Questar Reports Record Net Income of $212 Million for 2012

  Questar Reports Record Net Income of $212 Million for 2012

                            Affirms 2013 guidance

Business Wire

SALT LAKE CITY -- February 20, 2013

Questar Corporation (NYSE:STR) reported record net income of $212.0 million,
or $1.19 per diluted share for 2012 compared to 2011 net income of $207.9
million, or $1.16 per diluted share. 2012 earnings include a $3.0 million
($0.02 per diluted share) after-tax charge for the cost of a retirement
incentive offer. Excluding the charge, Questar earned $215.0 million, or $1.21
per diluted share. Adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) for 2012 were up 5% to $567.8 million compared
to $540.8 million for 2011. Return on average common equity (ROE) was 20.8%
for 2012, excluding the retirement incentive charge.

NET INCOME (LOSS) BY SUBSIDIARY
                                           
               3 Months Ended December 31,      12 Months Ended December 31,
            2012^(a)  2011      Change   2012^(a)   2011       Change
               (in millions, except earnings per share)
Questar        $ 23.8    $ 20.2    18  %      $ 47.1     $ 46.1     2   %
Gas
Wexpro         27.4       23.6       16  %      103.9       95.2        9   %
Questar        14.9       17.2       (13 %)     64.7        67.9        (5  %)
Pipeline
Corporate    (2.3   )  0.6      NM      (3.7    )  (1.3    )  NM  
and other
Total        $ 63.8   $ 61.6   4   %    $ 212.0   $ 207.9   2   %
Earnings
per            $ 0.36     $ 0.34     6   %      $ 1.19      $ 1.16      3   %
diluted
share
Average
diluted        175.9      179.0      (2  %)     177.5       178.8       (1  %)
shares
^(a) Includes $3.0 million ($0.02 per diluted share) after-tax impact of the
retirement incentive costs in the fourth quarter of 2012. Subsidiaries and
corporate each bore a proportionate share of the charge: Questar Gas, $1.5
million; Questar Pipeline, $0.6 million; Wexpro, $0.1 million; and corporate,
$0.8 million. See computations at the end of the attached financial
statements.



ADJUSTED EBITDA BY SUBSIDIARY^(a)
                                              
              3 Months Ended December 31,          12 Months Ended December 31,
           2012       2011       Change     2012       2011       Change
              (in millions)
Questar       $ 56.6     $ 50.2     $ 6.4        $ 148.0    $ 144.0    $ 4.0
Gas
Wexpro        60.7        54.8        5.9          236.1       213.9       22.2
Questar       44.5        44.9        (0.4   )     180.8       181.5       (0.7   )
Pipeline
Corporate   (0.1    )  0.7       (0.8   )   2.9       1.4       1.5    
and other
Total       $ 161.7   $ 150.6   $ 11.1    $ 567.8   $ 540.8   $ 27.0 
^(a) Management defines Adjusted EBITDA as net income (loss) before interest
expense, income taxes, depreciation, depletion and amortization, gains and losses
from asset sales, abandonments and impairments and other special items. See
computations at the end of the attached financial statements.



"I am very pleased with Questar's performance for 2012 in a challenging
economic environment," said Ronald W. Jibson, Questar chairman, president and
CEO. "Even with the cost of the retirement incentive, Questar posted record
net income and an industry-leading return on equity. Adjusted EBITDA was up 5%
to $568 million for the year, allowing us to fund growth projects and maintain
a strong balance sheet while still returning capital to shareholders via a 5%
dividend increase and the repurchase of 4.6 million company shares at an
average price below $20 per share. Questar Gas and Wexpro grew net income by
2% and 9% respectively, while Questar Pipeline's income dipped slightly.
Questar delivered full-year EPS at the top end of our 2012 guidance, despite
the many headwinds that we discussed with investors throughout the year."

The Company also affirmed its preliminary 2013 EPS guidance of $1.12 to $1.20
per diluted share.

2012 Highlights

Other 2012 highlights include:

  *Questar Gas invested $58.4 million in 2012 to replace high-pressure
    feeder-lines, about the same amount as in 2011;
  *Questar Gas's customer growth rate increased to 1.3%, up from 1.1% in
    2011;
  *Questar Gas earned its authorized return on equity for the eighth straight
    year (excluding the impact of the retirement incentive);
  *Questar Gas issued $150 million of private-placement notes in December
    2012 at an average rate of 3.20% to replace $133.5 million of maturing
    debt averaging 6.1%;
  *Wexpro had a net drilling-success rate of 94%, participating in 98 gross
    wells (57.9 net), which resulted in 43.5 net successful gas and oil wells,
    with 10.8 net wells waiting on completion;
  *Wexpro grew its ending investment base 12% to a record $531 million in
    2012;
  *The "Wexpro II" agreement was submitted for expedited hearing and review
    with the public service commissions of Utah and Wyoming;
  *Questar Pipeline invested $21.7 million on two system expansion projects
    in 2012;
  *Questar Pipeline initiated a strategic review of certain pipeline assets;
  *Questar spent $92 million to repurchase 4.6 million shares of its common
    stock in 2012, bringing the outstanding share count to the target level of
    175 million shares.

