EX-99.1 2 d385377dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

LOGO   

Penn Virginia Resource Partners, L.P.

 

Five Radnor Corporate Center, Suite 500, 100 Matsonford Road, Radnor, PA 19087

  
     

 

 

FOR IMMEDIATE RELEASE

 

Contact:    Stephen R. Milbourne
   Director - Investor Relations
   Phone: 610-975-8204
   E-Mail: invest@pvrpartners.com

PVR PARTNERS ANNOUNCES SECOND QUARTER RESULTS

AND INCREASES QUARTERLY DISTRIBUTION

RADNOR, PA – July 25, 2012 . . . Penn Virginia Resource Partners, L.P. (NYSE: PVR) (“PVR”) today reported financial and operational results for the three months ended June 30, 2012. In addition, PVR announced an increase in its quarterly distribution to $0.53 per unit.

Second Quarter Results

Second quarter 2012 highlights and results, with comparisons to second quarter 2011 results, included the following:

 

   

Adjusted EBITDA of $57.0 million as compared to $64.8 million.

 

   

Distributable cash flow (“DCF”) of $26.1 million as compared to $34.1 million.

 

   

Adjusted net income of $9.6 million as compared to $23.0 million.

Adjusted EBITDA, distributable cash flow, and adjusted net income are not Generally Accepted Accounting Principles (“GAAP”) measures. Definitions and reconciliations of these non-GAAP measures to GAAP reporting measures appear in the financial tables which follow.

Quarterly Distribution

The Board of Directors of Penn Virginia Resource GP, LLC, the general partner of PVR, declared a quarterly distribution of $0.53 per unit payable in cash on August 14, 2012 to common unitholders of record at the close of business on August 6, 2012. This distribution equates to an annualized rate of $2.12 per unit, and represents a 1.9% increase over the prior quarter distribution and an 8.2% increase over the second quarter of 2011.

Management Comment

“We closed the previously announced acquisition of Chief Gathering LLC on May 17, 2012, and with the addition of these assets, we have begun to report separate results for the Midcontinent and Eastern segments of the midstream business. We believe this change will enhance the understanding of our business segments,” said Bill Shea, President and CEO of PVR’s general partner.

“Our second quarter results were negatively impacted by a very challenging coal market, low NGL prices and the migration to lower-margin fee-based contracts in the Midcontinent segment,” continued Mr. Shea. “However, the growth of our midstream business has continued in the second quarter with the closing of the Chief Gathering acquisition, the commencement of construction on Phase III and the Canton Lateral on our Lycoming County, Pennsylvania gas trunkline and water line, and completion of


 

PVR Announces Second Quarter 2012 Results   Page 2

 

the second 60 million cubic feet per day expansion of our Antelope Hills facility. Phase III and the Canton Lateral are expected to be in service in the fourth quarter to gather gas for an affiliate of Southwestern Energy Company and a subsidiary of Royal Dutch Shell. The new Wyoming County, Pennsylvania gas trunkline, acquired in the Chief acquisition, is also expected to be operational in the fourth quarter, servicing affiliates of Chief Oil & Gas LLC and Chesapeake Energy Corporation, among others. The completion of the Antelope Hills expansion enables PVR to process all of its volumes in the Panhandle region, as well as additional third-party volumes.

“Based on our confidence in the expected cash flows from these and other attractive growth midstream projects, we have increased our quarterly distribution to $0.53 per unit,” concluded Mr. Shea.

Eastern Midstream Segment

The eastern natural gas midstream segment reported second quarter 2012 results, with comparisons to second quarter 2011 results, as follows:

 

   

Adjusted EBITDA of $17.7 million as compared to $5.2 million, primarily due to the continued development of internal growth projects and the acquisition of Chief Gathering LLC.

 

   

Quarterly natural gas midstream system average throughput volumes of 344 million cubic feet per day (“MMcfd”), as compared to 38 MMcfd. The volume growth reflects the expansion of business on PVR’s Lycoming and Wyoming systems, as well as the acquisition of Chief Gathering.

