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DEFINITION |
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| Accretive |
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Growth through external addition. Often used to describe acquisitions. An accretive acquisition is one that increases a trust's cash flow per unit. |
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| AECO “C” NIT |
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Alberta Energy Company interconnect
with the Nova system. |
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| API (American Petroleum Institute) Gravity |
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A standard for expressing the density of liquid petroleum products. The higher the API gravity, the lighter the crude oil. Water has an API gravity of 10 API degrees. |
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| ASC |
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Alberta Securities Commission |
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| bbl |
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Barrel |
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| boe |
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Barrels of oil equivalent (6Mcf
gas = 1 bbl crude oil) |
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| boed |
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Barrel of oil equivalent per day |
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| bpd |
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Barrels per day |
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| Capital Expenditures |
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Investment of financial resources.
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| Collars |
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Combinations of put and call options that can limit risk. |
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| Condensate |
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A hydrocarbon, usually produced with natural gas, which is liquid at normal pressure and temperature. |
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| Convertible Debentures |
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A long term unsecured corporate bond
that can be exchanged for units. |
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| Crude Oil |
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A mixture of hydrocarbons, yellow to black in colour, commonly referred to as light, medium or heavy crude oil. |
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| Distributable Cash |
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The amount of cash available for distribution
to trust unitholders during an particular period. |
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| Distribution Date |
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The 15th of the month following
any Distribution Record Date. |
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| Distribution Record Date |
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The date that an investor must be
on record as being a unitholder in order
to be eligible to receive the distribution for that
period. |
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| EBITDA |
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Earnings before the deduction of interest expenses, taxes, depreciation, amortization and other non-cash items. EBITDA is an approximate measure of an entity's operating cash flow based on data from the entity's income statement. |
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| Economic Life Index (ELI) |
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In Provident's case, the ELI blends the reserve life index (RLI) calculation from our oil and gas production (upstream) businesses with a valuation of the future cash flow stream from our Midstream business. Provident believes that ELI is the best measure of Provident's sustainability. |
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| Extraction |
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The process used to remove the NGL mix from a natural gas stream. |
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| Ex-Distribution Date |
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Two business days prior to the Distribution Record Date.Holders of units purchased prior to
the Ex-Distribution Date are entitled to the declared
distribution paid on the 15th of the
following month. |
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| Frac Spread |
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The difference between the price of natural gas and the price of the finished NGL products that are extracted from it (finished NGL products are priced in relation to crude oil). Frac spread impacts profitability in the NGL business because natural gas is the feedstock for NGL production. |
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| Fractionation |
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The process of separating NGL mix into ethane (C2), propane (C3), butane (C4), and condensate (C5). The "C" refers to the number of carbon atoms that are in each hydrocarbon molecule chain. A propane molecule, for example, has three carbon atoms. NGLs have a higher value when separated from the natural gas stream. They are sold to petrochemical companies, petroleum refiners, heavy oil producers and LPG distributors. |
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| GJ |
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Gigajoules |
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| Heavy Oil |
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Crude oil with an API gravity of less than 20 API degrees. Heavy oil is dark brown or black and flows like molasses. The main derivative of heavy crude is asphalt used in road paving. Due to blending and transportation costs, heavy curde is priced at a discount to light or medium crude. |
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| Hedging |
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Contracts (physical or financial) made in order to reduce the risk of adverse price movements in a commodity to protect cash flow. |
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| Light Oil |
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Crude oil with an API gravity of greater than 40 API degrees. Light oil is light in colour and flows like water. It has a high evaporation rate and is usually flammable. Light crude is an ideal feedstock for a refinery to produce aviation fuel and gasoline. |
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| Liquidity |
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The ability to meet financial obligations
as they come due. |
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| Liquefied Petroleum Gas (LPG) |
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This term is sometimes used for NGL products after they have been fractioned. For convenience, Provident uses the term NGL at all stages of production. |
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| Market Capitalization |
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Calculated by multiplying a trust's outstanding
units by the day’s closing market price,which, in Provident's case is listed on the TSX or NYSE. |
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| Mbbl |
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Thousands of barrels |
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| Mmbbl |
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Millions of barrels |
