Penn Virginia Corporation Announces Second Quarter 2007 Results

RADNOR, Pa.--

Penn Virginia Corporation (NYSE:PVA) today reported financial and operational results for the three months ended June 30, 2007 and provided an update of full-year 2007 guidance.

Second Quarter Highlights

Operational and financial results for the second quarter of 2007 included the following:

    --  Seventh straight quarterly record for oil and gas production
        of 10.1 billion cubic feet of natural gas equivalent (Bcfe),
        or 110.5 million cubic feet of natural gas equivalent (MMcfe)
        per day, a 34 percent increase over the 7.5 Bcfe in the prior
        year quarter;

    --  Operating income of $57.1 million, as compared to $49.9
        million in the prior year quarter;

    --  Net income of $23.9 million, or $0.63 per diluted share, as
        compared to $18.2 million, or $0.48 per diluted share, in the
        prior year quarter;

    --  Adjusted net income, a non-GAAP (generally accepted accounting
        principles) measure which excludes the effects of a non-cash
        change in derivatives fair value, of $20.0 million, or $0.53
        per diluted share, as compared to $22.5 million, or $0.59 per
        diluted share, in the prior year quarter; and

    --  Operating cash flow, a non-GAAP measure, of $78.0 million, as
        compared to $68.8 million in the prior year quarter.

A reconciliation of non-GAAP financial measures appears in the financial tables later in this release.

The overall increase in operating income for the quarter over the prior year was fueled by an $11.3 million, or 46 percent, increase in operating income from the oil and gas segment, due primarily to the 34 percent increase in oil and gas production and a seven percent increase in the realized natural gas price. The increase in oil and gas segment operating income was partially offset by a $1.8 million decrease in operating income from the coal segment, a $0.1 million decrease in operating income from the natural gas midstream segment and a $2.2 million increase in corporate expenses. The increase in net income was primarily due to the increase in operating income and the effects of changes in the valuation of unrealized derivative positions, partially offset by an increase in interest expense.

Management Comment

A. James Dearlove, President and Chief Executive Officer of PVA, said, "Our increased operating cash flow benefited from a solid performance in our oil and gas operations, which delivered a strong production increase and was impacted by higher realized gas prices than in the prior year quarter. Our oil and natural gas production in the second quarter was at record levels and we have increased our full-year 2007 oil and gas production guidance.

"We spent approximately 62 percent of our 2007 oil and gas capital expenditures budget during the first half of 2007 and expect to see the benefit of that spending, along with the recently announced acquisitions, during upcoming quarters. During the second quarter, we benefited from recent exploratory success in south Louisiana and we began to see the impact of restored production in Appalachia. Second quarter production increases from our development drilling projects in east Texas and Mississippi were less than anticipated due to delays in stimulations, along with inclement weather and related pipeline construction delays, in east Texas and gathering and compression limitations in Mississippi. We have recently increased completion activity in east Texas and resolved the issues in Mississippi, and we therefore expect larger production increases in both areas in upcoming quarters.

"In PVR's coal royalty segment, second quarter coal production by our lessees increased one percent to 8.1 million tons and the average coal royalty decreased two percent to $2.98 per ton compared with the second quarter of 2006.

"PVR's natural gas midstream segment experienced a two percent decrease in gross midstream processing margin in the second quarter of 2007 as compared to a stronger second quarter of 2006. The decrease was due to a 15 percent decrease in the gross midstream processing margin per thousand cubic feet (Mcf) of volume (from $1.36 per Mcf to $1.14 per Mcf) that was largely offset by a 17 percent increase in system throughput volumes. Moreover, thus far in the third quarter of 2007, "frac spreads," which drive processing margins, are at record high levels.

"The value of our 82 percent ownership stake in Penn Virginia GP Holdings, L.P. (NYSE:PVG), the owner of the general partner of Penn Virginia Resource Partners, L.P. (NYSE:PVR), has increased over 80 percent since its initial public offering (IPO) in December 2006. Considering the increased market value of PVG and the $36 million current annualized run rate of distributions that we receive from PVG, we believe the combined value of our oil and gas operations as well as our stakes in PVG and PVR will become more-fully reflected in our market value over time.

"We look forward to continued solid growth over the remainder of 2007 and believe that we have the proper strategies in place at each business segment and the financial strength to achieve that growth."

Oil and Gas Segment Review

Oil and gas production grew 34 percent from 7.5 Bcfe in the second quarter of 2006 to a record 10.1 Bcfe in second quarter of 2007, the seventh straight quarterly record for oil and gas production. See today's separate operational update news release for a more detailed discussion of second quarter 2007 drilling and production operations for the oil and gas business segment.

Oil and gas operating income for the second quarter of 2007 was $35.7 million, or 46 percent higher, as compared to $24.4 million in the second quarter of 2006. Total oil and gas revenues increased by 40 percent from $55.6 million in the second quarter of 2006 to $78.1 million in the second quarter of 2007. The increase in revenues was primarily attributable to the production increase and, to a lesser extent, a seven percent increase in the realized natural gas price.


    Total oil and gas segment expenses increased 36 percent to $42.5
million, or $4.22 per thousand cubic feet of natural gas equivalent
(Mcfe) produced, in the second quarter of 2007 from $31.2 million, or
$4.17 per Mcfe produced, in the second quarter of 2006, as discussed
below:

    --  Operating expense increased to $10.0 million, or $1.00 per
        Mcfe produced, in the second quarter of 2007 from $6.6
        million, or $0.88 per Mcfe produced, in the second quarter of
        2006. In addition to a general increase in oilfield service
        costs in all operating areas, the increase was due to the
        production increase, including new production from the
        Mid-Continent operations acquired in June 2006, and additional
        expense in a number of operating areas related to compression,
        water disposal, workovers and other maintenance.

    --  Taxes other than income increased to $4.6 million, or $0.46
        per Mcfe produced, in the second quarter of 2007 from $3.4
        million, or $0.45 per Mcfe produced, in the prior year. The
        increase was primarily due to the production increase.

    --  General and administrative (G&A) expense increased to $3.5
        million, or $0.35 per Mcfe produced, in the second quarter of
        2007 from $3.0 million, or $0.40 per Mcfe produced, in the
        prior year due primarily to the addition of a Mid-Continent
        regional office and staff in Tulsa and an increase in staffing
        in both the Appalachia and Gulf Coast offices due to an
        expansion of operations across the oil and gas segment.

    --  Exploration expense increased to $5.7 million, or $0.56 per
        Mcfe produced, in the second quarter of 2007 from $5.5
        million, or $0.74 per Mcfe produced, in the prior year.

    --  Depletion, depreciation and amortization (DD&A) expense
        increased to $18.6 million, or $1.85 per Mcfe produced, in the
        second quarter of 2007 from $12.7 million, or $1.70 per Mcfe
        produced, in the prior year. The increase was primarily due to
        the production increase and the increase in the average
        depletion rate.

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

Second quarter 2007 operating income in PVR's coal segment was $17.6 million, or nine percent lower than the $19.3 million in the prior year. Revenues increased two percent to $28.4 million in the second quarter of 2007 from $27.9 million in the prior year and coal royalty revenue decreased one percent to $24.0 million in the second quarter of 2007 from $24.3 million in the prior year. Coal production by PVR's lessees increased one percent to 8.1 million tons in the second quarter of 2007 from 8.0 million tons in the prior year. The slight overall increase was primarily attributable to higher lessee production in the San Juan Basin, partially offset by lower lessee production in northern Appalachia and the Illinois Basin. The increase in revenues was due to the increase in coal production by PVR's lessees and an increase in coal services revenue, partially offset by a two percent decrease in the average coal royalty, from $3.04 per ton in the second quarter of 2006 to $2.98 per ton in the second quarter of 2007.

