; unanticipated geological problems; the dependence of PVR's midstream business on having connections to third party pipelines; the availability of required drilling rigs, materials and equipment; the occurrence of unusual weather or operating conditions including force majeure events; the failure of equipment or processes to operate in accordance with specifications or expectations; the failure of PVR's infrastructure and its lessees' mining equipment or processes to operate in accordance with specifications or expectations; delays in anticipated start-up dates of PVA's oil and natural gas production and PVR's lessees' mining operations and related coal infrastructure projects; environmental risks affecting the drilling and producing of oil and gas wells, the mining of coal reserves or the production, gathering and processing of natural gas; the timing of receipt of necessary governmental permits by PVA and by PVR or PVR's lessees; the risks associated with having or not having price risk management programs; labor relations and costs; accidents; changes in governmental regulation or enforcement practices, especially with respect to environmental, health and safety matters, including with respect to emissions levels applicable to coal-burning power generators; uncertainties relating to the outcome of current and future litigation regarding mine permitting; risks and uncertainties relating to general domestic and international economic (including inflation and interest rates) and political conditions (including the impact of potential terrorist attacks); the experience and financial condition of PVR's coal lessees and midstream customers, including the lessees' ability to satisfy their royalty, environmental, reclamation and other obligations to PVR and others; PVR's ability to expand its midstream business by constructing new gathering systems, pipelines and processing facilities on an economic basis and in a timely manner; coal handling joint venture operations; and changes in financial market conditions.

Additional information concerning these and other factors can be found in PVA's press releases and public periodic filings with the Securities and Exchange Commission, including PVA's Annual Report on Form 10-K for the year ended December 31, 2005. Many of the factors that will determine PVA's future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. PVA undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

                      PENN VIRGINIA CORPORATION
                          OPERATIONS SUMMARY

                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Production
   Natural gas (MMcf)             7,959     6,724    28,968    25,550
   Oil and condensate (Mbbl)         99        72       382       302
   Total oil, condensate and
    natural gas production
    (MMcfe)                       8,553     7,156    31,260    27,362
   Coal royalty tons
    (thousands)                   8,311     7,731    32,778    30,227
   Inlet volumes (MMcf)          16,560    11,912    55,991    38,875

Prices and margin
  Natural gas ($/Mcf)             $6.60    $11.22     $7.35     $8.31
  Oil and condensate ($/Bbl)     $49.08    $50.89    $55.59    $45.67
  Coal royalties ($/ton)          $2.99     $2.82     $2.99     $2.74
  Gross midstream processing
   margin (in thousands)        $17,396   $13,672   $68,121   $44,745
           CONSOLIDATED STATEMENTS OF EARNINGS - unaudited
                (in thousands, except per share data)

                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------
Revenues
  Natural gas                   $52,535   $75,416  $212,919  $212,427
  Oil and condensate              4,859     3,664    21,237    13,792
  Natural gas midstream          97,375   135,306   402,715   348,657
  Coal royalties                 24,875    21,804    98,163    82,725
  Other                           5,835     5,106    18,895    16,263
                               --------- --------- --------- ---------
    Total revenues              185,479   241,296   753,929   673,864
                               --------- --------- --------- ---------
Expenses
  Cost of midstream gas
   purchased                     79,979   121,634   334,594   303,912
  Operating                      13,968    10,043    47,406    32,685
  Exploration                     8,269     9,367    34,330    40,917
  Taxes other than income         3,550     4,524    14,767    16,005
  General and administrative     16,277    12,730    49,566    36,606
  Impairment of oil and gas
   properties                     8,517     1,297     8,517     4,785
  Depreciation, depletion and
   amortization                  27,636    20,613    94,217    76,937
                               --------- --------- --------- ---------
    Total expenses              158,196   180,208   583,397   511,847
                               --------- --------- --------- ---------

Operating income                 27,283    61,088   170,532   162,017

Other income (expense)
  Interest expense               (7,540)   (4,248)  (24,832)  (15,318)
  Derivatives                     8,094    (3,699)   19,497   (14,885)
  Other                           2,580       361     3,718     1,332
                               --------- --------- --------- ---------

Income before minority interest
 and income taxes                30,417    53,502   168,915   133,146

