----

----

----

----

| x | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|

----

----

|   | Virginia                                                                | 23-1184320                                    |   |
|--------|-------------------------------------------------------------------------|-----------------------------------------------|--------|
|   | (State      or other jurisdiction ofincorporation      or organization) | (I.R.S.      EmployerIdentification      No.) |   |

----

| Large accelerated filer | x                                                                    | Accelerated filer              |  ̈ |
|-----------------------------------|----------------------------------------------------------------------|-------------------------------------|--------|
|                              |                                                                 |                                |   |
| Non-accelerated      filer        |  ̈  (Do      not check if a smaller reporting company) | Smaller reporting company |  ̈ |

----

----

----

|                            |   |                                                                                                  |   | Page   |
|---------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|--------|
| PART I.                    |   | Financial Information                                                                            |   |   |
|                            |   |                                                                                                  |   |   |
| Item      1.                    |   | Financial      Statements                                                                             |   |   |
|                            |   |                                                                                                  |   |   |
|                            |   | Consolidated      Statements of Income for the Three Months Ended March 31, 2010 and      2009        |   | 1      |
|                            |   |                                                                                                  |   |   |
|                            |   | Consolidated      Balance Sheets as of March 31, 2010 and December 31, 2009                           |   | 2      |
|                            |   |                                                                                                  |   |   |
|                            |   | Consolidated      Statements of Cash Flows for the Three Months Ended March 31, 2010 and      2009    |   | 3      |
|                            |   |                                                                                                  |   |   |
|                            |   | Notes      to Consolidated Financial Statements                                                       |   | 4      |
|                            |   |                                                                                                  |   |   |
| Forward-Looking      Statements |   | 21                                                                                                    |
|                            |   |                                                                                                  |   |   |
| Item      2.                    |   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |   | 23     |
|                            |   | Overview      of Business                                                                             |   | 23     |
|                            |   | Results      of Operations                                                                            |   | 25     |
|                            |   | Liquidity      and Capital Resources                                                                  |   | 35     |
|                            |   | Environmental      Matters                                                                            |   | 43     |
|                            |   | Critical      Accounting Estimates                                                                    |   | 43     |
|                            |   | New      Accounting Standards                                                                         |   | 43     |
|                            |   |                                                                                                  |   |   |
| Item      3.                    |   | Quantitative      and Qualitative Disclosures About Market Risk                                       |   | 43     |
|                            |   |                                                                                                  |   |   |
| Item      4.                    |   | Controls      and Procedures                                                                          |   | 46     |
|                            |   |                                                                                                  |   |   |
| PART II.                   |   | Other      Information                                                                                |   |   |
|                            |   |                                                                                                  |   |   |
| Item      6.                    |   | Exhibits                                                                                              |   | 47     |

----

|                                                                     |   | Three Months Ended March 31, |    |
|--------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                     |   | 2010                                             |    |   | 2009 |   |
|                                                                     |   |                                             |    |   |   |   |
| Revenues                                                                 |   |                                             |    |   |   |   |
| Natural      gas                                                         |   | $                                                | 47,988  |   |   | $ | 52,821 |   |
| Crude      oil                                                           |   |                                             | 13,846  |   |   |   | 6,328 |   |
| Natural      gas liquids (NGLs)                                          |   |                                             | 4,866   |   |   |   | 3,370 |   |
| Natural      gas midstream                                               |   |                                             | 151,764 |   |   |   | 95,206 |   |
| Coal      royalties                                                      |   |                                             | 28,226  |   |   |   | 30,630 |   |
| Other                                                                    |   |                                             | 8,821   |   |   |   | 10,805 |   |
| Total      revenues                                                      |   |                                             | 255,511 |   |   |   | 199,160 |   |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Expenses                                                                 |   |                                             |    |   |   |   |   |   |
| Cost      of midstream gas purchased                                     |   |                                             | 123,660 |   |   |   | 79,398 |   |
| Operating                                                                |   |                                             | 20,521  |   |   |   | 22,702 |   |
| Exploration                                                              |   |                                             | 6,029   |   |   |   | 21,312 |   |
| Taxes      other than income                                             |   |                                             | 6,848   |   |   |   | 6,432 |   |
| General      and administrative                                          |   |                                             | 23,291  |   |   |   | 18,486 |   |
| Depreciation,      depletion and amortization                            |   |                                             | 47,574  |   |   |   | 57,073 |   |
| Impairments                                                              |   |                                             | -       |   |   |   | 1,196 |   |
| Loss      on sale of assets                                              |   |                                             | 465     |   |   |   | - |   |
| Total      expenses                                                      |   |                                             | 228,388 |   |   |   | 206,599 |   |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Operating      income (loss)                                             |   |                                             | 27,123  |   |   |   | (7,439 | ) |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Other      income (expense)                                              |   |                                             |    |   |   |   |   |   |
| Interest      expense                                                    |   |                                             | (19,506 | ) |   |   | (12,502 | ) |
| Derivatives                                                              |   |                                             | 22,309  |   |   |   | 10,255 |   |
| Other                                                                    |   |                                             | 1,573   |   |   |   | 1,573 |   |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Income      (loss) before income taxes and noncontrolling interests      |   |                                             | 31,499  |   |   |   | (8,113 | ) |
| Income      tax benefit (expense)                                        |   |                                             | (8,559  | ) |   |   | 4,562 |   |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Net      income (loss)                                                   |   |                                             | 22,940  |   |   |   | (3,551 | ) |
| Less      net income attributable to noncontrolling interests            |   |                                             | (9,346  | ) |   |   | (3,658 | ) |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Income      (loss) attributable to Penn Virginia Corporation             |   | $                                                | 13,594  |   |   | $ | (7,209 | ) |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Earnings      (loss) per share - basic and diluted:                      |   |                                             |    |   |   |   |   |   |
| Earnings      (loss) per share attributable to Penn Virginia Corporation |   |                                             |    |   |   |   |   |   |
| Basic                                                                    |   | $                                                | 0.30    |   |   | $ | (0.17 | ) |
| Diluted                                                                  |   | $                                                | 0.30    |   |   | $ | (0.17 | ) |
|                                                                     |   |                                             |    |   |   |   |   |   |
| Weighted      average shares outstanding, basic                          |   |                                             | 45,465  |   |   |   | 41,922 |   |
| Weighted      average shares outstanding, diluted                        |   |                                             | 45,761  |   |   |   | 41,922 |   |

----

|                                                                                                                                                                                                          |   | March 31,2010 |      |   | December 31,2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-----------------------|--------|
| Assets                                                                                                                                                                                                        |   |               |      |   |                  |   |
| Current      assets                                                                                                                                                                                           |   |               |      |   |                  |   |
| Cash      and cash equivalents                                                                                                                                                                                |   | $                  | 279,220   |   |                  | $      | 98,331 |   |
| Accounts      receivable, net of allowance for doubtful accounts                                                                                                                                              |   |               | 126,742   |   |                  |   | 124,804 |   |
| Derivative      assets                                                                                                                                                                                        |   |               | 31,216    |   |                  |   | 17,572 |   |
| Inventory                                                                                                                                                                                                     |   |               | 10,336    |   |                  |   | 12,204 |   |
| Assets      held for sale                                                                                                                                                                                     |   |               | 2,482     |   |                  |   | 38,282 |   |
| Other      current assets                                                                                                                                                                                     |   |               | 5,062     |   |                  |   | 8,049 |   |
| Total      current assets                                                                                                                                                                                     |   |               | 455,058   |   |                  |   | 299,242 |   |
| Property      and equipment                                                                                                                                                                                   |   |               |      |   |                  |   |   |   |
| Oil      and gas properties (successful efforts method)                                                                                                                                                       |   |               | 2,033,406 |   |                  |   | 1,960,140 |   |
| Other      property and equipment                                                                                                                                                                             |   |               | 1,156,424 |   |                  |   | 1,146,973 |   |
| Total      property and equipment                                                                                                                                                                             |   |               | 3,189,830 |   |                  |   | 3,107,113 |   |
| Accumulated      depreciation, depletion and amortization                                                                                                                                                     |   |               | (801,181  | )      |                  |   | (754,755 | ) |
| Net      property and equipment                                                                                                                                                                               |   |               | 2,388,649 |   |                  |   | 2,352,358 |   |
| Equity      investments                                                                                                                                                                                       |   |               | 87,159    |   |                  |   | 87,601 |   |
| Intangibles,      net                                                                                                                                                                                         |   |               | 82,043    |   |                  |   | 83,741 |   |
| Derivative      assets                                                                                                                                                                                        |   |               | 7,461     |   |                  |   | 3,630 |   |
| Other      assets                                                                                                                                                                                             |   |               | 59,611    |   |                  |   | 61,935 |   |
| Total      assets                                                                                                                                                                                             |   | $                  | 3,079,981 |   |                  | $      | 2,888,507 |   |
|                                                                                                                                                                                                          |   |               |      |   |                  |   |   |   |
| Liabilities      and Shareholders’ Equity                                                                                                                                                               |   |               |      |   |                  |   |   |   |
| Current      liabilities                                                                                                                                                                                      |   |               |      |   |                  |   |   |   |
| Accounts      payable and accrued liabilities                                                                                                                                                                 |   | $                  | 143,517   |   |                  | $      | 137,388 |   |
| Derivative      liabilities                                                                                                                                                                                   |   |               | 18,617    |   |                  |   | 16,147 |   |
| Deferred      taxes                                                                                                                                                                                           |   |               | 2,820     |   |                  |   | - |   |
| Income      taxes payable                                                                                                                                                                                     |   |               | 90,628    |   |                  |   | - |   |
| Total      current liabilities                                                                                                                                                                                |   |               | 255,582   |   |                  |   | 153,535 |   |
| Other      liabilities                                                                                                                                                                                        |   |               | 42,907    |   |                  |   | 43,463 |   |
| Derivative      liabilities                                                                                                                                                                                   |   |               | 6,227     |   |                  |   | 6,745 |   |
| Deferred      income taxes                                                                                                                                                                                    |   |               | 286,878   |   |                  |   | 328,238 |   |
| Long-term      debt of the Company                                                                                                                                                                            |   |               | 500,537   |   |                  |   | 498,427 |   |
| Long-term      debt of PVR                                                                                                                                                                                    |   |               | 618,100   |   |                  |   | 620,100 |   |
|                                                                                                                                                                                                          |   |               |      |   |                  |   |   |   |
| Commitments      and contingencies (Note 7)                                                                                                                                                                   |   |               | -         |   |                  |   | - |   |
|                                                                                                                                                                                                          |   |               |      |   |                  |   |   |   |
| Shareholders’      equity:                                                                                                                                                                              |   |               |      |   |                  |   |   |   |
| Preferred      Stock of $100 par value - 100,000 shares authorized; none      issued                                                                                                                          |   |               |      |   |                  |   |   |   |
| Common      stock of $0.01 par value – 64,000,000 shares authorized; shares issued and      outstanding of 45,445,257 and 45,386,004 as of March 31, 2010 and      December 31, 2009, respectively |   |               | 266       |   |                  |   | 265 |   |
| Paid-in      capital                                                                                                                                                                                          |   |               | 659,149   |   |                  |   | 590,846 |   |
| Retained      earnings                                                                                                                                                                                        |   |               | 330,205   |   |                  |   | 319,167 |   |
| Deferred      compensation obligation                                                                                                                                                                         |   |               | 2,580     |   |                  |   | 2,423 |   |
| Accumulated      other comprehensive loss                                                                                                                                                                     |   |               | (1,520    | )      |                  |   | (1,286 | ) |
| Treasury      stock – 119,891 and 113,858 shares of common stock, at cost, as of March      31, 2010 and December 31, 2009, respectively                                                                |   |               | (3,097    | )      |                  |   | (3,327 | ) |
| Total      Penn Virginia Corporation shareholders' equity                                                                                                                                                     |   |               | 987,583   |   |                  |   | 908,088 |   |
| Noncontrolling      interests of subsidiaries                                                                                                                                                                 |   |               | 382,167   |   |                  |   | 329,911 |   |
| Total      shareholders’ equity                                                                                                                                                                         |   |               | 1,369,750 |   |                  |   | 1,237,999 |   |
| Total      liabilities and shareholders’ equity                                                                                                                                                         |   | $                  | 3,079,981 |   |                  | $      | 2,888,507 |   |

----

|                                                                                               |   | Three Months Ended March 31, |    |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                               |   | 2010                                             |    |   | 2009 |   |
| Cash      flows from operating activities                                                          |   |                                             |    |   |   |   |
| Net      income (loss)                                                                             |   | $                                                | 22,940  |   |   | $ | (3,551 | ) |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities: |   |                                             |    |   |   |   |   |   |
| Depreciation,      depletion and amortization                                                      |   |                                             | 47,574  |   |   |   | 57,073 |   |
| Impairments                                                                                        |   |                                             | -       |   |   |   | 1,196 |   |
| Derivative      contracts:                                                                         |   |                                             |    |   |   |   |   |   |
| Total      derivative gains                                                                        |   |                                             | (21,728 | ) |   |   | (9,801 | ) |
| Cash      receipts to settle derivatives                                                           |   |                                             | 6,788   |   |   |   | 19,148 |   |
| Deferred      income taxes                                                                         |   |                                             | (9,000  | ) |   |   | (4,634 | ) |
| Loss      on the sale of property and equipment, net                                               |   |                                             | 254     |   |   |   | - |   |
| Dry      hole and unproved leasehold expense                                                       |   |                                             | 5,029   |   |   |   | 10,504 |   |
| Non-cash      interest expense                                                                     |   |                                             | 4,498   |   |   |   | 2,711 |   |
| Other                                                                                              |   |                                             | 3,647   |   |   |   | 780 |   |
| Changes      in operating assets and liabilities                                                   |   |                                             | 19,265  |   |   |   | 29,593 |   |
| Net      cash provided by operating activities                                                     |   |                                             | 79,267  |   |   |   | 103,019 |   |
|                                                                                               |   |                                             |    |   |   |   |   |   |
| Cash      flows from investing activities                                                          |   |                                             |    |   |   |   |   |   |
| Acquisitions                                                                                       |   |                                             | (27,379 | ) |   |   | (3,073 | ) |
| Additions      to property and equipment                                                           |   |                                             | (45,099 | ) |   |   | (136,213 | ) |
| Proceeds      from the sale of property and equipment, net                                         |   |                                             | 23,273  |   |   |   | - |   |
| Other                                                                                              |   |                                             | 272     |   |   |   | 254 |   |
| Net      cash used in investing activities                                                         |   |                                             | (48,933 | ) |   |   | (139,032 | ) |
|                                                                                               |   |                                             |    |   |   |   |   |   |
| Cash      flows from financing activities                                                          |   |                                             |    |   |   |   |   |   |
| Dividends      paid                                                                                |   |                                             | (2,556  | ) |   |   | (2,349 | ) |
| Distributions      paid to noncontrolling interest holders                                         |   |                                             | (22,501 | ) |   |   | (18,455 | ) |
| Repayments      of bank borrowings                                                                 |   |                                             | -       |   |   |   | (7,542 | ) |
| Proceeds      from Company borrowings                                                              |   |                                             | -       |   |   |   | 58,000 |   |
| Proceeds      from PVR borrowings                                                                  |   |                                             | 10,000  |   |   |   | 27,000 |   |
| Repayments      of PVR borrowings                                                                  |   |                                             | (12,000 | ) |   |   | - |   |
| Net      proceeds from the sale of PVG units                                                       |   |                                             | 177,000 |   |   |   | - |   |
| Debt      issuance costs paid                                                                      |   |                                             | -       |   |   |   | (9,258 | ) |
| Other                                                                                              |   |                                             | 612     |   |   |   | - |   |
| Net      cash provided by financing activities                                                     |   |                                             | 150,555 |   |   |   | 47,396 |   |
| Net      increase in cash and cash equivalents                                                     |   |                                             | 180,889 |   |   |   | 11,383 |   |
| Cash      and cash equivalents - beginning of period                                               |   |                                             | 98,331  |   |   |   | 18,338 |   |
| Cash      and cash equivalents - end of period                                                     |   | $                                                | 279,220 |   |   | $ | 29,721 |   |
|                                                                                               |   |                                             |    |   |   |   |   |   |
| Supplemental      disclosures:                                                                     |   |                                             |    |   |   |   |   |   |
| Cash      paid for:                                                                                |   |                                             |    |   |   |   |   |   |
| Interest      (net of amounts capitalized)                                                         |   | $                                                | 7,214   |   |   | $ | 10,286 |   |
| Income      taxes (net of refunds received)                                                        |   | $                                                | (110    | ) |   | $ | 2,269 |   |
| Noncash      investing activities:                                                                 |   |                                             |    |   |   |   |   |   |
| Property      received as consideration in asset disposition transaction                           |   | $                                                | 8,204   |   |   | $ | - |   |

