Provident to Acquire EnCana's Midstream NGL Business for $697 million

October 27 , 2005

Press Release #26-05

CALGARY, ALBERTA - Provident Energy Trust (Provident) (TSX-PVE.UN; AMEX-PVX) announced today that it has agreed to acquire the natural gas liquids (NGL) business of EnCana Corporation (TSX, NYSE: ECA), for a purchase price of approximately C$697 million, plus working capital and other adjustments, which Provident estimates to be C$80 million. The acquired business includes interests in an interconnected set of NGL extraction, transportation, storage, fractionation and distribution facilities, with current throughput of almost 25,000 barrels per day of ethane and about 13,500 barrels per day of propane-plus. Also included is NGL marketing company Kinetic Resources. The acquisition complements Provident's existing midstream operations, creating a fully integrated and geographically diverse NGL midstream business. Through this transaction, Provident becomes the second-largest integrated NGL player in Canada, with operations at Fort Saskatchewan, Empress, and Sarnia.

"This is a defining transaction for Provident, and a superb fit with our diversified portfolio strategy of combining quality infrastructure assets with our upstream oil and gas production business," said Provident Chief Executive Officer Thomas Buchanan. "We saw a rare opportunity to acquire a premier suite of long-life assets and to retain an excellent management and operating team. The business complements our current NGL midstream operations beautifully, particularly at Redwater. We see substantial synergies and the opportunity to add additional value in the future, since we're gaining flexibility to manage NGLs across the continent and through the value chain."

To read the full press release

To view the fact sheet regarding the assets acquired

To view presentation

To view the November 16, 2005 presentation to analysts

 Back to Press Releases

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: Laurie Stretch Senior Manager, Investor Relations and Communication Phone: (403) 231-6710 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) 294-0111 www.providentenergy.com