Expenses increased from $8.6 million in the second quarter of 2006 to $10.8 million in the second quarter of 2007, a 27 percent increase, primarily due to: (i) a $1.2 million increase in operating expense, largely as a result of higher production from a sub-leased property; (ii) a $0.6 million increase in DD&A expense due to higher coal production by lessees; and (iii) a $0.3 million increase in general and administrative expense, largely related to acquisition activities.

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

Second quarter 2007 operating income in PVR's natural gas midstream segment was $9.8 million, as compared to $10.0 million in the prior year. System throughput volumes at PVR's gas processing plants and gathering systems increased 17 percent to 17.0 Bcf, or approximately 187 million cubic feet (MMcf) per day, in the second quarter of 2007 from 14.5 Bcf, or approximately 159 MMcf per day, in the prior year. The increase in system throughput volumes was primarily due to higher average daily system throughput volumes resulting from a pipeline acquisition completed in the second quarter of 2006 and successful drilling results of local producers.

The gross midstream processing margin decreased two percent to $19.3 million, or $1.14 per Mcf, in the second quarter of 2007, from $19.7 million, or $1.36 per Mcf, in the prior year. The decrease in the gross midstream processing margin was mainly the result of a $19.4 million increase in the cost of midstream gas purchased, largely offset by a $19.0 million increase in natural gas midstream revenue due to increased system throughput volumes and higher liquids and residue gas prices. Producer services revenue increased by $1.1 million during the second quarter of 2007 as compared to the prior year primarily due to an increase in marketed gas volumes. Expenses, other than the cost of midstream gas purchased, increased by $0.9 million during the second quarter of 2007 as compared to the prior year primarily due to increased operating expense associated with the increased system throughput volumes.

    Partnership Distributions and Consolidated Financial Statements

As previously announced, on August 20, 2007 PVG will pay to unitholders of record as of August 6, 2007 a quarterly cash distribution covering the period April 1 through June 30, 2007 in the amount of $0.28 per unit, or an annualized rate of $1.12 per unit. This annualized distribution represents a $0.08 per unit increase over the annualized distribution of $1.04 per unit paid in the prior quarter.

As the result of PVG's distribution increase, PVA will receive a cash distribution of $9.0 million in the third quarter of 2007.

PVA is the largest unitholder of PVG and reports its financial results on a consolidated basis with the financial results of PVG. Similarly, PVG owns PVR's general partner, including the incentive distribution rights, and is PVR's largest limited partner 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 derives its cash flow solely from cash distributions received from PVR.

To further assist investors and analysts in the analysis of PVA's financial statements, a conversion of the GAAP-compliant financial statements ("As reported") to the equity method of accounting ("As adjusted") is included in the "Conversion to Non-GAAP Equity Method" section of this release. Using the equity method, PVR's coal and midstream segment results are reduced to a few line items and the results from oil and gas operations and corporate are therefore highlighted. Management believes that this is useful since the oil and gas and corporate segments provide a majority of the cash flow from operations generated by PVA, as compared to distributions PVA receives from PVG and PVR. Management believes that the financial statements presented using the equity method are less complex and more comparable to those of other oil and gas exploration and production companies.

Capital Resources and Impact of Derivatives

As of June 30, 2007, PVA had borrowed $328.5 million under its revolving credit facility as compared to $221.0 million at December 31, 2006. The increase in borrowings was primarily due to PVA's oil and gas capital expenditures and acquisitions in the first half of 2007. PVR's outstanding borrowings as of June 30, 2007 were $275.1 million, including $11.8 million of senior unsecured notes classified as current portion of long-term debt, an increase from $218.0 million as of December 31, 2006. Consolidated interest expense increased $2.9 million from $5.4 million in the second quarter of 2006 to $8.3 million in the second quarter of 2007, due primarily to the higher weighted average level of outstanding borrowings during the second quarter of 2007 as compared to the second quarter of 2006.

PVA reported a derivative loss of $0.9 million the second quarter of 2007, as compared to a loss of $6.4 million for the same period of 2006. The decrease in the derivative loss was primarily due to the change in the fair value, on a "mark-to-market," basis of open natural gas midstream hedging positions. Cash settlements of derivatives during the second quarter of 2007 resulted in net cash payments of $1.8 million, compared to $2.9 million of net cash payments in the prior year period.

See the Guidance Table included in this release for detail of derivative positions as of June 30, 2007.

Guidance for 2007

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

2007 Second Quarter Financial Results Conference Call

A conference call and webcast, during which management will discuss second quarter 2007 financial and operational results for PVA, is scheduled for Thursday, August 2, 2007 at 3:00 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 PVA'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 August 16, 2007 at 11:59 p.m. ET by dialing 1-877-660-6853 and using the following replay pass codes: account #286, conference ID #248539. An on-demand replay of the conference call will be available at PVA's website 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 reserves in onshore regions of the U.S., including the Appalachian Basin, the Cotton Valley play in east Texas, the Selma Chalk play in Mississippi, the Mid-Continent region and the Gulf Coast of Louisiana and Texas. PVA also owns approximately 82 percent of Penn Virginia GP Holdings, L.P. (NYSE:PVG), the owner of the general partner and the largest unit holder 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 its 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 volatility of commodity prices for natural gas, crude oil, NGLs and coal; the cost of finding and successfully developing oil and gas reserves; our 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 natural gas, crude oil, 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 crude oil; the projected demand for natural gas, crude oil, NGLs and coal; the projected supply of natural gas, crude oil, NGLs and coal; the availability of required drilling rigs, production equipment and materials; our ability to obtain adequate pipeline transportation capacity for our oil and gas production; non-performance by third party operators in wells in which we own 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 our 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 our 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 natural gas midstream assets on satisfactory terms; the price for which PVR can acquire coal reserves; 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 natural gas 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 natural gas midstream customers; hazards or operating risks incidental to natural gas midstream operations; unanticipated geological problems; the dependence of PVR's natural gas midstream business on having connections to third party pipelines; 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 our 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 us 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 natural gas midstream customers, including their ability to satisfy their royalty, environmental, reclamation and other obligations to PVR and others; PVR's ability to expand its natural gas 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; changes in financial market conditions; and PVG's ability to generate sufficient cash from its interests in PVR to maintain and pay the quarterly distribution to its general partner and its unitholders.

Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2006. Many of the factors that will determine our 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. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as the result of new information, future events or otherwise.


                      PENN VIRGINIA CORPORATION
                          OPERATIONS SUMMARY

                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Production
  Natural gas (MMcf)              9,381     6,926    17,465    13,677
  Oil and condensate (MBbls)        113        95       220       186
  Total oil, condensate and
   natural gas production
   (MMcfe)                       10,060     7,496    18,786    14,793
  Coal royalty tons
   (thousands)                    8,060     7,966    16,344    15,686
  Midstream system throughput
   volumes (MMcf)                17,019    14,466    32,919    28,648

Prices and margin
  Natural gas ($/Mcf)          $   7.68  $   7.17  $   7.37  $   8.03
  Oil and condensate ($/Bbl)   $  50.82  $  59.19  $  49.30  $  55.99
  Average gross coal royalty
   ($/ton)                     $   2.98  $   3.04  $   3.00  $   2.98
  Gross midstream processing
   margin (in thousands)       $ 19,330  $ 19,658  $ 34,917  $ 30,188



           CONSOLIDATED STATEMENTS OF EARNINGS - unaudited
                (in thousands, except per share data)