----

| 1. | Organization |
|----|--------------|

| 2. | Basis      of Presentation |
|----|----------------------------|

| 3. | Fair      Value Measurements |
|----|------------------------------|

----

|                                               |   | As of March 31, 2010 |   |
|----------------------------------------------------|--------|------------------------------------------|--------|
|                                               |   | Fair Value                          |   |   | Fair Value Measurement Classification |   |
| Description                                        |   | Measurement                              |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                                            |   |                                     |   |   |   |   |   |   |   |   |   |   |
| Publicly      traded equity securities             |   | $                                        | 6,022  |   |   | $ | 6,022 |   |   | $ | - |   |   | $ | - |   |
| Interest      rate swap assets - current           |   |                                     | 1,642  |   |   |   | - |   |   |   | 1,642 |   |   |   | - |   |
| Interest      rate swap assets - noncurrent        |   |                                     | 186    |   |   |   | - |   |   |   | 186 |   |   |   | - |   |
| Commodity      derivative assets - current         |   |                                     | 29,575 |   |   |   | - |   |   |   | 29,575 |   |   |   | - |   |
| Commodity      derivative assets - noncurrent      |   |                                     | 7,275  |   |   |   | - |   |   |   | 7,275 |   |   |   | - |   |
|                                               |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                       |   |                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      compensation - noncurrent liability  |   |                                     | (6,359 | ) |   |   | (6,359 | ) |   |   | - |   |   |   | - |   |
| Interest      rate swap liabilities - current      |   |                                     | (9,348 | ) |   |   | - |   |   |   | (9,348 | ) |   |   | - |   |
| Interest      rate swap liabilities - noncurrent   |   |                                     | (3,886 | ) |   |   | - |   |   |   | (3,886 | ) |   |   | - |   |
| Commodity      derivative liabilities - current    |   |                                     | (9,270 | ) |   |   | - |   |   |   | (9,270 | ) |   |   | - |   |
| Commodity      derivative liabilities - noncurrent |   |                                     | (2,341 | ) |   |   | - |   |   |   | (2,341 | ) |   |   | - |   |
| Totals                                             |   | $                                        | 13,496 |   |   | $ | (337 | ) |   | $ | 13,833 |   |   | $ | - |   |

|                                               |   | As of December 31, 2009 |    |
|----------------------------------------------------|--------|---------------------------------------------|---------|
|                                               |   | Fair Value                             |    |   | Fair Value Measurement Classification |   |
| Description                                        |   | Measurement                                 |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                                            |   |                                        |    |   |   |   |   |   |   |   |   |   |
| Publicly      traded equity securities             |   | $                                           | 5,904   |   |   | $ | 5,904 |   |   | $ | - |   |   | $ | - |   |
| Interest      rate swap assets - current           |   |                                        | 1,463   |   |   |   | - |   |   |   | 1,463 |   |   |   | - |   |
| Interest      rate swap assets - noncurrent        |   |                                        | 1,266   |   |   |   | - |   |   |   | 1,266 |   |   |   | - |   |
| Commodity      derivative assets - current         |   |                                        | 16,109  |   |   |   | - |   |   |   | 16,109 |   |   |   | - |   |
| Commodity      derivative assets - noncurrent      |   |                                        | 2,364   |   |   |   | - |   |   |   | 2,364 |   |   |   | - |   |
|                                               |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                       |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      compensation - noncurrent liability  |   |                                        | (6,564  | ) |   |   | (6,564 | ) |   |   | - |   |   |   | - |   |
| Interest      rate swap liabilities - current      |   |                                        | (10,123 | ) |   |   | - |   |   |   | (10,123 | ) |   |   | - |   |
| Interest      rate swap liabilities - noncurrent   |   |                                        | (5,575  | ) |   |   | - |   |   |   | (5,575 | ) |   |   | - |   |
| Commodity      derivative liabilities - current    |   |                                        | (6,024  | ) |   |   | - |   |   |   | (6,024 | ) |   |   | - |   |
| Commodity      derivative liabilities - noncurrent |   |                                        | (1,170  | ) |   |   | - |   |   |   | (1,170 | ) |   |   | - |   |
| Totals                                             |   | $                                           | (2,350  | ) |   | $ | (660 | ) |   | $ | (1,690 | ) |   | $ | - |   |

|   | • | Publicly      traded equity securities: Our publicly traded equity securities consist of      various publicly traded equities that are held as assets for funding      certain deferred compensation obligations. The fair values are based on      quoted market prices, which are level 1inputs. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Commodity      derivatives: We determine the fair values of our oil and gas derivative      agreements based on discounted cash flows derived from third-party quoted      forward prices for NYMEX Henry Hub gas and West Texas Intermediate crude      oil closing prices as of March 31, 2010.  PVR determines the      fair values of its commodity derivative agreements based on discounted      cash flows based on quoted forward prices for the respective commodities.      We generally use the income approach, using valuation techniques that      convert future cash flows to a single discounted value. Each of these is a      level 2 input. See Note 5 for the effects of the derivative instruments on      our Consolidated Statements ofIncome. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Interest      rate swaps: We use an income approach using valuation techniques that      connect future cash flows to a single discounted value. We estimate the      fair value of the swaps based on published interest rate yield curves as      of the date of the estimate. Each of these is a level 2    input. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Deferred      compensation: Certain of our deferred compensation obligations are      ultimately to be settled in cash based on the underlying fair value of      certain publicly traded equity securities. The fair values of these      obligations are based on quoted market prices, which are level 1      inputs. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | As of                     |   |
|-------------------------------------------|--------|--------------------------------|--------|
|                                      |   | March 31,  2010 |   |   | December 31, 2009 |   |
| Assets      held for sale                 |   |                           |   |   |   |   |
| Fair      value of oil and gas properties |   | $                              | 2,482  |   |   | $ | 38,282 |   |
|                                      |   |                           |   |   |   |   |   |   |
| Liabilities      held for sale            |   |                           |   |   |   |   |   |   |
| Asset      retirement obligations         |   | $                              | -      |   |   | $ | 500 |   |

| 5. | Derivative      Financial Instruments |
|----|---------------------------------------|

----

|                                                             |         |                      |   |        |               | Weighted Average Price |              |         |   |
|------------------------------------------------------------------|--------------|---------------------------|--------|------------------|--------------------|----------------------------------|-------------------|--------------|--------|
|                                                             |         | AverageVolume PerDay |   |        |               | Floor                            |              | Ceiling      |   | Fair ValueAsset(Liability) |   |
|                                                        |         | (in MMBtu)           |   | (per MMBtu) |               |                             |              |
| Natural Gas Costless Collars                      |    |                      |   |             |          |                             |              |         |   |   |   |   |   |   |
| Second      Quarter 2010                                         |         | 30,000                    |   |             |          | $                                | 5.33              |         | $      | 8.02 |   | $ | 3,947 |   |
| Third      Quarter 2010                                          |         | 30,000                    |   |             |          | $                                | 5.33              |         | $      | 8.02 |   |   | 3,521 |   |
| Fourth      Quarter 2010                                         |    | 50,000                    |   |        |          | $                                | 5.65              |         | $      | 8.77 |   |   | 5,469 |   |
| First      Quarter 2011                                          |    | 50,000                    |   |             |          | $                                | 5.65              |         | $      | 8.77 |   |   | 3,609 |   |
| Second      Quarter 2011                                         |    | 30,000                    |   |             |          | $                                | 5.67              |         | $      | 7.58 |   |   | 2,430 |   |
| Third      Quarter 2011                                          |    | 30,000                    |   |             |          | $                                | 5.67              |         | $      | 7.58 |   |   | 2,208 |   |
| Fourth      Quarter 2011                                         |    | 20,000                    |   |             |          | $                                | 6.00              |         | $      | 8.50 |   |   | 1,524 |   |
| First      Quarter 2012                                          |         |  20,000              |   |             |     | $                                | 6.00              |    | $      |  8.50 |    |    | 1,016 |    |
|                                                        |         | (in      MMBtu)           |   |        |               |                             | (per      MMBtu)  |         |   |   |   |   |   |   |
| Natural      Gas Swaps                                           |         |                      |   |             |               |                             |              |         |   |   |   |   |   |   |
| Second      Quarter 2010                                         |         | 30,000                    |   |             |               | $                                | 6.17              |         |   |   |   |   | 6,187 |   |
| Third      Quarter 2010                                          |         | 30,000                    |   |             |               | $                                | 6.17              |         |   |   |   |   | 5,522 |   |
|                                                        |         | (barrels)                 |   |             |               |                             | (per      barrel) |         |   |    |   |   |   |   |
| Crude      Oil Costless Collars                                  |         |                      |   |             |               |                             |              |         |   |   |   |   |   |   |
| Second      Quarter 2010                                         |         | 500                       |   |        |               | $                                | 60.00             |         | $      | 74.75 |   |   | (459 | ) |
| Third      Quarter 2010                                          |         | 500                       |   |             |               | $                                | 60.00             |         | $      | 74.75 |   |   | (562 | ) |
| Fourth      Quarter 2010                                         |         | 500                       |   |             |               | $                                | 60.00             |         | $      | 74.75 |   |   | (617 | ) |
| Settlements      to be received (paid) in subsequent period |         |                      |   |             |               | (101                             | )                 |

----

|                                                 |   |                      |      |   |            |   |                | Weighted Average Price |   |                |                     |   |
|------------------------------------------------------|--------|---------------------------|-----------|--------|-----------------|--------|---------------------|----------------------------------|--------|---------------------|--------------------------|--------|
|                                                 |   | AverageVolume PerDay |      |   | Swap Price |   |                | Floor                            |   |                | Ceiling                  |   |   | Fair ValueAsset(Liability) |   |
|                                            |   |                      | (barrels) |   |            |   |                |                             |   |                | ($ per barrel) |   |   |   |   |
| Crude Oil Collar                           |   |                      |      |   |            |   |                |                             |   |                |                     |   |   |   |   |   |   |   |   |   |
| Second      through Fourth Quarter 2010              |   |                      | 1,750     |   |            |   |                |                             |   | $                   | 68.86                    |   |   | $ | 80.54 |   |   | $ | (3,309 | ) |
| First      through Fourth Quarter 2011               |   |                      | 400       |   |            |   |                |                             |   | $                   | 75.00                    |   |   | $ | 98.50 |   |   |   | 35 |   |
|                                            |   |                      | (MMBtu)   |   |            |   | ($      per MMBtu)  |                             |   |                |                     |   |   |   |   |   |   |   |   |   |
| Natural      Gas Purchase Swap                       |   |                      |      |   |            |   |                |                             |   |                |                     |   |   |   |   |   |   |   |   |   |
| Second      through Fourth Quarter 2010              |   |                      | 7,100     |   |            | $      | 5.885               |                             |   |                |                     |   |   |   |   |   |   |   | (3,133 | ) |
| First      through Fourth Quarter 2011               |   |                      | 6,500     |   |            | $      | 5.796               |                             |   |                |                     |   |   |   |   |   |   |   | (1,043 | ) |
|                                            |   |                      | (gallons) |   |            |   | ($      per gallon) |                             |   |                |                     |   |   |   |   |   |   |   |   |   |
| Ethane      Swap                                     |   |                      |      |   |            |   |                |                             |   |                |                     |   |   |   |   |   |   |   |   |   |
| Second      Quarter 2010                             |   |                      | 72,000    |   |            | $      | 0.735               |                             |   |                |                     |   |   |   |   |   |   |   | 1,062 |   |
|                                            |   |                      | (gallons) |   |            |   |                |                             |   | ($      per gallon) |                     |   |   |   |   |
| NGL      - Natural Gasoline Collar                   |   |                      |      |   |            |   |                |                             |   |                |                     |   |   |   |   |   |   |   |   |   |
| Third      through Fourth Quarter 2010               |   |                      | 42,000    |   |            |   |                |                             |   | $                   | 1.55                     |   |   | $ | 2.03 |   |   |   | (212 | ) |
| First      through Fourth Quarter 2011               |   |                      | 95,000    |   |            |   |                |                             |   | $                   | 1.57                     |   |   | $ | 1.94 |   |   |   | (2,025 | ) |
| Settlements      to be received in subsequent period |   |                      |      |   |            |   |                |                             |   |                |                     |   |   |   |   | 171 |   |

|                             |   | Notional           |   |   |                                 |   |                |           |   |   | Fair Value   |   |
|----------------------------------|--------|--------------------|--------|--------|--------------------------------------|--------|---------------------|----------------|--------|--------|-------------------|--------|
|                             |   | Amount             |   |   | Swap Interest Rates 1 |   |                | March 31, |   |   | December 31, |   |
|  Term                  |   | (in millions) |   |   | Pay                                  |   |                | Receive        |   |   | 2010              |   |   | 2009 |   |
|  Through      December 2010 |   | $                  | 50.0   |   |                                 |   | 5.349               | %              |   |   | LIBOR             |   |   | $ | (1,851 | ) |   | $ | (2,375 | ) |
|  Through      December 2010 |   | $                  | 50.0   |   |                                 |   | LIBOR               |           |   |   | 0.53              | %      |   |   | (51 | ) |   |   | (39 | ) |
|  Through      June 2013     |   | $                  | 100.0  |   |                                 |   | LIBOR      + 8.175% |           |   |   | 10.375            | %      |   |   | 883 |   |   |   | (872 | ) |

----

|                                     |   | Notional           |   |   |                                 |   |           |                |   | Fair Value   |   |
|------------------------------------------|--------|--------------------|--------|--------|--------------------------------------|--------|----------------|---------------------|--------|-------------------|--------|
|                                     |   | Amount             |   |   | Swap Interest Rates 1 |   | March 31, |                |   | December 31, |   |
|  Term                          |   | (in millions) |   |   | Pay                                  |   |           |  Receive  |   | 2010              |   |   | 2009 |   |
|  Until      March 2010              |   | $                  | 310.0  |   |                                 |   | 3.54           | %                   |   | LIBOR             |   | $ | - |   |   | $ | (2,479 | ) |
|  March      2010 - December 2011    |   | $                  | 250.0  |   |                                 |   | 3.37           | %                   |   | LIBOR             |   |   | (10,999 | ) |   |   | (8,456 | ) |
|  December      2011 - December 2012 |   | $                  | 100.0  |   |                                 |   | 2.09           | %                   |   | LIBOR             |   |   | 612 |   |   |   | 1,252 |   |

----

----

|                                                                       |   | Location of gain (loss)  |   |                                             |   |   |   |   |
|----------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------------------------------------------------|--------|--------|--------|--------|
|                                                                       |   | on derivatives recognized     |   | Three Months Ended March 31, |   |
|                                                                       |   | in income                     |   | 2010                                             |   |   | 2009   |   |
| Derivatives      not designated as hedging instruments:                    |   |                                         |   |                                             |   |   |   |   |
| Interest      rate contracts 1                                             |   | Interest      expense                        |   | $                                                | (582   | )      |   | $      | (1,263 | ) |
| Interest      rate contracts                                               |   | Derivatives                                  |   |                                             | (1,464 | )      |   |   | (1,114 | ) |
| Commodity      contracts                                                   |   | Derivatives                                  |   |                                             | 23,774 |   |   |   | 11,369 |   |
| Total      increase in net income resulting from derivatives               |   |                                         |   | $                                                | 21,728 |   |   | $      | 8,992 |   |
| Realized      and unrealized derivative impact:                            |   |                                         |   |                                             |   |   |   |   |   |   |
| Cash      received (paid) for commodity and interest ratesettlements       |   | Derivatives                                  |   | $                                                | 6,788  |   |   | $      | 19,148 |   |
| Cash      paid for interest rate contract settlements                      |   | Interest      expense                        |   |                                             | -      |   |   |   | (808 | ) |
| Unrealized      derivative gain (loss) 2                                   |   |                                         |   |                                             | 14,940 |   |   |   | (9,348 | ) |
| Total      increase (decrease) in net income resulting from    derivatives |   |                                         |   | $                                                | 21,728 |   |   | $      | 8,992 |   |

