Provident Energy Trust
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Provident Energy Trust Financial Snapshot
Operating Performance
Fast Facts
800 112 -4th Avenue S.W., Calgary, T2P The company reported revenue of US$1,574.52
Headquarters Address
0H3,Canada million during the fiscal year 2010 (2010). The
company's revenue declined at a compounded rate of
Telephone + 1 403 2962233
-5.03% during 2006–2010, with an annual growth of
23.61% over 2009. In 2010, the company recorded an
Fax + 1 403 2940111 operating margin of 3.97%, as against -2.07% in
2009.
Website www.providentenergy.com
PVX, New York Stock ExchangePVE, Revenue and Margins
Ticker Symbol, Stock Exchange
Toronto Stock Exchange
Number of Employees 200
Fiscal Year End December
Revenue (in US$ million) 1,574.52
Revenue (in CAD million) 1,621.76
SWOT Analysis
Return on Equity
Strengths Weaknesses
The company recorded a return on equity (ROE) of -
Decreased debt obligations Limited geographical operations 1.79% for 2010, as compared to its peers, Petrobank
Energy and Resources Ltd. (Ticker: PBG), Baytex
Energy Trust (Ticker: BTE.UN) and Penn West
Increased operating margin Weak liquidity position Energy Trust (Ticker: PWT.UN), which recorded
ROEs of 88.48%, 20.84% and 12.97% respectively.
Strong Midstream asset base The company reported a net profit margin of 3.97% in
2010.
Opportunities Threats
Return on Equity
Expansion plans Environmental regulations
US energy policy and increasing tax
Strategic agreement
burden
Liquidity Position
The company reported a current ratio of 0.75 in 2010,
as compared to its peers, Petrobank Energy and
Resources Ltd., Baytex Energy Trust and Penn West
Energy Trust, which recorded current ratios of 0.50,
0.74 and 0.38 respectively. As of December 2010, the
company recorded cash and short-term investments
of worth US$4.27 million, against US$144.64 million
current debt. The company reported a debt to equity
ratio of 0.81 in 2010 as compared to its peers,
Petrobank Energy and Resources Ltd., Baytex
Energy Trust and Penn West Energy Trust, which
recorded debt to equity ratios of 0.62, 0.41 and 0.32
respectively.
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Provident Energy Trust - SWOT Profile Page 1
Provident Energy Trust
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Operational Efficiency ......................................................................................................................................13
2.2.5 Solvency ..........................................................................................................................................................14
2.2.6 Valuation ..........................................................................................................................................................15
2.3 Competitive Benchmarking ..................................................................................................................................16
2.3.1 Market Capitalization .......................................................................................................................................16
2.3.2 Efficiency ..........................................................................................................................................................17
2.3.3 Capital Expenditure ..........................................................................................................................................18
2.3.4 Turnover – Inventory and Asset .......................................................................................................................19
2.3.5 Liquidity ............................................................................................................................................................20
3 Mergers & Acquisitions and Partnerships ........................................................................................... 21
3.1 M&A an