  Minority interest              11,831     8,115    43,018    30,389
  Income tax expense              7,883    17,976    49,988    40,669
                               --------- --------- --------- ---------

Net income                      $10,703   $27,411   $75,909   $62,088
                               ========= ========= ========= =========


Per share data

Net income per share, basic       $0.57     $1.47     $4.06     $3.35
                               ========= ========= ========= =========

Net income per share, diluted     $0.57     $1.46     $4.02     $3.31
                               ========= ========= ========= =========

Weighted average shares
 outstanding, basic              18,746    18,613    18,681    18,546
Weighted average shares
 outstanding, diluted            18,936    18,818    18,866    18,732
                      PENN VIRGINIA CORPORATION
                     CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                            December 31,  December 31,
                                               2006          2005
                                            ------------  ------------
                                            (unaudited)
Assets
     Current assets                        $    192,383  $    178,185
     Net property and equipment               1,358,383       983,219
     Equity investments                          25,355        26,672
     Goodwill and intangibles, net               40,763        45,769
     Other assets                                19,288        17,701
                                            ------------  ------------
          Total assets                     $  1,636,172  $  1,251,546
                                            ============  ============

Liabilities and Shareholders' Equity
     Current liabilities                   $    172,690  $    154,528
     Long-term debt                             221,000        79,000
     Long-term debt of Penn Virginia
      Resource Partners, L.P.                   207,214       246,846
     Other liabilities and deferred taxes       214,471       147,340
     Minority interest                          438,372       313,524
     Shareholders' equity                       382,425       310,308
                                            ------------  ------------
          Total liabilities and
           shareholders' equity            $  1,636,172  $  1,251,546
                                            ============  ============
          CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited
                            (in thousands)

                             Three Months Ended        Year Ended
                                December 31,          December 31,
                            --------------------  --------------------
                              2006       2005       2006       2005
                            ---------  ---------  ---------  ---------
Operating Activities
   Net income              $  10,703  $  27,411  $  75,909  $  62,088
   Adjustments to reconcile
    net income to net cash
    provided by operating
    activities:
   Depreciation, depletion
    and amortization          27,636     20,613     94,217     76,937
   Commodity derivative
    contracts:
     Total derivative
      losses (gains)          (7,493)    13,381    (17,535)    28,803
     Cash settlements of
      derivatives              1,486    (12,474)    (8,947)   (19,586)
   Impairment of oil and
    gas properties             8,517      1,297      8,517      4,785
   Minority interest          11,831      8,115     43,018     30,389
   Deferred income taxes       5,949      6,301     38,020     17,094
   Dry hole and unproved
    leasehold expense          6,577      8,087     24,502     29,736
   Other                      (1,223)      (475)     4,260      5,989
                            ---------  ---------  ---------  ---------
   Operating cash flow (see
    attached table
    "Reconciliation of
    Certain Non-GAAP
    Financial Measures")      63,983     72,256    261,961    236,235
   Changes in operating
    assets and liabilities    14,775     10,644     13,858     (4,828)
                            ---------  ---------  ---------  ---------
       Net cash provided by
        operating
        activities            78,758     82,900    275,819    231,407
                            ---------  ---------  ---------  ---------

Investing Activities
   Proceeds from sale of
    properties                    99         10      2,604     17,385
   Additions to property
    and equipment            (87,534)   (54,488)  (269,773)  (184,386)
   Acquisitions, net of
    cash acquired            (23,687)      (769)  (195,166)  (290,938)
                            ---------  ---------  ---------  ---------
       Net cash used in
        investing
        activities          (111,122)   (55,247)  (462,335)  (457,939)
                            ---------  ---------  ---------  ---------

Financing Activities
   Dividends paid             (2,100)    (2,108)    (8,398)    (8,358)
   Distributions paid to
    minority interest
    holders                  (10,483)    (8,490)   (38,627)   (30,737)
   Proceeds from issuance
    of partners' capital     117,818        (19)   117,818    126,456
   Net proceeds from PVA
    borrowings                41,000    (10,000)   142,000      3,000
   Net proceeds from PVR
    borrowings              (108,600)    (3,000)   (37,100)   137,200
   Payments for debt
    issuance costs              (668)      (450)      (668)    (2,835)
   Other                       3,349        321      5,916      2,248
                            ---------  ---------  ---------  ---------
       Net cash provided by
        financing
        activities            40,316    (23,746)   180,941    226,974
                            ---------  ---------  ---------  ---------

