Penn Virginia Corporation Announces Second Quarter 2009 Results

RADNOR, Pa.-- Penn Virginia Corporation (NYSE:PVA) today reported financial and operational results for the three months ended June 30, 2009 and provided an update of full-year 2009 guidance.

Second Quarter 2009 Highlights

Second quarter 2009 results, with comparisons to second quarter 2008 results, included the following:

    --  Quarterly oil and gas production of 148.9 million cubic feet of natural
        gas equivalent (MMcfe) per day, or 13.6 billion cubic feet of natural
        gas equivalent (Bcfe), an 18 percent increase as compared to oil and gas
        production of 125.7 MMcfe per day, or 11.4 Bcfe;
    --  Operating cash flow, a non-GAAP (generally accepted accounting
        principles) measure, of $68.7 million as compared to record operating
        cash flow of $136.0 million in the prior year quarter;
    --  Adjusted net loss, a non-GAAP measure which excludes the effects of the
        non-cash change in derivatives fair value, drilling rig standby charges
        and impairments that affect comparability to the prior year period, of
        $6.0 million, or $0.14 per diluted share, as compared to record adjusted
        net income of $48.7 million, or $1.17 per diluted share, in the prior
        year quarter; and
    --  Net loss of $22.2 million, or $0.52 per diluted share, as compared to
        net loss of $4.5 million, or $0.11 per diluted share.

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

Management Comment

A. James Dearlove, President and Chief Executive Officer, said, "Although declines in commodity prices impacted our financial results, we are pleased with our second quarter 2009 operational results. As detailed in our July 27 operational update, weak natural gas prices have caused us to curtail our drilling activity substantially. However, as a result of strong performance from 2008 and early 2009 drilling in our Granite Wash, Lower Bossier (Haynesville) Shale and Selma Chalk core plays, our second quarter production levels were only two percent lower than the record production achieved in the first quarter of 2009. As a result of our strong second quarter and first half results, we have kept our production guidance unchanged, with slight year-over-year production growth in 2009.

"Our commodity price hedges provided cash flow protection, increasing second quarter effective price realizations from $3.49 per Mcf to $4.78 pre Mcf for natural gas and from $55.00 per barrel to $61.42 per barrel for oil. For the second half of 2009, we have hedged approximately 85 percent of our estimated natural gas production at average respective floor and ceiling prices of $6.42 and $7.79 per million British thermal units (MMBtu), and 70 percent of our estimated crude oil production at average floor and ceiling prices of approximately $80 and $120 per barrel. For 2010, we have hedged approximately 60 percent of our estimated natural gas production at average respective floor and ceiling prices of $6.09 and $8.19 per MMBtu, and 35 percent of our estimated crude oil production at average respective floor and ceiling prices of approximately $60 and $75 per barrel. In addition to the cash flow support our hedges have provided, our unit cash costs have continued to improve, including a 22 percent reduction from the prior year quarter and in line with the first quarter of 2009.

"During the second quarter of 2009, we raised approximately $365 million of capital, including $300 million of senior notes due 2016 and $65 million of common equity. As a result, we have substantially improved our financial liquidity, with almost $300 million of unused availability on our revolving credit facility. We are now positioned to exploit our ample inventory of drilling locations for growth in the coming years from both existing and new plays as natural gas prices improve.

"In addition to our core oil and gas exploration and production business segment, we own 77 percent of Penn Virginia GP Holdings, L.P. (NYSE:PVG) and PVG owns the general partner of Penn Virginia Resource Partners, L.P. (NYSE:PVR) and is PVR's largest limited partner unitholder. As the owner of the general partner and largest unitholder of PVG, we report our financial results on a consolidated basis with the financial results of PVG. At current distribution rates, our ownership of PVG and PVR provides approximately $46 million of annualized pre-tax cash flow to us, which we re-deploy into our oil and gas segment. In the second quarter of 2009, PVR's coal and natural resource management segment (PVR Coal & Natural Resource Management) reported relatively stable coal royalties revenue and contributions to cash flows, with one percent lower lessee coal production and slightly higher average net coal royalties per ton than the prior year quarter. During the second quarter, PVR's natural gas midstream segment (PVR Midstream) recorded throughput volumes 31 percent higher than the prior year quarter, while the midstream gross margin, adjusted for the cash impact of hedges, was two percent higher."

Oil and Gas Segment Review

Second quarter oil and gas production grew 18 percent to 148.9 MMcfe per day, or 13.6 Bcfe, from 125.7 MMcfe per day, or 11.4 Bcfe, in the second quarter of 2008, and was two percent lower than the quarterly record of 152.3 MMcfe per day, or 13.7 Bcfe in the first quarter of 2009. See our separate operational update news release dated July 27, 2009 for a more detailed discussion of second quarter 2009 drilling and production operations for the oil and gas segment.

During the second quarter of 2009, oil and gas segment operating income decreased by $100.4 million as compared to the prior year quarter to an operating loss of $30.7 million. The decrease was due to a $78.6 million, or 58 percent, decrease in revenues and a $21.8 million, or 34 percent, increase in total operating expenses. The decrease in revenues was due to sharp declines in realized commodity prices before considering support from related hedges - a 69 percent decrease in the natural gas price and a 55 percent decrease in the oil price - offset in part by an 18 percent increase in oil and gas production. The increase in operating expenses was primarily due to the production increase, $6.7 million of rig standby charges, $6.3 million of increased amortization of unproved properties included in exploration expense, a $8.3 million increase in depreciation, depletion and amortization (DD&A) expense and $3.3 million of impairments, offset in part by a $3.3 million decrease in taxes other than income as a result of the decrease in commodity prices.

In the second quarter of 2009, total oil and gas segment expenses, excluding the rig standby and impairment charges, increased by $10.2 million, or 16 percent, to $74.9 million, or $5.52 per Mcfe produced, from $64.6 million, or $5.65 per Mcfe produced, in the second quarter of 2008, as discussed below:

    --  Second quarter 2009 cash operating expenses of $24.2 million, or $1.79
        per Mcfe produced, were $2.1 million, or eight percent, lower than the
        $26.3 million, or $2.30 per Mcfe produced, in the second quarter of
        2008. The decrease in unit cash operating expenses was primarily due to
        lower taxes other than income and lower lease operating expense, as
        discussed below:
        o Lease operating expense decreased to $1.09 per Mcfe from $1.23 per
          Mcfe primarily due to decreased overall service costs due to sharply
          lower commodity prices and reduced water disposal and other costs as
          compared to the prior year quarter;
        o Taxes other than income decreased to $0.28 per Mcfe from $0.62 per
          Mcfe primarily due to decreased severance taxes related to sharply
          lower commodity prices; and
        o Segment general and administrative (G&A) expense decreased to $0.42
          per Mcfe as compared to $0.45 per Mcfe primarily due to the production
          increase.

