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

Third Quarter 2008 Highlights and Guidance Update

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

Quarterly record oil and gas production of 11.7 billion cubic feet of natural gas equivalent (Bcfe), or 127.1?million cubic feet of natural gas equivalent (MMcfe) per day, as compared to 11.1 Bcfe, or 120.7 MMcfe per day;
Quarterly record operating income of $122.3 million, as compared to $51.9 million;
Operating cash flow, a non-GAAP (generally accepted accounting principles) measure, of $97.5?million as compared to $78.9 million;
Quarterly record adjusted net income, a non-GAAP measure which excludes the effects of a non-cash change in derivatives fair value, of $46.1 million, or $1.08 per diluted share, as compared to $18.6 million, or $0.49 per diluted share;
Quarterly record net income of $123.7 million, or $2.90 per diluted share, as compared to net income of $17.1 million, or $0.45 per diluted share; and
Full-year oil and gas production guidance of between 46.5 and 47.5 Bcfe, or between 127.0 and 129.8 MMcfe per day, as compared to the previous guidance range of 46.5 to 48.0 Bcfe.

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

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

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

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

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

Management Comment

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

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

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

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

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

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

Oil and Gas Segment Review

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

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

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

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

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

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

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

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

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

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

Operating income for PVR Coal & Natural Resource Management increased 48 percent to $26.3 million in the third quarter of 2008 from $17.7 million in the prior year quarter. Hurricane-related curtailments caused operating income for PVR Midstream to decrease two percent to $13.7 million in the third quarter of 2008 from $14.1 million in the prior year quarter. Financial and operational results and full-year 2008 guidance for each of these segments are provided in the financial tables later in this release. In addition, operational updates for these segments are discussed in more detail in PVR?s news release dated November 5, 2008 (please visit PVR?s website, www.pvresource.com under ?For Investors,? for a copy of the release).

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

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

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

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

Capital Resources and Impact of Derivatives

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

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

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

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

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

Guidance for 2008

See the Guidance Table included in this release for guidance estimates for full-year 2008. These estimates, including capital expenditure plans, are meant to provide guidance only and are subject to revision as PVA?s and PVR?s operating environments change.

Third Quarter 2008 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss third quarter 2008 financial and operational results for PVA, is scheduled for Thursday, November 6, 2008 at 3:00 p.m. ET. Prepared remarks by A. James Dearlove, President and Chief Executive Officer, will be followed by a question and answer period. Investors and analysts may participate via phone by dialing 1-877-407-9205 five to ten minutes before the scheduled start of the conference call, or via webcast by logging on to PVA?s website at www.pennvirginia.com at least 20 minutes prior to the scheduled start of the call to download and install any necessary audio software. A telephonic replay of the call will be available until November 20, 2008 at 11:59 p.m. ET by dialing 1-877-660-6853 and using the following replay pass codes: account #286, conference ID #300120. An on-demand replay of the conference call will be available at PVA?s website beginning shortly after the call.

Headquartered in Radnor, PA and a member of the S&P SmallCap 600 Index, Penn Virginia Corporation (NYSE: PVA - News) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of reserves in onshore regions of the United States, including the Cotton Valley play in East Texas, the Selma Chalk play in Mississippi, the Mid-Continent region, the Appalachian Basin and the Gulf Coast of Louisiana and Texas. PVA also owns approximately 77 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG - News), the owner of the general partner and the largest unitholder of Penn Virginia Resource Partners, L.P. (NYSE: PVR - News), a manager of coal and natural resource properties and related assets and the operator of a midstream natural gas gathering and processing business. For more information, please visit PVA?s website at www.pennvirginia.com.

Certain statements contained herein that are not descriptions of historical facts are ?forward-looking? statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the volatility of commodity prices for natural gas, NGLs, crude oil and coal; our ability to develop and replace oil and gas reserves and the price for which such reserves can be acquired; the relationship between natural gas, NGL, oil and coal prices; the projected demand for and supply of natural gas, NGLs, crude oil and coal; the availability and costs of required drilling rigs, production equipment and materials; our ability to obtain adequate pipeline transportation capacity for our oil and gas production; competition among producers in the oil and natural gas and coal industries generally and among natural gas midstream companies; the extent to which the amount and quality of actual production of our oil and natural gas or PVR?s coal differs from estimated proved oil and gas reserves and recoverable coal reserves; PVR?s ability to generate sufficient cash from its businesses to maintain and pay the quarterly distribution to its general partner and its unitholders; the experience and financial condition of PVR?s coal lessees and natural gas midstream customers, including the lessees? ability to satisfy their royalty, environmental, reclamation and other obligations to PVR and others; operating risks, including unanticipated geological problems, incidental to our business and to PVR?s coal or natural gas midstream business; PVR?s ability to acquire new coal reserves or natural gas midstream assets and new sources of natural gas supply and connections to third-party pipelines on satisfactory terms; PVR?s ability to retain existing or acquire new natural gas midstream customers and coal lessees; the ability of PVR?s lessees to produce sufficient quantities of coal on an economic basis from PVR?s reserves and obtain favorable contracts for such production; the occurrence of unusual weather or operating conditions including force majeure events; delays in anticipated start-up dates of our oil and natural gas production, of PVR?s lessees? mining operations and related coal infrastructure projects and new processing plants in PVR?s natural gas midstream business; environmental risks affecting the drilling and producing of oil and gas wells, the mining of coal reserves or the production, gathering and processing of natural gas; the timing of receipt of necessary governmental permits by us and by PVR or PVR?s lessees; hedging results; accidents; changes in governmental regulation or enforcement practices, especially with respect to environmental, health and safety matters, including with respect to emissions levels applicable to coal-burning power generators; uncertainties relating to the outcome of current and future litigation regarding mine permitting; risks and uncertainties relating to general domestic and international economic (including inflation, interest rates and financial and credit markets) and political conditions (including the impact of potential terrorist attacks); and PVG?s ability to generate sufficient cash from its interests in PVR to maintain and pay the quarterly distribution to its general partner and its unitholders.

Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2007. Many of the factors that will determine our future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management?s views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as the result of new information, future events or otherwise.

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PENN VIRGINIA CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS - unaudited

(in thousands, except per share data)

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Three Months Ended Nine Months Ended

September 30, September 30,

? 2008 ? ? 2007 ? ? 2008 ? ? 2007 ?

Revenues

Natural gas $ 101,911 $ 65,310 $ 295,636 $ 193,961

Crude oil 13,764 6,299 37,442 14,985

Natural gas liquids (NGLs) 10,481 1,290 18,887 3,458

Natural gas midstream 184,914 100,370 494,260 310,095

Coal royalties 33,308 24,426 88,911 73,455

Gain on the sale of property and equipment 31,279 12,312 31,335 12,436

Other ? 9,955 ? ? 5,751 ? ? 28,690 ? ? 16,036 ?

Total revenues ? 385,612 ? ? 215,758 ? ? 995,161 ? ? 624,426 ?

Expenses

Cost of midstream gas purchased 155,564 76,192 408,247 251,000

Operating 23,437 17,602 66,653 47,557

Exploration 8,346 12,873 19,765 23,610

Taxes other than income 7,671 5,156 23,325 15,995

General and administrative (excluding equity-based compensation) 16,211 15,109 49,299 42,616

Equity-based compensation - (a) 2,078 1,330 5,707 3,923

Impairment of oil and gas properties - 2,405 - 2,405

Depreciation, depletion and amortization ? 49,978 ? ? 33,207 ? ? 133,481 ? ? 89,823 ?

Total expenses ? 263,285 ? ? 163,874 ? ? 706,477 ? ? 476,929 ?

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

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Other income (expense)

Interest expense (11,938 ) (10,843 ) (31,600 ) (25,878 )

Other (4,088 ) 576 (782 ) 2,536

Derivatives ? 125,132 ? ? (4,455 ) ? (4,387 ) ? (22,068 )

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

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Minority interest 28,276 9,135 52,252 27,659

Income tax expense ? 79,419 ? ? 10,913 ? ? 75,792 ? ? 29,033 ?

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

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Per share data:

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Net income per share, basic $ 2.95 ? $ 0.45 ? $ 2.96 ? $ 1.20 ?

Net income per share, diluted - (b) $ 2.90 ? $ 0.45 ? $ 2.94 ? $ 1.19 ?

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Weighted average shares outstanding, basic 41,881 37,898 41,715 37,748

Weighted average shares outstanding, diluted 42,544 38,213 42,028 38,045

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Three Months Ended Nine Months Ended

September 30, September 30,

? 2008 ? ? 2007 ? ? 2008 ? ? 2007 ?

Production

Natural gas (MMcf) 10,046 10,407 29,869 27,872

Crude oil (MBbls) 117 87 331 240

NGLs (MBbls) 157 29 300 96

Total natural gas, crude oil and NGL production (MMcfe) 11,690 11,102 33,655 29,888

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Prices

Natural gas ($ per Mcf) $ 10.14 $ 6.28 $ 9.90 $ 6.96

Crude oil ($ per Bbl) $ 117.64 $ 72.40 $ 113.12 $ 62.44

NGLs ($ per Bbl) $ 66.76 $ 44.48 $ 62.96 $ 36.02

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

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

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PENN VIRGINIA CORPORATION

CONSOLIDATED BALANCE SHEETS - unaudited

(in thousands)

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September 30, December 31,

2008 2007

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Assets

Current assets $ 251,173
$
244,072

Net property and equipment 2,399,454 1,899,014

Other assets 259,994 110,375

Total assets $ 2,910,621 $ 2,253,461

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Liabilities and shareholders' equity

Current liabilities $ 285,490 $ 261,899

Long-term debt of PVA 410,000 352,000

Long-term debt of PVR 558,100 399,153

Other liabilities and deferred taxes 327,075 251,149

Minority interests of subsidiaries 309,191 179,162

Shareholders' equity 1,020,765 810,098

Total liabilities and shareholders' equity $ 2,910,621 $ 2,253,461

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CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited

(in thousands)

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Three Months Ended Nine Months Ended

September 30, September 30,

2008 2007 2008 2007

Cash flows from operating activities

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

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

Depreciation, depletion and amortization 49,978 33,207 133,481 89,823

Derivative contracts:

Total derivative losses (gains) (123,628 ) 6,053 8,516 25,569

Cash settlements of derivatives (19,755 ) 586 (46,740 ) 2,281

Deferred income taxes 62,050 9,218 61,545 21,902

Minority interest 28,276 9,135 52,252 27,659

Gain on sale of property and equipment (31,279 ) (12,312 ) (31,335 ) (12,436 )

Impairment of oil and gas properties - 2,405 - 2,405

Dry hole and unproved leasehold expense 5,520 11,991 14,992 20,707

Other 2,622 ? 1,523 ? 1,504 ? 2,918 ?

Operating cash flow (see attached table "Certain Non-GAAP Financial Measures")
97,522 78,920 318,086 226,223

Changes in operating assets and liabilities (5,727 ) (2,736 ) (41,399 ) (17,242 )

Net cash provided by operating activities 91,795 ? 76,184 ? 276,687 ? 208,981 ?