Net increase (decrease) in
 cash and cash equivalents     7,952      3,907     (5,575)       442
Cash and cash equivalents-
 beginning balance            12,386     22,006     25,913     25,471
                            ---------  ---------  ---------  ---------
Cash and cash equivalents-
 ending balance            $  20,338  $  25,913  $  20,338  $  25,913
                            =========  =========  =========  =========

                      PENN VIRGINIA CORPORATION
               QUARTER SEGMENT INFORMATION - unaudited
               (Dollars in millions except where noted)




                                         Oil and Gas          Coal
                                     -------------------- ------------
                                      Amount  (per Mcfe)*
                                     -------- -----------
Three months ended December 31, 2006

Production
   Oil, condensate and gas (MMcfe)     8,553
      Natural gas (MMcf)               7,959
      Crude oil and condensate
       (Mbbl)                             99
   Coal royalty tons (thousands of
    tons)                                                       8,311
   Inlet volumes (MMcf)

Revenues
   Natural gas                       $52,535       $6.60           $-
   Oil and condensate                  4,859       49.08            -
   Natural gas midstream                   -                        -
   Coal royalties                          -                   24,875
   Other                                 279                    4,991
                                     -------- ----------- ------------
      Total revenues                  57,673        6.74       29,866
                                     -------- ----------- ------------
Expenses
   Cost of midstream gas purchased         -           -            -
   Operating                           7,913        0.93        3,039
   Exploration                         8,269        0.97            -
   Taxes other than income             2,648        0.31          369
   General and administrative          4,177        0.49        2,808
   Impairment of oil and gas
    properties                         8,517        1.00            -
   Depreciation, depletion and
    amortization                      17,482        2.04        5,349
                                     -------- ----------- ------------
      Total expenses                  49,006        5.73       11,565
                                     -------- ----------- ------------

Operating income (loss)               $8,667       $1.01      $18,301
                                     -------- ----------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired (1)                        $88,535                  $11,795




                                     Natural Gas
                                      Midstream   Other   Consolidated
                                     ----------- -------- ------------

Three months ended December 31, 2006

Production
   Oil, condensate and gas (MMcfe)
      Natural gas (MMcf)
      Crude oil and condensate
       (Mbbl)
   Coal royalty tons (thousands of
    tons)
   Inlet volumes (MMcf)                  16,560

Revenues
   Natural gas                               $-       $-      $52,535
   Oil and condensate                         -        -        4,859
   Natural gas midstream                 97,375        -       97,375
   Coal royalties                             -        -       24,875
   Other                                    529       36        5,835
                                     ----------- -------- ------------
      Total revenues                     97,904       36      185,479
                                     ----------- -------- ------------
Expenses
   Cost of midstream gas purchased       79,979        -       79,979
   Operating                              3,014        2       13,968
   Exploration                                -        -        8,269
   Taxes other than income                  366      167        3,550
   General and administrative             2,816    6,476       16,277
   Impairment of oil and gas
    properties                                -        -        8,517
   Depreciation, depletion and
    amortization                          4,643      162       27,636
                                     ----------- -------- ------------
      Total expenses                     90,818    6,807      158,196
                                     ----------- -------- ------------

Operating income (loss)                  $7,086  $(6,771)     $27,283
                                     ----------- -------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired (1)                            $9,438   $1,453     $111,221




                                         Oil and Gas          Coal
                                     -------------------- ------------
                                      Amount  (per Mcfe)*
                                     -------- -----------
Three months ended December 31, 2005

Production
   Oil, condensate and gas (MMcfe)     7,156
      Natural gas (MMcf)               6,724
      Crude oil and condensate
       (Mbbl)                             72
   Coal royalty tons (thousands of
    tons)                                                       7,731
   Inlet volumes (MMcf)

