Penn Virginia Resource has added a news release to its Investor Relations website.

RADNOR, Pa., July 27, 2011 /PRNewswire via COMTEX/ --

Penn Virginia Resource Partners, L.P. (NYSE: PVR) ("PVR") today reported financial and operational results for the three months ended June 30, 2011. In addition, PVR announced a 2.1% increase in the quarterly cash distribution and increased its guidance for the full year 2011.

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Second Quarter Results

Second quarter 2011 highlights and results, with comparisons to second quarter 2010 results, included the following:

• Record quarterly EBITDA of $64.8 million as compared to $42.0 million.
  
• Distributable cash flow ("DCF"), after a $6.7 million provision for replacement capital expenditures, increased by $5.0 million to $34.1 million as compared to $29.1 million. The 2011 DCF reflects PVR's efforts, which began in the fourth quarter of 2010, to be transparent in recognizing the ongoing reserve replacement capital requirements of the business. There was no corresponding recognition of reserve replacement capital requirements for the second quarter 2010 DCF.
  
• Adjusted net income of $23.0 million as compared to $13.1 million.
  

EBITDA, distributable cash flow, and adjusted net income are all non-GAAP measures. Reconciliations of these non-GAAP measures to GAAP reporting measures appear in the financial tables which follow.

For the second quarter of 2011, derivatives income was $4.8 million, as compared to $7.1 million in the prior year quarter. Cash settlements of derivatives included in these amounts resulted in net cash payments of $7.9 million during the second quarter of 2011 related to commodity and interest rate derivatives, as compared to $2.4 million of net cash payments in the prior year quarter.

Cash Distribution

The Board of Directors of Penn Virginia Resource GP, LLC, the general partner of PVR, declared a quarterly cash distribution of $0.49 per unit payable on August 12, 2011 to unitholders of record as of August 8, 2011. The distribution equates to an annualized rate of $1.96 per unit, and represents a 2.1% increase over the prior quarter and a 4.3% increase over the second quarter of 2010.

Management Comment

"We are pleased to report another quarter of excellent results and strategic progress," said Bill Shea, CEO of PVR's general partner. "In June we acquired the Antelope Hills processing plant and related midstream assets, as well as the Oatesville Reserve coal assets in the Illinois Basin. Also during the quarter we started construction of the second phase of our Lycoming gathering system in the Marcellus Shale. Each of these strategic assets is expected to contribute to the continuing growth of PVR Partners.

"Based on our successful expansions through both internal growth projects and acquisitions, and our business expectations for the balance of this year, we are pleased to announce another increase in our quarterly cash distribution, as well as an increase to our financial guidance for this year," said Mr. Shea.

Coal and Natural Resource Management Segment

The coal and natural resource management segment reported second quarter 2011 results, with comparisons to second quarter 2010 results, as follows:

• Coal royalty tons of 10.1 million tons, as compared to 8.9 million tons.
  
• Coal royalties revenue of $44.6 million, or $4.40 per ton, as compared to $34.9 million, or $3.93 per ton.
  

During the second quarter of 2011, operating income for the coal and natural resource management segment increased by $8.4 million, or 34 percent, to $33.2 million from $24.8 million in the prior year quarter. Total revenues increased by $10.9 million, or 27 percent, to $51.5 million from $40.6 million in the prior year quarter primarily due to increased production and higher average coal royalties. The Middle Fork assets acquired in January 2011 contributed $2.8 million in coal royalties and 0.5 million tons of coal production to these increases.

Natural Gas Midstream Segment

The natural gas midstream segment reported second quarter 2011 results, with comparisons to second quarter 2010 results, as follows:

• Quarterly natural gas midstream system average throughput volumes of 460 million cubic feet ("MMcf") per day, as compared to 320 MMcf per day. The volume growth came primarily from new business on our Panhandle systems which increased to 314 MMcf per day as compared to 202 MMcf per day, and in the Marcellus Shale regions which increased to 38 MMcf per day as compared with 2 MMcf per day.
  
• Midstream gross margin of $37.6 million as compared to $24.9 million.
  
