----

|                                                                                                                                                                        | Three months ended December 31, |   |    | Year ended December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|--------|---------|-------------------------|--------|
| ($ 000s except per unit data)                                                                                                                                               |                            |   |    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                        |                            | 2010   |    |                    | 2009   |   |   | % Change |   |   | 2010 |   |   | 2009 |   |   | % Change |   |
|                                                                                                                                                                        |                            |   |    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue from continuing operations (net of   financial derivative instruments)                                                                                    |                            | $      | 514,955 |                    |   | $ | 414,158 |   |   |   | 24 |   |   | $ | 1,621,757 |   |   | $ | 1,452,138 |   |   |   | 12 |   |
|                                                                                                                                                                        |                            |   |    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Funds flow from continuing operations (1)                                                                                                                                   |                            | $      | 72,183  |                    |   |   | 51,190 |   |   |   | 41 |   |   |   | (7,985 | ) |   |   | 147,854 |   |   |   | - |   |
| Funds flow from discontinued operations (1)                                                                                                                                 |                            |   | -       |                    |   | $ | 25,150 |   |   |   | (100 | ) |   | $ | (2,436 | ) |   | $ | 116,152 |   |   |   | - |   |
| Funds flow from operations (1)                                                                                                                                              |                            | $      | 72,183  |                    |   | $ | 76,340 |   |   |   | (5 | ) |   | $ | (10,421 | ) |   | $ | 264,006 |   |   |   | - |   |
| Adjusted EBITDA – continuing operations (2)                                                                                                                           |                            | $      | 84,390  |                    |   | $ | 57,182 |   |   |   | 48 |   |   | $ | 12,653 |   |   | $ | 168,229 |   |   |   | (92 | ) |
|                                                                                                                                                                        |                            |   |    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted funds flow from continuing operations (3)                                                                                                                          |                            | $      | 74,052  |                    |   | $ | 52,769 |   |   |   | 40 |   |   | $ | 204,856 |   |   | $ | 157,109 |   |   |   | 30 |   |
| Per weighted average unit – basic                                                                                                                                     |                            | $      | 0.28    |                    |   | $ | 0.20 |   |   |   | 40 |   |   | $ | 0.77 |   |   | $ | 0.60 |   |   |   | 28 |   |
| Per weighted average unit – diluted                                                                                                                                   |                            | $      | 0.27    |                    |   | $ | 0.20 |   |   |   | 35 |   |   | $ | 0.73 |   |   | $ | 0.60 |   |   |   | 22 |   |
| Percent of adjusted funds flow from continuing   operations paid out as declared distributions                                                                         |                            |   | 65      | %                       |   |   | 90 | % |   |   | (28 | ) |   |   | 94 | % |   |   | 125 | % |   |   | (25 | ) |
| Percent of adjusted funds flow from continuing   operations, net of sustaining capital spending,   paid out as declared distributions                   |                            |   | 68      | %                       |   |   | 92 | % |   |   | (26 | ) |   |   | 96 | % |   |   | 127 | % |   |   | (24 | ) |
| Adjusted EBITDA excluding buyout of financial   derivative instruments and strategic review and   restructuring costs – continuing operations (2) |                            | $      | 86,259  |                    |   | $ | 58,761 |   |   |   | 47 |   |   | $ | 225,494 |   |   | $ | 177,484 |   |   |   | 27 |   |
|                                                                                                                                                                        |                            |   |    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to unitholders                                                                                                                                                |                            | $      | 48,221  |                    |   | $ | 47,456 |   |   |   | 2 |   |   | $ | 191,639 |   |   | $ | 196,217 |   |   |   | (2 | ) |
| Per unit                                                                                                                                                                    |                            | $      | 0.18    |                    |   | $ | 0.18 |   |   |   | - |   |   | $ | 0.72 |   |   | $ | 0.75 |   |   |   | (4 | ) |
| Non-cash distribution in connection with the     disposition of the Upstream business unit                                                              |                            | $      | -       |                    |   | $ | - |   |   |   |   |   |   | $ | 308,690 |   |   | $ | - |   |   |   |   |   |
| Per unit                                                                                                                                                                    |                            | $      | -       |                    |   | $ | - |   |   |   |   |   |   | $ | 1.16 |   |   |   | - |   |   |   |   |   |
| Net income (loss) from continuing operations                                                                                                                                |                            | $      | 55,012  |                    |   | $ | (4,908 | ) |   |   | - |   |   | $ | 103,492 |   |   | $ | 5,168 |   |   |   | 1,903 |   |
| Per weighted average unit – basic                                                                                                                                     |                            | $      | 0.21    |                    |   | $ | (0.02 | ) |   |   | - |   |   | $ | 0.39 |   |   | $ | 0.02 |   |   |   | 1,869 |   |
| Per weighted average unit – diluted                                                                                                                                   |                            | $      | 0.20    |                    |   | $ | (0.02 | ) |   |   | - |   |   | $ | 0.37 |   |   | $ | 0.02 |   |   |   | 1,779 |   |
| Net income (loss)                                                                                                                                                           |                            | $      | 61,315  |                    |   | $ | (20,338 | ) |   |   | - |   |   | $ | (335,095 | ) |   | $ | (89,020 | ) |   |   | 276 |   |
| Per weighted average unit – basic                                                                                                                                     |                            | $      | 0.23    |                    |   | $ | (0.08 | ) |   |   | - |   |   | $ | (1.26 | ) |   | $ | (0.34 | ) |   |   | 270 |   |
| Per weighted average unit – diluted                                                                                                                                   |                            | $      | 0.22    |                    |   | $ | (0.08 | ) |   |   | - |   |   | $ | (1.18 | ) |   | $ | (0.34 | ) |   |   | 247 |   |
| Capital expenditures – continuing operations                                                                                                                          |                            | $      | 26,384  |                    |   | $ | 5,271 |   |   |   | 401 |   |   | $ | 47,763 |   |   | $ | 36,632 |   |   |   | 30 |   |
| Acquisitions – continuing operations                                                                                                                                  |                            | $      | -       |                    |   | $ | - |   |   |   |   |   |   | $ | 22,456 |   |   | $ | 18,500 |   |   |   |   |   |
| Weighted average trust units outstanding (000s)                                                                                                                             |                            |   |    |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     - basic                                                                                                                                             |                            |   | 267,709 |                    |   |   | 263,482 |   |   |   | 2 |   |   |   | 266,008 |   |   |   | 261,540 |   |   |   | 2 |   |
|     - diluted (4)                                                                                                                                       |                            |   | 283,983 |                    |   |   | 263,482 |   |   |   | 8 |   |   |   | 282,282 |   |   |   | 261,540 |   |   |   | 8 |   |
| Provident Midstream NGL sales volumes (bpd)                                                                                                                                 |                            |   | 121,627 |                    |   |   | 111,912 |   |   |   | 9 |   |   |   | 106,075 |   |   |   | 113,528 |   |   |   | (7 | ) |

| Consolidated                                                                                                                                                               |               |   |    |   |   |   |      |     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|---------|--------|--------|--------|-----------|----------|--------|
|                                                                                                                                                                       | As at December 31, |   |    |   |   |   |      |     |
|  ($ 000s)                                                                                                                                                             |               | 2010   |    |   | 2009   |   |      | % Change |   |
| Capitalization                                                                                                                                                             |               |   |    |   |   |   |      |     |   |
| Long-term debt (including current portion)                                                                                                                                 |               | $      | 473,754 |   |   | $      | 505,262   |     |   |   | (6 | ) |
| Unitholders’ equity                                                                                                                                                  |               | $      | 587,218 |   |   | $      | 1,381,399 |     |   |   | (57 | ) |
| (1) Represents cash flow from operations before changes in working capital and site restoration expenditures.                                                              |
| (2) Adjusted EBITDA is earnings before interest, taxes, depreciation, accretion and other non-cash items - see "Reconciliation of Non-GAAP measures".                 |
| (3) Adjusted funds flow from continuing operations excludes realized loss on buyout of financial derivative instruments and strategic review and restructuring costs. |
| (4) Includes dilutive impact of convertible debentures.                                                                                                                    |

----

----

----

----

|                                                                                                                                               | Three months ended December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|--------|
| ($ 000s, except per unit data)                                                                                                                     |                            | 2010   |   |   | 2009 |   |   | % Change |   |
| Funds flow from continuing operations and distributions                                                                                            |                            |   |   |   |   |   |   |   |   |
| Funds flow from continuing operations                                                                                                              |                            | $      | 72,183 |   |   | $ | 51,190 |   |   |   | 41 |   |
| Adjusted funds flow from continuing operations(1)                                                                                                  |                            | $      | 74,052 |   |   | $ | 52,769 |   |   |   | 40 |   |
|      Per weighted average unit                                                                                            |                            |   |   |   |   |   |   |   |   |   |   |   |
|         - basic                                                                                            |                            | $      | 0.28 |   |   | $ | 0.20 |   |   |   | 40 |   |
|         - diluted (2)                                                                                      |                            | $      | 0.27 |   |   | $ | 0.20 |   |   |   | 35 |   |
| Declared distributions                                                                                                                             |                            | $      | 48,221 |   |   | $ | 47,456 |   |   |   | 2 |   |
|      Per unit                                                                                                             |                            | $      | 0.18 |   |   | $ | 0.18 |   |   |   | - |   |
| Percent of adjusted funds flow from continuing   operations paid out as declared distributions                                           |                            |   | 65 | % |   |   | 90 | % |   |   | (28 | ) |
| Percent of adjusted funds flow from continuing   operations, net of sustaining capital spending, paid out as declared distributions |                            |   | 68 | % |   |   | 92 | % |   |   | (26 | ) |
| (1) Adjusted funds flow from operations excludes realized loss on buyout of derivative instruments and strategic review and restructuring costs.   |                            |
| (2) Includes dilutive impact of convertible debentures.                                                                                            |                            |