----

| 1 | This      represents interest rate swap amounts reclassified out of AOCI and into      earnings.  During 2008 and 2009, PVR      discontinued   hedge accounting for various interest rate      swaps at different times.  By the first quarter of 2009, PVR      discontinued hedge accounting    for the PVR Interest      Rate Swaps and PVA discontinued hedge accounting for the Previous Interest      Rate Swaps.  During the first quarter    of      2009, PVA reclassified $0.4 million for remaining AOCI and actual hedge      settlements that were reclassified into earnings in the      same   period or periods relating to the Previous Interest      Rate Swaps not designated for hedge accounting.  During the      first quarter of 2009, PVR   reclassified $0.8 million for      remaining AOCI and actual hedge settlements that were reclassified into      earnings in the same period or   periods relating to the      PVR Interest Rate Swaps not designated for hedge    accounting. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Represents      unrealized gains (losses) in the Interest expense and Derivatives caption      on our Consolidated Statements ofIncome. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   |                                                 |   | Fair Values as of |   |
|-------------------------------------------------|--------|------------------------------------------------------|--------|----------------------------------|--------|
|                                            |   |                                                 |   | March 31, 2010         |   |   | December 31, 2009 |   |
|                                            |   |                                                 |   | Derivative                       |   |   | Derivative |   |   | Derivative |   |   | Derivative |   |
|                                            |   | Balance Sheet Location                     |   | Assets                           |   |   | Liabilities |   |   | Assets |   |   | Liabilities |   |
|                                            |   |                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |
| Interest      rate contracts                    |   | Derivative      assets/liabilities - current         |   | $                                | 1,642  |   |   | $ | 9,348 |   |   | $ | 1,463 |   |   | $ | 10,123 |   |
| Interest      rate contracts                    |   | Derivative      assets/liabilities - noncurrent |   |                             | 186    |   |   |   | 3,886 |   |   |   | 1,266 |   |   |   | 5,575 |   |
| Commodity      contracts                        |   | Derivative      assets/liabilities - current         |   |                             | 29,575 |   |   |   | 9,270 |   |   |   | 16,109 |   |   |   | 6,024 |   |
| Commodity      contracts                        |   | Derivative      assets/liabilities - noncurrent |   |                             | 7,275  |   |   |   | 2,341 |   |   |   | 2,364 |   |   |   | 1,170 |   |
|                                            |   |                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      fair value of derivative instruments |   | $                                                    | 38,678 |                             |   | $ | 24,845 |   |   | $ | 21,202 |   |   | $ | 22,892 |   |

----

| 6. | Long-Term      Debt |
|----|---------------------|

|                                    |   | As of                     |      |
|-----------------------------------------|--------|--------------------------------|-----------|
|                                    |   | March 31,  2010 |      |   | December 31, 2009 |   |
| Revolving      credit facility          |   | $                              | -         |   |   | $ | - |   |
| Senior      notes, net of discount      |   |                           | 292,067   |   |   |   | 291,749 |   |
| Convertible      notes, net of discount |   |                           | 208,470   |   |   |   | 206,678 |   |
| PVR      revolving credit facility      |   |                           | 618,100   |   |   |   | 620,100 |   |
|                                    |   | $                              | 1,118,637 |   |   | $ | 1,118,527 |   |

----

|                                            |   | As of                    |    |
|-------------------------------------------------|--------|--------------------------|---------|
|                                            |   | March      31, 2010 |    |   | December 31, 2009 |   |
| Principal                                       |   | $                        | 230,000 |   |   | $ | 230,000 |   |
| Unamortized      discount                       |   |                     | (21,530 | ) |   |   | (23,322 | ) |
| Net      carrying amount of liability component |   | $                        | 208,470 |   |   | $ | 206,678 |   |
|                                            |   |                     |    |   |   |   |   |   |
| Carrying      amount of equity component        |   | $                        | 36,850  |   |   | $ | 36,850 |   |

----

| 7. | Shareholders’      Equity and Comprehensive Income |
|----|----------------------------------------------------------|

|                                                  |   | Penn Virginia |    |   |           |   |    |          |   |   |               |   |
|-------------------------------------------------------|--------|--------------------|---------|--------|----------------|--------|---------|---------------|--------|--------|--------------------|--------|
|                                                  |   | Corporation        |    |   |           |   |    | Total         |   |   |               |   |
|                                                  |   | Shareholders'      |    |   | Noncontrolling |   |    | Shareholders' |   |   | Comprehensive      |   |
|                                                  |   | Equity             |    |   | Interests      |   |    | Equity        |   |   | Income (Loss) |   |
| Balance      at December 31, 2009                     |   | $                  | 908,088 |   |           | $      | 329,911 |          |   | $      | 1,237,999          |   |   |   |   |
| Dividends      paid ($0.05625 per share)              |   |               | (2,556  | )      |           |   | -       |          |   |   | (2,556             | )      |   |   |   |
| Distributions      to noncontrolling interest holders |   |               | -       |   |           |   | (22,501 | )             |   |   | (22,501            | )      |   |   |   |
| Sale      of PVG units, net of tax                    |   |               | 70,300  |   |           |   | 62,318  |          |   |   | 132,618            |   |   |   |   |
| Other      changes to shareholders' equity            |   |               | (1,609  | )      |           |   | 2,511   |          |   |   | 902                |   |   |   |   |
| Comprehensive      income:                            |   |               |    |   |           |   |    |          |   |   |               |   |   |   |   |
| Net      income (loss)                                |   |               | 13,594  |   |           |   | 9,346   |          |   |   | 22,940             |   |   | $ | 22,940 |   |
| Hedging      reclassification adjustment              |   |               | -       |   |           |   | 582     |          |   |   | 582                |   |   |   | 582 |   |
| Other,      net of tax                                |   |               | (234    | )      |           |   | -       |          |   |   | (234               | )      |   |   | (234 | ) |
| Balance      March 31, 2010                           |   | $                  | 987,583 |   |           | $      | 382,167 |          |   | $      | 1,369,750          |   |   | $ | 23,288 |   |
|                                                  |   |               |    |   |           |   |    |          |   |   |               |   |   |   |   |   |
| Balance      at December 31, 2008                     |   | $                  | 925,215 |   |           | $      | 297,227 |          |   | $      | 1,222,442          |   |   |   |   |   |
| Dividends      paid ($0.05625 per share)              |   |               | (2,349  | )      |           |   | -       |          |   |   | (2,349             | )      |   |   |   |   |
| Distributions      to noncontrolling interest holders |   |               | -       |   |           |   | (18,455 | )             |   |   | (18,455            | )      |   |   |   |   |
| Other      changes to shareholders' equity            |   |               | 127     |   |           |   | 2,412   |          |   |   | 2,539              |   |   |   |   |   |
| Comprehensive      income:                            |   |               |    |   |           |   |    |          |   |   |               |   |   |   |   |   |
| Net      income (loss)                                |   |               | (7,209  | )      |           |   | 3,658   |          |   |   | (3,551             | )      |   | $ | (3,551 | ) |
| Hedging      unrealized loss, net of tax              |   |               | (28     | )      |           |   | (353    | )             |   |   | (381               | )      |   |   | (381 | ) |
| Hedging      reclassification adjustment, net of tax  |   |               | 244     |   |           |   | 576     |          |   |   | 820                |   |   |   | 820 |   |
| Other,      net of tax                                |   |               | 35      |   |           |   | -       |          |   |   | 35                 |   |   |   | 35 |   |
| Balance      March 31, 2009                           |   | $                  | 916,035 |   |           | $      | 285,065 |          |   | $      | 1,201,100          |   |   | $ | (3,077 | ) |

| Net      income attributable to Penn Virginia                                                             |   | $      | 13,594 |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Transfer      to noncontrolling interests                                                                 |   |   |   |   |
| Increase      in Penn Virginia's paid-in capital for sale of PVG units, net of taxes of      $44,382      |   |   | 70,300 |   |
| Changes      from net income attributable to Penn Virginia and transfers to      noncontrolling interests |   | $      | 83,894 |   |

----

| 8. | Commitments      and Contingencies |
|----|------------------------------------|

| 9. | Share-Based      Compensation |
|----|-------------------------------|

|                                        |   | Three Months Ended March 31, |   |
|---------------------------------------------|--------|--------------------------------------------------|--------|
|                                        |   | 2010                                             |   |   | 2009 |   |
| Penn      Virginia stock compensation plans |   | $                                                | 3,021  |   |   | $ | 2,604 |   |
| PVR      long-term incentive plan           |   |                                             | 1,391  |   |   |   | 1,355 |   |
| PVG      long-term incentive plan           |   |                                             | 90     |   |   |   | 90 |   |
|                                        |   | $                                                | 4,502  |   |   | $ | 4,049 |   |

----

| 10. | Restructuring      Activities |
|-----|-------------------------------|

| Balance      at beginning of period |   | $      | 529  |   |
|-------------------------------------|--------|--------|------|--------|
| Termination      benefits accrued   |   |   | 862  |   |
| Cash      payments                  |   |   | (972 | )      |
| Balance      at end of period       |   | $      | 419  |   |

| 11. | Impairments |
|-----|-------------|

|                        |   | Three Months Ended March 31, |   |
|-----------------------------|--------|--------------------------------------------------|--------|
|                        |   | 2010                                             |   |   | 2009 |   |
| Oil      and gas properties |   | $                                                | -      |   |   | $ | 1,196 |   |
| Other                       |   |                                             | -      |   |   |   | - |   |
|                        |   | $                                                | -      |   |   | $ | 1,196 |   |

----

| 12. | Interest      Expense |
|-----|-----------------------|

|                                                       |   | Three Months Ended March 31, |   |
|------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                       |   | 2010                                             |   |   | 2009 |   |
| Interest      and accretion on borrowings and related fees |   | $                                                | 14,031 |   |   | $ | 6,733 |   |
| Interest      rate swaps                                   |   |                                             | -      |   |   |   | 438 |   |
| Capitalized      interest                                  |   |                                             | (362   | ) |   |   | (364 | ) |
| Other                                                      |   |                                             | 2      |   |   |   | 79 |   |
| Penn      Virginia interest expense                        |   |                                             | 13,671 |   |   |   | 6,886 |   |
|                                                       |   |                                             |   |   |   |   |   |   |
| PVR      interest and accretion on borrowings              |   |                                             | 5,253  |   |   |   | 4,868 |   |
| PVR      interest rate swaps                               |   |                                             | 582    |   |   |   | 825 |   |
| PVR      capitalized interest                              |   |                                             | -      |   |   |   | (77 | ) |
| PVR      interest expense                                  |   |                                             | 5,835  |   |   |   | 5,616 |   |
|                                                       |   |                                             |   |   |   |   |   |   |
| Total      interest expense                                |   | $                                                | 19,506 |   |   | $ | 12,502 |   |

| 13. | Earnings per      Share |
|-----|-------------------------|

|                                                                                                                      |   | Three Months Ended March 31, |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                                                      |   | 2010                                             |   |   | 2009 |   |
| Net      income (loss) attributable to common shareholders                                                                |   | $                                                | 13,594 |   |   | $ | (7,209 | ) |
| Less:      Portion of subsidiary net income allocated to undistributed share-based      compensation awards, net of taxes |   |                                             | (28    | ) |   |   | (13 | ) |
|                                                                                                                      |   | $                                                | 13,566 |   |   | $ | (7,222 | ) |
| Weighted-average      shares, basic                                                                                       |   |                                             | 45,465 |   |   |   | 41,922 |   |
| Effect      of dilutive securities 1                                                                                      |   |                                             | 296    |   |   |   | - |   |
| Weighted-average      shares, diluted                                                                                     |   |                                             | 45,761 |   |   |   | 41,922 |   |
| Net      income (loss) per common share, basic                                                                            |   | $                                                | 0.30   |   |   | $ | (0.17 | ) |
| Net      income (loss) per common share, diluted                                                                          |   | $                                                | 0.30   |   |   | $ | (0.17 | ) |

----

| 1 | For      the three months ended March 31, 2009, approximately 0.2 million      potentially dilutive securities, including the Convertible Notes,      stock      options, restricted stock and phantom stock had the effect of being      anti-dilutive and were excluded from the calculation of diluted      earnings per commonshare. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Segment      Information |
|-----|--------------------------|

|   | • | Oil      and Gas—crude oil and natural gas exploration, development and      production. |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | PVR      Coal and Natural Resource Management—The PVR coal and natural resource      management segment primarily involves the management and leasing of coal      properties and the subsequent collection of royalties. PVR’s coal reserves      are primarily located in Kentucky, Virginia, West Virginia, Illinois and      New Mexico. PVR also earns revenues from other land management activities,      such as selling standing timber; leasing of fee-based coal-related      infrastructure facilities to certain lessees and end-user industrial      plants; collection of oil and gas royalties; and from coal transportation,      or wheelage, fees. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | PVR      Natural Gas Midstream—The PVR natural gas midstream segment is engaged in      providing natural gas processing, gathering and other related      services.  PVR owns and operates natural gas midstream assets      located in Oklahoma and Texas. PVR’s natural gas midstream business      derives revenues primarily from gas processing contracts with natural gas      producers and from fees charged for natural gas volumes and providing      other related services. In addition, PVR owns a 25% member interest in      Thunder Creek Gas Services, LLC, a joint venture that gathers and      transports coalbed methane in Wyoming’s Powder River Basin. PVR also owns      a natural gas marketing business, which aggregates third-party volumes and      sells those volumes into interstate pipeline systems and at market hubs      accessed by various interstatepipelines. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Revenues                                         |    |   | Intersegment Revenues 1                |   |
|--------------------------------|--------|--------------------------------------------------|---------|--------|--------------------------------------------------|--------|
|                           |   | Three Months Ended March 31, |    |   | Three Months Ended March 31, |   |
|                           |   | 2010                                             |    |   | 2009                                             |   |   | 2010 |   |   | 2009 |   |
| Oil      and gas               |   | $                                                | 67,770  |   |                                             | $      | 64,565 |   |   | $ | (332 | ) |   | $ | (346 | ) |
| Coal      and natural resource |   |                                             | 33,560  |   |                                             |   | 38,252 |   |   |   | 197 |   |   |   | 198 |   |
| Natural      gas midstream     |   |                                             | 172,918 |   |                                             |   | 118,507 |   |   |   | 18,845 |   |   |   | 22,520 |   |
| Eliminations      and other    |   |                                             | (18,737 | )      |                                             |   | (22,164 | ) |   |   | (18,710 | ) |   |   | (22,372 | ) |
|                           |   | $                                                | 255,511 |   |                                             | $      | 199,160 |   |   | $ | - |   |   | $ | - |   |

|                               |   | Operating income (loss)                |    |   | DD&A expense                            |   |
|------------------------------------|--------|--------------------------------------------------|---------|--------|--------------------------------------------------|--------|
|                               |   | Three Months Ended March 31, |    |   | Three Months Ended March 31, |   |
|                               |   | 2010                                             |    |   | 2009                                             |   |   | 2010 |   |   | 2009 |   |
| Oil      and gas                   |   | $                                                | 8,849   |   |                                             | $      | (22,655 | ) |   | $ | 29,022 |   |   | $ | 39,999 |   |
| Coal      and natural resource     |   |                                             | 20,361  |   |                                             |   | 24,974 |   |   |   | 7,326 |   |   |   | 7,394 |   |
| Natural      gas midstream         |   |                                             | 7,385   |   |                                             |   | (3,047 | ) |   |   | 10,492 |   |   |   | 9,109 |   |
| Eliminations      and other        |   |                                             | (9,472  | )      |                                             |   | (6,711 | ) |   |   | 734 |   |   |   | 571 |   |
|                               |   | $                                                | 27,123  |   |                                             | $      | (7,439 | ) |   | $ | 47,574 |   |   | $ | 57,073 |   |
| Interest      expense              |   |                                             | (19,506 | )      |                                             |   | (12,502 | ) |   |   |   |   |   |   |   |   |
| Derivatives                        |   |                                             | 22,309  |   |                                             |   | 10,255 |   |   |   |   |   |   |   |   |   |
| Other                              |   |                                             | 1,573   |   |                                             |   | 1,573 |   |   |   |   |   |   |   |   |   |
| Income      tax (expense) benefit  |   |                                             | (8,559  | )      |                                             |   | 4,562 |   |   |   |   |   |   |   |   |   |
| Net      income (loss)             |   |                                             | 22,940  |   |                                             |   | (3,551 | ) |   |   |   |   |   |   |   |   |
| Less:      Net income attributable |   |                                             |    |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| to      noncontrolling interests   |   |                                             | (9,346  | )      |                                             |   | (3,658 | ) |   |   |   |   |   |   |   |   |
| Income      (loss) attributable to |   |                                             |    |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| Penn      Virginia Corporation     |   | $                                                | 13,594  |   |                                             | $      | (7,209 | ) |   |   |   |   |   |   |   |   |

|                           |   | Additions to property and equipment |   |   | Total assets as of |   |
|--------------------------------|--------|---------------------------------------------------------|--------|--------|-----------------------------------|--------|
|                           |   | Three Months Ended March 31,        |   |   | March 31,                    |   |   | December 31, |   |
|                           |   | 2010                                                    |   |   | 2009                              |   |   | 2010 |   |   | 2009 |   |
| Oil      and gas               |   | $                                                       | 64,221 |   |                              | $      | 120,574 |   |   | $ | 1,802,528 |   |   | $ | 1,591,460 |   |
| Coal      and natural resource |   |                                                    | 32     |   |                              |   | 1,300 |   |   |   | 569,821 |   |   |   | 574,258 |   |
| Natural      gas midstream     |   |                                                    | 7,954  |   |                              |   | 17,006 |   |   |   | 626,187 |   |   |   | 633,802 |   |
| Eliminations      and other    |   |                                                    | 271    |   |                              |   | 406 |   |   |   | 81,445 |   |   |   | 88,987 |   |
|                           |   | $                                                       | 72,478 |   |                              | $      | 139,286 |   |   | $ | 3,079,981 |   |   | $ | 2,888,507 |   |

