Penn Virginia Corporation Announces Fourth Quarter and Full-Year 2009 Results

Penn Virginia Corporation (NYSE: PVA) today reported financial and operational results for the three months and year ended December 31, 2009 and provided an update of full-year 2010 guidance.

Fourth Quarter 2009 Highlights

Fourth quarter 2009 results, with comparisons to fourth quarter 2008 results, included the following:

• Record proved reserves of 942 billion cubic feet of natural gas equivalent (Bcfe) as of December 31, 2009, as compared to 916 Bcfe as of December 31, 2008;
• Quarterly oil and gas production of 11.3 billion cubic feet of natural gas equivalent (Bcfe), or 123.1 million cubic feet of natural gas equivalent (MMcfe) per day, as compared to 13.2 Bcfe, or 143.8 MMcfe per day;
• Operating cash flow, a non-GAAP (generally accepted accounting principles) measure, of $74.4 million as compared to $95.7 million;
• Operating income of $20.6 million, which included $11.1 million of non-cash impairment charges, as compared to an operating loss of $31.9 million, which included $51.8 million of non-cash impairment charges;
• Adjusted net loss attributable to PVA, a non-GAAP measure which excludes the effects of the non-cash change in derivatives fair value, impairments and gains or losses that affect comparability to the prior year period, of $0.4 million, or $0.01 per diluted share, as compared to adjusted net income of $10.7 million, or $0.26 per diluted share;
• Net loss attributable to PVA of $5.4 million, or $0.12 per diluted share, as compared to net loss attributable to PVA of $0.5 million, or $0.01 per diluted share; and
• Financial liquidity consisting of undrawn borrowing capacity and cash balances at December 31, 2009, pro forma to include the net proceeds from our January 2010 Gulf Coast divestiture,of approximately $410 million, as compared to approximately $150 million on December 31, 2008.

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, "Compared to the prior year quarter, we experienced significant declines in commodity prices and a 14 percent decrease in oil and gas production resulting from our decision to suspend drilling during a large part of 2009. However, the fourth quarter of 2009 came in as expected and we believe we are well-positioned for growth in 2010 and beyond. As detailed in our separate operational update, fourth quarter production was at the high end of our expectations and we expect growth of six to 13 percent in 2010, pro forma the divestiture of our Gulf Coast assets. Due to the improved pricing environment and outlook for natural gas we have recommenced drilling and currently have six operated rigs running in our core plays.

"For 2010, we have hedged approximately 55 percent of our estimated natural gas production, at average floor and ceiling prices of $6.09 and $8.19 per MMBtu, respectively. During 2009 and through January 2010, we raised over $510 million from the issuances of debt and equity securities and the sale of non-core assets, including a portion of our position in PVG. As a result, we have substantially improved our financial liquidity, with $300 million of unused availability on our revolving credit facility and over $100 million of cash on hand. We expect our strong hedge and liquidity positions to facilitate future growth in our focused, resource play-driven operations.

"In addition to our core oil and gas exploration and production business segment, we own 51 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG). 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 us approximately $30 million of annualized pre-tax cash flow.”

Full-Year 2009 Consolidated Results

For the year ended December 31, 2009, operating cash flow was $280.5 million, as compared to $413.8 million in 2008. We incurred an operating loss of $98.2, which included charges of $127.7 million for impairments on assets held for sale, drilling rig standby charges and other impairments, as compared to operating income in 2008 of $256.8 million, which included charges of $51.8 million for impairments and $31.4 million of gains on the sale of assets. The adjusted net loss attributable to PVA, which excludes the effects of non-cash impairments, change in derivatives fair value, drilling rig standby charges and gains on the sale of assets, was $14.1 million, or $0.32 per diluted share, as compared to adjusted net income attributable to PVA of $85.5 million, or $2.03 per diluted share, in 2008. The net loss attributable to PVA was $114.6 million, or $2.62 per diluted shared, as compared to net income attributable to PVA of $121.1 million, or $2.87 per diluted share, in 2008 due primarily to the decrease in operating income. Oil and gas production increased nine percent to a record 51.0 Bcfe and proved reserves increased three percent to a record 942 Bcfe. At PVR, lessee coal production and natural gas midstream system throughput volumes were also fiscal year records for those segments.

Oil and Gas Segment Review

Fourth quarter oil and gas production decreased 14 percent to 11.3 Bcfe, or 123.1 MMcfe per day, from 13.2 Bcfe, or 143.8 MMcfe per day, in the fourth quarter of 2008, and nine percent from 12.4 Bcfe, or 134.9 MMcfe per day, in the third quarter of 2009. See our separate operational update news release dated February 4, 2010 for a more detailed discussion of operations for the oil and gas segment.

For the fourth quarter of 2009, the oil and gas segment operating loss of $8.0 million was a $16.5 million improvement over the operating loss of $24.5 million in the prior year quarter. Adjusting for a non-cash impairment charges (primarily on assets held for sale and subsequently divested) of $9.6 million in the fourth quarter of 2009 and a non-cash impairment charge of $20.0 million in the fourth quarter of 2008, operating income was $1.6 million, or $6.1 million greater than operating loss of $4.5 million in the prior year quarter. The increase in adjusted operating income was due to a $30.1 million decrease in non-cash exploration and depreciation, depletion and amortization (DD&A) expenses and a $3.0 million decrease in cash operating expenses, due to reduced drilling and production in the fourth quarter of 2009, partially offset by a $26.9 million decrease in total revenues. The 31 percent decrease in total revenues was primarily due to a $2.03 per thousand cubic feet (Mcf), or 32 percent, decrease in the natural gas price and the 14 percent production decrease, partially offset by a 41 percent increase in the oil price and a 36 percent increase in the price of natural gas liquids (NGLs).

