Headquartered in Radnor, PA, Penn Virginia Corporation (NYSE: PVA) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of reserves in onshore regions of the U.S., including East Texas, Mississippi, the Mid-Continent region, the Appalachian Basin and the Gulf Coast of Louisiana and Texas. PVA also owns approximately 77% of Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of the general partner and the largest unit holder of Penn Virginia Resource Partners, L.P. (NYSE: PVR), a manager of coal and natural resource properties and related assets and the operator of a midstream natural gas gathering and processing business.
Penn Virginia increased proved reserves by 35% during 2008 to a record year-end level of 916 billion cubic feet of natural gas equivalent (Bcfe), replacing 604% of 2008 production. In May 2009, PVA provided 2009 production guidance of between 48.0 and 50.0 Bcfe, an increase of between 2% and 7% over 2008 production levels. Full-year 2008 production was also a record, increasing 15% to 46.9 Bcfe from 40.6 Bcfe in 2007. First quarter 2009 production was a record 13.7 Bcfe, a 30% increase over 10.5 Bcfe in the prior year quarter.
Due to lower commodity prices in 2009, PVA has reduced its capital spending outlook to a range of $130 million to $140 million, as compared to $642 million in 2008. PVA expects to focus primarily on development and other related activities in its core areas: the Lower Bossier (Haynesville) Shale in east Texas, the Granite Wash and Woodford Shale in Oklahoma, the Selma Chalk in Mississippi, and the Marcellus Shale and multi-lateral horizontal coalbed methane in Appalachia.
In 2009, PVA issued $365 million of debt and equity to bolster its financial liquidity and now has $300 million of revolver capacity available following the offerings.
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