----

| Continuing operations                                                                                                         |   | Three months ended December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
| ($ 000s)                                                                                                                      |   | 2010                            |   |   | 2009 |   |   | % Change |   |
|                                                                                                                          |   |                            |   |   |   |   |   |   |   |
| Income (loss) before taxes                                                                                                    |   | $                               | 44,332 |   |   | $ | (15,730 | ) |   |   | - |   |
| Adjusted for:                                                                                                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                              |   |                            | 9,775  |   |   |   | 5,727 |   |   |   | 71 |   |
| Unrealized loss on financial derivative instruments                                                                           |   |                            | 12,364 |   |   |   | 38,018 |   |   |   | (67 | ) |
| Depreciation and accretion                                                                                                    |   |                            | 12,112 |   |   |   | 24,761 |   |   |   | (51 | ) |
| Unrealized foreign exchange loss and other                                                                                    |   |                            | 1,240  |   |   |   | 459 |   |   |   | 170 |   |
| Non-cash unit based compensation expense (recovery)                                                                      |   |                            | 4,567  |   |   |   | 3,947 |   |   |   | 16 |   |
| Adjusted EBITDA                                                                                                               |   | $                               | 84,390 |   |   | $ | 57,182 |   |   |   | 48 |   |
|                                                                                                                          |   |                            |   |   |   |   |   |   |   |   |   |   |
| Adjusted for:                                                                                                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Strategic review and restructuring costs                                                                                      |   | $                               | 1,869  |   |   | $ | 1,579 |   |   |   | 18 |   |
| Adjusted EBITDA excluding buyout of financial derivative   instruments and strategic review and restructuring costs |   | $                               | 86,259 |   |   | $ | 58,761 |   |   |   | 47 |   |

| Reconciliation of funds flow from continuing operations |   | Three months ended December 31, |    |
|---------------------------------------------------------|--------|---------------------------------|---------|
| ($ 000s)                                                |   | 2010                            |    |   | 2009 |   |   | % Change |   |
|                                                    |   |                            |    |   |   |   |   |   |   |
| Cash provided by operating activities                   |   | $                               | 127,031 |   |   | $ | 92,692 |   |   |   | 37 |   |
| Change in non-cash operating working capital            |   |                            | (54,848 | ) |   |   | (15,697 | ) |   |   | 249 |   |
| Site restoration expenditures - discontinued operations |   |                            | -       |   |   |   | (655 | ) |   |   | (100 | ) |
| Funds flow from operations                              |   |                            | 72,183  |   |   |   | 76,340 |   |   |   | (5 | ) |
| Funds flow from discontinued operations                 |   |                            | -       |   |   |   | (25,150 | ) |   |   | (100 | ) |
| Strategic review and restructuring costs                |   |                            | 1,869   |   |   |   | 1,579 |   |   |   | 18 |   |
| Adjusted funds flow from continuing operations          |   | $                               | 74,052  |   |   | $ | 52,769 |   |   |   | 40 |   |

----

| Midstream business reference prices                                                                                                                                                                        |   | Three months ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                                                                                                                                       |   | 2010                            |   |   | 2009 |   |   | % Change |   |
|                                                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |
| WTI crude oil (US$ per barrel)                                                                                                                                                                             |   | $                               | 85.17  |   |   | $ | 76.19 |   |   |   | 12 |   |
| Exchange rate (from US$ to Cdn$)                                                                                                                                                                           |   |                            | 1.01   |   |   |   | 1.06 |   |   |   | (5 | ) |
| WTI crude oil expressed in Cdn$ per barrel                                                                                                                                                                 |   | $                               | 86.26  |   |   | $ | 80.48 |   |   |   | 7 |   |
|                                                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |
| AECO natural gas monthly index (Cdn$ per gj)                                                                                                                                                               |   | $                               | 3.39   |   |   | $ | 4.01 |   |   |   | (15 | ) |
|                                                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |
| Frac Spread Ratio (1)                                                                                                                                                                                      |   |                            | 25.4   |   |   |   | 20.1 |   |   |   | 26 |   |
|                                                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |
| Mont Belvieu Propane (US$ per US gallon)                                                                                                                                                                   |   | $                               | 1.26   |   |   | $ | 1.09 |   |   |   | 16 |   |
| Mont Belvieu Propane expressed as a percentage of WTI                                                                                                                                                      |   |                            | 62     | % |   |   | 60 | % |   |   | 3 |   |
|                                                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |
| Market Frac Spread in Cdn$ per barrel (2)                                                                                                                                                                  |   | $                               | 46.25  |   |   | $ | 37.51 |   |   |   | 23 |   |
|                                                                                                                                                                                                       |   |
| (1) Frac spread ratio is the ratio of WTI expressed in Canadian dollars per barrel to the AECO monthly index (Cdn$ per gj).                                                                                |   |
| (2) Market frac spread is determined using average spot prices at Mont Belvieu, weighted based on 65% propane, 25% butane, and 10% condensate, and the AECO monthly index price for natural gas. |   |

----

|                                                                                                                                                                                         | Three months ended December 31,       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------|
| (bpd)                                                                                                                                                                                        |                                  | 2010   |   |   | 2009 |   |   | % Change |   |
|                                                                                                                                                                                         |                                  |   |   |   |   |   |   |   |   |
| Empress East NGL sales volumes                                                                                                                                                               |                                  |   | 48,955 |   |   |   | 42,967 |   |   |   | 14 |   |
| Redwater West NGL sales volumes                                                                                                                                                              |                                  |   | 72,672 |   |   |   | 68,945 |   |   |   | 5 |   |
| Provident Midstream NGL sales volumes                                                                                                                                                        |                                  |   | 121,627 |   |   |   | 111,912 |   |   |   | 9 |   |
|                                                                                                                                                                                         |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                         |  Three months ended December 31, |   |
| ($ 000s)                                                                                                                                                                                     |                                  |   | 2010 |   |   |   | 2009 | (1) |   | % Change |   |
|                                                                                                                                                                                         |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Empress East margin                                                                                                                                                                          |                                  | $      | 35,369 |   |   | $ | 30,122 |   |   |   | 17 |   |
| Redwater West margin                                                                                                                                                                         |                                  |   | 59,595 |   |   |   | 47,918 |   |   |   | 24 |   |
| Commercial Services margin                                                                                                                                                                   |                                  |   | 16,428 |   |   |   | 18,596 |   |   |   | (12 | ) |
| Gross operating margin                                                                                                                                                                       |                                  |   | 111,392 |   |   |   | 96,636 |   |   |   | 15 |   |
| Realized loss on financial derivative instruments                                                                                                                                            |                                  |   | (16,406 | ) |   |   | (28,244 | ) |   |   | (42 | ) |
| Cash general and administrative expenses                                                                                                                                                     |                                  |   | (7,284 | ) |   |   | (8,540 | ) |   |   | (15 | ) |
| Gain on sale of assets, realized foreign exchange and other                                                                                                                                  |                                  |   | (1,443 | ) |   |   | (1,091 | ) |   |   | 32 |   |
| Adjusted EBITDA excluding buyout of financial derivative    instruments and strategic review and restructuring costs                                                          |                                  |   | 86,259 |   |   |   | 58,761 |   |   |   | 47 |   |
| Strategic review and restructuring costs                                                                                                                                                     |                                  |   | (1,869 | ) |   |   | (1,579 | ) |   |   | 18 |   |
| Adjusted EBITDA                                                                                                                                                                              |                                  | $      | 84,390 |   |   | $ | 57,182 |   |   |   | 48 |   |
| (1) Certain transportation expenses and product margins relating to the prior year have been reclassified from Redwater West to Empress East to conform with current year presentation. |                                  |

----

----

| Consolidated                                                     |   | Three months ended December 31, |   |   |   |    |
|------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------|---------|
| ($ 000s, except per unit data)                                   |   | 2010                            |   |   | 2009   |    |   | % Change |   |
|                                                             |   |                            |   |   |   |    |   |   |   |
| Net income (loss) from continuing operations                     |   | $                               | 55,012 |   |   | $       | (4,908 | ) |   |   | - |   |
| Net income (loss) from discontinued operations                   |   |                            | 6,303  |   |   |    | (15,430 | ) |   |   | - |   |
| Net income (loss)                                                |   | $                          | 61,315 |   |   | $  | (20,338 | ) |   |   | - |   |
| Per weighted average unit                                        |   |                            |   |   |   |    |   |   |   |   |   |   |
|      – basic (1)                  |   | $                               | 0.23   |   |   | $       | (0.08 | ) |   |   | - |   |
|      – diluted (2)                |   | $                               | 0.22   |   |   | $       | (0.08 | ) |   |   | - |   |
| (1) Based on weighted average number of trust units outstanding. |   |
| (2) Includes the dilutive impact of convertible debentures.      |   |

| Continuing operations      |   | Three months ended December 31, |    |
|----------------------------|--------|---------------------------------|---------|
| ($ 000s)                   |   | 2010                            |    |   | 2009 |   |   | % Change |   |
|                       |   |                            |    |   |   |   |   |   |   |
| Current tax expense        |   | $                               | 4,138   |   |   | $ | 1,188 |   |   |   | 248 |   |
| Future income tax recovery |   |                            | (14,818 | ) |   |   | (12,010 | ) |   |   | 23 |   |
|                       |   | $                               | (10,680 | ) |   | $ | (10,822 | ) |   |   | (1 | ) |

----

| Continuing operations                                   |   | Three months ended December 31, |   |
|---------------------------------------------------------|--------|---------------------------------|--------|
| ($ 000s, except as noted)                               |   | 2010                            |   |   | 2009 |   |   | % Change |   |
|                                                    |   |                            |   |   |   |   |   |   |   |
| Interest on bank debt                                   |   | $                               | 2,631  |   |   | $ | 1,567 |   |   |   | 68 |   |
| Interest on convertible debentures                      |   |                            | 5,451  |   |   |   | 4,046 |   |   |   | 35 |   |
| Discontinued operations portion                         |   |                            | -      |   |   |   | (977 | ) |   |   | (100 | ) |
| Total cash interest                                     |   | $                               | 8,082  |   |   | $ | 4,636 |   |   |   | 74 |   |
|                                                    |   |                            |   |   |   |   |   |   |   |   |   |   |
| Weighted average interest rate on all long-term debt    |   |                            | 5.5    | % |   |   | 3.6 | % |   |   | 53 |   |
| Debenture accretion and other non-cash interest expense |   |                            | 1,693  |   |   |   | 1,091 |   |   |   | 55 |   |
| Total interest expense                                  |   | $                               | 9,775  |   |   | $ | 5,727 |   |   |   | 71 |   |