    --  Exploration expense, excluding drilling rig standby charges discussed
        below, increased to $10.7 million in the second quarter of 2009, as
        compared to $6.7 million in the prior year quarter, primarily due to
        $6.3 million of increased amortization of unproved properties related to
        higher leasehold acquisition costs in our East Texas, Mid-Continent and
        Gulf Coast regions.
    --  DD&A expense increased by $8.3 million, or 26 percent, to $39.9 million,
        or $2.94 per Mcfe, in the second quarter of 2009 from $31.6 million, or
        $2.76 per Mcfe, in the prior year quarter. The overall increase in DD&A
        expense was primarily due to the production increase, as well as the
        higher depletion rate per unit of production a result of higher drilling
        costs and leasehold acquisitions.

In the first quarter of 2009, we opted to defer the drilling of wells in several of our plays due to unfavorable economic conditions. As a result, we amended certain drilling rig contracts to delay commencement of drilling until January 2010. In the second quarter of 2009, we expensed approximately $6.7 million for lump sum delay fees, minimum daily standby fees and demobilization fees expected to be paid during the standby period. We will evaluate economic conditions through the remainder of 2009 to determine whether to continue to defer drilling. This decision could result in additional standby expense of up to approximately $8.0 million during the second half of 2009.

During the second quarter of 2009, we incurred approximately $3.3 million of impairments. These charges were primarily related to the write-down in value of certain field pipe inventories. In addition, during the second quarter we recorded a loss on the sale of assets of $1.6 million related to the sales of inventory and an oil and gas property.

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

As the owner of the general partner and largest unitholder of PVG, we report our 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. We believe 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. Financial and operational results and full-year 2009 guidance for each of PVR's 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 August 5, 2009. Please visit PVR's website, www.pvresource.com, under "For Investors" for a copy of the release.

Operating income for PVR Coal & Natural Resource Management decreased by $3.7 million, or 15 percent, to $20.3 million in the second quarter of 2009. The decrease was primarily due to a six percent decrease in revenues, net of coal royalties expense, primarily due to decreases in oil and gas royalties, timber and other revenues, as well as an increase in G&A expense. Coal royalties revenue, net of coal royalties expense, was relatively flat as compared to the prior year quarter. Operating income for PVR Midstream, adjusted for the cash impact of derivatives, decreased by $7.7 million from $12.1 million in the second quarter of 2008 to $4.4 million in the second quarter of 2009. This decrease was primarily due to lower other revenues and increased operating and G&A expenses, offset in part by a two percent increase in midstream gross margin, adjusted for the cash impact of derivatives. As of June 30, 2009, PVR had outstanding borrowings of $597.1 million under its $800 million revolving credit facility with unused availability of approximately $200 million.

As previously announced, on August 20, 2009, PVG will pay to unitholders of record as of August 3, 2009 a quarterly cash distribution of $0.38 per unit, or an annualized rate of $1.52 per unit, covering the period of April 1 through June 30, 2009. On an annualized basis, this represents a six percent increase over the annualized distribution of $1.44 per unit with respect to the same quarter of 2008 and is unchanged from the distribution paid with respect to each of the previous three quarters. As a result of PVG's distribution, we will receive a cash distribution of $11.4 million in the third quarter of 2009, which would be $45.7 million on an annualized basis.

Guidance for 2009

See the Guidance Table included in this release for guidance estimates for full-year 2009. These estimates, including capital expenditure plans, which were discussed in our July 27 operational update, are meant to provide guidance only and are subject to revision as our and PVR's operating environments change.

Second Quarter 2009 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss second quarter 2009 financial and operational results, is scheduled for Thursday, August 6, 2009 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 our 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 August 20, 2009 at 11:59 p.m. ET by dialing 1-877-660-6853 and using the following replay pass codes: account #286, conference ID #327743. An on-demand replay of the conference call will be available at our website beginning shortly after the call.

Penn Virginia Corporation (NYSE:PVA) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of reserves in onshore regions of the U.S., including the East Texas, Mississippi, the Mid-Continent region, the Appalachian Basin and the Gulf Coast of Louisiana and Texas. We also own approximately 77 percent of PVG, the owner of the general partner and the largest unit holder of 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 access external sources of capital; uncertainties relating to the occurrence and success of capital-raising transactions, including securities offerings and asset sales; reductions in the borrowing base under our Revolver; our ability to develop and replace oil and gas reserves and the price for which such reserves can be acquired; any impairment writedowns of our reserves or assets; reductions in our anticipated capital expenditures; the relationship between natural gas, NGL, crude 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 differ 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); 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; uncertainties relating to our continued ownership of interests in PVG and PVR; and other risks set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008.

Additional information concerning these and other factors can be found in our press releases and public periodic filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2008. 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 a 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         Six Months Ended

                            June 30,                   June 30,

                            2009         2008 (a)      2009         2008 (a)

Revenues

Natural gas                 $ 39,830     $ 113,212     $ 92,651     $ 193,725

Crude oil                     11,825       14,463        18,153       23,678

Natural gas liquids (NGLs)    4,336        6,538         7,706        8,406

Natural gas midstream         91,655       184,298       186,861      309,346

Coal royalties                29,997       31,641        60,627       55,603

Other                         6,274        10,262        17,079       18,791

Total revenues                183,917      360,414       383,077      609,549

Expenses

Cost of midstream gas         71,933       152,986       151,331      252,683
purchased

Operating                     22,648       22,214        45,350       43,216

Exploration                   10,733       6,739         22,181       11,419

Exploration - drilling rig    6,739        -             16,603       -
standby charges (b)

Taxes other than income       4,930        8,259         11,362       15,654

General and administrative
(excluding equity             16,565       16,987        31,659       33,088
compensation)

