Provident Energy IR Presentation

PROVIDENT ENERGY TRUSTBUILDING A UNIQUE ENERGY BUSINESS

Thomas W. Buchanan, CAPresident and Chief Executive Officer and Director

CAPP Investment Symposium 2008June 16, 2008

CAPP Investment Symposium – June 16, 20082

This presentation contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond Provident’s control, including the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, pipeline design and construction, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.

Provident’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward- looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds that Provident will derive there from.

All values are in Canadian dollars unless otherwise stated.

Forward Looking Statements


Provident Facts

Exchanges Trading MetricsTSX: PVE.UN Current Yield (PVE.UN $11.87) 12.1%NYSE: PVX Yield - PVE High (Cdn$ 12.99) 11.1%

Yield - PVE Low (Cdn$ 8.80) 16.4%Average Daily Volume (Last 60 Days)

(254 million units outstanding) Midstream - Q1 2008TSX: 462,000 EBITDA ($ million) 76$ NYSE: 1,041,000

Canadian Oil & Gas - Q1 2008Funds Flow from Operations ($ million) 71$

Current Capitalization Production - Q1 2008Unit Price (June 12, 2008) 11.87$ Canadian Oil & Gas (boed) 27,600 Market Capitalization ($ billion) 3.0$ US Oil & Gas (boed) 24,700 Enterprise Value (1) ($ billion) 4.5$ Total (boed) 52,300

BreitBurn Energy Partners, L.P.NASDAQ-GS: BBEPUnit Price (US$/unit) 22.30$ Market Capitalization (US$ billion) 1.5$ Enterprise Value (1) (US$ billion) 1.8$

All amounts in Cdn$ unless otherwise stated (as at June 12, 2008)

(1) Enterprise Value calculated using equity market values as of June 12, 2008 and long term debt at March 31, 2008.


INTRODUCTION• Consistent cash flow and stable distributions

from a high quality asset package ($0.12/month for 55 months)

• Focus on operational, financial, acquisition & people excellence

• Compelling inventory of growth opportunities


2008 First Quarter Highlights

in millions of Canadian dollarsCanadian Oil & Gas Midstream

Q1 2008Consolidated (4) Q1 2007

% Change

Funds Flow from Operations $71 $59 $180 $87 107 per Unit $0.71 $0.41 74 Declared Distributions $91 $76 19 per Unit $0.36 $0.36 - Payout Ratio(1) 59% 91% (35) Total Debt $287 $861 $1,492 $966 55 Total Debt to Annualized Q1 Funds Flow 1.0x 3.6x 2.1x 2.8x (25)

Production (boed) 27,589 52,331 32,423 61 Capital Expenditures(3)

(continuing operations only) $79 $5 $85 $39 118

in millions of Canadian dollars MLP DevCo USOGPProvident Ownership (%) 22 96Production (boed) 22,261 2,481 24,742Funds Flow from Operations $47 $3 $50Total Debt $334 $11 $345Total Debt to Annualized Q1 Funds Flow 1.8x 0.9x 1.7x

(2) Figures may not add due to rounding.

(3) Capital expenditures excludes capital expenditures from discontinued operations (USOGP)

(4) Consolidates 100% of USOGP except for Capital Expenditures

FOR THE THREE MONTHS ENDED MARCH 31, 2008

(1) Calculated as distributions to unitholders divided by funds flow from operations including discontinued operations less distributions to non-controlling interests of $24.9 million (2007 - $3.6 million).


MidstreamBusiness Unit


Midstream: North American Presence


Midstream: Profile• Franchise Business

– Non-replicable integrated NGL business of scale– Newest and lowest cost facilities in Fort Saskatchewan / Redwater

and Empress• Natural Gas Liquids (NGL) extraction, fractionation, storage,

transportation, and marketing• NGLs produced include ethane, propane, butane,

condensate• Basin-based facilities of scale

– Natural gas extraction capacity of 2.1 bcfd at Empress & Younger– Access to the West-East NGL system and all four major North American

NGL hubs• 835 rail cars, 10 million barrels of storage capacity• Annual maintenance capital of $10 - $15 million• Portfolio of over $800 million of growth opportunities

– Redwater assets strategically located to capitalize on oil sands initiatives


Midstream: Size and ScopeProvident Energy Trust

Midstream & Infrastructure Trusts - 2007 EBITDA ($millions)

$365$318

$225$193

$157

$226$232

Fort Chicago Inter Pipeline AltaGas /Taylor

Provident Pembina Enbridge Keyera

Provident Energy TrustMidstream Historical EBITDA ($millions)

$10$50

$220 $226

$76$71

Q4 2003 2004 2005 2006 2007 Q1 2008


Midstream: Business Model Three Months Ended March 31, 2008

Commercial Services

• fee-for-service contracts related to fractionation, storage, loading and marketing services

• pipeline tariffs

Redwater West

• purchases NGL mix from various producers and fractionates into finished products

• sells finished products primarily into Intra-Alberta markets

Empress East

• extracts NGLs from natural gas at the Empress straddle plants

• sells finished products into markets in western & central Canada and the Eastern United States

• extracts NGLs from natural gas at the Empress straddle plants

• Active risk management of frac spread

9%34%

58%

Midstream EBITDA $millions

Empress East Margin $66.5Redwater West Margin 40.3Commercial Services Margin 10.6

Gross Operating Margin $117.3

Cash Administrative Expenses (11.5)Realized Hedging Losses (29.5)