----

| 1 | Intersegment      revenues represent gas gathering and processing transactions between the      PVR natural gas midstream segment and the oil and gas segment.      Intersegment revenues also represent agent fees paid by the oil and gas      segment to the PVR natural gas midstream segment for marketing      certain      natural gas production and rail car rental fees paid by a corporate      affiliate to the PVR coal and natural resource management      segment. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Condensed      Consolidating Financial Information of Guarantor    Subsidiaries |
|-----|---------------------------------------------------------------------------------|

----

|                                                  |   | Condensed Consolidated Balance Sheets |      |
|-------------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                  |   | As of March 31, 2010             |      |
|                                                  |   | Penn Virginia                                   |      |   | Guarantor |   |   | Non-guarantor |   |   |   |   |   |   |   |
|                                                  |   | Corporation                                          |      |   | Subsidiaries |   |   | Subsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                  |   | (in thousands)                                  |      |
| Assets                                                |   |                                                 |      |
| Cash      and cash equivalents                        |   | $                                                    | 72,949    |   |   | $ | 178,150 |   |   | $ | 28,121 |   |   | $ | - |   |   | $ | 279,220 |   |
| Accounts      receivable                              |   |                                                 | -         |   |   |   | 53,823 |   |   |   | 72,919 |   |   |   | - |   |   |   | 126,742 |   |
| Inventory                                             |   |                                                 | -         |   |   |   | 8,485 |   |   |   | 1,851 |   |   |   | - |   |   |   | 10,336 |   |
| Assets      held for sale                             |   |                                                 | -         |   |   |   | 2,482 |   |   |   | - |   |   |   | - |   |   |   | 2,482 |   |
| Other      current assets                             |   |                                                 | 1,425     |   |   |   | 30,649 |   |   |   | 11,513 |   |   |   | (7,309 | ) |   |   | 36,278 |   |
| Total      current assets                             |   |                                                 | 74,374    |   |   |   | 273,589 |   |   |   | 114,404 |   |   |   | (7,309 | ) |   |   | 455,058 |   |
| Property      and equipment, net                      |   |                                                 | 5,583     |   |   |   | 1,516,689 |   |   |   | 894,042 |   |   |   | (27,665 | ) |   |   | 2,388,649 |   |
| Investments      in affiliates (equity method)        |   |                                                 | 1,532,524 |   |   |   | 28,162 |   |   |   | - |   |   |   | (1,560,686 | ) |   |   | - |   |
| Other      assets                                     |   |                                                 | 21,225    |   |   |   | 12,250 |   |   |   | 206,000 |   |   |   | (3,201 | ) |   |   | 236,274 |   |
| Total      assets                                     |   | $                                                    | 1,633,706 |   |   | $ | 1,830,690 |   |   | $ | 1,214,446 |   |   | $ | (1,598,861 | ) |   | $ | 3,079,981 |   |
|                                                  |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and shareholders’ equity       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities         |   | $                                                    | 15,273    |   |   | $ | 59,269 |   |   | $ | 68,975 |   |   | $ | - |   |   | $ | 143,517 |   |
| Other      current liabilities                        |   |                                                 | 90,829    |   |   |   | 13,770 |   |   |   | 14,775 |   |   |   | (7,309 | ) |   |   | 112,065 |   |
| Total      current liabilities                        |   |                                                 | 106,102   |   |   |   | 73,039 |   |   |   | 83,750 |   |   |   | (7,309 | ) |   |   | 255,582 |   |
| Deferred      income taxes                            |   |                                                 | -         |   |   |   | 217,391 |   |   |   | 72,688 |   |   |   | (3,201 | ) |   |   | 286,878 |   |
| Long-term      debt of PVR                            |   |                                                 | -         |   |   |   | - |   |   |   | 618,100 |   |   |   | - |   |   |   | 618,100 |   |
| Long-term      debt of the Company                    |   |                                                 | 500,537   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 500,537 |   |
| Other      long-term liabilities                      |   |                                                 | 11,819    |   |   |   | 7,736 |   |   |   | 29,579 |   |   |   | - |   |   |   | 49,134 |   |
| Penn      Virginia Corporation's equity               |   |                                                 | 1,015,248 |   |   |   | 1,532,524 |   |   |   | 28,162 |   |   |   | (1,588,351 | ) |   |   | 987,583 |   |
| Noncontrolling      interests in subsidiaries         |   |                                                 | -         |   |   |   | - |   |   |   | 382,167 |   |   |   | - |   |   |   | 382,167 |   |
| Total      liabilities and shareholders’ equity |   | $                                                    | 1,633,706 |   |   | $ | 1,830,690 |   |   | $ | 1,214,446 |   |   | $ | (1,598,861 | ) |   | $ | 3,079,981 |   |

|                                                  |   | Condensed Consolidated Balance Sheets |      |
|-------------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                  |   | As of December 31, 2009          |      |
|                                                  |   | Penn Virginia                                   |      |   | Guarantor |   |   | Non-guarantor |   |   |   |   |   |   |   |
|                                                  |   | Corporation                                          |      |   | Subsidiaries |   |   | Subsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                  |   | (in thousands)                                  |      |
| Assets                                                |   |                                                 |      |
| Cash      and cash equivalents                        |   | $                                                    | 76,074    |   |   | $ | 2,943 |   |   | $ | 19,314 |   |   | $ | - |   |   | $ | 98,331 |   |
| Accounts      receivable                              |   |                                                 | -         |   |   |   | 42,378 |   |   |   | 82,426 |   |   |   | - |   |   |   | 124,804 |   |
| Inventory                                             |   |                                                 | -         |   |   |   | 10,372 |   |   |   | 1,832 |   |   |   | - |   |   |   | 12,204 |   |
| Assets      held for sale                             |   |                                                 | -         |   |   |   | 38,282 |   |   |   | - |   |   |   | - |   |   |   | 38,282 |   |
| Other      current assets                             |   |                                                 | 3,311     |   |   |   | 16,510 |   |   |   | 10,124 |   |   |   | (4,324 | ) |   |   | 25,621 |   |
| Total      current assets                             |   |                                                 | 79,385    |   |   |   | 110,485 |   |   |   | 113,696 |   |   |   | (4,324 | ) |   |   | 299,242 |   |
| Property      and equipment, net                      |   |                                                 | 6,314     |   |   |   | 1,473,034 |   |   |   | 900,948 |   |   |   | (27,938 | ) |   |   | 2,352,358 |   |
| Investments      in affiliates (equity method)        |   |                                                 | 1,346,659 |   |   |   | 89,992 |   |   |   | - |   |   |   | (1,436,651 | ) |   |   | - |   |
| Other      assets                                     |   |                                                 | 22,785    |   |   |   | 7,874 |   |   |   | 210,438 |   |   |   | (4,190 | ) |   |   | 236,907 |   |
| Total      assets                                     |   | $                                                    | 1,455,143 |   |   | $ | 1,681,385 |   |   | $ | 1,225,082 |   |   | $ | (1,473,103 | ) |   | $ | 2,888,507 |   |
|                                                  |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and shareholders’ equity       |   |                                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities         |   | $                                                    | 8,909     |   |   | $ | 55,278 |   |   | $ | 73,201 |   |   | $ | - |   |   | $ | 137,388 |   |
| Other      current liabilities                        |   |                                                 | -         |   |   |   | 9,220 |   |   |   | 11,251 |   |   |   | (4,324 | ) |   |   | 16,147 |   |
| Total      current liabilities                        |   |                                                 | 8,909     |   |   |   | 64,498 |   |   |   | 84,452 |   |   |   | (4,324 | ) |   |   | 153,535 |   |
| Deferred      income taxes                            |   |                                                 | -         |   |   |   | 260,933 |   |   |   | 71,495 |   |   |   | (4,190 | ) |   |   | 328,238 |   |
| Long-term      debt of PVR                            |   |                                                 | -         |   |   |   | - |   |   |   | 620,100 |   |   |   | - |   |   |   | 620,100 |   |
| Long-term      debt of the Company                    |   |                                                 | 498,427   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 498,427 |   |
| Other      long-term liabilities                      |   |                                                 | 11,781    |   |   |   | 9,295 |   |   |   | 29,132 |   |   |   | - |   |   |   | 50,208 |   |
| Penn      Virginia Corporation's equity               |   |                                                 | 936,026   |   |   |   | 1,346,659 |   |   |   | 89,992 |   |   |   | (1,464,589 | ) |   |   | 908,088 |   |
| Noncontrolling      interests in subsidiaries         |   |                                                 | -         |   |   |   | - |   |   |   | 329,911 |   |   |   | - |   |   |   | 329,911 |   |
| Total      liabilities and shareholders’ equity |   | $                                                    | 1,455,143 |   |   | $ | 1,681,385 |   |   | $ | 1,225,082 |   |   | $ | (1,473,103 | ) |   | $ | 2,888,507 |   |

----

|                                                                |   | Condensed Consolidated Statements of Income |    |
|---------------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|
|                                                                |   | Three Months Ended March 31, 2010      |    |
|                                                                |   | Penn Virginia                                              |    |   | Guarantor |   |   | Non-guarantor |   |   |   |   |   |   |   |
|                                                                |   | Corporation                                                     |    |   | Subsidiaries |   |   | Subsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                |   | (in thousands)                                             |    |
| Revenues                                                            |   | $                                                               | -       |   |   | $ | 67,770 |   |   | $ | 206,586 |   |   | $ | (18,845 | ) |   | $ | 255,511 |   |
| Cost      of midstream gas purchased                                |   |                                                            | -       |   |   |   | - |   |   |   | 141,795 |   |   |   | (18,135 | ) |   |   | 123,660 |   |
| Operating                                                           |   |                                                            | -       |   |   |   | 11,968 |   |   |   | 9,263 |   |   |   | (710 | ) |   |   | 20,521 |   |
| Exploration                                                         |   |                                                            | -       |   |   |   | 6,029 |   |   |   | - |   |   |   | - |   |   |   | 6,029 |   |
| Taxes      other than income                                        |   |                                                            | 425     |   |   |   | 4,905 |   |   |   | 1,518 |   |   |   | - |   |   |   | 6,848 |   |
| General      and administrative                                     |   |                                                            | 7,420   |   |   |   | 6,532 |   |   |   | 9,339 |   |   |   | - |   |   |   | 23,291 |   |
| Depreciation,      depletion and amortization                       |   |                                                            | 1,001   |   |   |   | 29,022 |   |   |   | 17,824 |   |   |   | (273 | ) |   |   | 47,574 |   |
| Impairments                                                         |   |                                                            | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss      on sale of assets                                         |   |                                                            | -       |   |   |   | 465 |   |   |   | - |   |   |   | - |   |   |   | 465 |   |
| Operating      expenses                                             |   |                                                            | 8,846   |   |   |   | 58,921 |   |   |   | 179,739 |   |   |   | (19,118 | ) |   |   | 228,388 |   |
| Operating      income                                               |   |                                                            | (8,846  | ) |   |   | 8,849 |   |   |   | 26,847 |   |   |   | 273 |   |   |   | 27,123 |   |
| Equity      in earnings of subsidiaries                             |   |                                                            | 26,287  |   |   |   | 2,607 |   |   |   | - |   |   |   | (28,894 | ) |   |   | - |   |
| Interest      expense and other                                     |   |                                                            | (12,328 | ) |   |   | (97 | ) |   |   | (5,508 | ) |   |   | - |   |   |   | (17,933 | ) |
| Derivatives                                                         |   |                                                            | -       |   |   |   | 29,877 |   |   |   | (7,568 | ) |   |   | - |   |   |   | 22,309 |   |
| Income      (loss) before income taxes and noncontrolling interests |   |                                                            | 5,113   |   |   |   | 41,236 |   |   |   | 13,771 |   |   |   | (28,621 | ) |   |   | 31,499 |   |
| Income      tax benefit (expense)                                   |   |                                                            | 8,208   |   |   |   | (14,949 | ) |   |   | (1,818 | ) |   |   | - |   |   |   | (8,559 | ) |
| Net      income (loss)                                              |   |                                                            | 13,321  |   |   |   | 26,287 |   |   |   | 11,953 |   |   |   | (28,621 | ) |   |   | 22,940 |   |
| Less      net income attributable to noncontrolling interests       |   |                                                            | -       |   |   |   | - |   |   |   | (9,346 | ) |   |   | - |   |   |   | (9,346 | ) |
| Net      income (loss) attributable to Penn Virginia Corporation    |   | $                                                               | 13,321  |   |   | $ | 26,287 |   |   | $ | 2,607 |   |   | $ | (28,621 | ) |   | $ | 13,594 |   |

