Penn Virginia Corporation Announces Record Third Quarter 2008 Results

RADNOR, Pa.--

Penn Virginia Corporation (NYSE:PVA) today reported financial and operational results for the three months ended September 30, 2008 and provided updates to full-year 2008 guidance.

Third Quarter 2008 Highlights and Guidance Update

Third quarter 2008 highlights and results, with comparisons to third quarter 2007 results, included the following:

    --  Quarterly record oil and gas production of 11.7 billion cubic
        feet of natural gas equivalent (Bcfe), or 127.1 million cubic
        feet of natural gas equivalent (MMcfe) per day, as compared to
        11.1 Bcfe, or 120.7 MMcfe per day;

    --  Quarterly record operating income of $122.3 million, as
        compared to $51.9 million;

    --  Operating cash flow, a non-GAAP (generally accepted accounting
        principles) measure, of $97.5 million as compared to $78.9
        million;

    --  Quarterly record adjusted net income, a non-GAAP measure which
        excludes the effects of a non-cash change in derivatives fair
        value, of $46.1 million, or $1.08 per diluted share, as
        compared to $18.6 million, or $0.49 per diluted share;

    --  Quarterly record net income of $123.7 million, or $2.90 per
        diluted share, as compared to net income of $17.1 million, or
        $0.45 per diluted share; and

    --  Full-year oil and gas production guidance of between 46.5 and
        47.5 Bcfe, or between 127.0 and 129.8 MMcfe per day, as
        compared to the previous guidance range of 46.5 to 48.0 Bcfe.

Reconciliations of non-GAAP financial measures to GAAP-based measures appear in the financial tables later in this release.

In the third quarter of 2008, operating income was a record $122.3 million, which was $70.4 million, or 136 percent, higher than the third quarter of 2007. The increase was primarily due to 228 percent higher operating income in the oil and gas segment, 48 percent higher operating income in the coal and natural resource management segment (PVR Coal & Natural Resource Management) and lower corporate general and administrative (G&A) expense, partially offset by two percent lower operating income in the natural gas midstream segment (PVR Midstream).

Operating cash flow in the third quarter of 2008 increased to $97.5 million, up $18.6 million, or 24 percent, as compared to the third quarter of 2007 primarily due to the increase in operating income, partially offset by an increase in cash paid to settle derivatives, a "make-whole" payment related to the early repayment of senior unsecured notes of Penn Virginia Resource Partners, L.P. (PVR) and higher cash income taxes paid.

The increase in adjusted net income in the third quarter of 2008 as compared to the third quarter of 2007 was primarily due to the increase in operating income, partially offset by the increase in cash paid to settle derivatives.

The increase in net income in the third quarter of 2008 as compared to the third quarter of 2007 was primarily due to a $129.6 million increase in derivatives income, resulting mainly from changes in the valuation of unrealized derivative positions, and higher operating income, partially offset by higher income tax expense and higher minority interest.

Management Comment

A. James Dearlove, President and Chief Executive Officer of PVA, said, "We are pleased with this quarter's record results, with strong contributions from our oil and gas segment and our PVR Coal & Natural Resource Management segment. Our oil and gas segment benefited from record quarterly production and high commodity prices, while PVR Coal & Natural Resource Management reported record operating income and average coal royalties per ton.

"We expect growth in our oil and gas segment from a number of our project areas, including the Lower Bossier (Haynesville) Shale in East Texas, the Granite Wash formation in the Mid-Continent region, the Selma Chalk in Mississippi and Appalachian horizontal coalbed methane (HCBM). We are encouraged by all of our initial Lower Bossier Shale horizontal wells, Granite Wash horizontal wells and Selma Chalk horizontal wells for which we have results. In Appalachia, in addition to continued HCBM drilling, we have expanded our acreage position in areas of Pennsylvania that we believe to be prospective for the Marcellus Shale with initial exploration expected in late 2009.

"PVR continues to experience growth in the cash flows from its coal and natural resource management and midstream segments as a result of strong coal fundamentals and increased system throughput volumes due to recent midstream expansions and acquisitions. PVR Coal & Natural Resource Management had a solid third quarter due to the rise in average coal royalties per ton to a record $3.92, which was 42 percent higher than the prior year quarter and 10 percent higher than the second quarter of 2008. The increase was primarily due to the renewals of a substantial portion of PVR's lessees' contracts for production in Central Appalachia and the Illinois Basin at higher prices.

"During the third quarter, PVR Midstream increased its system throughput volumes by 55 percent over the prior year quarter and 16 percent relative to the second quarter of 2008 as a result of contributions from two new processing plants and recent acquisitions of gathering and transportation systems in Texas. However, the increase in system throughput volumes in the quarter was more than offset by the impact of Hurricane Ike, which forced PVR Midstream to curtail natural gas liquids (NGL) production during September and October.

"We own 77 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of the general partner and largest limited partner unitholder of PVR. PVG currently provides approximately $46 million of annualized cash distributions to PVA - approximately 19 percent higher than the annualized amount in the prior year quarter.

"Like most of the independent oil and gas industry, we are taking a cautious approach to our capital spending plans as we exit 2008 and enter 2009. We are in the process of designing our 2009 capital spending budget, which will reflect our ongoing view of industry and capital markets conditions. Based on currently available information, we believe our inventory of drilling locations and financial position is sufficient to allow us to continue to grow production and reserves in 2009."

Oil and Gas Segment Review

Record third quarter 2008 oil and gas production of 11.7 Bcfe was five percent higher than the 11.1 Bcfe in the third quarter of 2007 and was two percent higher than the 11.4 Bcfe in the second quarter of 2008. See PVA's separate operational update news release dated October 29, 2008 for a more detailed discussion of third quarter 2008 drilling and production operations for the oil and gas segment.

Oil and gas segment operating income for the third quarter of 2008 was $89.0 million, a 228 percent increase from the $27.2 million in the third quarter of 2007. Total oil and gas revenues increased by 84 percent from $85.3 million in the third quarter of 2007 to $156.7 million in the third quarter of 2008. The increase in revenues was primarily attributable to a 61 percent increase in the realized natural gas price and a 63 percent increase in the realized crude oil price. Revenues also grew as a result of the production increase, which was primarily attributable to a 441 percent increase in NGL production as a result of the new PVR Midstream processing plant in East Texas.

In the third quarter of 2008, total oil and gas segment expenses increased by $9.6 million, or 16 percent, to $67.7 million, or $5.79 per Mcfe produced, from $58.2 million, or $5.24 per Mcfe produced, in the third quarter of 2007, as discussed below:

-- Third quarter 2008 cash operating expenses increased by $6.0
    million, or 29 percent, to $26.7 million, or $2.29 per Mcfe
    produced, from $20.8 million, or $1.86 per Mcfe produced, in the
    third quarter of 2007. The overall increase in cash operating
    expenses was primarily due to the production increase. Increases
    in cash operating expenses per unit of production as compared to
    the prior year quarter are discussed below:

   -- Lease operating expense increased to $1.29 per Mcfe from $1.10
    per Mcfe, primarily due to increased compressor rentals in the
    East Texas region due to volume growth, where PVA's drilling
    program is highly active, and increased processing fees related to
    PVR Midstream's East Texas gas processing plant;

   -- Taxes other than income increased to $0.56 per Mcfe from $0.39
    per Mcfe, primarily due to increased severance taxes related to
    higher commodity prices in the third quarter of 2008 relative to
    the prior year quarter; and

   -- G&A expense increased to $0.44 per Mcfe from $0.37 per Mcfe,
    primarily due to increased staffing costs.

-- Exploration expense decreased to $8.3 million in the third quarter
    of 2008, as compared to $12.9 million in the prior year quarter,
    primarily due to decreases in dry hole costs and leasehold
    expenses, partially offset by increases in geological, geophysical
    and other expenses.

-- Depletion, depreciation and amortization (DD&A) expense increased
    by $10.5 million, or 47 percent, to $32.7 million, or $2.79 per
    Mcfe, in the third quarter of 2008 from $22.2 million, or $2.00
    per Mcfe, in the prior year quarter. The overall increase in DD&A
    expense was primarily due to the higher depletion rate per unit of
    production, a result of higher drilling costs and acquisitions as
    well as the production increase.

Coal & Natural Resource Management and Natural Gas Midstream Segment Review (PVR and PVG)

Operating income for PVR Coal & Natural Resource Management increased 48 percent to $26.3 million in the third quarter of 2008 from $17.7 million in the prior year quarter. Hurricane-related curtailments caused operating income for PVR Midstream to decrease two percent to $13.7 million in the third quarter of 2008 from $14.1 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 November 5, 2008 (please visit PVR's website, www.pvresource.com under "For Investors," for a copy of the release).