Midcontinent Midstream Segment

The midcontinent natural gas midstream segment reported second quarter 2012 results, with comparisons to second quarter 2011 results, as follows:

 

   

Adjusted EBITDA of $12.7 million as compared to $17.4 million, primarily due to low NGL prices and the migration to lower-margin fee-based contracts.

 

   

Quarterly natural gas midstream system average throughput volumes of 453 MMcfd, as compared to 422 MMcfd.

Coal and Natural Resource Management Segment

The coal and natural resource management segment reported second quarter 2012 results, with comparisons to second quarter 2011 results, as follows:

 

   

Adjusted EBITDA of $26.7 million as compared to $42.3 million, primarily due to decreased coal production and pricing.

 

   

Coal royalty tons of 7.8 million tons, as compared to 10.1 million tons.

 

   

Coal royalties revenue of $29.2 million, or $3.76 per ton, as compared to $44.6 million, or $4.40 per ton.

Capital Investment and Resources

We invested approximately $129.0 million on internal growth projects during the second quarter of 2012, including $106.9 million in the Eastern Midstream Segment.


 

PVR Announces Second Quarter 2012 Results   Page 3

 

As of June 30, 2012, we had borrowings of $432.0 million under our $1.0 billion revolving credit facility with remaining borrowing capacity thereunder of $560.1 million.

Financial Guidance for 2012 and 2013

Current guidance for full year 2012 results has been updated to reflect the acquisition of the Chief Gathering business, the sale of the Crossroads system, the Lycoming Phase III expansion and other recently announced capital investments to support additional agreements with natural gas producers, revised assumptions for the impact of lower commodity prices and lower expected coal production. PVR now anticipates full year 2012 Adjusted EBITDA in the range of $245-$260 million and full year 2012 distributable cash flow, net of maintenance and replacement capital, in the range of $120-$130 million.

We expect the challenges in the coal business to continue in 2013, as well as a slow recovery of NGL prices. We also expect that the completion of several internal growth projects in the Eastern Midstream segment will partially offset these issues. Accordingly, we are revising our 2013 guidance range of $480-$540 million for total Adjusted EBITDA to $415-$480 million.

PVR’s financial guidance is based on numerous assumptions about future events and conditions and, therefore, could vary materially from actual results. These estimates, including capital expenditure plans, are meant to provide guidance only and are subject to revision for acquisitions or operating environment changes. Adjusted EBITDA and distributable cash flow are non-GAAP measures; reconciliations of these non-GAAP measures to GAAP reporting measures appear in the financial tables which follow.

Second Quarter 2012 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss second quarter 2012 financial and operational results, is scheduled for Wednesday, July 25, 2012 at 10:00 a.m. ET. Prepared remarks by William H. Shea, Jr., Chief Executive Officer, and other members of company management will be followed by a question and answer period. Interested parties may participate via phone by dialing 800-860-2442 (international 412-858-4600) five to ten minutes before the scheduled start of the conference call (reference the Penn Virginia Resource Partners call), or listen via webcast at http://www.videonewswire.com/event.asp?id=88074, or by logging on using the link posted on our website, www.pvrpartners.com. An on-demand replay of the webcast will be available on our website shortly after the conclusion of the call. A telephonic replay of the call will be available through August 2 by dialing 877-344-7529 (international: 412-317-0088) and using conference playback number 10015935.

******

Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership which owns and operates a network of natural gas midstream pipelines and processing plants, and owns and manages coal and natural resource properties. Our midstream assets, located principally in Texas, Oklahoma and Pennsylvania, provide gathering, transportation, compression, processing, dehydration and related services to natural gas producers. Our coal and natural resource properties, located in the Appalachian, Illinois and San Juan basins, are leased to experienced operators in exchange for royalty payments. More information about PVR is available on our website at www.pvrpartners.com.

******

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of the Partnership’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.


 

PVR Announces Second Quarter 2012 Results   Page 4

 

******

This press release includes “forward-looking statements” within the meaning of federal securities laws. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Partnership’s ability to control or predict, which could cause results to differ materially from those expected by management. Such risks and uncertainties include, but are not limited to, regulatory, economic and market conditions, our ability to successfully complete the construction and development of Chief’s midstream systems, to integrate the business of Chief with ours and to realize the anticipated benefits from the acquisition of Chief, the timing and success of business development efforts and other uncertainties. Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2011 and most recently filed Quarterly Reports on Form 10-Q. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.