|                                                                |   | Condensed Consolidated Statements of Income |    |
|---------------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|
|                                                                |   | Three Months Ended March 31, 2009      |    |
|                                                                |   | Penn Virginia                                              |    |   | Guarantor |   |   | Non-guarantor |   |   |   |   |   |   |   |
|                                                                |   | Corporation                                                     |    |   | Subsidiaries |   |   | Subsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                                |   | (in thousands)                                             |    |
| Revenues                                                            |   | $                                                               | -       |   |   | $ | 64,564 |   |   | $ | 156,767 |   |   | $ | (22,171 | ) |   | $ | 199,160 |   |
| Cost      of midstream gas purchased                                |   |                                                            | -       |   |   |   | - |   |   |   | 100,620 |   |   |   | (21,222 | ) |   |   | 79,398 |   |
| Operating                                                           |   |                                                            | -       |   |   |   | 14,763 |   |   |   | 8,890 |   |   |   | (951 | ) |   |   | 22,702 |   |
| Exploration                                                         |   |                                                            | -       |   |   |   | 21,312 |   |   |   | - |   |   |   | - |   |   |   | 21,312 |   |
| Taxes      other than income                                        |   |                                                            | 383     |   |   |   | 4,826 |   |   |   | 1,223 |   |   |   | - |   |   |   | 6,432 |   |
| General      and administrative                                     |   |                                                            | 5,222   |   |   |   | 5,124 |   |   |   | 8,140 |   |   |   | - |   |   |   | 18,486 |   |
| Depreciation,      depletion and amortization                       |   |                                                            | 871     |   |   |   | 39,999 |   |   |   | 16,509 |   |   |   | (306 | ) |   |   | 57,073 |   |
| Impairments                                                         |   |                                                            | -       |   |   |   | 1,196 |   |   |   | - |   |   |   | - |   |   |   | 1,196 |   |
| Operating      expenses                                             |   |                                                            | 6,476   |   |   |   | 87,220 |   |   |   | 135,382 |   |   |   | (22,479 | ) |   |   | 206,599 |   |
| Operating      income                                               |   |                                                            | (6,476  | ) |   |   | (22,656 | ) |   |   | 21,385 |   |   |   | 308 |   |   |   | (7,439 | ) |
| Equity      in earnings of subsidiaries                             |   |                                                            | (10,275 | ) |   |   | 3,658 |   |   |   | - |   |   |   | 6,617 |   |   |   | - |   |
| Interest      expense and other                                     |   |                                                            | (6,501  | ) |   |   | - |   |   |   | (4,427 | ) |   |   | (1 | ) |   |   | (10,929 | ) |
| Derivatives                                                         |   |                                                            | 17,415  |   |   |   | - |   |   |   | (7,160 | ) |   |   | - |   |   |   | 10,255 |   |
| Income      (loss) before income taxes and noncontrolling interests |   |                                                            | (5,837  | ) |   |   | (18,998 | ) |   |   | 9,798 |   |   |   | 6,924 |   |   |   | (8,113 | ) |
| Income      tax benefit (expense)                                   |   |                                                            | (1,679  | ) |   |   | 8,723 |   |   |   | (2,482 | ) |   |   | - |   |   |   | 4,562 |   |
| Net      income (loss)                                              |   |                                                            | (7,516  | ) |   |   | (10,275 | ) |   |   | 7,316 |   |   |   | 6,924 |   |   |   | (3,551 | ) |
| Less      net income attributable to noncontrolling interests       |   |                                                            | -       |   |   |   | - |   |   |   | (3,658 | ) |   |   | - |   |   |   | (3,658 | ) |
| Net      income (loss) attributable to Penn Virginia Corporation    |   | $                                                               | (7,516  | ) |   | $ | (10,275 | ) |   | $ | 3,658 |   |   | $ | 6,924 |   |   | $ | (7,209 | ) |

----

|                                                          |   | Condensed Consolidated Statements of Cash Flows |   |
|---------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                                                          |   | Three Months Ended March 31, 2010               |   |
|                                                          |   | Penn Virginia                                                       |   |   | Guarantor |   |   | Non-guarantor |   |   |   |   |   |   |   |
|                                                          |   | Corporation                                                              |   |   | Subsidiaries |   |   | Subsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                          |   | (in thousands)                                                      |   |
| Net      cash provided by (used in) operating activitities    |   | $                                                                        | (910   | ) |   | $ | 31,655 |   |   | $ | 48,522 |   |   | $ | - |   |   | $ | 79,267 |   |
| Cash      flows provided by (used in) investing activities:   |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions      from affiliates                            |   |                                                                     | -      |   |   |   | 184,500 |   |   |   | - |   |   |   | (184,500 | ) |   |   | - |   |
| Additions      to property and equipment                      |   |                                                                     | (271   | ) |   |   | (64,221 | ) |   |   | (7,986 | ) |   |   | - |   |   |   | (72,478 | ) |
| Proceeds      from the sale of assets and other               |   |                                                                     | -      |   |   |   | 23,273 |   |   |   | 272 |   |   |   | - |   |   |   | 23,545 |   |
| Cash      flows provided by (used in) investing    activities |   |                                                                     | (271   | ) |   |   | 143,552 |   |   |   | (7,714 | ) |   |   | (184,500 | ) |   |   | (48,933 | ) |
| Cash      flows provided by (used in) financing activities:   |   |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions      paid to noncontrolling interest holders    |   |                                                                     | -      |   |   |   | - |   |   |   | (22,501 | ) |   |   | - |   |   |   | (22,501 | ) |
| Net      proceeds from the sale of PVG units                  |   |                                                                     | -      |   |   |   | - |   |   |   | 177,000 |   |   |   | - |   |   |   | 177,000 |   |
| Net      repayments of PVR borrowings                         |   |                                                                     | -      |   |   |   | - |   |   |   | (2,000 | ) |   |   | - |   |   |   | (2,000 | ) |
| Capital      contributions from (distributions to) affiliates |   |                                                                     | -      |   |   |   | - |   |   |   | (184,500 | ) |   |   | 184,500 |   |   |   | - |   |
| Other                                                         |   |                                                                     | (1,944 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,944 | ) |
| Cash      flows provided by (used in) financing activities    |   |                                                                     | (1,944 | ) |   |   | - |   |   |   | (32,001 | ) |   |   | 184,500 |   |   |   | 150,555 |   |
| Net      increase in cash and cash equivalents                |   |                                                                     | (3,125 | ) |   |   | 175,207 |   |   |   | 8,807 |   |   |   | - |   |   |   | 180,889 |   |
| Cash      and cash equivalents - beginning of period          |   |                                                                     | 76,074 |   |   |   | 2,943 |   |   |   | 19,314 |   |   |   | - |   |   |   | 98,331 |   |
| Cash      and cash equivalents - end of period                |   | $                                                                        | 72,949 |   |   | $ | 178,150 |   |   | $ | 28,121 |   |   | $ | - |   |   | $ | 279,220 |   |

|                                                          |   | Condensed Consolidated Statements of Cash Flows |    |
|---------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
|                                                          |   | Three Months Ended March 31, 2009               |    |
|                                                          |   | Penn Virginia                                                       |    |   | Guarantor |   |   | Non-guarantor |   |   |   |   |   |   |   |
|                                                          |   | Corporation                                                              |    |   | Subsidiaries |   |   | Subsidiaries |   |   | Eliminations |   |   | Consolidated |   |
|                                                          |   | (in thousands)                                                      |    |
| Net      cash provided by operating activitities              |   | $                                                                        | 10,732  |   |   | $ | 58,594 |   |   | $ | 33,693 |   |   | $ | - |   |   | $ | 103,019 |   |
| Cash      flows provided by (used in) investing activities:   |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions      from (investments in) affiliates           |   |                                                                     | (50,458 | ) |   |   | 11,533 |   |   |   | - |   |   |   | 38,925 |   |   |   | - |   |
| Additions      to property and equipment                      |   |                                                                     | (406    | ) |   |   | (120,574 | ) |   |   | (18,306 | ) |   |   | - |   |   |   | (139,286 | ) |
| Proceeds      from the sale of assets and other               |   |                                                                     | -       |   |   |   | (11 | ) |   |   | 265 |   |   |   | - |   |   |   | 254 |   |
| Cash      flows provided by (used in) investing activities    |   |                                                                     | (50,864 | ) |   |   | (109,052 | ) |   |   | (18,041 | ) |   |   | 38,925 |   |   |   | (139,032 | ) |
| Cash      flows provided by (used in) financing activities:   |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions      paid to noncontrolling interest holders    |   |                                                                     | -       |   |   |   | - |   |   |   | (18,455 | ) |   |   | - |   |   |   | (18,455 | ) |
| Net      proceeds from borrowings                             |   |                                                                     | 50,458  |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,458 |   |
| Net      proceeds from PVR long-term debt                     |   |                                                                     | -       |   |   |   | - |   |   |   | 27,000 |   |   |   | - |   |   |   | 27,000 |   |
| Capital      contributions from (distributions to) affiliates |   |                                                                     | -       |   |   |   | 50,458 |   |   |   | (11,533 | ) |   |   | (38,925 | ) |   |   | - |   |
| Other                                                         |   |                                                                     | (2,349  | ) |   |   | - |   |   |   | (9,258 | ) |   |   | - |   |   |   | (11,607 | ) |
| Cash      flows provided by (used in) financing activities    |   |                                                                     | 48,109  |   |   |   | 50,458 |   |   |   | (12,246 | ) |   |   | (38,925 | ) |   |   | 47,396 |   |
| Net      increase in cash and cash equivalents                |   |                                                                     | 7,977   |   |   |   | - |   |   |   | 3,406 |   |   |   | - |   |   |   | 11,383 |   |
| Cash      and cash equivalents - beginning of period          |   |                                                                     | -       |   |   |   | - |   |   |   | 18,338 |   |   |   | - |   |   |   | 18,338 |   |
| Cash      and cash equivalents - end of period                |   | $                                                                        | 7,977   |   |   | $ | - |   |   | $ | 21,744 |   |   | $ | - |   |   | $ | 29,721 |   |

----

| 16. | New Accounting      Standards |
|-----|-------------------------------|

----

|   | • | the      volatility of commodity prices for natural gas, natural gas liquids, or      NGLs, crude oil and coal; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | our      ability to access external sources ofcapital; |
|--------|---------|--------------------------------------------------------|

|   | • | uncertainties      relating to the occurrence and success of capital-raising transactions,      including securities offerings and assetsales; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | reductions      in the borrowing base under theRevolver; |
|--------|---------|----------------------------------------------------------|

|   | • | our      ability to develop and replace oil and gas reserves and the price for      which such reserves can beacquired; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | any      impairment write-downs of our reserves or  assets; |
|--------|---------|-------------------------------------------------------------|

|   | • | reductions      in our anticipated capitalexpenditures; |
|--------|---------|---------------------------------------------------------|

|   | • | the      relationship between natural gas, NGL, crude oil and coal      prices; |
|--------|---------|---------------------------------------------------------------------------------|

|   | • | the      projected demand for and supply of natural gas, NGLs, crude oil and      coal; |
|--------|---------|-----------------------------------------------------------------------------------------|

|   | • | the      availability and costs of required drilling rigs, production equipment and      materials; |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | • | our      ability to obtain adequate pipeline transportation capacity for our oil      and gas production; |
|--------|---------|-----------------------------------------------------------------------------------------------------------|

|   | • | competition      among producers in the oil and natural gas and coal industries generally      and among natural gas midstreamcompanies; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      extent to which the amount and quality of actual production of our oil and      natural gas or PVR’s coal differ from estimated proved oil and gas      reserves and recoverable coalreserves; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | PVR’s      ability to generate sufficient cash from its businesses to maintain and      pay the quarterly distribution to its general partner and its      unitholders; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      experience and financial condition of PVR’s coal lessees and natural gas      midstream customers, including the lessees’ ability to satisfy their      royalty, environmental, reclamation and other obligations to PVR and      others; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | operating      risks, including unanticipated geological problems, incidental to our      business and to PVR’s coal and natural resource management or natural gas      midstream business; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | PVR’s      ability to acquire new coal reserves or natural gas midstream assets and      new sources of natural gas supply and connections to third-party pipelines      on satisfactory terms; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | PVR’s      ability to retain existing or acquire new natural gas midstream customers      and coal lessees; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------|

|   | • | the      ability of PVR’s lessees to produce sufficient quantities of coal on an      economic basis from PVR’s reserves and obtain favorable contracts for such      production; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      occurrence of unusual weather or operating conditions including force      majeure events; |
|--------|---------|-----------------------------------------------------------------------------------------------------|

|   | • | delays      in anticipated start-up dates of our oil and natural gas production, of      PVR’s lessees’ mining operations and related coal infrastructure projects      and new processing plants in PVR’s natural gas midstream      business; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | environmental      risks affecting the drilling and producing of oil and gas wells, the      mining of coal reserves or the production, gathering and processing of      natural gas; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      timing of receipt of necessary governmental permits by us and by PVR or      PVR’s lessees; |
|--------|---------|------------------------------------------------------------------------------------------------------------|

|   | • | hedging      results; |
|--------|---------|-----------------------|

|   | • | accidents; |
|--------|---------|------------|

|   | • | changes      in governmental regulation or enforcement practices, especially with      respect to environmental, health and safety matters, including with      respect to emissions levels applicable to coal-burning power      generators; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | uncertainties      relating to the outcome of current and future litigation regarding mine      permitting; |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

|   | • | risks      and uncertainties relating to general domestic and international economic      (including inflation, interest rates and financial and credit markets) and      political conditions (including the impact of potential terrorist      attacks); |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | PVG’s      ability to generate sufficient cash from its interests in PVR to maintain      and pay the quarterly distribution to its  unitholders; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | uncertainties      relating to our continued ownership of interests in PVG and PVR;      and |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | • | other      risks set forth in our Annual Report on Form 10-K for the year ended      December 31, 2009. |
|--------|---------|---------------------------------------------------------------------------------------------------------|

----

| Item      2 | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|-------------|-------------------------------------------------------------------------------------------------------|

----

----

|                                                           |   | Three Months Ended March 31, |    |
|----------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                           |   | 2010                                             |    |   | 2009 |   |
| Revenues                                                       |   | $                                                | 255,511 |   |   | $ | 199,160 |   |
| Expenses                                                       |   |                                             | 228,388 |   |   |   | 206,599 |   |
| Operating      income (loss)                                   |   |                                             | 27,123  |   |   |   | (7,439 | ) |
| Other      income (expense)                                    |   |                                             |    |   |   |   |   |   |
| Interest      expense                                          |   |                                             | (19,506 | ) |   |   | (12,502 | ) |
| Derivatives                                                    |   |                                             | 22,309  |   |   |   | 10,255 |   |
| Other                                                          |   |                                             | 1,573   |   |   |   | 1,573 |   |
| Income      tax (expense) benefit                              |   |                                             | (8,559  | ) |   |   | 4,562 |   |
| Net      income (loss)                                         |   |                                             | 22,940  |   |   |   | (3,551 | ) |
| Less:      Net income attributable to noncontrolling interests |   |                                             | (9,346  | ) |   |   | (3,658 | ) |
| Income      (loss) attributable to Penn Virginia Corporation   |   | $                                                | 13,594  |   |   | $ | (7,209 | ) |

We are engaged in three primary business segments asfollows:

|   | • | Oil      and Gas |
|--------|---------|------------------|

|   | • | PVR      Coal and Natural ResourceManagement |
|--------|---------|----------------------------------------------|

|   | • | PVR      Natural Gas Midstream |
|--------|---------|--------------------------------|

|                                          |   |                    |    |   | PVR Coal    |   |   |             |   |   |           |   |   |         |    |
|-----------------------------------------------|--------|-------------------------|---------|--------|------------------|--------|--------|------------------|--------|--------|----------------|--------|--------|--------------|---------|
|                                          |   |                    |    |   | and Natural |   |   | PVR              |   |   |           |   |   |         |    |
|                                          |   |                    |    |   | Resource         |   |   | Natural Gas |   |   | Eliminations   |   |   |         |    |
|                                          |   | Oil & Gas |    |   | Management       |   |   | Midstream        |   |   | and Other |   |   | Consolidated |    |
| Three      Months Ended March 31, 2010:       |   |                    |    |   |             |   |   |             |   |   |           |   |   |         |    |
| Revenues                                      |   | $                       | 67,770  |   |             | $      | 33,560 |             |   | $      | 172,918        |   |   | $            | (18,737 | ) |   | $ | 255,511 |   |
| Cost      of midstream gas purchased          |   |                    | -       |   |             |   | -      |             |   |   | 141,795        |   |   |         | (18,135 | ) |   |   | 123,660 |   |
|                                          |   |                    | 67,770  |   |             |   | 33,560 |             |   |   | 31,123         |   |   |         | (602    | ) |   |   | 131,851 |   |
| Operating      costs and expenses             |   |                    | 29,434  |   |             |   | 5,873  |             |   |   | 13,246         |   |   |         | 8,136   |   |   |   | 56,689 |   |
| Depreciation,      depletion and amortization |   |                    | 29,022  |   |             |   | 7,326  |             |   |   | 10,492         |   |   |         | 734     |   |   |   | 47,574 |   |
| Impairments      and loss on sale of assets   |   |                    | 465     |   |             |   | -      |             |   |   | -              |   |   |         | -       |   |   |   | 465 |   |
| Operating      income (loss)                  |   | $                       | 8,849   |   |             | $      | 20,361 |             |   | $      | 7,385          |   |   | $            | (9,472  | ) |   | $ | 27,123 |   |
|                                          |   |                    |    |   |             |   |   |             |   |   |           |   |   |         |    |   |   |   |   |   |
| Three      Months Ended March 31, 2009:       |   |                    |    |   |             |   |   |             |   |   |           |   |   |         |    |   |   |   |   |   |
| Revenues                                      |   | $                       | 64,565  |   |             | $      | 38,252 |             |   | $      | 118,507        |   |   | $            | (22,164 | ) |   | $ | 199,160 |   |
| Cost      of midstream gas purchased          |   |                    | -       |   |             |   | -      |             |   |   | 100,620        |   |   |         | (21,222 | ) |   |   | 79,398 |   |
|                                          |   |                    | 64,565  |   |             |   | 38,252 |             |   |   | 17,887         |   |   |         | (942    | ) |   |   | 119,762 |   |
| Operating      costs and expenses             |   |                    | 46,025  |   |             |   | 5,884  |             |   |   | 11,825         |   |   |         | 5,198   |   |   |   | 68,932 |   |
| Depreciation,      depletion and amortization |   |                    | 39,999  |   |             |   | 7,394  |             |   |   | 9,109          |   |   |         | 571     |   |   |   | 57,073 |   |
| Impairments                                   |   |                    | 1,196   |   |             |   | -      |             |   |   | -              |   |   |         | -       |   |   |   | 1,196 |   |
| Operating      income (loss)                  |   | $                       | (22,655 | )      |             | $      | 24,974 |             |   | $      | (3,047         | )      |   | $            | (6,711  | ) |   | $ | (7,439 | ) |