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Cash flows from investing activities

Acquisitions (162,078 ) (162,794 ) (278,185 ) (239,018 )

Additions to property and equipment (162,857 ) (109,685 ) (392,031 ) (308,987 )

Other 33,215 ? 29,142 ? 33,954 ? 29,385 ?

Net cash used in investing activities (291,720 ) (243,337 ) (636,262 ) (518,620 )

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Cash flows from financing activities

Dividends paid (2,351 ) (2,130 ) (7,037 ) (6,370 )

Distributions paid to minority interest holders (17,917 ) (12,937 ) (45,829 ) (36,402 )

Borrowings from bank indebtedness 46,431 - 46,431 -

Net proceeds from (repayments of) PVA borrowings (25,000 ) 86,000 58,000 193,500

Net proceeds from PVR borrowings 176,600 89,000 146,000 146,000

Net proceeds from issuance of PVR partners' capital - - 138,015 -

Other (2,311 ) (188 ) 8,475 ? 7,376 ?

Net cash provided by financing activities 175,452 ? 159,745 ? 344,055 ? 304,104 ?

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Net decrease in cash and cash equivalents (24,473 ) (7,408 ) (15,520 ) (5,535 )

Cash and cash equivalents - beginning of period 43,480 ? 22,211 ? 34,527 ? 20,338 ?

Cash and cash equivalents - end of period $ 19,007 ? $ 14,803 ? $ 19,007 ? $ 14,803 ?

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PENN VIRGINIA CORPORATION

QUARTERLY SEGMENT INFORMATION - unaudited

(in thousands except where noted)

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Oil and Gas
Coal and Natural
Resource Management

Natural Gas
Midstream

Eliminations
and Other
Consolidated

Amount (per Mcfe)(a)

Three Months Ended September 30, 2008

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Production

Total natural gas, crude oil and NGLs (MMcfe) 11,690

Natural gas (MMcf) 10,046

Crude oil (MBbls) 117

NGLs (MBbls) 157

Coal royalty tons (thousands of tons) 8,496

Midstream system throughput volumes (MMcf) 27,744

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Revenues

Natural gas $ 101,911 $ 10.14 $ - $ - $ - $ 101,911

Crude Oil 13,764 117.64 - - - 13,764

NGL 10,481 66.76 - - - 10,481

Natural gas midstream - - 241,282 (56,368 ) 184,914

Coal royalties - 33,308 - - 33,308

Gain on the sale of property and equipment 30,509 770 - - 31,279

Other ? 60 ? ? 7,582 ? 2,334 ? (21 ) ? 9,955

Total revenues ? 156,725 ? 13.41 ? 41,660 ? 243,616 ? (56,389 ) ? 385,612

Expenses

Cost of midstream gas purchased - - - 211,262 (55,698 ) 155,564

Operating expense 15,067 1.29 2,877 6,164 (671 ) 23,437

Exploration 8,346 0.71 - - - 8,346

Taxes other than income 6,537 0.56 373 596 165 7,671

General and administrative 5,122 0.44 3,321 3,757 6,089 18,289

Depreciation, depletion and amortization ? 32,665 ? 2.79 ? 8,794 ? 8,109 ? 410 ? ? 49,978

Total expenses ? 67,737 ? 5.79 ? 15,365 ? 229,888 ? (49,705 ) ? 263,285

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Operating income (loss) $ 88,988 $ 7.62 $ 26,295 $ 13,728 $ (6,684 ) $ 122,327

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Additions to property and equipment and acquisitions $ 213,572 $ 497 $ 172,356 $ (61,490 ) $ 324,935

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Oil and Gas
Coal and Natural
Resource Management

Natural Gas
Midstream

Eliminations
and Other
Consolidated

Amount (per Mcfe)(a)

Three Months Ended September 30, 2007

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Production

Total natural gas, crude oil and NGLs (MMcfe) 11,102

Natural gas (MMcf) 10,407

Crude oil (MBbls) 87

NGLs (MBbls) 29

Coal royalty tons (thousands of tons) 8,842

Midstream system throughput volumes (MMcf) 17,844

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Revenues

Natural gas $ 65,310 $ 6.28 $ - $ - $ - $ 65,310

Crude Oil 6,299 72.40 - - 6,299

NGL 1,290 44.48 - - 1,290

Natural gas midstream - - 100,370 - 100,370

Coal royalties - 24,426 - - 24,426

Gain on the sale of property and equipment 12,312 - - - 12,312

Other ? 120 ? ? 3,990 ? 1,418 ? 223 ? ? 5,751

Total revenues ? 85,331 ? 7.69 ? 28,416 ? 101,788 ? 223 ? ? 215,758

Expenses

Cost of midstream gas purchased - - - 76,192 - 76,192

Operating expense 12,247 1.10 1,999 3,225 131 17,602

Exploration 12,873 1.16 - - - 12,873

Taxes other than income 4,380 0.39 242 424 110 5,156

General and administrative 4,124 0.37 2,630 3,076 6,609 16,439

Impairment of oil and gas properties 2,405 0.22 - - - 2,405

Depreciation, depletion and amortization ? 22,152 ? 2.00 ? 5,833 ? 4,812 ? 410 ? ? 33,207

Total expenses ? 58,181 ? 5.24 ? 10,704 ? 87,729 ? 7,260 ? ? 163,874

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Operating income (loss) $ 27,150 $ 2.45 $ 17,712 $ 14,059 $ (7,037 ) $ 51,884

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Additions to property and equipment and acquisitions $ 166,500 $ 93,449 $ 10,755 $ 1,775 $ 272,479

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(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.

