Investor Presentation June 1416, 2011 NYSE: PVA Eagle Ford Shale Drilling Rig Gonzales County, Texas
Strategic Road Map NearTerm and LongTerm Strategies for Generating Value Maintain liquidity Completed 300 million senior note offering, netting over 50MM in cash Increase oil/NGL exposure Targeting high rate of return projects in…
Strategy Core Competencies for Value Growth RateofReturn Based Decisions Conservative commodity price outlook Diversified portfolio allows for efficient allocation of capital to projects and plays Fiscal Discipline offering the…
Core Operating Regions Emerging Oil and LiquidsRich Plays Plus Option in Significant Gas Plays 2011E CAPEX: 320MM 370MM 77% Oil & LiquidsRich Plays 2011E Production: 5054 Bcfe 2830% Oil & Liquids; 35% by 4Q11 2011E…
Track Record of Growth Quality Assets are the Foundation for Growth in All Cycles Solid growth over the past five years Increasing proportion of growth from oil and NGLs Trend should accelerate as a majority of future drilling…
Track Record of Value Creation Experienced People Provide the Foundation of Value Creation Record of delivering growth at relatively low operating cost Along with hedges, helps preserve margins when commodity prices are low…
Resource Profile PVA is Positioned in a Number of Leading Oil & Gas Plays Net Risked Henry Hub Gross Average Reserve Gas Price Undrilled Working Gross EUR Potential for Play Locations Interest (Bcfe/Well)1 (Bcfe)2 10% IRR3…
Rates of Return Balance Between Plays in Low Gas Price Environment PreTax Rates of Return Gas Price Sensitivity 80 70 60 50 40 30 20 10 0 3 4 5 6 7 NYMEX Gas Price (Flat) /MMBtu Eagle Ford Shale Horizontal Cotton Valley…
Investing More in Oil & Liquids 2007 2011 Capital Spending Increasingly Allocated to Oil & NGLs 10 Note: 2011 data based on latest guidance announced 5/4/11; see Appendix
2011 Capital Expenditures 320 370MM of 2011 Capital Spending, 77% Targeting Oil & LiquidsRich Plays Forecast uses 4.25/MMBtu and 90.00/Barrel 11 Note: 2011 data based on latest guidance announced 5/4/11; see Appendix
Eagle Ford Shale: Volatile Oil Promising Early Results and Expanding Acreage Position in Emerging Oily Core Area Positioning Eagle Ford Shale 12,700 net acres in Gonzales Co., TX Operator with 83% WI and 63% NRI 92 to 122 gross…
Eagle Ford Shale: Play Activity Map Located in the Volatile Oil Window Near Strong, Early Industry Results PVAs Gonzales County Eagle Peers With Peers PVA / MHR / EOG Fayette County Ford Acreage and Potential Acreage PVA Gardner…
Marcellus Shale: Economic Gas Exploration Efforts Under Way in North Central Pennsylvania Positioning Marcellus Shale 42,000 net core acres Potter / Tioga Cos. 35,000 net acres SW PA / NY 7,000 net acres 13,000 net noncore acres…
Marcellus Shale: Play Activity Map Located in the North Central Dry Gas Part of the Play Near Encouraging Industry Results PVAs Potter / Tioga Marcellus Position is McKean Located in Areas County PVA Acreage 35,000 Net Acres…
MidContinent: Liquids Rich Play Types HighMargin, LiquidRich Reserves and Production Positioning Anadarko Basin CHK development drilling JV 9,700 net acres in Washita Co. Operate about 1/3rd; 35% WI 80 drilling locations in JV…
East Texas & Mississippi: Gas Optionality LowCost, HighPotential 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 drilling…
Strong Financial Position Financial Flexibility to Execute Growth Plan Over the past few years, we have prudently managed our balance sheet Liquidity has remained strong over the past few years PVA remains wellpositioned to fund…
Natural Gas Hedges Protecting our Capital Budget and Well Economics 57% of our natural gas price exposure is hedged for the remainder of 2011 1 Natural Gas Hedges Swaps and Collars Weighted Avg. Floors and Swaps (/MMBtu) 80…
Value Proposition PVA Appears Significantly Undervalued on a SumoftheParts NAV per Share YE 2010 Net Asset Value Flat SEC Pricing NYMEX Pricing of: 4.38 1 5.00 2 6.00 2 Proved Developed Reserves3 786.2 918.6 1,093.9 3 Proved…
Why PVA A Track Record of Growth and Value Generation Diversified portfolio of highquality assets Management team with a track record Allocating capital to build oil and liquids production High rate of return play types Option on…
Appendix Granite Wash Pump Jack Washita County, Oklahoma
2011 Guidance Table As of May 4, 2011 FullYear 2011 Guidance Production: Natural gas (Bcf) 36.2 37.8 Crude oil (MBbls) 1,300 1,500 NGLs (MBbls) 1,000 1,200 Equivalent production (Bcfe) 50.0 54.0 Equivalent daily production…
NonGAAP Reconciliations Year ended December 31, LTM 3 Mos. Ended 2006 2007 2008 2009 2010 1Q11 Mar10 Mar11 EBITDAX dollars in millions Net income (loss) from continuing operations 44.2 26.5 93.6 (130.9) (65.3) (102.4) 10.8 (26.3)…
Penn Virginia Corporation 4 Radnor Corporate Center, Suite 200 Radnor, PA 19087 6106878900 www.pennvirginia.com Marcellus Shale Drilling Rig Potter County, Pennsylvania
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