Equity-based compensation     3,790        2,071         7,182        3,629
(c)

Depreciation, depletion       58,218       44,934        115,291      83,503
and amortization

Impairments                   3,279        -             4,475        -

Loss on sale of assets        1,599        -             1,599        -

Total expenses                200,434      254,190       407,033      443,192

Operating income (loss)       (16,517 )    106,224       (23,956 )    166,357

Other income (expense)

Interest expense              (15,046 )    (11,345  )    (27,548 )    (22,092  )

Derivatives                   752          (103,618 )    11,007       (129,519 )

Other                         353          975           1,926        3,306

Income (loss) before
income taxes and              (30,458 )    (7,764   )    (38,571 )    18,052
noncontrolling interests

Income tax benefit            14,620       7,163         19,182       4,569

Net income (loss)           $ (15,838 )  $ (601     )  $ (19,389 )  $ 22,621

Net income attributable to    (6,345  )    (3,948   )    (10,003 )    (23,976  )
noncontrolling interests

Net loss attributable to    $ (22,183 )  $ (4,549   )  $ (29,392 )  $ (1,355   )
PVA

Net income (loss) per
share attributable to PVA
common shareholders

Basic                       $ (0.52   )  $ (0.11    )  $ (0.69   )  $ (0.03    )

Diluted (d)                 $ (0.52   )  $ (0.11    )  $ (0.69   )  $ (0.03    )

Weighted average shares       42,798       41,740        42,422       41,642
outstanding, basic

Weighted average shares       42,798       41,740        42,422       41,642
outstanding, diluted

                            Three Months Ended         Six Months Ended

                            June 30,                   June 30,

                            2009         2008          2009         2008

Production

Natural gas (MMcf)            11,422       10,075        23,224       19,823

Crude oil (MBbls)             215          119           386          214

NGLs (MBbls)                  140          109           287          143

Total natural gas, crude
oil and NGL production        13,552       11,443        27,262       21,965
(MMcfe)

Prices

Natural gas ($ per Mcf)     $ 3.49       $ 11.24       $ 3.99       $ 9.77

Crude oil ($ per Bbl)       $ 55.00      $ 121.54      $ 47.03      $ 110.64

NGLs ($ per Bbl)            $ 30.97      $ 59.98       $ 26.85      $ 58.78




(a) As a result of adopting FASB Staff Position No. APB 14-1, Accounting for
Convertible Debt Instruments that May be Settled in Cash upon Conversion
(Including Partial Cash Settlement), we are required to present our results of
operations retrospectively as if the standard had been in effect for all periods
presented.

(b) Drilling rig standby charges represent fees paid in connection with the
deferral of drilling associated with contractually committed rigs and frac tank
rentals.

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

(d) Net income per share attributable to PVA common shareholders, diluted
includes an adjustment to net income for the dilutive effect of PVR's net income
allocated to unvested PVR equity compensation awards that we hold until vesting.




PENN VIRGINIA CORPORATION

CONSOLIDATED BALANCE SHEETS - unaudited

(in thousands)

                                       June 30,       December 31,

                                       2009           2008

Assets

Current assets                       $ 189,540      $ 263,518

Net property and                       2,531,447      2,512,177
equipment

Other assets                           235,952        220,870

Total assets                         $ 2,956,939    $ 2,996,565

Liabilities and
shareholders' equity

Current liabilities                  $ 143,034      $ 247,594

Long-term debt of PVR                  597,100        568,100

Revolving credit                       70,000         332,000
facility

Senior notes                           291,115        -

Convertible notes                      203,217        199,896

Other liabilities and                  305,610        312,645
deferred taxes

PVA shareholders'                      1,073,269      1,039,103
equity

Noncontrolling                         273,594        297,227
interests

Total shareholders'                    1,346,863      1,336,330
equity

Total liabilities and                $ 2,956,939    $ 2,996,565
shareholders' equity

CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited

(in thousands)

                          Three Months Ended          Six Months Ended

                          June 30,                    June 30,

                          2009         2008           2009            2008

Cash flows from
operating activities

Net income (loss)       $ (15,838 )  $ (601      )  $ (19,389   )   $ 22,621

Adjustments to
reconcile net income
(loss) to net cash
provided by operating
activities:

Depreciation,
depletion and             58,218       44,934         115,291         83,503
amortization

Impairments               3,279        -              4,475           -

Derivative contracts:

Total derivative          668          105,135        (9,133    )     132,144
losses (gains)

Cash receipts
(payments) to settle      17,281       (18,032   )    36,429          (26,985  )
derivatives

Deferred income taxes     (14,166 )    (3,589    )    (18,800   )     (1,447   )

Dry hole and unproved     9,379        5,919          19,883          9,472
leasehold expense

Other                     9,888        2,222          13,379          1,256

Operating cash flow
(see attached table       68,709       135,988        142,135         220,564
"Certain Non-GAAP
Financial Measures")

Changes in operating      (33,751 )    (17,248   )    (4,158    )     (35,672  )
assets and liabilities

Net cash provided by      34,958       118,740        137,977         184,892
operating activities

Cash flows from
investing activities

Acquisitions, net of      (3,120  )    (111,367  )    (6,193    )     (116,107 )
cash acquired

Additions to property     (56,982 )    (120,512  )    (193,195  )     (229,174 )
and equipment

Other                     5,568        334            5,822           739

Net cash used in          (54,534 )    (231,545  )    (193,566  )     (344,542 )
investing activities

Cash flows from
financing activities

Dividends paid            (2,370  )    (2,342    )    (4,719    )     (4,686   )

Distributions paid to
noncontrolling            (18,455 )    (14,172   )    (36,910   )     (27,912  )
interest holders

Net proceeds from
(repayments of) PVA       (28,991 )    29,000         29,009          83,000
borrowings

Net proceeds from
(repayments of) PVR       2,000        (32,600   )    29,000          (30,600  )
borrowings

Proceeds from equity      64,835       138,015        64,835          138,015
issuance

Other                     (8,827  )    5,504          (25,627   )     10,786

Net cash provided by      8,192        123,405        55,588          168,603
financing activities

Net increase
(decrease) in cash and    (11,384 )    10,600         (1        )     8,953
cash equivalents

Cash and cash
equivalents -             29,721       32,880         18,338          34,527
beginning of period

