View this Presentation - Penn Virginia Corporation

Hedging Strategy
Protect Cash Flow
• Maintain an active hedging program to help support capital spending program and ensure strong
coverage metrics
• Hedges in place to protect cash flow
• Natural gas hedging is currently 68% of expected 2013 total volumes at an average floor price of $3.77 / Mcf
• Oil hedging is currently 69% of expected 2013 total volumes at an average floor price of $96.67 / barrel
– 35% hedged for 2014 (stand‐alone) of total volumes at $94.87 / barrel
• Upon closing the acquisition we will enter into additional hedges and expect the overall percent
of production hedged to closely resemble our current levels
Crude Oil Hedges (Swaps and Collars) (1)
Natural Gas Hedges (Swaps and Collars) (1)
Barrels per Day
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
$102
$98
$101
$97
$99 $99
$96 $96
Weighted Average Ceiling /
Swap Price by Quarter
$95
$95
Weighted Average Floor /
Swap Price by Quarter
$94 $94
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
$110
$105
$100
$95
$90
$85
$80
$75
Weighted Avg. Floors and Swaps ($/Bbl)
MMBtu per Day (000s)
30
25
20
15
10
5
0
Weighted Average Ceiling /
Swap Price by Quarter
$4.16 $4.07 $4.07
$3.76 $3.75 $3.75 $3.82
$4.24 $4.27
$4.02
$4.03 $4.03
Weighted Average Floor /
Swap Price by Quarter
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
$6
$5
$4
$3
$2
$1
$0
Weighted Avg. Floors and Swaps ($/MMBtu)
(1) As of 3/25/13.
22