Penn Virginia Corporation Announces 2007 Results

RADNOR, Pa.--

Penn Virginia Corporation (NYSE:PVA) today reported financial and operational results for the fiscal year and three months ended December 31, 2007.

Full-Year and Fourth Quarter 2007 Highlights

Full-year 2007 results, with comparisons to full-year 2006 results, included the following:

-- Record annual oil and gas production of 40.6 billion cubic feet of
    natural gas equivalent (Bcfe), or 111.1 million cubic feet of
    natural gas equivalent (MMcfe) per day, a 30 percent increase as
    compared to 31.3 Bcfe, or 85.6 MMcfe per day;

-- Record proved reserves of 680 Bcfe, a 40 percent increase as
    compared to 487 Bcfe;

-- Operating cash flow, a non-GAAP (generally accepted accounting
    principles) measure, of $301.2 million as compared to $262.0
    million;

-- Net income of $50.8 million, or $1.32 per diluted share, as
    compared to $75.9 million, or $2.01 per diluted share; and

-- Adjusted net income, a non-GAAP measure which excludes the effects
    of a non-cash change in derivatives fair value, of $69.8 million,
    or $1.82 per diluted share, as compared to $60.7 million, or $1.61
    per diluted share.

Fourth quarter 2007 results, with comparisons to fourth quarter 2006 results, included the following:

-- Oil and gas production of 10.7 Bcfe, or 116.1 MMcfe per day, a 25
    percent increase as compared to 8.6 Bcfe, or 93.0 MMcfe per day;

-- Operating cash flow of $75.0 million as compared to $64.0 million;

-- Net income of $5.4 million, or $0.14 per diluted share, as compared
    to $10.7 million, or $0.28 per diluted share; and

-- Adjusted net income of $12.8 million, or $0.33 per diluted share,
    as compared to $7.1 million, or $0.19 per diluted share.

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

For 2007, operating income was $192.6 million, which was $22.1 million, or 13 percent, higher than 2006. The increase was primarily due to higher production in the oil and gas segment and higher processing margins in the natural gas midstream (PVR Midstream) segment, offset in part by higher operating expenses in the oil and gas segment, lower operating income from the coal and natural resource management (PVR Coal & NRM) segment and higher corporate general and administrative (G&A) expense. Operating cash flow for 2007 increased $39.2 million, or 15 percent, as compared to 2006, primarily due to the increase in operating income and a decrease in cash paid to settle derivatives, partially offset by higher interest expense resulting from increased debt levels. The 15 percent increase in adjusted net income was primarily due to the increase in operating income and a decrease in cash paid to settle derivatives, partially offset by the increase in interest expense. The increase in corporate G&A expense related primarily to increased personnel-related costs resulting from new employees added during 2007, higher stock-based compensation expense, new information systems conversion costs and a full year of PVG-related expenses in 2007.

In addition to the factors discussed above relating to the increase in operating income, the 33 percent decrease in net income in 2007 was primarily due to a $69.7 million increase in derivatives expense resulting mainly from changes in the valuation of unrealized derivative positions and higher interest expense, along with the related effects on income tax expense and minority interest.

In the fourth quarter of 2007, operating income was $45.1 million, which was $17.8 million, or 65 percent, higher than the fourth quarter of 2006. The increase was primarily due to higher production in the oil and gas segment and higher processing margins from PVR Midstream, offset in part by higher operating expenses in the oil and gas segment, lower segment operating income from PVR Coal & NRM and higher corporate G&A expense. Operating cash flow increased $11.0 million, or 17 percent, primarily due to the increase in operating income and a decrease in cash paid to settle derivatives, partially offset by higher interest expense resulting from increased debt levels. The 81 percent increase in adjusted net income was primarily due to the increase in operating income and a decrease in cash paid to settle derivatives, partially offset by the increase in interest expense. The increase in corporate G&A related primarily to increased personnel-related costs resulting from new employees added during 2007, higher stock-based compensation expense, new information systems conversion costs and a full quarter of PVG-related expenses in 2007.

The 50 percent decrease in net income in the fourth quarter of 2007 was primarily due to a $34.1 million increase in derivatives expense resulting mainly from changes in the valuation of unrealized derivative positions and higher interest expense, along with the related effects on income tax expense and minority interest.

Management Comment

A. James Dearlove, President and Chief Executive Officer of PVA, said, "We are pleased with the performance of our oil and gas operations, which delivered a 30 percent production increase in 2007 and a 25 percent fourth quarter production increase over the prior year quarter. This exceeds our original 2007 guidance, which estimated a 17 to 23 percent increase in production, excluding acquisitions. As a result of our results in 2007 and based on our 2008 capital expenditures budget, we are expecting production growth of 21 to 27 percent in 2008, excluding contributions from acquisitions or significant exploratory success.

"We also reported record proved reserves of 680 Bcfe at year-end 2007, a 40 percent increase over the prior year levels with 71 percent replaced through the drillbit. We replaced 628 percent of 2007 production at a reserve replacement cost of $2.04 per thousand cubic feet of natural gas equivalent (Mcfe). We drilled 289 gross wells during 2007 and anticipate drilling approximately 330 gross wells during 2008 as part of our $475 million oil and gas capital expenditures budget.

"In December 2007, we completed successful public securities offerings, raising approximately $372 million of gross proceeds from the dual offerings of both convertible debt and equity. In addition to broadening access to Penn Virginia by the investment community, the capital raise allowed us to dramatically reduce our bank borrowings such that we had over $350 million of credit availability at year-end 2007.

"PVR Midstream, the natural gas midstream segment of Penn Virginia Resource Partners, L.P. (NYSE:PVR), experienced a strong increase in operating income and cash flow throughout 2007 as the fractionation or "frac" spread - which is the difference between the price of natural gas liquids (NGLs) sold and the cost of natural gas purchased on a per MMBtu basis - was at record high levels and has remained strong into early 2008. PVR Midstream is expecting organic growth in 2008, including the completion of two new gas processing plants in Texas, one of which will process most of PVA's liquids-rich Cotton Valley natural gas production in east Texas.

"PVR Coal & NRM completed two coal reserve acquisitions in the Illinois Basin during 2007. In addition, PVR Coal & NRM completed significant acquisitions in Appalachia of forestland ($93 million) and oil and gas royalties ($31 million). Coal production by PVR's lessees was essentially flat in 2007 relative to the prior year, due to disruptions of Appalachian production in the fourth quarter; however, lessee tonnage is expected to increase in 2008. The overall market for coal improved during 2007 as spot prices increased in the areas where our royalties are market sensitive, although most of our lessees' contracts with their customers are long-term in nature. The primary reasons for the improvement in the coal market were increased domestic demand, as well as increased exports of Appalachian coal.

"The pretax value of our 82 percent stake in Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of the general partner and largest limited partner of PVR, has increased by approximately $300 million, or approximately $7.25 per PVA share, since its initial public offering in December 2006. Considering the increased market value of PVG, as well as the approximate $41 million current annualized run rate of distributions that we receive from PVG, we are very pleased with the performance of this investment.

"We look forward to continued growth in 2008 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

Proved natural gas and oil reserves increased by 40 percent in 2007, from 487 Bcfe at December 31, 2006 to 680 Bcfe at December 31, 2007. This increase was a result of successful drilling programs and acquisitions in the Cotton Valley play in east Texas, the Mid-Continent region and the Selma Chalk play in Mississippi. Oil and gas production grew 30 percent from 31.3 Bcfe in 2006 to a record 40.6 Bcfe in 2007. Fourth quarter 2007 oil and gas production grew 25 percent to 10.7 Bcfe from 8.6 Bcfe in the fourth quarter of 2006. See today's separate operational update news release for a more detailed discussion of full year and fourth quarter 2007 drilling and production operations for the oil and gas business segment.

Oil and gas operating income for 2007 was $104.2 million, or 23 percent higher than the $84.8 million in 2006. Total oil and gas revenues increased by 29 percent from $236.0 million in 2006 to $303.2 million in 2007. The increase in revenues was primarily attributable to the production increase and a $12.2 million gain on the sale in September 2007 of non-operated working interests in oil and gas properties, partially offset by a six percent decrease in the realized natural gas price.

In 2007, total oil and gas segment expenses increased by $47.9 million, or 32 percent, to $199.0 million, or $4.91 per Mcfe produced, from $151.1 million, or $4.83 per Mcfe produced, in 2006, as discussed below:

-- Cash operating expenses, which include lease operating expense,
    taxes other than income and G&A expense, increased by $28.8
    million, or 55 percent, to $80.8 million, or $1.99 per Mcfe
    produced, in 2007 from $52.0 million, or $1.66 per Mcfe produced,
    in 2006. The overall increase in cash operating expenses was due
    primarily to the production increase. Increases in cash operating
    expenses per unit of production are discussed below:

   -- Lease operating expense increased to $1.15 per Mcfe from $0.88
    per Mcfe, primarily due to a general increase in oilfield service
    costs and activity in all operating areas as well as additional
    expenses in a number of operating areas related to workovers,
    water disposal, gathering, compression, and repairs and
    maintenance; and

   -- Taxes other than income increased to $0.44 per Mcfe from $0.38
    per Mcfe primarily due to a severance tax refund received in 2006
    related to production in the Cotton Valley play.

