Provident Energy Eyes BreitBurn Sale

In a statement, Calgary-based Provident said it will also assess the possible sale of Breitburn Energy Co., also known as Devco.

Provident said it owns about 22 percent of Los Angeles-based BreitBurn Energy, including units held by the general partner of which Provident indirectly owns about 96 percent. Provident owns about 96 percent of Devco.

Provident has retained Morgan Stanley as its financial adviser as part of the sale review. It noted that, at the current ownership level, it views BreitBurn Energy as an investment rather than a strategic growth vehicle.

BreitBurn's assets consist primarily of producing and non-producing crude oil and natural gas reserves in the Los Angeles Basin in California, the Antrim Shale in Michigan, the Wind River and Big Horn Basins in central Wyoming, the Permian Basin in Texas, the Sunniland Trend in Florida, and the New Albany Shale in Indiana and Kentucky. Devco's assets include crude oil reserves in California.

Provident said it continues to assess its business plans and corporate structure as it looks to optimize business performance, facilitate growth and improve access to capital. It said the planning is also required to respond to the challenges arising from the Canadian government's decision to tax trusts beginning in 2011.

Shares of Provident Energy slipped 5 cents, or 0.5 percent, to $9.94 in late-morning trading Tuesday. Shares of BreitBurn Energy Partners fell $1.63, or 6.6 percent, to $23.20.