As previously announced, on November 19, 2008, PVG will pay to unitholders of record as of November 6, 2008 a quarterly cash distribution covering the period of July 1 through September 30, 2008 in the amount of $0.38 per unit, or an annualized rate of $1.52 per unit. On an annualized basis, this represents a $0.08 per unit, or six percent, increase over the annualized distribution of $1.44 per unit paid for the second quarter of 2008 and a 27 percent increase over the annualized distribution of $1.20 per unit for the same quarter of 2007.

As a result of PVG's distribution increase, PVA will receive a cash distribution of approximately $11.4 million in the fourth quarter of 2008, which would be approximately $45.7 million on an annualized basis.

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

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" table in 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. Management believes that the financial statements presented using the equity method are less complex and more comparable to those of other oil and gas exploration and production companies.

Capital Resources and Impact of Derivatives

As of September 30, 2008, PVA had outstanding borrowings of $410.0 million, including $230.0 million of convertible senior subordinated notes due 2012 and $180.0 million of borrowings under its $479.0 million revolving credit facility. The $58.0 million increase in outstanding borrowings as compared to the $352.0 million at December 31, 2007 was primarily due to higher spending to fund PVA's oil and gas capital expenditures during the first nine months of 2008.

As of September 30, 2008, PVR had outstanding borrowings of $558.1 million under its $700 million revolving credit facility. The $146.4 million increase in outstanding borrowings as compared to the $411.7 million as of December 31, 2007 was primarily due to acquisitions and capital expenditures during the first nine months of 2008, partially offset by the net proceeds from a public offering of common units in May 2008. In July 2008, $58.4 million of senior unsecured notes were repaid, resulting in a $3.8 million make-whole payment to noteholders.

Consolidated interest expense increased from $10.8 million in the third quarter of 2007 to $11.9 million in the third quarter of 2008. The increase was due to higher weighted average levels of outstanding borrowings during the third quarter of 2008 as compared to the prior year quarter.

Based on derivatives currently in place for natural gas production, PVA has hedged approximately 55 percent of natural gas production for the fourth quarter of 2008, based on the midpoint of production guidance, at weighted average floors and ceilings of $8.50 and $11.15 per MMBtu. In 2009, PVA has hedged approximately 42 million cubic feet of natural gas per day at weighted average floors and ceilings of $8.94 and $11.72 per MMBtu. See the Guidance Table included in this release for details of production guidance and derivative positions.

Due to decreases in natural gas and crude oil prices experienced during the third quarter, the mark-to-market valuation of PVA and PVR open hedging positions resulted in derivatives income of $125.1 million, as compared to expense of $4.5 million in the prior year quarter. Included in derivatives income for the third quarter of 2008 was $109.4 million related to PVA's oil and gas segment and $15.7 million of derivatives income related to PVR. Cash settlements of derivatives included in these amounts resulted in net cash payments of $19.8 million during the third quarter of 2008, as compared to $0.6 million of net cash receipts in the third quarter of 2007. Included in the cash settlement of derivatives for the third quarter of 2008 was $5.7 million of net cash payments related to PVA's oil and gas segment and $14.1 million of net cash payments related to PVR. Most of the mark-to-market based derivative income represents prospective future payments assuming commodity prices remain as indicated by the futures markets on the September 30, 2008 valuation date.

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.

Third Quarter 2008 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss third quarter 2008 financial and operational results for PVA, is scheduled for Thursday, November 6, 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 November 20, 2008 at 11:59 p.m. ET by dialing 1-877-660-6853 and using the following replay pass codes: account #286, conference ID #300120. 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 United States, 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 77 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of the general partner and the largest unitholder of Penn Virginia Resource Partners, L.P. (NYSE: PVR), a manager of coal 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, NGLs, crude oil and coal; our ability to develop and replace oil and gas reserves and the price for which such reserves can be acquired; the relationship between natural gas, NGL, oil and coal prices; the projected demand for and supply of natural gas, NGLs, crude oil and coal; the availability and costs of required drilling rigs, production equipment and materials; our ability to obtain adequate pipeline transportation capacity for our oil and gas production; 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 proved oil and gas reserves and recoverable coal reserves; PVR's ability to generate sufficient cash from its businesses to maintain and pay the quarterly distribution to its general partner and its unitholders; the experience and financial condition of PVR's coal lessees and natural gas midstream customers, including the lessees' ability to satisfy their royalty, environmental, reclamation and other obligations to PVR and others; operating risks, including unanticipated geological problems, incidental to our business and to PVR's coal or natural gas midstream business; PVR's ability to acquire new coal reserves or natural gas midstream assets and new sources of natural gas supply and connections to third-party pipelines on satisfactory terms; PVR's ability to retain existing or acquire new natural gas midstream customers and coal lessees; the ability of PVR's lessees to produce sufficient quantities of coal on an economic basis from PVR's reserves and obtain favorable contracts for such production; the occurrence of unusual weather or operating conditions including force majeure events; delays in anticipated start-up dates of our oil and natural gas production, of PVR's lessees' mining operations and related coal infrastructure projects and new processing plants in PVR's natural gas midstream business; 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; hedging results; 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, interest rates and financial and credit markets) and political conditions (including the impact of potential terrorist attacks); 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, 2007. 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
           CONSOLIDATED STATEMENTS OF EARNINGS - unaudited
                (in thousands, except per share data)

                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                 2008      2007      2008      2007
                               --------- --------- --------- ---------
Revenues
     Natural gas               $101,911  $ 65,310  $295,636  $193,961
     Crude oil                   13,764     6,299    37,442    14,985
     Natural gas liquids
      (NGLs)                     10,481     1,290    18,887     3,458
     Natural gas midstream      184,914   100,370   494,260   310,095
     Coal royalties              33,308    24,426    88,911    73,455
     Gain on the sale of
      property and equipment     31,279    12,312    31,335    12,436
     Other                        9,955     5,751    28,690    16,036
                               --------- --------- --------- ---------
        Total revenues          385,612   215,758   995,161   624,426
                               --------- --------- --------- ---------
Expenses
     Cost of midstream gas
      purchased                 155,564    76,192   408,247   251,000
     Operating                   23,437    17,602    66,653    47,557
     Exploration                  8,346    12,873    19,765    23,610
     Taxes other than income      7,671     5,156    23,325    15,995
     General and
      administrative
      (excluding equity-based
      compensation)              16,211    15,109    49,299    42,616
     Equity-based compensation
      - (a)                       2,078     1,330     5,707     3,923
     Impairment of oil and gas
      properties                      -     2,405         -     2,405
     Depreciation, depletion
      and amortization           49,978    33,207   133,481    89,823
                               --------- --------- --------- ---------
        Total expenses          263,285   163,874   706,477   476,929
                               --------- --------- --------- ---------

Operating income                122,327    51,884   288,684   147,497

Other income (expense)
     Interest expense           (11,938)  (10,843)  (31,600)  (25,878)
     Other                       (4,088)      576      (782)    2,536
     Derivatives                125,132    (4,455)   (4,387)  (22,068)
                               --------- --------- --------- ---------

Income before minority
 interest and income taxes      231,433    37,162   251,915   102,087

     Minority interest           28,276     9,135    52,252    27,659
     Income tax expense          79,419    10,913    75,792    29,033
                               --------- --------- --------- ---------

Net income                     $123,738  $ 17,114  $123,871  $ 45,395
                               ========= ========= ========= =========

Per share data:

Net income per share, basic    $   2.95  $   0.45  $   2.96  $   1.20
                               ========= ========= ========= =========
Net income per share, diluted
 - (b)                         $   2.90  $   0.45  $   2.94  $   1.19
                               ========= ========= ========= =========

Weighted average shares
 outstanding, basic              41,881    37,898    41,715    37,748
Weighted average shares
 outstanding, diluted            42,544    38,213    42,028    38,045

----------------------------------------------------------------------

                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                 2008      2007      2008      2007
                               --------- --------- --------- ---------
Production
      Natural gas (MMcf)         10,046    10,407    29,869    27,872
      Crude oil (MBbls)             117        87       331       240
      NGLs (MBbls)                  157        29       300        96
      Total natural gas, crude
       oil and NGL production
       (MMcfe)                   11,690    11,102    33,655    29,888

Prices
     Natural gas ($ per Mcf)   $  10.14  $   6.28  $   9.90  $   6.96
     Crude oil ($ per Bbl)     $ 117.64  $  72.40  $ 113.12  $  62.44
     NGLs ($ per Bbl)          $  66.76  $  44.48  $  62.96  $  36.02

(a) - Our equity-based compensation expense includes our stock option expense and the amortization of restricted stock and units in accordance with SFAS No. 123(R), Share-Based Payment.