PENN VIRGINIA RESOURCE PARTNERS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - unaudited

(in thousands, except per unit data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2012     2011     2012     2011  

Revenues

        

Natural gas

   $ 63,127      $ 112,229      $ 137,754      $ 204,207   

Natural gas liquids

     102,130        136,048        219,924        244,890   

Gathering and transportation

     21,404        8,630        35,259        14,091   

Coal royalties

     29,231        44,578        62,390        83,569   

Other

     7,020        8,837        14,002        17,092   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     222,912        310,322        469,329        563,849   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses

        

Cost of gas purchased

     140,833        219,278        306,297        389,533   

Operating

     14,040        14,242        29,943        27,315   

General and administrative

     10,999        11,975        23,043        22,945   

Acquisition related costs

     14,049        —          14,049        —     

Impairments

     —          —          124,845        —     

Depreciation, depletion and amortization

     28,456        21,650        52,309        42,894   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     208,377        267,145        550,486        482,687   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     14,535        43,177        (81,157     81,162   

Other income (expense)

        

Interest expense

     (15,511     (12,428     (25,328     (23,278

Derivatives

     8,676        4,782        3,725        (14,979

Interest income and other

     109        127        225        264   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     7,809        35,658        (102,535     43,169   

Net loss (income) attributable to noncontrolling interests

     —          —          —          664   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Penn Virginia Resource Partners’, L.P.

   $ 7,809      $ 35,658      $ (102,535   $ 43,833   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common unit (1)

   $ (0.07   $ 0.50      $ (1.39   $ 0.74   

Diluted earnings per common unit (1)

   $ (0.07   $ 0.50      $ (1.39   $ 0.74   

Weighted average number of common units outstanding, basic

     83,786        71,176        81,543        58,864   

Weighted average number of common units outstanding, diluted

     88,902        71,176        84,101        58,864   

 

(1) On May 17, 2012, the Partnership issued Class B Units and Special Units at a price that was lower than the market price of the common units into which they are convertible. This discount is treated as a non-cash distribution for purposes of calculating earnings per unit and is reflected in the basic and diluted net income (loss) per unit using the effective yield method over the period the Class B Units and Special Units are expected to be outstanding.

 

 

 

Other data:

           

Daily throughput volumes (MMcfd) - Eastern Midstream

     344         38         277         38   

Daily throughput volumes (MMcfd) - Midcontinent Midstream

     453         422         448         402   

Coal royalty tons (in thousands)

           7,776               10,125               15,881               20,022   


PENN VIRGINIA RESOURCE PARTNERS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS - unaudited

(in thousands)

 

     June 30,
2012
     December 31,
2011
 

Assets

     

Cash and cash equivalents

   $ 8,975       $ 8,640   

Accounts receivable

     83,816         101,340   

Assets held for sale

     35,064         —     

Other current assets

     6,254         5,640   
  

 

 

    

 

 

 

Total current assets

     134,109         115,620   

Property, plant and equipment, net

     1,680,994         1,282,297   

Other long-term assets

     866,473         196,075   
  

 

 

    

 

 

 

Total assets

   $ 2,681,576       $ 1,593,992   
  

 

 

    

 

 

 

Liabilities and Partners’ Capital

     

Accounts payable and accrued liabilities

   $ 138,487       $ 124,082   

Liabilities related to assets held for sale

     3,260         —     

Deferred income

     3,851         3,416   

Derivative liabilities

     2,440         12,042   
  

 

 

    

 

 

 

Total current liabilities

     148,038         139,540   

Other long-term liabilities

     32,419         31,748   

Senior notes 8.25%

     900,000         300,000   

Revolving credit facility

     432,000         541,000   

Partners’ capital

     1,169,119         581,704   
  

 

 

    

 

 

 

Total liabilities and partners’ capital

   $ 2,681,576       $ 1,593,992   
  

 

 

    

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited

(in thousands)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2012     2011     2012     2011  

Cash flows from operating activities

        