Revenues
   Natural gas                       $75,416      $11.22           $-
   Oil and condensate                  3,664       50.89            -
   Natural gas midstream                   -                        -
   Coal royalties                          -                   21,804
   Other                                  19                    4,523
                                     -------- ----------- ------------
      Total revenues                  79,099       11.05       26,327
                                     -------- ----------- ------------
Expenses
   Cost of midstream gas purchased         -           -            -
   Operating                           5,671        0.79        1,651
   Exploration                         9,367        1.31            -
   Taxes other than income             3,704        0.52          402
   General and administrative          3,015        0.42        3,275
   Impairment of oil and gas
    properties                         1,297        0.18            -
   Depreciation, depletion and
    amortization                      12,108        1.69        4,450
                                     -------- ----------- ------------
      Total expenses                  35,162        4.91        9,778
                                     -------- ----------- ------------

Operating income (loss)              $43,937       $6.14      $16,549
                                     -------- ----------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                            $51,168                     $888



                                     Natural Gas
                                      Midstream   Other   Consolidated
                                     ----------- -------- ------------

Three months ended December 31, 2005

Production
   Oil, condensate and gas (MMcfe)
      Natural gas (MMcf)
      Crude oil and condensate
       (Mbbl)
   Coal royalty tons (thousands of
    tons)
   Inlet volumes (MMcf)                  11,912

Revenues
   Natural gas                               $-       $-      $75,416
   Oil and condensate                         -        -        3,664
   Natural gas midstream                135,306        -      135,306
   Coal royalties                             -        -       21,804
   Other                                    512       52        5,106
                                     ----------- -------- ------------
      Total revenues                    135,818       52      241,296
                                     ----------- -------- ------------
Expenses
   Cost of midstream gas purchased      121,634        -      121,634
   Operating                              2,721        -       10,043
   Exploration                                -        -        9,367
   Taxes other than income                  338       80        4,524
   General and administrative             2,875    3,565       12,730
   Impairment of oil and gas
    properties                                -        -        1,297
   Depreciation, depletion and
    amortization                          3,941      114       20,613
                                     ----------- -------- ------------
      Total expenses                    131,509    3,759      180,208
                                     ----------- -------- ------------

Operating income (loss)                  $4,309  $(3,707)     $61,088
                                     ----------- -------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                                $3,001     $200      $55,257



* Natural gas revenues are shown per Mcf, oil and gas condensate
 revenues are shown per Bbl, and all other amounts are shown per Mcfe.

(1) Coal segment excludes noncash capital expenditures of $0.3 million
 and acquisitions of assets other than property or equipment of $1.2
 million.

                      PENN VIRGINIA CORPORATION
             YEAR-TO-DATE SEGMENT INFORMATION - unaudited
               (Dollars in millions except where noted)



                                          Oil and Gas         Coal
                                    ----------------------- ---------
                                     Amount    (per Mcfe) *
                                    --------- -------------
Year ended December 31, 2006

Production
  Oil, condensate and gas (MMcfe)     31,260
     Natural gas (MMcf)               28,968
     Crude oil and condensate (Mbbl)     382
  Coal royalty tons (thousands of
   tons)                                                      32,778
  Inlet volumes (MMcf)

Revenues
     Natural gas                    $212,919         $7.35        $-
     Oil and condensate               21,237         55.59         -
     Natural gas midstream                 -                       -
     Coal royalties                        -                  98,163
     Other                             1,800                  14,818
                                    --------- ------------- ---------
        Total revenues               235,956          7.55   112,981
                                    --------- ------------- ---------
Expenses
     Cost of midstream gas purchased       -             -         -
     Operating                        27,403          0.88     8,600
     Exploration                      34,330          1.10         -
     Taxes other than income          11,810          0.38       934
     General and administrative       12,826          0.41     9,604
     Impairment of oil and gas
      properties                       8,517          0.27         -
     Depreciation, depletion and
      amortization                    56,237          1.80    20,399
                                    --------- ------------- ---------
       Total expenses                151,123          4.83    39,537
                                    --------- ------------- ---------

Operating Income                     $84,833         $2.71   $73,444
                                    --------- ------------- ---------

Additions to property and equipment
 and acquisitions, net of cash
 acquired (1)                       $331,551                 $92,697


                                    Natural Gas
                                     Midstream    Other   Consolidated
                                    ----------- --------- ------------

Year ended December 31, 2006

Production
  Oil, condensate and gas (MMcfe)
     Natural gas (MMcf)
     Crude oil and condensate (Mbbl)
  Coal royalty tons (thousands of
   tons)
  Inlet volumes (MMcf)                  55,991

