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Penn Virginia Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 6, 2010 06:20AM
Penn Virginia Corp. (PVA) filed Quarterly Report for the period ended 2010-06-30.
Highlight of Business Operations:
Prior to June 2010, we indirectly owned partner interests in Penn Virginia Resource Partners, L.P., or PVR, which is engaged in the coal and natural gas resource management and natural gas midstream businesses. Our ownership interests in PVR were held primarily through our general and limited partner interests in PVG. In June 2010, we completed the sale of our remaining limited partner interests in PVG in a secondary public offering for proceeds of approximately $139 million, net of offering costs. In a related transaction, we disposed of our subsidiary that held the sole non-economic general partner interest in PVG and thereby relinquished control of PVG. As a result of these transactions, we recognized a gain of $49.6 million, net of taxes, during the three months ended June 30, 2010 and have deconsolidated PVG from our Condensed Consolidated Financial Statements. The results of operations attributable to PVG through the date of these transactions and prior periods have been presented as discontinued operations in our Condensed Consolidated Financial Statements. Since September 2009, we sold approximately 30.1 million common units representing 77% of the ownership of PVG, raising approximately $450 million in net pre-tax proceeds. Additional information is provided in the Liquidity and Capital Resources discussion that follows.
In November 2009, we implemented an organization restructuring that resulted in the transfer of certain corporate and oil and gas accounting and administrative functions from our Kingsport, Tennessee office location to our Houston, Texas and Radnor, Pennsylvania locations. In addition, the restructuring resulted in the relocation of our eastern region oil and gas divisional office from Kingsport to our new office in Pittsburgh, Pennsylvania. Approximately 30 employees were terminated in connection with the restructuring, which was substantially completed during the second quarter of 2010. In 2010, we incurred approximately $2.1 million in costs including termination benefits, relocation costs and other incremental costs associated with expanding our other office locations. In addition, we incurred a lease termination charge of $3.5 million in connection with the assignment of a lease for our former Kingsport, Tennessee office facility to PVR.
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