-- Exploration expense decreased by $5.7 million, or 17 percent, to
    $28.6 million in 2007 from $34.3 million in 2006 due to increased
    success in 2007 relative to the prior year.

-- Depletion, depreciation and amortization (DD&A) expense increased
    by $30.8 million, or 55 percent, to $87.0 million, or $2.14 per
    Mcfe, from $56.2 million, or $1.80 per Mcfe. The overall increase
    in DD&A expense was primarily due to the production increase. The
    higher depletion rate per unit of production was primarily due to
    a shift in the production mix to areas with relatively high
    depletion rates, including the Gulf Coast, east Texas, Appalachia
    and the Mid-Continent.

Oil and gas operating income for the fourth quarter of 2007 was $18.8 million, or 117 percent higher than the $8.7 million in the fourth quarter of 2006. Total oil and gas revenues increased by 35 percent from $57.7 million in the fourth quarter of 2006 to $77.7 million in the fourth quarter of 2007. The increase in revenues was primarily attributable to the production increase, as well as a four percent increase in the realized natural gas price and a 57 percent increase in the realized oil and condensate price.

In the fourth quarter of 2007, total oil and gas segment expenses increased by $10.1 million, or 20 percent, to $58.9 million, or $5.52 per Mcfe produced, from $49.0 million, or $5.73 per Mcfe produced, in the fourth quarter of 2006, as discussed below:

-- Cash operating expenses increased by $10.7 million, or 73 percent,
    to $25.4 million, or $2.38 per Mcfe produced, in the fourth
    quarter of 2007 from $14.7 million, or $1.72 per Mcfe produced, in
    the fourth quarter of 2006. The overall increase in cash operating
    expenses was due in part to the production increase. Increases in
    cash operating expenses per unit of production are discussed
    below:

   -- Lease operating expense increased to $1.45 per Mcfe from $0.93
    per Mcfe, primarily due to:

       -- increased water disposal costs in east Texas caused by a
        disposal facility reaching capacity, necessitating more
        expensive trucking of associated water production until new
        disposal facilities can be completed by mid-2008;

       -- added compression in east Texas, Mississippi and south
        Louisiana due to increased production volumes;

       -- higher downhole maintenance expenses in several operating
        areas; and

       -- increased third party gathering charges in east Texas
        pending hook up to PVR Midstream's gas processing plant in
        east Texas in the first quarter of 2008, at which time
        gathering charges are expected to be more than offset by
        increased revenue from NGL production;

       In addition, the unexpected loss of production at a significant
        producing well in south Texas (approximately four MMcfe per
        day) for approximately two months during the quarter and the
        divestitures of low-cost royalty and working interest
        properties in Appalachia contributed to the increase in per
        unit expense during the quarter; and

   -- Taxes other than income increased to $0.43 per Mcfe from $0.31
    per Mcfe, primarily due to a severance tax refund received in the
    fourth quarter of 2006 related to production in the Cotton Valley
    play.

-- Exploration expense decreased by $3.3 million, or 40 percent, to
    $5.0 million in the fourth quarter of 2007 from $8.3 million in
    the prior year quarter due to increased success in the fourth
    quarter of 2007 relative to the prior year quarter.

-- DD&A expense increased by $10.9 million, or 62 percent, to $28.4
    million, or $2.66 per Mcfe, from $17.5 million, or $2.04 per Mcfe.
    The overall increase in DD&A expense was due in part to the
    production increase. The higher depletion rate per unit of
    production was primarily due to a shift in the production mix to
    areas with relatively high depletion rates, including the Gulf
    Coast, east Texas, Appalachia and the Mid-Continent.

Natural Gas Midstream and Coal & NRM Segments (PVR)

Operating income for PVR Midstream increased 67 percent to $48.9 million in 2007 from $29.4 million in the prior year. Fourth quarter 2007 segment operating income increased 191 percent to $20.6 million from $7.1 million in the prior year quarter. Operating income for PVR Coal & NRM decreased six percent to $68.8 million in 2007 from $73.4 million in the prior year. In the fourth quarter of 2007, operating income for PVR Coal & NRM decreased by 15 percent to $15.6 million from $18.3 million in the prior year quarter. Financial and operational results and full-year 2008 guidance for each of these segments are provided in the financial tables later in this release. In addition, operational updates for these segments are discussed in more detail in PVR's news release dated February 13, 2008 (please visit PVR's website, www.pvresource.com under "For Investors," for a copy of the release).

Consolidated Financial Statements

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.

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, PVG's 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.

Partnership Distributions

As previously announced, on February 19, 2008, PVG will pay to unitholders of record as of February 4, 2008 a quarterly cash distribution covering the period October 1 through December 31, 2007 in the amount of $0.32 per unit, or an annualized rate of $1.28 per unit. This annualized distribution represents a $0.08 per unit, or seven percent, increase over the annualized distribution of $1.20 per unit paid in the prior quarter and a 33 percent increase over the annualized distribution of $0.96 per unit for the same quarter of 2007.

As the result of PVG's distribution increase, PVA will receive a cash distribution of approximately $10.3 million in the first quarter of 2008 or approximately $41.1 million on an annualized basis.

Capital Resources and Impact of Derivatives

As of December 31, 2007, PVA had outstanding borrowings of $352.0 million, including $230.0 million of convertible senior subordinated notes due 2012 and $122.0 of borrowings under its revolving credit facility. The $131.0 million increase in outstanding borrowings as compared to the $221.0 million at December 31, 2006 was primarily due to higher spending to fund PVA's oil and gas capital expenditures and acquisitions during 2007, partially offset by the net proceeds from the offering of 3.45 million shares of common stock in December 2007 and the divestitures of working and royalty interests. PVR's outstanding borrowings as of December 31, 2007 were $411.7 million, including $12.6 million of senior unsecured notes classified as current portion of long-term debt, an increase from $218.0 million as of December 31, 2006. The increase in PVR's outstanding borrowings was primarily due to coal reserve and forestland acquisitions and natural gas midstream capital expenditures. Consolidated interest expense increased from $24.8 million in 2006 to $37.4 million in 2007. Consolidated interest expense increased from $7.5 million in the fourth quarter of 2006 to $11.5 million in the fourth quarter of 2007. The increases were due higher weighted average levels of outstanding borrowings during 2007 as compared to the prior year periods.

During 2007, derivatives expense was $47.3 million, as compared to income of $19.5 million in 2006. Derivatives expense related to PVR Midstream, included in consolidated derivatives expense, was $45.6 million in 2007. Cash settlements of derivatives included in these amounts resulted in net cash payments of $3.7 million during 2007, as compared to $8.9 million of net cash receipts in 2006. Cash settlements of derivatives related to PVR Midstream, included in consolidated cash settlements, were $17.8 million of net cash payments in 2007. For the fourth quarter of 2007, derivatives expense was $25.2 million, as compared to income of $8.1 million in the prior year quarter. Derivatives expense related to PVR Midstream was $24.6 million in the fourth quarter of 2007. Cash settlements of derivatives included in these amounts resulted in net cash payments of $5.9 million during the fourth quarter of 2007, as compared to $1.5 million of net cash receipts in the fourth quarter of 2006. Cash settlements of derivatives related to PVR Midstream were $8.8 million of net cash payments in the fourth quarter of 2007. See the natural gas midstream segment review in this release for a discussion of the impact of derivatives on PVR Midstream's gross processing margin.

Based on derivatives currently in place for natural gas production, we have hedged approximately 38 to 40 percent of natural gas production for 2008, based on the latest production guidance, at weighted average collar floors and ceilings of $7.85 and $9.65 per MMBtu. See the Guidance Table included in this release for details of production guidance and derivative positions.

Guidance for 2008

See the Guidance Table included in this release for guidance estimates for full-year 2008. 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.

Conference Call

A conference call and webcast, during which management will discuss 2007 full-year and fourth quarter financial and operational results for PVA, is scheduled for Thursday, February 14, 2008 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 telephonic replay of the call will be available until February 28, 2008 at 11:59 p.m. ET by dialing 1-877-660-6853 and using the following replay pass codes: account #286, conference ID #270353. 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 Cotton Valley play in east Texas, the Selma Chalk play in Mississippi, the Mid-Continent region, the Appalachian Basin 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 and natural resource properties and related assets and the operator of a midstream natural gas gathering and processing business. For more information, please visit PVA's website at www.pennvirginia.com.

Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the 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 and natural resource management 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 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 - unaudited

                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Production
     Natural gas (MMcf)           9,930     7,959    37,802    28,968
     Oil and condensate
      (MBbls)                       125        99       461       382
     Total oil, condensate and
      natural gas production
      (MMcfe)                    10,681     8,553    40,569    31,260
     Coal royalty tons
      (thousands)                 7,342     8,311    32,528    32,778
     Midstream system
      throughput volumes
      (MMcf)                     17,047    16,761    67,810    61,995

Prices and margin
     Natural gas ($ per Mcf)   $   6.87  $   6.60  $   6.94  $   7.35
     Oil and condensate ($ per
      Bbl)                     $  77.28  $  49.08  $  60.97  $  55.59
     Average gross coal
      royalty ($ per ton)      $   2.82  $   2.99  $   2.89  $   2.99
     Gross midstream
      processing margin (in
      thousands)               $ 30,786  $ 17,396  $ 89,881  $ 68,121

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

                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Revenues
     Natural gas               $ 68,208  $ 52,535  $262,169  $212,919
     Oil and condensate           9,674     4,859    28,117    21,237
     Natural gas midstream      123,079    97,375   433,174   402,715
     Coal royalties              20,685    24,875    94,140    98,163
     Other                        6,878     5,835    35,350    18,895
                               --------- --------- --------- ---------
        Total revenues          228,524   185,479   852,950   753,929
                               --------- --------- --------- ---------
Expenses
     Cost of midstream gas
      purchased                  92,293    79,979   343,293   334,594
     Operating                   20,053    13,968    67,610    47,406
     Exploration                  4,998     8,269    28,608    34,330
     Taxes other than income      5,728     3,550    21,723    14,767
     General and
      administrative             20,444    16,277    66,983    49,566
     Impairment of oil and gas
      properties                    181     8,517     2,586     8,517
     Depreciation, depletion
      and amortization           39,700    27,636   129,523    94,217
                               --------- --------- --------- ---------
        Total expenses          183,397   158,196   660,326   583,397
                               --------- --------- --------- ---------

Operating income                 45,127    27,283   192,624   170,532

Other income (expense)
     Interest expense           (11,541)   (7,540)  (37,419)  (24,832)
     Derivatives                (25,214)    8,094   (47,282)   19,497
     Other                        1,115     2,580     3,651     3,718
                               --------- --------- --------- ---------

Income before minority
 interest and income taxes        9,487    30,417   111,574   168,915

     Minority interest            2,660    11,831    30,319    43,018
     Income tax expense           1,468     7,883    30,501    49,988
                               --------- --------- --------- ---------

Net income                     $  5,359  $ 10,703  $ 50,754  $ 75,909
                               ========= ========= ========= =========

Per share data:

Net income per share, basic    $   0.14  $   0.29  $   1.33  $   2.03
                               ========= ========= ========= =========
Net income per share, diluted
 (a)                           $   0.14  $   0.28  $   1.32  $   2.01
                               ========= ========= ========= =========

Weighted average shares
 outstanding, basic              38,805    37,492    38,061    37,362
Weighted average shares
 outstanding, diluted            39,157    37,872    38,358    37,732

(a) - The diluted EPS numerator includes an adjustment for the
 dilutive effect of PVR's net income.
                      PENN VIRGINIA CORPORATION
               CONSOLIDATED BALANCE SHEETS - unaudited
                            (in thousands)

                          December    December
                              31,         31,
                             2007        2006
                          ----------  ----------

Assets
     Current assets      $  227,799  $  192,383
     Net property and
      equipment           1,899,014   1,358,383
     Other assets           110,375      82,383
                          ----------  ----------
          Total assets   $2,237,188  $1,633,149
                          ==========  ==========

Liabilities and
 Shareholders' Equity
     Current liabilities $  261,899  $  172,690
     Long-term debt         352,000     221,000
     Long-term debt of
      Penn Virginia
      Resource Partners,
      L.P.                  399,153     207,214
     Other liabilities
      and deferred taxes    234,876     211,448
     Minority interest -
      (a)                   179,162     438,372
     Shareholders' equity
      - (a)                 810,098     382,425
                          ----------  ----------
          Total
           liabilities
           and
           shareholders'
           equity        $2,237,188  $1,633,149
                          ==========  ==========


(a) - The decrease in minority interest and corresponding increase in
 shareholders' equity is primarily due to a gain recognized on the
 sale of PVR's common units in its 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         Year Ended
                               December 31,           December 31,
                          ----------------------  --------------------
                             2007        2006       2007       2006
                          ----------  ----------  ---------  ---------
Operating Activities
     Net income          $    5,359  $   10,703  $  50,754  $  75,909
     Adjustments to
      reconcile net
      income to net cash
      provided by
      operating
      activities:
     Depreciation,
      depletion and
      amortization           39,700      27,636    129,523     94,217
     Commodity derivative
      contracts:
         Total derivative
          losses (gains)     26,588      (7,493)    52,157    (17,535)
         Cash receipts
          (payments) to
          settle
          derivatives for
          period             (5,932)      1,486     (3,651)    (8,947)
     Deferred income
      taxes                      69       5,949     21,971     38,020
     Minority interest        2,660      11,831     30,319     43,018
     Gain on sale of
      properties               (117)          -    (12,553)         -
     Impairment of oil
      and gas properties        181       8,517      2,586      8,517
     Dry hole and
      unproved leasehold
      expense                 4,278       6,577     24,985     24,502
     Other                    2,180      (1,223)     5,098      4,260
                          ----------  ----------  ---------  ---------
     Operating cash flow
      (see attached table
      "Reconciliation of
      Certain Non-GAAP
      Financial
      Measures")             74,966      63,983    301,189    261,961
     Changes in operating
      assets and
      liabilities            29,093      14,775     11,851     13,858
                          ----------  ----------  ---------  ---------
         Net cash
          provided by
          operating
          activities        104,059      78,758    313,040    275,819
                          ----------  ----------  ---------  ---------

Investing Activities
     Proceeds from sale
      of property and
      equipment                  14          99     29,399      2,604
     Acquisitions           (61,429)    (23,687)  (300,447)  (195,166)
     Additions to
      property and
      equipment            (104,086)    (87,534)  (413,073)  (269,773)
     Other                      628           -        628          -
                          ----------  ----------  ---------  ---------
         Net cash used in
          investing
          activities       (164,873)   (111,122)  (683,493)  (462,335)
                          ----------  ----------  ---------  ---------

Financing Activities
     Dividends paid          (2,129)     (2,100)    (8,499)    (8,398)
     Distributions paid
      to minority
      interest holders      (13,337)    (10,483)   (49,739)   (38,627)
     Proceeds from
      issuance of
      partners' capital
      by PVG                      -     117,818        860    117,818
     Net proceeds from
      (repayments of) PVA
      borrowings            (62,500)     41,000    131,000    142,000
     Proceeds from sale
      of stock warrants      18,187           -     18,187          -
     Cash paid for
      convertible notes
      hedges                (36,817)          -    (36,817)         -
     Net proceeds from
      (repayments of) PVR
      borrowings             47,500    (108,600)   193,500    (37,100)
     Proceeds from PVA
      stock offering, net
      of expenses           135,441           -    135,441          -
     Debt issuance costs     (8,141)          -     (8,141)         -
     Other                    2,334       2,681      8,850      5,248
                          ----------  ----------  ---------  ---------
         Net cash
          provided by
          financing
          activities         80,538      40,316    384,641    180,941
                          ----------  ----------  ---------  ---------

Net increase (decrease)
 in cash and cash
 equivalents                 19,724       7,952     14,189     (5,575)
Cash and cash
 equivalents-beginning
 balance                     14,803      12,386     20,338     25,913
                          ----------  ----------  ---------  ---------
Cash and cash
 equivalents-ending
 balance                 $   34,527  $   20,338  $  34,527  $  20,338
                          ==========  ==========  =========  =========
                      PENN VIRGINIA CORPORATION
              QUARTERLY SEGMENT INFORMATION - unaudited
              (dollars in thousands except where noted)


                                                            Coal and
                                                             Natural
                                                            Resource
                                            Oil and Gas     Management
                                          ---------------- -----------
                                                    (per
                                                     Mcfe)
                                           Amount      *
                                          --------- ------
Three Months Ended December 31, 2007

Production
Total oil, condensate and gas (MMcfe)       10,681
Natural gas (MMcf)                           9,930
Crude oil and condensate (MBbls)               125
Coal royalty tons (thousands of tons)                            7,342
Midstream system throughput volumes
 (MMcf)