| Midstream                                                                                                                         |          |                                                      |                                 |
|-----------------------------------------------------------------------------------------------------------------------------------|---------------|-----------------------------------------------------------|--------------------------------------|
|                                                                                                                              |          | Volume                                                    |                                 |   |
| Year                                                                                                                              | Product       | (Buy)/Sell                                                | Terms                                | Effective Period |
|                                                                                                                              |          |                                                      |                                 |   |
| 2011                                                                                                                              | Crude Oil     | 652Bpd                                                    | US $87.57 per bbl (3) (5)            | July 1 - September 30 |
|                                                                                                                              |          | 815Bpd                                                    | US $87.13 per bbl (3) (6)            | October 1 - December 31 |
|                                                                                                                              | Natural Gas   | (27,418)Gjpd                                              | Cdn $3.61 per gj (2)                 | July 1 - December 31 |
|                                                                                                                              | Propane       | 3,368Bpd                                                  | US $1.1196 per gallon (4) (5)        | February 1 - September 30 |
|                                                                                                                              | Electricity   | (10)MW/hpd                                                | Cdn $45.45 per MW/h (7)              | January 1 - December 31 |
| 2012                                                                                                                              | Crude Oil     | 815Bpd                                                    | US $87.60 per bbl (3) (6)            | January 1 - March 31 |
|                                                                                                                              |          |                                                      |                                 |   |
| Corporate                                                                                                                         |          |                                                      |                                 |
|                                                                                                                              |          | Volume                                                    |                                 |   |
| Year                                                                                                                              | Product       | (Buy)/Sell                                                | Terms                                | Effective Period |
|                                                                                                                              |          |                                                      |                                 |   |
|                                                                                                                              | Interest Rate |  $    180,000,000Notional (Cdn$) | Pay Average Fixed rate of 1.877% (8) | June 1 2011 - June 30 2013 |
|                                                                                                                              |          |                                                      |                                 |   |
| (1)   The above table represents a number of transactions entered into over the fourth quarter 2010.               |
| (2)   Natural gas contracts are settled against AECO monthly index.                                                |
| (3)   Crude Oil contracts are settled against NYMEX WTI calendar average.                                          |
| (4)   Propane contracts are settled against Belvieu C3 TET.                                                        |
| (5)   Midstream Frac Spread contracts.                                                                             |
| (6)   Midstream margin contracts.                                                                                  |
| (7)   Electricity contracts are settled against the hourly price of electricity as published by the AESO in $/MWh. |
| (8)   Interest rate forward contract settles monthly against 1M CAD BA CDOR interest rate.                              |

----

|                                                                                                                                                                                                                    |   | Three months ended December 31, |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|
| Realized loss on financial derivative instruments                                                                                                                                                                       |   | 2010                            |    |   | 2009 |   |
| ($ 000s except volumes)                                                                                                                                                                                                 |   | Volume (1)                      |    |   | Volume (1) |   |
|                                                                                                                                                                                                                    |   |                            |    |   |   |   |   |   |   |   |   |   |
|   Crude oil                                                                                                                                                                                                   |   | $                               | (2,434  | ) |   |   | 0.5 |   |   | $ | (5,630 | ) |   |   | 1.0 |   |
|   Natural gas                                                                                                                                                                                                 |   |                            | (4,721  | ) |   |   | 6.3 |   |   |   | (21,333 | ) |   |   | 5.4 |   |
|   NGL's (includes propane, butane)                                                                                                                                                                            |   |                            | (10,272 | ) |   |   | 1.4 |   |   |   | (1,729 | ) |   |   | 0.4 |   |
|   Foreign exchange                                                                                                                                                                                            |   |                            | 1,135   |   |   |   |   |   |   |   | 1,045 |   |   |   |   |   |
|   Electricity                                                                                                                                                                                                 |   |                            | (79     | ) |   |   |   |   |   |   | (188 | ) |   |   |   |   |
|   Interest rate                                                                                                                                                                                               |   |                            | (35     | ) |   |   |   |   |   |   | (409 | ) |   |   |   |   |
| Realized loss on financial derivative instruments                                                                                                                                                                       |   | $                               | (16,406 | ) |   |   |   |   |   | $ | (28,244 | ) |   |   |   |   |
| (1) The above table represents aggregate net volumes that were bought/sold over the periods. Crude oil and NGL volumes are listed in millions of barrels and natural gas is listed in millions of gigajoules. |   |

----

|                                                                                                                                                            | Year ended December 31, |   |    |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------|---------|--------|--------|
| ($ 000s, except per unit data)                                                                                                                                  |                    | 2010   |    |   | 2009   |   |   | % Change |   |
| Funds flow from continuing operations and distributions                                                                                                         |                    |   |    |   |   |   |   |   |   |
| Funds flow from continuing operations                                                                                                                           |                    | $      | (7,985  | )      |   | $ | 147,854 |   |   |   | - |   |
| Adjusted funds flow from continuing operations(1)                                                                                                               |                    | $      | 204,856 |   |   | $ | 157,109 |   |   |   | 30 |   |
|      Per weighted average unit                                                                                                         |                    |   |    |   |   |   |   |   |   |   |   |   |
|         - basic                                                                                                         |                    | $      | 0.77    |   |   | $ | 0.60 |   |   |   | 28 |   |
|         - diluted (2)                                                                                                   |                    | $      | 0.73    |   |   | $ | 0.60 |   |   |   | 22 |   |
| Declared distributions                                                                                                                                          |                    | $      | 191,639 |   |   | $ | 196,217 |   |   |   | (2 | ) |
|      Per unit                                                                                                                          |                    | $      | 0.72    |   |   | $ | 0.75 |   |   |   | (4 | ) |
| Percent of adjusted funds flow from continuing operations paid out as declared distributions                                                               |                    |   | 94      | %      |   |   | 125 | % |   |   | (25 | ) |
| Percent of adjusted funds flow from continuing operations, net of sustaining capital spending, paid out as declared distributions                     |                    |   | 96      | %      |   |   | 127 | % |   |   | (24 | ) |
| (1) Adjusted funds flow from operations excludes realized loss on buyout of financial derivative instruments and strategic review and restructuring costs. |                    |
| (2) Includes dilutive impact of convertible debentures.                                                                                                         |                    |

----

| Continuing operations                                                                                                         |   | Year ended December 31, |     |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
| ($ 000s)                                                                                                                      |   | 2010                    |     |   | 2009 |   |   | % Change |   |
|                                                                                                                          |   |                    |     |   |   |   |   |   |   |
| Income (loss) before taxes from continuing operations                                                                         |   | $                       | 64,842   |   |   | $ | (30,019 | ) |   |   | - |   |
| Adjusted for:                                                                                                                 |   |                    |     |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                              |   |                    | 29,723   |   |   |   | 24,810 |   |   |   | 20 |   |
| Unrealized gain offsetting buyout of financial   derivative instruments                                             |   |                    | (177,723 | ) |   |   | - |   |   |   | - |   |
| Unrealized loss on financial derivative   instruments                                                               |   |                    | 52,599   |   |   |   | 111,610 |   |   |   | (53 | ) |
| Depreciation and accretion                                                                                                    |   |                    | 45,718   |   |   |   | 53,164 |   |   |   | (14 | ) |
| Unrealized foreign exchange (gain) loss and other                                                                             |   |                    | (3,786   | ) |   |   | 4,095 |   |   |   | - |   |
| Non-cash unit based compensation expense (recovery)                                                                      |   |                    | 1,280    |   |   |   | 4,569 |   |   |   | (72 | ) |
| Adjusted EBITDA                                                                                                               |   | $                       | 12,653   |   |   | $ | 168,229 |   |   |   | (92 | ) |
|                                                                                                                          |   |                    |     |   |   |   |   |   |   |   |   |   |
| Adjusted for:                                                                                                                 |   |                    |     |   |   |   |   |   |   |   |   |   |
| Realized loss on buyout of financial derivative instruments                                                                   |   | $                       | 199,059  |   |   | $ | - |   |   |   | - |   |
| Strategic review and restructuring costs                                                                                      |   | $                       | 13,782   |   |   | $ | 9,255 |   |   |   | 49 |   |
| Adjusted EBITDA excluding buyout of financial derivative   instruments and strategic review and restructuring costs |   | $                       | 225,494  |   |   | $ | 177,484 |   |   |   | 27 |   |

| Reconciliation of funds flow from continuing operations                        |   | Year ended December 31, |    |
|--------------------------------------------------------------------------------|--------|-------------------------|---------|
| ($ 000s)                                                                       |   | 2010                    |    |   | 2009 |   |   | % Change |   |
|                                                                           |   |                    |    |   |   |   |   |   |   |
| Cash (used in) provided by operating activities                                |   | $                       | (39,669 | ) |   | $ | 304,248 |   |   |   | - |   |
| Change in non-cash operating working capital                                   |   |                    | 27,207  |   |   |   | (45,641 | ) |   |   | - |   |
| Site restoration expenditures    - discontinued operations |   |                    | 2,041   |   |   |   | 5,399 |   |   |   | (62 | ) |
| Funds flow (used in) from operations                                           |   |                    | (10,421 | ) |   |   | 264,006 |   |   |   | - |   |
| Funds flow from discontinued operations                                        |   |                    | 2,436   |   |   |   | (116,152 | ) |   |   | - |   |
| Realized loss on buyout of financial derivative instruments                    |   |                    | 199,059 |   |   |   | - |   |   |   | - |   |
| Strategic review and restructuring costs                                       |   |                    | 13,782  |   |   |   | 9,255 |   |   |   | 49 |   |
| Adjusted funds flow from continuing operations                                 |   | $                       | 204,856 |   |   | $ | 157,109 |   |   |   | 30 |   |