• Midstream gross margin, including the cash impact of midstream derivatives, of $31.7 million, as compared to $24.5 million. The $7.2 million increase was primarily due to a 44% increase in volumes, partially offset by a relative increase in lower-risk, lower margin, percent-of-proceeds and fee-based contracts.
  

Capital Investment and Resources

PVR spent approximately $38.9 million on internal growth projects during the second quarter of 2011, including $20.1 million in the Marcellus Shale. In addition, PVR closed on approximately $14.6 million in acquisitions in the coal and natural resource segment and $12.2 million in acquisitions in the midstream natural gas segment during the quarter. PVR anticipates investing a total in the range of $180 - $200 million in internal growth capital during 2011, including approximately $120 - $130 million in the Marcellus Shale.

As of June 30, 2011, PVR had borrowings of $580.0 million under its $1.0 billion revolving credit facility and $10.6 million of cash and cash equivalents, with remaining borrowing capacity of $418.4 million under the revolving credit facility.

Financial Guidance for 2011

PVR also updated its financial guidance for 2011. Based on the strong operating performance during the first half of 2011 and current outlook for the remainder of the year, PVR now anticipates full year 2011 EBITDA in the range of $240 million to $260 million and full year 2011 distributable cash flow (net of maintenance and replacement capital) in the range of $145 million to $160 million. EBITDA and distributable cash flow are non-GAAP measures; reconciliations of these non-GAAP measures to GAAP reporting measures appear in the financial tables which follow. These estimates, including capital expenditure plans, are meant to provide guidance only and are subject to revision as our operating environment changes. The guidance for 2011 is based on numerous assumptions about future events and conditions and, therefore, could vary materially from actual results.

Merger Impact and Units Outstanding

The reported financial results include the impact of the merger with Penn Virginia GP Holdings, L.P., ("PVG") completed on March 10, 2011. Because PVR's equity-funded merger with PVG has been treated as a reverse merger for accounting purposes, the historical results reported for periods prior to the completion of the merger are those of PVG. As a result, the diluted weighted average number of LP units outstanding increased from 38.3 million in the second quarter of 2010 to 71.2 million in the second quarter of 2011.

Second Quarter 2011 Financial and Operational Results Conference Call

A conference call and webcast during which management will discuss second quarter 2011 financial and operational results, is scheduled for Thursday, July 28, 2011 at 11:00 a.m. ET. Prepared remarks by William H. Shea, Jr., Chief Executive Officer, will be followed by a question and answer period. Interested parties may participate via phone by dialing 800-860-2442 (international 412-858-4600) five to ten minutes before the scheduled start of the conference call (reference the Penn Virginia Resource Partners call), or listen via webcast by logging on to our website, www.pvrpartners.com at least 15 minutes prior to the scheduled start of the call to download and install any necessary audio software. An on-demand replay of the conference call will be available shortly after the conclusion of the call. A telephonic replay of the call will be available through August 4 by dialing 877-344-7529 (international: 412-317-0088) and using conference playback number 10002022.

Appointment of Board Chairman

Separately, the Board of Directors of Penn Virginia Resource GP, LLC, the general partner of PVR, announced that it has elected Edward B. Cloues, II to fill the previously vacant position of Chairman of the Board. Mr. Cloues, 63, has served as a Director of Penn Virginia GP, LLC since January 2003. From 1998 until its sale in April 2010, Mr. Clouse was the Chairman and Chief Executive Officer of K-Tron International, Inc., a publicly-listed global provider of material handling equipment and systems.

Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership which owns and manages coal and natural resource properties and related assets, and owns and operates midstream natural gas gathering and processing businesses. We own approximately 900 million tons of proven coal reserves in Northern and Central Appalachia, and the Illinois and San Juan Basins; our midstream natural gas assets are located principally in Texas, Oklahoma and Pennsylvania and include more than 4,200 miles of natural gas gathering pipelines and 7 processing systems with approximately 420 million cubic feet per day of capacity. For more information about PVR, visit our website at www.pvrpartners.com.

This press release includes "forward-looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Partnership's ability to control or predict, which could cause results to differ materially from those expected by management. Such risks and uncertainties include, but are not limited to, regulatory, economic and market conditions, the timing and success of business development efforts and other uncertainties. Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2010 and most recently filed Quarterly Reports on Form 10-Q. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.