DECEMBER 6, 2002 - 18:30 EST
Provident Energy Trust Announces Increase in December
2002 Cash Distribution
CALGARY, ALBERTA--Provident Energy Trust ("Provident") (TSX -
PVE.UN; AMEX - PVX) today announced the cash distribution for
December 2002 has been increased to Cdn $0.20 per trust unit. The
December 2002 cash distribution will be paid on January 15, 2003
to unitholders of record on December 17, 2002. The
ex-distribution date is December 13, 2002. For unitholders
receiving their distribution in U.S. Funds, the January 15, 2003
cash distribution will be approximately U.S.$0.1281, based on an
exchange rate of 1.5612. The actual U.S. dollar distribution will
depend on the U.S./Canadian dollar exchange rate on the payment
date and will be subject to applicable withholding taxes.
Based on the December 5, 2002 closing price of Cdn $9.90 (TSX -
PVE.UN) per unit, the declared December 2002 cash distribution
represents a cash-on-cash yield of approximately 24 percent. The
Trust estimates that, for Canadian residents, approximately 50
percent of the 2002 cash distributions will be tax deferred. The
December distribution brings total declared distributions for
2002 to Cdn$2.03 per unit and represents approximately 88 percent
of forecast 2002 cash flow, net of the interest payable on
Provident's convertible debentures.
The increase in the monthly distribution is attributable to
higher crude oil and natural gas prices supported by Provident's
Commodity Price Risk Management Program. The Trust has used a
combination of fixed price and costless collar contracts to hedge
between 70 and 80 percent of first quarter 2003 production. As a
result of this program, and without significant changes in
commodity prices, Provident forecasts distributions to be
Cdn$0.20 per unit per month for the first quarter of 2003. For
the remainder of 2003, Provident currently has approximately 45
percent of current production hedged.
Provident Energy Trust is Calgary based, open-ended oil and gas
trust that acquires, develops, produces and markets crude oil,
natural gas and natural gas liquids and provides monthly cash
distributions to its unitholders.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any
jurisdiction.
Forward Looking Statements
This disclosure 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, 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 forward-looking estimates will transpire or
occur, or if any of them do so, what benefits, including the
amounts of proceeds, that Provident will derive therefrom. |
