Penn Virginia GP 8-K Announces Third Quarter 2007 Results

Exhibit 99.1

Penn Virginia GP Holdings, L.P.

Three Radnor Corporate Center, Suite 300, 100 Matsonford Road, Radnor, PA 19087

FOR IMMEDIATE RELEASE

Contact: James W. Dean, Director, Investor Relations

Ph: (610) 687-8900 Fax: (610) 687-3688 E-Mail:invest@pennvirginia.com

PENN VIRGINIA GP HOLDINGS, L.P.

ANNOUNCES THIRD QUARTER 2007 RESULTS

RADNOR, PA (BusinessWire) October 31, 2007 –Penn Virginia GP Holdings, L.P. (NYSE: PVG) today reported distributable cash of $11.7 million, net income of $8.9 million, and adjusted net income, which excludes the effects of a non-cash change in derivatives fair value, of $12.8 million for the three months ended September 30, 2007. Reconciliations of distributable cash and adjusted net income, non-GAAP (generally accepted accounting principles) financial measures, appear in the financial tables later in this release.

As previously announced, on November 19, 2007, PVG will pay to unitholders of record as of November 5, 2007 a quarterly cash distribution covering the period July 1 through September 30, 2007 in the amount of $0.30 per unit, or an annualized rate of $1.20 per unit. This annualized distribution represents a $0.08 per unit, or seven percent, increase over the annualized distribution of $1.12 per unit paid in the prior quarter.

PVG owns the general partner, including the incentive distribution rights, and is the largest limited partner unitholder of Penn Virginia Resource Partners, L.P. (NYSE: PVR) and reports its financial results on a consolidated basis with the financial results of PVR. PVG currently has no separate operating activities apart from those conducted by PVR and derives its cash flow solely from cash distributions received from PVR.

These items, together with operational updates and full-year 2007 guidance for PVR and its coal and natural resource management and natural gas midstream segments, are discussed in more detail in PVR’s news release dated October 31, 2007 (please visit PVR’s website,www.pvresource.com under “For Investors,” for a copy of the release).

Management Comment

A. James Dearlove, Chief Executive Officer of PVG, said, “We are pleased to present third quarter 2007 results for PVG. PVR’s operations, which generate our cash flows, produced record operating income and distributable cash flow during the quarter that allowed for the recent seven percent distribution increase. We remain focused on continuing to grow cash distributions as PVR executes its growth strategy. PVR continues to evaluate coal reserve and natural gas midstream acquisitions, as well as organic growth opportunities. Moreover, PVR recently completed approximately $124 million in acquisitions of forestlands and natural gas royalties in Appalachia which are expected to contribute to its distributable cash flow.”

Guidance for 2007

See the Guidance Table included in PVR’s October 31, 2007 release for guidance estimates for full-year 2007.

Conference Call

A joint conference call and webcast, during which management will discuss third quarter 2007 results for PVG and PVR, is scheduled for Thursday, November 1, 2007 at 1:00 p.m. ET. Prepared remarks by A. James Dearlove, Chief Executive Officer, will be followed by a question and answer period. Investors and analysts may participate via phone by dialing 1-877-407-9205 five to ten minutes before the scheduled start of the conference call, or via webcast by logging on to PVG’s website atwww.pvgpholdings.com at least 20 minutes prior to the scheduled start of the call to download and install any necessary audio software. A telephone replay of the call will be available until November 15, 2007 at 11:59 p.m. ET by dialing 1-877-660-6853 and using the following replay pass codes: account #286, conference ID #257719. An on-demand replay of the conference call will be available at PVR’s website beginning shortly after the call.

******

Headquartered in Radnor, PA, Penn Virginia GP Holdings, L.P. (NYSE: PVG) is a publicly traded limited partnership formed to own the general partner interest, all of the incentive distribution rights and approximately 42 percent of the limited partner interests in Penn Virginia Resource Partners, L.P. (NYSE: PVR), a manager of coal and natural resource properties and related assets and the operator of a midstream natural gas gathering and processing business.

For more information about PVG, please visit its website atwww.pvgpholdings.com. For more information about PVR, please visit its website atwww.pvresource.com.