----

----

|                                                                                                     |               |   | Distribution Amount |   |
|----------------------------------------------------------------------------------------------------------|--------------------|--------|---------------------|--------|
|                                                                                                     |               |   | (Cdn$)              |   |   | (US$)* |   |
| 2001 Cash Distributions paid as declared    – March 2001 – December 2001 |               | $      | 2.54                |   |   | $ | 1.64 |   |
| 2002 Cash Distributions paid as declared                                                                 |               |   |                | 2.03   |   |   |   | 1.29 |   |
| 2003 Cash Distributions paid as declared                                                                 |               |   |                | 2.06   |   |   |   | 1.47 |   |
| 2004 Cash Distributions paid as declared                                                                 |               |   |                | 1.44   |   |   |   | 1.10 |   |
| 2005 Cash Distributions paid as declared                                                                 |               |   |                | 1.44   |   |   |   | 1.20 |   |
| 2006 Cash Distributions paid as declared                                                                 |               |   |                | 1.44   |   |   |   | 1.26 |   |
| 2007 Cash Distributions paid as declared                                                                 |               |   |                | 1.44   |   |   |   | 1.35 |   |
| 2008 Cash Distributions paid as declared                                                                 |               |   |                | 1.38   |   |   |   | 1.29 |   |
| 2009 Cash Distributions paid as declared                                                                 |               |   |                | 0.75   |   |   |   | 0.67 |   |
| 2010                                                                                                     |               |   |                |   |   |   |   |   |   |
| Record Date                                                                                              | Payment Date       |   |                |   |   |   |   |   |   |
| January 22, 2010                                                                                         | February 12, 2010  |   |                | 0.06   |   |   |   | 0.06 |   |
| February 22, 2010                                                                                        | March 15, 2010     |   |                | 0.06   |   |   |   | 0.06 |   |
| March 22, 2010                                                                                           | April 15, 2010     |   |                | 0.06   |   |   |   | 0.06 |   |
| April 22, 2010                                                                                           | May 14, 2010       |   |                | 0.06   |   |   |   | 0.06 |   |
| May 27, 2010                                                                                             | June 15,2010       |   |                | 0.06   |   |   |   | 0.06 |   |
| June 22, 2010                                                                                            | July 15, 2010      |   |                | 0.06   |   |   |   | 0.06 |   |
| July 26, 2010                                                                                            | August 13, 2010    |   |                | 0.06   |   |   |   | 0.06 |   |
| August 23, 2010                                                                                          | September 15, 2010 |   |                | 0.06   |   |   |   | 0.06 |   |
| September 24, 2010                                                                                       | October 15, 2010   |   |                | 0.06   |   |   |   | 0.06 |   |
| October 22, 2010                                                                                         | November 15, 2010  |   |                | 0.06   |   |   |   | 0.06 |   |
| November 22, 2010                                                                                        | December 15, 2010  |   |                | 0.06   |   |   |   | 0.06 |   |
| December 22, 2010                                                                                        | January 14, 2011   |   |                | 0.06   |   |   |   | 0.06 |   |
| Inception to December 31, 2010 – Cash Distributions paid as declared                               |               | $      | 15.24               |   |   | $ | 11.99 |   |
|                                                                                                     |               |   |                |   |   |   |   |   |   |
| Capital Distribution - June 29, 2010                                                                     |               |   |                | 1.16   |   |   |   | 1.10 |   |
| Total inception to December 31, 2010 Cash Distributions and Capital Distribution                         |               | $      | 16.40               |   |   | $ | 13.09 |   |
| * Exchange rate based on the Bank of Canada noon rate on the payment date.                               |               |   |                |   |   |   |   |   |

----

| ·   | Approximately 2.0 Bcfd in extraction capacity at Empress, Alberta. This is the combination of 67.5 percent ownership of the 1.2 Bcfd capacity Provident Empress NGL extraction plant, 33.0 percent ownership in the 2.7 Bcfd capacity BP Empress 1 Plant, 12.4 percent ownership in the 1.1 Bcfd capacity ATCO Plant and 8.3 percent ownership in the 2.4 Bcfd capacity Spectra Plant. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 100 percent ownership of a 55,000 bpd debutanizer at Empress, Alberta. |
|--------------------|------------------------------------------------------------------------|

| ·   | 50 percent ownership in the 130,000 bpd Kerrobert pipeline and 2.5 mmbbl underground storage facility near Kerrobert, Saskatchewan which facilitates injection of NGLs into the Enbridge pipeline system. Along the Enbridge pipeline system in Superior, Wisconsin, Provident holds an 18.3 percent ownership of a 300,000 barrel storage staging facility and 18.3 percent ownership of a 10,000 bpd depropanizer. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In Sarnia, Ontario, 16.5 percent ownership of an approximately 150,000 bpd fractionator, 1.7 mmbbl of raw product storage capacity, and 18.0 percent of 5.7 mmbbl of finished product storage and a rail, truck and pipeline terminalling facility. An additional 500,000 bbls of specification product storage is also leased in the Sarnia area. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 100 percent ownership of the Provident Corunna storage facility.  The 1,000 acre site has an active cavern storage capacity of 12.1 million barrels, consisting of 5.0 million barrels of hydrocarbon storage and 7.1 million barrels currently used for brine storage. The facility also includes 13 pipeline connections and a small rail offloading facility. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A propane distribution terminal at Lynchburg, Virginia. |
|--------------------|---------------------------------------------------------|

| ·   | A rail car fleet of approximately 300 rail cars under long-term lease agreement. |
|--------------------|----------------------------------------------------------------------------------|

| ·   | 100 percent ownership of the Redwater NGL fractionation facility, incorporating a 65,000 bpd fractionation, storage and transportation facility that includes 12 pipeline receipt and delivery points, railcar loading facilities with direct access to CN rail and indirect access to CP rail, two propane truck loading facilities, seven million gross barrels of salt cavern storage, and a 75,000 bpd condensate rail offloading facility with a 500 railcar storage yard. The Redwater facility is the only facility in western Canada that can fractionate a high-sulphur ethane-plus mix. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Approximately 7,000 bpd of leased fractionation capacity at other facilities. |
|--------------------|-------------------------------------------------------------------------------|

| ·   | 43.3 percent direct ownership and 100 percent control of all products from the 38,500 bpd Younger NGL extraction plant located at Taylor in northeastern British Columbia. The Younger plant supplies local markets as well as Provident’s Redwater fractionation facility near Edmonton. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 100 percent ownership of the 565 kilometer proprietary Liquids Gathering System (“LGS”) that runs along the Alberta-British Columbia border providing access to a highly active basin for liquids-rich natural gas exploration and exploitation. Provident also has long-term shipping rights on the Pembina pipeline system that extends the product delivery transportation network through to the Redwater fractionation facility. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | exploration and exploitation. Provident also has long-term shipping rights on the Pembina pipeline system that extends the product delivery transportation network through to the Redwater fractionation facility. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A rail car fleet of approximately 700 rail cars under long-term lease agreement. |
|--------------------|----------------------------------------------------------------------------------|

| ·   | A long-term purchase agreement for NGL mix at the Younger NGL extraction plant. |
|--------------------|---------------------------------------------------------------------------------|

----

| ·   | A significant portion of the available propane, butane and condensate (“propane-plus”) fractionation capacity at the Redwater fractionation facility is contracted through a long term fee-for-service arrangement with third parties. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The ethane produced from Provident’s facilities at Empress and Redwater is largely sold under long-term contracts. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | A significant portion of Provident’s 75,000 bpd capacity of condensate rail off-loading is under long-term contracts with two major energy producers. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The majority of the condensate storage capacity of 500,000 barrels at Redwater is sold under long-term contracts to various third parties, a number of which are major energy producers, with terms averaging from two to five years. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A long-term significant propane sales contract at Redwater. |
|--------------------|-------------------------------------------------------------|

| ·   | A long-term contract on a cost of service basis for the majority of its 50,000 bbl/d Empress debutanizer facility with a major energy producer. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Midstream business reference prices                                                                                                                                                                        |   | Year ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                                                                                       |   | 2010                    |   |   | 2009 |   |   | % Change |   |
|                                                                                                                                                                                                       |   |                    |   |   |   |   |   |   |   |
| WTI crude oil (US$ per barrel)                                                                                                                                                                             |   | $                       | 79.53  |   |   | $ | 61.80 |   |   |   | 29 |   |
| Exchange rate (from US$ to Cdn$)                                                                                                                                                                           |   |                    | 1.03   |   |   |   | 1.14 |   |   |   | (10 | ) |
| WTI crude oil expressed in Cdn$ per barrel                                                                                                                                                                 |   | $                       | 81.92  |   |   | $ | 70.54 |   |   |   | 16 |   |
|                                                                                                                                                                                                       |   |                    |   |   |   |   |   |   |   |   |   |   |
| AECO natural gas monthly index (Cdn$ per gj)                                                                                                                                                               |   | $                       | 3.93   |   |   | $ | 3.92 |   |   |   | - |   |
|                                                                                                                                                                                                       |   |                    |   |   |   |   |   |   |   |   |   |   |
| Frac Spread Ratio (1)                                                                                                                                                                                      |   |                    | 20.9   |   |   |   | 18.0 |   |   |   | 16 |   |
|                                                                                                                                                                                                       |   |                    |   |   |   |   |   |   |   |   |   |   |
| Mont Belvieu Propane (US$ per US gallon)                                                                                                                                                                   |   | $                       | 1.17   |   |   | $ | 0.84 |   |   |   | 39 |   |
| Mont Belvieu Propane expressed as a percentage of WTI                                                                                                                                                      |   |                    | 62     | % |   |   | 57 | % |   |   | 9 |   |
|                                                                                                                                                                                                       |   |                    |   |   |   |   |   |   |   |   |   |   |
| Market Frac Spread in Cdn$ per barrel (2)                                                                                                                                                                  |   | $                       | 40.30  |   |   | $ | 28.61 |   |   |   | 41 |   |
|                                                                                                                                                                                                       |   |
| (1) Frac spread ratio is the ratio of WTI expressed in Canadian dollars per barrel to the AECO monthly index (Cdn$ per gj).                                                                                |   |
| (2) Market frac spread is determined using average spot prices at Mont Belvieu, weighted based on 65% propane, 25% butane, and 10% condensate, and the AECO monthly index price for natural gas. |   |

----

|                            |   | Year ended December 31, |    |
|---------------------------------|--------|-------------------------|---------|
| (bpd)                           |   | 2010                    |    |   | 2009 |   |   | % Change |   |
|                            |   |                    |    |   |   |   |   |   |   |
| Empress East NGL sales volumes  |   |                    | 43,069  |   |   |   | 45,589 |   |   |   | (6 | ) |
| Redwater West NGL sales volumes |   |                    | 63,006  |   |   |   | 67,939 |   |   |   | (7 | ) |
| Total NGL sales volumes         |   |                    | 106,075 |   |   |   | 113,528 |   |   |   | (7 | ) |