Revenues
     Natural gas                            $-        $-     $212,919
     Oil and condensate                      -         -       21,237
     Natural gas midstream             402,715         -      402,715
     Coal royalties                          -         -       98,163
     Other                               2,195        82       18,895
                                    ----------- --------- ------------
        Total revenues                 404,910        82      753,929
                                    ----------- --------- ------------
Expenses
     Cost of midstream gas purchased   334,594         -      334,594
     Operating                          11,403         -       47,406
     Exploration                             -         -       34,330
     Taxes other than income             1,420       603       14,767
     General and administrative         11,023    16,113       49,566
     Impairment of oil and gas
      properties                             -         -        8,517
     Depreciation, depletion and
      amortization                      17,094       487       94,217
                                    ----------- --------- ------------
       Total expenses                  375,534    17,203      583,397
                                    ----------- --------- ------------

Operating Income                       $29,376  $(17,121)    $170,532
                                    ----------- --------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired (1)                          $37,015    $3,676     $464,939

                                          Oil and Gas         Coal
                                    ----------------------- ---------
                                     Amount    (per Mcfe) *
                                    --------- -------------
Year ended December 31, 2005

Production
  Oil, condensate and gas (MMcfe)     27,362
     Natural gas (MMcf)               25,550
     Crude oil and condensate (Mbbl)     302
  Coal royalty tons (thousands of
   tons)                                                      30,227
  Inlet volumes (MMcf)

Revenues
     Natural gas                    $212,427         $8.31        $-
     Oil and condensate               13,792         45.67         -
     Natural gas midstream                 -                       -
     Coal royalties                        -                  82,725
     Other                               600                  13,030
                                    --------- ------------- ---------
        Total revenues               226,819          8.29    95,755
                                    --------- ------------- ---------
Expenses
     Cost of midstream gas purchased       -             -         -
     Operating                        17,300          0.63     5,755
     Exploration                      40,917          1.50         -
     Taxes other than income          13,188          0.48     1,129
     General and administrative        9,264          0.34     9,237
     Impairment of oil and gas
      properties                       4,785          0.17         -
     Depreciation, depletion and
      amortization                    45,885          1.68    17,890
                                    --------- ------------- ---------
       Total expenses                131,339          4.80    34,011
                                    --------- ------------- ---------

Operating Income                     $95,480         $3.49   $61,744
                                    --------- ------------- ---------

Additions to property and equipment
 and acquisitions, net of cash
 acquired (2)                       $171,301                 $96,862

                                    Natural Gas
                                    Midstream
                                        (3)       Other   Consolidated
                                    ----------- --------- ------------

Year ended December 31, 2005

Production
  Oil, condensate and gas (MMcfe)
     Natural gas (MMcf)
     Crude oil and condensate (Mbbl)
  Coal royalty tons (thousands of
   tons)
  Inlet volumes (MMcf)                  38,875

Revenues
     Natural gas                            $-        $-     $212,427
     Oil and condensate                      -         -       13,792
     Natural gas midstream             348,657         -      348,657
     Coal royalties                          -         -       82,725
     Other                               1,936       697       16,263
                                    ----------- --------- ------------
        Total revenues                 350,593       697      673,864
                                    ----------- --------- ------------
Expenses
     Cost of midstream gas purchased   303,912         -      303,912
     Operating                           9,347       283       32,685
     Exploration                             -         -       40,917
     Taxes other than income             1,268       420       16,005
     General and administrative          6,982    11,123       36,606
     Impairment of oil and gas
      properties                             -         -        4,785
     Depreciation, depletion and
      amortization                      12,738       424       76,937
                                    ----------- --------- ------------
       Total expenses                  334,247    12,250      511,847
                                    ----------- --------- ------------

Operating Income                       $16,346  $(11,553)    $162,017
                                    ----------- --------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired (2)                         $206,811      $350     $475,324
* Natural gas revenues are shown per Mcf, oil and gas condensate
 revenues are shown per Bbl, and all other amounts are shown per Mcfe.

(1) Oil and gas segment includes deferred tax assets of $32.3 million
 and non-property and equipment net liabilities of $29.1 million
 associated with the Crow Creek Acquisition. Coal segment excludes
 noncash capital expenditures of $0.3 million and includes acquisition
 of assets other than property or equipment of $1.2 million.