----

|                                          |   | Three Months Ended March 31, |   |   | Favorable |   |    |          |   |
|-----------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|---------|---------------|--------|
|                                          |   | 2010                                             |   |   | 2009      |   |    | (Unfavorable) |   |   | % Change |   |
| Revenues                                      |   |                                             |   |   |      |   |    |          |   |   |   |   |
| Natural      gas                              |   | $                                                | 47,988 |   |      | $      | 52,821  |          |   | $ | (4,833 | ) |   |   | (9 | )% |
| Crude      oil                                |   |                                             | 13,846 |   |      |   | 6,328   |          |   |   | 7,518 |   |   |   | 119 | % |
| NGL                                           |   |                                             | 4,866  |   |      |   | 3,370   |          |   |   | 1,496 |   |   |   | 44 | % |
| Total      product revenues                   |   |                                             | 66,700 |   |      |   | 62,519  |          |   |   | 4,181 |   |   |   | 7 | % |
| Other      income                             |   |                                             | 1,070  |   |      |   | 2,046   |          |   |   | (976 | ) |   |   | (48 | )% |
| Total      revenues                           |   |                                             | 67,770 |   |      |   | 64,565  |          |   |   | 3,205 |   |   |   | 5 | % |
| Expenses                                      |   |                                             |   |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Operating                                     |   |                                             | 11,968 |   |      |   | 14,763  |          |   |   | 2,795 |   |   |   | 19 | % |
| Taxes      other than income                  |   |                                             | 4,905  |   |      |   | 4,826   |          |   |   | (79 | ) |   |   | (2 | )% |
| General      and administrative               |   |                                             | 6,532  |   |      |   | 5,124   |          |   |   | (1,408 | ) |   |   | (27 | )% |
| Production      costs                         |   |                                             | 23,405 |   |      |   | 24,713  |          |   |   | 1,308 |   |   |   | 5 | % |
| Exploration                                   |   |                                             | 6,029  |   |      |   | 21,312  |          |   |   | 15,283 |   |   |   | 72 | % |
| Depreciation,      depletion and amortization |   |                                             | 29,022 |   |      |   | 39,999  |          |   |   | 10,977 |   |   |   | 27 | % |
| Impairments                                   |   |                                             | -      |   |      |   | 1,196   |          |   |   | 1,196 |   |   |   | 100 | % |
| Loss      on sale of assets                   |   |                                             | 465    |   |      |   | -       |          |   |   | (465 | ) |   |   | n/a |   |
| Total      expenses                           |   |                                             | 58,921 |   |      |   | 87,220  |          |   |   | 28,299 |   |   |   | 32 | % |
| Operating      income (loss)                  |   | $                                                | 8,849  |   |      | $      | (22,655 | )             |   | $ | 31,504 |   |   |   | (139 | )% |
|                                          |   |                                             |   |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Production:                                   |   |                                             |   |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Natural      gas (MMcf)                       |   |                                             | 8,568  |   |      |   | 11,802  |          |   |   | (3,234 | ) |   |   | (27 | )% |
| Crude      oil (MBbl)                         |   |                                             | 186    |   |      |   | 171     |          |   |   | 15 |   |   |   | 9 | % |
| NGL      (MBbl)                               |   |                                             | 109    |   |      |   | 147     |          |   |   | (38 | ) |   |   | (26 | )% |
| Total      production (MMcfe)                 |   |                                             | 10,338 |   |      |   | 13,710  |          |   |   | (3,372 | ) |   |   | (25 | )% |
|                                          |   |                                             |   |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Rates:                                        |   |                                             |   |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Natural      gas ($/Mcf)                      |   | $                                                | 5.60   |   |      | $      | 4.48    |          |   | $ | 1.12 |   |   |   | 25 | % |
| Crude      oil ($/Bbl)                        |   |                                             | 74.44  |   |      |   | 37.01   |          |   |   | 37.43 |   |   |   | 101 | % |
| NGL      ($/Bbl)                              |   |                                             | 44.64  |   |      |   | 22.93   |          |   |   | 21.71 |   |   |   | 95 | % |
| Total      ($/Mcfe)                           |   | $                                                | 6.45   |   |      | $      | 4.56    |          |   | $ | 1.89 |   |   |   | 41 | % |

----

|                  |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|-----------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                  |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
|                  |   | (MMcfe)                                          |   |   |      |   |   |          |   |
| East      Texas       |   |                                             | 2,583  |   |      |   | 3,676  |          |   |   | (1,093 | ) |   |   | (30 | )% |
| Appalachia            |   |                                             | 2,596  |   |      |   | 2,899  |          |   |   | (303 | ) |   |   | (10 | )% |
| Mid-Continent         |   |                                             | 3,212  |   |      |   | 2,856  |          |   |   | 356 |   |   |   | 12 | % |
| Mississippi           |   |                                             | 1,652  |   |      |   | 2,094  |          |   |   | (442 | ) |   |   | (21 | )% |
| Gulf      Coast       |   |                                             | 295    |   |      |   | 2,185  |          |   |   | (1,890 | ) |   |   | (86 | )% |
| Total      production |   |                                             | 10,338 |   |      |   | 13,710 |          |   |   | (3,372 | ) |   |   | (25 | )% |

|                |   | Three Months Ended March      31, |   |   | Favorable |   |   |          |   |
|---------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| East      Texas     |   | $                                                | 16,017 |   |      | $      | 15,919 |          |   | $ | 98 |   |   |   | 1 | % |
| Appalachia          |   |                                             | 14,025 |   |      |   | 15,000 |          |   |   | (975 | ) |   |   | (7 | )% |
| Mid-Continent       |   |                                             | 25,319 |   |      |   | 9,945  |          |   |   | 15,374 |   |   |   | 155 | % |
| Mississippi         |   |                                             | 9,163  |   |      |   | 10,470 |          |   |   | (1,307 | ) |   |   | (12 | )% |
| Gulf      Coast     |   |                                             | 2,176  |   |      |   | 11,185 |          |   |   | (9,009 | ) |   |   | (81 | )% |
| Total      revenues |   | $                                                | 66,700 |   |      | $      | 62,519 |          |   | $ | 4,181 |   |   |   | 7 | % |

|             |   | 2009 Revenue Variance Due to |    |
|------------------|--------|--------------------------------------------------|---------|
|             |   | Volume                                           |    |   | Price |   |   | Total |   |
| Natural      gas |   | $                                                | (14,474 | ) |   | $ | 9,641 |   |   | $ | (4,833 | ) |
| Crude      oil   |   |                                             | 555     |   |   |   | 6,963 |   |   |   | 7,518 |   |
| NGL              |   |                                             | (871    | ) |   |   | 2,367 |   |   |   | 1,496 |   |
|             |   | $                                                | (14,790 | ) |   | $ | 18,971 |   |   | $ | 4,181 |   |

----

|                                                            |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|-----------------------------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                                                            |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| Natural      gas revenues as reported                           |   | $                                                | 47,988 |   |      | $      | 52,821 |          |   | $ | (4,833 | ) |   |   | (9 | )% |
| Cash      settlements on natural gas derivatives                |   |                                             | 8,889  |   |      |   | 14,962 |          |   |   | (6,073 | ) |   |   | (41 | )% |
| Natural      gas revenues adjusted for derivatives              |   | $                                                | 56,877 |   |      | $      | 67,783 |          |   | $ | (10,906 | ) |   |   | (16 | )% |
|                                                            |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Natural      gas revenue rates per Mcf, as reported             |   | $                                                | 5.60   |   |      | $      | 4.48   |          |   | $ | 1.12 |   |   |   | 25 | % |
| Cash      settlements on natural gas derivatives per Mcf        |   |                                             | 1.04   |   |      |   | 1.27   |          |   |   | (0.23 | ) |   |   | (18 | )% |
| Natural      gas revenue rates per Mcf adjusted for derivatives |   | $                                                | 6.64   |   |      | $      | 5.75   |          |   | $ | 0.89 |   |   |   | 16 | % |
|                                                            |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Crude      oil revenues as reported                             |   | $                                                | 13,846 |   |      | $      | 6,328  |          |   | $ | 7,518 |   |   |   | 119 | % |
| Cash      settlements on crude oil derivatives                  |   |                                             | 147    |   |      |   | 1,350  |          |   |   | (1,203 | ) |   |   | (89 | )% |
| Crude      oil revenues adjusted for derivatives                |   | $                                                | 13,993 |   |      | $      | 7,678  |          |   | $ | 6,315 |   |   |   | 82 | % |
|                                                            |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Crude      oil revenue rates per Bbl, as reported               |   | $                                                | 74.44  |   |      | $      | 37.01  |          |   | $ | 37.43 |   |   |   | 101 | % |
| Cash      settlements on crude oil derivatives per Bbl          |   |                                             | 0.79   |   |      |   | 7.89   |          |   |   | (7.10 | ) |   |   | (90 | )% |
| Crude      oil revenue rates per Bbl adjusted for derivatives   |   | $                                                | 75.23  |   |      | $      | 44.90  |          |   | $ | 30.33 |   |   |   | 68 | % |

|                                 |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|--------------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                                 |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| Operating                            |   | $                                                | 1.16   |   |      | $      | 1.08   |          |   | $ | (0.08 | ) |   |   | (8 | )% |
| Taxes      other than income         |   |                                             | 0.47   |   |      |   | 0.35   |          |   |   | (0.12 | ) |   |   | (35 | )% |
| General      and administrative      |   |                                             | 0.63   |   |      |   | 0.37   |          |   |   | (0.26 | ) |   |   | (69 | )% |
| Total      production costs per Mcfe |   | $                                                | 2.26   |   |      | $      | 1.80   |          |   |   | (0.46 | ) |   |   | (26 | )% |

----

|                            |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|---------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                            |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| Dry      hole costs             |   | $                                                | 27     |   |      | $      | 1,689  |          |   | $ | 1,662 |   |   |   | 98 | % |
| Geological      and geophysical |   |                                             | 420    |   |      |   | 738    |          |   |   | 318 |   |   |   | 43 | % |
| Unproved      leasehold         |   |                                             | 5,056  |   |      |   | 8,702  |          |   |   | 3,646 |   |   |   | 42 | % |
| Standby      rig charges        |   |                                             | -      |   |      |   | 9,864  |          |   |   | 9,864 |   |   |   | n/a |   |
| Other                           |   |                                             | 526    |   |      |   | 319    |          |   |   | (207 | ) |   |   | (65 | )% |
|                            |   | $                                                | 6,029  |   |      | $      | 21,312 |          |   | $ | 15,283 |   |   |   | 72 | % |

----

|                                          |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|-----------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                                          |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| Revenues                                      |   |                                             |   |   |      |   |   |          |   |   |   |   |
| Coal      royalties                           |   | $                                                | 28,226 |   |      | $      | 30,630 |          |   | $ | (2,404 | ) |   |   | (8 | )% |
| Coal      services                            |   |                                             | 1,973  |   |      |   | 1,888  |          |   |   | 85 |   |   |   | 5 | % |
| Timber                                        |   |                                             | 1,305  |   |      |   | 1,317  |          |   |   | (12 | ) |   |   | (1 | )% |
| Oil      and gas royalty                      |   |                                             | 744    |   |      |   | 703    |          |   |   | 41 |   |   |   | 6 | % |
| Other                                         |   |                                             | 1,312  |   |      |   | 3,714  |          |   |   | (2,402 | ) |   |   | (65 | )% |
| Total      revenues                           |   |                                             | 33,560 |   |      |   | 38,252 |          |   |   | (4,692 | ) |   |   | (12 | )% |
| Expenses                                      |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Coal      royalties                           |   |                                             | 1,456  |   |      |   | 1,224  |          |   |   | (232 | ) |   |   | (19 | )% |
| Other      operating                          |   |                                             | 515    |   |      |   | 883    |          |   |   | 368 |   |   |   | 42 | % |
| Taxes      other than income                  |   |                                             | 475    |   |      |   | 425    |          |   |   | (50 | ) |   |   | (12 | )% |
| General      and administrative               |   |                                             | 3,427  |   |      |   | 3,352  |          |   |   | (75 | ) |   |   | (2 | )% |
| Depreciation,      depletion and amortization |   |                                             | 7,326  |   |      |   | 7,394  |          |   |   | 68 |   |   |   | 1 | % |
| Total      expenses                           |   |                                             | 13,199 |   |      |   | 13,278 |          |   |   | 79 |   |   |   | 1 | % |
| Operating      income                         |   | $                                                | 20,361 |   |      | $      | 24,974 |          |   | $ | (4,613 | ) |   |   | (18 | )% |
|                                          |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Coal      royalty tons by region              |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Central      Appalachia                       |   |                                             | 3,929  |   |      |   | 4,658  |          |   |   | (729 | ) |   |   | (16 | )% |
| Northern      Appalachia                      |   |                                             | 1,038  |   |      |   | 1,057  |          |   |   | (19 | ) |   |   | (2 | )% |
| Illinois      Basin                           |   |                                             | 1,082  |   |      |   | 1,261  |          |   |   | (179 | ) |   |   | (14 | )% |
| San      Juan Basin                           |   |                                             | 2,194  |   |      |   | 1,772  |          |   |   | 422 |   |   |   | 24 | % |
| Total                                         |   |                                             | 8,243  |   |      |   | 8,748  |          |   |   | (505 | ) |   |   | (6 | )% |
|                                          |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Coal      royalties revenue by region         |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Central      Appalachia                       |   | $                                                | 18,530 |   |      | $      | 21,683 |          |   | $ | (3,153 | ) |   |   | (15 | )% |
| Northern      Appalachia                      |   |                                             | 1,950  |   |      |   | 1,951  |          |   |   | (1 | ) |   |   | (0 | )% |
| Illinois      Basin                           |   |                                             | 2,942  |   |      |   | 3,241  |          |   |   | (299 | ) |   |   | (9 | )% |
| San      Juan Basin                           |   |                                             | 4,804  |   |      |   | 3,755  |          |   |   | 1,049 |   |   |   | 28 | % |
|                                          |   | $                                                | 28,226 |   |      | $      | 30,630 |          |   | $ | (2,404 | ) |   |   | (8 | )% |
| Less      coal royalties expenses      1      |   |                                             | (1,456 | )      |      |   | (1,224 | )             |   |   | (232 | ) |   |   | 19 | % |
| Net      coal royalties revenues              |   | $                                                | 26,770 |   |      | $      | 29,406 |          |   | $ | (2,636 | ) |   |   | (9 | )% |
|                                          |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Coal      royalties per ton by region ($/ton) |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Central      Appalachia                       |   | $                                                | 4.72   |   |      | $      | 4.66   |          |   | $ | 0.06 |   |   |   | 1 | % |
| Northern      Appalachia                      |   |                                             | 1.88   |   |      |   | 1.85   |          |   |   | 0.03 |   |   |   | 2 | % |
| Illinois      Basin                           |   |                                             | 2.72   |   |      |   | 2.57   |          |   |   | 0.15 |   |   |   | 6 | % |
| San      Juan Basin                           |   |                                             | 2.19   |   |      |   | 2.12   |          |   |   | 0.07 |   |   |   | 3 | % |
|                                          |   |                                             | 3.42   |   |      |   | 3.50   |          |   | $ | (0.08 | ) |   |   | (2 | )% |
| Less      coal royalties expenses      1      |   |                                             | (0.17  | )      |      |   | (0.14  | )             |   |   | (0.03 | ) |   |   | (21 | )% |
| Net      coal royalties revenues              |   | $                                                | 3.25   |   |      | $      | 3.36   |          |   | $ | (0.11 | ) |   |   | (4 | )% |