                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Revenues
  Natural gas                  $ 72,032  $ 49,634  $128,651  $109,844
  Oil and condensate              5,750     5,623    10,854    10,414
  Natural gas midstream         114,407    95,350   209,725   204,531
  Coal royalties                 24,029    24,254    49,029    46,676
  Other                           6,180     4,289    10,409     8,592
                               --------- --------- --------- ---------
    Total revenues              222,398   179,150   408,668   380,057
                               --------- --------- --------- ---------
Expenses
  Cost of midstream gas
   purchased                     95,077    75,692   174,808   174,343
  Operating                      15,522    10,701    29,955    19,179
  Exploration                     5,667     5,510    10,737    13,401
  Taxes other than income         5,463     3,930    10,839     8,895
  General and administrative     15,049    11,714    30,100    22,389
  Depreciation, depletion and
   amortization                  28,546    21,664    56,616    43,245
                               --------- --------- --------- ---------
    Total expenses              165,324   129,211   313,055   281,452
                               --------- --------- --------- ---------

Operating income                 57,074    49,939    95,613    98,605

Other income (expense)
  Interest expense               (8,308)   (5,396)  (15,035)  (10,184)
  Derivatives                      (892)   (6,379)  (17,613)   (6,537)
  Other                             544       363     1,960       759
                               --------- --------- --------- ---------

Income before minority
 interest and income taxes       48,418    38,527    64,925    82,643

  Minority interest               9,228     7,759    18,524    12,648
  Income tax expense             15,312    12,551    18,120    27,670
                               --------- --------- --------- ---------

Net income                     $ 23,878  $ 18,217  $ 28,281  $ 42,325
                               ========= ========= ========= =========

Per share data

Net income per share, basic    $   0.63  $   0.49  $   0.75  $   1.13
                               ========= ========= ========= =========
Net income per share, diluted  $   0.63  $   0.48  $   0.74  $   1.12
                               ========= ========= ========= =========

Weighted average shares
 outstanding, basic              37,750    37,354    37,682    37,336
Weighted average shares
 outstanding, diluted            38,055    37,826    37,962    37,794


                      PENN VIRGINIA CORPORATION
                     CONSOLIDATED BALANCE SHEETS
                            (in thousands)


                                              June 30,    December 31,
                                                2007          2006
                                            ------------  ------------
                                            (unaudited)
Assets
  Current assets                            $    211,489  $    192,383
  Net property and equipment                   1,558,587     1,358,383
  Other assets                                    79,815        82,383
                                            ------------  ------------
    Total assets                            $  1,849,891  $  1,633,149
                                            ============  ============

Liabilities and Shareholders' Equity
  Current liabilities                       $    184,348  $    172,690
  Long-term debt                                 328,500       221,000
  Long-term debt of Penn Virginia Resource
   Partners, L.P.                                263,283       207,214
  Other liabilities and deferred taxes           223,186       211,448
  Minority interest - (a)                        192,402       438,372
  Shareholders' equity - (a)                     658,172       382,425
                                            ------------  ------------
    Total liabilities and shareholders'
     equity                                 $  1,849,891  $  1,633,149
                                            ============  ============

(a) - The decrease in minority interest and corresponding increase in
 shareholders' equity is primarily due to a gain recognized on PVR's
 initial public offering in 2001 and each subsequent PVR equity
 issuance to third parties. In accordance with SEC Staff Accounting
 Bulletin No. 51, PVA deferred recognition of the gain until all PVR
 junior securities converted to common units in May 2007.

          CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited
                            (in thousands)


                            Three Months Ended     Six Months Ended
                                 June 30,              June 30,
                           --------------------- ---------------------
                              2007       2006       2007       2006
                           ---------- ---------- ---------- ----------
Operating Activities
  Net income               $  23,878  $  18,217  $  28,281  $  42,325
  Adjustments to reconcile
   net income to net cash
   provided by operating
   activities:
  Depreciation, depletion
   and amortization           28,546     21,664     56,616     43,245
  Commodity derivative
   contracts:
    Total derivative
     losses                    2,374      6,454     19,516      7,633
    Cash receipts
     (payments) to settle
     derivatives for
     period                   (1,817)    (2,888)     1,695     (6,217)
  Minority interest            9,228      7,759     18,524     12,648
  Deferred income taxes       10,719      9,941     12,684     18,823
  Dry hole and unproved
   leasehold expense           4,330      3,984      8,716      8,359
  Other                          745      3,716      1,271      4,564
                           ---------- ---------- ---------- ----------
  Operating cash flow (see
   attached table
   "Reconciliation of
   Certain Non-GAAP
   Financial Measures")       78,003     68,847    147,303    131,380
  Changes in operating
   assets and liabilities    (10,147)    15,358    (14,506)    18,520
                           ---------- ---------- ---------- ----------
    Net cash provided by
     operating activities     67,856     84,205    132,797    149,900
                           ---------- ---------- ---------- ----------

Investing Activities
  Proceeds from sale of
   property and equipment        196      1,247        243      2,475
  Acquisitions, net of
   cash acquired             (72,389)  (158,418)   (76,224)  (164,663)
  Additions to property
   and equipment             (94,531)   (58,758)  (199,302)  (105,539)
                           ---------- ---------- ---------- ----------
    Net cash used in
     investing activities   (166,724)  (215,929)  (275,283)  (267,727)
                           ---------- ---------- ---------- ----------

Financing Activities
  Dividends paid              (2,124)    (2,103)    (4,240)    (4,197)
  Distributions paid to
   minority interest
   holders                   (12,445)    (9,173)   (23,465)   (18,317)
  Proceeds from issuance
   of partners' capital by
   PVG                             -          -        860          -
  Net proceeds from
   (repayments of) PVA
   borrowings                 54,500     78,000    107,500     66,000
  Net proceeds from
   (repayments of) PVR
   borrowings                 52,000     64,800     57,000     61,500
  Other                        6,621         14      6,704        734
                           ---------- ---------- ---------- ----------
    Net cash provided by
     (used in) financing
     activities               98,552    131,538    144,359    105,720
                           ---------- ---------- ---------- ----------

Net increase (decrease) in
 cash and cash equivalents      (316)      (186)     1,873    (12,107)
Cash and cash equivalents-
 beginning balance            22,527     13,992     20,338     25,913
                           ---------- ---------- ---------- ----------
Cash and cash equivalents-
 ending balance            $  22,211  $  13,806  $  22,211  $  13,806
                           ========== ========== ========== ==========


                      PENN VIRGINIA CORPORATION
              QUARTERLY SEGMENT INFORMATION - unaudited
              (Dollars in thousands except where noted)




                                           Oil and Gas          Coal
                                    ------------------------- --------
                                       Amount    (per Mcfe) *
                                    ------------ ------------
Three Months Ended June 30, 2007

Production
Oil, condensate and gas (MMcfe)           10,060
Natural gas (MMcf)                         9,381
Crude oil and condensate (MBbls)             113
Coal royalty tons (thousands of
 tons)                                                           8,060
Midstream system throughput volumes
 (MMcf)

Revenues
  Natural gas                       $     72,032 $       7.68 $      -
  Oil and condensate                       5,750        50.82        -
  Natural gas midstream                        -            -        -
  Coal royalties                               -            -   24,029
  Other                                      363            -    4,381
                                    ------------ ------------ --------
    Total revenues                        78,145         7.77   28,410
                                    ------------ ------------ --------
Expenses
  Cost of midstream gas purchased              -            -        -
  Operating                               10,025         1.00    2,514
  Exploration                              5,667         0.56        -
  Taxes other than income                  4,647         0.46      267
  General and administrative               3,502         0.35    2,743
  Depreciation, depletion and
   amortization                           18,632         1.85    5,320
                                    ------------ ------------ --------
    Total expenses                        42,473         4.22   10,844
                                    ------------ ------------ --------

Operating income (loss)             $     35,672 $       3.55 $ 17,566
                                    ------------ ------------ --------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    101,333              $ 52,130