In the fourth quarter of 2009, total oil and gas segment expenses, excluding the impairment and rig standby charges, decreased by $32.5 million, or 36 percent, to $57.9 million, or $5.11 per Mcfe produced, from $90.5 million, or $6.84 per Mcfe produced, in the fourth quarter of 2008, as discussed below:

• Fourth quarter 2009 cash operating expenses were $23.4 million, or $2.06 per Mcfe produced, as compared to $26.4 million, or $1.99 per Mcfe produced, in the fourth quarter of 2008. The increase in unit cash operating expenses was primarily due to higher segment general and administrative (G&A) expense and taxes other than income, partially offset by lower lease operating expense, as discussed below:
  • Lease operating expense decreased seven percent to $1.14 per Mcfe from $1.22 per Mcfe primarily due to decreased overall service costs due to lower commodity prices;
  • Taxes other than income increased 17 percent to $0.34 per Mcfe from $0.29 per Mcfe primarily due to the production decrease; and
  • Segment G&A expense increased 20 percent to $0.59 per Mcfe as compared to $0.49 per Mcfe primarily due to the production decrease and additional costs related to an office relocation.

• Exploration expense decreased 87 percent to $2.9 million in the fourth quarter of 2009, as compared to $22.7 million in the prior year quarter, due in part to a lack of exploratory drilling in the fourth quarter of 2009 and $13.9 million of charges in the prior year quarter for dry-hole costs and a write-off of leasehold acquisition costs.
• DD&A expense decreased by $10.2 million, or 25 percent, to $31.2 million, or $2.74 per Mcfe, in the fourth quarter of 2009 from $41.4 million, or $3.13 per Mcfe, in the prior year quarter. The overall decrease in DD&A expense was primarily due to the production decrease and a lower depletion rate per unit of production. The lower depletion rate was primarily due to an impairment of Gulf Coast assets held for sale (subsequently divested) during the third quarter of 2009 and increasing contributions to production from the high-return Granite Wash play.

During the fourth quarter of 2009, we incurred approximately $9.6 million of impairments. These charges were primarily related to Gulf Coast assets held for sale which were subsequently sold in January 2010.

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 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 2010 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 February 10, 2010. Please visit PVR’s website, www.pvresource.com, under "For Investors” for a copy of the release.

As previously announced, on February 19, 2010, PVG will pay to unitholders of record as of February 2, 2010 a quarterly cash distribution of $0.38 per unit, or an annualized rate of $1.52 per unit. The distribution remains unchanged from the distribution paid in the previous quarter. As a result of PVG’s distribution, we will receive a cash distribution of $7.6 million in the first quarter of 2010, or $30.5 million on an annualized basis.

Capital Resources, Credit Facility and Impact of Derivatives

As of December 31, 2009, we had outstanding borrowings of $530.0 million ($498.4 million carrying value), consisting of $300 million ($291.7 million carrying value) of senior unsecured notes due 2016 and $230.0 million ($206.7 million carrying value) of convertible senior subordinated notes due 2012 and no borrowings against our revolving credit facility. The $32.0 million decrease in outstanding borrowings as compared to the $562.0 million at December 31, 2008 was primarily due to the repayment of revolver debt following a $64.9 million offering of PVA common shares in May 2009 and a $118.1 million offering of PVG common units in September 2009, as well as free cash flow during the second half of 2009, net of spending to fund our oil and gas capital expenditures. Currently, we have $300 million of unused availability on our revolving credit facility and over $100 million of cash on hand.

As of December 31, 2009, PVR had outstanding borrowings of $620.1 million under its $800 million revolving credit facility with remaining revolver borrowing capacity of $178.3 million. The $52.0 million increase in outstanding PVR borrowings as compared to $568.1 million outstanding as of December 31, 2008 was primarily due to PVR capital expenditures during 2009. PVR’s debt is non-recourse to PVA.

Consolidated interest expense increased from $14.0 million in the fourth quarter of 2008 to $18.6 million in the fourth quarter of 2009. The increase was due to a higher interest rate on the senior unsecured notes PVA issued in June 2009 and higher average level of outstanding borrowings during the fourth quarter of 2009 as compared to the prior year quarter.

Due to decreases in natural gas and crude oil prices experienced during the fourth quarter, the mark-to-market valuation of our and PVR’s open hedging positions resulted in derivatives income of $3.4 million in the fourth quarter as compared to derivatives income of $51.0 million in the prior year quarter. Included in derivatives income for the fourth quarter of 2009 was $11.1 million of income related to our oil and gas segment and $7.7 million of expense related to PVR. Fourth quarter 2009 cash settlements of our oil and gas derivatives resulted in net cash receipts of $10.3 million, as compared to $5.8 million of net cash receipts in the same quarter of 2008. PVR’s fourth quarter 2009 cash settlements of commodity and interest rate derivatives result in net cash payments of $1.1 million, as compared to $5.2 million of net cash payments in the same quarter of 2008.

Guidance for 2010

See the Guidance Table included in this release for guidance estimates for full-year 2010. These estimates, including capital expenditure plans, which were discussed in our operational update, are meant to provide guidance only and are subject to revision as our and PVR’s operating environments change.

Full-Year and Fourth Quarter 2009 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss fourth quarter 2009 financial and operational results, is scheduled for Thursday, February 11, 2010 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 1-866-630-9986 five to ten minutes before the scheduled start of the conference call, or via webcast by logging on to our website, www.pennvirginia.com, at least 15 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 for two weeks by dialing 1-888-203-1112 (international: 1-719-457-0820) and using the following replay code: 7649645. An on-demand replay of the conference call will be available for two weeks at our website.