(b) - Diluted EPS net income per share includes an adjustment to net income for the dilutive effect of PVR's net income allocated to PVR units that we own and have awarded under PVR's long-term incentive compensation plan.


                      PENN VIRGINIA CORPORATION
               CONSOLIDATED BALANCE SHEETS - unaudited
                            (in thousands)

                                           September 30,  December 31,
                                               2008           2007
                                           -------------  ------------

Assets
     Current assets                       $      251,173 $     244,072
     Net property and equipment                2,399,454     1,899,014
     Other assets                                259,994       110,375
                                           -------------  ------------
          Total assets                    $    2,910,621 $   2,253,461
                                           =============  ============

Liabilities and shareholders' equity
     Current liabilities                  $      285,490 $     261,899
     Long-term debt of PVA                       410,000       352,000
     Long-term debt of PVR                       558,100       399,153
     Other liabilities and deferred taxes        327,075       251,149
     Minority interests of subsidiaries          309,191       179,162
     Shareholders' equity                      1,020,765       810,098
                                           -------------  ------------
          Total liabilities and
           shareholders' equity           $    2,910,621 $   2,253,461
                                           =============  ============

          CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited
                            (in thousands)

                             Three Months Ended    Nine Months Ended
                               September 30,         September 30,
                            --------------------  --------------------
                              2008       2007       2008       2007
                            ---------  ---------  ---------  ---------
Cash flows from operating
 activities
     Net income            $ 123,738  $  17,114  $ 123,871  $  45,395
     Adjustments to
      reconcile net income
      to net cash provided
      by operating
      activities:
     Depreciation,
      depletion and
      amortization            49,978     33,207    133,481     89,823
     Derivative contracts:
       Total derivative
        losses (gains)      (123,628)     6,053      8,516     25,569
       Cash settlements of
        derivatives          (19,755)       586    (46,740)     2,281
     Deferred income taxes    62,050      9,218     61,545     21,902
     Minority interest        28,276      9,135     52,252     27,659
     Gain on sale of
      property and
      equipment              (31,279)   (12,312)   (31,335)   (12,436)
     Impairment of oil and
      gas properties               -      2,405          -      2,405
     Dry hole and unproved
      leasehold expense        5,520     11,991     14,992     20,707
     Other                     2,622      1,523      1,504      2,918
                            ---------  ---------  ---------  ---------
     Operating cash flow
      (see attached table
      "Certain Non-GAAP
      Financial Measures")    97,522     78,920    318,086    226,223
     Changes in operating
      assets and
      liabilities             (5,727)    (2,736)   (41,399)   (17,242)
                            ---------  ---------  ---------  ---------
       Net cash provided
        by operating
        activities            91,795     76,184    276,687    208,981
                            ---------  ---------  ---------  ---------

Cash flows from investing
 activities
     Acquisitions           (162,078)  (162,794)  (278,185)  (239,018)
     Additions to property
      and equipment         (162,857)  (109,685)  (392,031)  (308,987)
     Other                    33,215     29,142     33,954     29,385
                            ---------  ---------  ---------  ---------
       Net cash used in
        investing
        activities          (291,720)  (243,337)  (636,262)  (518,620)
                            ---------  ---------  ---------  ---------

Cash flows from financing
 activities
     Dividends paid           (2,351)    (2,130)    (7,037)    (6,370)
     Distributions paid to
      minority interest
      holders                (17,917)   (12,937)   (45,829)   (36,402)
     Borrowings from bank
      indebtedness            46,431          -     46,431          -
     Net proceeds from
      (repayments of) PVA
      borrowings             (25,000)    86,000     58,000    193,500
     Net proceeds from PVR
      borrowings             176,600     89,000    146,000    146,000
     Net proceeds from
      issuance of PVR
      partners' capital            -          -    138,015          -
     Other                    (2,311)      (188)     8,475      7,376
                            ---------  ---------  ---------  ---------
       Net cash provided
        by financing
        activities           175,452    159,745    344,055    304,104
                            ---------  ---------  ---------  ---------

Net decrease in cash and
 cash equivalents            (24,473)    (7,408)   (15,520)    (5,535)
Cash and cash equivalents
 - beginning of period        43,480     22,211     34,527     20,338
                            ---------  ---------  ---------  ---------
Cash and cash equivalents
 - end of period           $  19,007  $  14,803  $  19,007  $  14,803
                            =========  =========  =========  =========

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


                                                           Coal and
                                                            Natural
                                                           Resource
                                       Oil and Gas         Management
                                  ---------------------- -------------
                                                (per
                                    Amount     Mcfe)(a)
                                  ---------- -----------
Three Months Ended September 30,
 2008

Production
Total natural gas, crude oil and
 NGLs (MMcfe)                         11,690
        Natural gas (MMcf)            10,046
        Crude oil (MBbls)                117
        NGLs (MBbls)                     157
Coal royalty tons (thousands of
 tons)                                                           8,496
Midstream system throughput
 volumes (MMcf)

Revenues
     Natural gas                  $  101,911    $  10.14 $           -
     Crude Oil                        13,764      117.64             -
     NGL                              10,481       66.76             -
     Natural gas midstream                 -                         -
     Coal royalties                        -                    33,308
     Gain on the sale of property
      and equipment                   30,509                       770
     Other                                60                     7,582
                                  ---------- ----------- -------------
        Total revenues               156,725       13.41        41,660
                                  ---------- ----------- -------------
Expenses
     Cost of midstream gas
      purchased                            -           -             -
     Operating expense                15,067        1.29         2,877
     Exploration                       8,346        0.71             -
     Taxes other than income           6,537        0.56           373
     General and administrative        5,122        0.44         3,321
     Depreciation, depletion and
      amortization                    32,665        2.79         8,794
                                  ---------- ----------- -------------
       Total expenses                 67,737        5.79        15,365
                                  ---------- ----------- -------------

Operating income (loss)           $   88,988    $   7.62 $      26,295
                                  ---------- ----------- -------------


Additions to property and
 equipment and acquisitions       $  213,572             $         497



                                   Natural
                                      Gas    Eliminations
                                  Midstream   and Other   Consolidated
                                  ---------- ------------ ------------

Three Months Ended September 30,
 2008

Production
Total natural gas, crude oil and
 NGLs (MMcfe)
        Natural gas (MMcf)
        Crude oil (MBbls)
        NGLs (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput
 volumes (MMcf)                       27,744

Revenues
     Natural gas                  $        - $         -  $    101,911
     Crude Oil                             -           -        13,764
     NGL                                   -           -        10,481
     Natural gas midstream           241,282     (56,368)      184,914
     Coal royalties                        -           -        33,308
     Gain on the sale of property
      and equipment                        -           -        31,279
     Other                             2,334         (21)        9,955
                                  ---------- ------------ ------------
        Total revenues               243,616     (56,389)      385,612
                                  ---------- ------------ ------------
Expenses
     Cost of midstream gas
      purchased                      211,262     (55,698)      155,564
     Operating expense                 6,164        (671)       23,437
     Exploration                           -           -         8,346
     Taxes other than income             596         165         7,671
     General and administrative        3,757       6,089        18,289
     Depreciation, depletion and
      amortization                     8,109         410        49,978
                                  ---------- ------------ ------------
       Total expenses                229,888     (49,705)      263,285
                                  ---------- ------------ ------------

Operating income (loss)           $   13,728 $    (6,684) $    122,327
                                  ---------- ------------ ------------


Additions to property and
 equipment and acquisitions       $  172,356 $   (61,490) $    324,935



                                                           Coal and
                                                            Natural
                                                           Resource
                                       Oil and Gas         Management
                                  ---------------------- -------------
                                                (per
                                    Amount     Mcfe)(a)
                                  ---------- -----------
Three Months Ended September 30,
 2007

Production
Total natural gas, crude oil and
 NGLs (MMcfe)                         11,102
        Natural gas (MMcf)            10,407
        Crude oil (MBbls)                 87
        NGLs (MBbls)                      29
Coal royalty tons (thousands of
 tons)                                                           8,842
Midstream system throughput
 volumes (MMcf)