(2) Oil and gas segment excludes noncash capital expenditures of $13.2
 million. Coal segment excludes noncash capital expenditures of $14.4
 million.

(3) Natural Gas Midstream segment acquired in March 2005.
                      PENN VIRGINIA CORPORATION
  RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES - unaudited
                            (in thousands)



                                Three Months Ended     Year Ended
                                   December 31,       December 31,
                                ------------------ -------------------
                                  2006     2005      2006      2005
                                --------- -------- --------- ---------
Reconciliation of GAAP "Net
 cash provided by operating
 activities" to Non-GAAP
 "Operating cash flow"
-------------------------------
Net cash provided by operating
 activities                      $78,758  $82,900  $275,819  $231,407
Adjustments:
  Changes in operating assets
   and liabilities               (14,775) (10,644)  (13,858)    4,828
                                --------- -------- --------- ---------

Operating cash flow (see Note 1
 below)                         $ 63,983  $72,256  $261,961  $236,235
                                ========= ======== ========= =========


Reconciliation of GAAP
 "Additions to property and
 equipment" to Non-GAAP
 "Capital expenditures"
-------------------------------
Additions to property and
 equipment                       $87,534  $54,488  $269,773  $184,386
Acquisitions, net of cash
 acquired                         23,687      769   195,166   290,938
Seismic expenditures               1,291      960     6,238     7,836
Delay rentals and other
 expenditures                        448    1,120     3,504     3,937
Other noncash additions              301        -       301         -
Acquisitions of assets and
 liabilities other than
 property or equipment            (2,051)       -    (4,407)        -
Sale of lease rights                   -        -         -    (6,625)
Change in accrued capital
 expenditures                      5,378   (1,114)    4,534      (375)
Less: Capitalized interest        (1,364)  (1,071)   (3,152)   (3,496)
                                --------- -------- --------- ---------

Capital expenditures (see Note
 2 below)                       $115,224  $55,152  $471,957  $476,601
                                ========= ======== ========= =========

Note 1 - Operating cash flow represents net cash provided by operating
 activities before changes in assets and liabilities. Operating cash
 flow is presented because management believes it is a useful adjunct
 to net cash provided by operating activities under accounting
 principles generally accepted in the United States (GAAP). Management
 believes that operating cash flow is widely accepted as a financial
 indicator of an oil and gas company's ability to generate cash which
 is used to internally fund exploration and development activities,
 service debt and pay dividends. This measure is widely used by
 investors and professional research analysts in the valuation,
 comparison, rating and investment recommendations of companies within
 the oil and gas exploration and production industry. Operating cash
 flow is not a measure of financial performance under GAAP and should
 not be considered as an alternative to cash flows from operating,
 investing, or financing activities as an indicator of cash flows, or
 as a measure of liquidity, or as an alternative to net income.

Note 2 - Capital expenditures represents cash additions to property
 and equipment, plus cash paid for acquisitions, plus seismic
 expenditures, delay rentals and other expenditures, change in accrued
 capital expenditures and non-cash well accruals, minus capitalized
 interest. Management believes capital expenditures provide useful
 information regarding the Company's capital program as a supplement
 to cash additions to property and equipment.
                       PENN VIRGINIA CORPORATION
                            GUIDANCE TABLE
               (Dollars in millions except where noted)

 Penn Virginia Corporation is providing the following guidance
  regarding financial and operational expectations for 2007.


                                       ---------------
                                       Fourth
                                        Quarter  YTD
                                        2006    2006    2007 Guidance
                                       -------- ------ ---------------
Oil & Gas Segment:
---------------------------------------
 Production:
   Natural gas (Bcf) - See Note a          8.0   29.0   33.6 -   35.5
   Crude oil and condensate (Mbbl) -
    See Note b                              99    382    480 -    500
     Equivalent production (Bcfe)          8.6   31.3   36.5 -   38.5
     Equivalent daily production
      (MMcfe)                             93.0   85.6   95.6 -  104.1

 Expenses:
   Direct expenses                       $14.7   52.0   62.0 -   65.0
   Exploration                            $8.3   34.3   32.0 -   35.0
   Depreciation, depletion and
    amortization ($ per Mcfe)            $2.04   1.80   1.85 -   2.00