Cash and cash
equivalents - end of    $ 18,337     $ 43,480       $ 18,337        $ 43,480
period





PENN VIRGINIA CORPORATION

QUARTERLY SEGMENT INFORMATION - unaudited

(in thousands except where noted)

Three Months                             Coal and    Natural
Ended June 30,  Oil and Gas              Natural     Gas        Other        Consolidated
2009                                     Resource    Midstream
                                         Management

                Amount       per Mcfe
                             (a)

Production

Total natural
gas, crude oil    13,552
and NGLs
(MMcfe)

Natural gas       11,422
(MMcf)

Crude oil         215
(MBbls)

NGLs (MBbls)      140

Coal royalty
tons                                       8,739
(thousands of
tons)

Midstream
system                                                 31,342
throughput
volumes (MMcf)

Revenues

Natural gas     $ 39,830     $ 3.49      $ -         $ -        $ -          $ 39,830

Crude Oil         11,825       55.00       -           -          -            11,825

NGLs              4,336        30.97       -           -          -            4,336

Natural gas       -                        -           113,060    (21,405 )    91,655
midstream

Coal royalties    -                        29,997      -          -            29,997

Other             (212    )                5,147       1,215      124          6,274

Total revenues    55,779       4.12        35,144      114,275    (21,281 )    183,917

Expenses

Cost of
midstream gas     -            -           -           92,154     (20,221 )    71,933
purchased

Operating         14,748       1.09        2,327       6,691      (1,118  )    22,648
expense

Exploration       10,733       0.79        -           -          -            10,733

Exploration -
Drilling rig      6,739        0.50        -           -          -            6,739
standby
charges

Taxes other       3,744        0.28        300         680        206          4,930
than income

General and       5,713        0.42        4,020       4,237      6,385        20,355
administrative

Depreciation,
depletion and     39,917       2.94        8,164       9,453      684          58,218
amortization

Impairments       3,279        0.24        -           -          -            3,279

Loss on sale      1,599        0.12        -           -          -            1,599
of assets

Total expenses    86,472       6.38        14,811      113,215    (14,064 )    200,434

Operating       $ (30,693 )  $ (2.26  )  $ 20,333    $ 1,060    $ (7,217  )  $ (16,517 )
income (loss)

Additions to
property and    $ 39,240                 $ 606       $ 15,208   $ 1,048      $ 56,102
equipment

Three Months                             Coal and    Natural
Ended June 30,  Oil and Gas              Natural     Gas        Other        Consolidated
2008                                     Resource    Midstream
                                         Management

                Amount       per Mcfe
                             (a)

Production

Total natural
gas, crude oil    11,443
and NGLs
(MMcfe)

Natural gas       10,075
(MMcf)

Crude oil         119
(MBbls)

NGLs (MBbls)      109

Coal royalty
tons                                       8,839
(thousands of
tons)

Midstream
system                                                 23,884
throughput
volumes (MMcf)

Revenues

Natural gas     $ 113,212    $ 11.24     $ -         $ -        $ -          $ 113,212

Crude oil         14,463       121.54      -           -          -            14,463

NGLs              6,538        59.98       -           -          -            6,538

Natural gas       -                        -           234,797    (50,499 )    184,298
midstream

Coal royalties    -                        31,641      -          -            31,641

Other             154                      7,415       2,652      41           10,262

Total revenues    134,367      11.74       39,056      237,449    (50,458 )    360,414

Expenses

Cost of
midstream gas     -            -           -           202,819    (49,833 )    152,986
purchased

Operating         14,094       1.23        3,902       4,817      (599    )    22,214
expense

Exploration       6,739        0.59        -           -          -            6,739

Taxes other       7,085        0.62        371         605        198          8,259
than income

General and       5,163        0.45        3,274       3,469      7,152        19,058
administrative

Depreciation,
depletion and     31,568       2.76        7,526       5,393      447          44,934
amortization

Total expenses    64,649       5.65        15,073      217,103    (42,635 )    254,190

Operating       $ 69,718     $ 6.09      $ 23,983    $ 20,346   $ (7,823  )  $ 106,224
income (loss)

Additions to
property and    $ 114,213                $ 24,641    $ 92,769   $ 256        $ 231,879
equipment




(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)

Six Months                               Coal and
Ended June 30,  Oil and Gas              Natural     Natural Gas  Other        Consolidated
2009                                     Resource    Midstream
                                         Management

                Amount       per Mcfe
                             (a)

Production

Total natural
gas, crude oil    27,262
and NGLs
(MMcfe)

Natural gas       23,224
(MMcf)

Crude oil         386
(MBbls)

NGLs (MBbls)      287

Coal royalty
tons                                       17,487
(thousands of
tons)

Midstream
system                                                 63,622
throughput
volumes (MMcf)

Revenues

Natural gas     $ 92,651     $ 3.99      $ -         $ -          $ -          $ 92,651

Crude Oil         18,153       47.03       -           -            -            18,153

NGLs              7,706        26.85       -           -            -            7,706

Natural gas       -                        -           230,439      (43,578 )    186,861
midstream

Coal royalties    -                        60,627      -            -            60,627

Other             1,834                    12,769      2,343        133          17,079

Total revenues    120,344      4.41        73,396      232,782      (43,445 )    383,077

Expenses

Cost of
midstream gas     -            -           -           192,774      (41,443 )    151,331
purchased

Operating         29,511       1.08        4,434       13,474       (2,069  )    45,350
expense

Exploration       22,181       0.81        -           -            -            22,181

Exploration -
Drilling rig      16,603       0.61        -           -            -            16,603
standby
charges

Taxes other       8,570        0.31        725         1,478        589          11,362
than income

General and       10,837       0.40        7,372       8,481        12,151       38,841
administrative

Depreciation,
depletion and     79,916       2.94        15,558      18,562       1,255        115,291
amortization

Impairments       4,475        0.16        -           -            -            4,475

Loss on sale      1,599        0.06        -           -            -            1,599
of assets

Total expenses    173,692      6.37        28,089      234,769      (29,517 )    407,033

Operating       $ (53,348 )  $ (1.96  )  $ 45,307    $ (1,987  )  $ (13,928 )  $ (23,956 )
income (loss)

Additions to
property and    $ 159,814                $ 1,906     $ 32,214     $ 1,454      $ 195,388
equipment