Revenues
     Natural gas                  $   65,310 $      6.28 $           -
     Crude Oil                         6,299       72.40             -
     NGL                               1,290       44.48             -
     Natural gas midstream                 -                         -
     Coal royalties                        -                    24,426
     Gain on the sale of property
      and equipment                   12,312                         -
     Other                               120                     3,990
                                  ---------- ----------- -------------
        Total revenues                85,331        7.69        28,416
                                  ---------- ----------- -------------
Expenses
     Cost of midstream gas
      purchased                            -           -             -
     Operating expense                12,247        1.10         1,999
     Exploration                      12,873        1.16             -
     Taxes other than income           4,380        0.39           242
     General and administrative        4,124        0.37         2,630
     Impairment of oil and gas
      properties                       2,405        0.22             -
     Depreciation, depletion and
      amortization                    22,152        2.00         5,833
                                  ---------- ----------- -------------
       Total expenses                 58,181        5.24        10,704
                                  ---------- ----------- -------------

Operating income (loss)           $   27,150 $      2.45 $      17,712
                                  ---------- ----------- -------------


Additions to property and
 equipment and acquisitions       $  166,500             $      93,449



                                   Natural
                                      Gas    Eliminations
                                  Midstream   and Other   Consolidated
                                  ---------- ------------ ------------

Three Months Ended September 30,
 2007

Production
Total natural gas, crude oil and
 NGLs (MMcfe)
        Natural gas (MMcf)
        Crude oil (MBbls)
        NGLs (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput
 volumes (MMcf)                       17,844

Revenues
     Natural gas                  $        - $         -  $     65,310
     Crude Oil                                         -         6,299
     NGL                                               -         1,290
     Natural gas midstream           100,370           -       100,370
     Coal royalties                        -           -        24,426
     Gain on the sale of property
      and equipment                        -           -        12,312
     Other                             1,418         223         5,751
                                  ---------- ------------ ------------
        Total revenues               101,788         223       215,758
                                  ---------- ------------ ------------
Expenses
     Cost of midstream gas
      purchased                       76,192           -        76,192
     Operating expense                 3,225         131        17,602
     Exploration                           -           -        12,873
     Taxes other than income             424         110         5,156
     General and administrative        3,076       6,609        16,439
     Impairment of oil and gas
      properties                           -           -         2,405
     Depreciation, depletion and
      amortization                     4,812         410        33,207
                                  ---------- ------------ ------------
       Total expenses                 87,729       7,260       163,874
                                  ---------- ------------ ------------

Operating income (loss)           $   14,059 $    (7,037) $     51,884
                                  ---------- ------------ ------------


Additions to property and
 equipment and acquisitions       $   10,755 $     1,775  $    272,479


(a) - Natural gas revenues are shown per Mcf, crude oil and NGL
 revenues are shown per Bbl, and all other amounts are shown per Mcfe.

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


                                                           Coal and
                                                             Natural
                                                           Resource
                                        Oil and Gas        Management
                                  ----------------------- ------------
                                                 (per
                                    Amount      Mcfe)(a)
                                  ----------- -----------
Nine Months Ended September 30,
 2008

Production
Total natural gas, crude oil and
 NGLs (MMcfe)                          33,655
        Natural gas (MMcf)             29,869
        Crude oil (MBbls)                 331
        NGLs (MBbls)                      300
Coal royalty tons (thousands of
 tons)                                                          24,975
Midstream system throughput
 volumes (MMcf)

Revenues
     Natural gas                  $   295,636 $      9.90 $          -
     Crude Oil                         37,442      113.12            -
     NGLs                              18,887       62.96            -
     Natural gas midstream                  -                        -
     Coal royalties                         -                   88,911
     Gain on the sale of property
      and equipment                    30,543                      792
     Other                                883                   21,307
                                  ----------- ----------- ------------
        Total revenues                383,391       11.39      111,010
                                  ----------- ----------- ------------
Expenses
     Cost of midstream gas
      purchased                             -           -            -
     Operating expense                 43,370        1.29        9,522
     Exploration                       19,765        0.59            -
     Taxes other than income           19,480        0.58        1,115
     General and administrative        14,869        0.44        9,780
     Depreciation, depletion and
      amortization                     90,849        2.70       22,733
                                  ----------- ----------- ------------
       Total expenses                 188,333        5.60       43,150
                                  ----------- ----------- ------------

Operating income (loss)           $   195,058 $      5.79 $     67,860
                                  ----------- ----------- ------------


Additions to property and
 equipment and acquisitions       $   422,974             $     25,186




                                   Natural
                                      Gas    Eliminations
                                  Midstream   and Other   Consolidated
                                  ---------- ------------ ------------

Nine Months Ended September 30,
 2008

Production
Total natural gas, crude oil and
 NGLs (MMcfe)
        Natural gas (MMcf)
        Crude oil (MBbls)
        NGLs (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput
 volumes (MMcf)                       68,915

Revenues
     Natural gas                  $        - $         -  $    295,636
     Crude Oil                             -           -        37,442
     NGLs                                  -           -        18,887
     Natural gas midstream           601,127    (106,867)      494,260
     Coal royalties                        -           -        88,911
     Gain on the sale of property
      and equipment                        -           -        31,335
     Other                             6,458          42        28,690
                                  ---------- ------------ ------------
        Total revenues               607,585    (106,825)      995,161
                                  ---------- ------------ ------------
Expenses
     Cost of midstream gas
      purchased                      513,778    (105,531)      408,247
     Operating expense                15,031      (1,270)       66,653
     Exploration                           -           -        19,765
     Taxes other than income           1,902         828        23,325
     General and administrative       10,559      19,798        55,006
     Depreciation, depletion and
      amortization                    18,589       1,310       133,481
                                  ---------- ------------ ------------
       Total expenses                559,859     (84,865)      706,477
                                  ---------- ------------ ------------

Operating income (loss)           $   47,726 $   (21,960) $    288,684
                                  ---------- ------------ ------------


Additions to property and
 equipment and acquisitions       $  282,747 $   (60,691) $    670,216



                                                           Coal and
                                                             Natural
                                                           Resource
                                        Oil and Gas        Management
                                  ----------------------- ------------
                                                 (per
                                    Amount      Mcfe)(a)
                                  ----------- -----------
Nine Months Ended September 30,
 2007

Production
Total natural gas, crude oil and
 NGLs (MMcfe)                          29,888
        Natural gas (MMcf)             27,872
        Crude oil (MBbls)                 240
        NGLs (MBbls)                       96
Coal royalty tons (thousands of
 tons)                                                          25,186
Midstream system throughput
 volumes (MMcf)

Revenues
     Natural gas                  $   193,961 $      6.96 $          -
     Crude oil                         14,985       62.44            -
     NGL                                3,458       36.02            -
     Natural gas midstream                  -                        -
     Coal royalties                         -                   73,455
     Gain on the sale of property
      and equipment                    12,239                      197
     Other                                868                   11,658
                                  ----------- ----------- ------------
        Total revenues                225,511        7.55       85,310
                                  ----------- ----------- ------------
Expenses
     Cost of midstream gas
      purchased                             -           -            -
     Operating expense                 31,190        1.04        6,668
     Exploration                       23,610        0.79            -
     Taxes other than income           13,249        0.44          832
     General and administrative        11,026        0.37        7,989
     Impairment of oil and gas
      properties                        2,405        0.08            -
     Depreciation, depletion and
      amortization                     58,628        1.96       16,643
                                  ----------- ----------- ------------
       Total expenses                 140,108        4.68       32,132
                                  ----------- ----------- ------------

Operating income (loss)           $    85,403 $      2.87 $     53,178
                                  ----------- ----------- ------------


Additions to property and
 equipment and acquisitions       $   367,558             $    146,915


                                   Natural
                                      Gas    Eliminations
                                  Midstream   and Other   Consolidated
                                  ---------- ------------ ------------

Nine Months Ended September 30,
 2007

Production
Total natural gas, crude oil and
 NGLs (MMcfe)
        Natural gas (MMcf)
        Crude oil (MBbls)
        NGLs (MBbls)
Coal royalty tons (thousands of
 tons)
Midstream system throughput
 volumes (MMcf)                       50,763

Revenues
     Natural gas                  $        - $         -  $    193,961
     Crude oil                             -           -        14,985
     NGL                                   -           -         3,458
     Natural gas midstream           310,095           -       310,095
     Coal royalties                        -           -        73,455
     Gain on the sale of property
      and equipment                                    -        12,436
     Other                             3,143         367        16,036
                                  ---------- ------------ ------------
        Total revenues               313,238         367       624,426
                                  ---------- ------------ ------------
Expenses
     Cost of midstream gas
      purchased                      251,000           -       251,000
     Operating expense                 9,567         132        47,557
     Exploration                           -           -        23,610
     Taxes other than income           1,280         634        15,995
     General and administrative        9,119      18,405        46,539
     Impairment of oil and gas
      properties                           -           -         2,405
     Depreciation, depletion and
      amortization                    13,957         595        89,823
                                  ---------- ------------ ------------
       Total expenses                284,923      19,766       476,929
                                  ---------- ------------ ------------

Operating income (loss)           $   28,315 $   (19,399) $    147,497
                                  ---------- ------------ ------------


Additions to property and
 equipment and acquisitions       $   28,619 $     4,913  $    548,005


(a) - Natural gas revenues are shown per Mcf, crude oil and NGL
 revenues are shown per Bbl, and all other amounts are shown per Mcfe.