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 East Texas, Mississippi, the Mid-Continent region and the Appalachian Basin. We also own approximately 51 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 write-downs 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; whether the sale of our Gulf Coast assets closes during the fourth quarter and at the anticipated price; operating risks, including unanticipated geological problems, incidental to our business and to PVR’s coal or natural gas midstream businesses; 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 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								Year Ended
		December 31,								December 31,
		2009				2008 (a)				2009				2008 (a)
Revenues
Natural gas		$	40,361			$	73,165			$	169,666			$	368,801
Crude oil			11,846				9,087				43,258				46,529
Natural gas liquids (NGLs)			5,182				2,405				15,735				21,292
Natural gas midstream			138,893				95,523				428,016				589,783
Coal royalties			29,987				33,923				120,435				122,834
Gain on sale of property and equipment			427				91				2,345				31,426
Other			10,201				11,496				35,682				40,186
Total revenues			236,897				225,690				815,137				1,220,851
Expenses
Cost of midstream gas purchased			105,275				76,374				333,854				484,621
Operating			20,249				23,238				86,766				89,891
Exploration			3,383				22,671				37,970				42,436
Exploration - drilling rig standby charges - (b)			(530	)			-				19,784				-
Taxes other than income			5,417				5,261				22,073				28,586
General and administrative (excluding equity compensation)			19,793				17,313				67,274				66,612
Equity-based compensation - (c)			1,420				2,175				12,726				7,882
Depreciation, depletion and amortization			50,207				58,755				223,367				192,236
Impairments on assets held for sale			9,500				-				97,400				-
Impairments			1,598				51,764				10,526				51,764
Loss on sale of assets			-				-				1,599				-
Total expenses			216,312				257,551				913,339				964,028
Operating income (loss)			20,585				(31,861	)			(98,202	)			256,823
Other income (expense)
Interest expense			(18,552	)			(13,986	)			(68,884	)			(49,299	)
Derivatives			3,376				50,969				11,854				46,582
Other			338				116				2,612				(666	)
Income (loss) before income taxes and noncontrolling interests			5,747				5,238				(152,620	)			253,440
Income tax benefit (expense)			5,665				2,432				75,252				(71,920	)
Net income (loss)		$	11,412			$	7,670			$	(77,368	)		$	181,520
Less net income attributable to noncontrolling interests			(16,763	)			(8,184	)			(37,275	)			(60,436	)
Income (loss) attributable to PVA		$	(5,351	)		$	(514	)		$	(114,643	)		$	121,084
Income (loss) per share attributable to PVA
Basic		$	(0.12	)		$	(0.01	)		$	(2.62	)		$	2.89
Diluted		$	(0.12	)		$	(0.01	)		$	(2.62	)		$	2.87
Weighted average shares outstanding, basic			45,434				41,907				43,811				41,760
Weighted average shares outstanding, diluted			45,434				41,907				43,811				42,031
		Three Months Ended								Year Ended
		December 31,								December 31,
		2009				2008				2009				2008
Production
Natural gas (MMcf)			9,480				11,624				43,338				41,493
Crude oil (MBbls)			162				175				750				506
NGLs (MBbls)			146				92				527				392
Total natural gas, crude oil and NGL production (MMcfe)			11,328				13,226				51,000				46,881
Prices
Natural gas ($ per Mcf)		$	4.26			$	6.29			$	3.91			$	8.89
Crude oil ($ per Bbl)		$	73.12			$	51.93			$	57.68			$	91.95
NGLs ($ per Bbl)		$	35.49			$	26.14			$	29.86			$	54.32

(a) As a result of adopting accounting guidance 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 accounting guidance of share-based payments.

PENN VIRGINIA CORPORATION
CONSOLIDATED BALANCE SHEETS - unaudited
(in thousands)
		December 31,			December 31,
		2009			2008
Assets
Current assets		$	306,542		$	263,518
Net property and equipment			2,352,358			2,512,177
Other assets			236,907			220,870
Total assets		$	2,895,807		$	2,996,565
Liabilities and shareholders' equity
Current liabilities		$	160,835		$	247,594
Long-term debt of PVR			620,100			568,100
Revolving credit facility			-			332,000
Senior notes			291,749			-
Convertible notes			206,678			199,896
Other liabilities and deferred taxes			264,558			312,645
PVA shareholders' equity			1,021,976			1,039,103
Noncontrolling interests			329,911			297,227
Total shareholders' equity			1,351,887			1,336,330
Total liabilities and shareholders' equity		$	2,895,807		$	2,996,565

CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited
(in thousands)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2009				2008				2009				2008
Cash flows from operating activities
Net income (loss)		$	11,412			$	7,670			$	(77,368	)		$	181,520
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization			50,207				58,755				223,367				192,236
Impairments			11,098				51,764				107,926				51,764
Derivative contracts:
Total derivative losses (gains)			(2,512	)			(49,618	)			(5,333	)			(41,102	)
Cash receipts (payments) to settle derivatives			9,211				654				61,147				(46,086	)
Deferred income taxes			(12,496	)			(1,554	)			(83,224	)			58,551
Dry hole and unproved leasehold expense			2,802				20,855				33,278				35,847
Other			4,660				7,214				20,724				(18,904	)
Operating cash flow (see attached table
"Certain Non-GAAP Financial Measures")			74,382				95,740				280,517				413,826
Changes in operating assets and liabilities			(20,458	)			11,347				(4,570	)			(30,052	)
Net cash provided by operating activities			53,924				107,087				275,947				383,774
Cash flows from investing activities
Acquisitions			(8,633	)			(15,562	)			(46,894	)			(293,747	)
Additions to property and equipment			(20,901	)			(193,308	)			(239,459	)			(585,339	)
Other			7,543				(435	)			16,241				33,519
Net cash used in investing activities			(21,991	)			(209,305	)			(270,112	)			(845,567	)
Cash flows from financing activities
Dividends paid			(2,558	)			(2,361	)			(9,836	)			(9,398	)
Distributions paid to noncontrolling interest holders			(22,806	)			(18,416	)			(78,171	)			(64,245	)
Proceeds from (repayments of) bank borrowings			-				(38,889	)			(7,542	)			7,542
Net proceeds from (repayments of) PVA borrowings			-				152,000				(332,000	)			210,000
Net proceeds from PVR borrowings			(8,000	)			10,000				52,000				156,000
Net proceeds from issuance of PVA senior notes			-				-				291,009				-
Net proceeds from issuance of PVR partners' capital			-				-				-				138,141
Net proceeds from sale of PVG units			-				-				118,080				-
Net proceeds from issuance of PVA equity			-				-				64,835				-
Other			(5,272	)			(785	)			(24,217	)			7,564
Net cash provided by financing activities			(38,636	)			101,549				74,158				445,604
Net increase (decrease) in cash and cash equivalents			(6,703	)			(669	)			79,993				(16,189	)
Cash and cash equivalents - beginning of period			105,034				19,007				18,338				34,527
Cash and cash equivalents - end of period		$	98,331			$	18,338			$	98,331			$	18,338

