CALGARY, ALBERTA--(Marketwire - June 17, 2008) -
All values are in Canadian dollars unless otherwise indicated
Provident Energy Trust (Provident) (TSX:PVE.UN) (NYSE:PVX) today announced that it has sold a portion of its US Oil and Gas business consisting of its 22 percent interest in BreitBurn Energy Partners L.P. and its 96 percent interest in BreitBurn GP LLC for cash proceeds of US$345 million before closing adjustments and taxes. The purchaser of Provident's interests is BreitBurn Energy Partners L.P. (NASDAQ-BBEP). Proceeds from the sale will be initially applied to Provident's Canadian senior credit facility.
"This sale is an important first step in Provident's strategic review process announced February 5, 2008." said Tom Buchanan, President and Chief Executive Officer. "Provident's investment in BreitBurn has provided an outstanding return to unitholders and the completion of this sale is key to enhancing Provident's flexibility to execute our business plan, capitalize on strategic growth opportunities in our Canadian Oil and Gas and Midstream business units and enhance unitholder value."
Morgan Stanley is acting as Provident's exclusive financial advisor in connection with the transaction.
Provident is continuing to pursue the sale of its remaining US oil and gas assets consisting of a 96 percent interest in BreitBurn Energy Company L.P. ("DevCo"), a privately held partnership. This press release does not constitute and is not intended to be legal or tax advice to any particular holder or potential holder of Provident units. Holders or potential holders of Provident units are urged to consult their own legal and tax advisors as to their particular income tax consequences of holding Provident units.
Provident Energy Trust is a Calgary-based, open-ended energy income trust that owns and manages an oil and gas production business and a natural gas liquids midstream services and marketing business. Provident's energy portfolio is located in some of the most stable and predictable producing regions in Western Canada and the United States. Provident provides monthly cash distributions to its unitholders and trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbols PVE.UN and PVX, respectively.
This document contains certain forward-looking statements concerning Provident, as well as other expectations, plans, goals, objectives, information or statements about future events, conditions, results of operations or performance that may constitute "forward-looking statements" or "forward-looking information" under applicable securities legislation. Such statements or information 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.
Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, commodity prices, operating conditions, capital and other expenditures, and project development activities.
Although Provident believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Provident can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Provident and described in the forward-looking statements or information.
The forward-looking statements or information contained in this news release are made as of the date hereof and Provident undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise unless so required by applicable securities laws. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Provident Energy Trust
Investor and Media Contact:
Manager, Investor Relations
Phone: (403) 231-6710
Corporate Head Office:
2100, 250 -2nd Street SW
Calgary, Alberta T2P 0C1
(403) 296-2233 or Toll Free: 1-800-587-6299
(403) 262-8973 (FAX)