As you research various investment alternatives, we invite you to review these key investment criteria as you consider the opportunities at Penn Virginia Resource Partners:

Assets	Diversified – PVR offers both segment and geographic diversity for investors seeking opportunities in the energy business. Our coal and natural resource operations and our natural gas midstream business are distinct but fundamentally complimentary in nature. Both of these business segments have significant portfolios of cash generating assets situated in multiple supply basins throughout the US. Strategically Located – PVR's coal reserves are located in four different major supply basins, are in close proximity to power generation facilities, and have access to major coal-hauling railroads and/or inland waterways. Our midstream operations are well positioned to benefit from increased drilling activity in emerging natural gas resource plays in the Marcellus, Granite Wash, Haynesville and Cotton Valley areas. High Quality – Our reserves of high quality coal are under long-term leases to experienced operators. PVR's midstream assets are located in attractive natural gas basins with long-lived reserves.
Structure	Tax Efficient – PVR's master limited partnership organizational (MLP) structure is tax efficient with only a single layer of taxation between the income producing assets and equity owners. Our organization as a partnership avoids the double taxation of corporate earnings and dividends paid; this allows us to distribute to investors a higher percentage of the cash generated by the business, as compared to a typical corporate structure. Simple – PVR streamlined its structure with the March 2011 acquisition of its general partner. The resulting restructuring eliminated the general partner's incentive distribution rights ("IDRs") and economic interests in PVR. Unitholders receive the full benefit of any future growth in cash distributions without the burden of IDRs or "high GP splits". Progressive Governance – Some MLPs give extremely limited governance right to their limited partner investors. At PVR, we hold annual unitholder meetings, and our limited partner investors elect all the directors serving on the Board. Our unitholders also have the right to vote on other significant organizational governance items.
Management	Experienced – In 2010, PVR became fully separated from Penn Virginia Corporation (NYSE PVA), the original sponsor and manager of the partnership. PVA sold its remaining PVR interests in early 2010 and the PVR Board recruited a new senior leadership team. Our CEO, CFO and General Counsel are experienced senior executives, each bringing successful records from other energy MLPs. Proven Track Records – Our senior leadership team includes the co-presidents of both our coal and midstream business segments, who are both highly-experienced PVR veterans and have continued to provide strong operational leadership before, during, and after our transition from PVA. Focused – Prior to the separation, PVA executives managed PVR's business along with their PVA responsibilities. Our new, independent executive team assumed responsibilities for both PVR and Penn Virginia GP Holdings (NYSE: PVG), the former owner of our general partner. Following the recently completed merger with PVG, PVR enjoys the full attention and focused energies of senior management.
Finances	Steady Performance – PVR does not operate mines and does not have direct exposure to mine operating costs, risk or reclamation expense; our coal and natural resource operations are characterized by high operating margins and stable cash flows. PVR's natural gas midstream business has an established record of managed growth, with throughput volumes that have increased annually at an average compound rate of over 20%. Solid Balance Sheet and Distribution Coverage – Our balance sheet is transparent and easy to understand, with one class of equity (our publicly traded units) and conservative amounts of debt. PVR has a target distribution coverage of 1.05x after deducting for a capital reserve to replace depleting assets. Hedged commodity risk – PVR has focused on managing and reducing commodity price risk typical in midstream operations by: 1) expanding fee-based business, 2) converting or reducing commodity price exposure in existing contracts, and 3) hedging remaining commodity price sensitive volumes.
Outlook	Stable base business— PVR generates stable coal royalties revenue from steady coal production under the long-term leases of our reserves to operators and, in-turn, their multi-year contract pricing with their coal-using customers. Coal remains the dominant and cheapest energy source for power generation in the US, and global demand for coal continues to grow. Visible organic growth – Our natural gas pipeline projects in the Marcellus Shale are expected to propel material growth of our midstream business for the next several years. PVR completed construction and commenced operation of the first phase of our 30 inch diameter, 850 MMcfd capacity system in Lycoming County, PA in February, and we anticipate investing a total of $120 million during 2011 as we proceed with the next phases of expansion and extension of our Marcellus systems. Acquisition opportunities – PVR acquired 102 million tons of high-quality coal reserves and resources for our natural resource management asset portfolio in January. We continually evaluate strategic natural resource and midstream acquisition opportunities that will provide for increases in sustainable distributable cash flow at attractive rates of return for unitholders.