PENN VIRGINIA CORPORATION
QUARTERLY SEGMENT INFORMATION - unaudited
(in thousands except where noted)
Three months ended December 31, 2009		Oil and Gas								Coal and Natural Resource Management			Natural Gas Midstream				Eliminations and Other				Consolidated
		Amount				per Mcfe (a)
Production
Total natural gas, crude oil and NGLs (MMcfe)			11,328
Natural gas (MMcf)			9,480
Crude oil (MBbls)			162
NGLs (MBbls)			146
Coal royalty tons (thousands of tons)											8,456
Midstream system throughput volumes (MMcf)														27,902
Revenues
Natural gas		$	40,361			$	4.26			$	-		$	-			$	-			$	40,361
Crude oil			11,846				73.12				-			-				-				11,846
NGLs			5,182				35.49				-			-				-				5,182
Natural gas midstream			-								-			155,907				(17,014	)			138,893
Coal royalties			-								29,987			-				-				29,987
Gain on sale of property and equipment			427								-			-				-				427
Other			1,176								6,038			2,969				18				10,201
Total revenues			58,992				5.21				36,025			158,876				(16,996	)			236,897
Expenses
Cost of midstream gas purchased			-								-			121,454				(16,179	)			105,275
Operating expense			12,911				1.14				2,080			6,093				(835	)			20,249
Exploration			3,383				0.30				-			-				-				3,383
Exploration - drilling rig standby charges			(530	)			(0.05	)			-			-				-				(530	)
Taxes other than income			3,800				0.34				558			1,028				31				5,417
General and administrative			6,655				0.59				3,107			3,640				7,811				21,213
Depreciation, depletion and amortization			31,187				2.74				7,773			10,491				756				50,207
Impairments on assets held for sale			9,500				0.84				-			-				-				9,500
Impairments			87				0.01				1,511			-				-				1,598
Total expenses			66,993				5.91				15,029			142,706				(8,416	)			216,312
Operating income (loss)		$	(8,001	)		$	(0.70	)		$	20,996		$	16,170			$	(8,580	)		$	20,585
Additions to property and equipment		$	21,805							$	206		$	7,180			$	343			$	29,534
Three months ended December 31, 2008		Oil and Gas								Coal and Natural Resource Management			Natural Gas Midstream				Eliminations and Other				Consolidated
		Amount				per Mcfe (a)
Production
Total natural gas, crude oil and NGLs (MMcfe)			13,226
Natural gas (MMcf)			11,624
Crude oil (MBbls)			175
NGLs (MBbls)			92
Coal royalty tons (thousands of tons)											8,715
Midstream system throughput volumes (MMcf)														29,786
Revenues
Natural gas		$	73,165			$	6.29			$	-		$	-			$	-			$	73,165
Crude oil			9,087				51.93				-			-				-				9,087
NGLs			2,405				26.14				-			-				-				2,405
Natural gas midstream			-								-			118,875				(23,352	)			95,523
Coal royalties			-								33,923			-				-				33,923
Gain on sale of property and equipment			91								-			-				-				91
Other			1,191								8,394			1,793				118				11,496
Total revenues			85,939				6.50				42,317			120,668				(23,234	)			225,690
Expenses
Cost of midstream gas purchased			-								-			98,752				(22,378	)			76,374
Operating expense			16,089				1.22				2,418			5,706				(975	)			23,238
Exploration			22,671				1.71				-			-				-				22,671
Taxes other than income			3,856				0.29				565			676				164				5,261
General and administrative			6,415				0.49				2,826			3,741				6,506				19,488
Depreciation, depletion and amortization			41,427				3.13				8,072			8,772				484				58,755
Impairments			19,963				1.51				-			31,801				-				51,764
Total expenses			110,421				8.35				13,881			149,448				(16,199	)			257,551
Operating income (loss)		$	(24,482	)		$	(1.85	)		$	28,436		$	(28,780	)		$	(7,035	)		$	(31,861	)
Additions to property and equipment		$	184,246							$	2,084		$	22,011			$	529			$	208,870

