Pritchard Capital Partners Energize 2012 Conference Investor Presentation January 4, 2012 NYSE: PVA Eagle Ford Shale Drilling Rig Gonzales County, Texas
PVA Overview Smallcap domestic onshore E&P company primarily active in the Eagle Ford Shale oil play Also active in the Granite Wash play with Chesapeake Significant HBP positions in Cotton Valley, Haynesville Shale, Selma Chalk,…
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 6,800 net acres to over 21,000 net acres in just over…
PVA is Financially Sound Liquidity and Financial Wherewithal Among Best for SmallCap E&Ps Leverage Ratios Liquidity is solid 4.5x 45% Immediate liquidity of 284MM (borrowing base 41.1% 4.0x 40% liquidity of 369MM) at September 30,…
EBITDAX and Cash Margin Growth Shift to Oil/Liquids Strategy Has Dramatically Improved Cash Flows EBITDAX has increased significantly since mid2010 when we began our strategic shift towards oil and NGL growth, with less focus on…
Cash Flow Growth is Expected 2012 CFPS and EBITDAX Growth in Line With Peers Expected growth in cash flow and EBITDAX is ahead of peers through 20121 Growth is fullyfunded Expected growth in EBITDAX will drive additional debt…
PVA Appears Undervalued and Oversold Valuation Multiples Well Below Less Liquid and Smaller Peers Trades at 1.1x analysts mean 2012E CFPS1 Selected peers trade at a mean of 3.0x1 Trades at 3.0x analysts mean 2012E EBITDAX Selected…
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 36% of 4Q11 production vs. 18% in FY10; cash flows expected to accelerate Eagle…
Core Operating Regions Emerging Oil and LiquidsRich Plays Plus Option in Significant Gas Plays 2011E CAPEX: 433MM 443MM 89% Oil & LiquidsRich Plays 2011E Production: 46.546.8 Bcfe 28% Oil & Liquids; 36% in 4Q11 2011E Production:…
Eagle Ford Shale: Volatile Oil Excellent Early Results; Looking to Expand Acreage Position Positioning Eagle Ford Shale Over 21,000 net acres in Gonzales and Lavaca Counties, TX Operator in Gonzales with 83% WI and 63% NRI…
Eagle Ford Shale: Play Activity Map Located in the Volatile Oil Window Near Strong, Early Industry Results PVAs Eagle Ford Acreage Peers With Peers Fayette County and Potential is Well Acreage PVA PVA / MHR / EOG Near PVA…
Eagle Ford Shale: Excellent Early Results PVA Has Reported Some of the Best Industry Results in the Volatile Oil Window Initial 20 wells had an average peak gross production rate of 1,012 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…
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 Most 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 433 443MM of 2011 Capital Spending, 89% Targeting Oil & LiquidsRich Plays Expected 201112 Capital Programs: Fully Funded 18 Note: 2011 data based on guidance announced 11/2/11; 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 Most 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
Crude Oil Hedges Protecting our Capital Budget and Well Economics We have recently expanded our crude oil hedges given our increased oil drilling activity Crude Oil Hedges1 Swaps and Collars 2,000 96.86 100 Weighted Average Floor…
Natural Gas Hedges Protecting our Capital Budget and Well Economics 38% of our natural gas price exposure is hedged for the remainder of 2011 Natural Gas Hedges1 Swaps and Collars 60 6 Weighted Avg. Floors and Swaps (/MMBtu)…
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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