----

|                                                                                                                          |   | Year ended December 31, |     |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|----------|
| ($ 000s)                                                                                                                      |   | 2010                    |     |   | 2009(1) |   |   | % Change |   |
| Empress East Margin                                                                                                           |   | $                       | 88,296   |   |   | $ | 83,244 |   |   |   | 6 |   |
| Redwater West Margin                                                                                                          |   |                    | 159,611  |   |   |   | 139,793 |   |   |   | 14 |   |
| Commercial Services Margin                                                                                                    |   |                    | 63,803   |   |   |   | 63,746 |   |   |   | - |   |
| Gross operating margin                                                                                                        |   |                    | 311,710  |   |   |   | 286,783 |   |   |   | 9 |   |
| Realized loss on financial derivative instruments                                                                             |   |                    | (50,865  | ) |   |   | (66,743 | ) |   |   | (24 | ) |
| Cash general and administrative expenses                                                                                      |   |                    | (35,391  | ) |   |   | (40,754 | ) |   |   | (13 | ) |
| Gain on sale of assets, realized foreign exchange and other                                                                   |   |                    | 40       |   |   |   | (1,802 | ) |   |   | - |   |
| Adjusted EBITDA excluding buyout of financial derivative   instruments and strategic review and restructuring costs |   |                    | 225,494  |   |   |   | 177,484 |   |   |   | 27 |   |
| Realized loss on buyout of financial derivative instruments                                                                   |   |                    | (199,059 | ) |   |   | - |   |   |   | - |   |
| Strategic review and restructuring expenses                                                                                   |   |                    | (13,782  | ) |   |   | (9,255 | ) |   |   | 49 |   |
| Adjusted EBITDA                                                                                                               |   | $                       | 12,653   |   |   | $ | 168,229 |   |   |   | (92 | ) |

| (1)   | Certain transportation expenses and product margins relating to the prior year have been reclassified from Redwater West to Empress East to conform with current year presentation. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Consolidated                          |   | Year ended December 31, |     |
|---------------------------------------|--------|-------------------------|----------|
| ($ 000s, except per unit data)        |   | 2010                    |     |   | 2009 |   |   | % Change |   |
| Net income from continuing operations |   | $                       | 103,492  |   |   | $ | 5,168 |   |   |   | 1,903 |   |
| Net loss from discontinued operations |   |                    | (438,587 | ) |   |   | (94,188 | ) |   |   | 366 |   |
| Net loss                              |   | $                       | (335,095 | ) |   | $ | (89,020 | ) |   |   | 276 |   |
| Per weighted average unit             |   |                    |     |   |   |   |   |   |   |   |   |   |
| – basic (1)                     |   | $                       | (1.26    | ) |   | $ | (0.34 | ) |   |   | 271 |   |
| – diluted (2)                   |   | $                       | (1.18    | ) |   | $ | (0.34 | ) |   |   | 247 |   |

| (1)   | Based on weighted average number of trust units outstanding. |
|-----------------|--------------------------------------------------------------|

| (2)   | Based on weighted average number of trust units outstanding including the dilutive impact of the convertible debentures. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

----

| Continuing operations          |   | Year ended December 31, |    |
|--------------------------------|--------|-------------------------|---------|
| ($000s)                        |   | 2010                    |    |   | 2009 |   |   | % Change |   |
|                           |   |                    |    |   |   |   |   |   |   |   |   |   |
| Current tax (recovery) expense |   | $                       | (6,956  | ) |   | $ | 225 |   |   |   | - |   |
| Future income tax recovery     |   |                    | (31,694 | ) |   |   | (35,412 | ) |   |   | (10 | ) |
|                           |   | $                       | (38,650 | ) |   | $ | (35,187 | ) |   |   | 10 |   |

| Interest expense                                        |   |                    |   |   |   |   |   |     |   |
|---------------------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|----------|--------|
| Continuing operations                                   |   | Year ended December 31, |   |
| ($ 000s, except as noted)                               |   | 2010                    |   |   | 2009   |   |   | % Change |   |
|                                                    |   |                    |   |   |   |   |   |     |   |   |   |   |
| Interest on bank debt                                   |   | $                       | 9,316  |   |   | $      | 9,634  |     |   |   | (3 | ) |
| Interest on convertible debentures                      |   |                    | 17,538 |   |   |   | 17,355 |     |   |   | 1 |   |
| Discontinued operations portion                         |   |                    | (2,501 | )      |   |   | (6,839 | )        |   |   | (63 | ) |
| Total cash interest                                     |   | $                       | 24,353 |   |   | $      | 20,150 |     |   |   | 21 |   |
|                                                    |   |                    |   |   |   |   |   |     |   |   |   |   |
| Weighted average interest rate on all long-term debt    |   |                    | 4.8    | %      |   |   | 3.6    | %        |   |   | 33 |   |
| Debenture accretion and other non-cash interest expense |   |                    | 5,370  |   |   |   | 4,828  |     |   |   | 11 |   |
| Discontinued operations portion                         |   |                    | -      |   |   |   | (168   | )        |   |   | (100 | ) |
| Total interest expense                                  |   | $                       | 29,723 |   |   | $      | 24,810 |     |   |   | 20 |   |

----

----

|                                              |   | Year ended December 31, |    |
|---------------------------------------------------|--------|-------------------------|---------|
| Realized loss on financial derivative instruments |   | 2010                    |    |   | 2009 |   |
| ($ 000s except volumes)                           |   |                    |    |   | Volume (1) |   |   |   |   |   | Volume (1) |   |
|                                              |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude Oil                                         |   |                    | (14,848 | ) |   |   | 2.2 |   |   |   | 29,007 |   |   |   | 4.1 |   |
| Natural gas                                       |   |                    | (29,849 | ) |   |   | 16.9 |   |   |   | (95,188 | ) |   |   | 23.0 |   |
| NGL's (includes propane, butane)                  |   |                    | (9,454  | ) |   |   | 1.8 |   |   |   | 5,072 |   |   |   | 0.8 |   |
| Foreign Exchange                                  |   |                    | 3,766   |   |   |   |   |   |   |   | (3,505 | ) |   |   |   |   |
| Electricity                                       |   |                    | 367     |   |   |   |   |   |   |   | (1,276 | ) |   |   |   |   |
| Interest Rate                                     |   |                    | (847    | ) |   |   |   |   |   |   | (853 | ) |   |   |   |   |
| Realized loss on financial derivative instruments |   | $                       | (50,865 | ) |   |   |   |   |   | $ | (66,743 | ) |   |   |   |   |

| (1) | The above table represents aggregate net volumes that were bought/sold over the periods. Crude oil and NGL volumes are listed in millions of barrels and natural gas is listed in millions of gigajoules. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   | As at December 31, |   |
|----------------------------------|--------|--------------------|--------|
| ($ 000s)                         |   | 2010               |   |   | 2009 |   |
|                             |   |               |   |   |   |   |   |   |
| Provident Upstream               |   | $                  | -      |   |   | $ | 2,438 |   |
|                             |   |               |   |   |   |   |   |   |
| Provident Midstream              |   |               |   |   |   |   |   |   |
| Crude oil                        |   |               | 28,313 |   |   |   | 103,022 |   |
| Natural gas                      |   |               | 19,102 |   |   |   | 79,847 |   |
| NGL's (includes propane, butane) |   |               | 10,363 |   |   |   | (330 | ) |
| Foreign exchange                 |   |               | (28    | ) |   |   | (623 | ) |
| Electricity                      |   |               | (421   | ) |   |   | (26 | ) |
| Interest rate                    |   |               | (366   | ) |   |   | 202 |   |
| Total                            |   | $                  | 56,963 |   |   | $ | 184,530 |   |

----

| Consolidated                                                         |   |              |      |   |              |   |      |     |   |
|----------------------------------------------------------------------|--------|-------------------|-----------|--------|-------------------|--------|-----------|----------|--------|
| ($ 000s)                                                             |   | December 31, 2010 |      |   | December 31, 2009 |   |      | % Change |   |
|                                                                 |   |              |      |   |              |   |      |     |   |   |   |   |
| Long-term debt - revolving term credit facility                      |   | $                 | 72,882    |   |              | $      | 264,776   |     |   |   | (72 | ) |
| Long-term debt - convertible debentures (including current portion)  |   |              | 400,872   |   |              |   | 240,486   |     |   |   | 67 |   |
| Working capital surplus (excluding financial derivative instruments) |   |              | (56,848   | )      |              |   | (31,152   | )        |   |   | 82 |   |
| Net debt                                                             |   | $                 | 416,906   |   |              | $      | 474,110   |     |   |   | (12 | ) |
|                                                                 |   |              |      |   |              |   |      |     |   |   |   |   |
| Unitholders' equity (at book value)                                  |   |              | 587,218   |   |              |   | 1,381,399 |     |   |   | (57 | ) |
| Total capitalization at book value                                   |   | $                 | 1,004,124 |   |              | $      | 1,855,509 |     |   |   | (46 | ) |
|                                                                 |   |              |      |   |              |   |      |     |   |   |   |   |
| Total net debt as a percentage of total book value capitalization    |   |              | 42        | %      |              |   | 26        | %        |   |   | 62 |   |

----

| Consolidated                                            |   | Payment due by period |    |
|---------------------------------------------------------|--------|-----------------------|---------|
|                                                    |   |                  |    |   | Less |   |   |   |   |   |   |   |   | More |   |
|                                                    |   |                  |    |   | than 1 |   |   | 1to 3 |   |   | 3 to 5 |   |   | than 5 |   |
| ($000s)                                                 |   | Total                 |    |   | year |   |   | years |   |   | years |   |   | years |   |
| Long-term debt - revolving term credit facility (1) (3) |   | $                     | 83,557  |   |   | $ | 3,096 |   |   | $ | 80,461 |   |   | $ | - |   |   | $ | - |   |
| Long-term debt - convertible debentures (2) (3)         |   |                  | 504,885 |   |   |   | 169,583 |   |   |   | 123,126 |   |   |   | 19,838 |   |   |   | 192,338 |   |
| Operating lease obligations                             |   |                  | 131,631 |   |   |   | 15,235 |   |   |   | 20,115 |   |   |   | 18,426 |   |   |   | 77,855 |   |
| Total                                                   |   | $                     | 720,073 |   |   | $ | 187,914 |   |   | $ | 223,702 |   |   | $ | 38,264 |   |   | $ | 270,193 |   |

| (1) | The terms of the Canadian credit facility have a revolving three year period expiring on June 28, 2013. |
|-----|---------------------------------------------------------------------------------------------------------|

| (2) | Includes current portion of convertible debentures. |
|-----|-----------------------------------------------------|

| (3) | Includes associated interest and principal payments. |
|-----|------------------------------------------------------|

----

|                                      |   | As at December 31, |     |
|-------------------------------------------|--------|--------------------|----------|
| ($ 000s)                                  |   | 2010               |     |   | 2009 |   |   | Change |   |
| Current Assets                            |   |               |     |   |   |   |   |   |   |
| Cash and cash equivalents                 |   | $                  | 4,400    |   |   | $ | 7,187 |   |   | $ | (2,787 | ) |
| Accounts receivable                       |   |               | 206,631  |   |   |   | 216,786 |   |   |   | (10,155 | ) |
| Petroleum product inventory               |   |               | 83,868   |   |   |   | 37,261 |   |   |   | 46,607 |   |
| Prepaid expenses and other current assets |   |               | 2,539    |   |   |   | 4,803 |   |   |   | (2,264 | ) |
| Financial derivative instruments          |   |               | 487      |   |   |   | 5,314 |   |   |   | (4,827 | ) |
|                                      |   |               |     |   |   |   |   |   |   |   |   |   |
| Current Liabilities                       |   |               |     |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities  |   |               | 227,944  |   |   |   | 221,417 |   |   |   | (6,527 | ) |
| Cash distribution payable                 |   |               | 12,646   |   |   |   | 13,468 |   |   |   | 822 |   |
| Current portion of convertible debentures |   |               | 148,981  |   |   |   | - |   |   |   | (148,981 | ) |
| Financial derivative instruments          |   |               | 37,849   |   |   |   | 86,441 |   |   |   | 48,592 |   |
| Working capital deficit                   |   | $                  | (129,495 | ) |   | $ | (49,975 | ) |   | $ | (79,520 | ) |