(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)
Year ended December 31, 2009		Oil and Gas								Coal and Natural Resource Management			Natural Gas Midstream			Eliminations and Other				Consolidated
		Amount				per Mcfe (a)
Production
Total natural gas, crude oil and NGLs (MMcfe)			51,000
Natural gas (MMcf)			43,338
Crude oil (MBbls)			750
NGLs (MBbls)			527
Coal royalty tons (thousands of tons)											34,330
Midstream system throughput volumes (MMcf)														121,335
Revenues
Natural gas		$	169,666			$	3.91			$	-		$	-		$	-			$	169,666
Crude oil			43,258				57.68				-			-			-				43,258
NGLs			15,735				29.86				-			-			-				15,735
Natural gas midstream			-								-			504,789			(76,773	)			428,016
Coal royalties			-								120,435			-			-				120,435
Gain on sale of property and equipment			2,345								-			-			-				2,345
Other			4,080								24,165			7,315			122				35,682
Total revenues			235,084				4.61				144,600			512,104			(76,651	)			815,137
Expenses
Cost of midstream gas purchased			-								-			406,583			(72,729	)			333,854
Operating expense			55,699				1.09				8,660			26,451			(4,044	)			86,766
Exploration			37,970				0.74				-			-			-				37,970
Exploration - drilling rig standby charges			19,784				0.39				-			-			-				19,784
Taxes other than income			16,556				0.32				1,704			3,090			723				22,073
General and administrative			22,625				0.44				13,867			16,301			27,207				80,000
Depreciation, depletion and amortization			150,429				2.96				31,330			38,905			2,703				223,367
Impairments on assets held for sale			97,400				1.91				-			-			-				97,400
Impairments			9,015				0.18				1,511			-			-				10,526
Loss on sale of assets			1,599				0.03				-			-			-				1,599
Total expenses			411,077				8.06				57,072			491,330			(46,140	)			913,339
Operating income (loss)		$	(175,993	)		$	(3.45	)		$	87,528		$	20,774		$	(30,511	)		$	(98,202	)
Additions to property and equipment		$	203,678							$	2,252		$	78,425		$	1,998			$	286,353
Year ended December 31, 2008		Oil and Gas								Coal and Natural Resource Management			Natural Gas Midstream			Eliminations and Other				Consolidated
		Amount				per Mcfe (a)
Production
Total natural gas, crude oil and NGLs (MMcfe)			46,881
Natural gas (MMcf)			41,493
Crude oil (MBbls)			506
NGLs (MBbls)			392
Coal royalty tons (thousands of tons)											33,690
Midstream system throughput volumes (MMcf)														98,683
Revenues
Natural gas		$	368,801			$	8.89			$	-		$	-		$	-			$	368,801
Crude oil			46,529				91.95				-			-			-				46,529
NGLs			21,292				54.32				-			-			-				21,292
Natural gas midstream			-								-			720,002			(130,219	)			589,783
Coal royalties			-								122,834			-			-				122,834
Gain on sale of property and equipment			30,634								792			-			-				31,426
Other			2,074								29,701			8,251			160				40,186
Total revenues			469,330				10.01				153,327			728,253			(130,059	)			1,220,851
Expenses
Cost of midstream gas purchased			-								-			612,530			(127,909	)			484,621
Operating expense			59,459				1.27				11,940			20,737			(2,245	)			89,891
Exploration			42,436				0.91				-			-			-				42,436
Taxes other than income			23,336				0.50				1,680			2,578			992				28,586
General and administrative			21,284				0.45				12,606			14,300			26,304				74,494
Depreciation, depletion and amortization			132,276				2.82				30,805			27,361			1,794				192,236
Impairments			19,963				0.43				-			31,801			-				51,764
Total expenses			298,754				6.37				57,031			709,307			(101,064	)			964,028
Operating income (loss)		$	170,576			$	3.64			$	96,296		$	18,946		$	(28,995	)		$	256,823
Additions to property and equipment		$	607,220							$	27,270		$	304,758		$	(60,162	)		$	879,086

(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								Year Ended
		December 31,								December 31,
		2009				2008				2009				2008
Reconciliation of GAAP "Net cash provided by operating activities" to Non-GAAP "Operating cash flow"
Net cash provided by operating activities		$	53,924			$	107,087			$	275,947			$	383,774
Adjustments:
Changes in operating assets and liabilities			20,458				(11,347	)			4,570				30,052
Operating cash flow (a)		$	74,382			$	95,740			$	280,517			$	413,826
Reconciliation of GAAP "Net income (loss) attributable to PVA" to Non-GAAP "Net income (loss) attributable to PVA, as adjusted"
Net income (loss) attributable to PVA		$	(5,351	)		$	(514	)		$	(114,643	)		$	121,084
Adjustments for derivatives:
Derivative losses (gains) included in income			(2,512	)			(49,618	)			(5,333	)			(41,102	)
Cash receipts (payments) to settle derivatives			9,211				654				61,147				(46,086	)
Adjustment for drilling rig standby charges			(530	)			-				19,784				-
Adjustment for impairments			11,098				51,764				107,926				51,764
Adjustment for net gains on sale of assets			(427	)			(91	)			(746	)			(31,426	)
Impact of adjustments on noncontrolling interests			(6,629	)			(3,033	)			(16,123	)			10,616
Impact of adjustments on income taxes			(5,183	)			11,616				(66,042	)			20,955
		$	(323	)		$	10,778			$	(14,030	)		$	85,805
Less: Portion of subsidiary net income (loss) allocated to undistributed share-based compensation awards, net of taxes			(42	)			(40	)			(116	)			(295	)
Net income (loss) attributable to PVA, as adjusted (b)		$	(365	)		$	10,738			$	(14,146	)		$	85,510
Net income (loss) attributable to PVA, as adjusted, per share, diluted		$	(0.01	)		$	0.26			$	(0.32	)		$	2.03