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PENN VIRGINIA CORPORATION

YEAR-TO-DATE SEGMENT INFORMATION - unaudited

(in thousands except where noted)

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Oil and Gas
Coal and Natural
Resource Management

Natural Gas
Midstream

Eliminations
and Other
Consolidated

Amount (per Mcfe)(a)

Nine Months Ended September 30, 2008

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Production

Total natural gas, crude oil and NGLs (MMcfe) 33,655

Natural gas (MMcf) 29,869

Crude oil (MBbls) 331

NGLs (MBbls) 300

Coal royalty tons (thousands of tons) 24,975

Midstream system throughput volumes (MMcf) 68,915

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Revenues

Natural gas $ 295,636 $ 9.90 $ - $ - $ - $ 295,636

Crude Oil 37,442 113.12 - - - 37,442

NGLs 18,887 62.96 - - - 18,887

Natural gas midstream - - 601,127 (106,867 ) 494,260

Coal royalties - 88,911 - - 88,911

Gain on the sale of property and equipment 30,543 792 - - 31,335

Other ? 883 ? ? 21,307 ? 6,458 ? 42 ? ? 28,690

Total revenues ? 383,391 ? 11.39 ? 111,010 ? 607,585 ? (106,825 ) ? 995,161

Expenses

Cost of midstream gas purchased - - - 513,778 (105,531 ) 408,247

Operating expense 43,370 1.29 9,522 15,031 (1,270 ) 66,653

Exploration 19,765 0.59 - - - 19,765

Taxes other than income 19,480 0.58 1,115 1,902 828 23,325

General and administrative 14,869 0.44 9,780 10,559 19,798 55,006

Depreciation, depletion and amortization ? 90,849 ? 2.70 ? 22,733 ? 18,589 ? 1,310 ? ? 133,481

Total expenses ? 188,333 ? 5.60 ? 43,150 ? 559,859 ? (84,865 ) ? 706,477

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Operating income (loss) $ 195,058 $ 5.79 $ 67,860 $ 47,726 $ (21,960 ) $ 288,684

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?

Additions to property and equipment and acquisitions $ 422,974 $ 25,186 $ 282,747 $ (60,691 ) $ 670,216

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?

Oil and Gas
Coal and Natural
Resource Management

Natural Gas
Midstream

Eliminations
and Other
Consolidated

Amount (per Mcfe)(a)

Nine Months Ended September 30, 2007

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Production

Total natural gas, crude oil and NGLs (MMcfe) 29,888

Natural gas (MMcf) 27,872

Crude oil (MBbls) 240

NGLs (MBbls) 96

Coal royalty tons (thousands of tons) 25,186

Midstream system throughput volumes (MMcf) 50,763

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Revenues

Natural gas $ 193,961 $ 6.96 $ - $ - $ - $ 193,961

Crude oil 14,985 62.44 - - - 14,985

NGL 3,458 36.02 - - - 3,458

Natural gas midstream - - 310,095 - 310,095

Coal royalties - 73,455 - - 73,455

Gain on the sale of property and equipment 12,239 197 - 12,436

Other ? 868 ? ? 11,658 ? 3,143 ? 367 ? ? 16,036

Total revenues ? 225,511 ? 7.55 ? 85,310 ? 313,238 ? 367 ? ? 624,426

Expenses

Cost of midstream gas purchased - - - 251,000 - 251,000

Operating expense 31,190 1.04 6,668 9,567 132 47,557

Exploration 23,610 0.79 - - - 23,610

Taxes other than income 13,249 0.44 832 1,280 634 15,995

General and administrative 11,026 0.37 7,989 9,119 18,405 46,539

Impairment of oil and gas properties 2,405 0.08 - - - 2,405

Depreciation, depletion and amortization ? 58,628 ? 1.96 ? 16,643 ? 13,957 ? 595 ? ? 89,823

Total expenses ? 140,108 ? 4.68 ? 32,132 ? 284,923 ? 19,766 ? ? 476,929

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Operating income (loss) $ 85,403 $ 2.87 $ 53,178 $ 28,315 $ (19,399 ) $ 147,497

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?

Additions to property and equipment and acquisitions $ 367,558 $ 146,915 $ 28,619 $ 4,913 $ 548,005

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

? ? ? ?

PENN VIRGINIA CORPORATION

CERTAIN NON-GAAP FINANCIAL MEASURES - unaudited

(in thousands)

?

?

Three Months Ended Nine Months Ended

September 30, September 30,

? 2008 ? ? 2007 ? ? 2008 ? ? 2007 ?

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

Net cash provided by operating activities $ 91,795 $ 76,184 $ 276,687 $ 208,981

Adjustments:

Changes in operating assets and liabilities ? 5,727 ? ? 2,736 ? ? 41,399 ? ? 17,242 ?