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

Three Months Ended June 30, 2007

Production
Oil, condensate and gas (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput volumes
 (MMcf)                                  17,019

Revenues
  Natural gas                       $         - $      -  $     72,032
  Oil and condensate                          -        -         5,750
  Natural gas midstream                 114,407        -       114,407
  Coal royalties                              -        -        24,029
  Other                                   1,327      109         6,180
                                    ----------- --------- ------------
    Total revenues                      115,734      109       222,398
                                    ----------- --------- ------------
Expenses
  Cost of midstream gas purchased        95,077        -        95,077
  Operating                               2,983        -        15,522
  Exploration                                 -        -         5,667
  Taxes other than income                   336      213         5,463
  General and administrative              3,020    5,784        15,049
  Depreciation, depletion and
   amortization                           4,502       92        28,546
                                    ----------- --------- ------------
    Total expenses                      105,918    6,089       165,324
                                    ----------- --------- ------------

Operating income (loss)             $     9,816 $ (5,980) $     57,074
                                    ----------- --------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    11,859 $  1,598  $    166,920




                                           Oil and Gas          Coal
                                    ------------------------- --------
                                       Amount    (per Mcfe) *
                                    ------------ ------------
Three Months Ended June 30, 2006

Production
Oil, condensate and gas (MMcfe)            7,496
Natural gas (MMcf)                         6,926
Crude oil and condensate (MBbls)              95
Coal royalty tons (thousands of
 tons)                                                           7,966
Midstream system throughput volumes
 (MMcf)

Revenues
     Natural gas                    $     49,634 $       7.17 $      -
     Oil and condensate                    5,623        59.19        -
     Natural gas midstream                     -            -        -
     Coal royalties                            -            -   24,254
     Other                                   379            -    3,643
                                    ------------ ------------ --------
        Total revenues                    55,636         7.42   27,897
                                    ------------ ------------ --------
Expenses
     Cost of midstream gas
      purchased                                -            -        -
     Operating                             6,608         0.88    1,252
     Exploration                           5,510         0.74        -
     Taxes other than income               3,382         0.45      102
     General and administrative            2,984         0.40    2,469
     Depreciation, depletion and
      amortization                        12,737         1.70    4,747
                                    ------------ ------------ --------
       Total expenses                     31,221         4.17    8,570
                                    ------------ ------------ --------

Operating income (loss)             $     24,415 $       3.26 $ 19,327
                                    ------------ ------------ --------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    128,306              $ 69,163


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

Three Months Ended June 30, 2006

Production
Oil, condensate and gas (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput
 volumes (MMcf)                          14,466

Revenues
     Natural gas                    $         - $      -  $     49,634
     Oil and condensate                       -        -         5,623
     Natural gas midstream               95,350        -        95,350
     Coal royalties                           -        -        24,254
     Other                                  216       51         4,289
                                    ----------- --------- ------------
        Total revenues                   95,566       51       179,150
                                    ----------- --------- ------------
Expenses
     Cost of midstream gas
      purchased                          75,692        -        75,692
     Operating                            2,841        -        10,701
     Exploration                              -        -         5,510
     Taxes other than income                337      109         3,930
     General and administrative           2,665    3,596        11,714
     Depreciation, depletion and
      amortization                        4,069      111        21,664
                                    ----------- --------- ------------
       Total expenses                    85,604    3,816       129,211
                                    ----------- --------- ------------

Operating income (loss)             $     9,962 $ (3,765) $     49,939
                                    ----------- --------- ------------

Additions to property and
 equipment and acquisitions, net
 of cash acquired                   $    18,980 $    727  $    217,176



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


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




                                           Oil and Gas          Coal
                                    ------------------------- --------
                                       Amount    (per Mcfe) *
                                    ------------ ------------
Six Months Ended June 30, 2007

Production
Oil, condensate and gas (MMcfe)           18,786
Natural gas (MMcf)                        17,465
Crude oil and condensate (MBbls)             220
Coal royalty tons (thousands of
 tons)                                                          16,344
Midstream system throughput volumes
 (MMcf)

Revenues
  Natural gas                       $    128,651 $       7.37 $      -
  Oil and condensate                      10,854        49.30        -
  Natural gas midstream                        -            -        -
  Coal royalties                               -            -   49,029
  Other                                      675            -    7,865
                                    ------------ ------------ --------
    Total revenues                       140,180         7.46   56,894
                                    ------------ ------------ --------
Expenses
  Cost of midstream gas purchased              -            -        -
  Operating                               18,944         1.01    4,669
  Exploration                             10,737         0.57        -
  Taxes other than income                  8,869         0.47      590
  General and administrative               6,902         0.37    5,359
  Depreciation, depletion and
   amortization                           36,476         1.94   10,810
                                    ------------ ------------ --------
    Total expenses                        81,928         4.36   21,428
                                    ------------ ------------ --------

Operating income (loss)             $     58,252 $       3.10 $ 35,466
                                    ------------ ------------ --------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    201,058              $ 53,466


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

Six Months Ended June 30, 2007

Production
Oil, condensate and gas (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput volumes
 (MMcf)                                  32,919

Revenues
  Natural gas                       $         - $      -  $    128,651
  Oil and condensate                          -        -        10,854
  Natural gas midstream                 209,725        -       209,725
  Coal royalties                              -        -        49,029
  Other                                   1,725      144        10,409
                                    ----------- --------- ------------
    Total revenues                      211,450      144       408,668
                                    ----------- --------- ------------
Expenses
  Cost of midstream gas purchased       174,808        -       174,808
  Operating                               6,342        -        29,955
  Exploration                                 -        -        10,737
  Taxes other than income                   856      524        10,839
  General and administrative              6,043   11,796        30,100
  Depreciation, depletion and
   amortization                           9,145      185        56,616
                                    ----------- --------- ------------
    Total expenses                      197,194   12,505       313,055
                                    ----------- --------- ------------

Operating income (loss)             $    14,256 $(12,361) $     95,613
                                    ----------- --------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    17,864 $  3,138  $    275,526




                                           Oil and Gas          Coal
                                    ------------------------- --------
                                       Amount    (per Mcfe) *
                                    ------------ ------------
Six Months Ended June 30, 2006

Production
Oil, condensate and gas (MMcfe)           14,793
Natural gas (MMcf)                        13,677
Crude oil and condensate (MBbls)             186
Coal royalty tons (thousands of
 tons)                                                          15,686
Midstream system throughput volumes
 (MMcf)

Revenues
  Natural gas                       $    109,844 $       8.03 $      -
  Oil and condensate                      10,414        55.99        -
  Natural gas midstream                        -            -        -
  Coal royalties                               -            -   46,676
  Other                                    1,119            -    6,550
                                    ------------ ------------ --------
    Total revenues                       121,377         8.21   53,226
                                    ------------ ------------ --------
Expenses
  Cost of midstream gas purchased              -            -        -
  Operating                               11,607         0.78    2,221
  Exploration                             13,401         0.91        -
  Taxes other than income                  7,412         0.50      412
  General and administrative               5,468         0.37    4,699
  Depreciation, depletion and
   amortization                           25,390         1.72    9,499
                                    ------------ ------------ --------
    Total expenses                        63,278         4.28   16,831
                                    ------------ ------------ --------

Operating income (loss)             $     58,099 $       3.93 $ 36,395
                                    ------------ ------------ --------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    172,458              $ 75,167



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

Six Months Ended June 30, 2006

Production
Oil, condensate and gas (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput volumes
 (MMcf)                                  28,648

