Provident Energy IR Presentation

PROVIDENT ENERGY TRUST BUILDING A UNIQUE ENERGY BUSINESS Thomas W. Buchanan, CA

President and Chief Executive Officer and Director CAPP Investment Symposium 2008 June 16, 2008

Forward Looking Statements 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 forwardlooking 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.

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CAPP Investment Symposium – June 16, 2008

Provident Facts All amounts in Cdn$ unless otherwise stated (as at June 12, 2008) Exchanges TSX: NYSE:

PVE.UN PVX

Average Daily Volume (Last 60 Days) (254 million units outstanding) TSX: NYSE:

Current Capitalization Unit Price (June 12, 2008) Market Capitalization ($ billion) (1) Enterprise Value ($ billion) BreitBurn Energy Partners, L.P. NASDAQ-GS: Unit Price (US$/unit) Market Capitalization (US$ billion) (1) Enterprise Value (US$ billion)

462,000 1,041,000

$ $

11.87 3.0

$

4.5

$ $ $

Trading Metrics Current Yield (PVE.UN $11.87) Yield - PVE High (Cdn$ 12.99) Yield - PVE Low (Cdn$ 8.80) Midstream - Q1 2008 EBITDA ($ million)

$

76

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

$

71

Production - Q1 2008 Canadian Oil & Gas (boed) US Oil & Gas (boed) Total (boed)

BBEP 22.30 1.5 1.8

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

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12.1% 11.1% 16.4%

27,600 24,700 52,300

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

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2008 First Quarter Highlights FOR THE THREE MONTHS ENDED MARCH 31, 2008 in millions of Canadian dollars

Funds Flow from Operations

Canadian Oil & Gas

$71

Midstream

Q1 2008 (4) Consolidated

Q1 2007

$59

$180

$87

107

$0.71

$0.41

74

$91

$76

19

$0.36

$0.36

-

59%

91%

(35)

per Unit Declared Distributions per Unit (1)

Payout Ratio

Total Debt Total Debt to Annualized Q1 Funds Flow Production (boed) (3)

$287

$861

$1,492

$966

55

1.0x

3.6x

2.1x

2.8x

(25)

52,331

32,423

61

$39

118

27,589

Capital Expenditures (continuing operations only)

$79

$5

$85

in millions of Canadian dollars

MLP

DevCo

USOGP

22

96

22,261

2,481

24,742

$47

$3

$50

Total Debt

$334

$11

$345

Total Debt to Annualized Q1 Funds Flow

1.8x

0.9x

1.7x

Provident Ownership (%) Production (boed) Funds Flow from Operations

% Change

(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).

(2) Figures may not add due to rounding.

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

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

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Midstream Business Unit

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Midstream: North American Presence

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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 8

CAPP Investment Symposium – June 16, 2008

Midstream: Size and Scope Provident Energy Trust Midstream & Infrastructure Trusts - 2007 EBITDA ($millions) $365 $318 $232

$226

$225

$193 $157

Fort Chicago Inter Pipeline

AltaGas / Taylor

Provident

Pembina

Enbridge

Keyera

Provident Energy Trust Midstream Historical EBITDA ($millions)

$220

$10 Q4 2003

9

$50 2004

$226

$76

$71

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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 34% 9%

58%

• purchases NGL mix from various producers and fractionates into finished products • sells finished products primarily into Intra-Alberta markets

Empress East Midstream EBITDA Empress East Margin Redwater West Margin Commercial Services Margin Gross Operating Margin

10

$millions

$66.5 40.3 10.6 $117.3

Cash Administrative Expenses Realized Hedging Losses

(11.5) (29.5)

Midstream EBITDA

$76.0

CAPP Investment Symposium – June 16, 2008

• 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

Midstream Opportunities: Redwater Strategic Location • Redwater is positioned for oil sands-related growth – Facility expansion possibilities

• Product blending and storage opportunities SUNCOR

– ‘Synbit’, ‘dilbit’ (oil sands products) – Hydrogen storage potential – Condensate business growth including truck & rail loading – Butane supply

• Empress C5+ storage potential

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Canadian Oil & Gas Business Unit

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Canadian Oil & Gas: Areas of Operation Northwest Alberta: Shallow Gas Light Oil 2008 Q1: 4,640 boed

Canadian Oil & Gas 2008 First Quarter Production by Commodity

Dixonville: Medium Quality Oil Natural Gas 2008 Q1: 3,902 boed West Central Alberta: Liquids Rich Gas Light Sweet Oil 2008 Q1: 6,593 boed

Crude Oil & NGL 49%

Lloydminster: Heavy Oil 2008 Q1: 3,143 boed SE Saskatchewan: Light Sweet Oil 2008 Q1: 3,108 boed

Southern Alberta: Shallow Gas Medium Quality Oil 2008 Q1: 4,741 boed

Natural Gas 51%

SW Saskatchewan: Shallow Gas 2008 Q1: 1,462 boed

Provident operates approximately 75% of its Canadian Oil & Gas assets 13

CAPP Investment Symposium – June 16, 2008

Canadian Oil & Gas: Strengthening Assets Canadian Oil & Gas Reserves & Reserve Life Index (RLI)

SW Sask Internal shallow gas development

P+P RLI (yrs)

8 6

5.7

5.9

9.7

95

7.8

85

6.5 Dixonville Acquisition Jun 2007 medium oil

4

75 65 55 45

2 -

105

55

68

56

74

101

2003

2004

2005

2006

2007

Prov ed + Probable Reserv es

35

P+P Reserves (MMboe)

10

Rainbow Acquisition Aug 2006 shallow gas

Triwest Acquisition Oct 2007 light sweet oil

25

Prov ed + Probable RLI

• Since 2003, proved + probable reserve life index has increased by 70% – Executed strategy of targeting longer life assets with future growth potential 14

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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 15

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Canadian Oil & Gas: Organic Growth Opportunity Inventory 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

895 - 1,075

760 - 1,060

15.00 – 20.00

Total

• 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 16

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Canadian Oil & Gas: 2008 Guidance • Production – 26,000 - 28,000 boed 2008 Capital Program Dixonville Northwest Alberta Southeast Saskatchewan Southern Alberta West Central Alberta Lloydminster Southwest Saskatchewan Canadian Oil & Gas

$ million Wells (1) $ 49 35 $ 33 16 $ 20 15 $ 10 10 $ 10 12 $ 6 2 $ 6 5 $ 134 92

(1) Net wells to be drilled, completed, and equipped excluding recompletions and workovers (2) Figures may not add due to rounding

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Strategic Planning & Concluding Thoughts

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CAPP Investment Symposium – June 16, 2008

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 19

CAPP Investment Symposium – June 16, 2008

Investment Value Current Price/ 2008E Cash Flow

Current 2008E Yield

6.2x 5.6x 9.4x

10.2% 9.6% 8.2%

E&P MLPs Midstream MLPs BBEP

9.0x 11.4x 9.9x

9.1% 7.3% 8.9%

Provident (1)

6.1x

12.1%

Canada (1) Large Cap E&P Trusts Mid Cap E&P Trusts Midstream Trusts

U.S. (2)

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 20

CAPP Investment Symposium – June 16, 2008

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

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