Certain statements incorporated herein by reference to the PVR news release dated October 31, 2007 that are not descriptions of historical facts are “forward-looking” statements by PVR within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies are discussed in more detail in PVR’s news release dated October 31, 2007 and in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2006. Many of the factors that will determine PVR’s and, therefore, our future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as the result of new information, future events or otherwise.

PENN VIRGINIA GP HOLDINGS, L.P.

CONSOLIDATED STATEMENTS OF INCOME—unaudited

(in thousands, except per unit data)

	Three Months Ended, September 30,						Nine Months Ended, September 30,
	2007			2006			2007			2006
Revenues
Natural gas midstream	$	100,370		$	100,809		$	310,095		$	305,340
Coal royalties		24,426			26,612			73,455			73,288
Coal services		1,955			1,515			5,648			4,345
Other		3,453			2,558			9,350			7,148
Total revenues		130,204			131,494			398,548			390,121
Expenses
Cost of midstream gas purchased		76,192			80,272			251,000			254,615
Operating		5,224			6,378			16,235			13,950
Taxes other than income		666			483			2,116			1,619
General and administrative		5,980			4,599			18,686			15,003
Depreciation, depletion and amortization		10,645			9,864			30,600			27,501
Total expenses		98,707			101,596			318,637			312,688
Operating Income		31,497			29,898			79,911			77,433
Interest expense		(4,678	)		(5,276	)		(11,842	)		(13,759	)
Other		426			331			1,245			902
Derivatives		(10,730	)		6,386			(20,927	)		(11,676	)
Income before minority interest		16,515			31,339			48,387			52,900
Minority interest		(7,637	)		(18,539	)		(23,488	)		(31,187	)
Net income	$	8,878		$	12,800		$	24,899		$	21,713
Basic and diluted net income per limited partner unit	$	0.23		$	0.40		$	0.64		$	0.68
Weighted average units outstanding, basic and diluted		39,075			32,125			39,070			32,125
Other data:
Coal and natural resource management segment:
Coal royalty tons (in thousands)		8,842			8,781			25,186			24,467
Average gross coal royalty ($ per ton)	$	2.76		$	3.03		$	2.92		$	3.00
Natural gas midstream segment:
Midstream system throughput volumes (MMcf)		17,844			16,586			50,763			45,234
Gross midstream processing margin (in thousands)	$	24,178		$	20,537		$	59,095		$	50,725

PENN VIRGINIA GP HOLDINGS, L.P.

CONSOLIDATED BALANCE SHEETS

(in thousands)

	September 30, 2007		December 31, 2006
	(unaudited)
Assets
Cash	$	13,965	$	13,687
Receivables		67,484		66,987
Derivative assets		1,231		449
Other current assets		2,349		2,587
Total current assets		85,029		83,710
Property and equipment, net		690,811		556,513
Derivative assets		802		2,455
Other long-term assets		82,864		73,591
Total assets	$	859,506	$	716,269
Liabilities and Partners’ Capital
Accounts payable and accrued liabilities	$	57,071	$	63,340
Current portion of long-term debt		12,554		10,832
Deferred income		5,761		6,999
Derivative liabilities		22,115		6,996
Total current liabilities		97,501		88,167
Other long-term liabilities		7,231		9,931
Derivative liabilities		3,457		6,618
Long-term debt		351,618		207,214
Minority interest—(a)		170,559		330,148
Partners' capital—(a)		229,140		74,191
Total liabilities and partners’ capital	$	859,506	$	716,269

(a)—The decrease in minority interest and corresponding increase in partners’ capital is primarily due to a gain recognized on the sale of PVR’s common units in its initial public offering in 2001 and each subsequent PVR equity issuance. In accordance with SEC Staff Accounting Bulletin No. 51, PVG deferred recognition of the gain until all PVR junior securities converted to common units in May 2007.