Revenues
  Natural gas                       $         - $      -  $    109,844
  Oil and condensate                          -        -        10,414
  Natural gas midstream                 204,531        -       204,531
  Coal royalties                              -        -        46,676
  Other                                     870       53         8,592
                                    ----------- --------- ------------
    Total revenues                      205,401       53       380,057
                                    ----------- --------- ------------
Expenses
  Cost of midstream gas purchased       174,343        -       174,343
  Operating                               5,351        -        19,179
  Exploration                                 -        -        13,401
  Taxes other than income                   725      346         8,895
  General and administrative              5,705    6,517        22,389
  Depreciation, depletion and
   amortization                           8,138      218        43,245
                                    ----------- --------- ------------
    Total expenses                      194,262    7,081       281,452
                                    ----------- --------- ------------

Operating income (loss)             $    11,139 $ (7,028) $     98,605
                                    ----------- --------- ------------

Additions to property and equipment
 and acquisitions, net of cash
 acquired                           $    21,541 $  1,036  $    270,202



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


                      PENN VIRGINIA CORPORATION
  RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES - unaudited
                            (in thousands)


                               Three Months Ended   Six Months Ended
                                    June 30,            June 30,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Reconciliation of GAAP "Net
 cash provided by operating
 activities" to Non-GAAP
 "Operating cash flow"
------------------------------
Net cash provided by operating
 activities                    $ 67,856  $ 84,205  $132,797  $149,900
Adjustments:
  Changes in operating assets
   and liabilities               10,147   (15,358)   14,506   (18,520)
                               --------- --------- --------- ---------

Operating cash flow (see Note
 1 below)                      $ 78,003  $ 68,847  $147,303  $131,380
                               ========= ========= ========= =========


Reconciliation of GAAP
 "Additions to property and
 equipment" to Non-GAAP
 "Capital expenditures"
------------------------------
Additions to property and
 equipment                     $ 94,531  $ 58,758  $199,302  $105,539
Acquisitions, net of cash
 acquired                        72,389   158,418    76,224   164,663
Seismic expenditures                716     1,229     1,582     3,640
Delay rentals and other
 expenditures                       582       299       654     1,406
Acquisition of assets and
 liabilities other than
 property or equipment             (554)   29,915      (931)   29,915
Change in accrued capital
 expenditures                    11,704     3,654     7,092     2,456
Less: Capitalized interest         (938)     (516)   (1,917)     (906)
                               --------- --------- --------- ---------

Capital expenditures (see Note
 2 below)                      $178,430  $251,757  $282,006  $306,713
                               ========= ========= ========= =========

Reconciliation of GAAP "Net
 income" to Non-GAAP "Net
 income as adjusted"
------------------------------
Net income as reported         $ 23,878  $ 18,217  $ 28,281  $ 42,325
Adjustments for derivatives:
  Derivative losses included
   in operating income            1,482     1,021     1,903     1,021
  Derivative losses included
   in other income                  892     6,379    17,613     6,537
  Cash receipts (payments) to
   settle derivatives for
   period                        (1,814)   (2,888)    1,698    (6,217)
  Impact of adjustments on
   minority interest             (3,884)   (1,729)   (4,686)   (1,729)
  Impact of adjustments on
   income tax expense              (565)    1,495    (8,295)    1,495
                               --------- --------- --------- ---------

Net income as adjusted (see
 Note 3 below)                 $ 19,989  $ 22,495  $ 36,515  $ 43,432
                               ========= ========= ========= =========

Note 1 - Operating cash flow represents net cash provided by operating
 activities before changes in assets and liabilities. Operating cash
 flow is presented because PVA believes it is a useful adjunct to net
 cash provided by operating activities under accounting principles
 generally accepted in the United States (GAAP). PVA 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 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, seismic expenditures,
 delay rentals and other expenditures, changes in accrued capital
 expenditures minus capitalized interest. PVA believes that capital
 expenditures provide useful information regarding PVA's capital
 program as a supplement to cash additions to property and equipment.

Note 3 - Net income as adjusted represents net income excluding any
 gains or losses on derivatives, adjusted for any cash settlements
 received (paid) and adjusted for related minority interest and income
 taxes. The Company believes "net income as adjusted" provides a
 useful measure which excludes the impact of mark-to-market
 accounting.
                      PENN VIRGINIA CORPORATION
           CONVERSION TO NON-GAAP EQUITY METHOD - unaudited
                            (in thousands)

Reconciliation of GAAP "Income Statements As Reported" to Non-GAAP
 "Income Statements As Adjusted" (see Note 1 below):
----------------------------------------------------------------------


                                      Three Months Ended June 30, 2007
                                      --------------------------------
                                         As                     As
                                       Reported  Adjustments  Adjusted
                                      ---------- ----------- ---------
Revenues
     Natural gas                      $  72,032           -  $ 72,032
     Oil and condensate                   5,750           -     5,750
     Natural gas midstream              114,407    (114,407)        -
     Coal royalties                      24,029     (24,029)        -
     Other                                6,180      (5,708)      472
                                      ---------- ----------- ---------
        Total revenues                  222,398    (144,144)   78,254
                                      ---------- ----------- ---------
Expenses
     Cost of midstream gas purchased     95,077     (95,077)        -
     Operating                           15,522      (5,497)   10,025
     Exploration                          5,667           -     5,667
     Taxes other than income              5,463        (607)    4,856
     General and administrative          15,049      (6,305)    8,744
     Depreciation, depletion and
      amortization                       28,546      (9,822)   18,724
                                      ---------- ----------- ---------
        Total expenses                  165,324    (117,308)   48,016
                                      ---------- ----------- ---------

Operating income                         57,074     (26,836)   30,238

Other income (expense)
     Interest expense                    (8,308)      3,617    (4,691)
     Derivatives                           (892)      7,550     6,658
     Equity earnings in PVG                   -       6,907     6,907
     Other                                  544        (466)       78
                                      ---------- ----------- ---------

Income before minority interest and
 income taxes                            48,418      (9,228)   39,190

     Minority interest                    9,228      (9,228)        -
     Income tax expense                  15,312           -    15,312
                                      ---------- ----------- ---------

Net income                            $  23,878           -  $ 23,878
                                      ========== =========== =========




                                      Three Months Ended June 30, 2006
                                      --------------------------------
                                         As                     As
                                       Reported  Adjustments  Adjusted
                                      ---------- ----------- ---------
Revenues
     Natural gas                      $  49,634           -  $ 49,634
     Oil and condensate                   5,623           -     5,623
     Natural gas midstream               95,350     (95,350)        -
     Coal royalties                      24,254     (24,254)        -
     Other                                4,289      (3,859)      430
                                      ---------- ----------- ---------
        Total revenues                  179,150    (123,463)   55,687
                                      ---------- ----------- ---------
Expenses
     Cost of midstream gas purchased     75,692     (75,692)        -
     Operating                           10,701      (4,094)    6,607
     Exploration                          5,510           -     5,510
     Taxes other than income              3,930        (439)    3,491
     General and administrative          11,714      (5,134)    6,580
     Depreciation, depletion and
      amortization                       21,664      (8,816)   12,848
                                      ---------- ----------- ---------
        Total expenses                  129,211     (94,175)   35,036
                                      ---------- ----------- ---------

Operating income                         49,939     (29,288)   20,651

Other income (expense)
     Interest expense                    (5,396)      4,416      (980)
     Derivatives                         (6,379)     11,929     5,550
     Equity earnings in PVG                   -       5,461     5,461
     Other                                  363        (277)       86
                                      ---------- ----------- ---------

Income before minority interest and
 income taxes                            38,527      (7,759)   30,768

     Minority interest                    7,759      (7,759)        -
     Income tax expense                  12,551           -    12,551
                                      ---------- ----------- ---------

Net income                            $  18,217           -  $ 18,217
                                      ========== =========== =========