----

| Capital related expenditures and funding                                                    |   |   |     |   |                    |   |     |     |   |
|--------------------------------------------------------------------------------------------------|--------|--------|----------|--------|-------------------------|--------|----------|----------|--------|
| Continuing operations                                                                            |   |   |     |   | Year ended December 31, |   |
| ($ 000s)                                                                                         |   | 2010   |     |   | 2009                    |   |     | % Change |   |
|                                                                                             |   |   |     |   |                    |   |     |     |   |
| Capital related expenditures                                                                     |   |   |     |   |                    |   |     |     |   |
| Capital expenditures                                                                             |   | $      | (77,959  | )      |                    | $      | (127,369 | )        |   |   | (39 | ) |
| Site restoration expenditures - discontinued operations                                          |   |   | (2,041   | )      |                    |   | (5,399   | )        |   |   | (62 | ) |
| Buyout of financial derivative instruments                                                       |   |   | (199,059 | )      |                    |   | -        |     |   |   | - |   |
| Acquisitions                                                                                     |   |   | (27,573  | )      |                    |   | (18,833  | )        |   |   | 46 |   |
| Net capital related expenditures                                                                 |   | $      | (306,632 | )      |                    | $      | (151,601 | )        |   |   | 102 |   |
|                                                                                             |   |   |     |   |                    |   |     |     |   |   |   |   |
| Funded by                                                                                        |   |   |     |   |                    |   |     |     |   |   |   |   |
| Funds flow from operations net of declared   distributions to unitholders and DRIP proceeds |   | $      | 29,090   |   |                    | $      | 95,895   |     |   |   | (70 | ) |
| Cash proceeds on sale of assets                                                                  |   |   | 318,910  |   |                    |   | 306,345  |     |   |   | 4 |   |
| Issuance of convertible debentures, net of issue costs                                           |   |   | 164,654  |   |                    |   | -        |     |   |   | - |   |
| Decrease in long-term debt                                                                       |   |   | (192,380 | )      |                    |   | (265,245 | )        |   |   | (27 | ) |
| Change in working capital, including cash                                                        |   |   | (13,642  | )      |                    |   | 14,606   |     |   |   | - |   |
| Net capital related expenditure funding                                                          |   | $      | 306,632  |   |                    | $      | 151,601  |     |   |   | 102 |   |

----

----

| ·   | operating revenues, operating expenses and product purchases; |
|--------------------|---------------------------------------------------------------|

| ·   | depreciation and accretion based on estimated useful lives of assets; |
|--------------------|-----------------------------------------------------------------------|

| ·   | future recoverable value of property, plant and equipment and goodwill (see “Goodwill and intangible assets”) based on estimated future cash flows; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | value of asset retirement obligations based on estimated future costs and timing of expenditures; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | fair values of derivative contracts that are subject to fluctuation depending upon underlying commodity prices and foreign exchange rates (see note 13 of the consolidated financial statements); and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | income taxes based on estimates of future income and tax pool claims (see “Taxes”). |
|--------------------|-------------------------------------------------------------------------------------------------|

----

| (i)   | Recent accounting pronouncements |
|-----------------|----------------------------------|

----

| (ii)   | International Financial Reporting Standards (IFRS) |
|------------------|----------------------------------------------------|

| ·   | Business Combinations – IFRS 1 allows Provident to use the IFRS rules for business combinations on a prospective basis rather than restating all business combinations that occurred prior to transition to IFRS.  The IFRS business combination rules converge with the new CICA Handbook section 1582 that is also effective for Provident on January 1, 2011, however, early adoption is permitted.  Provident will not be recording any adjustments to retrospectively restate any of its business combinations that occurred prior to January 1, 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Property, Plant and Equipment (“PP&E”) – IFRS 1 provides the option to value the Upstream PP&E assets at their deemed cost being the Canadian GAAP net book value assigned to these assets as at the date of transition, January 1, 2010.  This amendment is permissible for entities, such as Provident, who follow the full cost accounting guideline under Canadian GAAP that accumulates all oil and gas assets into one cost centre.  Under IFRS, Provident’s PP&E assets must be divided into smaller cash generating units (CGUs).  The net book value of the Upstream assets on the date of transition has been allocated to the new CGUs on the basis of Provident’s reserve value at that point in time. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Classification of NGL product maintained in pipelines not owned by Provident – Upon transition to IFRS, Provident will reclassify balances associated with NGL product maintained in pipelines not owned by Provident from property, plant and equipment to product inventory.  Management has identified approximately $21 million of assets at January 1, 2010 that meet this criterion.  The additional inventory will flow through the inventory costing calculations with a corresponding impact on cost of goods sold in 2010 that is not expected to be material.  Inventory required for linefill and cavern bottoms maintained in assets owned by Provident will continue to be capitalized in property, plant and equipment. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provision for asset retirement costs – Under IFRS, Provident is required to revalue its entire liability for asset retirement costs at each balance sheet date using a current liability-specific discount rate, which can generally be interpreted to mean the current risk-free rate of interest.  Under Canadian GAAP, these obligations are discounted using a credit-adjusted risk-free rate and once recorded, asset retirement obligations are not adjusted for future changes in discount rates.  It is expected that the provision for asset retirement costs associated with the continuing Midstream operations will increase by approximately $32 million to approximately $51 million upon transition to IFRS to reflect the estimated risk-free rate of interest at that time.  The offset to this increase will be recorded as an increase to property, plant and equipment of approximately $21 million and accumulated deficit of approximately $11 million.  The impact of this change on related accretion expense for 2010 is not expected to be material, however IFRS requires that accretion of these costs be presented as part of financing costs rather than as a component of depreciation and accretion expense, as in Canadian GAAP.  The IFRS income statement will reflect this reclassification. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Impairment of assets – Canadian GAAP generally uses a two-step approach to impairment testing; first comparing asset carrying values with undiscounted future cash flows to determine whether impairment exists, and then measuring impairment by comparing asset carrying values to their fair value, generally calculated using discounted cash flows.  Under Canadian GAAP, Provident includes all Midstream assets in one impairment test and all Upstream assets in a second test. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Equity component of convertible debentures – Under Canadian GAAP, the portion of initial value associated with the conversion feature of a convertible debenture is classified as a separate component of equity. As a consequence of Provident’s status as an income Trust in 2010, IFRS requires the conversion feature of convertible debentures to be classified as a financial derivative instrument on transition and marked-to-market each reporting period in 2010.  Since the conversion feature of the debentures outstanding on January 1, 2010 is sufficiently out-of-the-money, the fair value of this feature was determined to be nil.  As a result, the Canadian GAAP balance of the equity component of convertible debentures at January 1, 2010, amounting to approximately $16 million, as well as approximately $2 million of related balances in contributed surplus, will be reclassified to accumulated deficit on the IFRS opening balance sheet. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Deferred income taxes – the transition adjustment for deferred income taxes on the opening balance sheet is primarily due to changes in the carrying amount of Upstream assets on the opening balance sheet and the corresponding impact on the temporary differences used to determine the deferred income tax balance. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Presentation of Exploration and Evaluation (“E&E”) expenditures separate from PP&E – Upon transition to IFRS, Provident will present all Upstream E&E expenditures as a separate component on the Consolidated Balance Sheet.  This will include the book value for Provident’s land that relates to Upstream undeveloped properties.  Management has identified approximately $25 million of its property, plant and equipment that meets the criteria to be classified as E&E on the opening balance sheet prepared under IFRS as at January 1, 2010.  E&E assets will not be depleted and must be assessed for impairment when indicators suggest the possibility of impairment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Impairment and depletion of Upstream property, plant and equipment – The IFRS impairment test calculation is different than that required under Canadian GAAP for full cost Upstream businesses.  The IFRS tests are performed at a more granular level and generally require the use of higher discount rates.  As a result, Provident expects to recognize an opening impairment of its Upstream assets amounting to |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | approximately $392 million.  The offset to this reduction in carrying value will be recorded as an increase to accumulated deficit at January 1, 2010. In addition, upon transition to IFRS, Provident has the option to calculate depletion using a reserve base of proved reserves or both proved and probable reserves, as compared to the Canadian GAAP method of calculating depletion using only proved reserves.  Provident has elected to use proved plus probable reserves under IFRS.  The combination of a lower carrying value due to the impairment charge and the larger depletion base will result in approximately $41 million lower Upstream depletion charges under IFRS in the first six months of 2010. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provision for asset retirement costs – Due to a change in discount rates applied under IFRS to estimated asset retirement costs, it is expected that the provision for asset retirement costs associated with the discontinued Upstream operations will increase by approximately $37 million upon transition to IFRS to reflect the estimated risk-free rate of interest at that time.  The offset to this increase will be recorded as an increase to accumulated deficit. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Loss on sale of discontinued operations – Each of the differences described above is expected to have an equal and offsetting impact on the loss on sale of discontinued operations, such that the net impact of the Upstream differences on equity after recognition of the sale of the business in the second quarter of 2010 is expected to be nil. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Internal controls over financial reporting (“ICFR”) – Provident is currently in the process of reviewing its ICFR documentation and is identifying instances where controls must be amended or added in order to address the accounting policy changes required under IFRS.  No material changes in control procedures are expected as a result of the transition to IFRS. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | IT systems – Provident has completed the system updates required for IFRS reporting.  The modifications while not significant were, however, deemed critical in order to allow for reporting of both Canadian GAAP and IFRS statements in 2010 as well as the modifications required to track PP&E costs at a more granular level of detail for IFRS reporting. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Disclosure controls and procedures – Provident has assessed the impact of transition to IFRS on its disclosure controls and procedures and has not identified any material changes required in its control environment.  It is expected that there will be increased note disclosure around certain financial statement elements than what is currently required under Canadian GAAP.  Management is currently drafting its IFRS note disclosure in accordance with current IFRS standards and continues to monitor requirements put forth by the IASB in discussion papers and exposure drafts for future disclosure requirements.  Throughout the transition process, Provident has been assessing its stakeholders’ information requirements and will ensure that adequate and timely information is provided to meet these needs. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | capital markets, credit and liquidity risks and the ability to finance future growth; and |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the impact of Canadian governmental regulation on Provident. |
|--------------------|--------------------------------------------------------------|

