Provident Energy Announces First Quarter 2005 Results

May 9 , 2005

Press Release #14-05

First quarter 2005 highlights
- Provident’s U.S. subsidiary BreitBurn Energy completed the $95.8 million acquisition of Wyoming-based Nautilus Resources adding 2,300 boed of production and 20.1 million barrels of Proved Plus Probable reserves at a cost of $4.77 per barrel
- Provident closed a bought deal financing raising net proceeds of $191.8 million
- Provident generated $64.1 million ($0.43/unit) in cash flow from operations
- Provident declared distributions of $51.7 million ($0.36/unit) representing a payout ratio of 81 percent of cash flow from operations

CALGARY, ALBERTA – Provident Energy Trust (Provident) (TSX-PVE.UN; AMEX-PVX) reported first quarter 2005 cash flow from operations of $64.1 million ($0.43/unit) compared to $36.3 million ($0.41/unit) generated in the first quarter of 2004, an increase of 77 percent. Distributions declared in the quarter totaled $51.7 million ($0.36/unit) compared to $31.0 million ($0.36/unit) in 2004. For the first quarter 2005, Provident’s payout ratio of cash flow from operations was 81 percent compared to 86 percent in the same period of 2004. Provident adopted and retroactively applied the classification of convertible debentures as debt and netted the interest expense from cash flow and income for the compared 2004 quarter. Consequently, adjusted cash flow is no longer relevant.

“Provident experienced a strong start to 2005. Operations within our oil and gas production and midstream services business units were solid and our financial results for the quarter were consistent with expectations,” said Provident Chief Executive Officer Tom Buchanan. “We continue to pursue our balanced portfolio business strategy and executed several actions during the first quarter that support our objectives to increase cash flow per unit, enhance the sustainability of the trust, establish new platforms for growth, and be disciplined in the management of our financial resources.”

On March 2, 2005 Provident’s U.S. subsidiary BreitBurn Energy closed the $95.8 million (US$77.6 million) acquisition of Nautilus Resources (Nautilus), a private company based in Wyoming. The newly acquired operations are located in the Big Horn and Wind River Basins. Current production is approximately 2,300 boed consisting of 99 percent crude oil and one percent natural gas. The acquisition included 10.6 million barrels of Proved Producing reserves, 17.1 million barrels of Total Proved reserves and 20.1 million barrels of Proved Plus Probable reserves based on the January 1, 2005 reserve report completed by independent engineers Netherland, Sewell & Associates in accordance with NI 51-101. The respective reserve life indices of the reserves are 12.6 years, 20.4 years and 23.9 years. Provident acquired Nautilus at a cost of $41,652 per flowing barrel, $ 9.04 per barrel of Proved Producing reserves, $5.61 per barrel of Total Proved reserves, and $4.77 per barrel of Proved Plus Probable reserves.

Additionally during the first quarter, Provident closed a bought deal financing, issuing 8.4 million trust units at a price of $12.00 per unit and $100 million of 6.5 percent, seven and half year convertible unsecured subordinated debentures that mature on August 31, 2012 for net proceeds of approximately $191.8 million. The net proceeds of the financing were used to fund the acquisition of Nautilus and to repay a portion of Provident’s bank debt.

For complete first quarter 2005 results, please click here

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Provident Energy Trust is a Calgary-based, open-ended energy income trust that owns and manages an oil and gas production business and a midstream services business. Provident’s energy portfolio is located in some of the more stable and predictable producing regions in western Canada, southern California and Wyoming. Provident provides monthly cash distributions to its unitholders and trades on the Toronto Stock Exchange and the American Stock Exchange under the symbols PVE.UN and PVX, respectively.

Investor and Media Contact: Jennifer Pierce Vice President, Strategy, Performance Management, Investor Relations and Communications Phone (403) 231-6736 Email: info@providentenergy.com Patricia Lew Investor Relations and Communication Analyst Phone: (403) 231-2506 Email: info@providentenergy.com          Corporate Head Office: 800, 112 – 4th Avenue S.W. Calgary, Alberta, Canada  T2P 0H3 Phone: (403) 296-2233 Toll Free: 1-800-587-6299 Fax: (403) 261-6696 www.providentenergy.com