                                       Six Months Ended June 30, 2007
                                      --------------------------------
                                         As                     As
                                       Reported  Adjustments  Adjusted
                                      ---------- ----------- ---------
Revenues
     Natural gas                      $ 128,651           -  $128,651
     Oil and condensate                  10,854           -    10,854
     Natural gas midstream              209,725    (209,725)        -
     Coal royalties                      49,029     (49,029)        -
     Other                               10,409      (9,590)      819
                                      ---------- ----------- ---------
        Total revenues                  408,668    (268,344)  140,324
                                      ---------- ----------- ---------
Expenses
     Cost of midstream gas purchased    174,808    (174,808)        -
     Operating                           29,955     (11,011)   18,944
     Exploration                         10,737           -    10,737
     Taxes other than income             10,839      (1,450)    9,389
     General and administrative          30,100     (12,706)   17,394
     Depreciation, depletion and
      amortization                       56,616     (19,955)   36,661
                                      ---------- ----------- ---------
        Total expenses                  313,055    (219,930)   93,125
                                      ---------- ----------- ---------

Operating income                         95,613     (48,414)   47,199

Other income (expense)
     Interest expense                   (15,035)      7,164    (7,871)
     Derivatives                        (17,613)     10,197    (7,416)
     Equity earnings in PVG                   -      13,348    13,348
     Other                                1,960        (819)    1,141
                                      ---------- ----------- ---------

Income before minority interest and
 income taxes                            64,925     (18,524)   46,401

     Minority interest                   18,524     (18,524)        -
     Income tax expense                  18,120           -    18,120
                                      ---------- ----------- ---------

Net income                            $  28,281           -  $ 28,281
                                      ========== =========== =========



                                       Six Months Ended June 30, 2006
                                      --------------------------------
                                         As                     As
                                       Reported  Adjustments  Adjusted
                                      ---------- ----------- ---------
Revenues
     Natural gas                      $ 109,844           -  $109,844
     Oil and condensate                  10,414           -    10,414
     Natural gas midstream              204,531    (204,531)        -
     Coal royalties                      46,676     (46,676)        -
     Other                                8,592      (7,420)    1,172
                                      ---------- ----------- ---------
        Total revenues                  380,057    (258,627)  121,430
                                      ---------- ----------- ---------
Expenses
     Cost of midstream gas purchased    174,343    (174,343)        -
     Operating                           19,179      (7,572)   11,607
     Exploration                         13,401           -    13,401
     Taxes other than income              8,895      (1,137)    7,758
     General and administrative          22,389     (10,404)   11,985
     Depreciation, depletion and
      amortization                       43,245     (17,637)   25,608
                                      ---------- ----------- ---------
        Total expenses                  281,452    (211,093)   70,359
                                      ---------- ----------- ---------

Operating income                         98,605     (47,534)   51,071

Other income (expense)
     Interest expense                   (10,184)      8,483    (1,701)
     Derivatives                         (6,537)     18,062    11,525
     Equity earnings in PVG                   -       8,912     8,912
     Other                                  759        (571)      188
                                      ---------- ----------- ---------

Income before minority interest and
 income taxes                            82,643     (12,648)   69,995

     Minority interest                   12,648     (12,648)        -
     Income tax expense                  27,670           -    27,670
                                      ---------- ----------- ---------

Net income                            $  42,325           -  $ 42,325
                                      ========== =========== =========



Note 1 - Equity method income statements represent consolidated income
 statements, minus 100% of PVG's consolidated results of operations,
 plus minority interest which represents the portion of PVG's
 consolidated results of operations that PVA does not own. Management
 believes equity method income statements provide useful information
 to allow the public to more easily discern PVG's effect on PVA's
 operations.
                      PENN VIRGINIA CORPORATION
          CONVERSION TO NON-GAAP EQUITY METHOD - (continued)
                            (in thousands)


Reconciliation of GAAP "Balance Sheet As Reported" to Non-GAAP
 "Balance Sheet As Adjusted" (see Note 2 below):
----------------------------------------------------------------------


                                        June 30, 2007 (unaudited)
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Assets
     Current assets                $  211,489     (96,962) $  114,527
     Net property and equipment     1,558,587    (606,597)    951,990
     Equity investment in PVG               -     210,297     210,297
     Other assets                      79,815     (74,348)      5,467
                                   ----------- ----------- -----------
          Total assets             $1,849,891    (567,610) $1,282,281
                                   =========== =========== ===========

Liabilities and Shareholders'
 Equity
     Current liabilities           $  183,448     (98,637) $   84,811
     Long-term debt                   328,500           -     328,500
     Long-term debt of Penn
      Virginia Resource Partners,
      L.P.                            263,283    (263,283)          -
     Other liabilities and deferred
      taxes                           224,086     (13,288)    210,798
     Minority interest                192,402    (192,402)          -
     Shareholders' equity             658,172           -     658,172
                                   ----------- ----------- -----------
          Total liabilities and
           shareholders' equity    $1,849,891    (567,610) $1,282,281
                                   =========== =========== ===========



                                      December 31, 2006 (unaudited)
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                  ------------ ----------- -----------
Assets
     Current assets                $  192,383     (83,710) $  108,673
     Net property and equipment     1,358,383    (556,513)    801,870
     Equity investment in PVG               -     (61,269)    (61,269)
     Other assets                      82,383     (50,691)     31,692
                                   ----------- ----------- -----------
          Total assets             $1,633,149    (752,183) $  880,966
                                   =========== =========== ===========

Liabilities and Shareholders'
 Equity
     Current liabilities           $  172,690     (90,048) $   82,642
     Long-term debt                   221,000           -     221,000
     Long-term debt of Penn
      Virginia Resource Partners,
      L.P.                            207,214    (207,214)          -
     Other liabilities and
      deferred taxes                  211,448     (16,549)    194,899
     Minority interest                438,372    (438,372)          -
     Shareholders' equity             382,425           -     382,425
                                   ----------- ----------- -----------
          Total liabilities and
           shareholders' equity    $1,633,149    (752,183) $  880,966
                                   =========== =========== ===========


Reconciliation of GAAP "Statement of Cash Flows As Reported" to Non-
 GAAP "Statement of Cash Flows As Adjusted" (see Note 3 below):
----------------------------------------------------------------------


                                     Three Months Ended June 30, 2007
                                                (unaudited)
                                     ---------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                     ---------- ----------- ----------
Operating Activities
     Net income                      $  23,878           -  $  23,878
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      28,546      (9,822)    18,724
     Commodity derivative contracts:
     Total derivative losses (gains)     2,374      (8,835)    (6,461)
     Cash received (paid) to settle
      derivatives for period            (1,817)      2,189        372
     Minority interest                   9,228      (9,228)         -
     Investment in PVG                       -      (6,907)    (6,907)
     Cash distributions from PVG and
      PVR                                    -       8,587      8,587
     Other                              15,794         639     16,433
                                     ---------- ----------- ----------
     Operating cash flow                78,003     (23,377)    54,626
     Changes in operating assets and
      liabilities                      (10,147)     (1,580)   (11,727)
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) operating activities      67,856     (24,957)    42,899
                                     ---------- ----------- ----------

Investing Activities
     Proceeds from sale of property
      and equipment                        196        (154)        42
     Acquisitions, net of cash
      acquired                         (72,389)     52,117    (20,272)
     Additions to property and
      equipment                        (94,531)     11,872    (82,659)
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) investing activities    (166,724)     63,835   (102,889)
                                     ---------- ----------- ----------

Financing Activities
     Dividends paid                     (2,124)          -     (2,124)
     Distributions paid to minority
      interest holders                 (12,445)     12,445          -
     Net proceeds from (repayments
      of) PVA borrowings                54,500           -     54,500
     Net proceeds from (repayments
      of) PVR borrowings                52,000     (52,000)         -
     Other                               6,621           -      6,621
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) financing activities      98,552     (39,555)    58,997
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                         (316)       (677)      (993)
Cash and cash equivalents-beginning
 balance                                22,527     (21,534)       993
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  22,211     (22,211) $       -
                                     ========== =========== ==========