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

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Reconciliation of GAAP "Net income" to Non-GAAP "Net income as adjusted"

Net income as reported $ 123,738 $ 17,114 $ 123,871 $ 45,395

Adjustments for derivatives:

Derivative losses included in operating income 1,504 1,597 4,129 3,500

Derivative losses (gains) included in other income (125,132 ) 4,456 4,387 22,069

Cash settlements of derivatives (19,755 ) 586 (46,740 ) 2,281

Impact of adjustments on minority interest (b) 16,755 (4,115 ) 13,649 (8,801 )

Impact of adjustments on income tax expense (c) ? 49,139 ? ? (968 ) ? 9,339 ? ? (7,429 )

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$ 46,249 $ 18,670 $ 108,635 $ 57,015

Less: Portion of subsidiary net income allocated to undistributed share-based compensation awards ? (219 ) ? (60 ) ? (418 ) ? (170 )

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

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

(a) - Operating cash flow represents net cash provided by operating activities before changes in operating assets and liabilities. Management believes that operating cash flow is widely accepted as a financial indicator of an energy company's ability to generate cash which is used to internally fund investing activities, service debt and pay dividends. Operating cash flow is widely used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies within the energy industry. Operating cash flow is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Operating cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities, as an indicator of cash flows, as a measure of liquidity or as an alternative to net income.

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

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

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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):

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Three Months Ended September 30 2008 Three Months Ended September 30 2007

As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted

Revenues

Natural gas $ 101,911 $ - $ 101,911 $ 65,310 $ - $ 65,310

Crude oil 13,764 - 13,764 6,299 - 6,299

NGLs 10,481 - 10,481 1,290 - 1,290

Natural gas midstream 184,914 (184,914 ) - 100,370 (100,370 ) -

Coal royalties 33,308 (33,308 ) - 24,426 (24,426 ) -

Gain on the sale of property and equipment 31,279 (770 ) 30,509 12,312 - 12,312

Other ? 9,955 ? ? (9,916 ) ? 39 ? ? 5,751 ? ? (5,408 ) ? 343 ?

Total revenues ? 385,612 ? ? (228,908 ) ? 156,704 ? ? 215,758 ? ? (130,204 ) ? 85,554 ?

Expenses

Cost of midstream gas purchased 155,564 (155,564 ) - 76,192 (76,192 ) -

Operating 23,437 (8,371 ) 15,066 17,602 (5,224 ) 12,378

Exploration 8,346 - 8,346 12,873 - 12,873

Taxes other than income 7,671 (969 ) 6,702 5,156 (666 ) 4,490

General and administrative 18,289 (7,618 ) 10,671 16,439 (5,980 ) 10,459

Impairment of oil and gas properties - - - 2,405 - 2,405

Depreciation, depletion and amortization ? 49,978 ? ? (16,903 ) ? 33,075 ? ? 33,207 ? ? (10,645 ) ? 22,562 ?

Total expenses ? 263,285 ? ? (189,425 ) ? 73,860 ? ? 163,874 ? ? (98,707 ) ? 65,167 ?

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Operating income 122,327 (39,483 ) 82,844 51,884 (31,497 ) 20,387

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Other income (expense)

Interest expense (11,938 ) 7,060 (4,878 ) (10,843 ) 4,678 (6,165 )

Derivatives 125,132 (15,742 ) 109,390 (4,455 ) 10,730 6,275

Equity earnings in PVG and PVR - 15,771 15,771 - 7,380 7,380

Other ? (4,088 ) ? 4,118 ? ? 30 ? ? 576 ? ? (426 ) ? 150 ?

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Income before minority interest and income taxes 231,433 (28,276 ) 203,157 37,162 (9,135 ) 28,027

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Minority interest 28,276 (28,276 ) - 9,135 (9,135 ) -

Income tax expense ? 79,419 ? ? - ? ? 79,419 ? ? 10,913 ? ? - ? ? 10,913 ?

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Net income $ 123,738 ? $ - ? $ 123,738 ? $ 17,114 ? $ - ? $ 17,114 ?

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Nine Months Ended September 30, 2008 Nine Months Ended September 30 2007

As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted

Revenues

Natural gas $ 295,636 $ - $ 295,636 $ 193,961 $ - $ 193,961

Crude oil 37,442 - 37,442 14,985 - 14,985

NGLs 18,887 - 18,887 3,458 - 3,458

Natural gas midstream 494,260 (494,260 ) - 310,095 (310,095 ) -

Coal royalties 88,911 (88,911 ) - 73,455 (73,455 ) -

Gain on the sale of property and equipment 31,335 (792 ) 30,543 12,436 (197 ) 12,239

Other ? 28,690 ? ? (27,765 ) ? 925 ? ? 16,036 ? ? (14,801 ) ? 1,235 ?

Total revenues ? 995,161 ? ? (611,728 ) ? 383,433 ? ? 624,426 ? ? (398,548 ) ? 225,878 ?

Expenses

Cost of midstream gas purchased 408,247 (408,247 ) - 251,000 (251,000 ) -

Operating 66,653 (23,217 ) 43,436 47,557 (16,235 ) 31,322

Exploration 19,765 - 19,765 23,610 - 23,610

Taxes other than income 23,325 (3,017 ) 20,308 15,995 (2,116 ) 13,879

General and administrative 55,006 (22,057 ) 32,949 46,539 (18,686 ) 27,853

Impairment of oil and gas properties - - - 2,405 - 2,405

Depreciation, depletion and amortization ? 133,481 ? ? (41,322 ) ? 92,159 ? ? 89,823 ? ? (30,600 ) ? 59,223 ?

Total expenses ? 706,477 ? ? (497,860 ) ? 208,617 ? ? 476,929 ? ? (318,637 ) ? 158,292 ?

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Operating income 288,684 (113,868 ) 174,816 147,497 (79,911 ) 67,586

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Other income (expense)

Interest expense (31,600 ) 17,366 (14,234 ) (25,878 ) 11,842 (14,036 )

Derivatives (4,387 ) 6,424 2,037 (22,068 ) 20,927 (1,141 )

Equity earnings in PVG and PVR - 34,754 34,754 - 20,728 20,728

Other ? (782 ) ? 3,072 ? ? 2,290 ? ? 2,536 ? ? (1,245 ) ? 1,291 ?