(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 (loss) attributable to PVA as adjusted represents net income (loss) attributable to PVA adjusted to exclude the effects of non-cash changes in the fair value of derivatives, drilling rig standby charges, impairments, gains and losses on the sale of assets and net income of PVR allocated to unvested PVR restricted units awarded as equity compensation 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 (loss) 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 December 31, 2009												Three months ended December 31, 2008
		As Reported				Adjustments				As Adjusted				As Reported				Adjustments				As Adjusted
Revenues
Natural gas		$	40,361			$	-			$	40,361			$	73,165			$	-			$	73,165
Crude oil			11,846				-				11,846				9,087				-				9,087
NGLs			5,182				-				5,182				2,405				-				2,405
Natural gas midstream			138,893				(138,893	)			-				95,523				(95,523	)			-
Coal royalties			29,987				(29,987	)			-				33,923				(33,923	)			-
Other			10,628				(9,007	)			1,621				11,587				(10,187	)			1,400
Total revenues			236,897				(177,887	)			59,010				225,690				(139,633	)			86,057
Expenses
Cost of midstream gas purchased			105,275				(105,275	)			-				76,374				(76,374	)			-
Operating			20,249				(8,173	)			12,076				23,238				(7,150	)			16,088
Exploration			3,383				-				3,383				22,671				-				22,671
Exploration - drilling rig standby charges			(530	)			-				(530	)			-				-				-
Taxes other than income			5,417				(1,586	)			3,831				5,261				(1,241	)			4,020
General and administrative			21,213				(7,146	)			14,067				19,488				(6,919	)			12,569
Depreciation, depletion and amortization			50,207				(18,264	)			31,943				58,755				(16,844	)			41,911
Impairments on assets held for sale			9,500				-				9,500				-				-				-
Impairments			1,598				(1,511	)			87				51,764				(31,801	)			19,963
Loss on sale of assets			-				-				-				-				-				-
Total expenses			216,312				(141,955	)			74,357				257,551				(140,329	)			117,222
Operating income (loss)			20,585				(35,932	)			(15,347	)			(31,861	)			696				(31,165	)
Other income (expense)
Interest expense			(18,552	)			6,167				(12,385	)			(13,986	)			7,306				(6,680	)
Derivatives			3,376				7,709				11,085				50,969				(23,261	)			27,708
Equity earnings in PVG and PVR			-				5,626				5,626				-				7,408				7,408
Other			338				(333	)			5				116				(333	)			(217	)
Income (loss) before taxes and noncontrolling interests			5,747				(16,763	)			(11,016	)			5,238				(8,184	)			(2,946	)
Income tax benefit (expense)			5,665				-				5,665				2,432				-				2,432
Net income (loss)			11,412				(16,763	)			(5,351	)			7,670				(8,184	)			(514	)
Less net income attributable to noncontrolling interests			(16,763	)			16,763				-				(8,184	)			8,184				-
Net income (loss) attributable to PVA		$	(5,351	)		$	-			$	(5,351	)		$	(514	)		$	-			$	(514	)
		Year ended December 31, 2009												Year ended December 31, 2008
		As Reported				Adjustments				As Adjusted				As Reported				Adjustments				As Adjusted
Revenues
Natural gas		$	169,666			$	-			$	169,666			$	368,801			$	-			$	368,801
Crude oil			43,258				-				43,258				46,529				-				46,529
NGLs			15,735				-				15,735				21,292				-				21,292
Natural gas midstream			428,016				(428,016	)			-				589,783				(589,783	)			-
Coal royalties			120,435				(120,435	)			-				122,834				(122,834	)			-
Other			38,027				(31,480	)			6,547				71,612				(38,744	)			32,868
Total revenues			815,137				(579,931	)			235,206				1,220,851				(751,361	)			469,490
Expenses
Cost of midstream gas purchased			333,854				(333,854	)			-				484,621				(484,621	)			-
Operating			86,766				(35,111	)			51,655				89,891				(30,367	)			59,524
Exploration			37,970				-				37,970				42,436				-				42,436
Exploration - drilling rig standby charges			19,784				-				19,784				-				-				-
Taxes other than income			22,073				(4,794	)			17,279				28,586				(4,258	)			24,328
General and administrative			80,000				(32,545	)			47,455				74,494				(28,976	)			45,518
Depreciation, depletion and amortization			223,367				(70,235	)			153,132				192,236				(58,166	)			134,070
Impairments on assets held for sale			97,400				-				97,400				-				-				-
Impairments			10,526				(1,511	)			9,015				51,764				(31,801	)			19,963
Loss on sale of assets			1,599				-				1,599				-				-				-
Total expenses			913,339				(478,050	)			435,289				964,028				(638,189	)			325,839
Operating income (loss)			(98,202	)			(101,881	)			(200,083	)			256,823				(113,172	)			143,651
Other income (expense)
Interest expense			(68,884	)			24,653				(44,231	)			(49,299	)			24,672				(24,627	)
Derivatives			11,854				19,714				31,568				46,582				(16,837	)			29,745
Equity earnings in PVG and PVR			-				21,592				21,592				-				42,162				42,162
Other			2,612				(1,353	)			1,259				(666	)			2,739				2,073
Income (loss) before taxes and noncontrolling interests			(152,620	)			(37,275	)			(189,895	)			253,440				(60,436	)			193,004
Income tax benefit (expense)			75,252				-				75,252				(71,920	)			-				(71,920	)
Net income (loss)			(77,368	)			(37,275	)			(114,643	)			181,520				(60,436	)			121,084
Less net income attributable to noncontrolling interests			(37,275	)			37,275				-				(60,436	)			60,436				-
Net income (loss) attributable to PVA		$	(114,643	)		$	-			$	(114,643	)		$	121,084			$	-			$	121,084

