Penn Virginia Resource Partners, L.P.: Company Profile and SWOT Analysis by ICDResearch

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									Penn Virginia Resource Partners, L.P.

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Penn Virginia Resource Partners,                                               Financial Snapshot

L.P.                                                                           Operating Performance

Fast Facts                                                                     The company reported revenue of US$864.14 million
                                                                               during the fiscal year 2010 (2010). The company's
                                      Three Radnor Corporate Center, Radnor,   revenue grew at a CAGR of 13.65% during 2006–
Headquarters Address
                                      19087,Other                              2010, with an annual growth of 31.59% over 2009. In
                                                                               2010, the company recorded an operating margin of
Telephone                             + 1 610 6878900
                                                                               14.57%, as against 16.49% in 2009.
Fax                                   + 1 610 6873688
                                                                               Revenue and Margins
Website                               www.pvresource.com

Ticker Symbol, Stock Exchange         PVR, New York Stock Exchange

Number of Employees                   201

Fiscal Year End                       December

Revenue (in US$ million)              864.14




SWOT Analysis                                                                  Return on Equity

Strengths                             Weaknesses                               The company recorded a return on equity (ROE) of
                                                                               15.98% for 2010, as compared to its peers, Alliance
Sales backed by long term contracts   Overdependence on few customers          Resource Partners, L.P. (Ticker: ARLP), Southern
                                                                               Union Company (Ticker: SUG) and Provident Energy
                                      Overdependence on Natural Gas            Trust (Ticker: PVE), which recorded ROEs of 70.43%,
Strong financial performance                                                   8.76% and -1.79% respectively. The company
                                      Midstream segment
                                                                               reported a net profit margin of 14.57% in 2010.
Strong property portfolio             Substantial debts
                                                                               Return on Equity


Opportunities                         Threats

Acquisition of coal reserves          Environmental regulations

Expansion of gas midstream assets     Industry consolidation

Increasing demand of natural gas in   US energy policy and increasing tax
the US                                burden
Merger agreement with Penn Virginia
GP Holdings



                                                                               Liquidity Position

                                                                               The company reported a current ratio of 0.89 in 2010,
                                                                               as compared to its peers, Alliance Resource Partners,
                                                                               L.P., Southern Union Company and Provident Energy
                                                                               Trust, which recorded current ratios of 3.26, 0.78 and
                                                                               0.75 respectively. As of December 2010, the
                                                                               company recorded cash and short-term investments
                                                                               of worth US$10.65 million, against zero current debt.
                                                                               The company reported a debt to equity ratio of 1.65 in
                                                                               2010 as compared to its peers, Alliance Resource
                                                                               Partners, L.P., Southern Union Company and
                                                                               Provident Energy Trust, which recorded debt to equity
                                                                               ratios of 1.59, 1.51 and 0.81 respectively.




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Penn Virginia Resource Partners, L.P. - SWOT Profile                                                                   Page 1
Penn Virginia Resource Partners, L.P.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1       M&A and Partn
								
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