BreitBurn Announces Additional Hedging, Updates 2007 Guidance



BreitBurn Energy Partners L.P. has entered into new derivative financial instruments and is providing updated 2007 full year guidance in conjunction with the acquisition of interests in two significant California oil properties, which was announced on May 25, 2007.

Derivative Financial Instruments Entered Into Simultaneously With The Acquisition

In connection with the acquisition, BreitBurn has entered into the new derivative financial instruments described below:

        Volume
Year   (Bbls/d)               Terms (a)               Effective Period
----- ---------- ------------------------------------ ----------------
2007     338     Swap - $67.46 per Bbl                Through Dec. 31
         338     Participating Swap $60 per Bbl       Through Dec. 31
                  (85.5% participation above $60
                  floor)

2008     325     Swap - $70.37 per Bbl                Jan. 1 - Dec. 31
         325     Participating Swap $60 per Bbl       Jan. 1 - Dec. 31
                  (75.8% participation above $60
                  floor)

2009     210     Swap - $70.48 per Bbl                Jan. 1 - Dec. 31
         210     Participating Swap $60 per Bbl       Jan. 1 - Dec. 31
                  (67.6% participation above $60
                  floor)
         210     Collar $60.00 (floor)/ $79.50        Jan. 1 - Dec. 31
                  (ceiling)

2010     183     Swap - $69.59 per Bbl                Jan. 1 - Dec. 31
         183     Participating Swap $60 per Bbl       Jan. 1 - Dec. 31
                  (61.5% participation above $60
                  floor)
         183     Collar $60.00 (floor)/ $79.25        Jan. 1 - Dec. 31
                  (ceiling)

2011     177     Swap - $69.15 per Bbl                Jan. 1 - Dec. 31
         177     Participating Swap $60 per Bbl       Jan. 1 - Dec. 31
                  (53.2% participation above $60
                  floor)
         177     Collar $60.00 (floor)/ $77.60        Jan. 1 - Dec. 31
                  (ceiling)

(a) A participating swap is a single instrument that combines a swap
 and a call option with the same strike price.

Location and quality differentials attributable to the Partnership properties are not reflected in the above prices. The agreements provide for monthly settlement based on the difference between the agreement price and the actual NYMEX crude oil price.

Updated 2007 Guidance

In conjunction with the acquisition, BreitBurn is providing the following updated full year 2007 guidance ranges:

                                            Updated 2007 Guidance(1)
                                          ----------------------------

Total Net Production (Mboe) (2)            2,277      --      2,477

Avg. Daily Production (boe) (June - Dec.)  7,240      --      8,175

Average Price of Hedged Volumes                     $67.10

Price Differential %                         18%      --        20%

Operating Expenses ($000's)               $45,250     --     $47,750

G&A ($000's) (3)                          $14,000     --     $15,500
  (excluding Management incentive plans)

G&A - Management incentive plans                     (see
                                                    footnote
                                                       4)

Cash Interest Expense ($000's)                      $1,250

Capital Expenditures ($000's)             $20,700     --     $22,700

(1) Revised guidance is for the full year 2007 unless otherwise noted
 and assumes the impact of the East Coyote and Sawtelle acquisitions
 beginning June 1, 2007.
(2) Assumes approximately 900 boe/d of production from East Coyote and
 Sawtelle beginning June 1, 2007.
(3) Due to incremental accounting, tax, auditing and legal expenses
 associated with the Partnership's transition from a private entity to
 a publicly-traded MLP, it is estimated that up to 60% of the
 projected annual general and administrative expense may be incurred
 in the first six months of 2007.
(4) BreitBurn's management incentive plan is tied to unit price and
 other metrics. BreitBurn is not providing guidance on the unit price
 for 2007. However, if the common units do not appreciate over the
 year-end 2006 price, management incentive plan expense is estimated
 to be at $3.5 million.

BreitBurn Energy Partners L.P. is an independent oil and gas limited partnership, formed in 2006 by a subsidiary of Provident Energy Trust, focused on the acquisition, exploitation and development of oil and gas properties. BreitBurn's assets consist primarily of producing and non-producing crude oil reserves located in the Los Angeles Basin in California, the Wind River and Big Horn Basins in central Wyoming, the Permian Basin in West Texas, and the Sunniland Trend in Florida.

RELATED COMPANIES