                                     Three Months Ended June 30, 2006
                                                (unaudited)
                                    ----------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                    ----------------------------------
Operating Activities
     Net income                      $  18,217           -  $  18,217
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      21,664      (8,816)    12,848
     Commodity derivative contracts:
     Total derivative losses (gains)     6,454     (12,640)    (6,186)
     Cash received (paid) to settle
      derivatives for period            (2,888)      5,139      2,251
     Minority interest                   7,759      (7,759)         -
     Investment in PVG                       -      (5,461)    (5,461)
     Cash distributions from PVG and
      PVR                                    -       5,302      5,302
     Other                              17,641      (2,969)    14,672
                                     ---------- ----------- ----------
     Operating cash flow                68,847     (27,204)    41,643
     Changes in operating assets and
      liabilities                       15,358      (3,668)    11,690
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) operating activities      84,205     (30,872)    53,333
                                     ---------- ----------- ----------

Investing Activities
     Proceeds from sale of property
      and equipment                      1,247          (3)     1,244
     Acquisitions, net of cash
      acquired                        (158,418)     78,318    (80,100)
     Additions to property and
      equipment                        (58,758)      9,825    (48,933)
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) investing activities    (215,929)     88,140   (127,789)
                                     ---------- ----------- ----------

Financing Activities
     Dividends paid                     (2,103)          -     (2,103)
     Distributions paid to minority
      interest holders                  (9,173)      9,173          -
     Net proceeds from (repayments
      of) PVA borrowings                78,000           -     78,000
     Net proceeds from (repayments
      of) PVR borrowings                64,800     (64,800)         -
     Other                                  14           -         14
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) financing activities     131,538     (55,627)    75,911
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                         (186)      1,641      1,455
Cash and cash equivalents-beginning
 balance                                13,992      (9,110)     4,882
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  13,806      (7,469) $   6,337
                                     ========== =========== ==========



                                      Six Months Ended June 30, 2007
                                                (unaudited)
                                     ---------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                     ---------- ----------- ----------
Operating Activities
     Net income                      $  28,281           -  $  28,281
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      56,616     (19,955)    36,661
     Commodity derivative contracts:
     Total derivative losses (gains)    19,516     (12,325)     7,191
     Cash received (paid) to settle
      derivatives for period             1,695       4,261      5,956
     PVA minority interest in PVG       18,524     (18,524)         -
     Investment in PVG                       -     (12,470)   (12,470)
     Cash distributions from PVG and
      PVR                                    -      10,909     10,909
     Other                              22,671        (130)    22,541
                                     ---------- ----------- ----------
     Operating cash flow               147,303     (48,234)    99,069
     Changes in operating assets and
      liabilities                      (14,506)      2,972    (11,534)
                                     ---------- ----------- ----------
         Net cash provided by
          operating activities         132,797     (45,262)    87,535
                                     ---------- ----------- ----------

Investing Activities
     Proceeds from sale of property
      and equipment                        243        (197)        46
     Acquisitions, net of cash
      acquired                         (76,224)     52,456    (23,768)
     Additions to property and
      equipment                       (199,302)     18,874   (180,428)
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) investing activities    (275,283)     71,133   (204,150)
                                     ---------- ----------- ----------

Financing Activities
     Dividends paid                     (4,240)          -     (4,240)
     Distributions paid to minority
      interest holders                 (23,465)     23,465          -
     Proceeds from issuance of
      partners' capital by PVG             860        (860)         -
     Net proceeds from (repayments
      of) PVA borrowings               107,500           -    107,500
     Net proceeds from (repayments
      of) PVR borrowings                57,000     (57,000)         -
     Other                               6,704           -      6,704
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) financing activities     144,359     (34,395)   109,964
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                        1,873      (8,524)    (6,651)
Cash and cash equivalents-beginning
 balance                                20,338     (13,687)     6,651
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  22,211     (22,211) $       -
                                     ========== =========== ==========



                                      Six Months Ended June 30, 2006
                                                (unaudited)
                                    ----------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                    ----------- ----------- ----------
Operating Activities
     Net income                      $  42,325           -  $  42,325
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      43,245     (17,637)    25,608
     Commodity derivative contracts:
     Total derivative losses (gains)     7,633     (18,512)   (10,879)
     Cash received (paid) to settle
      derivatives for period            (6,217)      8,061      1,844
     PVA minority interest in PVG       12,648     (12,648)         -
     Investment in PVG                       -     (10,940)   (10,940)
     Cash distributions from PVG and
      PVR                                    -      10,606     10,606
     Other                              31,746      (1,111)    30,635
                                     ---------- ----------- ----------
     Operating cash flow               131,380     (42,181)    89,199
     Changes in operating assets and
      liabilities                       18,520       4,340     22,860
                                     ---------- ----------- ----------
         Net cash provided by
          operating activities         149,900     (37,841)   112,059
                                     ---------- ----------- ----------

Investing Activities
     Proceeds from sale of property
      and equipment                      2,475          (3)     2,472
     Acquisitions, net of cash
      acquired                        (164,663)     81,387    (83,276)
     Additions to property and
      equipment                       (105,539)     15,321    (90,218)
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) investing activities    (267,727)     96,705   (171,022)
                                     ---------- ----------- ----------

Financing Activities
     Dividends paid                     (4,197)          -     (4,197)
     Distributions paid to minority
      interest holders                 (18,317)     18,317          -
     Proceeds from issuance of
      partners' capital by PVG               -           -          -
     Net proceeds from (repayments
      of) PVA borrowings                66,000           -     66,000
     Net proceeds from (repayments
      of) PVR borrowings                61,500     (61,500)         -
     Other                                 734           -        734
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) financing activities     105,720     (43,183)    62,537
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                      (12,107)     15,681      3,574
Cash and cash equivalents-beginning
 balance                                25,913     (23,150)     2,763
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  13,806      (7,469) $   6,337
                                     ========== =========== ==========



Note 2 - Equity method balance sheets and statements of cash flows
 represent consolidated balance sheets, minus 100% of PVG's
 consolidated balance sheet, excluding minority interest which
 represents the portion of PVG's consolidated balance sheet that PVA
 does not own and including other adjustments to eliminate inter-
 company transactions. Management believes equity method balance
 sheets provide useful information to allow the public to more easily
 discern PVG's effect on PVA's assets, liabilities and shareholders'
 equity.

Note 3 - Equity method statements of cash flows represent consolidated
 statements of cash flows, minus 100% of PVG's consolidated statements
 of cash flows, excluding minority interest which represents the
 portion of PVG's consolidated results of operations that PVA does not
 own and including other adjustments to eliminate inter-company
 transactions. Management believes equity method balance sheets
 provide useful information to allow the public to more easily discern
 PVG's effect on PVA's assets, liabilities and shareholders' equity.
                      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.