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Income before minority interest and income taxes 251,915 (52,252 ) 199,663 102,087 (27,659 ) 74,428

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Minority interest 52,252 (52,252 ) - 27,659 (27,659 ) -

Income tax expense ? 75,792 ? ? - ? ? 75,792 ? ? 29,033 ? ? - ? ? 29,033 ?

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Net income $ 123,871 ? $ - ? $ 123,871 ? $ 45,395 ? $ - ? $ 45,395 ?

(a) ? Equity method income statements represent consolidated income statements, minus 100% of PVG?s consolidated results of operations, plus minority interest which represents the portion of PVG?s consolidated results of operations that we do not own. PVA's management believes equity method income statements provide useful information to allow the public to more easily discern PVG?s effect on PVA's operations.

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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):

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September 30 2008 December 31, 2007

As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted

Assets

Current assets $ 251,173 $ (120,653 ) $ 130,520 $ 244,072 $ (114,707 ) $ 129,365

Net property and equipment 2,399,454 (884,737 ) 1,514,717 1,899,014 (731,282 ) 1,167,732

Equity investment in PVG and PVR - 228,615 228,615 - 202,297 202,297

Other assets ? 259,994 ? ? (242,046 ) ? 17,948 ? ? 110,375 ? ? (96,262 ) ? 14,113 ?

Total assets $ 2,910,621 ? $ (1,018,821 ) $ 1,891,800 ? $ 2,253,461 ? $ (739,954 ) $ 1,513,507 ?

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Liabilities and shareholders' equity

Current liabilities $ 285,490 $ (116,981 ) $ 168,509 $ 261,899 $ (133,918 ) $ 127,981

Long-term debt of PVA 410,000 - 410,000 352,000 - 352,000

Long-term debt of PVR 558,100 (558,100 ) - 399,153 (399,153 ) -

Other liabilities and deferred taxes 327,075 (34,549 ) 292,526 251,149 (27,721 ) 223,428

Minority interests of subsidiaries 309,191 (309,191 ) - 179,162 (179,162 ) -

Shareholders' equity ? 1,020,765 ? ? - ? ? 1,020,765 ? ? 810,098 ? ? - ? ? 810,098 ?

Total liabilities and shareholders' equity $ 2,910,621 ? $ (1,018,821 ) $ 1,891,800 ? $ 2,253,461 ? $ (739,954 ) $ 1,513,507 ?

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

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Three Months Ended September 30 2008 Three Months Ended September 30 2007

As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted

Cash flows from operating activities

Net income $ 123,738 $ - $ 123,738 $ 17,114 $ - $ 17,114

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

Depreciation, depletion and amortization 49,978 (16,903 ) 33,075 33,207 (10,645 ) 22,562

Derivative contracts:

Total derivative losses (gains) (123,628 ) 14,239 (109,389 ) 6,053 (12,034 ) (5,981 )

Cash settlements of derivatives (19,755 ) 14,054 (5,701 ) 586 4,702 5,288

Minority interest 28,276 (28,276 ) - 9,135 (9,135 ) -

Investment in PVG and PVR - (15,771 ) (15,771 ) - (7,380 ) (7,380 )

Gain on the sale of property and equipment (31,279 ) - (31,279 ) (12,312 ) - (12,312 )

Impairment of oil and gas properties - - - 2,405 - 2,405

Cash distributions from PVG and PVR - 10,967 10,967 - 9,142 9,142

Other ? 70,192 ? ? 1,130 ? ? 71,322 ? ? 22,732 ? ? 89 ? ? 22,821 ?

Operating cash flow 97,522 (20,560 ) 76,962 78,920 (25,261 ) 53,659

Changes in operating assets and liabilities ? (5,727 ) ? 10,853 ? ? 5,126 ? ? (2,736 ) ? 5,366 ? ? 2,630 ?

Net cash provided by (used in) operating activities ? 91,795 ? ? (9,707 ) ? 82,088 ? ? 76,184 ? ? (19,895 ) ? 56,289 ?

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Cash flows from investing activities

Acquisitions (162,078 ) 156,791 (5,287 ) (162,794 ) 93,423 (69,371 )

Additions to property and equipment (162,857 ) 16,062 (146,795 ) (109,685 ) 10,781 (98,904 )

Other ? 33,215 ? ? (982 ) ? 32,233 ? ? 29,142 ? ? - ? ? 29,142 ?

Net cash provided by (used in) investing activities ? (291,720 ) ? 171,871 ? ? (119,849 ) ? (243,337 ) ? 104,204 ? ? (139,133 )

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Cash flows from financing activities

Dividends paid (2,351 ) - (2,351 ) (2,130 ) - (2,130 )

Distributions paid to minority interest holders (17,917 ) 17,917 - (12,937 ) 12,937 -

Borrowings from bank indebtedness 46,431 - 46,431 - - -

Net proceeds from (repayments of) PVA borrowings (25,000 ) - (25,000 ) 86,000 - 86,000

Net proceeds from (repayments of) PVR borrowings 176,600 (176,600 ) - 89,000 (89,000 ) -

Other ? (2,311 ) ? 3,454 ? ? 1,143 ? ? (188 ) ? - ? ? (188 )

Net cash provided by (used in) financing activities ? 175,452 ? ? (155,229 ) ? 20,223 ? ? 159,745 ? ? (76,063 ) ? 83,682 ?