Revenues
     Natural gas                          $ 68,208  $ 6.87 $         -
     Oil and condensate                      9,674   77.28           -
     Natural gas midstream                       -       -           -
     Coal royalties                              -       -      20,685
     Gain (loss) on the sale of
      properties                                (3)      -           8
     Other                                    (149)      -       5,636
                                          --------- ------ -----------
        Total revenues                      77,730    7.28      26,329
                                          --------- ------ -----------
Expenses
     Cost of midstream gas purchased             -       -           -
     Operating expense                      15,523    1.45       1,403
     Exploration                             4,998    0.47           -
     Taxes other than income                 4,598    0.43         278
     General and administrative              5,255    0.49       2,968
     Impairment of oil and gas properties      181    0.02           -
     Depreciation, depletion and
      amortization                          28,368    2.66       6,047
                                          --------- ------ -----------
       Total expenses                       58,923    5.52      10,696
                                          --------- ------ -----------

Operating income (loss)                   $ 18,807  $ 1.76 $    15,633
                                          --------- ------ -----------


Additions to property and equipment and
 acquisitions                             $144,927         $        45




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

Three Months Ended December 31, 2007

Production
Total oil, condensate and gas (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of tons)
Midstream system throughput volumes
 (MMcf)                                   17,047

Revenues
     Natural gas                      $        - $     -  $    68,208
     Oil and condensate                        -       -        9,674
     Natural gas midstream               123,079       -      123,079
     Coal royalties                            -       -       20,685
     Gain (loss) on the sale of
      properties                               -     (25)         (20)
     Other                                 1,489     (78)       6,898
                                      ---------- -------- ------------
        Total revenues                   124,568    (103)     228,524
                                      ---------- -------- ------------
Expenses
     Cost of midstream gas purchased      92,293       -       92,293
     Operating expense                     3,326    (199)      20,053
     Exploration                               -       -        4,998
     Taxes other than income                 646     206        5,728
     General and administrative            2,839   9,382       20,444
     Impairment of oil and gas
      properties                               -       -          181
     Depreciation, depletion and
      amortization                         4,865     420       39,700
                                      ---------- -------- ------------
       Total expenses                    103,969   9,809      183,397
                                      ---------- -------- ------------

Operating income (loss)               $   20,599 $(9,912) $    45,127
                                      ---------- -------- ------------


Additions to property and equipment
 and acquisitions                     $   18,461 $ 2,082  $   165,515



                                                            Coal and
                                                             Natural
                                                            Resource
                                             Oil and Gas    Management
                                           --------------- -----------
                                                    (per
                                                     Mcfe)
                                            Amount     *
                                           -------- ------
Three Months Ended December 31, 2006

Production
Total oil, condensate and gas (MMcfe)        8,553
Natural gas (MMcf)                           7,959
Crude oil and condensate (MBbls)                99
Coal royalty tons (thousands of tons)                            8,311
Midstream system throughput volumes (MMcf)

Revenues
     Natural gas                           $52,535  $ 6.60 $         -
     Oil and condensate                      4,859   49.08           -
     Natural gas midstream                       -       -           -
     Coal royalties                              -       -      24,875
     Gain on the sale of properties            (75)      -           -
     Other                                     354       -       4,991
                                           -------- ------ -----------
        Total revenues                      57,673    6.74      29,866
                                           -------- ------ -----------
Expenses
     Cost of midstream gas purchased             -       -           -
     Operating expense                       7,913    0.93       3,039
     Exploration                             8,269    0.97           -
     Taxes other than income                 2,648    0.31         369
     General and administrative              4,177    0.49       2,808
     Impairment of oil and gas properties    8,517    1.00           -
     Depreciation, depletion and
      amortization                          17,482    2.04       5,349
                                           -------- ------ -----------
       Total expenses                       49,006    5.73      11,565
                                           -------- ------ -----------

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


Additions to property and equipment and
 acquisitions (1)                          $88,535         $    11,795

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

Three Months Ended December 31, 2006

Production
Total oil, condensate and gas (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of tons)
Midstream system throughput volumes
 (MMcf)                                   16,761

Revenues
     Natural gas                      $        - $     -  $    52,535
     Oil and condensate                        -       -        4,859
     Natural gas midstream                97,375       -       97,375
     Coal royalties                                    -       24,875
     Gain on the sale of properties            -       -          (75)
     Other                                   529      36        5,910
                                      ---------- -------- ------------
        Total revenues                    97,904      36      185,479
                                      ---------- -------- ------------
Expenses
     Cost of midstream gas purchased      79,979       -       79,979
     Operating expense                     3,014       2       13,968
     Exploration                               -       -        8,269
     Taxes other than income                 366     167        3,550
     General and administrative            2,816   6,476       16,277
     Impairment of oil and gas
      properties                               -       -        8,517
     Depreciation, depletion and
      amortization                         4,643     162       27,636
                                      ---------- -------- ------------
       Total expenses                     90,818   6,807      158,196
                                      ---------- -------- ------------

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


Additions to property and equipment
 and acquisitions (1)                 $    9,438 $ 1,453  $   111,221
* Natural gas revenues are shown per Mcf, oil and gas condensate
 revenues are shown per Bbl, and all other amounts are shown per Mcfe.

(1) 2006 Coal and natural resource management segment excludes noncash
 capital expenditures of $0.3 million and acquisitions of assets other
 than property or equipment of $1.2 million.
                      PENN VIRGINIA CORPORATION
                   YEAR-TO-DATE SEGMENT INFORMATION
              (dollars in thousands except where noted)


                                                            Coal and
                                                             Natural
                                                            Resource
                                            Oil and Gas     Management
                                          ---------------- -----------
                                                    (per
                                                     Mcfe)
                                           Amount      *
                                          --------- ------
Year Ended December 31, 2007

Production
Total oil, condensate and gas (MMcfe)       40,569
Natural gas (MMcf)                          37,802
Crude oil and condensate (MBbls)               461
Coal royalty tons (thousands of tons)                           32,528
Midstream system throughput volumes
 (MMcf)

Revenues
     Natural gas                          $262,169  $ 6.94 $         -
     Oil and condensate                     28,117   60.97           -
     Natural gas midstream                       -       -           -
     Coal royalties                              -       -      94,140
     Gain (loss) on the sale of
      properties                            12,235       -         206
     Other                                     720       -      17,293
                                          --------- ------ -----------
        Total revenues                     303,241    7.47     111,639
                                          --------- ------ -----------
Expenses
     Cost of midstream gas purchased             -       -           -
     Operating expense                      46,713    1.15       8,071
     Exploration                            28,608    0.71           -
     Taxes other than income                17,847    0.44       1,110
     General and administrative             16,281    0.40      10,957
     Impairment of oil and gas properties    2,586    0.06           -
     Depreciation, depletion and
      amortization                          86,996    2.14      22,690
                                          --------- ------ -----------
       Total expenses                      199,031    4.91      42,828
                                          --------- ------ -----------

Operating income (loss)                   $104,210  $ 2.57 $    68,811
                                          --------- ------ -----------


Additions to property and equipment and
 acquisitions                             $512,485         $   146,960




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

Year Ended December 31, 2007

Production
Total oil, condensate and gas
 (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput volumes
 (MMcf)                                  67,810

Revenues
     Natural gas                     $        - $      -  $   262,169
     Oil and condensate                       -        -       28,117
     Natural gas midstream              433,174        -      433,174
     Coal royalties                           -        -       94,140
     Gain (loss) on the sale of
      properties                              -      (25)      12,416
     Other                                4,632      289       22,934
                                     ---------- --------- ------------
        Total revenues                  437,806      264      852,950
                                     ---------- --------- ------------
Expenses
     Cost of midstream gas purchased    343,293        -      343,293
     Operating expense                   12,893      (67)      67,610
     Exploration                              -        -       28,608
     Taxes other than income              1,926      840       21,723
     General and administrative          11,958   27,787       66,983
     Impairment of oil and gas
      properties                              -        -        2,586
     Depreciation, depletion and
      amortization                       18,822    1,015      129,523
                                     ---------- --------- ------------
       Total expenses                   388,892   29,575      660,326
                                     ---------- --------- ------------

Operating income (loss)              $   48,914 $(29,311) $   192,624
                                     ---------- --------- ------------


Additions to property and equipment
 and acquisitions                    $   47,080 $  6,995  $   713,520



                                                            Coal and
                                                             Natural
                                                            Resource
                                            Oil and Gas     Management
                                          ---------------- -----------
                                                    (per
                                                     Mcfe)
                                           Amount      *
                                          --------- ------
Year Ended December 31, 2006

Production
Total oil, condensate and gas (MMcfe)       31,260
Natural gas (MMcf)                          28,968
Crude oil and condensate (MBbls)               382
Coal royalty tons (thousands of tons)                           32,778
Midstream system throughput volumes
 (MMcf)

Revenues
     Natural gas                          $212,919  $ 7.35 $         -
     Oil and condensate                     21,237   55.59           -
     Natural gas midstream                       -       -           -
     Coal royalties                              -       -      98,163
     Gain on the sale of properties           (233)      -           6
     Other                                   2,033       -      14,812
                                          --------- ------ -----------
        Total revenues                     235,956    7.55     112,981
                                          --------- ------ -----------
Expenses
     Cost of midstream gas purchased             -       -           -
     Operating expense                      27,403    0.88       8,600
     Exploration                            34,330    1.10           -
     Taxes other than income                11,810    0.38         934
     General and administrative             12,826    0.41       9,604
     Impairment of oil and gas properties    8,517    0.27           -
     Depreciation, depletion and
      amortization                          56,237    1.80      20,399
                                          --------- ------ -----------
       Total expenses                      151,123    4.83      39,537
                                          --------- ------ -----------

Operating income (loss)                   $ 84,833  $ 2.71 $    73,444
                                          --------- ------ -----------


Additions to property and equipment and
 acquisitions (1)                         $331,551         $    92,697

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

Year Ended December 31, 2006

Production
Total oil, condensate and gas
 (MMcfe)
Natural gas (MMcf)
Crude oil and condensate (MBbls)
Coal royalty tons (thousands of
 tons)                                   25,186
Midstream system throughput volumes
 (MMcf)

Revenues
     Natural gas                     $        - $      -  $   212,919
     Oil and condensate                       -        -       21,237
     Natural gas midstream              402,715        -      402,715
     Coal royalties                           -        -       98,163
     Gain on the sale of properties           -       (9)        (236)
     Other                                2,195       91       19,131
                                     ---------- --------- ------------
        Total revenues                  404,910       82      753,929
                                     ---------- --------- ------------
Expenses
     Cost of midstream gas purchased    334,594        -      334,594
     Operating expense                   11,403        -       47,406
     Exploration                              -        -       34,330
     Taxes other than income              1,420      603       14,767
     General and administrative          11,023   16,113       49,566
     Impairment of oil and gas
      properties                              -        -        8,517
     Depreciation, depletion and
      amortization                       17,094      487       94,217
                                     ---------- --------- ------------
       Total expenses                   375,534   17,203      583,397
                                     ---------- --------- ------------

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


Additions to property and equipment
 and acquisitions (1)                $   37,015 $  3,676  $   464,939
* Natural gas revenues are shown per Mcf, oil and gas condensate
 revenues are shown per Bbl, and all other amounts are shown per Mcfe.

(1) 2006 Oil and gas segment excludes noncash expenditures of $32.8
 million.
                      PENN VIRGINIA CORPORATION
  RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES - unaudited
                (in thousands, except per share data)


                               Three Months Ended      Year Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 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                    $104,059  $ 78,758  $313,040  $275,819
Adjustments:
Changes in operating assets
 and liabilities                (29,093)  (14,775)  (11,851)  (13,858)
                               --------- --------- --------- ---------

Operating cash flow (Note 1)   $ 74,966  $ 63,983  $301,189  $261,961
                               ========= ========= ========= =========

Reconciliation of GAAP "Net
 income" to Non-GAAP "Net
 income as adjusted"
------------------------------
Net income as reported         $  5,359  $ 10,703  $ 50,754  $ 75,909
Adjustments for derivatives:
Derivative losses included in
 operating income                 1,374       601     4,875     1,962
Derivative losses (gains)
 included in other income        25,214    (8,094)   47,282   (19,497)
  Cash receipts (payments) to
   settle derivatives for
   period                        (5,932)    1,486    (3,651)   (8,947)
Impact of adjustments on
 minority interest (Note 2)      (9,190)     (185)  (17,991)    1,262
Impact of adjustments on
 income tax expense              (4,014)    2,553   (11,443)   10,012
                               --------- --------- --------- ---------

Net income as adjusted (Note
 3)                            $ 12,811  $  7,065  $ 69,826  $ 60,702
                               ========= ========= ========= =========

Net income as adjusted per
 share, diluted                $   0.33  $   0.19  $   1.82  $   1.61
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 - Minority interest for the quarter ended December 31, 2007 has
 been adjusted for the effect of incentive distribution rights and
 reflects the minority interest percentage of net income recognized
 for the year ended December 31, 2007.

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 December 31,
                                              2007 - (unaudited)
                                       -------------------------------
                                          As                    As
                                        Reported Adjustments  Adjusted
                                       --------- ----------- ---------
Revenues
     Natural gas                       $ 68,208  $        -  $ 68,208
     Oil and condensate                   9,674           -     9,674
     Natural gas midstream              123,079    (123,079)        -
     Coal royalties                      20,685     (20,685)        -
     Gain on the sale of properties           -           -         -
     Other                                6,878      (7,133)     (255)
                                       --------- ----------- ---------
        Total revenues                  228,524    (150,897)   77,627
                                       --------- ----------- ---------
Expenses
     Cost of midstream gas purchased     92,293     (92,293)        -
     Operating                           20,053      (4,729)   15,324
     Exploration                          4,998           -     4,998
     Taxes other than income              5,728        (924)    4,804
     General and administrative          20,444      (6,707)   13,737
     Impairment of oil and gas
      properties                            181           -       181
     Depreciation, depletion and
      amortization                       39,700     (10,912)   28,788
                                       --------- ----------- ---------
        Total expenses                  183,397    (115,565)   67,832
                                       --------- ----------- ---------

Operating income                         45,127     (35,332)    9,795

Other income (expense)
     Interest expense                   (11,541)      5,496    (6,045)
     Derivatives                        (25,214)     24,641      (573)
     Equity earnings in PVG and PVR           -       3,529     3,529
     Interest income and other            1,115        (994)      121
                                       --------- ----------- ---------

Income before minority interest and
 income taxes                             9,487      (2,660)    6,827

     Minority interest                    2,660      (2,660)        -
     Income tax expense                   1,468           -     1,468
                                       --------- ----------- ---------

Net income                             $  5,359  $        -  $  5,359
                                       ========= =========== =========



                                       Three Months Ended December 31,
                                              2006 - (unaudited)
                                       -------------------------------
                                          As                    As
                                        Reported Adjustments  Adjusted
                                       --------- ----------- ---------
Revenues
     Natural gas                       $ 52,535  $        -  $ 52,535
     Oil and condensate                   4,859           -     4,859
     Natural gas midstream               97,375     (97,375)        -
     Coal royalties                      24,875     (24,875)        -
     Gain on the sale of properties           -           -         -
     Other                                5,835      (5,520)      315
                                       --------- ----------- ---------
        Total revenues                  185,479    (127,770)   57,709
                                       --------- ----------- ---------
Expenses
     Cost of midstream gas purchased     79,979     (79,979)        -
     Operating                           13,968      (6,053)    7,915
     Exploration                          8,269           -     8,269
     Taxes other than income              3,550        (735)    2,815
     General and administrative          16,277      (6,021)   10,256
     Impairment of oil and gas
      properties                          8,517           -     8,517
     Depreciation, depletion and
      amortization                       27,636      (9,992)   17,644
                                       --------- ----------- ---------
        Total expenses                  158,196    (102,780)   55,416
                                       --------- ----------- ---------

Operating income                         27,283     (24,990)    2,293

Other income (expense)
     Interest expense                    (7,540)      5,062    (2,478)
     Derivatives                          8,094        (416)    7,678
     Equity earnings in PVG and PVR           -       9,970     9,970
     Interest income and other            2,580      (1,457)    1,123
                                       --------- ----------- ---------

Income before minority interest and
 income taxes                            30,417     (11,831)   18,586

     Minority interest                   11,831     (11,831)        -
     Income tax expense                   7,883           -     7,883
                                       --------- ----------- ---------

Net income                             $ 10,703  $        -  $ 10,703
                                       ========= =========== =========


                                       Year Ended December 31, 2007
                                     ---------------------------------
                                        As
                                      Reported Adjustments As Adjusted
                                     --------- ----------- -----------
Revenues                                       (unaudited) (unaudited)
     Natural gas                     $262,169  $        -  $  262,169
     Oil and condensate                28,117           -      28,117
     Natural gas midstream            433,174    (433,174)          -
     Coal royalties                    94,140     (94,140)          -
     Gain on the sale of properties         -           -           -
     Other                             35,350     (22,131)     13,219
                                     --------- ----------- -----------
        Total revenues                852,950    (549,445)    303,505
                                     --------- ----------- -----------
Expenses
     Cost of midstream gas purchased  343,293    (343,293)          -
     Operating                         67,610     (20,964)     46,646
     Exploration                       28,608           -      28,608
     Taxes other than income           21,723      (3,040)     18,683
     General and administrative        66,983     (25,393)     41,590
     Impairment of oil and gas
      properties                        2,586           -       2,586
     Depreciation, depletion and
      amortization                    129,523     (41,512)     88,011
                                     --------- ----------- -----------
        Total expenses                660,326    (434,202)    226,124
                                     --------- ----------- -----------

