Canaccord Genuity 5th Annual Global Energy Conference Investor Presentation October 13, 2011 NYSE: PVA Eagle Ford Shale Drilling Rig Gonzales County, Texas
PVA Overview PVA is positioned in a number of prominent oil and gas plays in the U.S. Active in the Eagle Ford Shale, Granite Wash and Marcellus Shale Significant HBP positions in the Cotton Valley, Haynesville Shale, Selma Chalk and…
PVAs Growth Strategy is Sound Cash Flow Ramp Expected, Along With Higher Oil/Liquids Reserves and Production GastoOil transition underway Built Eagle Ford position from initial 4,000 acres to current 14,700 acres in one year Grown…
PVA is Financially Sound Liquidity and Cash Flows Among Best for HighGrowth, SmallCap E&Ps Conservative Leverage Liquidity is strong; expected to increase Immediate liquidity of 264MM at June 30, 2011, 4.5x 45% 4.0x 37.9% 40%…
Cash Flow Growth is Expected CFPS and EBITDAX Growth in Line With Most Peers Who Have Smaller Bases to Grow From Expected growth in cash flow is in line with peers through 20121 Growth is fullyfunded Expected growth in EBITDAX1 will…
PVA Appears Undervalued and Oversold Valuation Multiples At or Below Low End of Ranges for Less Liquid and Smaller Peers 2012E CFPS and EBITDAX Multiples Trades at 1.2x analysts mean 2012E CFPS1 5.0x Selected peers trade at a mean…
What is Our Response Focus on Drilling the Eagle Ford and Look to Expand Our Oil Inventory in the NearTerm Continue to increase oil and liquids exposure 4045% of 4Q11 production vs. 18% in 2010; cash flows expected to accelerate…
Core Operating Regions Emerging Oil and LiquidsRich Plays Plus Option in Significant Gas Plays 2011E CAPEX: 360MM 380MM 86% Oil & LiquidsRich Plays 2011E Production: 48.550.5 Bcfe 3032% Oil & Liquids; 4045% by 4Q11 2011E…
Eagle Ford Shale: Volatile Oil Excellent Early Results; Looking to Expand Acreage Position Positioning Eagle Ford Shale 14,700 net acres in Gonzales Co., TX Operator with 83% WI and 63% NRI 17 wells currently producing Up to 130…
Eagle Ford Shale: Play Activity Map Located in the Volatile Oil Window Near Strong, Early Industry Results PVAs Gonzales County Eagle Peers With Peers Fayette County Ford Acreage and Potential Acreage PVA PVA / MHR / EOG Near…
Eagle Ford Shale: Excellent Early Results PVA Has Reported Some of the Best Industry Results in the Volatile Oil Window Initial 12 wells had an average peak gross production rate of 1,105 BOEPD Average 30day gross production rate of…
MidContinent: LiquidsRich Play Types HighMargin, LiquidRich Reserves and Production Positioning Anadarko Basin CHK development drilling JV 10,000 net acres in Washita Co. Operate about onethird; 28% WI 80 drilling locations in JV…
Marcellus Shale Exploration Efforts Under Way in North Central Pennsylvania Positioning Marcellus Shale 55,000 net acres primarily in Pennsylvania 35,000 net acres in Potter / Tioga Cos. 20,000 net acres in SW PA Operator with 87%…
East Texas & Mississippi: Gas Optionality LowCost, HighPotential, Largely HBP Natural Gas Cotton Valley / Haynesville Shale ETX Horizontal Cotton Valley Selma Chalk 5.0 Bcfe PUDs; 35% liquids 2.54 PV10 breakeven gas price 79 gross…
Quality Inventory of Drilling Locations PVA is WellPositioned in a Number of Leading Oil & Gas Plays All core plays are economic at 20122013 future strip pricing Focused on Eagle Ford Shale and Granite Wash in 2011 Significant…
Spending Less Overall, But More in Oil & Liquids 2007 2011 Capital Spending Increasingly Allocated to Oil & NGLs In 2010 we focused CAPEX on drilling in the Granite Wash with high rates of return For 2011 and beyond, well be focused on…
2011 Capital Expenditures 360 380MM of 2011 Capital Spending, 86% Targeting Oil & LiquidsRich Plays Expected 201112 Capital Programs: Fully Funded 18 Note: 2011 data based on latest guidance announced 8/3/11; see Appendix
Track Record of Value Creation Lower DrillBit F&D and Higher Rates of Return on Drilling Relative to Peers in 2010 Historical statistics place PVA among the best in class 2010 was no exception Ranked 3rd in drillbit F&D and 7th in…
Oil & Gas Price Sensitivities Plenty to Do Despite Uncertain / Weak Commodity Price Environment All core plays are economic at current 20122013 futures strip pricing Our drilling is rateofreturn driven; our outspend is highly…
Why PVA A Track Record of Growth and Value Generation Diversified and valuable portfolio of highquality assets Track record of lowcost, highreturn operations Allocating capital to build oil and liquids production Ample supply of…
Appendix Haynesville Shale Drilling Rig Harrison County, Texas
Value Proposition PVA Appears to be Significantly Undervalued on a Reasonable SumoftheParts Basis PVA trades at about 36% of its sumoftheparts NAV, even though that value assumes an oil price lower than and a gas price within a…
Natural Gas Hedges Protecting our Capital Budget and Well Economics 60% of our natural gas price exposure is hedged for the remainder of 2011 1 As of 8/3/11; crude oil hedges include 360 BOPD collars 80 x 103 and 500 BOPD swaps…
2011 Guidance Table As of August 3, 2011 25 Dollars in millions, except per unit data; based on latest guidance announced 8/3/11
NonGAAP Reconciliations 26
Penn Virginia Corporation 4 Radnor Corporate Center, Suite 200 Radnor, PA 19087 6106878900 www.pennvirginia.com Granite Wash Drilling Rigs Washita County, Oklahoma
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