Penn Virginia GP Holdings, L.P. Announces 2006 Results and 2007 Guidance.

RADNOR, Pa. -- Penn Virginia GP Holdings, L.P. (NYSE:PVG) today reported distributable cash of $2.7 million and net income of $10.3 million for the three months ended December 31, 2006. Full-year 2006 net income was $32.0 million, compared with net income of $20.8 million for the full-year 2005. A reconciliation of distributable cash, a non-GAAP financial measure, appears in the financial tables later in this release.

As previously announced, PVG today paid to unitholders of record as of February 5, 2007 a quarterly cash distribution in the amount of $0.07 per unit, or an annualized rate of $0.96 per unit, covering the period December 5, when PVG units began trading, through December 31, 2006. This distribution represents a $0.02 per unit increase over the $0.94 per unit annualized distribution contemplated in connection with PVG's initial public offering.

PVG owns the general partner, including the incentive distribution rights, and is the largest unitholder of Penn Virginia Resource Partners, L.P. (NYSE:PVR) and reports its financial results on a consolidated basis with the financial results of PVR. PVG currently has no separate operating activities apart from those conducted by PVR, and its cash flow is derived solely from cash distributions received from PVR.

Management Comment

A. James Dearlove, Chief Executive Officer of PVR, said, "We are pleased to present our inaugural report of results for PVG. PVR's operations, which generate our cash flows, produced record results during 2006 which allowed for distribution increases during 2006 to PVR unitholders and provided the impetus for the increase in the initial distribution by PVG over the levels contemplated in connection with its initial public offering. We remain focused on continuing to grow cash distributions during 2007 and beyond."

Coal Segment Review (Penn Virginia Resource Partners, L.P. - NYSE:PVR)

Full-year 2006 operating income in PVR's coal segment was a record $73.4 million, or 19 percent higher than the $61.7 million reported in 2005. Revenues increased in 2006, as compared to 2005, mainly as the result of acquisitions, increased coal production by PVR's lessees and higher coal prices. The revenue increase was offset primarily by increased depreciation, depletion and amortization (DD&A) expense and by smaller increases in operating and general and administrative expenses, as a result of acquisitions and increased lessee production.

Fourth quarter 2006 operating income in PVR's coal segment was $18.3 million, or 11 percent higher than the $16.5 million reported for the prior year. Revenues increased in the fourth quarter of 2006, as compared to the prior year, mainly as the result of acquisitions, increased coal production by PVR's lessees and higher coal prices, offset in part by increased operating expense and DD&A expense.

Natural Gas Midstream Segment Review (Penn Virginia Resource Partners, L.P. - NYSE:PVR)

Full-year 2006 operating income in PVR's natural gas midstream segment was $29.4 million, or 80 percent higher than the $16.3 million for the ten month results reported in 2005. The gross midstream processing margin, represented by natural gas midstream revenues less cost of cash purchased, increased in 2006, as compared to 2005, mainly as a result of a full year of results in 2006 as compared to ten months of results in 2005, increased average daily processing plant inlet volumes and an improved spread between natural gas liquids (NGLs) prices and natural gas prices. Other expenses increased in 2006, as compared to 2005, due to a full year of results in 2006 as compared to ten months of results in 2005 and increased plant inlet volumes.

Fourth quarter 2006 operating income in PVR's natural gas midstream segment was $7.1 million, or 65 percent higher than the $4.3 million in the prior year. The gross midstream processing margin increased in the fourth quarter of 2006, as compared to the prior year, mainly as a result of increased plant inlet volumes, partially offset by declining spread between NGL prices and natural gas prices due to lower prices in the crude oil markets at the end of 2006. Other expenses increased in the fourth quarter of 2006, as compared to the prior year, primarily due to increased inlet volumes.

Impact of Derivatives

In order to manage exposure to the acquisition economics as well as future cash flows in PVR's natural gas midstream segment acquired in March 2005, PVR periodically enters into commodity price hedging arrangements with financial counterparties, covering a portion of its expected production. During the full-year and the fourth quarter of 2006, gains (losses) on derivatives changed from a loss of $14.0 million in 2005 to a loss of $11.3 million in 2006 and from a loss of $2.8 million in the fourth quarter of 2005 to a gain of $0.4 million in the fourth quarter of 2006. See the Guidance Table included in this release for detail of PVR's derivative positions as of December 31, 2006.