----

| ·   | operational matters and hazards including the breakdown or failure of equipment, information systems or processes, the performance of equipment at levels below those originally intended, operator error, labour disputes, disputes with owners of interconnected facilities and carriers and catastrophic events such as natural disasters, fires, explosions, fractures, acts of eco-terrorists and saboteurs, and other similar events, many of which are beyond the control of Provident; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the Midstream NGL assets are subject to competition from other gas processing plants, and the pipelines and storage, terminal and processing facilities are also subject to competition from other pipelines and storage, terminal and processing facilities in the areas they serve, and the gas products marketing business is subject to competition from other marketing firms; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | exposure to commodity price, exchange rate and interest rate fluctuations; |
|--------------------|----------------------------------------------------------------------------|

| ·   | reduction in the volume of throughput or the level of demand; |
|--------------------|---------------------------------------------------------------|

| ·   | the ability to attract and retain employees; |
|--------------------|----------------------------------------------|

| ·   | increasing operating and capital costs; |
|--------------------|-----------------------------------------|

| ·   | regulatory intervention in determining processing fees and tariffs; |
|--------------------|---------------------------------------------------------------------|

| ·   | reliance on significant customers; |
|--------------------|------------------------------------|

| ·   | government and regulatory risk; |
|--------------------|---------------------------------|

| ·   | changes to environmental regulations; and |
|--------------------|-------------------------------------------|

| ·   | environmental, health and safety risks. |
|--------------------|-----------------------------------------|

| ·   | employing and empowering management and technical staff with extensive industry experience and providing competitive remuneration; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | adhering to a disciplined Commodity Price Risk Management Program to mitigate the impact that volatile commodity prices have on cash flow available for the payment of dividends; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | marketing natural gas liquids and related services to selected, credit worthy customers at competitive rates; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | maintaining a competitive cost structure to maximize cash flow and profitability; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | maintaining prudent financial leverage and developing strong relationships with the investment community and capital providers; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | adhering to strict guidelines and reporting requirements with respect to environmental, health and safety practices; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | maintaining an adequate level of property, casualty, comprehensive and directors’ and officers’ insurance coverage. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

----

|                      |   |   | Q1     |   |   |   | Q2      |  (1) |   |   | Q3     |   |   |   | Q4     |   |
|---------------------------|--------|--------|--------|--------|--------|--------|---------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|
| TSE – PVE.UN (Cdn$) |   |   |   |   |   |   |    |      |   |   |   |   |   |   |   |   |
| High                      |   | $      | 8.61   |   |   | $      | 8.51    |      |   | $      | 7.36   |   |   | $      | 8.26   |   |
| Low                       |   | $      | 7.07   |   |   | $      | 5.14    |      |   | $      | 6.25   |   |   | $      | 7.14   |   |
| Close                     |   | $      | 7.88   |   |   | $      | 7.29    |      |   | $      | 7.30   |   |   | $      | 7.91   |   |
| Volume (000s)             |   |   | 19,046 |   |   |   | 27,674  |      |   |   | 28,776 |   |   |   | 48,556 |   |
| NYSE – PVX (US$)    |   |   |   |   |   |   |    |      |   |   |   |   |   |   |   |   |
| High                      |   | $      | 8.40   |   |   | $      | 8.51    |      |   | $      | 7.58   |   |   | $      | 8.18   |   |
| Low                       |   | $      | 6.76   |   |   | $      | 5.21    |      |   | $      | 5.86   |   |   | $      | 7.02   |   |
| Close                     |   | $      | 7.71   |   |   | $      | 6.87    |      |   | $      | 7.06   |   |   | $      | 7.95   |   |
| Volume (000s)             |   |   | 99,239 |   |   |   | 104,579 |      |   |   | 78,977 |   |   |   | 93,092 |   |

```
 (1) Second quarter unit trading lows were disproportionately impacted by a market wide, one day trading anomaly originating with the NYSE on May 6, 2010. While some transactions were cancelled by the NYSE, trades on the Toronto Stock Exchange were upheld.
```

| ·   | Provident's ability to benefit from the combination of growth opportunities and the ability to grow through the capital markets; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provident's acquisition strategy, the criteria to be considered in connection therewith and the benefits to be derived therefrom; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | the emergence of accretive growth opportunities; |
|--------------------|--------------------------------------------------|

| ·   | the ability to achieve an appropriate level of monthly cash dividends; |
|--------------------|------------------------------------------------------------------------|

| ·   | the impact of Canadian governmental regulation on Provident; |
|--------------------|--------------------------------------------------------------|

| ·   | the existence, operation and strategy of the commodity price risk management program; |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | the approximate and maximum amount of forward sales and hedging to be employed; |
|--------------------|---------------------------------------------------------------------------------|

----

| ·   | changes in oil, natural gas and NGL prices and the impact of such changes on cash flow after financial derivative instruments; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | the level of capital expenditures; |
|--------------------|------------------------------------|

| ·   | currency, exchange and interest rates; |
|--------------------|----------------------------------------|

| ·   | the performance characteristics of Provident's midstream, NGL processing and marketing business; |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | the growth opportunities associated with the midstream, NGL processing and marketing business; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | the availability and amount of tax pools available to offset Provident’s cash taxes; and |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | the nature of contractual arrangements with third parties in respect of Provident's midstream, NGL processing and marketing business. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | general economic and credit conditions in Canada, the United States and globally; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | industry conditions associated with the NGL services, processing and marketing business; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | fluctuations in the price of crude oil, natural gas and natural gas liquids; |
|--------------------|------------------------------------------------------------------------------|

| ·   | interest payable on notes issued in connection with acquisitions; |
|--------------------|-------------------------------------------------------------------|

| ·   | governmental regulation in North America of the energy industry, including income tax and environmental regulation; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuation in foreign exchange or interest rates; |
|--------------------|----------------------------------------------------|

| ·   | stock market volatility and market valuations; |
|--------------------|------------------------------------------------|

| ·   | the impact of environmental events; |
|--------------------|-------------------------------------|

| ·   | the need to obtain required approvals from regulatory authorities; |
|--------------------|--------------------------------------------------------------------|

| ·   | unanticipated operating events; |
|--------------------|---------------------------------|

| ·   | failure to realize the anticipated benefits of acquisitions; |
|--------------------|--------------------------------------------------------------|

| ·   | competition for, among other things, capital reserves and skilled personnel; |
|--------------------|------------------------------------------------------------------------------|

| ·   | failure to obtain industry partner and other third party consents and approvals, when required; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | risks associated with foreign ownership; |
|--------------------|------------------------------------------|

| ·   | third party performance of obligations under contractual arrangements; and |
|--------------------|----------------------------------------------------------------------------|

| ·   | the other factors set forth under "Business risks" in this MD&A. |
|--------------------|----------------------------------------------------------------------|

| ·   | future natural gas, crude oil and NGL prices; |
|--------------------|-----------------------------------------------|

| ·   | the ability of Provident to obtain qualified staff and equipment in a timely and cost-efficient manner to meet demand; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | the regulatory framework regarding royalties, taxes and environmental matters in which Provident conducts its business; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | the impact of increasing competition; |
|--------------------|---------------------------------------|

| ·   | Provident's ability to obtain financing on acceptable terms; |
|--------------------|--------------------------------------------------------------|

| ·   | the general stability of the economic and political environment in which Provident operates; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the timely receipt of any required regulatory approvals; |
|--------------------|----------------------------------------------------------|

| ·   | the timing and costs of pipeline, storage and facility construction and expansion and the ability of Provident to secure adequate product transportation; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | currency, exchange and interest rates; and |
|--------------------|--------------------------------------------|

| ·   | the ability of Provident to successfully market its oil and natural gas products. |
|--------------------|-----------------------------------------------------------------------------------|

----

| ($ 000s except per unit data)                                                |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Revenue from continuing operations (net of financial derivative instruments) |   | $      | 1,621,757 |   |   | $      | 1,452,138 |   |   | $ | 2,661,839 |   |
| Net (loss) income                                                            |   |   | (335,095  | )      |   |   | (89,020   | )      |   |   | 157,392 |   |
| Per unit - basic                                                             |   |   | (1.26     | )      |   |   | (0.34     | )      |   |   | 0.62 |   |
| Per unit - diluted                                                           |   |   | (1.18     | )      |   |   | (0.34     | )      |   |   | 0.62 |   |
| Total assets                                                                 |   |   | 1,399,804 |   |   |   | 2,548,015 |   |   |   | 3,074,069 |   |
| Long-term financial liabilities (1)                                          |   |   | 385,166   |   |   |   | 682,625   |   |   |   | 867,232 |   |
| Declared distributions per unit                                              |   | $      | 0.72      |   |   | $      | 0.75      |   |   | $ | 1.38 |   |

