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Penn Virginia Resource Partners L.P. Reports Operating Results (10-Q)

October 29, 2012 | About:
10qk

10qk

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Penn Virginia Resource Partners L.P. (PVR) filed Quarterly Report for the period ended 2012-09-30.

Pvr Partners Lp has a market cap of $2.27 billion; its shares were traded at around $25.77 with a P/E ratio of 42.25 and P/S ratio of 1.96. The dividend yield of Pvr Partners Lp stocks is 8.23%. Pvr Partners Lp had an annual average earning growth of 11.2% over the past 10 years.

Highlight of Business Operations:

Natural gas revenues decreased primarily due to lower prices and a migration to more fee based contracts. The average natural gas spot price decreased 35%, from $4.35 in the third quarter of 2011 compared to $2.81 in the comparable period of 2012. The decrease in natural gas revenues was partially offset by an increase in volumes on the Panhandle system. We also had a decrease in throughput volumes due to the sale of the Crossroads plant at the beginning of July. The Crossroads plant processed approximately 48 MMcfd in the third quarter of 2011.

NGL and condensate revenues decreased primarily due to the prices received. Our average realized price received for a hypothetical Conway NGL barrel in the third quarter of 2012 was $29.53 compared to $47.90 for the comparable period of 2011. NGL and condensate prices can fluctuate significantly based on market conditions in certain areas. In order to obtain favorable pricing, we sell our NGLs and condensate to several customers in multiple markets.

Natural gas revenues decreased primarily due to lower prices and a migration to more fee based contracts. The average natural gas spot price decreased 39%, from $4.27 in the first nine months of 2011 to $2.59 in the comparable period of 2012. The decrease in natural gas revenues was partially offset by an increase in volumes on the Panhandle system. Offsetting the total throughput volumes was the sale of the Crossroads plant at the beginning of July. The Crossroads plant processed approximately 54 MMcfd during the nine months ended September 30, 2011. The plant processed approximately 55 MMcfd through the first half of 2012 prior to being sold.

NGL and condensate revenues decreased primarily due to the prices received. Our average realized price received for a hypothetical Conway NGL barrel in the first nine months of 2012 was $33.64 compared to $48.64 for the comparable period of 2011. NGL and condensate prices have significant fluctuations based on market conditions in certain areas. In order to obtain favorable pricing, we sell our NGLs and condensate to several customers in multiple markets.

Coal royalties, which accounted for 85% of the Coal and Natural Resource Management segment revenues for the nine months ended September 30, 2012 and 86% for the same period in 2011, were lower in 2012 as compared to 2011. The decrease was a result of less coal being produced by our lessees and lower coal prices. The reduced demand for coal from our lessees customers was primarily due to domestic electrical generation switching from coal to natural gas and a mild winter. Coal royalties per ton decreased because customers cannot utilize all of the coal they have purchased. The surplus has caused lower demand, decreased production and reduced prices.

Read the The complete Report

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10qk
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