Acquisitions and Divestitures	6 Months Ended
Jun. 30, 2011
Acquisitions and Divestitures	3. Acquisitions and Divestitures Property Acquisitions Eagle Ford Property Acquisitions During 2011, we acquired approximately 6,500 net Eagle Ford Shale acres in Gonzales County, Texas for approximately $24 million. The acreage acquired in these transactions is in close proximity to the Eagle Ford Shale acreage that we acquired during 2010. We are the operator of the acquired acreage with an average working interest of approximately 86%. Divestitures PVG Unit Offering In March and April 2010, we sold 11.25 million common units of Penn Virginia GP Holdings, L.P. (“PVG”) for proceeds of $199.1 million, net of offering costs. At the time, the transaction reduced our limited partner interest in PVG to 22.6% and resulted in a $70.2 million increase to noncontrolling interests and a $82.1 million increase to additional paid-in capital, net of income tax effects. Because we maintained a controlling financial interest in PVG, the proceeds received from these transactions were reported as cash flows from financing activities on our Condensed Consolidated Statements of Cash Flows. In June 2010, we completed the sale of our remaining PVG common units for $139.1 million, net of offering costs. Immediately prior to the closing of the June offering, we contributed 100% of the membership interests in PVG’s general partner to PVG, thereby relinquishing control of PVG. As a result of this divestiture, we recognized a gain of $49.6 million, net of income tax effects of $35.1 million, which is reported in the “Gain on sale of discontinued operations, net of tax” caption on our Condensed Consolidated Statements of Income. Because we no longer held any interests in PVG, the proceeds received from this transaction were reported as cash flows from investing activities on our Condensed Consolidated Statements of Cash Flows, and we deconsolidated PVG from our Consolidated Financial Statements. The results of operations and cash flows attributable to PVG for the 2010 period are presented in these Condensed Consolidated Financial Statements and Notes as discontinued operations. Oil and Gas Properties In July 2011, we executed an agreement to sell substantially all of our Arkoma Basin assets for approximately $30 million, excluding transaction costs and subject to customary purchase and sale adjustments. The transaction will be effective July 1, 2011 and we anticipate that it will close during the third quarter of 2011. The properties to be sold include approximately 73,000 net acres and proved reserves of approximately 42.5 billion cubic feet of natural gas equivalent. The carrying value of these properties as of June 30, 2011 was approximately $101 million. During the quarter ended June 30, 2011, we recognized an impairment of approximately $71 million with respect to these assets. In January 2010, we completed the sale of all of our oil and gas properties in the Gulf Coast region (southern Texas and Louisiana) for cash proceeds of $23.2 million, net of transaction costs and certain purchase and sale adjustments, and the exchange of certain oil and gas properties located in the Gwinville field in northern Mississippi valued at $8.2 million.

3. Acquisitions and Divestitures

Property Acquisitions

Eagle Ford Property Acquisitions

During 2011, we acquired approximately 6,500 net Eagle Ford Shale acres in Gonzales County, Texas for approximately $24 million. The acreage acquired in these transactions is in close proximity to the Eagle Ford Shale acreage that we acquired during 2010. We are the operator of the acquired acreage with an average working interest of approximately 86%.

Divestitures

PVG Unit Offering

In March and April 2010, we sold 11.25 million common units of Penn Virginia GP Holdings, L.P. (“PVG”) for proceeds of $199.1 million, net of offering costs. At the time, the transaction reduced our limited partner interest in PVG to 22.6% and resulted in a $70.2 million increase to noncontrolling interests and a $82.1 million increase to additional paid-in capital, net of income tax effects. Because we maintained a controlling financial interest in PVG, the proceeds received from these transactions were reported as cash flows from financing activities on our Condensed Consolidated Statements of Cash Flows.

In June 2010, we completed the sale of our remaining PVG common units for $139.1 million, net of offering costs. Immediately prior to the closing of the June offering, we contributed 100% of the membership interests in PVG’s general partner to PVG, thereby relinquishing control of PVG. As a result of this divestiture, we recognized a gain of $49.6 million, net of income tax effects of $35.1 million, which is reported in the “Gain on sale of discontinued operations, net of tax” caption on our Condensed Consolidated Statements of Income. Because we no longer held any interests in PVG, the proceeds received from this transaction were reported as cash flows from investing activities on our Condensed Consolidated Statements of Cash Flows, and we deconsolidated PVG from our Consolidated Financial Statements. The results of operations and cash flows attributable to PVG for the 2010 period are presented in these Condensed Consolidated Financial Statements and Notes as discontinued operations.

Oil and Gas Properties

In July 2011, we executed an agreement to sell substantially all of our Arkoma Basin assets for approximately $30 million, excluding transaction costs and subject to customary purchase and sale adjustments. The transaction will be effective July 1, 2011 and we anticipate that it will close during the third quarter of 2011. The properties to be sold include approximately 73,000 net acres and proved reserves of approximately 42.5 billion cubic feet of natural gas equivalent. The carrying value of these properties as of June 30, 2011 was approximately $101 million. During the quarter ended June 30, 2011, we recognized an impairment of approximately $71 million with respect to these assets.

In January 2010, we completed the sale of all of our oil and gas properties in the Gulf Coast region (southern Texas and Louisiana) for cash proceeds of $23.2 million, net of transaction costs and certain purchase and sale adjustments, and the exchange of certain oil and gas properties located in the Gwinville field in northern Mississippi valued at $8.2 million.