----

| Financial information by quarter                                                                                                                            |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|----------|---------|--------|--------|---------|--------|--------|----------|---------|
| ($ 000s except for per unit and operating amounts)                                                                                                          |   |    |    |   |    |   |     | 2010    |   |   |    |   |   |     |    |
|                                                                                                                                                        |   | First   |    |   | Second  |   |     | Third   |   |   | Fourth  |   |   | Year-to- |    |
|                                                                                                                                                        |   | Quarter |    |   | Quarter |   |     | Quarter |   |   | Quarter |   |   | Date     |    |
|                                                                                                                                                        |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |   |   |   |   |   |
| Revenue - continuing operations                                                                                                                             |   | $       | 419,250 |   |    | $      | 354,982  |    |   | $      | 332,570 |   |   | $        | 514,955 |   |   | $ | 1,621,757 |   |
| Funds flow from continuing operations (1)                                                                                                                   |   | $       | 46,481  |   |    | $      | (170,646 | )       |   | $      | 43,997  |   |   | $        | 72,183  |   |   | $ | (7,985 | ) |
| Funds flow from continuing operations per unit                                                                                                              |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |   |   |   |   |   |
| - basic                                                                                                                                                     |   | $       | 0.18    |   |    | $      | (0.64    | )       |   | $      | 0.17    |   |   |     | 0.27    |   |   | $ | (0.03 | ) |
| - diluted                                                                                                                                                   |   | $       | 0.18    |   |    | $      | (0.64    | )       |   | $      | 0.17    |   |   |     | 0.26    |   |   | $ | (0.02 | ) |
| Adjusted EBITDA - continuing operations (2)                                                                                                                 |   | $       | 51,084  |   |    | $      | (175,715 | )       |   | $      | 52,894  |   |   | $        | 84,390  |   |   | $ | 12,653 |   |
|                                                                                                                                                        |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |   |   |   |   |   |
| Adjusted funds flow from continuing operations (3)                                                                                                          |   | $       | 46,967  |   |    | $      | 39,840   |    |   | $      | 43,997  |   |   | $        | 74,052  |   |   | $ | 204,856 |   |
| Adjusted funds flow from continuing operations per unit                                                                                                     |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |   |   |   |   |   |
| - basic                                                                                                                                                     |   | $       | 0.18    |   |    | $      | 0.15     |    |   | $      | 0.17    |   |   | $        | 0.28    |   |   | $ | 0.77 |   |
| - diluted (4)                                                                                                                                               |   | $       | 0.18    |   |    | $      | 0.15     |    |   | $      | 0.17    |   |   | $        | 0.27    |   |   | $ | 0.73 |   |
| Adjusted EBITDA excluding buyout of financial   derivative instruments and strategic review and   restructuring costs - continuing operations (2) |   | $       | 51,570  |   |    | $      | 34,771   |    |   | $      | 52,894  |   |   | $        | 86,259  |   |   | $ | 225,494 |   |
|                                                                                                                                                        |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |   |   |   |   |   |
| Net (loss) income                                                                                                                                           |   | $       | (60,459 | )      |    | $      | (344,875 | )       |   | $      | 8,924   |   |   | $        | 61,315  |   |   | $ | (335,095 | ) |
| Net (loss) income per unit                                                                                                                                  |   |    |    |   |    |   |     |    |   |   |    |   |   |     |    |   |   |   |   |   |
| - basic                                                                                                                                                     |   | $       | (0.23   | )      |    | $      | (1.30    | )       |   | $      | 0.03    |   |   | $        | 0.23    |   |   | $ | (1.26 | ) |
| - diluted (4)                                                                                                                                               |   | $       | (0.23   | )      |    | $      | (1.30    | )       |   | $      | 0.03    |   |   | $        | 0.22    |   |   | $ | (1.18 | ) |
| Unitholder distributions                                                                                                                                    |   | $       | 47,634  |   |    | $      | 47,794   |    |   | $      | 47,990  |   |   | $        | 48,221  |   |   | $ | 191,639 |   |
| Distributions per unit                                                                                                                                      |   | $       | 0.18    |   |    | $      | 0.18     |    |   | $      | 0.18    |   |   | $        | 0.18    |   |   | $ | 0.72 |   |
| Provident Midstream NGL sales volumes (bpd)                                                                                                                 |   |    | 113,279 |   |    |   | 94,030   |    |   |   | 95,388  |   |   |     | 121,627 |   |   |   | 106,075 |   |

| (1) | Represents cash flow from operations before changes in working capital and site restoration expenditures. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (2) | Adjusted EBITDA is earnings before interest, taxes, depreciation, accretion and other non-cash items - see "Reconciliation of Non-GAAP measures". |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Adjusted funds flow from continuing operations excludes realized loss on buyout of financial derivative instruments and strategic review and restructuring costs. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes dilutive impact of convertible debentures. |
|-----|-----------------------------------------------------|

----

| Financial information by quarter                                                                                                                            |   |    |    |   |    |   |    |    |   |   |    |   |   |   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|--------|---------|
| ($ 000s except for per unit and operating amounts)                                                                                                          |   | 2009    |    |
|                                                                                                                                                        |   | First   |    |   | Second  |   |    | Third   |   |   | Fourth  |   |   | Annual |    |
|                                                                                                                                                        |   | Quarter |    |   | Quarter |   |    | Quarter |   |   | Quarter |   |   | Total  |    |
| Revenue - continuing operations                                                                                                                             |   | $       | 406,650 |   |    | $      | 235,669 |    |   | $      | 395,661 |   |   | $      | 414,158 |   |   | $ | 1,452,138 |   |
| Funds flow from continuing operations (1)                                                                                                                   |   | $       | 57,349  |   |    | $      | 14,456  |    |   | $      | 24,859  |   |   | $      | 51,190  |   |   | $ | 147,854 |   |
| Funds flow from continuing operations per unit   - basic and diluted                                                                                   |   | $       | 0.22    |   |    | $      | 0.06    |    |   | $      | 0.09    |   |   | $      | 0.19    |   |   | $ | 0.57 |   |
| Adjusted EBITDA - continuing operations (2)                                                                                                                 |   | $       | 65,095  |   |    | $      | 20,383  |    |   | $      | 25,569  |   |   | $      | 57,182  |   |   | $ | 168,229 |   |
|                                                                                                                                                        |   |    |    |   |    |   |    |    |   |   |    |   |   |   |    |   |   |   |   |   |
| Adjusted funds flow from continuing operations (3)                                                                                                          |   | $       | 57,623  |   |    | $      | 21,858  |    |   | $      | 24,859  |   |   | $      | 52,769  |   |   | $ | 157,109 |   |
| Adjusted funds flow from continuing operations per unit   - basic and diluted                                                                          |   | $       | 0.22    |   |    | $      | 0.08    |    |   | $      | 0.09    |   |   | $      | 0.20    |   |   | $ | 0.60 |   |
| Adjusted EBITDA excluding buyout of financial   derivative instruments and strategic review and   restructuring costs - continuing operations (2) |   | $       | 65,369  |   |    | $      | 27,785  |    |   | $      | 25,569  |   |   | $      | 58,761  |   |   | $ | 177,484 |   |
|                                                                                                                                                        |   |    |    |   |    |   |    |    |   |   |    |   |   |   |    |   |   |   |   |   |
| Net (loss) income                                                                                                                                           |   | $       | (40,284 | )      |    | $      | (80,061 | )       |   | $      | 51,663  |   |   | $      | (20,338 | ) |   | $ | (89,020 | ) |
| Net (loss) income per unit - basic and diluted                                                                                                              |   | $       | (0.16   | )      |    | $      | (0.31   | )       |   | $      | 0.20    |   |   | $      | (0.08   | ) |   | $ | (0.34 | ) |
| Unitholder distributions                                                                                                                                    |   | $       | 54,511  |   |    | $      | 47,012  |    |   | $      | 47,238  |   |   | $      | 47,456  |   |   | $ | 196,217 |   |
| Distributions per unit                                                                                                                                      |   | $       | 0.21    |   |    | $      | 0.18    |    |   | $      | 0.18    |   |   | $      | 0.18    |   |   | $ | 0.75 |   |
| Provident Midstream NGL sales volumes (bpd)                                                                                                                 |   |    | 141,669 |   |    |   | 102,799 |    |   |   | 98,229  |   |   |   | 111,912 |   |   |   | 113,528 |   |

| (1) | Represents cash flow from operations before changes in working capital and site restoration expenditures. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (2) | Adjusted EBITDA is earnings before interest, taxes, depreciation, accretion and other non-cash items - see "Reconciliation of Non-GAAP measures". |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Adjusted funds flow from continuing operations excludes realized loss on buyout of financial derivative instruments and strategic review and restructuring costs. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Financial information by quarter                   |   |    |    |   |    |   |     |    |   |   |      |   |   |   |      |
|----------------------------------------------------|--------|---------|---------|--------|---------|--------|----------|---------|--------|--------|-----------|--------|--------|--------|-----------|
| ($ 000s except for per unit and operating amounts) |   | 2008    |    |
|                                               |   | First   |    |   | Second  |   |     | Third   |   |   | Fourth    |   |   | Annual |      |
|                                               |   | Quarter |    |   | Quarter |   |     | Quarter |   |   | Quarter   |   |   | Total  |      |
| Revenue (1)                                        |   | $       | 702,215 |   |    | $      | 420,220  |    |   | $      | 1,097,408 |   |   | $      | 1,019,320 |   |   | $ | 3,239,163 |   |
| Funds flow from operations (1)                     |   | $       | 130,394 |   |    | $      | 165,470  |    |   | $      | 139,979   |   |   | $      | 81,779    |   |   | $ | 517,622 |   |
| Funds flow from operations per unit (1)            |   |    |    |   |    |   |     |    |   |   |      |   |   |   |      |   |   |   |   |   |
| - basic                                            |   | $       | 0.52    |   |    | $      | 0.65     |    |   | $      | 0.55      |   |   | $      | 0.32      |   |   | $ | 2.03 |   |
| Funds flow from operations per unit (1)            |   |    |    |   |    |   |     |    |   |   |      |   |   |   |      |   |   |   |   |   |
| - diluted                                          |   | $       | 0.52    |   |    | $      | 0.65     |    |   | $      | 0.51      |   |   | $      | 0.32      |   |   | $ | 2.03 |   |
| Adjusted EBITDA (2)                                |   | $       | 151,335 |   |    | $      | 178,901  |    |   | $      | 148,595   |   |   | $      | 87,423    |   |   | $ | 566,254 |   |
| Net income (loss)                                  |   | $       | 33,616  |   |    | $      | (184,081 | )       |   | $      | 351,105   |   |   | $      | (43,248   | ) |   | $ | 157,392 |   |
| Net income (loss) per unit - basic                 |   | $       | 0.13    |   |    | $      | (0.72    | )       |   | $      | 1.37      |   |   | $      | (0.17     | ) |   | $ | 0.62 |   |
| Net income (loss) per unit - diluted               |   | $       | 0.13    |   |    | $      | (0.72    | )       |   | $      | 1.29      |   |   | $      | (0.17     | ) |   | $ | 0.62 |   |
| Unitholder distributions                           |   | $       | 91,117  |   |    | $      | 91,662   |    |   | $      | 92,188    |   |   | $      | 77,324    |   |   | $ | 352,291 |   |
| Distributions per unit                             |   | $       | 0.36    |   |    | $      | 0.36     |    |   | $      | 0.36      |   |   | $      | 0.30      |   |   | $ | 1.38 |   |
| Provident Midstream NGL sales volumes (bpd)        |   |    | 136,320 |   |    |   | 110,826  |    |   |   | 111,313   |   |   |   | 120,222   |   |   |   | 119,649 |   |

| (1) | Includes Provident Upstream and Provident Midstream businesses but excludes the United States oil and natural gas production (USOGP) business which was sold and accounted for as discontinued operations in 2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Adjusted EBITDA is earnings before interest, taxes, depreciation, accretion and other non-cash items - see "Reconciliation of Non-GAAP measures". |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Douglas J. Haughey      | Brent C. Heagy          |
|-------------------------|-------------------------|
| Chief Executive Officer | Chief Financial Officer |

----

| Douglas J. Haughey      | Brent C. Heagy          |
|-------------------------|-------------------------|
| Chief Executive Officer | Chief Financial Officer |

----