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 Corporation in 2001, and we are principally engaged in the management of coal and natural resource properties and the gathering and processing of natural gas in the United States.

Selected Financial Data - Consolidated

The following table presents summary operating results for the three and nine
months ended September 30, 2009 and 2008 (in thousands):

                                               Three Months Ended September 30,             Nine Months Ended September 30,
                                                  2009                   2008                 2009                   2008
Revenues                                    $        155,625       $        285,276     $        461,803       $        718,595
Expenses                                             127,809                245,253              390,667                603,009
Operating income                                      27,816                 40,023               71,136                115,586
Other income (expense)                                (8,992 )                4,529              (29,522 )              (27,023 )
Net income                                  $         18,824       $         44,552     $         41,614       $         88,563

We currently conduct operations in two business segments: (i) coal and natural resource management and (ii) natural gas midstream.

· Coal and Natural Resource Management-leasing of coal properties in exchange for royalty payments and other land management activities.

· Natural Gas Midstream-natural gas processing, gathering and other related services.

The following table presents a summary of certain financial information relating to our segments (in thousands):