Operating income                      192,624    (115,243)     77,381

Other income (expense)
     Interest expense                 (37,419)     17,338     (20,081)
     Derivatives                      (47,282)     45,568      (1,714)
     Equity earnings in PVG and PVR         -      24,257      24,257
     Interest income and other          3,651      (2,239)      1,412
                                     --------- ----------- -----------

Income before minority interest and
 income taxes                         111,574     (30,319)     81,255

     Minority interest                 30,319     (30,319)          -
     Income tax expense                30,501           -      30,501
                                     --------- ----------- -----------

Net income                           $ 50,754  $        -  $   50,754
                                     ========= =========== ===========

                                       Year Ended December 31, 2006
                                     ---------------------------------
                                        As
                                      Reported Adjustments As Adjusted
                                     --------- ----------- -----------
Revenues                                       (unaudited) (unaudited)
     Natural gas                     $212,919  $        -  $  212,919
     Oil and condensate                21,237           -      21,237
     Natural gas midstream            402,715    (402,715)          -
     Coal royalties                    98,163     (98,163)          -
     Gain on the sale of properties         -           -           -
     Other                             18,895     (17,013)      1,882
                                     --------- ----------- -----------
        Total revenues                753,929    (517,891)    236,038
                                     --------- ----------- -----------
Expenses
     Cost of midstream gas purchased  334,594    (334,594)          -
     Operating                         47,406     (20,003)     27,403
     Exploration                       34,330           -      34,330
     Taxes other than income           14,767      (2,354)     12,413
     General and administrative        49,566     (21,024)     28,542
     Impairment of oil and gas
      properties                        8,517           -       8,517
     Depreciation, depletion and
      amortization                     94,217     (37,493)     56,724
                                     --------- ----------- -----------
        Total expenses                583,397    (415,468)    167,929
                                     --------- ----------- -----------

Operating income                      170,532    (102,423)     68,109

Other income (expense)
     Interest expense                 (24,832)     18,821      (6,011)
     Derivatives                       19,497      11,260      30,757
     Equity earnings in PVG and PVR         -      31,683      31,683
     Interest income and other          3,718      (2,359)      1,359
                                     --------- ----------- -----------

Income before minority interest and
 income taxes                         168,915     (43,018)    125,897

     Minority interest                 43,018     (43,018)          -
     Income tax expense                49,988           -      49,988
                                     --------- ----------- -----------

Net income                           $ 75,909  $        -  $   75,909
                                     ========= =========== ===========
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. PVA
 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) - unaudited
                            (in thousands)


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


                                            December 31, 2007
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Assets                                         (unaudited) (unaudited)
  Current assets                   $  227,799  $ (114,707) $  113,092
  Net property and equipment        1,899,014    (731,282)  1,167,732
  Equity investment in PVG and PVR          -     199,675     199,675
  Other assets                        110,375     (96,262)     14,113
                                   ----------- ----------- -----------
    Total assets                   $2,237,188  $ (742,576) $1,494,612
                                   =========== =========== ===========

Liabilities and Shareholders'
 Equity
  Current liabilities              $  261,899  $ (136,540) $  126,728
  Long-term debt                      352,000           -     352,000
  Long-term debt of Penn Virginia
   Resource Partners, L.P.            399,153    (399,153)          -
  Other liabilities and deferred
   taxes                              234,876     (27,721)    205,786
  Minority interest                   179,162    (179,162)          -
  Shareholders' equity                810,098           -     810,098
                                   ----------- ----------- -----------
    Total liabilities and
     shareholders' equity          $2,237,188  $ (742,576) $1,494,612
                                   =========== =========== ===========


                                            December 31, 2006
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Assets                                         (unaudited) (unaudited)
  Current assets                   $  192,383  $  (83,710) $  108,673
  Net property and equipment        1,358,383    (556,513)    801,870
  Equity investment in PVG and PVR          -     (35,914)    (35,914)
  Other assets                         82,383     (76,046)      6,337
                                   ----------- ----------- -----------
    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 December 31,
                                             2007 (unaudited)
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Operating Activities
  Net income                       $    5,359  $        -  $    5,359
  Adjustments to reconcile net
   income to net cash provided by
   operating activities:
  Depreciation, depletion and
   amortization                        39,700     (10,912)     28,788
  Commodity derivative contracts:
    Total derivative losses
     (gains)                           26,588     (25,804)        784
    Cash receipts (payments) to
     settle derivatives for period     (5,932)      8,816       2,884
  Minority interest                     2,660      (2,660)          -
  Investment in PVG and PVR                 -      (3,529)     (3,529)
  Gain on sale of properties             (117)          -        (117)
  Impairment of oil and gas
   properties                             181           -         181
  Cash distributions from PVG and
   PVR                                      -       9,789       9,789
  Other                                 6,527        (385)      6,142
                                   ----------- ----------- -----------
  Operating cash flow                  74,966     (24,685)     50,281
  Changes in operating assets and
   liabilities                         29,093      (6,798)     22,295
                                   ----------- ----------- -----------
    Net cash provided by operating
     activities                       104,059     (31,483)     72,576
                                   ----------- ----------- -----------

Investing Activities
  Other                                   642        (661)        (19)
  Acquisitions                        (61,429)     31,038     (30,391)
  Additions to property and
   equipment                         (104,086)     18,468     (85,618)
                                   ----------- ----------- -----------
    Net cash used in investing
     activities                      (164,873)     48,845    (116,028)
                                   ----------- ----------- -----------

Financing Activities
  Dividends paid                       (2,129)          -      (2,129)
  Distributions paid to minority
   interest holders                   (13,337)     13,337           -
  Proceeds from issuance of
   partners' capital by PVG                 -           -           -
  Net proceeds from (repayments
   of) PVA borrowings                 (62,500)          -     (62,500)
  Net proceeds from (repayments
   of) PVR borrowings                  47,500     (47,500)          -
  Proceeds from PVA stock offering    135,441           -     135,441
  Proceeds from sale of stock
   warrants                            18,187           -      18,187
  Cash paid for convertible notes
   hedges                             (36,817)          -     (36,817)
  Debt issuance costs                  (8,141)        263      (7,878)
  Other                                 2,334           -       2,334
                                   ----------- ----------- -----------
    Net cash provided by financing
     activities                        80,538     (33,900)     46,638
                                   ----------- ----------- -----------

Net increase (decrease) in cash
 and cash equivalents                  19,724     (16,538)      3,186
Cash and cash equivalents-
 beginning balance                     14,803     (13,965)        838
                                   ----------- ----------- -----------
Cash and cash equivalents-ending
 balance                           $   34,527  $  (30,503) $    4,024
                                   =========== =========== ===========



                                    Three Months Ended December 31,
                                             2006 (unaudited)
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Operating Activities
  Net income                       $   10,703  $        -  $   10,703
  Adjustments to reconcile net
   income to net cash provided by
   operating activities:
  Depreciation, depletion and
   amortization                        27,636      (9,992)     17,644
  Commodity derivative contracts:
    Total derivative losses
     (gains)                           (7,493)       (262)     (7,755)
    Cash receipts (payments) to
     settle derivatives for period      1,486       4,034       5,520
  Minority interest                    11,831     (11,831)          -
  Investment in PVG and PVR                 -      (9,970)     (9,970)
  Gain on sale of properties                -           -           -
  Impairment of oil and gas
   properties                           8,517           -       8,517
  Cash distributions from PVG and
   PVR                                      -       5,895       5,895
  Other                                11,303       1,000      12,303
                                   ----------- ----------- -----------
  Operating cash flow                  63,983     (21,126)     42,857
  Changes in operating assets and
   liabilities                         14,775      (3,186)     11,589
                                   ----------- ----------- -----------
    Net cash provided by operating
     activities                        78,758     (24,312)     54,446
                                   ----------- ----------- -----------

Investing Activities
  Other                                    99          (3)         96
  Acquisitions                        (23,687)      9,673     (14,014)
  Additions to property and
   equipment                          (87,534)     11,560     (75,974)
                                   ----------- ----------- -----------
    Net cash used in investing
     activities                      (111,122)     21,230     (89,892)
                                   ----------- ----------- -----------

Financing Activities
  Dividends paid                       (2,100)          -      (2,100)
  Distributions paid to minority
   interest holders                   (10,483)     10,483           -
  Proceeds from issuance of
   partners' capital by PVG           117,818    (117,818)          -
  Net proceeds from (repayments
   of) PVA borrowings                  41,000           -      41,000
  Net proceeds from (repayments
   of) PVR borrowings                (108,600)    108,600           -
  Proceeds from PVA stock offering          -           -           -
  Proceeds from sale of stock
   warrants                                 -           -           -
  Cash paid for convertible notes
   hedges                                   -           -           -
  Debt issuance costs                       -           -           -
  Other                                 2,681         375       3,056
                                   ----------- ----------- -----------
    Net cash provided by financing
     activities                        40,316       1,640      41,956
                                   ----------- ----------- -----------