Net income (loss)

   $ 7,809      $ 35,658      $ (102,535   $ 43,169   

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation, depletion and amortization

     28,456        21,650        52,309        42,894   

Impairments

     —          —          124,845        —     

Commodity derivative contracts:

        

Total derivative losses included in net income

     (8,676     (4,782     (3,725     14,979   

Cash payments to settle derivatives for the period

     (3,605     (7,920     (7,246     (12,778

Non-cash interest expense

     1,579        2,655        2,628        3,695   

Non-cash unit-based compensation

     1,519        1,018        3,557        1,839   

Equity earnings, net of distributions received

     186        (1,343     (555     1,817   

Other

     (51     (635     (698     (782

Changes in operating assets and liabilities

     (3,742     (8,758     62        (2,482
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     23,475        37,543        68,642        92,351   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from investing activities

        

Acquisitions, net of cash acquired

     (850,747     (26,824     (850,943     (122,040

Additions to property, plant and equipment

     (99,621     (37,345     (174,994     (74,796

Other

     (4,770     1,204        (11,060     2,211   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (955,138     (62,965     (1,036,997     (194,625
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash flows from financing activities

        

Net proceeds from equity offerings

     577,962        —          577,962        —     

Proceeds from issuance of senior notes

     600,000        —          600,000        —     

Distributions to partners

     (41,265     (34,176     (81,683     (64,809

Proceeds from (repayments of) borrowings, net

     (185,000     65,000        (109,000     172,000   

Cash paid for debt issuance costs

     (18,589     (3,675     (18,589     (3,675

Cash paid for merger

     —          (5,600     —          (6,604
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by financing activities

     933,108        21,549        968,690        96,912   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     1,445        (3,873     335        (5,362

Cash and cash equivalents - beginning of period

     7,530        14,475        8,640        15,964   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents - end of period

   $ 8,975      $ 10,602      $ 8,975      $ 10,602   
  

 

 

   

 

 

   

 

 

   

 

 

 


PENN VIRGINIA RESOURCE PARTNERS, L.P.

CERTAIN NON-GAAP FINANCIAL MEASURES - unaudited

(in thousands)

 

     Three Months Ended     Six Months Ended              
     June 30,     June 30,     Guidance Range  
     2012     2011     2012     2011     Full Year 2012  

Reconciliation of Non-GAAP “Adjusted EBITDA” to GAAP “Net income (loss)”:

            

Segment Adjusted EBITDA (a):

            

Eastern Midstream

   $ 17,659      $ 5,173      $ 27,620      $ 7,957      $ 87,000      $ 93,000   

Midcontinent Midstream

     12,684        17,392        25,007        37,039        58,000        62,000   

Coal and Natural Resource Management

     26,697        42,262        57,419        79,060        100,000        105,000   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total segment adjusted EBITDA

   $ 57,040      $ 64,827      $ 110,046      $ 124,056      $ 245,000      $ 260,000   

Adjustments to reconcile total segment Adjusted EBITDA to Net income (loss)

            

Depreciation, depletion and amortization

     (28,456     (21,650     (52,309     (42,894    

Impairments

     —          —          (124,845     —         

Acquisition related costs

     (14,049     —          (14,049     —         

Interest expense

     (15,511     (12,428     (25,328     (23,278    

Derivatives

     8,676        4,782        3,725        (14,979    

Other

     109        127        225        264       
  

 

 

   

 

 

   

 

 

   

 

 

     

Net income (loss)

   $ 7,809      $ 35,658      $ (102,535   $ 43,169       
  

 

 

   

 

 

   

 

 

   

 

 

     

Reconciliation of GAAP “Net income (loss)” to Non-GAAP “Distributable cash flow”:

            

Net income (loss)

   $ 7,809      $ 35,658      $ (102,535   $ 43,169      $ (55,000   $ (60,000

Depreciation, depletion and amortization

     28,456        21,650        52,309        42,894        123,000        132,000   

Impairment

     —          —          124,845        —          125,000        125,000   

Gain on sale of assets

     —          —          —          —          (33,000     (30,000

Acquisition related costs

     14,049        —          14,049        —          14,000        14,000   

Derivative contracts:

            

Derivative losses included in net income

     (8,676     (4,782     (3,725     14,979        (1,000     5,000   

Cash payments to settle derivatives for the period

     (3,605     (7,920     (7,246     (12,778     (10,000     (13,000

Equity earnings from joint ventures, net of distributions

     186        (1,343     (555     1,817        (1,000     1,000   

Maintenance capital expenditures

     (5,351     (2,469     (8,448     (5,648     (15,000     (17,000

Replacement capital expenditures

     (6,725     (6,725     (13,450     (13,450     (27,000     (27,000
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributable cash flow (b)

   $ 26,143      $ 34,069      $ 55,244      $ 70,983      $ 120,000      $ 130,000   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distribution to Partners:

            

Total cash distribution paid during the period

   $ 41,265      $ 34,176      $ 81,683      $ 64,809       
  

 

 

   

 

 

   

 

 

   

 

 

     

Reconciliation of GAAP “Net income (loss)” to Non-GAAP “Net income as adjusted”:

            

Net income (loss)

   $ 7,809      $ 35,658      $ (102,535   $ 43,169       

Impairments

     —          —          124,845        —         

Acquisition related costs

     14,049        —          14,049        —         

Adjustments for derivatives:

            

Derivative losses included in net income

     (8,676     (4,782     (3,725     14,979       

Cash payments to settle derivatives for the period

     (3,605     (7,920     (7,246     (12,778    
  

 

 

   

 

 

   

 

 

   

 

 

     

Net income, as adjusted (c)

   $ 9,577      $ 22,956      $ 25,388      $ 45,370       
  

 

 

   

 

 

   

 

 

   

 

 

     
                             Guidance Range
Full Year 2013
 

Reconciliation of Non-GAAP “Adjusted EBITDA” to GAAP “Operating income”:

          

Segment Adjusted EBITDA:

            

Eastern Midstream

           $ 250,000      $ 275,000   

Midcontinent Midstream

             75,000        95,000   

Coal and Natural Resource Management

             90,000        110,000   
          

 

 

   

 

 

 

Total segment adjusted EBITDA

             415,000        480,000   

Adjustments to reconcile total segment Adjusted EBITDA to Operating income

            

Depreciation, depletion and amortization

             (174,000     (194,000
          

 

 

   

 

 

 

Operating income

           $ 241,000      $ 286,000   
          

 

 

   

 

 

 

 

(a) Adjusted EBITDA, or earnings before interest, tax and depreciation, depletion and amortization (“DD&A”), represents operating income plus DD&A, plus impairments, plus acquisition related costs. We believe EBITDA or a version of Adjusted EBITDA is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the natural gas midstream and coal industries. We use this information for comparative purposes within the industry. EBITDA is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to net income.
(b) Distributable cash flow represents net income plus DD&A, plus impairments, plus acquisition related costs, plus (minus) derivative losses (gains) included in net income, plus (minus) cash received (paid) for derivative settlements, minus equity earnings in joint ventures, plus cash distributions from joint ventures, minus maintenance capital expenditures, minus replacement capital expenditures. Distributable cash flow is also the quantitative standard used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of publicly traded partnerships. Distributable cash flow is presented because we believe it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities, as an indicator of cash flows, as a measure of liquidity or as an alternative to net income.
(c) Net income, as adjusted, represents net income adjusted to exclude the effects of impairments, one-time charges related to acquisitions and non-cash changes in the fair value of derivatives. We believe this presentation is commonly used by investors and professional research analysts in the valuation, comparison, rating and investment recommendations of companies in the natural gas midstream industry. We use this information for comparative purposes within the industry. Net income, as adjusted, is not a measure of financial performance under GAAP and should not be considered as a measure of liquidity or as an alternative to net income.


PENN VIRGINIA RESOURCE PARTNERS, L.P.