Midstream EBITDA $76.0


Midstream Opportunities: Redwater Strategic Location

• Redwater is positioned for oil sands-related growth

– Facility expansion possibilities • Product blending and

storage opportunities– ‘Synbit’, ‘dilbit’ (oil sands

products)– Hydrogen storage potential– Condensate business growth

including truck & rail loading– Butane supply

• Empress C5+ storage potential

SUNCOR


Canadian Oil & GasBusiness Unit


Canadian Oil & Gas: Areas of Operation

Provident operates approximately 75% of its Canadian Oil & Gas assets

Canadian Oil & Gas 2008 First Quarter

Production by Commodity

Crude Oil & NGL 49%

Natural Gas51%

Southern Alberta:Shallow GasMedium Quality Oil2008 Q1: 4,741 boed

SE Saskatchewan:Light Sweet Oil2008 Q1: 3,108 boed

SW Saskatchewan:Shallow Gas2008 Q1: 1,462 boed

West Central Alberta:Liquids Rich GasLight Sweet Oil2008 Q1: 6,593 boed

Dixonville:Medium Quality OilNatural Gas2008 Q1: 3,902 boed

Northwest Alberta:Shallow GasLight Oil2008 Q1: 4,640 boed

Lloydminster:Heavy Oil2008 Q1: 3,143 boed


Canadian Oil & Gas: Strengthening Assets

• Since 2003, proved + probable reserve life index has increased by 70%– Executed strategy of targeting longer life assets with future

growth potential

Canadian Oil & GasReserves & Reserve Life Index (RLI)

55 68 56 74 101

5.7 5.9

7.8

9.7

6.5

-

2

4

6

8

10

2003 2004 2005 2006 2007

P+P

RLI (

yrs)

25

35

45

55

65

75

85

95

105

P+P

Rese

rves

(MM

boe)

Proved + Probable Reserves Proved + Probable RLI

Dixonville AcquisitionJun 2007

medium oil

Triwest AcquisitionOct 2007

light sweet oil

SW SaskInternal shallow

gas development

Rainbow AcquisitionAug 2006

shallow gas


Canadian Oil & Gas: Business Development Strategy

• Capitalize on the portfolio of over $750 million in organic development opportunities– Northwest Alberta, Dixonville, and Southeast

Saskatchewan– Full-cycle exploration and production

opportunities

• Continue the disciplined approach to quality acquisitions– Focus on quality assets that provide future

development opportunities


Canadian Oil & Gas: Organic Growth

• Provident has a diverse set of opportunities consisting of more than 15 different play types

• Approximately 474,000 net acres undeveloped land• 5+ years of opportunities

Number of Opportunities

Capital Expenditure ($millions)

F&D Target ($/boe)

Northwest Alberta 500 - 600 400 - 600 16.00 - 20.00

Dixonville 120 - 140 125 - 150 10.00 – 14.00

Southern Alberta 140 - 160 90 - 120 14.00 - 18.00

SE Saskatchewan 40 - 50 50 - 60 18.00 - 22.00

SW Saskatchewan 55 - 75 40 - 60 14.00 - 18.00

West Central Alberta 25 - 30 45 - 55 14.00 - 20.00

Lloydminster 15 - 20 10 - 15 10.00 - 14.00

Total 895 - 1,075 760 - 1,060 15.00 – 20.00

Opportunity Inventory


Canadian Oil & Gas: 2008 Guidance• Production

– 26,000 - 28,000 boed

2008 Capital Program $ million Wells (1)Dixonville 49$ 35 Northwest Alberta 33$ 16 Southeast Saskatchewan 20$ 15 Southern Alberta 10$ 10 West Central Alberta 10$ 12 Lloydminster 6$ 2 Southwest Saskatchewan 6$ 5 Canadian Oil & Gas 134$ 92 (1) Net wells to be drilled, completed, and equipped excluding recompletions and workovers(2) Figures may not add due to rounding


Strategic Planning

&

Concluding Thoughts


Strategic Planning• On February 5th, 2008, we provided a strategic planning

update – Sale process for U.S. Oil and Gas assets underway– Consider possible separation of Canadian Upstream and

Midstream components

• Strategic planning process is driven by the desire to– Address SIFT tax and market implications of taxability

– Optimize business performance

– Facilitate business growth and competiveness

– Improve overall access to capital

– Enhance the cost of capital of Provident’s businesses

• Process will consider the most viable strategic & structural options available to capture and protect unitholder value


Investment ValueCurrent Price/ 2008E

Cash Flow Current 2008E Yield

Canada (1)

Large Cap E&P Trusts 6.2x 10.2%Mid Cap E&P Trusts 5.6x 9.6%Midstream Trusts 9.4x 8.2%

U.S. (2)

E&P MLPs 9.0x 9.1%Midstream MLPs 11.4x 7.3%BBEP 9.9x 8.9%Provident (1) 6.1x 12.1%As at June 11, 2008(1) Consensus estimates (2) Source: Morgan Stanley

• The implied value of Provident’s component pieces exceeds current market value

• Provident will continue to be creative to enhance value– Midstream business growth is impacted by its cost of capital disadvantage


Concluding Thoughts• Provident has deep North American energy

expertise and exposure– North American conventional oil & natural gas exploitation

& production– North American midstream presence– Facilities and services exposure to oilsands development

• Provident continues to grow business to enhance unit holder value– Proactively working to optimize structure – High quality assets and compelling development

opportunities provide a platform for future growth and value creation

Provident Energy IR Presentation

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