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Net increase (decrease) in cash and cash equivalents (24,473 ) 6,935 (17,538 ) (7,408 ) 8,246 838

Cash and cash equivalents-beginning balance ? 43,480 ? ? (25,942 ) ? 17,538 ? ? 22,211 ? ? (22,211 ) ? - ?

Cash and cash equivalents-ending balance $ 19,007 ? $ (19,007 ) $ - ? $ 14,803 ? $ (13,965 ) $ 838 ?

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Nine Months Ended September 30 2008 Nine Months Ended September 30 2007

As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted

Cash flows from operating activities

Net income $ 123,871 $ - $ 123,871 $ 45,395 $ - $ 45,395

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

Depreciation, depletion and amortization 133,481 (41,322 ) 92,159 89,823 (30,600 ) 59,223

Derivative contracts:

Total derivative losses (gains) 8,516 (10,552 ) (2,036 ) 25,569 (24,359 ) 1,210

Cash settlements of derivatives (46,740 ) 33,279 (13,461 ) 2,281 8,963 11,244

Minority interest 52,252 (52,252 ) - 27,659 (27,659 ) -

Investment in PVG and PVR - (34,754 ) (34,754 ) - (20,728 ) (20,728 )

Gain on the sale of property and equipment (31,335 ) - (31,335 ) (12,436 ) - (12,436 )

Impairment of oil and gas properties - - - 2,405 - 2,405

Cash distributions from PVG and PVR - 32,447 32,447 - 20,051 20,051

Other ? 78,041 ? ? 1,209 ? ? 79,250 ? ? 45,526 ? ? 837 ? ? 46,363 ?

Operating cash flow 318,086 (71,945 ) 246,141 226,222 (73,495 ) 152,727

Changes in operating assets and liabilities ? (41,399 ) ? 11,277 ? ? (30,122 ) ? (17,241 ) ? 8,338 ? ? (8,903 )

Net cash provided by operating activities ? 276,687 ? ? (60,668 ) ? 216,019 ? ? 208,981 ? ? (65,157 ) ? 143,824 ?

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Cash flows from investing activities

Acquisitions (278,185 ) 253,031 (25,154 ) (239,018 ) 145,879 (93,139 )

Additions to property and equipment (392,031 ) 54,902 (337,129 ) (308,987 ) 29,655 (279,332 )

Other ? 33,954 ? ? (1,657 ) ? 32,297 ? ? 29,385 ? ? (197 ) ? 29,188 ?

Net cash used in investing activities ? (636,262 ) ? 306,276 ? ? (329,986 ) ? (518,620 ) ? 175,337 ? ? (343,283 )

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Cash flows from financing activities

Dividends paid (7,037 ) - (7,037 ) (6,370 ) - (6,370 )

Distributions paid to minority interest holders (45,829 ) 45,829 - (36,402 ) 36,402 -

Borrowings from bank indebtedness 46,431 46,431 - - -

Net proceeds from PVA borrowings 58,000 - 58,000 193,500 - 193,500

Net proceeds from (repayments of) PVR borrowings 146,000 (146,000 ) - 146,000 (146,000 ) -

Net proceeds from issuance of PVR partners' capital 138,015 (138,015 ) - - - -

Other ? 8,475 ? ? 4,074 ? ? 12,549 ? ? 7,376 ? ? (860 ) ? 6,516 ?

Net cash provided by financing activities ? 344,055 ? ? (234,112 ) ? 109,943 ? ? 304,104 ? ? (110,458 ) ? 193,646 ?

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Net increase (decrease) in cash and cash equivalents (15,520 ) 11,496 (4,024 ) (5,535 ) (278 ) (5,813 )

Cash and cash equivalents-beginning balance ? 34,527 ? ? (30,503 ) ? 4,024 ? ? 20,338 ? ? (13,687 ) ? 6,651 ?

Cash and cash equivalents-ending balance $ 19,007 ? $ (19,007 ) $ - ? $ 14,803 ? $ (13,965 ) $ 838 ?

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

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

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PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited

(dollars in millions except where noted)

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

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Actual

First Quarter Second Quarter Third Quarter YTD Full-Year

2008 2008 2008 2008 2008 Guidance

Oil & Gas Segment:

Production:

Natural gas (Bcf) (a) 9.7 10.1 10.0 29.8 41.0 - 41.7

Crude oil (MBbls) 95 119 117 331.0 500.0 - 525.0

NGLs (MBbls) 34 109 157 300.0 425.0 - 450.0

Equivalent production (Bcfe) 10.6 11.4 11.7 33.7 46.5 - 47.5

Equivalent daily production (MMcfe per day) 115.6 125.7 127.2 123.0 127.0 - 129.8

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Expenses:

Cash operating expenses ($ per Mcfe) $ 2.34 2.30 2.29 2.31 2.20 - 2.30

Exploration $ 4.8 6.7 8.3 19.8 26.0 - 28.0

Depreciation, depletion and amortization ($ per Mcfe) $ 2.53 2.76 2.79 2.70 2.70 - 2.80

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Capital expenditures:

Development drilling $ 79.1 96.1 145.6 320.8 420.0 - 425.0

Exploratory drilling $ 5.4 6.1 6.6 18.1 28.0 - 36.0

Pipeline, gathering, facilities $ 4.9 8.8 14.3 28.0 45.0 - 50.0

Seismic $ 0.7 0.3 1.7 2.7 8.0 - 9.0

Lease acquisition, field projects and other $ 4.6 15.1 67.7 87.4 89.0 - 90.0

Total segment capital expenditures $ 94.7 126.4 235.9 457.0 590.0 - 610.0

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Coal and Natural Resource Segment (PVR):