                                  Actual                  Guidance
                             -----------------         ---------------

                              First   Second
                              Quarter  Quarter   YTD
                               2007     2007     2007  Full Year 2007
                             -------- --------  ------ ---------------
Oil & Gas Segment:
----------------------------
 Production:
  Natural gas (Bcf) - See
   Note a                        8.1      9.4    17.5   36.5  -  37.4
  Crude oil and condensate
   (MBbls) - See Note b          107      113     220    420  -   440
    Equivalent production
     (Bcfe)                      8.7     10.1    18.8   39.0  -  40.0
    Equivalent daily
     production (MMcfe)         97.0    110.7   103.8  106.8  - 109.6

 Expenses:
   Operating expenses       $   16.5     18.2    34.7   68.0  -  72.0
   Exploration              $    5.1      4.3     9.4   27.0  -  30.0
   Depreciation, depletion
    and amortization ($ per
    Mcfe)                   $   2.04     1.85    1.94   1.95  -  2.05

 Capital Expenditures:
    Development drilling    $   69.4     77.9   147.3  240.0  - 245.0
    Exploratory drilling    $   19.2      8.5    27.7   55.0  -  65.0
    Pipeline, gathering,
     facilities             $    4.9      5.3    10.2   26.0  -  30.0
    Seismic                 $    0.9      0.7     1.6    4.0  -   5.0
    Lease acquisition, field
     projects and other     $    0.8     12.1    12.9   17.0  -  20.0
    Proved property
     acquisitions           $    1.4      7.1     8.5   38.0  -  40.0
      Total oil & gas
       capital expenditures $   96.6    111.6   208.2  380.0  - 405.0

Coal Segment (PVR):
----------------------------
   Coal royalty tons
    (millions)                   8.3      8.1    16.3   32.0  -  34.0

 Revenues:
   Average royalty per ton  $   3.02     2.98    3.00   2.80  -  2.90
   Other                    $    3.5      4.4     7.9   14.0  -  15.5

 Expenses:
   Operating expenses       $    5.1      5.5    10.6   18.5  -  20.0
   Depreciation, depletion
    and amortization        $    5.5      5.3    10.8   22.0  -  23.0

 Capital Expenditures:
   Expansion and
    acquisitions            $    0.4     52.1    52.5   54.0  -  56.0
   Maintenance capital
    expenditures            $    0.1        -     0.1    0.2  -   0.3
    Total coal capital
     expenditures           $    0.5     52.1    52.6   54.2  -  56.3

Natural Gas Midstream
 Segment (PVR):
----------------------------
 Throughput volumes (MMcf
  per day) - see Note c          177      187     182    185  -   195

 Expenses:
   Operating expenses       $    6.9      6.3    13.2   27.0  -  29.0
   Depreciation, depletion
    and amortization        $    4.6      4.5     9.1   17.5  -  18.5

 Capital Expenditures:
   Expansion and
    acquisitions            $    5.7      6.9    12.6   38.0  -  40.0
   Maintenance capital
    expenditures            $    1.9      2.7     4.6    9.5  -  12.0
    Total midstream capital
     expenditures           $    7.6      9.6    17.2   47.5  -  52.0

Corporate and Other:
----------------------------
   General and
    administrative expense -
    PVA - see Note d        $    5.2      5.2    10.4   19.0  -  20.0
   General and
    administrative expense -
    PVG - see Note d        $    0.8      0.5     1.3    2.4  -   2.8
   Interest expense:
    PVA average long-term
     debt outstanding       $  242.0    306.5   274.3  320.0  - 340.0
    PVA interest rate            6.5%     6.6%    6.6%   6.8% -   7.2%
      Percentage capitalized
       - see Note e               25%      17%     20%    15% -    25%
    PVR average long-term
     debt outstanding       $  221.8    241.6   232.9  265.0  - 275.0
    PVR interest rate
     assumed                     6.2%     5.9%    6.0%   6.3% -   6.8%

   Minority interest in PVG
    & PVR                   $    9.3      9.2    18.5    see Note f
   Income tax rate - see
    Note g                        39%      39%     39%       40%

   Other capital
    expenditures            $    1.5      2.3     3.8    6.0  -   8.0


These estimates are meant to provide guidance only and are subject to
 change as PVA's operating environment 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
     June 30, 2007, are summarized below:
                                           Weighted Average Price
                            Average    -------------------------------
                           Volume Per  Additional Put
                               Day         Option      Floor   Ceiling
                          ------------ -------------- -------- -------

    Natural Gas Costless
     Collars              (in MMBtus)   (per MMBtu)
    Third Quarter 2007          15,000                $   7.33 $ 12.93
    Fourth Quarter 2007         11,685                $   8.28 $ 15.78
    First Quarter 2008          10,000                $   9.00 $ 17.95

    Natural Gas Three-way
     Collars              (in MMBtus)   (per MMBtu)
    Third Quarter 2007          33,000 $         5.00 $   7.39 $  9.05
    Fourth Quarter 2007         26,370 $         5.25 $   7.74 $ 11.14
    First Quarter 2008          22,500 $         5.44 $   8.00 $ 12.64
    Second Quarter 2008         22,500 $         5.00 $   7.11 $  9.09
    Third Quarter 2008          22,500 $         5.00 $   7.11 $  9.09
    Fourth Quarter 2008         15,870 $         5.21 $   7.58 $ 10.73
    First Quarter 2009          10,000 $         5.50 $   8.00 $ 12.60

    Crude Oil Costless
     Collars              (in barrels)  (per barrel)
    Third Quarter 2007             200                $  60.00 $ 72.20
    Fourth Quarter 2007            200                $  60.00 $ 72.20

    Crude Oil Swaps       (in barrels)  (per barrel)
    Third Quarter 2007             300                $  69.00
    Fourth Quarter 2007            300                $  69.00


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

                                           Weighted Average Price
                            Average    -------------------------------
                           Volume Per
                               Day                        Collars
                          ------------ -------------- ----------------
                                                        Put     Call
                                                      -------- -------
    Ethane Swaps          (in gallons)  (per gallon)
    Third Quarter 2007
     through Fourth
     Quarter 2007               34,440 $       0.5050
    First Quarter 2008
     through Fourth
     Quarter 2008               34,440 $       0.4700

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

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

    Natural Gas Swaps
     (purchase)           (in MMBtus)   (per MMBtu)
    Third Quarter 2007
     through Fourth
     Quarter 2008                4,000 $         6.97

    Natural Gasoline          (in
     Swap/Crude Oil Swap   gallons/in  (per gallon /
     (purchase)             barrels)     per barrel)
    Third Quarter 2007
     through Fourth
     Quarter 2007         23,520 / 560  1.265 / 57.12

                                                       (per
    Ethane Collar         (in gallons)                 gallon)
    Third Quarter 2007
     through Fourth
     Quarter 2007                5,000                $ 0.6100 $0.7125

                                                       (per
    Propane Collar        (in gallons)                 gallon)
    Third Quarter 2007
     through Fourth
     Quarter 2007                9,000                $ 1.0300 $1.1640

    Natural Gasoline                                   (per
     Collar               (in gallons)                 gallon)
    Third Quarter 2007
     through Fourth
     Quarter 2008                6,300                $ 1.4800 $1.6465

                                                       (per
    Crude Oil Collar      (in barrels)                 barrel)
    First Quarter 2008
     through Fourth
     Quarter 2008                  400                $  65.00 $ 75.25

    Frac Spread           (in MMBtus)   (per MMBtu)
    Third Quarter 2007
     through Fourth
     Quarter 2007                7,128 $        4.299

c-  Based on the derivative positions described above, management
     estimates that 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 $6.2 million for the last six
     months of the year. This assumes oil and other liquids prices and
     system throughput volumes remain constant at forecasted
     (guidance) levels. In addition, based on the derivative positions
     described above, management estimates that 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 $5.5 million for the
     last six months of the year. This assumes natural gas prices and
     system throughput volumes remain constant at forecasted
     (guidance) levels.

d-  Year-to-date 2007 results and full-year 2007 guidance reflects
     increased incentive compensation costs in general and
     administrative expense.

e-  PVA 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-  PVA controls the general partner of PVA GP Holdings, L.P. ("PVG")
     and owns an 82 percent limited partner interest in PVG. PVG's
     operating results are included in PVA's consolidated financial
     statements, and minority interest reflects the 18 percent of PVG
     owned by parties other than PVA.

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

Source: Penn Virginia Corporation