(Source: Business Wire)
Penn Virginia GP Holdings, L.P. (NYSE: PVG) today reported financial
results for the three months ended September 30, 2009.
Distributable cash, a non-GAAP (generally accepted accounting
principles) measure, was $14.8million for the three months ended
September 30, 2009, the same as the $14.8 million in the prior year
quarter. Adjusted net income, a non-GAAP measure that excludes the
effects of the non-cash change in derivatives fair value, was
$11.4million, or $0.29 per limited partner unit, as compared to
$5.8million, or $0.15 per limited partner unit, in the prior year
quarter. Net income was $10.2 million, or $0.26 per limited partner
unit, as compared to $20.3million, or $0.52 per limited partner unit,
in the prior year quarter.
Reconciliations of distributable cash and adjusted net income to
GAAP-based measures appear in the financial tables later in this release.
As previously announced, on November 18, 2009, we will pay to
unitholders of record as of November 6, 2009 a quarterly cash
distribution of $0.38 per unit, or an annualized rate of $1.52 per unit,
covering the period of July 1 through September 30, 2009. The
distribution remains unchanged from the distribution paid with respect
to each of the previous four quarters.
We own the general partner, including the incentive distribution rights,
and are the largest limited partner unitholder of Penn Virginia Resource
Partners, L.P. (NYSE: PVR), and we report our financial results on a
consolidated basis with the financial results of PVR. We currently have
no separate operating activities other than those conducted by PVR and
derive our cash flow solely from cash distributions received from PVR.
Financial and operational updates, as well as full-year 2009 guidance
for PVR and its coal and natural resource management and natural gas
midstream segments, are discussed in more detail in PVR's news release
dated November 4, 2009 (please visit PVR's website, www.pvresource.com,
under "For Investors" for a copy of the release).
Guidance for 2009
See the Guidance Table included in PVR's November 4, 2009 release for
guidance estimates for full-year 2009.
Conference Call
A joint conference call and webcast, during which management will
discuss third quarter 2009 financial and operational results for PVG and
PVR, is scheduled for Thursday, November 5, 2009 at 1:00p.m. ET.
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 1-866-630-9986 five to ten minutes
before the scheduled start of the conference call and using the passcode
3241667, or via webcast by logging on to our website at www.pvgpholdings.com
at least 20 minutes prior to the scheduled start of the call to download
and install any necessary audio software. A telephonic replay will be
available approximately two hours after the call for two weeks by
dialing toll free 888-203-1112 (international: 719-457-0820) and using
the replay code 3241667. In addition, an on-demand replay of the webcast
will also be available for two weeks at PVG's or PVR's websites
beginning 24 hours after the webcast.
Headquartered in Radnor, PA, Penn Virginia GP Holdings, L.P. (NYSE:
PVG) is a publicly traded limited partnership which owns the general
partner interest, all of the incentive distribution rights and an
approximate 37percent limited partner interest in PVR, a manager of
coal and natural resource properties and related assets and the operator
of a midstream natural gas gathering and processing business.
For more information about us, please visit our website at www.pvgpholdings.com.
For more information about PVR, please visit its website at www.pvresource.com.
Certain statements contained herein and incorporated herein by reference
to the PVR news release dated November 4, 2009 that are not descriptions
of historical facts are "forward-looking" statements by PVR 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
are discussed in more detail in PVR's news release dated November 4,
2009 and 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, 2008. Many of the factors that will
determine PVR's and, therefore, our 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. We undertake no obligation to revise
or update any forward-looking statements, or to make any other
forward-looking statements, whether as the result of new information,
future events or otherwise.
PENN VIRGINIA GP HOLDINGS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - unaudited
(dollars in thousands, except per unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues
Natural gas midstream $ 118,443 $ 241,282 $ 348,882 $ 601,127
Coal royalties 29,821 33,308 90,448 88,911
Coal services 1,869 1,815 5,502 5,518
Other 5,492 8,871 16,971 23,039
Total revenues 155,625 285,276 461,803 718,595
Expenses
Cost of midstream gas purchased 92,355 211,262 285,129 513,778
Coal royalties expense 1,587 2,125 4,380 8,034
Operating 7,443 6,916 22,558 16,519
Taxes other than income 1,005 969 3,208 3,017
General and administrative 8,447 7,618 25,399 22,057
Depreciation, depletion and amortization 17,851 16,903 51,971 41,322
Total expenses 128,688 245,793 392,645 604,727
Operating income 26,937 39,483 69,158 113,868
Other income (expense)
Interest expense (6,505 ) (7,060 ) (18,486 ) (17,366 )
Interest income and other 344 (4,118 ) 1,020 (3,072 )
Derivatives (2,810 ) 15,742 (12,005 ) (6,424 )
Net income 17,966 44,047 39,687 87,006
Net income attributable to noncontrolling interests (7,794 ) (23,783 ) (14,327 ) (43,878 )
Net income attributable to Penn Virginia GP Holdings, L.P. $ 10,172 $ 20,264 $ 25,360 $ 43,128
Net income per limited partner unit, basic and diluted $ 0.26 $ 0.52 $ 0.65 $ 1.10
Weighted average number of units outstanding, basic and diluted (in thousands) 39,075 39,075 39,075 39,075
Other data:
Coal and natural resource management segment:
Coal royalty tons (in thousands) 8,387 8,496 25,874 24,975
Average coal royalties ($ per ton) $ 3.56 $ 3.92 $ 3.50 $ 3.56
Average net coal royalties ($ per ton) - (a) $ 3.37 $ 3.67 $ 3.33 $ 3.24
Natural gas midstream segment:
System throughput volumes (MMcf) 29,811 27,744 93,433 68,915
Gross margin (in thousands) $ 26,088 $ 30,020 $ 63,753 $ 87,349
(a) - The average net coal royalties per ton deducts coal royalties expense, which is incurred primarily in Central Appalachia.
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PENN VIRGINIA GP HOLDINGS, L.P.