Net increase (decrease) in cash
 and cash equivalents                   7,952      (1,442)      6,510
Cash and cash equivalents-
 beginning balance                     12,386     (12,245)        141
                                   ----------- ----------- -----------
Cash and cash equivalents-ending
 balance                           $   20,338  $  (13,687) $    6,651
                                   =========== =========== ===========



                                      Year Ended December 31, 2007
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Operating Activities                           (unaudited) (unaudited)
  Net income                       $   50,754  $        -  $   50,754
  Adjustments to reconcile net
   income to net cash provided by
   operating activities:
  Depreciation, depletion and
   amortization                       129,523     (41,512)     88,011
  Commodity derivative contracts:
    Total derivative losses
     (gains)                           52,157     (50,163)      1,994
    Cash receipts (payments) to
     settle derivatives for period     (3,651)     17,779      14,128
  Minority interest                    30,319     (30,319)          -
  Investment in PVG and PVR                 -     (24,257)    (24,257)
  Gain on sale of properties          (12,553)          -     (12,553)
  Impairment of oil and gas
   properties                           2,586           -       2,586
  Cash distributions from PVG and
   PVR                                      -      29,839      29,839
  Other                                52,054         452      52,506
                                   ----------- ----------- -----------
  Operating cash flow                 301,189     (98,181)    203,009
  Changes in operating assets and
   liabilities                         11,851       1,540      13,391
                                   ----------- ----------- -----------
    Net cash provided by operating
     activities                       313,040     (96,641)    216,400
                                   ----------- ----------- -----------

Investing Activities
  Other                                30,027        (858)     29,169
  Acquisitions                       (300,447)    176,917    (123,530)
  Additions to property and
   equipment                         (413,073)     48,123    (364,950)
                                   ----------- ----------- -----------
    Net cash used in investing
     activities                      (683,493)    224,182    (459,311)
                                   ----------- ----------- -----------

Financing Activities
  Dividends paid                       (8,499)          -      (8,499)
  Distributions paid to minority
   interest holders                   (49,739)     49,739           -
  Proceeds from issuance of
   partners' capital by PVG               860        (860)          -
  Net proceeds from PVA borrowings    131,000           -     131,000
  Net proceeds from (repayments
   of) PVR borrowings                 193,500    (193,500)          -
  Proceeds from PVA stock offering    135,441           -     135,441
  Proceeds from sale of stock
   warrants                            18,187           -      18,187
  Cash paid for convertible notes
   hedges                             (36,817)          -     (36,817)
  Debt issuance costs                  (8,141)        263      (7,878)
  Other                                 8,850           -       8,850
                                   ----------- ----------- -----------
    Net cash provided by financing
     activities                       384,641    (144,358)    240,284
                                   ----------- ----------- -----------

Net increase (decrease) in cash
 and cash equivalents                  14,189     (16,816)     (2,627)
Cash and cash equivalents-
 beginning balance                     20,338     (13,687)      6,651
                                   ----------- ----------- -----------
Cash and cash equivalents-ending
 balance                           $   34,527  $  (30,503) $    4,024
                                   =========== =========== ===========


                                      Year Ended December 31, 2006
                                   -----------------------------------
                                   As Reported Adjustments As Adjusted
                                   ----------- ----------- -----------
Operating Activities                           (unaudited) (unaudited)
  Net income                       $   75,909  $        -  $   75,909
  Adjustments to reconcile net
   income to net cash provided by
   operating activities:
  Depreciation, depletion and
   amortization                        94,217     (37,493)     56,724
  Commodity derivative contracts:
    Total derivative losses
     (gains)                          (17,535)    (13,213)    (30,748)
    Cash receipts (payments) to
     settle derivatives for period     (8,947)     19,439      10,492
  Minority interest                    43,018     (43,018)          -
  Investment in PVG and PVR                 -     (31,683)    (31,683)
  Gain on sale of properties                -           -           -
  Impairment of oil and gas
   properties                           8,517           -       8,517
  Cash distributions from PVG and
   PVR                                      -      22,186      22,186
  Other                                66,782      (2,332)     64,450
                                   ----------- ----------- -----------
  Operating cash flow                 261,961     (86,114)    175,847
  Changes in operating assets and
   liabilities                         13,858       7,617      21,475
                                   ----------- ----------- -----------
    Net cash provided by operating
     activities                       275,819     (78,497)    197,322
                                   ----------- ----------- -----------

Investing Activities
  Other                                 2,604         (36)      2,568
  Acquisitions                       (195,166)     91,259    (103,907)
  Additions to property and
   equipment                         (269,773)     38,453    (231,320)
                                   ----------- ----------- -----------
    Net cash used in investing
     activities                      (462,335)    129,676    (332,659)
                                   ----------- ----------- -----------

Financing Activities
  Dividends paid                       (8,398)          -      (8,398)
  Distributions paid to minority
   interest holders                   (38,627)     38,627           -
  Proceeds from issuance of
   partners' capital by PVG           117,818    (117,818)          -
  Net proceeds from PVA borrowings    142,000           -     142,000
  Net proceeds from (repayments
   of) PVR borrowings                 (37,100)     37,100           -
  Proceeds from PVA stock offering          -           -           -
  Proceeds from sale of stock
   warrants                                 -           -           -
  Cash paid for convertible notes
   hedges                                   -           -           -
  Debt issuance costs                       -           -           -
  Other                                 5,248         375       5,623
                                   ----------- ----------- -----------
    Net cash provided by financing
     activities                       180,941     (41,716)    139,225
                                   ----------- ----------- -----------

Net increase (decrease) in cash
 and cash equivalents                  (5,575)      9,463       3,888
Cash and cash equivalents-
 beginning balance                     25,913     (23,150)      2,763
                                   ----------- ----------- -----------
Cash and cash equivalents-ending
 balance                           $   20,338  $  (13,687) $    6,651
                                   =========== =========== ===========
Note 2 - Equity method balance sheets represent consolidated balance
 sheets, minus 100% of PVG's consolidated balance sheets, 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. PVA believes equity method
 balance sheets provide useful information to allow the public to more
 easily discern PVG's effect on the 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. PVA believes equity method statements of cash flows
 provide useful information to allow the public to more easily discern
 PVG's effect on the PVA's cash flows.
                      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 2008.


                                           Actual
                       ----------------------------------------------
                        First    Second     Third    Fourth
                        Quarter   Quarter   Quarter   Quarter   YTD
                         2007      2007      2007      2007    2007
                       --------- --------- --------- --------- ------
Oil & Gas Segment:
---------------------
 Production:
  Natural gas (Bcf) -
   See Note a               8.1       9.4      10.4       9.9   37.8
  Crude oil and
   condensate
   (MBbl's)                 107       113       116       125    461
   Equivalent
    production (Bcfe)       8.7      10.1      11.1      10.7   40.6
   Equivalent daily
    production
    (MMcfed)               97.0     110.7     120.7     116.1  111.2

 Expenses:
  Cash operating
   expenses ($ per
   Mcfe)              $    1.90      1.81      1.87      2.38   1.99
  Exploration         $     5.0       5.7      12.9       5.0   28.6
  Impairment of oil
   and gas properties $       -         -       2.4       0.2    2.6
  Depreciation,
   depletion and
   amortization ($
   per Mcfe)          $    2.04      1.85      2.00      2.66   2.14

 Capital
  Expenditures:
  Development
   drilling           $    69.4      77.9      83.1      80.0  310.4
  Exploratory
   drilling           $    19.2       8.5       7.0       7.8   42.5
  Pipeline,
   gathering,
   facilities         $     4.9       5.3       4.4       8.1   22.7
  Seismic             $     0.9       0.7       0.6       0.6    2.8
  Lease acquisition,
   field projects and
   other              $     0.8      12.1      17.8      23.1   53.8
  Proved property
   acquisitions       $     1.4       7.1      54.3      25.4   88.2
   Total segment
    capital
    expenditures      $    96.6     111.6     167.2     145.0  520.4

Coal and Natural
 Resource Segment
 (PVR):
---------------------
 Coal royalty tons
  (millions)                8.3       8.1       8.8       7.3   32.5

 Revenues:
  Average royalty per
   ton                $    3.02      2.98      2.76      2.82   2.89
  Other               $     3.5       4.4       4.0       5.6   17.5

 Expenses:
  Cash operating
   expenses           $     5.1       5.5       4.9       4.6   20.1
  Depreciation,
   depletion and
   amortization       $     5.6       5.3       5.8       6.0   22.7

 Capital
  Expenditures:
  Expansion and
   acquisitions       $     0.4      52.1      93.4      31.0  176.9
  Maintenance capital
   expenditures       $     0.1         -         -         -    0.1
   Total segment
    capital
    expenditures      $     0.5      52.1      93.4      31.0  177.0