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


                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                  2008      2007     2008      2007
                               ---------- -------- --------- ---------
Reconciliation of GAAP "Net
 cash provided by operating
 activities" to Non-GAAP
 "Operating cash flow"
------------------------------
Net cash provided by operating
 activities                    $  91,795  $76,184  $276,687  $208,981
Adjustments:
  Changes in operating assets
   and liabilities                 5,727    2,736    41,399    17,242
                               ---------- -------- --------- ---------

Operating cash flow (a)        $  97,522  $78,920  $318,086  $226,223
                               ========== ======== ========= =========

Reconciliation of GAAP "Net
 income" to Non-GAAP "Net
 income as adjusted"
------------------------------
Net income as reported         $ 123,738  $17,114  $123,871  $ 45,395
Adjustments for derivatives:
  Derivative losses included
   in operating income             1,504    1,597     4,129     3,500
  Derivative losses (gains)
   included in other income     (125,132)   4,456     4,387    22,069
  Cash settlements of
   derivatives                   (19,755)     586   (46,740)    2,281
  Impact of adjustments on
   minority interest (b)          16,755   (4,115)   13,649    (8,801)
  Impact of adjustments on
   income tax expense (c)         49,139     (968)    9,339    (7,429)
                               ---------- -------- --------- ---------

                               $  46,249  $18,670  $108,635  $ 57,015
Less: Portion of subsidiary
 net income allocated to
 undistributed share-based
 compensation awards                (219)     (60)     (418)     (170)
                               ---------- -------- --------- ---------

Net income as adjusted (d)     $  46,030  $18,610  $108,217  $ 56,845
                               ========== ======== ========= =========

Net income as adjusted per
 share, diluted                $    1.08  $  0.49  $   2.57  $   1.49

(a) - Operating cash flow represents net cash provided by operating activities before changes in operating assets and liabilities. Management believes that operating cash flow is widely accepted as a financial indicator of an energy company's ability to generate cash which is used to internally fund investing activities, service debt and pay dividends. Operating cash flow is widely used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies within the energy industry. Operating cash flow is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. 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, as a measure of liquidity or as an alternative to net income.

(b) - Minority interest for the three months ended September 30, 2008 and 2007 has been adjusted for the effect of incentive distribution rights and reflects the minority interest percentage of net income recognized for the nine months ended September 30, 2008 and 2007.

(c) - The impact of these adjustments on PVA's income tax expense reflects its effective tax rate of 38.0%.

(d) - Net income as adjusted represents net income adjusted to exclude the effects of non-cash changes in the fair value of derivatives and the effect of PVR's net income allocated to PVR units that we own and have awarded under PVR's long-term incentive compensation plan. Management believes this presentation 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, as well as companies within the natural gas midstream industry. Management uses this information for comparative purposes within these industries. Net income as adjusted is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to net income.


                      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" (a):
----------------------------------------------------------------------


                                       Three Months Ended September 30
                                                     2008
                                       -------------------------------
                                          As                    As
                                        Reported Adjustments  Adjusted
                                       --------- ----------- ---------
Revenues
     Natural gas                       $101,911  $        -  $101,911
     Crude oil                           13,764           -    13,764
     NGLs                                10,481           -    10,481
     Natural gas midstream              184,914    (184,914)        -
     Coal royalties                      33,308     (33,308)        -
     Gain on the sale of property and
      equipment                          31,279        (770)   30,509
     Other                                9,955      (9,916)       39
                                       --------- ----------- ---------
        Total revenues                  385,612    (228,908)  156,704
                                       --------- ----------- ---------
Expenses
     Cost of midstream gas purchased    155,564    (155,564)        -
     Operating                           23,437      (8,371)   15,066
     Exploration                          8,346           -     8,346
     Taxes other than income              7,671        (969)    6,702
     General and administrative          18,289      (7,618)   10,671
     Impairment of oil and gas
      properties                              -           -         -
     Depreciation, depletion and
      amortization                       49,978     (16,903)   33,075
                                       --------- ----------- ---------
        Total expenses                  263,285    (189,425)   73,860
                                       --------- ----------- ---------

Operating income                        122,327     (39,483)   82,844

Other income (expense)
     Interest expense                   (11,938)      7,060    (4,878)
     Derivatives                        125,132     (15,742)  109,390
     Equity earnings in PVG and PVR           -      15,771    15,771
     Other                               (4,088)      4,118        30
                                       --------- ----------- ---------

Income before minority interest and
 income taxes                           231,433     (28,276)  203,157

     Minority interest                   28,276     (28,276)        -
     Income tax expense                  79,419           -    79,419
                                       --------- ----------- ---------

Net income                             $123,738  $        -  $123,738
                                       ========= =========== =========


                                       Three Months Ended September 30
                                                     2007
                                       -------------------------------
                                          As                    As
                                        Reported Adjustments  Adjusted
                                       --------- ----------- ---------
Revenues
     Natural gas                       $ 65,310  $        -   $65,310
     Crude oil                            6,299           -     6,299
     NGLs                                 1,290           -     1,290
     Natural gas midstream              100,370    (100,370)        -
     Coal royalties                      24,426     (24,426)        -
     Gain on the sale of property and
      equipment                          12,312           -    12,312
     Other                                5,751      (5,408)      343
                                       --------- ----------- ---------
        Total revenues                  215,758    (130,204)   85,554
                                       --------- ----------- ---------
Expenses
     Cost of midstream gas purchased     76,192     (76,192)        -
     Operating                           17,602      (5,224)   12,378
     Exploration                         12,873           -    12,873
     Taxes other than income              5,156        (666)    4,490
     General and administrative          16,439      (5,980)   10,459
     Impairment of oil and gas
      properties                          2,405           -     2,405
     Depreciation, depletion and
      amortization                       33,207     (10,645)   22,562
                                       --------- ----------- ---------
        Total expenses                  163,874     (98,707)   65,167
                                       --------- ----------- ---------

Operating income                         51,884     (31,497)   20,387

Other income (expense)
     Interest expense                   (10,843)      4,678    (6,165)
     Derivatives                         (4,455)     10,730     6,275
     Equity earnings in PVG and PVR           -       7,380     7,380
     Other                                  576        (426)      150
                                       --------- ----------- ---------

Income before minority interest and
 income taxes                            37,162      (9,135)   28,027

     Minority interest                    9,135      (9,135)        -
     Income tax expense                  10,913           -    10,913
                                       --------- ----------- ---------

Net income                             $ 17,114  $        -   $17,114
                                       ========= =========== =========


                                       Nine Months Ended September 30,
                                                     2008
                                       -------------------------------
                                          As                    As
                                        Reported Adjustments  Adjusted
                                       --------- ----------- ---------
Revenues
     Natural gas                       $295,636  $        -  $295,636
     Crude oil                           37,442           -    37,442
     NGLs                                18,887           -    18,887
     Natural gas midstream              494,260    (494,260)        -
     Coal royalties                      88,911     (88,911)        -
     Gain on the sale of property and
      equipment                          31,335        (792)   30,543
     Other                               28,690     (27,765)      925
                                       --------- ----------- ---------
        Total revenues                  995,161    (611,728)  383,433
                                       --------- ----------- ---------
Expenses
     Cost of midstream gas purchased    408,247    (408,247)        -
     Operating                           66,653     (23,217)   43,436
     Exploration                         19,765           -    19,765
     Taxes other than income             23,325      (3,017)   20,308
     General and administrative          55,006     (22,057)   32,949
     Impairment of oil and gas
      properties                              -           -         -
     Depreciation, depletion and
      amortization                      133,481     (41,322)   92,159
                                       --------- ----------- ---------
        Total expenses                  706,477    (497,860)  208,617
                                       --------- ----------- ---------

Operating income                        288,684    (113,868)  174,816

Other income (expense)
     Interest expense                   (31,600)     17,366   (14,234)
     Derivatives                         (4,387)      6,424     2,037
     Equity earnings in PVG and PVR           -      34,754    34,754
     Other                                 (782)      3,072     2,290
                                       --------- ----------- ---------