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| Mboe |
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Thousands of barrels of oil equivalent |
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| mcf |
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Thousand cubic feet |
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| Mmcf |
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Million cubic feet |
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| Medium Oil |
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Crude oil with an API gravity of 20 to 40 API degrees. Medium oil is denser than light oil, and does not flow as easily. Medium oil is used to create diesel, heating oil and residual fuel. |
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| Midstream |
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The industry term for the parts of the energy industry in between the production of oil and gas (upstream) and the distribution of refined and finished products (downstream). The midstream sector includes pipeline companies and other related services, in addition to NGL processing.. |
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| Mmboe |
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Millions of barrels of oil equivalent |
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| Mmcf |
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Million cubic feet |
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| Natural Gas Liquids (NGLs) |
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Those portions of natural gas that are recovered as liquids in separators, field facilities or gas processing plants. NGLs include, but are not limited to, ethane, propane, butanes, pentanes, and natural gasoline. Condensate may or may not be included. Pure natural gas without liquids is primarily methane. |
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| Net Production |
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The working interest share of gross
production. |
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| Netback |
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The amount received from the sale
of a barrel of oil or barrel of oil equivalent after
operating costs and royalty payments have been deducted. |
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| NI 51-102 (National Instrument 51-02 Continuous Disclosure Obligations) |
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A regulation that strives to ensure that there is one set of continuous reserve disclosure rules across Canada. NI 51-102 was implemented in March 2004. |
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| NYSE |
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New York Stock Exchange. Provident's symbol on the NYSE is PVX. |
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| Operating costs |
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Expenses incurred to recover oil or
natural gas from a well exclusive of capital expenditures. |
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| OSC |
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Ontario Securities Commission |
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| Participating Swap |
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An exchange of streams of payments over time according to specified terms.Provident's participating swaps have a floor price, and the ability to participate on a percentage basis when the commodity price exceeds the floor price. |
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| Payout Ratio |
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The percentage of distributions to
earnings after taxes. |
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| Price Cap/Floor |
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A hedging concept that contractually
establishes a maximum and a minimum price to be
paid for a security or commodity over a specific
period of time. |
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| Probable Reserves |
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Reserves with a higher degree of risk
associated with their ultimate realization. |
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| Proved Developing Producing Reserves
(PDP) |
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Reserves currently on production. These reserves
typically require minimal additional capital to
realize. |
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| Proved Non-producing reserves (PNP) |
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Reserves that require additional capital
to put on production. These reserves generally need to be equipped
or tied in. |
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| Proved Undeveloped Reserves (PUD) |
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Reserves that require additional capital
to put on production. These reserves generally need to be drilled,
completed and tied in. |
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| Put or Call Option |
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Options that give the holder the right to sell or buy a quantity of a commodity at a specified price up to a specified date. |
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| Recycle Ratio |
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Field netback divided by finding, development and acquisition (FD&A) costs.The upstream oil and gas industry commonly uses recycle ratio to measure the value created for every dollar invested. |
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| Reserve Life Index (RLI) |
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A calculation that represents the longevity of the reserves held by a company. RLI is calculated by dividing the reserves base
by the current annual production rate. |
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| Royalty |
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The portion of production or revenue
renumerated to the owner of the mineral rights as
compensation for leasing those mineral rights. |
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| SEC |
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U.S. Securities and Exchange Commission |
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| Shallow Gas |
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Natural gas produced from formations within 3,000 feet (900 metres) of the earth's surface. Provident's shallow gas fields are approximately 1,000 feet (300 metres) to 2,000 feet (600 metres) below the surface. |
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| Straddle Plant |
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A plant that straddles a large natural gas pepeline and that extracts NGLs from natural gas before re-injecting the natural gas into the pipeline. |
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| TSX |
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Toronto Stock Exchange - Provident's symbol on the TSX is PVE.un. |
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| Working Interest |
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The interest held in a property that
indicates the owners’ share of obligations,
such as costs associated with the property, as well
as the owners’ share of the benefits, such
as the production of revenue, after royalties are
deducted. |
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| WTI |
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West Texas Intermediate at Cushing,
Oklahoma |
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