Penn Virginia Corporation (PVAC) Announces Operational Update

Penn Virginia Corporation (“Penn Virginia” or the “Company”) (NASDAQ: PVAC) today announced an operational update and timing of its third quarter 2020 earnings release and conference call.

Operational and Financial Update

• Estimated sales for the third quarter of 2020 of 18,383 barrels of oil per day, which is above the mid-point of the guidance range;
• Realized oil price for the third quarter of 2020 of approximately $48.28 per barrel including hedge settlements;
• Estimated capital expenditures for the third quarter of 2020 of $8.0 million, which is below the guidance range;
• Generated free cash flow (“FCF”)(1) for the third quarter of 2020, which allowed the Company to lower debt by approximately $35 million from the second quarter of 2020 (net debt(2) by $34 million after adjusting for cash and cash equivalents);
• Materially increased oil hedge positions in response to increased operational activity (see appendix);
• Completed five drilled but uncompleted (“DUC”) wells in the third quarter of 2020; and
• Restarted the drilling program with one rig in October 2020.

Darrin Henke, President and Chief Executive Officer of Penn Virginia commented, "We are incredibly proud of our operational and financial results for the quarter. Penn Virginia was free cash flow positive for the third quarter with our strong production profile and high realized pricing after considering realized hedge gains. This accomplishment marks the fourth consecutive quarter, which encompasses both higher and lower commodity price environments, that Penn Virginia has generated free cash flow.“

Mr. Henke continued, “Given our high-quality inventory and the current low service cost environment, we believed it was the appropriate time to restart our drilling program. We will monitor the commodity price environment to determine when to start the completion activity for the new wells. Given the uncertainty on completion timing, we currently do not forecast a material contribution to production until early next year. The Company will continue to remain focused on capital discipline, preservation of our strong balance sheet, and cash on cash returns.”

Third Quarter 2020 Earnings Release and Conference Call

Penn Virginia will release its third quarter 2020 results after the market closes on Thursday, November 5, 2020. A conference call and webcast discussing third quarter 2020 financial and operational results is scheduled for Friday, November 6, 2020 at 10:00 a.m. ET. Prepared remarks will be followed by a question and answer period. Investors and analysts may participate via phone by dialing (844) 707-6931 (international: (412) 317-9248) five to 10 minutes before the scheduled start time, or via webcast by logging on to the Company’s website, www.pennvirginia.com, at least 15 minutes before the scheduled start time to download supporting materials and install audio software, as necessary. The webcast can also be accessed at https://services.choruscall.com/links/pvc201106.html.

An on-demand replay of the webcast will be available on the Company’s website beginning shortly after the webcast. The replay will also be available from November 6, 2020 through November 13, 2020 by dialing (877) 344-7529 (international (412) 317-0088) and entering the passcode 10149126.

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