 Capital Expenditures:
   Development drilling                  $59.2  175.3  230.0 -  250.0
   Exploratory drilling                  $18.2   41.9   37.0 -   40.0
   Pipeline, gathering, facilities        $2.6   14.5   25.0 -   30.0
   Seismic                                $1.3    6.2    2.0 -    5.0
   Lease acquisition, field projects
    and other - See Note c               $11.0   28.1   16.0 -   20.0
   Proved property acquisitions             $-   72.5
     Total Oil & Gas Capital
      Expenditures                       $92.3  338.5  310.0 -  345.0

Coal Segment (PVR):
---------------------------------------
 Coal royalty tons (millions)              8.3   32.8   31.0 -   33.0

 Revenues:
   Average royalty per ton               $2.99   2.99   2.85 -   2.95
   Other                                  $5.0   14.8   13.0 -   15.0

 Expenses:
   Direct expenses                        $6.2   19.1   18.0 -   20.0
   Depreciation, depletion and
    amortization                          $5.3   20.4   19.5 -   21.0

 Capital Expenditures:
   Expansion and acquisitions             $9.8   90.3    3.5 -    4.5
   Maintenance capital expenditures         $-    0.1    0.1 -    0.2
     Total Coal Capital Expenditures      $9.8   90.4    3.6 -    4.7

Natural Gas Midstream Segment (PVR):
---------------------------------------
 Inlet volumes (MMcf per day) - see
  Note d                                   180    153    180 -    190

 Expenses:
   Direct expenses                        $6.2   23.8   27.0 -   30.0
   Depreciation, depletion and
    amortization                          $4.6   17.1   17.5 -   18.5

 Capital Expenditures:
   Expansion and acquisitions             $9.5   30.0   36.0 -   39.0
   Maintenance capital expenditures       $2.1    9.4   11.0 -   13.0
     Total Midstream Capital
      Expenditures                       $11.6   39.4   47.0 -   52.0

Corporate and Other:
---------------------------------------
 General and administrative expense -
  PVA                                     $6.1   15.7   15.0 -   16.0
 General and administrative expense -
  PVG                                     $0.4    0.4    2.5 -    3.5
 Interest expense:
   PVA average long-term debt
    outstanding                         $196.5  129.0  260.0 -  280.0
   PVA interest rate                       6.7%   6.4%   6.8%-    7.2%
   Percentage capitalized - see Note e      30%    33%    30%-     40%
   PVR average long-term debt
    outstanding                         $301.0  289.9  220.0 -  230.0
   PVR interest rate assumed               6.8%   6.4%   6.8%-    7.2%

 Minority interest in PVG & PVR - see
  Note f                                 $11.8   43.0    see Note f
 Income tax rate - see Note g               40%    39%       40%

 Other capital expenditures               $1.5    3.7    1.0 -    2.0


 These estimates are meant to provide guidance only and are subject to
  change as the operating environment of the Company changes.

 See Notes on following page.
                      PENN VIRGINIA CORPORATION
                            GUIDANCE TABLE
               (Dollars in millions except where noted)


                       Notes to Guidance Table:
----------------------------------------------------------------------

a - The oil and gas segment's natural gas derivative positions as of
     December 31, 2006, are summarized below:

                                                      Weighted Average
                                                       Price per Mmbtu
                                                      ----------------
                                                          Collars
                                                      ----------------
                                   Average
                                    Mmbtu
                                     Per   Additional
                                     Day       Put     Floor   Ceiling
                                   ------- ---------- -------- -------
    First Quarter 2007
       Costless collar             30,000               $8.50  $16.35
       Three-way collar            13,000      $5.00    $7.62  $10.15
       Swap                         5,000               $7.12
    Second Quarter 2007
       Costless collar             15,000               $7.33  $12.93
       Three-way collar            33,000      $5.00    $7.55   $9.05
    Third Quarter 2007
       Costless collar             15,000               $7.33  $12.93
       Three-way collar            33,000      $5.00    $7.55   $9.05
    Fourth Quarter 2007
       Costless collar             11,685               $8.28  $15.78
       Three-way collar            19,379      $5.17    $7.74  $10.43
    First Quarter 2008
       Costless collar             10,000               $9.00  $17.95
       Three-way collar            12,500      $5.40    $8.00  $12.15
    Second Quarter 2008
       Three-way collar             2,500      $5.00    $8.00  $10.75
    Third Quarter 2008
       Three-way collar             2,500      $5.00    $8.00  $10.75
    Fourth Quarter 2008
       Three-way collar             2,500      $5.00    $8.00  $10.75