Guidance for 2007

See the Guidance Table included in this release for PVG guidance estimates for 2007. These estimates, including planned capital expenditures, which exclude potential acquisitions, are meant to provide guidance only and are subject to revision as the operating environment of PVG and PVR changes.

Conference Call

A joint conference call and webcast, at which management will discuss fourth quarter 2006 results and the outlook for 2007 for PVG and PVR, is scheduled for Thursday, February 15, 2007, at 1:00 p.m. EST . Prepared remarks by A. James Dearlove, Chief Executive Officer, will be followed by a question and answer period. Investors and analysts may participate via phone by dialing 1-877-407-9205 five to ten minutes before the scheduled start of the conference call, or via Internet webcast by logging on to PVR's website at www.pvresource.com at least 20 minutes prior to the scheduled start of the call to download and install any necessary audio software. A telephone replay of the call will be available until March 1 at 11:59 p.m. ET by dialing 1- 877-660-6853 and using replay passcodes: conference ID #228276, password #286. An on-demand replay of the conference call will be available at the Company's website for 14 days beginning shortly after the call.

Headquartered in Radnor, PA, Penn Virginia GP Holdings, L.P. (NYSE:PVG) is the owner of the general partner and the largest unitholder of Penn Virginia Resource Partners, L.P. (NYSE:PVR), a manger of coal properties and related assets and the operator of a midstream natural gas gathering and processing business.

Headquartered in Radnor, PA, Penn Virginia Resource Partners, L.P. (NYSE:PVR) is a master limited partnership formed by Penn Virginia Corporation (NYSE:PVA). The Partnership manages coal properties and related assets and operates a midstream natural gas gathering and processing business.

For more information about PVG and PVR, please visit PVR's website at www.pvresource.com.

Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: PVR's ability to generate sufficient cash from its midstream and coal businesses to pay the minimum quarterly distribution to PVG and its other unitholders; energy prices generally and specifically, the price of natural gas and the price of NGLs; the relationship between natural gas and NGL prices; the price of coal and its comparison to the price of natural gas and oil; the volatility of commodity prices for coal, natural gas and NGLs; the projected demand for coal, natural gas and NGLs; the projected supply of coal, natural gas and NGLs; PVR's ability to successfully manage its relatively new natural gas midstream business; PVR's ability to acquire new coal reserves or midstream assets on satisfactory terms and to integrate effectively these new operations; the price for which coal reserves can be acquired; PVR's ability to continually find and contract for new sources of natural gas supply; PVR's ability to retain existing or acquire new midstream customers; PVR's ability to lease new and existing coal reserves; the ability of PVR's lessees to produce sufficient quantities of coal on an economic basis from PVR's reserves; the ability of PVR's lessees to obtain favorable contracts for coal produced from PVR's reserves; competition among producers in the coal industry generally and among natural gas midstream companies; PVR's exposure to the credit risk of its coal lessees and midstream customers; the extent to which the amount and quality of PVR's actual production differ from its estimated recoverable proved coal reserves; hazards or operating risks incidental to midstream operations; unanticipated geological problems; the dependence of PVR's midstream business on having connections to third party pipelines; the availability of required materials and equipment; the occurrence of unusual weather or operating conditions including force majeure events; the failure of PVR's infrastructure and its lessees' mining equipment or processes to operate in accordance with specifications or expectations; delays in anticipated start-up dates of PVR's lessees' mining operations and related coal infrastructure projects; environmental risks affecting the mining of coal reserves and the production, gathering and processing of natural gas; the timing of receipt of necessary governmental permits by PVR's lessees; the risks associated with having or not having price risk management programs; labor relations and costs; 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 and interest rates) and political conditions (including the impact of potential terrorist attacks); the experience and financial condition of PVR's lessees, including their ability to satisfy their royalty, environmental, reclamation and other obligations to PVR and others; PVR's ability to expand its midstream business by constructing new gathering systems, pipelines and processing facilities on an economic basis and in a timely manner; coal handling joint venture operations; and changes in financial market conditions.

Additional information concerning these and other factors can be found in PVG's press releases and public periodic filings with the Securities and Exchange Commission. Many of the factors that will determine PVR's and, therefore, PVG's future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. PVG undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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