----

----

----

|                                                          |   | Three Months Ended March 31, |    |   | Favorable |   |    |          |   |
|---------------------------------------------------------------|--------|--------------------------------------------------|---------|--------|-----------|--------|---------|---------------|--------|
|                                                          |   | 2010                                             |    |   | 2009      |   |    | (Unfavorable) |   |   | % Change |   |
| Revenues                                                      |   |                                             |    |   |      |   |    |          |   |   |   |   |
| Residue      gas                                              |   | $                                                | 94,896  |   |      | $      | 81,194  |          |   | $ | 13,702 |   |   |   | 17 | % |
| Natural      gas liquids                                      |   |                                             | 66,643  |   |      |   | 30,606  |          |   |   | 36,037 |   |   |   | 118 | % |
| Condensate                                                    |   |                                             | 6,736   |   |      |   | 2,903   |          |   |   | 3,833 |   |   |   | 132 | % |
| Gathering,      processing and transportation fees            |   |                                             | 2,334   |   |      |   | 2,676   |          |   |   | (342 | ) |   |   | (13 | )% |
| Total      natural gas midstream revenues 1                   |   |                                             | 170,609 |   |      |   | 117,379 |          |   |   | 53,230 |   |   |   | 45 | % |
| Equity      earnings in equity investment                     |   |                                             | 1,683   |   |      |   | 1,119   |          |   |   | 564 |   |   |   | 50 | % |
| Producer      services                                        |   |                                             | 626     |   |      |   | 9       |          |   |   | 617 |   |   |   | 6856 | % |
| Total      revenues                                           |   |                                             | 172,918 |   |      |   | 118,507 |          |   |   | 54,411 |   |   |   | 46 | % |
| Expenses                                                      |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Cost      of midstream gas purchased      1                   |   |                                             | 141,795 |   |      |   | 100,620 |          |   |   | (41,175 | ) |   |   | (41 | )% |
| Operating                                                     |   |                                             | 7,292   |   |      |   | 6,783   |          |   |   | (509 | ) |   |   | (8 | )% |
| Taxes      other than income                                  |   |                                             | 1,043   |   |      |   | 798     |          |   |   | (245 | ) |   |   | (31 | )% |
| General      and administrative                               |   |                                             | 4,911   |   |      |   | 4,244   |          |   |   | (667 | ) |   |   | (16 | )% |
| Depreciation      and amortization                            |   |                                             | 10,492  |   |      |   | 9,109   |          |   |   | (1,383 | ) |   |   | (15 | )% |
| Total      operating expenses                                 |   |                                             | 165,533 |   |      |   | 121,554 |          |   |   | (43,979 | ) |   |   | (36 | )% |
| Operating      income                                         |   | $                                                | 7,385   |   |      | $      | (3,047  | )             |   | $ | 10,432 |   |   |   | 342 | % |
|                                                          |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Operating      Statistics                                     |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| System      throughput volumes (MMcf)                         |   |                                             | 27,725  |   |      |   | 32,280  |          |   |   | (4,555 | ) |   |   | (14 | )% |
| Daily      throughput volumes (MMcfd)                         |   |                                             | 308     |   |      |   | 359     |          |   |   | (51 | ) |   |   | (14 | )% |
|                                                          |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Gross      margin                                             |   | $                                                | 28,814  |   |      | $      | 16,759  |          |   | $ | 12,055 |   |   |   | 72 | % |
| Cash      impact of derivatives                               |   |                                             | 780     |   |      |   | 3,792   |          |   |   | (3,012 | ) |   |   | (79 | )% |
| Gross      margin, adjusted for impact of derivatives         |   | $                                                | 29,594  |   |      | $      | 20,551  |          |   | $ | 9,043 |   |   |   | 44 | % |
|                                                          |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Gross      margin ($/Mcf)                                     |   | $                                                | 1.04    |   |      | $      | 0.52    |          |   | $ | 0.52 |   |   |   | 100 | % |
| Cash      impact of derivatives ($/Mcf)                       |   |                                             | 0.03    |   |      |   | 0.12    |          |   |   | (0.09 | ) |   |   | (75 | )% |
| Gross      margin, adjusted for impact of derivatives ($/Mcf) |   | $                                                | 1.07    |   |      | $      | 0.64    |          |   | $ | 0.43 |   |   |   | 68 | % |

----

| 1 | In the three months ended March      31, 2010 and 2009, PVR recorded $18.2 million and $21.2 million of natural      gas midstream revenue and $18.2      million and $21.2 million for the cost of midstream gas purchased related      to the purchase of natural gas from our subsidiary Penn Virginia      Oil and Gas, L.P., and the subsequent sale of that gas to third parties.      PVR takes title to the gas prior to transporting it to third parties.      These      transactions do not impact the gross  margin. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Depreciation and amortization expenses increased primarily due toPVR’s acquisitions and capital expansions on the 
Panhandle System, including the Sweetwater plantacquisition and Spearman plant construction.

----

|                                                             |   | Three Months Ended March 31, |    |   | Favorable |   |    |          |   |
|------------------------------------------------------------------|--------|--------------------------------------------------|---------|--------|-----------|--------|---------|---------------|--------|
|                                                             |   | 2010                                             |    |   | 2009      |   |    | (Unfavorable) |   |   | % Change |   |
| Operating      income (loss) from segments                       |   | $                                                | 36,595  |   |      | $      | (728    | )             |   | $ | 37,323 |   |   |   | 5127 | % |
| Operating      loss from Eliminations and other                  |   |                                             | (9,472  | )      |      |   | (6,711  | )             |   |   | (2,761 | ) |   |   | (41 | )% |
| Operating      income (loss)                                     |   |                                             | 27,123  |   |      |   | (7,439  | )             |   |   | 34,562 |   |   |   | 465 | % |
| Other      income (expense)                                      |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Interest      expense                                            |   |                                             | (19,506 | )      |      |   | (12,502 | )             |   |   | (7,004 | ) |   |   | (56 | )% |
| Derivatives                                                      |   |                                             | 22,309  |   |      |   | 10,255  |          |   |   | 12,054 |   |   |   | 118 | % |
| Other                                                            |   |                                             | 1,573   |   |      |   | 1,573   |          |   |   | - |   |   |   | 0 | % |
| Income      tax (expense) benefit                                |   |                                             | (8,559  | )      |      |   | 4,562   |          |   |   | (13,121 | ) |   |   | (288 | )% |
| Net      income (loss)                                           |   |                                             | 22,940  |   |      |   | (3,551  | )             |   |   | 26,491 |   |   |   | 746 | % |
| Less:                                                            |   |                                             |    |   |      |   |    |          |   |   |   |   |   |   |   |   |
| Net      income attributable to noncontrolling interests         |   |                                             | (9,346  | )      |      |   | (3,658  | )             |   |   | (5,688 | ) |   |   | (155 | )% |
| Net      income (loss) attributable to Penn Virginia Corporation |   | $                                                | 13,594  |   |      | $      | (7,209  | )             |   | $ | 20,803 |   |   |   | 289 | % |

|                                                       |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|------------------------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                                                       |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| Interest      and accretion on borrowings and related fees |   | $                                                | 14,031 |   |      | $      | 6,733  |          |   | $ | (7,298 | ) |   |   | (108 | )% |
| Interest      rate swaps                                   |   |                                             | -      |   |      |   | 438    |          |   |   | 438 |   |   |   | 100 | % |
| Capitalized      interest                                  |   |                                             | (362   | )      |      |   | (364   | )             |   |   | (2 | ) |   |   | (1 | )% |
| Other                                                      |   |                                             | 2      |   |      |   | 79     |          |   |   | 77 |   |   |   | 97 | % |
| Penn      Virginia interest expense                        |   |                                             | 13,671 |   |      |   | 6,886  |          |   |   | (6,785 | ) |   |   | (99 | )% |
|                                                       |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| PVR      interest and accretion on borrowings              |   |                                             | 5,253  |   |      |   | 4,868  |          |   |   | (385 | ) |   |   | (8 | )% |
| PVR      interest rate swaps                               |   |                                             | 582    |   |      |   | 825    |          |   |   | 243 |   |   |   | 29 | % |
| PVR      capitalized interest                              |   |                                             | -      |   |      |   | (77    | )             |   |   | (77 | ) |   |   | (100 | )% |
| PVR      interest expense                                  |   |                                             | 5,835  |   |      |   | 5,616  |          |   |   | (219 | ) |   |   | (4 | )% |
|                                                       |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Total      interest expense                                |   | $                                                | 19,506 |   |      | $      | 12,502 |          |   | $ | (7,004 | ) |   |   | (56 | )% |

----

|                                          |   | Three Months Ended March 31, |   |   | Favorable |   |   |          |   |
|-----------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------|--------|--------|---------------|--------|
|                                          |   | 2010                                             |   |   | 2009      |   |   | (Unfavorable) |   |   | % Change |   |
| Oil      and gas unrealized derivative gain   |   | $                                                | 19,176 |   |      | $      | 1,104  |          |   | $ | 18,072 |   |   |   | 1637 | % |
| Oil      and gas realized gain                |   |                                             | 9,036  |   |      |   | 16,312 |          |   |   | (7,276 | ) |   |   | (45 | )% |
| Interest      rate swap unrealized gain       |   |                                             | 2,267  |   |      |   | -      |          |   |   | 2,267 |   |   |   | n/a |   |
| Interest      rate swap realized loss         |   |                                             | (602   | )      |      |   | -      |          |   |   | (602 | ) |   |   | n/a |   |
| Penn      Virginia derivatives income         |   |                                             | 29,877 |   |      |   | 17,416 |          |   |   | 12,461 |   |   |   | 72 | % |
|                                          |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| PVR      Midstream unrealized derivative loss |   |                                             | (5,218 | )      |      |   | (9,838 | )             |   |   | 4,620 |   |   |   | 47 | % |
| PVR      Midstream realized gain              |   |                                             | 780    |   |      |   | 3,792  |          |   |   | (3,012 | ) |   |   | (79 | )% |
| PVR      interest rate swap unrealized loss   |   |                                             | (704   | )      |      |   | (159   | )             |   |   | (545 | ) |   |   | (343 | )% |
| PVR      interest rate swap realized loss     |   |                                             | (2,426 | )      |      |   | (956   | )             |   |   | (1,470 | ) |   |   | (154 | )% |
| PVR      derivatives income expense           |   |                                             | (7,568 | )      |      |   | (7,161 | )             |   |   | (407 | ) |   |   | (6 | )% |
|                                          |   |                                             |   |   |      |   |   |          |   |   |   |   |   |   |   |   |
| Total      derivatives income                 |   | $                                                | 22,309 |   |      | $      | 10,255 |          |   | $ | 12,054 |   |   |   | 118 | % |

----

|                                                                         |   | Oil & Gas, |    |   |    |   |    |         |   |
|------------------------------------------------------------------------------|--------|--------------------------|---------|--------|---------|--------|---------|--------------|--------|
|                                                                         |   | PVA Corporate       |    |   |    |   |    |         |   |
| For the Three Months Ended March 31, 2010 |   | & Other         |    |   | PVG/PVR |   |    | Consolidated |   |
| Cash      flows from operating activities                                    |   | $                        | 30,745  |   |    | $      | 48,522  |         |   | $ | 79,267 |   |
| Cash      flows from investing activities                                    |   |                     |    |   |    |   |    |         |   |   |   |   |
| Acquisitions                                                                 |   |                     | (27,350 | )      |    |   | (29     | )            |   |   | (27,379 | ) |
| Additions      to property and equipment                                     |   |                     | (37,142 | )      |    |   | (7,957  | )            |   |   | (45,099 | ) |
| Other                                                                        |   |                     | 23,273  |   |    |   | 272     |         |   |   | 23,545 |   |
| Net      cash used in investing activities                                   |   |                     | (41,219 | )      |    |   | (7,714  | )            |   |   | (48,933 | ) |
| Cash      flows from financing activities                                    |   |                     |    |   |    |   |    |         |   |   |   |   |
| Dividends      paid                                                          |   |                     | (2,556  | )      |    |   | -       |         |   |   | (2,556 | ) |
| Distributions      received (paid)                                           |   |                     | 7,652   |   |    |   | (30,153 | )            |   |   | (22,501 | ) |
| Repayments      of borrowings                                                |   |                     | -       |   |    |   | (2,000  | )            |   |   | (2,000 | ) |
| Net      proceeds from the sale of PVG units                                 |   |                     | 177,000 |   |    |   | -       |         |   |   | 177,000 |   |
| Other                                                                        |   |                     | 612     |   |    |   | -       |         |   |   | 612 |   |
| Net      cash provided by financing activities                               |   |                     | 182,708 |   |    |   | (32,153 | )            |   |   | 150,555 |   |
| Net      increase in cash and cash equivalents                               |   | $                        | 172,234 |   |    | $      | 8,655   |         |   | $ | 180,889 |   |

|                                                                         |   | Oil & Gas, |     |   |    |   |    |         |   |
|------------------------------------------------------------------------------|--------|--------------------------|----------|--------|---------|--------|---------|--------------|--------|
|                                                                         |   | PVA Corporate       |     |   |    |   |    |         |   |
| For the Three Months Ended March 31, 2009 |   | & Other         |     |   | PVG/PVR |   |    | Consolidated |   |
| Cash      flows from operating activities                                    |   | $                        | 69,360   |   |    | $      | 33,659  |         |   | $ | 103,019 |   |
| Cash      flows from investing activities                                    |   |                     |     |   |    |   |    |         |   |   |   |   |
| Acquisitions                                                                 |   |                     | (1,817   | )      |    |   | (1,256  | )            |   |   | (3,073 | ) |
| Additions      to property and equipment                                     |   |                     | (119,163 | )      |    |   | (17,050 | )            |   |   | (136,213 | ) |
| Other                                                                        |   |                     | (11      | )      |    |   | 265     |         |   |   | 254 |   |
| Net      cash used in investing activities                                   |   |                     | (120,991 | )      |    |   | (18,041 | )            |   |   | (139,032 | ) |
| Cash      flows from financing activities                                    |   |                     |     |   |    |   |    |         |   |   |   |   |
| Dividends      paid                                                          |   |                     | (2,349   | )      |    |   | -       |         |   |   | (2,349 | ) |
| Distributions      received (paid)                                           |   |                     | 11,533   |   |    |   | (29,988 | )            |   |   | (18,455 | ) |
| Debt      borrowings (repayments)                                            |   |                     | (7,542   | )      |    |   | -       |         |   |   | (7,542 | ) |
| Proceeds      from borrowings                                                |   |                     | 58,000   |   |    |   | 27,000  |         |   |   | 85,000 |   |
| Other,      net                                                              |   |                     | -        |   |    |   | (9,258  | )            |   |   | (9,258 | ) |
| Net      cash provided by (used in) financing activities                     |   |                     | 59,642   |   |    |   | (12,246 | )            |   |   | 47,396 |   |
| Net      increase in cash and cash equivalents                               |   | $                        | 8,011    |   |    | $      | 3,372   |         |   | $ | 11,383 |   |