    The costless collar natural gas prices per Mmbtu per quarter
     include the effects of basis differentials, if any.

b - The oil and gas segment's oil derivative positions as of December
     31, 2006, are summarized below:
                                                      Weighted Average
                                                        Price per Bbl
                                                      ----------------
                                                          Collars
                                                      ----------------
                                   Average
                                    Bbbls
                                     Per
                                     Day               Floor   Ceiling
                                   -------            -------- -------

    First Quarter 2007 through
     Fourth Quarter 2007              200              $60.00  $72.20

c - Lease acquisition excludes total non-cash expenditures of $32.3
     million in the year ended December 31, 2006, related to deferred
     taxes in the Crow Creek Acquisition.

d - The natural gas midstream segment's derivative positions as of
     December 31, 2006, are summarized below:

                                        Average           Weighted
                                         Volume           Average
                                        Per Day            Price
                                   ------------------ ----------------

    Ethane Swaps (revenue)               (in gallons)     (per gallon)
       First Quarter 2007 through
        Fourth Quarter 2007                   34,440          $0.5050
       First Quarter 2008 through
        Fourth Quarter 2008                   34,440          $0.4700

    Propane Swaps (revenue)              (in gallons)     (per gallon)
       First Quarter 2007 through
        Fourth Quarter 2007                   26,040          $0.7550
       First Quarter 2008 through
        Fourth Quarter 2008                   26,040          $0.7175

    Crude Oil Swaps (revenue)            (in barrels)     (per barrel)
       First Quarter 2007 through
        Fourth Quarter 2007                      560           $50.80
       First Quarter 2008 through
        Fourth Quarter 2008                      560           $49.27

    Natural Gas Swaps (cost of gas
     purchased)                            (in MMbtu)      (per MMbtu)
       First Quarter 2007 through
        Fourth Quarter 2007                    4,000            $6.97
       First Quarter 2008 through
        Fourth Quarter 2008                    4,000            $6.97
    Management estimates that reflective of the above derivative
     positions, for every $1.00 per MMBtu decrease or increase in
     natural gas prices from the $7.00 per MMBtu budgeted 2007
     benchmark price, natural gas midstream gross processing margin
     and operating income in 2007 would increase or decrease,
     respectively, by approximately $8.1 million. This assumes oil and
     other liquids prices and inlet volumes remain constant at
     budgeted levels. In addition, management also estimates that
     reflective of the above derivative positions, for every $5.00 per
     barrel increase or decrease in the oil prices from the $60.00 per
     barrel budgeted 2007 benchmark price, natural gas midstream gross
     processing margin and operating income would increase or
     decrease, respectively, by approximately $10.0 million. This
     assumes natural gas prices and inlet volumes remain constant at
     budgeted levels.

e - The Company capitalizes a portion of interest expense incurred to
     recognize the carrying cost of certain unproved properties as
     required by accounting principles generally accepted in the
     United States.

f - Through November 2006, Penn Virginia owned 39 percent of Penn
     Virginia Resource Partners, L.P. ("PVR"). Minority interest
     through November 2006 reflected the remaining 61 percent owned by
     parties other than Penn Virginia, less the general partner's
     incentive distribution rights. In December 2006, Penn Virginia
     contributed its general partner interest and almost all of its
     limited partner interest in PVR to Penn Virginia GP Holdings,
     L.P. ("PVG") in exchange for PVG common units. PVG closed its
     initial public offering in December 2006 and owns the two percent
     general partner interest in PVR and a 42 percent limited partner
     interest. Penn Virginia controls the general partner of PVG and
     owns an 82 percent limited partner interest in PVG. PVG's
     operating results are included in Penn Virginia's consolidated
     financial statements, and minority interest beginning in December
     2006 reflects the 18 percent of PVG owned by parties other than
     Penn Virginia.

g - Deferred federal and state income taxes are expected to comprise
     approximately 60% to 70% of the Company's income tax expense for
     the full year.

Source: Penn Virginia Corporation