Six Months                               Coal and
Ended June 30,  Oil and Gas              Natural     Natural Gas  Other        Consolidated
2008                                     Resource    Midstream
                                         Management

                Amount       per Mcfe
                             (a)

Production

Total natural
gas, crude oil    21,965
and NGLs
(MMcfe)

Natural gas       19,823
(MMcf)

Crude oil         214
(MBbls)

NGLs (MBbls)      143

Coal royalty
tons                                       16,479
(thousands of
tons)

Midstream
system                                                 41,171
throughput
volumes (MMcf)

Revenues

Natural gas     $ 193,725    $ 9.77      $ -         $ -          $ -          $ 193,725

Crude oil         23,678       110.64      -           -            -            23,678

NGLs              8,406        58.78       -           -            -            8,406

Natural gas       -                        -           359,845      (50,499 )    309,346
midstream

Coal royalties    -                        55,603      -            -            55,603

Other             857                      13,747      4,124        63           18,791

Total revenues    226,666      10.32       69,350      363,969      (50,436 )    609,549

Expenses

Cost of
midstream gas     -            -           -           302,516      (49,833 )    252,683
purchased

Operating         28,303       1.29        6,645       8,867        (599    )    43,216
expense

Exploration       11,419       0.52        -           -            -            11,419

Taxes other       12,943       0.59        742         1,306        663          15,654
than income

General and       9,747        0.44        6,459       6,802        13,709       36,717
administrative

Depreciation,
depletion and     58,184       2.65        13,939      10,480       900          83,503
amortization

Total expenses    120,596      5.49        27,785      329,971      (35,160 )    443,192

Operating       $ 106,070    $ 4.83      $ 41,565    $ 33,998     $ (15,276 )  $ 166,357
income (loss)

Additions to
property and    $ 209,402                $ 24,689    $ 110,391    $ 799        $ 345,281
equipment




(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        Six Months Ended

                              June 30,                  June 30,

                              2009         2008         2009         2008

Reconciliation of GAAP "Net
cash provided by operating
activities" to Non-GAAP
"Operating cash flow"

Net cash provided by          $ 34,958     $ 118,740    $ 137,977    $ 184,892
operating activities

Adjustments:

Changes in operating assets     33,751       17,248       4,158        35,672
and liabilities

Operating cash flow (a)       $ 68,709     $ 135,988    $ 142,135    $ 220,564

Reconciliation of GAAP "Net
income (loss) attributable
to PVA" to Non-GAAP "Net
income (loss) attributable
to PVA as adjusted"

Net loss attributable to PVA  $ (22,183 )  $ (4,549  )  $ (29,392 )  $ (1,355  )

Adjustments for derivatives:

Derivative losses included      668          105,135      (9,133  )    132,144
in income

Cash settlements of             17,281       (18,032 )    36,429       (26,985 )
derivatives

Adjustment for drilling rig     6,739        -            16,603       -
standby charges

Adjustment for impairments      3,279        -            4,475        -

Adjustment for loss on sale     1,599        -            1,599        -
of assets

Impact of adjustments on        (2,640  )    -            (6,915  )    -
noncontrolling interest

Impact of adjustments on        (10,753 )    (33,796 )    (17,004 )    (40,802 )
income tax expense

                              $ (6,010  )  $ 48,758     $ (3,338  )  $ 63,002

Less: Portion of subsidiary
net income allocated to
undistributed share-based       (11     )    (58     )    (24     )    (161    )
compensation awards, net of
taxes

Net income (loss)
attributable to PVA as        $ (6,021  )  $ 48,700     $ (3,362  )  $ 62,841
adjusted (b)

Net income (loss)
attributable to PVA as        $ (0.14   )  $ 1.17       $ (0.08   )  $ 1.51
adjusted per share, diluted




(a) Operating cash flow represents net cash provided by operating activities
before changes in operating assets and liabilities. We believe 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 we believe 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) Net income attributable to PVA as adjusted represents net income
attributable to PVA adjusted to exclude the effects of non-cash changes in the
fair value of derivatives, the effects of drilling rig stand-by charges, the
effects of impairments, the effects of loss on the sale of assets and the
effects of PVR's net income allocated to unvested PVR equity compensation awards
that we hold until vesting. We believe this presentation is commonly 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. We use this information for comparative purposes within
these industries. Net income attributable to PVA 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 attributable to PVA.





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 June 30, 2009        Three Months Ended June 30, 2008

                As Reported  Adjustments   As Adjusted  As Reported   Adjustments   As Adjusted

Revenues

Natural gas     $ 39,830     $ -           $ 39,830     $ 113,212     $ -           $ 113,212

Crude oil         11,825       -             11,825       14,463        -             14,463

NGLs              4,336        -             4,336        6,538         -             6,538

Natural gas       91,655       (91,655  )    -            184,298       (184,298 )    -
midstream

Coal royalties    29,997       (29,997  )    -            31,641        (31,641  )    -

Other             6,274        (6,362   )    (88     )    10,262        (10,067  )    195

Total revenues    183,917      (128,014 )    55,903       360,414       (226,006 )    134,408

Expenses

Cost of
midstream gas     71,933       (71,933  )    -            152,986       (152,986 )    -
purchased

Operating         22,648       (9,018   )    13,630       22,214        (8,719   )    13,495

Exploration       10,733       -             10,733       6,739         -             6,739

Exploration -
drilling rig      6,739        -             6,739        -             -             -
standby
charges

Taxes other       4,930        (980     )    3,950        8,259         (976     )    7,283
than income

General and       20,355       (8,819   )    11,536       19,058        (7,305   )    11,753
administrative

Depreciation,
depletion and     58,218       (17,617  )    40,601       44,934        (12,919  )    32,015
amortization

Impairments       3,279        -             3,279        -             -             -

Loss on sale      1,599        -             1,599        -             -             -
of assets

Total expenses    200,434      (108,367 )    92,067       254,190       (182,905 )    71,285

Operating         (16,517 )    (19,647  )    (36,164 )    106,224       (43,101  )    63,123
income (loss)

Other income
(expense)

Interest          (15,046 )    6,365         (8,681  )    (11,345  )    5,374         (5,971   )
expense

Derivatives       752          2,034         2,786        (103,618 )    29,942        (73,676  )

Equity
earnings in       -            5,250         5,250        -             4,513         4,513
PVG and PVR

