Independent Petroleum Association of America OGIS Florida Investor Presentation February 2, 2012 NYSE: PVA
PVA Overview Smallcap domestic onshore E&P company primarily active in the Eagle Ford Shale oil play with excellent results Significant HBP positions in Cotton Valley, Haynesville Shale, Selma Chalk, and Appalachia Also active in…
PVAs Growth Strategy is Sound GastoOil / Liquids Has Increased Revenues and Cash Flows GastoOil transition underway Built Eagle Ford position from initial 6,800 net acres to over 21,000 net acres in just over one year Up to…
Production Growth is Shifting to Oil/Liquids Value Growth From 20092011 Due to Drive Towards Oil & NGLs In mid2010, PVA implemented a strategy to transition from dry gas to oil & liquids Since then, the decrease in gas prices and…
EBITDAX and Cash Margin Growth Shift to Oil/Liquids Strategy Has Dramatically Improved Cash Flow Margins EBITDAX has increased significantly since mid2010 when we began our strategic shift towards oil and NGL growth Gross operating…
PVA Appears Undervalued and Oversold Valuation Multiples Well Below GasLevered Peers Trades at 1.1x analysts mean 2012E CFPS1 Selected peers trade at a mean of 3.3x1 Trades at 3.0x analysts mean 2012E EBITDAX Selected peers trade…
What is Our Response Focus on Drilling the Eagle Ford and Look to Expand Our Oil Inventory Continue to increase oil and liquids exposure 36% of 4Q11 production guidance vs. 18% in FY10 Eagle Forddriven with goal to add more 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 4Q11E 2011E Production:…
Eagle Ford Shale The Most Economic Eagle Ford Shale Wells are in the Volatile Oil & Condensate Rich Gas Windows Premier Shale Oil & Liquids Play Volatile Oil Over 31,000 (22,000 net) acres in Gonzales and Lavaca Counties, TX1…
Eagle Ford Shale Premier Acreage Position in Volatile Oil Window; Lavaca AMI Provides Additional Upside PVAs Eagle Ford Acreage Volatile Oil Window and Potential is Well Gonzales Notable Industry Results Positioned Based on…
Eagle Ford Shale Positive Trends: Volumes Up, Costs Down During 2011, we quickly ramped up the Eagle Ford Shale to be our leading play We also reduced our average well cost during the second half of 2011 which, combined with strong…
Eagle Ford Shale Gonzales Type Curve Supported by Actual Wells Results Current type curve EUR of 400 MBOE; previously 280 MBOE Assuming 8.0 MM drilling and completion costs, the pretax rate of return for our average Eagle Ford well…
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…
Why PVA Investment Highlights Diversified and valuable portfolio of highquality assets Track record of lowcost, highreturn operations Drilling and acquisitions focused on high return play types Successful transition from dry…
Appendix
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 3.82 PV10 breakeven gas price 79 gross…
Crude Oil Hedges Protecting our Capital Budget and Well Economics We have recently expanded our crude oil hedges given our increased oil drilling activity Our oil hedges thus far are equal to or greater than our forecasted oil price…
Natural Gas Hedges Protecting our Cash Flows During Depressed Gas Price Environment Our 2012 natural gas hedges have locked in prices well above the forecast (2.70/MMBtu) Nevertheless, we are not drilling dry gas plays as the…
2011 Guidance Table As of December 13, 2011 1Q 3Q Fourth Quarter FullYear 2011 2011 Guidance 2011 Guidance Production: Natural gas (Bcf) 26.6 6.8 7.0 33.5 33.7 Crude oil (MBbls) 833 428 440 1,261 1,273 NGLs (MBbls) 695 214 220…
NonGAAP Reconciliations Adjusted EBITDAX Year ended December 31, LTM 9 Mos. Ended 2006 2007 2008 2009 2010 3Q11 Sep10 Sep11 Adjusted EBITDAX dollars in millions Net income (loss) from continuing operations 44.2 26.5 93.6 (130.9)…
Penn Virginia Corporation 4 Radnor Corporate Center, Suite 200 Radnor, PA 19087 6106878900 www.pennvirginia.com
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