Natural Gas Midstream
 Segment (PVR):
---------------------
 Throughput volumes
  (MMcf per day) -
  see Note c                177       187       194       185    186

 Expenses:
  Cash operating
   expenses           $     6.9       6.3       6.7       6.8   26.8
  Depreciation,
   depletion and
   amortization       $     4.6       4.5       4.8       4.9   18.8

 Capital
  Expenditures:
  Expansion and
   acquisitions       $     5.7       6.9       9.1      17.0   38.7
  Maintenance capital
   expenditures       $     1.9       2.7       2.8       2.4    9.8
   Total segment
    capital
    expenditures      $     7.6       9.6      11.9      19.4   48.5

Corporate and Other:
---------------------
 General and
  administrative
  expense - PVA - see
  Note d              $     5.2       5.2       6.4       8.5   25.3
 General and
  administrative
  expense - PVG - see
  Note d              $     0.8       0.5       0.2       0.9    2.5
 Interest expense:
  PVA average long-
   term debt
   outstanding        $   242.0     306.5     384.3     418.9  337.7
  PVA interest rate         6.5%      6.6%      7.3%      6.7%   6.7%
     Percentage
      capitalized -
      see Note e             25%       17%       15%       11%    16%
  PVR average long-
   term debt
   outstanding        $   221.8     241.6     295.7     396.8  289.3
  PVR interest rate
   assumed                  6.2%      5.9%      5.9%      6.6%   6.2%

 Minority interest in
  PVG & PVR           $     9.3       9.2       9.1       2.7   30.3
 Income tax rate             39%       39%       39%       22%    38%
 Cash distributions
  received from
  PVG/PVR             $     2.4       8.4       9.1       9.7   29.6
 Other capital
  expenditures        $     1.5       2.3       1.1       2.4    7.3





                                                  2008 Guidance
                                            --------------------------
Oil & Gas Segment:
-------------------------------------------
 Production:
  Natural gas (Bcf) - See Note a               43.2     -         45.1
  Crude oil and condensate (MBbl's)         1,000.0     -      1,100.0
   Equivalent production (Bcfe)                49.2     -         51.7
   Equivalent daily production (MMcfed)       134.4     -        141.3

 Expenses:
  Cash operating expenses ($ per Mcfe)         2.10     -         2.30
  Exploration                                  30.0     -         40.0
  Impairment of oil and gas properties            -     -            -
  Depreciation, depletion and amortization
   ($ per Mcfe)                                2.50     -         2.65

 Capital Expenditures:
  Development drilling                                377.3
  Exploratory drilling                                 50.6
  Pipeline, gathering, facilities                      27.8
  Seismic                                              4.3
  Lease acquisition, field projects and
   other                                               14.8
  Proved property acquisitions                          -
   Total segment capital expenditures                 474.8

Coal and Natural Resource Segment (PVR):
-------------------------------------------
 Coal royalty tons (millions)                  33.5     -         35.5

 Revenues:
  Average royalty per ton                      2.65     -         2.75
  Other                                        25.0     -         27.0

 Expenses:
  Cash operating expenses                      21.0     -         23.0
  Depreciation, depletion and amortization     31.0     -         33.0

 Capital Expenditures:
  Expansion and acquisitions                           2.0
  Maintenance capital expenditures                     0.2
   Total segment capital expenditures                  2.2

Natural Gas Midstream Segment (PVR):
-------------------------------------------
 Throughput volumes (MMcf per day) - see
  Note c                                        220     -          230

 Expenses:
  Cash operating expenses                      34.0     -         36.0
  Depreciation, depletion and amortization     22.0     -         24.0

 Capital Expenditures:
  Expansion and acquisitions                           8.0
  Maintenance capital expenditures                     13.0
   Total segment capital expenditures                  21.0

Corporate and Other:
-------------------------------------------
 General and administrative expense - PVA -
  see Note d                                   20.0     -         21.0
 General and administrative expense - PVG -
  see Note d                                    3.0     -          3.5
 Interest expense:
  PVA average long-term debt outstanding              436.4
  PVA interest rate                                     7%
     Percentage capitalized - see Note e               11%
  PVR average long-term debt outstanding              433.5
  PVR interest rate assumed                             7%

 Minority interest in PVG & PVR                     see Note f
 Income tax rate                                    see Note g
 Cash distributions received from PVG/PVR           see Note h
 Other capital expenditures                     0.5     -          1.0



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


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

a -  The following table shows PVA's current derivative positions for
      natural gas production as of December 31, 2007:

                                             Weighted Average Price
                                           ---------------------------
                                 Average
                                  Volume   Additional
                                  Per Day   Put Option  Floor  Ceiling
                                ---------- ----------- ------- -------

     Natural Gas Costless       (in
      Collars                    MMbtu)            (per MMbtu)
     First Quarter 2008
      (ceiling reduced to $8.50
      for Feb and March)           10,000              $  9.00 $ 17.95
     First Quarter 2008 (2)
      (February and March only)    20,000              $  7.82 $  8.50
     Second Quarter 2008           10,000              $  7.50 $  9.10
     Third Quarter 2008            10,000              $  7.50 $  9.10
     Fourth Quarter 2008
      (October only)               10,000              $  7.50 $  9.10

     Natural Gas Three-way      (in
      Collars (1)                MMbtu)            (per MMbtu)
     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            2,500  $      5.00 $  8.00 $ 10.75
     Fourth Quarter 2008
      (October only)               20,000  $      5.00 $  7.00 $  8.89
     Fourth Quarter 2008
      (November and December
      only)                        20,000  $      5.75 $  8.00 $ 12.80
     Fourth Quarter 2008 (2)       20,000  $      5.50 $  8.38 $ 10.09
     First Quarter 2009            10,000  $      6.00 $  8.00 $ 13.00
     First Quarter 2009 (2)        20,000  $      5.50 $  8.38 $ 10.09
     Second Quarter 2009           10,000  $      5.50 $  7.50 $  9.10
     Third Quarter 2009            10,000  $      5.50 $  7.50 $  9.10

     Natural Gas Swaps          (in
                                 MMbtu)
     Second Quarter 2008 (2)       20,000              $  8.35
     Third Quarter 2008 (2)        20,000              $  8.35

     (1) A three-way collar contract consists of a collar contract
      plus a put option contract sold by PVA with a price below the
      floor price of the collar. This additional put requires PVA to
      make a payment to the counterparty if the settlement price for
      any settlement period is below the put option price. Combining
      the collar contract with the additional put option results in
      PVA's entitlement to a net payment equal to the difference
      between the floor price of the collar contract and the
      additional put option price if the settlement price is equal to
      or less than the additional put option price. If the settlement
      price is greater than the additional put option price, the
      result is the same as it would have been with a collar contract
      only. This strategy enables PVA to increase the floor and the
      ceiling price of the collar beyond the range of a traditional
      collar contract while defraying the associated cost with the
      sale of the additional put option.
     (2) Entered into in January 2008

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

                                                          Weighted
                                 Average    Weighted    Average Price
                                                       ---------------
                                 Volume      Average       Collars
                                                       ---------------
                                 Per Day      Price      Put    Call
                                ---------  ----------- ------- -------

     Frac Spread                     (in
                                   MMBtu)  (per MMBtu)
     First Quarter 2008 through
      Fourth Quarter 2008           7,824  $     5.020

     Ethane Sale Swap                (in         (per
                                 gallons)      gallon)
     First Quarter 2008 through
      Fourth Quarter 2008          34,440  $    0.4700

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

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

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

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

     Natural Gas Sale Swaps          (in
                                   MMbtu)  (per MMbtu)
     First Quarter 2008 through
      Fourth Quarter 2008           4,000  $      6.97


c -  Management estimates that excluding the above derivative
      positions, for every $1.00 per MMBtu decrease or increase in
      natural gas prices from the $7.50 per MMBtu budgeted 2008
      benchmark price, natural gas midstream gross processing margin
      and operating income in 2008 would increase or decrease,
      respectively, by $12.0 million. This assumes oil and other
      liquids prices and inlet volumes remain constant at budgeted
      levels. In addition, management also estimates that excluding
      the above derivative positions, for every $5.00 per barrel
      increase or decrease in the oil prices from the $80.00 per
      barrel budgeted 2008 benchmark price, natural gas midstream
      gross processing margin and operating income would increase or
      decrease, respectively, by $10.8 million. This assumes natural
      gas prices and inlet volumes remain constant at budgeted levels.
      These estimated changes in gross margin and operating income
      exclude the potential cash receipts or payments in settling
      these derivative positions.

d -  Year-to-date 2007 results and full-year 2008 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.

h -  2008 amounts received are dependent primarily upon distributions
      paid by Penn Virginia GP Holdings, L.P. (NYSE:PVG).

Source: Penn Virginia Corporation