Other             353          (347     )    6            975           (676     )    299

Income (loss)
before taxes
and               (30,458 )    (6,345   )    (36,803 )    (7,764   )    (3,948   )    (11,712  )
noncontrolling
interests

Income tax
benefit           14,620       -             14,620       7,163         -             7,163
(expense)

Net income        (15,838 )    (6,345   )    (22,183 )    (601     )    (3,948   )    (4,549   )
(loss)

Net income
attributable
to                (6,345  )    6,345         -            (3,948   )    3,948         -
noncontrolling
interests

Net income
(loss)          $ (22,183 )  $ -           $ (22,183 )  $ (4,549   )  $ -           $ (4,549   )
attributable
to PVA

                Six Months Ended June 30, 2009          Six Months Ended June 30, 2008

                As Reported  Adjustments   As Adjusted  As Reported   Adjustments   As Adjusted

Revenues

Natural gas     $ 92,651     $ -           $ 92,651     $ 193,725     $ -           $ 193,725

Crude oil         18,153       -             18,153       23,678        -             23,678

NGLs              7,706        -             7,706        8,406         -             8,406

Natural gas       186,861      (186,861 )    -            309,346       (309,346 )    -
midstream

Coal royalties    60,627       (60,627  )    -            55,603        (55,603  )    -

Other             17,079       (15,112  )    1,967        18,791        (14,168  )    4,623

Total revenues    383,077      (262,600 )    120,477      609,549       (379,117 )    230,432

Expenses

Cost of
midstream gas     151,331      (151,331 )    -            252,683       (252,683 )    -
purchased

Operating         45,350       (17,908  )    27,442       43,216        (15,512  )    27,704

Exploration       22,181       -             22,181       11,419        -             11,419

Exploration -
drilling rig      16,603       -             16,603       -             -             -
standby
charges

Taxes other       11,362       (2,203   )    9,159        15,654        (2,048   )    13,606
than income

General and       38,841       (16,952  )    21,889       36,717        (14,439  )    22,278
administrative

Depreciation,
depletion and     115,291      (34,120  )    81,171       83,503        (24,419  )    59,084
amortization

Impairments       4,475        -             4,475        -             -             -

Loss on sale      1,599        -             1,599        -             -             -
of assets

Total expenses    407,033      (222,514 )    184,519      443,192       (309,101 )    134,091

Operating         (23,956 )    (40,086  )    (64,042 )    166,357       (70,016  )    96,341
income (loss)

Other income
(expense)

Interest          (27,548 )    11,981        (15,567 )    (22,092  )    10,306        (11,786  )
expense

Derivatives       11,007       9,195         20,202       (129,519 )    22,166        (107,353 )

Equity
earnings in       -            9,583         9,583        -             14,614        14,614
PVG and PVR

Other             1,926        (676     )    1,250        3,306         (1,046   )    2,260

Income (loss)
before taxes
and               (38,571 )    (10,003  )    (48,574 )    18,052        (23,976  )    (5,924   )
noncontrolling
interests

Income tax
benefit           19,182       -             19,182       4,569         -             4,569
(expense)

Net income        (19,389 )    (10,003  )    (29,392 )    22,621        (23,976  )    (1,355   )
(loss)

Net income
attributable
to                (10,003 )    10,003        -            (23,976  )    23,976        -
noncontrolling
interests

Net income
(loss)          $ (29,392 )  $ -           $ (29,392 )  $ (1,355   )  $ -           $ (1,355   )
attributable
to PVA




(a) Equity method income statements represent consolidated income statements,
minus 100% of PVG's consolidated results of operations, plus noncontrolling
interests which represents the portion of PVG's consolidated results of
operations that we do not own. We believe equity method income statements
provide useful information to allow the public to more easily discern PVG's
effect on our 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):

                       June 30, 2009                               December 31, 2008

                       As Reported    Adjustments   As Adjusted    As Reported    Adjustments   As Adjusted

Assets

Current assets         $ 189,540      $ (95,817  )  $ 93,723       $ 263,518      $ (126,299 )  $ 137,219

Net property and         2,531,447      (892,944 )    1,638,503      2,512,177      (895,119 )    1,617,058
equipment

Equity investment in     -              227,911       227,911        -              248,211       248,211
PVG and PVR

Other assets             235,952        (211,126 )    24,826         220,870        (206,256 )    14,614

Total assets           $ 2,956,939    $ (971,976 )  $ 1,984,963    $ 2,996,565    $ (979,463 )  $ 2,017,102

Liabilities and
shareholders' equity

Current liabilities    $ 143,034      $ (74,187  )  $ 68,847       $ 247,594      $ (89,908  )  $ 157,686

Long-term debt           1,161,432      (597,100 )    564,332        1,099,996      (568,100 )    531,896

Other liabilities and    305,610        (27,095  )    278,515        312,645        (24,228  )    288,417
deferred taxes

PVA shareholders'        1,073,269      -             1,073,269      1,039,103      -             1,039,103
equity

Noncontrolling           273,594        (273,594 )    -              297,227        (297,227 )    -
interest

Total shareholders'      1,346,863      (273,594 )    1,073,269      1,336,330      (297,227 )    1,039,103
equity

Total liabilities and  $ 2,956,939    $ (971,976 )  $ 1,984,963    $ 2,996,565    $ (979,463 )  $ 2,017,102
shareholders' equity

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

                       Three Months Ended June 30, 2009            Three Months Ended June 30, 2008

                       As Reported    Adjustments   As Adjusted    As Reported    Adjustments   As Adjusted

Cash flows from
operating activities

Net loss               $ (15,838   )  $ -           $ (15,838   )  $ (601      )  $ -           $ (601      )

Adjustments to
reconcile net loss to
net cash provided by
operating activities:

Depreciation,
depletion and            58,218         (17,617  )    40,601         44,934         (12,919  )    32,015
amortization

Impairments              3,279          -             3,279          -              -             -

Derivative contracts:

Total derivative         668            (2,951   )    (2,283    )    105,135        (31,459  )    73,676
losses (gains)

Cash receipts
(payments) to settle     17,281         (1,613   )    15,668         (18,032   )    9,703         (8,329    )
derivatives

Deferred income taxes    (14,166   )    -             (14,166   )    (3,589    )    -             (3,589    )