(a) Equity method income statements represent consolidated income statements, minus 100% of PVG’s consolidated results of operations, plus noncontrolling interest 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):
		December 31, 2009												December 31, 2008
		As Reported				Adjustments				As Adjusted				As Reported				Adjustments				As Adjusted
Assets
Current assets		$	306,542			$	(107,782	)		$	198,760			$	263,518			$	(126,299	)		$	137,219
Net property and equipment			2,352,358				(900,844	)			1,451,514				2,512,177				(895,119	)			1,617,058
Equity investment in PVG and PVR			-				155,692				155,692				-				241,296				241,296
Other assets			236,907				(210,437	)			26,470				220,870				(206,256	)			14,614
Total assets		$	2,895,807			$	(1,063,371	)		$	1,832,436			$	2,996,565			$	(986,378	)		$	2,010,187
Liabilities and shareholders' equity
Current liabilities		$	160,835			$	(86,323	)		$	74,512			$	247,594			$	(89,908	)		$	157,686
Long-term debt			1,118,527				(620,100	)			498,427				1,099,996				(568,100	)			531,896
Other liabilities and deferred taxes			264,558				(27,037	)			237,521				312,645				(31,143	)			281,502
																							-
PVA shareholders' equity			1,021,976				-				1,021,976				1,039,103				-				1,039,103
Noncontrolling interests			329,911				(329,911	)			-				297,227				(297,227	)			-
Total shareholders' equity			1,351,887				(329,911	)			1,021,976				1,336,330				(297,227	)			1,039,103
Total liabilities and shareholders' equity		$	2,895,807			$	(1,063,371	)		$	1,832,436			$	2,996,565			$	(986,378	)		$	2,010,187
Reconciliation of GAAP "Statement of Cash Flows As Reported" to Non-GAAP "Statement of Cash Flows, as Adjusted" (b):
		Three months ended December 31, 2009												Three months ended December 31, 2008
		As Reported				Adjustments				As Adjusted				As Reported				Adjustments				As Adjusted
Cash flows from operating activities
Net income (loss)		$	11,412			$	-			$	11,412			$	7,670			$	-			$	7,670
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization			50,207				(18,264	)			31,943				58,755				(16,844	)			41,911
Impairments			11,098				(1,511	)			9,587				51,764				(31,801	)			19,963
Derivative contracts:
Total derivative losses (gains)			(2,512	)			(8,466	)			(10,978	)			(49,618	)			21,909				(27,709	)
Cash receipts (payments) to settle derivatives			9,211				1,135				10,346				654				5,187				5,841
Deferred income taxes			(12,496	)		-					(12,496	)			(1,554	)			-				(1,554	)
Dry hole and unproved leasehold expense			2,802				-				2,802				20,855				-				20,855
Investment in PVG and PVR			-				(23,224	)			(23,224	)			-				(15,592	)			(15,592	)
Cash distributions from PVG and PVR			-				7,347				7,347				-				11,571				11,571
Other			4,660				(1,357	)			3,303				7,214				(2,631	)			4,583
Operating cash flow			74,382				(44,340	)			30,042				95,740				(28,201	)			67,539
Changes in operating assets and liabilities			(20,458	)			8,303				(12,155	)			11,347				(4,299	)			7,048
Net cash provided by operating activities			53,924				(36,037	)			17,887				107,087				(32,500	)			74,587
Net cash used in investing activities			(21,991	)			7,111				(14,880	)			(209,305	)			24,753				(184,552	)
																							-
Net cash provided by financing activities			(38,636	)			30,806				(7,830	)			101,549				8,416				109,965
Net increase (decrease) in cash and cash equivalents			(6,703	)			1,880				(4,823	)			(669	)			669				-
Cash and cash equivalents-beginning of period			105,034				(21,194	)			83,840				19,007				(19,007	)			-
Cash and cash equivalents-end of period		$	98,331			$	(19,314	)		$	79,017			$	18,338			$	(18,338	)		$	-
		Year ended December 31, 2009												Year ended December 31, 2008
		As Reported				Adjustments				As Adjusted				As Reported				Adjustments				As Adjusted
Cash flows from operating activities
Net income (loss)		$	(77,368	)		$	-			$	(77,368	)		$	181,520			$	-			$	181,520
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization			223,367				(70,235	)			153,132				192,236				(58,166	)			134,070
Impairments			107,926				(1,511	)			106,415				51,764				(31,801	)			19,963
Derivative contracts:
Total derivative losses (gains)			(5,333	)			(22,700	)			(28,033	)			(41,102	)			11,357				(29,745	)
Cash settlements of derivatives			61,147				(3,000	)			58,147				(46,086	)			38,466				(7,620	)
Deferred income taxes			(83,224	)			-				(83,224	)			58,551				-				58,551
Dry hole and unproved leasehold expense			33,278				-				33,278				35,847				-				35,847
Investment in PVG and PVR			-				(62,911	)			(62,911	)			-				(102,598	)			(102,598	)
Cash distributions from PVG and PVR			-				42,279				42,279				-				44,018				44,018
Other			20,724				(2,620	)			18,104				(18,904	)			(1,421	)			(20,325	)
Operating cash flow			280,517				(120,698	)			159,819				413,826				(100,145	)			313,681
Changes in operating assets and liabilities			(4,570	)			4,763				193				(30,052	)			6,976				(23,076	)
Net cash provided by operating activities			275,947				(115,935	)			160,012				383,774				(93,169	)			290,605
Net cash used in investing activities			(270,112	)			79,530				(190,582	)			(845,567	)			331,030				(514,537	)
																							-
Net cash provided by financing activities			74,158				35,429				109,587				445,604				(225,696	)			219,908
Net increase (decrease) in cash and cash equivalents			79,993				(976	)			79,017				(16,189	)			12,165				(4,024	)
Cash and cash equivalents-beginning of period			18,338				(18,338	)			-				34,527				(30,503	)			4,024
Cash and cash equivalents-end of period		$	98,331			$	(19,314	)		$	79,017			$	18,338			$	(18,338	)		$	-