Coal royalty tons (millions) 7.7 8.8 8.5 25.0 33.0 - 33.5

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Revenues:

Average coal royalties per ton $ 3.14 3.58 3.92 3.56 3.55 - 3.65

Other $ 6.3 7.4 8.4 22.1 27.0 - 28.0

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Expenses:

Cash operating expenses $ 6.3 7.5 6.6 20.4 25.5 - 26.5

Depreciation, depletion and amortization $ 6.4 7.5 8.8 22.7 30.0 - 31.0

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Capital expenditures:

Expansion and acquisitions $ 0.1 24.6 0.5 25.2 27.0 - 28.0

Maintenance capital expenditures $ - - - - 0.2 - 0.3

Total segment capital expenditures $ 0.1 24.6 0.5 25.2 27.2 - 28.3

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Natural Gas Midstream Segment (PVR):

System throughput volumes (MMcf per day) (b) 190 262 302 252 270 - 280

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Expenses:

Cash operating expenses $ 8.1 8.9 10.5 27.5 37.0 - 39.0

Depreciation, depletion and amortization $ 5.1 5.4 8.1 18.6 24.0 - 25.5

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Capital expenditures:

Expansion and acquisitions $ 16.4 86.3 196.6 299.3 325.0 - 335.0

Maintenance capital expenditures $ 3.1 3.9 3.8 10.8 14.0 - 15.0

Total segment capital expenditures $ 19.5 90.2 200.4 310.1 339.0 - 350.0

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Corporate and Other:

General and administrative expense - PVA (c) $ 5.9 6.6 5.6 18.1 24.0 - 25.0

General and administrative expense - PVG (c) $ 0.6 0.6 0.5 1.7 2.3 - 2.5

Interest expense:

PVA average long-term debt outstanding $ 374.5 417.5 424.3 402.4 430.0 - 440.0

PVA interest rate 5.0 % 4.1 % 4.1 % 4.3 % 4.3 % - 4.5 %

Percentage capitalized (d) 11.0 % 11.4 % 10.7 % 11.1 % 10.5 % - 11.5 %

PVR average long-term debt outstanding $ 412.5 411.8 510.1 454.3 485.0 - 495.0

PVR interest rate assumed 5.3 % 4.4 % 4.5 % 4.6 % 4.6 % - 4.8 %

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Minority interest in PVG and PVR $ 20.0 3.9 28.3 52.2
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(e)

Income tax rate 44 % 64 % 39 % 38 %
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(f)

Cash distributions received from PVG and PVR $ 10.4 10.9 10.9 32.2
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(g)

Other capital expenditures $ 0.3 0.2 0.7 1.2 1.0 1.5

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

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See Notes on subsequent pages.

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PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited - (continued)

(dollars in millions except where noted)

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Notes to Guidance Table:

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

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? ? Weighted Average Price

Average Volume Additional Put ? ?

Per Day Option Floor Ceiling

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Natural gas costless collars (in MMBtu) (per MMBtu)

Fourth quarter 2008 (1) 10,000 $ 7.50 $ 9.10

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Natural gas three-way collars (2) (in MMBtu) (per MMBtu)

Fourth quarter 2008 67,500 $ 5.89 $ 8.55 $ 11.26

First quarter 2009 65,000 $ 6.00 $ 8.67 $ 11.68

Second quarter 2009 40,000 $ 6.38 $ 8.75 $ 10.79

Third quarter 2009 40,000 $ 6.38 $ 8.75 $ 10.79

Fourth quarter 2009 30,000 $ 6.83 $ 9.50 $ 13.60

First quarter 2010 30,000 $ 6.83 $ 9.50 $ 13.60

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Natural gas basis swaps (in MMBtu) (per MMBtu)

Fourth quarter 2008 15,000 $ 0.39

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Crude oil three-way collars (2) (in barrels) (per barrel)

Fourth quarter 2008 500 $ 80.00 $ 110.00 $ 179.00

First quarter 2009 500 $ 80.00 $ 110.00 $ 179.00

Second quarter 2009 500 $ 80.00 $ 110.00 $ 179.00

Third quarter 2009 500 $ 80.00 $ 110.00 $ 179.00

Fourth quarter 2009 500 $ 80.00 $ 110.00 $ 179.00

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

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(1) This position expires in October 2008.

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

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PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited - (continued)

(dollars in millions except where noted)

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

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Weighted Average Price - Collars

Average Volume Per Day

Weighted Average Price

Additional Put Option

Put

Call

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Frac spread (in MMBtu) (per MMBtu)

Fourth quarter 2008 7,824 $ 5.02

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Ethane sale swap (in gallons) (per gallon)

Fourth quarter 2008 34,440 $ 0.4700

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Propane sale swaps (in gallons) (per gallon)

Fourth quarter 2008 26,040 $ 0.7175

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Crude oil sale swaps (in barrels) (per barrel)

Fourth quarter 2008 560 $ 49.27

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Natural gasoline collar (in gallons) (per gallon)

Fourth quarter 2008 6,300 $ 1.4800 $ 1.6465

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Crude oil collar (in barrels) (per barrel)

Fourth quarter 2008 400 $ 65.00 $ 75.25

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Natural gas sale swaps (in MMBtu) (per MMBtu)

Fourth quarter 2008 4,000 $ 6.97

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Crude oil three-way collar (1) (in barrels) (per barrel)

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

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Frac spread collar (in MMBtu) (per MMBtu)

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

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

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

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

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

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

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

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


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