Dry hole and unproved    9,379          -             9,379          5,919          -             5,919
leasehold expense

Investment in PVG and    -              (12,780  )    (12,780   )    -              (8,952   )    (8,952    )
PVR

Cash distributions       -              11,532        11,532         -              11,048        11,048
from PVG and PVG

Other                    9,888          (1,306   )    8,582          2,222          (335     )    1,887

Operating cash flow      68,709         (24,735  )    43,974         135,988        (32,914  )    103,074

Changes in operating
assets and               (33,751   )    (2,610   )    (36,361   )    (17,248   )    (500     )    (17,748   )
liabilities

Net cash provided by
(used in) operating      34,958         (27,345  )    7,613          118,740        (33,414  )    85,326
activities

Net cash provided by
(used in) investing      (54,534   )    15,507        (39,027   )    (231,545  )    117,076       (114,469  )
activities

Net cash provided by
(used in) financing      8,192          16,455        24,647         123,405        (90,623  )    32,782
activities

Net increase
(decrease) in cash       (11,384   )    4,617         (6,767    )    10,600         (6,961   )    3,639
and cash equivalents

Cash and cash
equivalents-beginning    29,721         (21,710  )    8,011          32,880         (18,981  )    13,899
balance

Cash and cash
equivalents-ending     $ 18,337       $ (17,093  )  $ 1,244        $ 43,480       $ (25,942  )  $ 17,538
balance

                       Six Months Ended June 30, 2009              Six Months Ended June 30, 2008

                       As Reported    Adjustments   As Adjusted    As Reported    Adjustments   As Adjusted

Cash flows from
operating activities

Net income (loss)      $ (19,389   )  $ -           $ (19,389   )  $ 22,621       $ -           $ 22,621

Adjustments to
reconcile net income
(loss) to net cash
provided by operating
activities:

Depreciation,
depletion and            115,291        (34,120  )    81,171         83,503         (24,419  )    59,084
amortization

Impairments              4,475          -             4,475          -              -             -

Derivative contracts:

Total derivative         (9,133    )    (10,566  )    (19,699   )    132,144        (24,791  )    107,353
losses (gains)

Cash settlements of      36,429         (4,449   )    31,980         (26,985   )    19,225        (7,760    )
derivatives

Deferred income taxes    (18,800   )    -             (18,800   )    (1,447    )    -             (1,447    )

Dry hole and unproved    19,883         -             19,883         9,472          -             9,472
leasehold expense

Investment in PVG and    -              (21,721  )    (21,721   )    -              (42,959  )    (42,959   )
PVR

Cash distributions       -              23,064        23,064         -              21,480        21,480
from PVG and PVG

Other                    13,379         (31      )    13,348         1,256          79            1,335

Operating cash flow      142,135        (47,823  )    94,312         220,564        (51,385  )    169,179

Changes in operating
assets and               (4,158    )    (1,648   )    (5,806    )    (35,672   )    424           (35,248   )
liabilities

Net cash provided by
(used in) operating      137,977        (49,471  )    88,506         184,892        (50,961  )    133,931
activities

Net cash provided by
(used in) investing      (193,566  )    33,548        (160,018  )    (344,542  )    134,405       (210,137  )
activities

Net cash provided by
(used in) financing      55,588         17,168        72,756         168,603        (78,883  )    89,720
activities

Net increase
(decrease) in cash       (1        )    1,245         1,244          8,953          4,561         13,514
and cash equivalents

Cash and cash
equivalents-beginning    18,338         (18,338  )    -              34,527         (30,503  )    4,024
balance

Cash and cash
equivalents-ending     $ 18,337       $ (17,093  )  $ 1,244        $ 43,480       $ (25,942  )  $ 17,538
balance




(a) Equity method balance sheets represent consolidated balance sheets, minus
100% of PVG's consolidated balance sheets, excluding noncontrolling interest
which represents the portion of PVG's consolidated balance sheet that we do not
own and including other adjustments to eliminate inter-company transactions. We
believe equity method balance sheets provide useful information to allow the
public to more easily discern PVG's effect on our 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
noncontrolling interest which represents the portion of PVG's consolidated
results of operations that we do not own and including other adjustments to
eliminate inter-company transactions. We believe equity method statements of
cash flows provide useful information to allow the public to more easily discern
PVG's effect on our cash flows.




PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited

(dollars in millions except where noted)

We are providing the following guidance regarding financial and operational
expectations for full-year 2009.

                         Actual

                         First Quarter  Second Quarter  YTD      Full-Year

Oil & Gas Segment:       2009           2009            2009     2009 Guidance

Production:

Natural gas (Bcf) (a)      11.8         11.4            23.2     41.2   -  42.7

Crude oil (MBbls)          171          215             386      625    -  675

NGLs (MBbls)               147          140             287      515    -  540

Equivalent production      13.7         13.6            27.3     48.0   -  50.0
(Bcfe)

Equivalent daily
production (MMcfe per      152.3        149.5           150.8    131.5  -  137.0
day)

Expenses:

Cash operating expenses  $ 1.80         1.79            1.80     1.85   -  1.95
($ per Mcfe)

Exploration              $ 21.3         17.5            38.8     60.0   -  70.0

Depreciation, depletion
and amortization ($ per  $ 2.92         2.94            2.94     2.90   -  3.05
Mcfe)

Impairments              $ 1.2          3.3             4.5      4.5    -  4.5

Loss on sale of assets   $ -            1.6             1.6      1.6    -  1.6

Capital expenditures:

Development drilling     $ 76.5         37.3            113.8    135.0  -  145.0

Exploratory drilling     $ 1.5          -               1.5      2.0    -  4.0

Pipeline, gathering,     $ 5.1          2.4             7.5      8.0    -  9.0
facilities

Seismic                  $ 0.7          0.4             1.1      1.0    -  2.0

Lease acquisition,
field projects and       $ 1.8          2.8             4.6      19.0   -  20.0
other

Total segment capital    $ 85.6         42.9            128.5    165.0  -  180.0
expenditures

Coal and Natural
Resource Segment (PVR):

Coal royalty tons          8.7          8.7             17.5     33.0   -  34.0
(millions)

Revenues:

Average coal royalties   $ 3.50         3.43            3.47     3.30   -  3.40
per ton