(a) Equity method balance sheets represent consolidated balance sheets, minus 100% of PVG’s consolidated balance sheets, excluding noncontrolling interests 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 interests 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 2010.
			Actual
Oil & Gas Segment:			First Quarter 2009		Second Quarter 2009		Third Quarter 2009		Fourth Quarter 2009		YTD 2009		Full-Year 2010 Guidance
Production:
Natural gas (Bcf) - (a)			11.8		11.4		10.6		9.5		43.3		38.2	-	41.4
Crude oil (MBbls) - (a)			171		215		202		162		750		900	-	975
NGLs (MBbls)			147		140		94		146		527		575	-	625
Equivalent production (Bcfe)			13.7		13.6		12.4		11.3		51.0		47.0	-	51.0
Equivalent daily production (MMcfe per day)			152.3		149.5		134.9		123.1		139.7		128.8	-	139.7
Expenses:
Cash operating expenses ($ per Mcfe)		$	1.80		1.79		1.82		2.06		1.86		1.95	-	2.10
Exploration		$	21.3		17.5		16.1		2.8		57.7		40.0	-	50.0
Depreciation, depletion and amortization ($ per Mcfe)		$	2.92		2.94		3.17		2.74		2.96		3.00	-	3.10
Impairments		$	1.2		3.3		92.4		9.6		106.4
Capital expenditures:
Development drilling		$	76.5		37.3		8.3		18.1		140.2		250.0	-	275.0
Exploratory drilling		$	1.5		-		0.7		0.3		2.5		40.0	-	50.0
Pipeline, gathering, facilities		$	5.1		2.4		0.9		1.0		9.4		7.0	-	8.0
Seismic		$	0.7		0.4		0.1		-		1.2		10.0	-	11.0
Lease acquisition, field projects and other		$	1.8		2.8		5.8		8.1		18.5		68.0	-	81.0
Total segment capital expenditures		$	85.6		42.9		15.8		27.5		171.8		375.0	-	425.0
Coal and Natural Resource Segment (PVR):
Coal royalty tons (millions)			8.7		8.7		8.4		8.5		34.3		31.0	-	32.0
Revenues:
Average coal royalties per ton		$	3.50		3.43		3.56		3.55		3.51		3.30	-	3.40
Average coal royalties per ton, net of coal royalties expense		$	3.36		3.25		3.37		3.38		3.34		3.15	-	3.25
Other		$	7.6		5.1		5.4		6.0		24.1		21.0	-	22.0
Expenses:
Cash operating expenses		$	5.9		6.6		6.0		5.7		24.2		22.0	-	22.5
Depreciation, depletion and amortization		$	7.4		8.2		8.0		7.8		31.3		28.5	-	29.0
Capital expenditures:
Expansion and acquisitions		$	1.3		0.6		0.1		0.1		2.1		6.0	-	7.0
Other capital expenditures		$	-		-		-		0.2		0.2		-	-	0.5
Total segment capital expenditures		$	1.3		0.6		0.1		0.3		2.3		6.0	-	7.5
Natural Gas Midstream Segment (PVR):
System throughput volumes (MMcf per day) (b)			359		344		324		303		332		350	-	360
Expenses:
Cash operating expenses		$	11.8		11.6		11.6		10.8		45.8		55.0	-	60.0
Depreciation, depletion and amortization		$	9.1		9.5		9.8		10.5		38.9		42.0	-	44.0
Capital expenditures:
Expansion and acquisitions		$	11.2		10.3		37.9		5.0		64.4		34.0	-	42.0
Other capital expenditures		$	3.3		1.4		1.4		2.3		8.4		16.0	-	18.0
Total segment capital expenditures		$	14.5		11.7		39.3		7.3		72.8		50.0	-	60.0
Corporate and Other:
General and administrative expense - PVA		$	5.2		5.8		6.4		7.4		24.8		22.0	-	24.0
General and administrative expense - PVG		$	0.5		0.6		0.9		0.4		2.4		2.5	-	3.0
Interest expense:
PVA end of period debt outstanding		$	591.5		564.3		496.3		498.4		498.4
PVA average interest rate			4.3%		6.0%		9.8%		12.6%		8.2%
PVR end of period debt outstanding		$	595.1		597.1		628.1		620.1		620.1
PVR average interest rate			3.9%		4.2%		4.2%		3.9%		4.1%
Income tax rate			38.8%		39.7%		38.7%		51.4%		39.6%
Cash distributions received from PVG and PVR		$	11.5		11.6		11.5		7.6		42.2
Other capital expenditures		$	0.6		0.9		0.2		0.3		2.0		1.5	-	2.0
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)
Notes to Guidance Table:
(a) The following table shows our current derivative positions in the oil and gas segment as of December 31, 2009:
				Weighted Average Price
		Average Volume Per Day		Additional Put Option		Floor		Ceiling
Natural gas costless collars		(MMBtu)		($ per MMBtu)
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		30,000				5.67		7.58
Third quarter 2011		30,000				5.67		7.58
Fourth quarter 2011		20,000				6.00		8.50
First quarter 2012		20,000				6.00		8.50
Natural gas three-way collars (1)		(MMBtu)		($ per MMBtu)
First quarter 2010		30,000		6.83		9.50		13.60
Natural gas swaps		(MMBtu)		($ per MMBtu)
First quarter 2010		15,000				6.19
Second quarter 2010		30,000				6.17
Third quarter 2010		30,000				6.17
Crude oil costless collars		(barrels)		($ per barrel)
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

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 2010 would increase or decrease by approximately $17.8 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 2010 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)
(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 December 31, 2009:

				Average Volume		Swap		Weighted Average Price
				Per Day		Price		Put		Call
Crude oil collar				(barrels)				($ per barrel)
First quarter 2010 through fourth quarter 2010				750				70.00		81.25
Crude oil collar				(barrels)				($ per barrel)
First quarter 2010 through fourth quarter 2010				1,000				68.00		80.00
Natural gas purchase swap				(MMBtu)		($ per MMbtu)
First quarter 2010 through fourth quarter 2010				5,000		5.815
NGL - natural gasoline collar				(gallons)				(per gallon)
First quarter 2011 through fourth quarter 2011				60,000				$1.55		$1.92
Crude oil collar				(barrels)				(per barrel)
First quarter 2011 through fourth quarter 2011				400				$75.00		$98.50
Natural gas purchase swap				(MMBtu)		($ per MMBtu)
First quarter 2011 through fourth quarter 2011				3,000		6.430

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 2010 would decrease or increase by approximately $6.9 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 2010 would increase or decrease by approximately $11.5 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.