CONSOLIDATED STATEMENTS OF CASH FLOWS—unaudited

(in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Operating Activities
Net income	$	8,878		$	12,800		$	24,899		$	21,713
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		10,645			9,864			30,600			27,501
Commodity derivative contracts:
Total derivative losses		12,034			(5,561	)		24,359			12,951
Cash receipts (payments) to settle derivatives for period		(4,702	)		(7,344	)		(8,963	)		(15,405	)
Non-cash interest expense		165			191			494			573
Minority interest		7,637			18,539			23,488			31,187
Equity earnings, net of distributions		(255	)		(425	)		(1,133	)		1,603
Other		—			428			(198	)		1,156
Changes in operating assets and liabilities		(5,366	)		(6,462	)		(8,338	)		(10,803	)
Net cash provided by operating activities		29,036			22,030			85,208			70,476
Investing Activities
Acquisitions		(93,423	)		(199	)		(145,879	)		(81,586	)
Additions to property and equipment		(10,781	)		(11,572	)		(29,655	)		(26,893	)
Other		—			30			197			33
Net cash used in investing activities		(104,204	)		(11,741	)		(175,337	)		(108,446	)
Financing Activities
Distributions to partners		(22,079	)		(15,512	)		(56,453	)		(44,435	)
Proceeds from (repayments of) borrowings, net		89,000			10,000			146,000			71,500
Proceeds from issuance of common units		—			—			860			—
Net cash provided by (used in) financing activities		66,921			(5,512	)		90,407			27,065
Net increase (decrease) in cash and cash equivalents		(8,247	)		4,777			278			(10,905	)
Cash and cash equivalents—beginning balance		22,212			7,468			13,687			23,150
Cash and cash equivalents—ending balance	$	13,965		$	12,245		$	13,965		$	12,245

Note: The financial information included in this earnings release represents the combined financial information of Penn Virginia Resource GP, LLC and subsidiaries for the nine months ended September 30, 2006 and the financial information of Penn Virginia GP Holdings, L.P. for the nine months ended September 30, 2007.

PENN VIRGINIA GP HOLDINGS, L.P.

DISTRIBUTABLE CASH (A NON-GAAP FINANCIAL MEASURE)—unaudited

(in thousands, except per unit data)

The following table presents the calculation and reconciliation of distributable cash of PVG with respect to the three months ended September 30, 2007:

Distributable cash:
Cash distributions to be received from PVR in November 2007 associated with:
General partner 2% interest	$	405
General partner incentive distribution rights		3,565
19,587,049 PVR common units at $0.43 per common unit		8,422
Total cash expected to be received from PVR		12,392
Deduct: Net expenses of PVG on a stand-alone basis (see Note 1)		(600	)
Cash reserve for working capital		(70	)
Distributable cash (Note 2)	$	11,722
Units outstanding (in thousands)		39,075
Distribution per limited partner unit	$	0.30
Cash distributions to be paid to unitholders of Penn Virginia G.P. Holdings, L.P. in November 2007
To Penn Virginia Corporation (32,087,424 common units)	$	9,626
To public unitholders (6,987,076 common units)		2,096
Total cash distributions to be paid	$	11,722

Note 1—Estimated net expenses of PVG for the fourth quarter 2007 which represents general and administrative expenses, offset in part by interest income.

Note 2—Distributable cash represents cash distributions received from PVR, minus our net expenses, minus cash reserve for working capital. Distributable cash is presented because we believe it is a useful adjunct to net income under GAAP. Distributable cash is a significant liquidity metric which is an indicator of our ability to pay quarterly cash distributions to our limited partners. Distributable cash is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities, as an indicator of cash flows, as a measure of liquidity or as an alternative to net income.

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES—unaudited

(in thousands, except per unit data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Reconciliation of GAAP “Net income” to Non-GAAP "Net income as adjusted"
Net income as reported	$	8,878		$	12,800		$	24,899		$	21,713
Adjustments for derivatives:
Derivative losses included in operating income		1,304			825			3,432			1,275
Derivative losses (gains) included in other income		10,730			(6,386	)		20,927			11,676
Cash payments to settle derivatives for period		(4,702	)		(7,344	)		(8,963	)		(15,405	)
Impact of adjustments on minority interest		(3,391	)		7,634			(7,474	)		1,447
Net income as adjusted (see Note 3 below)	$	12,819		$	7,529		$	32,821		$	20,706

Note 3—Net income as adjusted represents net income excluding any gains or losses on derivatives, adjusted for any cash settlements received (paid) and adjusted for related minority interest. The Company believes “net income as adjusted” provides a useful measure which excludes the impact of mark-to-market accounting.