Average coal royalties
per ton, net of coal     $ 3.36         3.25            3.31     3.20   -  3.30
royalties expense

Other                    $ 7.6          5.1             12.8     23.5   -  24.5

Expenses:

Cash operating expenses  $ 5.9          6.6             12.5     22.0   -  23.0

Depreciation, depletion  $ 7.4          8.2             15.6     31.0   -  32.0
and amortization

Capital expenditures:

Expansion and            $ 1.3          0.6             1.9      5.0    -  5.5
acquisitions

Maintenance capital      $ -            -               -        1.0    -  2.0
expenditures

Total segment capital    $ 1.3          0.6             1.9      6.0    -  7.5
expenditures

Natural Gas Midstream
Segment (PVR):

System throughput
volumes (MMcf per day)     359          344             352      350    -  360
(b)

Expenses:

Cash operating expenses  $ 11.8         11.6            23.4     51.0   -  52.5

Depreciation, depletion  $ 9.1          9.5             18.6     38.0   -  39.0
and amortization

Capital expenditures:

Expansion and            $ 11.2         10.3            21.5     70.0   -  72.0
acquisitions

Maintenance capital      $ 3.3          1.4             4.7      11.5   -  13.0
expenditures

Total segment capital    $ 14.5         11.7            26.2     81.5   -  85.0
expenditures

Corporate and Other:

General and
administrative expense   $ 5.2          5.8             11.0     18.5   -  20.0
- PVA

General and
administrative expense   $ 0.5          0.6             1.1      2.0    -  2.5
- PVG

Interest expense:

PVA end of period debt   $ 591.5        564.3           564.3
outstanding

PVA average interest       4.3   %      6.0   %         5.2   %
rate

PVR end of period debt   $ 595.1        597.1           597.1
outstanding

PVR average interest       3.9   %      4.2   %         4.0   %
rate

Income tax rate            38.8  %      39.7  %         39.5  %

Cash distributions
received from PVG and    $ 11.5         11.6            23.1
PVR

Other capital            $ 0.6          0.9             1.5      1.0    -  2.0
expenditures




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 our current derivative positions for natural gas
     production in the oil and gas segment as of June 30, 2009:

                                         Weighted Average Price

                             Average     Additional Put
                             Volume Per  Option          Floor         Ceiling
                             Day

     Natural gas costless    (MMBtu)                     (per MMBtu)
     collars

     Third quarter 2009      15,000                      $ 4.25        $ 5.70

     Fourth quarter 2009     15,000                      $ 4.25        $ 5.70

     First quarter 2010      35,000                      $ 4.96        $ 7.41

     Second quarter 2010     30,000                      $ 5.33        $ 8.02

     Third quarter 2010      30,000                      $ 5.33        $ 8.02

     Fourth quarter 2010     50,000                      $ 5.65        $ 8.77

     First quarter 2011      50,000                      $ 5.65        $ 8.77

     Second quarter 2011     10,000                      $ 6.00        $ 8.00

     Third quarter 2011      10,000                      $ 6.00        $ 8.00

     Natural gas three-way   (MMBtu)                     (per MMBtu)
     collars (1)

     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 swaps       (MMBtu)                     (per MMBtu)

     Third quarter 2009      40,000                      $ 4.91

     Fourth quarter 2009     40,000                      $ 4.91

     First quarter 2010      15,000                      $ 6.19

     Second quarter 2010     30,000                      $ 6.17

     Third quarter 2010      30,000                      $ 6.17

     Crude oil costless      (barrels)                   (per barrel)
     collars

     First quarter 2010      500                         $ 60.00       $ 74.75

     Second quarter 2010     500                         $ 60.00       $ 74.75

     Third quarter 2010      500                         $ 60.00       $ 74.75

     Fourth quarter 2010     500                         $ 60.00       $ 74.75

     Crude oil three-way     (barrels)                   (per barrel)
     collars (1)

     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

     Crude oil swaps         (barrels)                   (per barrel)

     Third quarter 2009      500                         $ 59.25

     Fourth quarter 2009     500                         $ 59.25




   We estimate 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 remainder of 2009 would increase or
   decrease by approximately $17.4 million. In addition, we estimate that for
   every $5.00 per barrel increase or decrease in the crude oil price, oil and
   gas segment operating income for the remainder of 2009 would increase or
   decrease by approximately $1.8 million. This assumes that crude oil prices,
   natural gas prices and inlet volumes remain constant at anticipated 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 we will
   receive for the contracted commodity volumes. The purchased put establishes
   the minimum price that we 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)

     The costless collar natural gas prices per MMBtu per quarter include
(b)  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 June 30, 2009:

                                              Weighted Average Price

                                              Collars

                                  Average     Additional
                                  Volume Per  Put Option  Put      Call
                                  Day

     Crude oil three-way collar   (barrels)               (per barrel)

     Third quarter 2009 through   1,000       $ 70.00     $ 90.00  $ 119.25
     fourth quarter 2009

     Frac spread collar (1)       (MMBtu)                 (per MMBtu)

     Second quarter 2009 through  6,000                   $ 9.09   $ 13.94
     fourth quarter 2009

     Crude oil collar             (barrels)               (per barrel)

     Third quarter 2010 through   750                     $ 70.00  $ 81.25
     fourth quarter 2010




   We estimate that, excluding the derivative positions described above, for
   every $1.00 per MMBtu increase or decrease in the natural gas price, natural
   gas midstream gross margin and operating income for the remainder of 2009
   would decrease or increase by approximately $2.5 million. In addition, we
   estimate that for every $5.00 per barrel increase or decrease in the crude
   oil price, natural gas midstream gross margin and operating income for the
   remainder of 2009 would increase or decrease by approximately $2.4 million.
   This assumes that crude oil prices, natural gas prices and inlet volumes
   remain constant at anticipated levels. These estimated changes in gross
   margin and operating income exclude potential cash receipts or payments in
   settling these derivative positions.

   (1) PVR's frac spread is the spread between the purchase price for the
   natural gas PVR purchases from producers and the sale price for the NGLs that
   PVR sells after processing. PVR hedges against the variability in its frac
   spread by entering into swap derivative contracts to sell NGLs forward at a
   predetermined swap price and to purchase an equivalent volume of natural gas
   forward on an MMBtu basis.




    Source: Penn Virginia Corporation