Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the financial condition and results of operations of Penn Virginia Resource Partners, L.P. and its subsidiaries (the "Partnership," "we," "us" or "our") should be read in conjunction with our condensed consolidated financial statements and the accompanying notes in Item 1, "Financial Statements."

Overview of Business

We are a publicly traded Delaware limited partnership formed by Penn Virginia in 2001 that is principally engaged in the management of coal and natural resource properties and the gathering and processing of natural gas in the United States. Both in our current limited partnership form and in our previous corporate form, we have managed coal properties since 1882. We currently conduct operations in two business segments: (i) coal and natural resource management and (ii) natural gas midstream. Our operating income (loss) was $21.9 million in the three months ended March 31, 2009, compared to $31.2 million in the three months ended March 31, 2008. In the three months ended March 31, 2009, our coal and natural resource management segment contributed $25.0 million, or 114%, to operating income. This contribution to operating income was partially offset by a $3.0 million operating loss from our natural gas midstream segment, or 14%.

The following table presents a summary of certain financial information relating to our segments: