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IPAA Oil & Gas Investor Symposium April 21, 2004

PENN VIRGINIA CORPORATION. IPAA Oil & Gas Investor Symposium April 21, 2004. Unique in Energy. Long history in upstream energy 24 Years oil & gas E&P 122 Years coal leasing Balanced portfolio of energy assets Oil & Gas Long-lived, low risk reserves Upside gulf coast potential CBM niche

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IPAA Oil & Gas Investor Symposium April 21, 2004

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  1. PENN VIRGINIA CORPORATION IPAA Oil & Gas Investor Symposium April 21, 2004 1

  2. Unique in Energy • Long history in upstream energy • 24 Years oil & gas E&P • 122 Years coal leasing • Balanced portfolio of energy assets • Oil & Gas • Long-lived, low risk reserves • Upside gulf coast potential • CBM niche • Coal royalty and Land Management • CAPP strength • Increasing diversity • Fee-based component • Structure • Dividend 2

  3. Organizational Structure Penn VirginiaCorporation(NYSE: PVA) 100% 100% Peabody Energy 1.11 mm common units Oil and Gas Explorationand Production Operations Penn Virginia Resource GP, LLC(and its affiliates) * Public9.17 mm common units 44.3% 6.0% 49.7% Market Capitalization @ 3/30/04: PVA $549 MM PVR $619 MM Penn VirginiaResource Partners, L.P.(NYSE:PVR) * 7.65 million subordinated units, 0.14 million common units, 100% of General Partner. 3

  4. Corporate Strategy • Approach to Risk • Focus on value • Maintain structure • Financial discipline • Oil & Gas • Portfolio driven • Emphasize low risk, moderate return development • CBM and HCBM • Balance with higher risk, higher return exploration • Gulf coast • Prospect generation capability • Coal Royalty and Land Management • Growth through acquisition • Geographic diversity • Fee based assets • Coal infrastructure • Other qualified income sources 4

  5. Performance Comparison(Value of a $100 investment made 1/1/2000 as of 12/31/2003) PVA out-performance 39% 305% 387% 667% (1) Peers = TBI, COG, EVG, NEV, NFX, POG, PPP, PENG, REM, SM, SGY, SFY, VPI 5

  6. Proved Reserves, 12/31/03: Bcfe Appalachia 50% 161 Mississippi 22% 72 Gulf Coast 28% 90 Total Proved Reserves 323 (88% Natural Gas, 78% Proved Developed) Daily Production*: MMcfe/d Appalachia 39% 28 Mississippi 18% 12 Gulf Coast 43% 31 Total Daily Production 71 Net Acreage (12/31/03) 762,000 Wells (12/31/03) 1,287 Gross; 847 net (91% operated) Oil & Gas Core Producing Areas Production (Bcfe): 2000 11.8 2001 14.1 2002 20.8 2003 23.8 Appalachia Mississippi Gulf Coast, W. Texas, E. Texas/N. Louisiana * - Year-end 2003 exit production rate 6

  7. Performance – Oil & Gas 2003 Production Growth 15% Reserves Growth 18% Reserves CAGR 14% Production CAGR 24% * Year-end SEC proved reserves 7

  8. Performance – Oil & Gas 8 * Excludes PVR debt 2001 forward

  9. Portfolio of Opportunities 9

  10. 2004 Gulf Coast Program 10

  11. Bethany (GMX) Joint Venture 5000 Acres 6500 Acres Three-Phased Project 2004 Development Program 8 Wells PVOG Interest 70 -80% Potential 2005 Development Program PVOG Interest 50 -80% 5700 Acres 11

  12. CBM Project Area PVA controls 620,000 acres in WV, VA & KY 240,000 acres with coal thickness of 30+ inches With a 50% geological risk, potential net reserve additions > 100Bcf Plus a significant increase in net production 12

  13. HORIZONTAL CBM • Significant production acceleration • Gulf Coast production profile with little geological risk • IRR 2-4 times greater than vertical development • Payout in ~ 1 Year • Typical F&D cost $1.00 - $1.50/Mcf • Solution to develop tight coals • 85% - 90% gas recovery 438 ACRES 13

  14. 2003 HCBM Drilling Program Gross HCBM Production Note: ROR is based on $4.50/MMbtu Henry Hub gas price held flat. 14

  15. 2004 Appalachia Program 15

  16. 2004 Mississippi Program 16

  17. Hedging ProgramSystematic Program Ensures Cash Flow Natural Gas Crude Oil Q4/03 Daily Production: 61 MMcf Natural Gas 1,100 Barrels Crude Oil 17

  18. Penn Virginia Resource Partners • Active in coal royalty business for 122 years • Royalties 90% of 2003 revenue • Timber and coal infrastructure • Control approximately 588 million tons of high quality coal reserves (as of 12/31/03) • 515MM tons in Appalachia (low sulfur/high BTU) • 73MM tons in New Mexico • Majority of coal is high BTU and over 61% is low sulfur 60% low sulfur; 33% compliance • 53 leases with 29 different operators • Coal production from PVR properties: • 2002 – 14.3MM tons • 2003 – 26.5MM tons • Infrastructure investments to enhance lessee production • Committed to growth • Coal reserves increased 30% from 12/31/00 – 12/31/03 • Acquired 120 MM tons from Peabody late 2002 • Geographic and asset mix diversification focusing on • Coal reserves • Coal-related infrastructure • Mid-stream oil & gas assets 18

  19. PVR’s Coal Royalty & Land Management Business Provides Diversified and Stable Cash Flows • Diversified sources of royalty revenues • Operating risk spread over 29 operators on 53 leases • Downside commodity price protection without limiting upside • Leases provide for greater of (a) a % of the actual sales price or (b) a fixed minimum per ton and include a minimum rental payment obligation • Peabody Leases provide for fixed royalties which escalate annually and include high minimum payments* Fixed Minimum Royalty per Ton % of Gross Sales Price $ Royalty per ton Coal sales prices per ton *Peabody escalating royalty rates only relate to Fed #2 mine and Lee Ranch mine. These escalate from $1.09 and $1.50 in 2003 to $1.75 and $2.48, respectively, over the life of the leases. 19

  20. PVR Performance – Coal Royalty & Land Management EBITDA At $2.08/unit, PVR’s current distribution rate and the 2% GP interest, PVA received approx. $16.5MM of pre-tax cash flow from PVR in 2003. 20

  21. Financial Highlights - Consolidated 21

  22. Capital Spending 22

  23. Strategic Summary • PVA • Increase inventory of development drilling • Continue to develop portfolio of exploration opportunities • Exploit CBM expertise and proprietary technology • Redeploy MLP cash flow into growth opportunities • PVR • Make accretive acquisitions • Goal to Increase distributions • Diversify asset base • Geographic • Fee-based 23

  24. This presentation includes forward-looking statements within the meaning of the federal securities laws with respect to development activities, capital expenditures, acquisitions and dispositions, drilling and exploration programs, expected commencement dates of coal mining or oil and gas production, projected quantities of future oil and gas production by PVA, projected quantities of future coal production by PVR’s lessees producing coal from reserves leased from PVR, costs and expenditures as well as projected demand or supply for coal and oil and gas, which will affect sales levels, prices and royalties realized by PVA. These factors are discussed further in the PVA’s and PVR’s filings with the Securities and Exchange Commission, and reference is made to such filings. Although PVA and PVR believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-Looking Statements 24

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