----

|                                           |   | Three Months Ended March 31, |   |
|------------------------------------------------|--------|--------------------------------------------------|--------|
|                                           |   | 2010                                             |   |   | 2009 |   |
| Oil      and gas:                              |   |                                             |   |   |   |   |
| Development      drilling                      |   | $                                                | 37,927 |   |   | $ | 76,483 |   |
| Exploration      drilling                      |   |                                             | 3,653  |   |   |   | 1,468 |   |
| Seismic                                        |   |                                             | 420    |   |   |   | 734 |   |
| Acquisitions,      field projects and other    |   |                                             | 35,554 |   |   |   | 1,774 |   |
| Pipeline      and gathering facilities         |   |                                             | 193    |   |   |   | 5,129 |   |
|                                           |   |                                             | 77,747 |   |   |   | 85,588 |   |
| Coal      and natural resources:               |   |                                             |   |   |   |   |   |   |
| Acquisitions                                   |   |                                             | 29     |   |   |   | 1,256 |   |
| Other      property and equipment expenditures |   |                                             | 3      |   |   |   | 44 |   |
|                                           |   |                                             | 32     |   |   |   | 1,300 |   |
| Natural      gas midstream:                    |   |                                             |   |   |   |   |   |   |
| Expansion      capital expenditures            |   |                                             | 7,400  |   |   |   | 11,200 |   |
| Other      property and equipment expenditures |   |                                             | 1,857  |   |   |   | 3,282 |   |
|                                           |   |                                             | 9,257  |   |   |   | 14,482 |   |
| Other                                          |   |                                             | 271    |   |   |   | 595 |   |
| Total      capital expenditures                |   | $                                                | 87,307 |   |   | $ | 101,965 |   |

----

|                                                          |   | Three Months Ended March 31, |   |
|---------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                          |   | 2010                                             |   |   | 2009 |   |
| Total      capital expenditures                               |   | $                                                | 87,307 |   |   | $ | 101,965 |   |
| Less:                                                         |   |                                             |   |   |   |   |   |   |
| Exploration      expenses                                     |   |                                             |   |   |   |   |   |   |
| Seismic                                                       |   |                                             | (420   | ) |   |   | (734 | ) |
| Other                                                         |   |                                             | (247   | ) |   |   | (322 | ) |
| Changes      in accrued capitalized costs                     |   |                                             | (6,320 | ) |   |   | 37,936 |   |
| Property      received as consideration in sale transaction 1 |   |                                             | (8,204 | ) |   |   | - |   |
| Add:                                                          |   |                                             |   |   |   |   |   |   |
| Capitalized      interest paid                                |   |                                             | 362    |   |   |   | 441 |   |
| Total      capital expenditure cash outflows                  |   | $                                                | 72,478 |   |   | $ | 139,286 |   |
|                                                          |   |                                             |   |   |   |   |   |   |
| Cash      paid for acquisitions                               |   | $                                                | 27,379 |   |   | $ | 3,073 |   |
| Cash      paid for additions to property and equipment        |   |                                             | 45,099 |   |   |   | 136,213 |   |
| Total      reflected in cash flows from investing activities  |   | $                                                | 72,478 |   |   | $ | 139,286 |   |

|                                    |   | As of     |      |
|-----------------------------------------|--------|----------------|-----------|
|                                    |   | March 31, |      |   | December 31, |   |
|                                    |   | 2010           |      |   | 2009 |   |
| Revolving      credit facility          |   | $              | -         |   |   | $ | - |   |
| Senior      notes, net of discount      |   |           | 292,067   |   |   |   | 291,749 |   |
| Convertible      notes, net of discount |   |           | 208,470   |   |   |   | 206,678 |   |
| PVR      revolving credit facility      |   |           | 618,100   |   |   |   | 620,100 |   |
|                                    |   | $              | 1,118,637 |   |   | $ | 1,118,527 |   |

----

----

|                       |   | Notional           |   |   |                          |                        |   |    |   |
|----------------------------|--------|--------------------|--------|--------|-------------------------------|-----------------------------|--------|---------|--------|
|                       |   | Amounts            |   |   | Swap Interest Rates |                        |
| Term                       |   | (in millions) |   |   | Pay                           |                        |   | Receive |   |
|                       |   |               |   |   |                          |                        |   |    |   |   |   |   |
| Through      December 2010 |   | $                  | 50.0   |   |                          |                        | 5.349  | %       |   | 3-month      LIBOR |   |
| Through      December 2010 |   | $                  | 50.0   |   |                          | 3-month      LIBOR          |   |    |   | 0.53 | % |
| Through      June 2013     |   | $                  | 100.0  |   |                          | 3-month      LIBOR + 8.175% |   |    |   | 10.375 | % |

|                               |   | Notional           |   |   |                                   |   |   |    |   |
|------------------------------------|--------|--------------------|--------|--------|----------------------------------------|--------|--------|---------|--------|
|                               |   | Amounts            |   |   | PVR Swap Interest Rates |   |
| Dates                              |   | (in millions) |   |   | Pay                                    |   |   | Receive |   |
|                               |   |               |   |   |                                   |   |   |    |   |   |   |   |
| March      2010 - December 2011    |   | $                  | 250.0  |   |                                   |   | 3.37   | %       |   | 3-month      LIBOR |   |
| December      2011 - December 2012 |   | $                  | 100.0  |   |                                   |   | 2.09   | %       |   | 3-month      LIBOR |   |

----

|                                                                           |   | Net Cash |    |
|--------------------------------------------------------------------------------|--------|---------------|---------|
| Asset Description                                                         |   | Realized      |    |
| 10      million common units of PVG                                            |   | $             | 177,000 |   |
| Oil      and gas properties including the Gulf Coast oil and gas assets      1 |   |          | 23,273  |   |
|                                                                           |   | $             | 200,273 |   |

----

|   | · | Total      debt to EBITDAX, each as defined in the Revolver, for any four consecutive      quarters may not exceed 4.0 to 1.0 reducing to 3.5 to 1.0 for periods      ending on or after September 30, 2011. Both total debt and EBITDAX      excludes those items of PVG and PVR as they are not guarantor subsidiaries      under the Revolver. EBITDAX, which is a non-GAAP (generally accepted      accounting principles) measure, generally means net income plus interest      expense, taxes, depreciation, depletion and amortization expenses,      exploration expenses, impairments, other non-cash charges or losses and      the amount of cash distributions received from PVG and  PVR. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      current ratio, as of the last day of any quarter, may not be less than 1.0      to 1.0. The current ratio is generally defined as current assets to      current liabilities. For purposes of this ratio, the Revolver essentially      excludes the current assets and current liabilities of PVG and PVR as they      are not guarantor subsidiaries. Current assets and current liabilities      attributable to derivative instruments are also excluded. In addition,      current assets include the amount of any unused commitment under the      Revolver. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Total      debt to consolidated EBITDA may not exceed 5.25 to 1.0. EBITDA, which is a      non-GAAP measure, is generally defined in the PVR Revolver as PVR’s net      income plus interest expense, net of interest income, depreciation,      depletion and amortization expenses, and non-cash hedging activity and      impairments. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Consolidated      EBITDA to interest expense may not be less than 2.5 to  1.0. |
|--------|--------|--------------------------------------------------------------------------------|

----

|                                                       |   |     |   |   | Actual  |   |
|------------------------------------------------------------|--------|----------|--------|--------|---------|--------|
| Description of Covenant                          |   | Covenant |   |   | Results |   |
| Penn      Virginia Corporation and guarantor subsidiaries: |   |     |   |   |    |   |
| Total      debt to EBITDAX                                 |   |     | 4.0    |   |    |   | 0.9 |   |
| Current      ratio                                         |   |     | 1.0    |   |    |   | 3.5 |   |
| PVR:                                                       |   |     |   |   |    |   |   |   |
| Debt      to EBITDA                                        |   |     | 5.25   |   |    |   | 3.28 |   |
| EBITDA      to interest expense                            |   |     | 2.50   |   |    |   | 7.62 |   |

----

|   | • | Price      Risk |
|--------|---------|-----------------|

|   | • | Interest      Rate Risk |
|--------|---------|-------------------------|

----

|                                                 |   |                      |   |   | Weighted Average Price |   |   |    |   |
|------------------------------------------------------|--------|---------------------------|--------|--------|----------------------------------|--------|--------|---------|--------|
|                                                 |   | AverageVolume PerDay |   |   | Floor                            |   |   | Ceiling |   |   | Fair ValueAsset(Liability) |   |
|                                            |   | (in MMBtu)           |   |   | (per MMBtu)                 |   |   |    |   |   |   |   |
| Natural Gas Costless Collars          |   |                      |   |   |                             |   |   |    |   |   |   |   |   |   |   |   |
| Second      Quarter 2010                             |   |                      | 30,000 |   |                             | $      | 5.33   |    |   | $ | 8.02 |   |   | $ | 3,947 |   |
| Third      Quarter 2010                              |   |                      | 30,000 |   |                             | $      | 5.33   |    |   | $ | 8.02 |   |   |   | 3,521 |   |
| Fourth      Quarter 2010                             |   |                      | 50,000 |   |                             | $      | 5.65   |    |   | $ | 8.77 |   |   |   | 5,469 |   |
| First      Quarter 2011                              |   |                      | 50,000 |   |                             | $      | 5.65   |    |   | $ | 8.77 |   |   |   | 3,609 |   |
| Second      Quarter 2011                             |   |                      | 30,000 |   |                             | $      | 5.67   |    |   | $ | 7.58 |   |   |   | 2,430 |   |
| Third      Quarter 2011                              |   |                      | 30,000 |   |                             | $      | 5.67   |    |   | $ | 7.58 |   |   |   | 2,208 |   |
| Fourth      Quarter 2011                             |   |                      | 20,000 |   |                             | $      | 6.00   |    |   | $ | 8.50 |   |   |   | 1,524 |   |
| First      Quarter 2012                              |   |                      | 20,000 |   |                             | $      | 6.00   |    |   | $ | 8.50 |   |   |   | 1,016 |   |
|                                            |   | (in      MMBtu)           |   |   | (per      MMBtu)                 |   |   |    |   |   |   |   |   |   |
| Natural      Gas Swaps                               |   |                      |   |   |                             |   |   |    |   |   |   |   |   |   |   |   |
| Second      Quarter 2010                             |   |                      | 30,000 |   |                             | $      | 6.17   |    |   |   |   |   |   |   | 6,187 |   |
| Third      Quarter 2010                              |   |                      | 30,000 |   |                             | $      | 6.17   |    |   |   |   |   |   |   | 5,522 |   |
|                                            |   | (barrels)                 |   |   | (per      barrel)                |   |   |    |   |   |   |   |   |   |
| Crude      Oil Costless Collars                      |   |                      |   |   |                             |   |   |    |   |   |   |   |   |   |   |   |
| Second      Quarter 2010                             |   |                      | 500    |   |                             | $      | 60.00  |    |   | $ | 74.75 |   |   |   | (459 | ) |
| Third      Quarter 2010                              |   |                      | 500    |   |                             | $      | 60.00  |    |   | $ | 74.75 |   |   |   | (562 | ) |
| Fourth      Quarter 2010                             |   |                      | 500    |   |                             | $      | 60.00  |    |   | $ | 74.75 |   |   |   | (617 | ) |
| Settlements      to be received in subsequent period |   |                      |   |   |                             |   |   |    |   |   |   |   |   |   | (101 | ) |

----

|                                                 |   |                      |   |   |                |   |   | Weighted Average Price |                |   |    |   |
|------------------------------------------------------|--------|---------------------------|--------|--------|---------------------|--------|--------|----------------------------------|---------------------|--------|---------|--------|
|                                                 |   | AverageVolume PerDay |   |   | Swap Price     |   |   | Floor                            |                |   | Ceiling |   |   | Fair ValueAsset(Liability) |   |
|                                            |   | (barrels)                 |   |   |                |   |   | ($ per barrel)         |                |   |    |   |
| Crude Oil Collar                           |   |                      |   |   |                |   |   |                             |                |   |    |   |   |   |   |   |   |   |   |
| Second      through Fourth Quarter 2010              |   |                      | 1,750  |   |                |   |   |                             | $                   | 68.86  |    |   | $ | 80.54 |   |   | $ | (3,309 | ) |
| First      through Fourth Quarter 2011               |   |                      | 400    |   |                |   |   |                             | $                   | 75.00  |    |   | $ | 98.50 |   |   |   | 35 |   |
|                                            |   | (MMBtu)                   |   |   | ($      per MMBtu)  |   |   |                             |                |   |    |   |   |   |   |   |   |
| Natural      Gas Purchase Swap                       |   |                      |   |   |                |   |   |                             |                |   |    |   |   |   |   |   |   |   |   |   |
| Second      through Fourth Quarter 2010              |   |                      | 7,100  |   |                | $      | 5.885  |                             |                |   |    |   |   |   |   |   |   |   | (3,133 | ) |
| First      through Fourth Quarter 2011               |   |                      | 6,500  |   |                | $      | 5.796  |                             |                |   |    |   |   |   |   |   |   |   | (1,043 | ) |
|                                            |   | (gallons)                 |   |   | ($      per gallon) |   |   |                             |                |   |    |   |   |   |   |   |   |
| Ethane      Swap                                     |   |                      |   |   |                |   |   |                             |                |   |    |   |   |   |   |   |   |   |   |   |
| Second      Quarter 2010                             |   |                      | 72,000 |   |                | $      | 0.735  |                             |                |   |    |   |   |   |   |   |   |   | 1,062 |   |
|                                            |   | (gallons)                 |   |   |                |   |   |                             | ($      per gallon) |   |    |   |   |   |
| NGL      - Natural Gasoline Collar                   |   |                      |   |   |                |   |   |                             |                |   |    |   |   |   |   |   |   |   |   |   |
| Third      through Fourth Quarter 2010               |   |                      | 42,000 |   |                |   |   |                             |                | $      | 1.55    |   |   | $ | 2.03 |   |   |   | (212 | ) |
| First      through Fourth Quarter 2011               |   |                      | 95,000 |   |                |   |   |                             |                | $      | 1.57    |   |   | $ | 1.94 |   |   |   | (2,025 | ) |
| Settlements      to be received in subsequent period |   |                      |   |   |                |   |   |                             |                |   |    |   |   |   |   |   |   |   | 171 |   |

----

----

| 2.1    |   | Purchase      and Sale Agreement dated as of December 31, 2009 by and between Penn      Virginia Oil & Gas, L.P. and Hilcorp Energy I, L.P. as amended by      Amendment and Supplement to Purchase and Sale Agreement dated January 29,      2010 (incorporated by reference to Exhibit 2.1 to Registrant’s Current      Report on Form 8-K filed on February 3, 2010). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 2.2    |   | Purchase      and Sale Agreement dated as of December 31, 2009 by and between Hilcorp      Energy I and Penn Virginia Oil and Gas Corporation dated January 29, 2010      (incorporated by reference to Exhibit 2.2 to Registrant’s Current Report      on Form 8-K filed on February 3, 2010).                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 10.1   |   | Amended      and Restated Change of Location Severance Agreement dated March 30, 2010      by and between Penn Virginia Corporation and Nancy M Snyder (incorporated      by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K      filed on March 31, 2010).                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 12.1   |   | Statement      of Computation of Ratio of Earnings to Fixed Charges      Calculation.                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 31.1   |   | Certification      Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted      Pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 31.2   |   | Certification      Pursuant to Exchange Act Rule 13a-14(a) or Rule 15d-14(a), as Adopted      Pursuant to Section 302 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 32.1   |   | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                               |
| 32.2   |   | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of2002.                                                                                                                                                                                                                                                   |

----

|                         | PENN      VIRGINIA CORPORATION |
|------------------------------|--------------------------------|
|                         |                           |   |
| Date:       May 7, 2010 | By:                            | /s/      Frank A. Pici  |
|                         |                           | Frank      A. Pici |
|                         |                           | Executive      Vice President and Chief Financial Officer |
|                         |                           |   |
| Date:       May 7, 2010 | By:                            | /s/      Forrest W. McNair  |
|                         |                           | Forrest      W. McNair |
|                         |                           | Vice      President andController |

----