Cash flow from operations increased by 11% in 2006 despite modest weakness in commodity prices.

Our balance sheet remains strong allowing for greater flexibility.

FINANCIAL AND OPERATING HIGHLIGHTS

This Annual Report contains forward-looking information and statements within the meaning of applicable securities laws. See "Forward-Looking Information and Statements" in our Management's Discussion and Analysis contained in this Annual Report, which section applies in all respects to all forward-looking information and statements contained in this Annual Report. Readers are urged to review the Definitions and Abbreviations section included at the end of this report for information on definitions and the methodology used in determining various metrics.

Financial Highlights

For the years ended December 31,	2006	2005
Financial (000's)
Net Income	$544,782	$432,041
Cash Flow from Operating Activities	863,696	774,633
Cash Distributions to Unitholders ⁽¹⁾	614,340	498,205
Cash Withheld for Acquisitions and Capital Expenditures	249,356	276,428
Debt Outstanding (net of cash)	679,650	649,825
Development Capital Spending	491,226	368,689
Acquisitions	51,313	704,028
Divestments	21,127	66,511
Financial per Unit ⁽²⁾
Net Income	$4.48	$3.96
Cash Flow from Operating Activities	7.10	7.10
Cash Distributions to Unitholders⁽¹⁾	5.05	4.57
Cash Withheld for Acquisitions and Capital Expenditures	2.05	2.53

Payout Ratio⁽³⁾	71%	64%
Selected Financial Results per BOE ⁽⁴⁾
Oil & Gas Sales ⁽⁵⁾	$50.23	$52.36
Royalties	(9.36)	(10.21)
Financial Contracts	(1.10)	(4.90)
Operating Costs	(8.02)	(7.45)
General and Administrative	(1.71)	(1.28)
Interest and Foreign Exchange	(0.93)	(0.64)
Taxes	(0.70)	(0.31)
Restoration and Abandonment	(0.37)	(0.27)
Cash Flow from Operating Activities before changes in non-cash working capital	$28.04	$27.30
Weighted Average Number of Trust Units Outstanding (thousands)	121,588	109,083
Debt/Trailing 12 Month Cash Flow Ratio	0.8x	0.8x

Operating Highlights

For the years ended December 31,	2006	2005
Average Daily Production
Natural gas (Mcf/day)	270,972	274,336
Crude oil (bbls/day)	36,134	29,315
NGLs (bbls/day)	4,483	4,689
Total (BOE/day)	85,779	79,727
% Natural gas	53%	57%
Average Selling Price ⁽⁵⁾
Natural gas (per Mcf)	$6.81	$8.41
Crude oil (per bbl)	61.80	55.93
NGLs (per bbl)	50.90	47.33
Per BOE	50.23	52.36
US$ exchange rate	0.88	0.83
Net Wells drilled	361	393
Success Rate	99%	99%
Proved Reserves (MMBOE) ⁽⁶⁾	299.8	313.2
Probable Reserves† (MMBOE) ⁽⁶⁾	143.5	135.9
Total Proved plus Probable Reserves (MMBOE) ⁽⁶⁾	443.3	449.1
FD&A Cost/BOE, excluding Future Development Capital⁽⁷⁾	$20.45	$13.98
FD&A Cost/BOE, including Future Development Capital⁽⁷⁾	$23.19	$17.18
Recycle Ratio⁽⁷⁾	1.4x	1.7x
Proved Reserve Life Index (years)⁽⁷⁾	10.1	9.9
Proved plus Probable Reserve Life Index (years)⁽⁷⁾	14.0	13.5

In some circumstances, presentation has been changed to minimize the use of non-GAAP measures.

⁽¹⁾ Calculated based on distributions paid or payable. Cash distributions to unitholders per unit will not correspond to the actual monthly distributions of $5.04 as a result of using the annual weighted average trust units outstanding.
⁽²⁾ Based on annual weighted average trust units outstanding.
⁽³⁾ Calculated as Cash Distributions to Unitholders divided by Cash Flow from Operating Activities.
⁽⁴⁾ Non-cash amounts have been excluded.
⁽⁵⁾ Net of oil and gas transportation costs, but before the effects of commodity derivative instruments.
⁽⁶⁾ Reserve figures are calculated based upon company interest reserves using forecast prices and costs.
⁽⁷⁾ Based upon proved plus probable company interest reserves.

We continued to reinvest a significant amount of cash flow into our assets.

Cash distributions to unitholders increased by more than 13% per unit in 2006.

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