Income before minority interest and
 income taxes                           251,915     (52,252)  199,663

     Minority interest                   52,252     (52,252)        -
     Income tax expense                  75,792           -    75,792
                                       --------- ----------- ---------

Net income                             $123,871  $        -  $123,871
                                       ========= =========== =========

                                       Nine Months Ended September 30
                                                     2007
                                       -------------------------------
                                          As                    As
                                        Reported Adjustments  Adjusted
                                       --------- ----------- ---------
Revenues
     Natural gas                       $193,961  $        -  $193,961
     Crude oil                           14,985           -    14,985
     NGLs                                 3,458           -     3,458
     Natural gas midstream              310,095    (310,095)        -
     Coal royalties                      73,455     (73,455)        -
     Gain on the sale of property and
      equipment                          12,436        (197)   12,239
     Other                               16,036     (14,801)    1,235
                                       --------- ----------- ---------
        Total revenues                  624,426    (398,548)  225,878
                                       --------- ----------- ---------
Expenses
     Cost of midstream gas purchased    251,000    (251,000)        -
     Operating                           47,557     (16,235)   31,322
     Exploration                         23,610           -    23,610
     Taxes other than income             15,995      (2,116)   13,879
     General and administrative          46,539     (18,686)   27,853
     Impairment of oil and gas
      properties                          2,405           -     2,405
     Depreciation, depletion and
      amortization                       89,823     (30,600)   59,223
                                       --------- ----------- ---------
        Total expenses                  476,929    (318,637)  158,292
                                       --------- ----------- ---------

Operating income                        147,497     (79,911)   67,586

Other income (expense)
     Interest expense                   (25,878)     11,842   (14,036)
     Derivatives                        (22,068)     20,927    (1,141)
     Equity earnings in PVG and PVR           -      20,728    20,728
     Other                                2,536      (1,245)    1,291
                                       --------- ----------- ---------

Income before minority interest and
 income taxes                           102,087     (27,659)   74,428

     Minority interest                   27,659     (27,659)        -
     Income tax expense                  29,033           -    29,033
                                       --------- ----------- ---------

Net income                             $ 45,395  $        -  $ 45,395
                                       ========= =========== =========

(a) - 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 we do not own. PVA's management believes equity method income statements provide useful information to allow the public to more easily discern PVG's effect on PVA's operations.


                      PENN VIRGINIA CORPORATION
     CONVERSION TO NON-GAAP EQUITY METHOD - unaudited (continued)
                            (in thousands)

Reconciliation of GAAP "Balance Sheet As Reported" to Non-GAAP
 "Balance Sheet As Adjusted" (a):
----------------------------------------------------------------------


                                           September 30 2008
                                  ------------------------------------
                                  As Reported Adjustments  As Adjusted
                                  ----------- ------------ -----------
Assets
     Current assets               $  251,173  $  (120,653) $  130,520
     Net property and equipment    2,399,454     (884,737)  1,514,717
     Equity investment in PVG and
      PVR                                  -      228,615     228,615
     Other assets                    259,994     (242,046)     17,948
                                  ----------- ------------ -----------
          Total assets            $2,910,621  $(1,018,821) $1,891,800
                                  =========== ============ ===========

Liabilities and shareholders'
 equity
     Current liabilities          $  285,490  $  (116,981) $  168,509
     Long-term debt of PVA           410,000            -     410,000
     Long-term debt of PVR           558,100     (558,100)          -
     Other liabilities and
      deferred taxes                 327,075      (34,549)    292,526
     Minority interests of
      subsidiaries                   309,191     (309,191)          -
     Shareholders' equity          1,020,765            -   1,020,765
                                  ----------- ------------ -----------
          Total liabilities and
           shareholders' equity   $2,910,621  $(1,018,821) $1,891,800
                                  =========== ============ ===========



                                           December 31, 2007
                                  ------------------------------------
                                  As Reported  Adjustments As Adjusted
                                  ------------ ----------- -----------
Assets
     Current assets               $   244,072  $ (114,707) $  129,365
     Net property and equipment     1,899,014    (731,282)  1,167,732
     Equity investment in PVG and
      PVR                                   -     202,297     202,297
     Other assets                     110,375     (96,262)     14,113
                                  ------------ ----------- -----------
          Total assets            $ 2,253,461  $ (739,954) $1,513,507
                                  ============ =========== ===========

Liabilities and shareholders'
 equity
     Current liabilities          $   261,899  $ (133,918) $  127,981
     Long-term debt of PVA            352,000           -     352,000
     Long-term debt of PVR            399,153    (399,153)          -
     Other liabilities and
      deferred taxes                  251,149     (27,721)    223,428
     Minority interests of
      subsidiaries                    179,162    (179,162)          -
     Shareholders' equity             810,098           -     810,098
                                  ------------ ----------- -----------
          Total liabilities and
           shareholders' equity   $ 2,253,461  $ (739,954) $1,513,507
                                  ============ =========== ===========


Reconciliation of GAAP "Statement of Cash Flows As Reported" to Non-
 GAAP "Statement of Cash Flows As Adjusted" (b):
----------------------------------------------------------------------


                                     Three Months Ended September 30
                                                    2008
                                     ---------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                     ---------- ----------- ----------
Cash flows from operating activities
     Net income                      $ 123,738  $        -  $ 123,738
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      49,978     (16,903)    33,075
     Derivative contracts:
       Total derivative losses
        (gains)                       (123,628)     14,239   (109,389)
       Cash settlements of
        derivatives                    (19,755)     14,054     (5,701)
     Minority interest                  28,276     (28,276)         -
     Investment in PVG and PVR               -     (15,771)   (15,771)
     Gain on the sale of property
      and equipment                    (31,279)          -    (31,279)
     Impairment of oil and gas
      properties                             -           -          -
     Cash distributions from PVG and
      PVR                                    -      10,967     10,967
     Other                              70,192       1,130     71,322
                                     ---------- ----------- ----------
     Operating cash flow                97,522     (20,560)    76,962
     Changes in operating assets and
      liabilities                       (5,727)     10,853      5,126
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) operating activities      91,795      (9,707)    82,088
                                     ---------- ----------- ----------

Cash flows from investing activities
     Acquisitions                     (162,078)    156,791     (5,287)
         Additions to property and
          equipment                   (162,857)     16,062   (146,795)
         Other                          33,215        (982)    32,233
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) investing activities    (291,720)    171,871   (119,849)
                                     ---------- ----------- ----------

Cash flows from financing activities
     Dividends paid                     (2,351)          -     (2,351)
     Distributions paid to minority
      interest holders                 (17,917)     17,917          -
     Borrowings from bank
      indebtedness                      46,431           -     46,431
     Net proceeds from (repayments
      of) PVA borrowings               (25,000)          -    (25,000)
     Net proceeds from (repayments
      of) PVR borrowings               176,600    (176,600)         -
     Other                              (2,311)      3,454      1,143
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) financing activities     175,452    (155,229)    20,223
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                      (24,473)      6,935    (17,538)
Cash and cash equivalents-beginning
 balance                                43,480     (25,942)    17,538
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  19,007  $  (19,007) $       -
                                     ========== =========== ==========



                                     Three Months Ended September 30
                                                    2007
                                     ---------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                     ---------- ----------- ----------
Cash flows from operating activities
     Net income                      $  17,114  $        -  $  17,114
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      33,207     (10,645)    22,562
     Derivative contracts:
       Total derivative losses
        (gains)                          6,053     (12,034)    (5,981)
       Cash settlements of
        derivatives                        586       4,702      5,288
     Minority interest                   9,135      (9,135)         -
     Investment in PVG and PVR               -      (7,380)    (7,380)
     Gain on the sale of property
      and equipment                    (12,312)          -    (12,312)
     Impairment of oil and gas
      properties                         2,405           -      2,405
     Cash distributions from PVG and
      PVR                                    -       9,142      9,142
     Other                              22,732          89     22,821
                                     ---------- ----------- ----------
     Operating cash flow                78,920     (25,261)    53,659
     Changes in operating assets and
      liabilities                       (2,736)      5,366      2,630
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) operating activities      76,184     (19,895)    56,289
                                     ---------- ----------- ----------

Cash flows from investing activities
     Acquisitions                     (162,794)     93,423    (69,371)
         Additions to property and
          equipment                   (109,685)     10,781    (98,904)
         Other                          29,142           -     29,142
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) investing activities    (243,337)    104,204   (139,133)
                                     ---------- ----------- ----------