QUARTERLY SEGMENT INFORMATION - unaudited

(in thousands)

 

     Eastern Midstream  
     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2012     2011      2012     2011  

Revenues

         

Gathering and transportation

   $ 19,640      $ 5,835       $ 30,951      $ 8,855   

Other

     1,484        —           1,646        —     
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     21,124        5,835         32,597        8,855   
  

 

 

   

 

 

    

 

 

   

 

 

 

Expenses

         

Operating

     1,189        27         2,087        263   

General and administrative

     2,276        635         2,890        635   

Acquisition related costs

     14,049        —           14,049        —     

Depreciation, depletion and amortization

     8,394        811         10,455        1,164   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     25,908        1,473         29,481        2,062   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income (loss)

   $ (4,784   $ 4,362       $ 3,116      $ 6,793   
  

 

 

   

 

 

    

 

 

   

 

 

 
     Midcontinent Midstream  
     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2012     2011      2012     2011  

Revenues

         

Natural gas

   $ 63,127      $ 112,229       $ 137,754      $ 204,207   

Natural gas liquids

     102,130        136,048         219,924        244,890   

Gathering and transportation

     1,764        2,795         4,308        5,236   

Other

     928        1,870         1,545        3,688   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     167,949        252,942         363,531        458,021   
  

 

 

   

 

 

    

 

 

   

 

 

 

Expenses

         

Cost of gas purchased

     140,833        219,278         306,297        389,533   

Operating

     9,251        10,366         20,478        19,519   

General and administrative

     5,181        5,906         11,749        11,930   

Impairments

     —          —           124,845        —     

Depreciation, depletion and amortization

     11,700        11,753         25,307        23,324   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     166,965        247,303         488,676        444,306   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income (loss)

   $ 984      $ 5,639       $ (125,145   $ 13,715   
  

 

 

   

 

 

    

 

 

   

 

 

 
     Coal and Natural Resource Management  
     Three Months Ended      Six Months Ended  
     June 30,      June 30,  
     2012     2011      2012     2011  

Revenues

         

Coal royalties

   $ 29,231      $ 44,578       $ 62,390      $ 83,569   

Coal services

     1,391        2,278         2,630        4,588   

Timber

     1,354        1,268         2,873        2,377   

Oil and gas royalties

     505        989         1,188        1,782   

Other

     1,358        2,432         4,120        4,657   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total revenues

     33,839        51,545         73,201        96,973   
  

 

 

   

 

 

    

 

 

   

 

 

 

Expenses

         

Operating

     3,600        3,849         7,378        7,533   

General and administrative

     3,542        5,434         8,404        10,380   

Depreciation, depletion and amortization

     8,362        9,086         16,547        18,406   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total expenses

     15,504        18,369         32,329        36,319   
  

 

 

   

 

 

    

 

 

   

 

 

 

Operating income (loss)

   $ 18,335      $ 33,176       $ 40,872      $ 60,654   
  

 

 

   

 

 

    

 

 

   

 

 

 


PENN VIRGINIA RESOURCE PARTNERS, L.P.

DERIVATIVE CONTRACT SUMMARY - unaudited

As of June 30, 2012

 

     Average
Volume Per
    Swap     Weighted Average Price  
     Day     Price     Put (a)      Call (b)  

NGL - natural gasoline collar

     (gallons)          (per gallon)   

Third quarter 2012 through fourth quarter 2012

     54,000        $ 1.75       $ 2.02   

Crude swap

     (barrels )      (per barrel )      

Third quarter 2012 through fourth quarter 2012

     600      $ 88.62        

Natural gas purchase swap

     (MMBtu     (MMBtu     

Third quarter 2012 through fourth quarter 2012

     4,000      $ 5.195        

We estimate that, excluding the effects of derivative positions described above, for every $1.00 per MMBtu increase or decrease in the natural gas price, our natural gas midstream gross margin and operating income (loss) for the remainder of 2012 would increase or decrease by $0.4 million. In addition, we estimate that for every $5.00 per barrel increase or decrease in the crude oil price, our natural gas midstream gross margin and operating income (loss) for the remainder of 2012 would increase or decrease by $4.0 million. This assumes that natural gas prices, crude oil prices and inlet volumes remain constant at anticipated levels. These estimated changes in our gross margin and operating income (loss) exclude potential cash receipts or payments in settling these derivative positions.

(a) - Purchased put/floor.

(b) - Sold call/ceiling.