PENN VIRGINIA GP HOLDINGS, L.P.

QUARTERLY SEGMENT INFORMATION—unaudited

(in thousands)

	Coal and Natural Resource Management		Natural Gas Midstream		Other			Consolidated
Three Months Ended September 30, 2007
Revenues
Natural gas midstream	$	—	$	100,370	$	—		$	100,370
Coal royalties		24,426		—		—			24,426
Coal services		1,955		—		—			1,955
Other		2,035		1,418		—			3,453
Total revenues		28,416		101,788		—			130,204
Expenses
Cost of midstream gas purchased		—		76,192		—			76,192
Coal royalties expense		979		—		—			979
Other operating		1,020		3,225		—			4,245
Taxes other than income		242		424		—			666
General and administrative		2,630		3,076		274			5,980
Depreciation, depletion and amortization		5,833		4,812		—			10,645
Total expenses		10,704		87,729		274			98,707
Operating income (loss)	$	17,712	$	14,059	$	(274	)	$	31,497
Additions to property and equipment and acquisitions, net of cash acquired	$	93,449	$	10,755	$	—		$	104,204
	Coal and Natural Resource Management		Natural Gas Midstream		Other			Consolidated
Three Months Ended September 30, 2006
Revenues
Natural gas midstream	$	—	$	100,809	$	—		$	100,809
Coal royalties		26,612		—		—			26,612
Coal services		1,515		—		—			1,515
Other		1,763		795		—			2,558
Total revenues		29,890		101,604		—			131,494
Expenses
Cost of midstream gas purchased		—		80,272		—			80,272
Coal royalties expense		2,893		—		—			2,893
Other operating		447		3,038		—			3,485
Taxes other than income		154		329		—			483
General and administrative		2,095		2,504		—			4,599
Depreciation, depletion and amortization		5,551		4,313		—			9,864
Total expenses		11,140		90,456		—			101,596
Operating income	$	18,750	$	11,148	$	—		$	29,898
Additions to property and equipment and acquisitions, net of cash acquired	$	5,735	$	6,036	$	—		$	11,771

PENN VIRGINIA GP HOLDINGS, L.P.

YEAR-TO-DATE SEGMENT INFORMATION—unaudited

(in thousands)

	Coal and Natural Resource Management		Natural Gas Midstream		Other			Consolidated
Nine Months Ended September 30, 2007
Revenues
Natural gas midstream	$	—	$	310,095	$	—		$	310,095
Coal royalties		73,455		—		—			73,455
Coal services		5,648		—		—			5,648
Other		6,207		3,143		—			9,350
Total revenues		85,310		313,238		—			398,548
Expenses
Cost of midstream gas purchased		—		251,000		—			251,000
Coal royalties expense		4,582		—		—			4,582
Other operating		2,086		9,567		—			11,653
Taxes other than income		832		1,280		4			2,116
General and administrative		7,989		9,119		1,578			18,686
Depreciation, depletion and amortization		16,643		13,957		—			30,600
Total expenses		32,132		284,923		1,582			318,637
Operating income (loss)	$	53,178	$	28,315	$	(1,582	)	$	79,911
Additions to property and equipment and acquisitions, net of cash acquired	$	146,915	$	28,619	$	—		$	175,534
	Coal and Natural Resource Management		Natural Gas Midstream		Other			Consolidated
Nine Months Ended September 30, 2006
Revenues
Natural gas midstream	$	—	$	305,340	$	—		$	305,340
Coal royalties		73,288		—		—			73,288
Coal services		4,345		—		—			4,345
Other		5,482		1,666		—			7,148
Total revenues		83,115		307,006		—			390,121
Expenses
Cost of midstream gas purchased		—		254,615		—			254,615
Coal royalties expense		4,411		—		—			4,411
Other operating		1,152		8,387		—			9,539
Taxes other than income		565		1,054		—			1,619
General and administrative		6,794		8,209		—			15,003
Depreciation, depletion and amortization		15,050		12,451		—			27,501
Total expenses		27,972		284,716		—			312,688
Operating Income	$	55,143	$	22,290	$	—		$	77,433
Additions to property and equipment and acquisitions, net of cash acquired	$	80,902	$	27,577	$	—		$	108,479