Cash flows from financing activities
     Dividends paid                     (2,130)          -     (2,130)
     Distributions paid to minority
      interest holders                 (12,937)     12,937          -
     Borrowings from bank
      indebtedness                           -           -          -
     Net proceeds from (repayments
      of) PVA borrowings                86,000           -     86,000
     Net proceeds from (repayments
      of) PVR borrowings                89,000     (89,000)         -
     Other                                (188)          -       (188)
                                     ---------- ----------- ----------
         Net cash provided by (used
          in) financing activities     159,745     (76,063)    83,682
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                       (7,408)      8,246        838
Cash and cash equivalents-beginning
 balance                                22,211     (22,211)         -
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  14,803  $  (13,965) $     838
                                     ========== =========== ==========



                                      Nine Months Ended September 30
                                                    2008
                                     ---------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                     ---------- ----------- ----------
Cash flows from operating activities
     Net income                      $ 123,871   $       -  $ 123,871
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                     133,481     (41,322)    92,159
     Derivative contracts:
       Total derivative losses
        (gains)                          8,516     (10,552)    (2,036)
       Cash settlements of
        derivatives                    (46,740)     33,279    (13,461)
     Minority interest                  52,252     (52,252)         -
     Investment in PVG and PVR               -     (34,754)   (34,754)
     Gain on the sale of property
      and equipment                    (31,335)          -    (31,335)
     Impairment of oil and gas
      properties                             -           -          -
     Cash distributions from PVG and
      PVR                                    -      32,447     32,447
     Other                              78,041       1,209     79,250
                                     ---------- ----------- ----------
     Operating cash flow               318,086     (71,945)   246,141
     Changes in operating assets and
      liabilities                      (41,399)     11,277    (30,122)
                                     ---------- ----------- ----------
         Net cash provided by
          operating activities         276,687     (60,668)   216,019
                                     ---------- ----------- ----------

Cash flows from investing activities
     Acquisitions                     (278,185)    253,031    (25,154)
        Additions to property and
         equipment                    (392,031)     54,902   (337,129)
        Other                           33,954      (1,657)    32,297
                                     ---------- ----------- ----------
         Net cash used in investing
          activities                  (636,262)    306,276   (329,986)
                                     ---------- ----------- ----------

Cash flows from financing activities
     Dividends paid                     (7,037)          -     (7,037)
     Distributions paid to minority
      interest holders                 (45,829)     45,829          -
     Borrowings from bank
      indebtedness                      46,431                 46,431
     Net proceeds from PVA
      borrowings                        58,000           -     58,000
     Net proceeds from (repayments
      of) PVR borrowings               146,000    (146,000)         -
     Net proceeds from issuance of
      PVR partners' capital            138,015    (138,015)         -
     Other                               8,475       4,074     12,549
                                     ---------- ----------- ----------
         Net cash provided by
          financing activities         344,055    (234,112)   109,943
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                      (15,520)     11,496     (4,024)
Cash and cash equivalents-beginning
 balance                                34,527     (30,503)     4,024
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  19,007   $ (19,007) $       -
                                     ========== =========== ==========


                                      Nine Months Ended September 30
                                                    2007
                                     ---------------------------------
                                        As                     As
                                      Reported  Adjustments  Adjusted
                                     ---------- ----------- ----------
Cash flows from operating activities
     Net income                      $  45,395   $       -  $  45,395
     Adjustments to reconcile net
      income to net cash provided by
      operating activities:
     Depreciation, depletion and
      amortization                      89,823     (30,600)    59,223
     Derivative contracts:
       Total derivative losses
        (gains)                         25,569     (24,359)     1,210
       Cash settlements of
        derivatives                      2,281       8,963     11,244
     Minority interest                  27,659     (27,659)         -
     Investment in PVG and PVR               -     (20,728)   (20,728)
     Gain on the sale of property
      and equipment                    (12,436)          -    (12,436)
     Impairment of oil and gas
      properties                         2,405           -      2,405
     Cash distributions from PVG and
      PVR                                    -      20,051     20,051
     Other                              45,526         837     46,363
                                     ---------- ----------- ----------
     Operating cash flow               226,222     (73,495)   152,727
     Changes in operating assets and
      liabilities                      (17,241)      8,338     (8,903)
                                     ---------- ----------- ----------
         Net cash provided by
          operating activities         208,981     (65,157)   143,824
                                     ---------- ----------- ----------

Cash flows from investing activities
     Acquisitions                     (239,018)    145,879    (93,139)
        Additions to property and
         equipment                    (308,987)     29,655   (279,332)
        Other                           29,385        (197)    29,188
                                     ---------- ----------- ----------
         Net cash used in investing
          activities                  (518,620)    175,337   (343,283)
                                     ---------- ----------- ----------

Cash flows from financing activities
     Dividends paid                     (6,370)          -     (6,370)
     Distributions paid to minority
      interest holders                 (36,402)     36,402          -
     Borrowings from bank
      indebtedness                           -           -          -
     Net proceeds from PVA
      borrowings                       193,500           -    193,500
     Net proceeds from (repayments
      of) PVR borrowings               146,000    (146,000)         -
     Net proceeds from issuance of
      PVR partners' capital                  -           -          -
     Other                               7,376        (860)     6,516
                                     ---------- ----------- ----------
         Net cash provided by
          financing activities         304,104    (110,458)   193,646
                                     ---------- ----------- ----------

Net increase (decrease) in cash and
 cash equivalents                       (5,535)       (278)    (5,813)
Cash and cash equivalents-beginning
 balance                                20,338     (13,687)     6,651
                                     ---------- ----------- ----------
Cash and cash equivalents-ending
 balance                             $  14,803   $ (13,965) $     838
                                     ========== =========== ==========

(a) - 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's management believes equity method balance sheets provide useful information to allow the public to more easily discern PVG's effect on PVA's assets, liabilities and shareholders' equity.

(b) - 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's management believes equity method statements of cash flows provide useful information to allow the public to more easily discern PVG's effect on PVA's cash flows.


                      PENN VIRGINIA CORPORATION
                      GUIDANCE TABLE - unaudited
               (dollars in millions except where noted)

PVA is providing the following guidance regarding financial and
 operational expectations for 2008.

                                  Actual
                     ---------------------------------
                      First    Second   Third
                      Quarter  Quarter  Quarter  YTD      Full-Year
                       2008     2008     2008    2008   2008 Guidance
                     -------- -------- -------- ------ ---------------
Oil & Gas Segment:
-------------------
  Production:
    Natural gas
     (Bcf) (a)         9.7     10.1     10.0     29.8   41.0  -  41.7
    Crude oil
     (MBbls)            95      119      117    331.0  500.0  - 525.0
    NGLs (MBbls)        34      109      157    300.0  425.0  - 450.0
      Equivalent
       production
       (Bcfe)         10.6     11.4     11.7     33.7   46.5  -  47.5
      Equivalent
       daily
       production
       (MMcfe per
       day)          115.6    125.7    127.2    123.0  127.0  - 129.8

  Expenses:
    Cash operating
     expenses ($
     per Mcfe)      $ 2.34     2.30     2.29     2.31   2.20  -  2.30
    Exploration     $  4.8      6.7      8.3     19.8   26.0  -  28.0
    Depreciation,
     depletion and
     amortization
     ($ per Mcfe)   $ 2.53     2.76     2.79     2.70   2.70  -  2.80

  Capital
   expenditures:
    Development
     drilling       $ 79.1     96.1    145.6    320.8  420.0  - 425.0
    Exploratory
     drilling       $  5.4      6.1      6.6     18.1   28.0  -  36.0
    Pipeline,
     gathering,
     facilities     $  4.9      8.8     14.3     28.0   45.0  -  50.0
    Seismic         $  0.7      0.3      1.7      2.7    8.0  -   9.0
    Lease
     acquisition,
     field projects
     and other      $  4.6     15.1     67.7     87.4   89.0  -  90.0
      Total
       segment
       capital
       expenditures $ 94.7    126.4    235.9    457.0  590.0  - 610.0

Coal and Natural
 Resource Segment
 (PVR):
-------------------
  Coal royalty tons
   (millions)          7.7      8.8      8.5     25.0   33.0  -  33.5

  Revenues:
    Average coal
     royalties per
     ton            $ 3.14     3.58     3.92     3.56   3.55  -  3.65
    Other           $  6.3      7.4      8.4     22.1   27.0  -  28.0

  Expenses:
    Cash operating
     expenses       $  6.3      7.5      6.6     20.4   25.5  -  26.5
    Depreciation,
     depletion and
     amortization   $  6.4      7.5      8.8     22.7   30.0  -  31.0

  Capital
   expenditures:
    Expansion and
     acquisitions   $  0.1     24.6      0.5     25.2   27.0  -  28.0
    Maintenance
     capital
     expenditures   $    -        -        -        -    0.2  -   0.3
      Total segment
       capital
       expenditures $  0.1     24.6      0.5     25.2   27.2  -  28.3

Natural Gas
 Midstream Segment
 (PVR):
-------------------
  System throughput
   volumes (MMcf
   per day) (b)        190      262      302      252    270  -   280

  Expenses:
    Cash operating
     expenses       $  8.1      8.9     10.5     27.5   37.0  -  39.0
    Depreciation,
     depletion and
     amortization   $  5.1      5.4      8.1     18.6   24.0  -  25.5

  Capital
   expenditures:
    Expansion and
     acquisitions   $ 16.4     86.3    196.6    299.3  325.0  - 335.0
    Maintenance
     capital
     expenditures   $  3.1      3.9      3.8     10.8   14.0  -  15.0
      Total segment
       capital
       expenditures $ 19.5     90.2    200.4    310.1  339.0  - 350.0

Corporate and
 Other:
-------------------
  General and
   administrative
   expense - PVA
   (c)              $  5.9      6.6      5.6     18.1   24.0  -  25.0
  General and
   administrative
   expense - PVG
   (c)              $  0.6      0.6      0.5      1.7    2.3  -   2.5
  Interest expense:
    PVA average
     long-term debt
     outstanding    $374.5    417.5    424.3    402.4  430.0  - 440.0
    PVA interest
     rate              5.0%     4.1%     4.1%     4.3%   4.3% -   4.5%
      Percentage
       capitalized
       (d)            11.0%    11.4%    10.7%    11.1%  10.5% -  11.5%
    PVR average
     long-term debt
     outstanding    $412.5    411.8    510.1    454.3  485.0  - 495.0
    PVR interest
     rate assumed      5.3%     4.4%     4.5%     4.6%   4.6% -   4.8%

  Minority interest
   in PVG and PVR   $ 20.0      3.9     28.3     52.2        (e)
  Income tax rate       44%      64%      39%      38%       (f)
  Cash
   distributions
   received from
   PVG and PVR      $ 10.4     10.9     10.9     32.2        (g)
  Other capital
   expenditures     $  0.3      0.2      0.7      1.2    1.0      1.5


These estimates are meant to provide guidance only and are subject to
 change as PVA's and PVR's operating environments change.

See Notes on subsequent pages.

                      PENN VIRGINIA CORPORATION
               GUIDANCE TABLE - unaudited - (continued)
               (dollars in millions except where noted)

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

(a) The following table shows PVA's current derivative positions for
     natural gas production in the oil and gas segment as of September
     30, 2008:

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

Natural gas costless       (in MMBtu)            (per MMBtu)
 collars
Fourth quarter 2008 (1)          10,000                $  7.50 $  9.10

Natural gas three-way      (in MMBtu)            (per MMBtu)
 collars (2)
Fourth quarter 2008              67,500 $         5.89 $  8.55 $ 11.26
First quarter 2009               65,000 $         6.00 $  8.67 $ 11.68
Second quarter 2009              40,000 $         6.38 $  8.75 $ 10.79
Third quarter 2009               40,000 $         6.38 $  8.75 $ 10.79
Fourth quarter 2009              30,000 $         6.83 $  9.50 $ 13.60
First quarter 2010               30,000 $         6.83 $  9.50 $ 13.60

Natural gas basis swaps    (in MMBtu)            (per MMBtu)
Fourth quarter 2008              15,000                $  0.39

Crude oil three-way       (in barrels)           (per barrel)
 collars (2)
Fourth quarter 2008                 500 $        80.00 $110.00 $179.00
First quarter 2009                  500 $        80.00 $110.00 $179.00
Second quarter 2009                 500 $        80.00 $110.00 $179.00
Third quarter 2009                  500 $        80.00 $110.00 $179.00
Fourth quarter 2009                 500 $        80.00 $110.00 $179.00

Management estimates that, excluding the derivative positions
 described above, for every $1.00 per MMBtu increase or decrease in
 the natural gas price, oil and gas segment operating income for the
 last three months of 2008 would increase or decrease by approximately
 $11.6 million. In addition, management estimates that for every $5.00
 per barrel increase or decrease in the oil price, oil and gas segment
 operating income would increase or decrease by approximately $1.3
 million. This assumes that crude oil prices, natural gas prices and
 inlet volumes remain constant at forecasted levels. These estimated
 changes in oil and gas segment operating income exclude the potential
 cash receipts or payments in settling these derivative positions.

(1) This position expires in October 2008.
(2) A three-way collar is a combination of options: a sold call, a
 purchased put and a sold put. The sold call establishes the maximum
 price that the Company will receive for the contracted commodity
 volumes. The purchased put establishes the minimum price that the
 Company will receive for the contracted volumes unless the market
 price for the commodity falls below the sold put strike price, at
 which point the minimum price equals the reference price (i.e.,
 NYMEX) plus the excess of the purchased put strike price over the
 sold put strike price.

                      PENN VIRGINIA CORPORATION
               GUIDANCE TABLE - unaudited - (continued)
               (dollars in millions except where noted)

(b) The costless collar natural gas prices per MMBtu per quarter
     include the effects of basis differentials, if any. The following
     table shows current derivative positions for natural gas
     production in PVR's natural gas midstream segment as of September
     30, 2008:

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

Frac spread      (in MMBtu)     (per
                               MMBtu)
Fourth quarter
 2008                 7,824 $    5.02

Ethane sale    (in gallons)     (per
 swap                         gallon)
Fourth quarter
 2008                34,440 $  0.4700

Propane sale   (in gallons)     (per
 swaps                        gallon)
Fourth quarter
 2008                26,040 $  0.7175

Crude oil sale (in barrels)     (per
 swaps                        barrel)
Fourth quarter
 2008                   560 $   49.27

Natural        (in gallons)                             (per gallon)
 gasoline
 collar
Fourth quarter
 2008                 6,300                            $1.4800 $1.6465

Crude oil      (in barrels)                             (per barrel)
 collar
Fourth quarter
 2008                   400                            $ 65.00 $ 75.25

Natural gas      (in MMBtu)     (per
 sale swaps                    MMBtu)
Fourth quarter
 2008                 4,000 $    6.97

Crude oil      (in barrels)                             (per barrel)
 three-way
 collar (1)
First quarter
 2009 through
 fourth
 quarter 2009         1,000           $          70.00 $ 90.00 $119.25

Frac spread      (in MMBtu)                              (per MMBtu)
 collar
First quarter
 2009 through
 fourth
 quarter 2009         6,000                            $  9.09 $ 13.94

    Management estimates that, excluding the derivative positions
     described above, for every $1.00 per MMBtu decrease or increase
     in the natural gas price, natural gas midstream gross margin and
     operating income for the last three months of 2008 would increase
     or decrease by approximately $1.4 million. In addition,
     management estimates that for every $5.00 per barrel increase or
     decrease in the oil price, natural gas midstream gross margin and
     operating income would increase or decrease by approximately $1.8
     million. This assumes that crude oil prices, natural gas prices
     and inlet volumes remain constant at forecasted levels. These
     estimated changes in gross margin and operating income exclude
     potential cash receipts or payments in settling these derivative
     positions.

    (1) A three-way collar is a combination of options: a sold call, a
     purchased put and a sold put. The sold call establishes the
     maximum price that PVA or PVR will receive for the contracted
     commodity volumes. The purchased put establishes the minimum
     price that PVA or PVR will receive for the contracted volumes
     unless the market price for the commodity falls below the sold
     put strike price, at which point the minimum price equals the
     reference price (i.e., NYMEX) plus the excess of the purchased
     put strike price over the sold put strike price.

(c) Year-to-date 2008 results and full-year 2008 guidance reflect
     increased incentive compensation costs in general and
     administrative expense.

(d) PVA capitalizes a portion of interest expense incurred to
     recognize the carrying cost of certain unproved properties as
     required by GAAP.

(e) PVA controls the general partner of PVG and owns a 77 percent
     limited partner interest in PVG. PVG's operating results are
     included in PVA's consolidated financial statements and minority
     interest reflected the 23 percent of PVG owned by parties other
     than PVA.

(f) Deferred federal and state income taxes are expected to comprise
     approximately 65% to 75% of PVA's income tax expense for the full
     year.

(g) 2008 amounts received are dependent primarily upon distributions
     paid by PVG.

Source: Penn Virginia Corporation