Questar Gas

For 2012, Questar Gas reported net income of $47.1 million, including a $1.5
million after-tax charge for the retirement incentive. Questar Gas generated
$148.0 million of Adjusted EBITDA for the year. This compares to net income of
$46.1 million and Adjusted EBITDA of $144.0 million for 2011. On a financial
basis, in 2012 Questar Gas earned a 10.5% ROE, excluding the retirement
charge. Changes in Questar Gas margin (revenues less cost of natural gas sold)
are summarized in the following table:

CHANGE IN QUESTAR GAS MARGIN
                                                          
                                            3 Months Ended     12 Months Ended

                                         December 31,     December 31,

                                            2012 vs. 2011      2012 vs. 2011
                                            (in millions)
New customers                               $    1.0           $    3.1
Change in rates                             0.2                0.2
Demand-side-management cost recovery        (5.2       )       (3.3        )
Feeder line tracker                         2.4                5.9
Recovery of gas-cost portion of             0.4                (0.9        )
bad-debt costs
Other                                     1.8             0.8         
Increase                                  $    0.6        $    5.8    
                                                                           
                                                                           

As of December 31, 2012, Questar Gas served about 930,800 customers, an
increase of 11,500 customers, or 1.3%, from year-end 2011. Customer growth was
1.1% during 2011. New customers increased margin by about $3.1 million in
2012, up from $2.7 million in 2011. Changes in margin from
demand-side-management (DSM) cost-recovery revenues are offset by equivalent
changes in the program's expenses. Combined operating and maintenance (O&M)
and general and administrative (G&A) expenses, excluding DSM costs, were up 1%
to $143 per customer in 2012, compared to $141 a year earlier, primarily due
to higher employee-related costs.

During 2012, Questar Gas spent $58.4 million on its multi-year
infrastructure-upgrade program to replace aging high-pressure, large-diameter
steel pipe. By comparison, 2011 feeder-line replacement costs totaled $58.6
million. Questar Gas expects to spend about $55 million on the program
annually for several more years. In 2010, Utah regulators approved an
infrastructure-cost-tracking mechanism for the replacement program, thus
enabling the timely inclusion of related expenditures into rate base. Questar
Gas recognized $5.9 million of increased margin under this program in 2012
compared to $4.3 million in 2011.

In December 2012, Questar Gas issued $150 million of private-placement notes
at historically low coupon rates of 2.98% for a $40 million 12-year tranche
and 3.28% for a $110 million 15-year tranche, replacing $133.5 million of debt
maturing in 2012 and 2013 that averaged 6.1%. Maturing notes were initially
retired using lower cost short-term debt until the new long-term debt was
issued, reducing interest expense in 2012.

Wexpro

Wexpro grew 2012 net income 9% to $103.9 million and generated $236.1 million
of Adjusted EBITDA, up 10% over 2011. This growth was driven by a higher
average investment base which grew by 13% to $514.3 million for 2012. It
earned a 19.9% after-tax return on average investment base in 2012. Wexpro
recovers its costs and earns an unlevered after-tax return of approximately
20% on its average investment base under the terms of the Wexpro Agreement, a
long-standing agreement with the states of Utah and Wyoming. Currently,
Wexpro's natural gas production supplies more than half of the utility's
annual gas-supply requirements. Wexpro's efficient drilling program resulted
in finding costs below $1.00 per Mcfe in the Vermillion Basin and an 8%
reduction in cost-of-service prices per unit delivered in 2012. Wexpro
increased natural gas liquids (NGL) and oil revenues by 18% in 2012 compared
to 2011. NGL and oil revenues are shared with Questar Gas customers, thereby
benefitting both customers and shareholders. A summary of changes in Wexpro's
investment base is provided below:

CHANGE IN WEXPRO INVESTMENT BASE
                                          
                                             12 Months Ended December 31,
                                          2012             2011
                                             (in millions)
Beginning investment base                    $  474.4         $ 456.6
Successful development wells                 149.3              118.0
Depreciation, depletion and amortization     (73.9     )        (60.2   )
Change in deferred taxes                   (18.7     )      (40.0   )
Ending investment base                     $  531.1        $ 474.4 
                                                                        
                                                                        

Questar Pipeline

In 2012, Questar Pipeline reported net income of $64.7 million, including a
$0.6 million after-tax charge for the retirement incentive. Questar Pipeline
generated $180.8 million of Adjusted EBITDA for the year. This compares to net
income of $67.9 million and Adjusted EBITDA of $181.5 million for 2011.
Excluding the retirement charge, Questar Pipeline earned a 10.8% ROE. The drop
in net income was primarily due to lower revenues from transportation and NGLs
as well as higher depreciation, interest and G&A costs. The modest decrease in
transportation revenues was primarily from lower interruptible volumes and
reduced rates on some contract renewals. NGL revenues were down 10% for all of
2012 compared to 2011, reflecting lower NGL prices that more than offset
higher NGL sales volumes. Lower NGL revenues were partially offset by gas
received from Clay Basin storage customers. This gas is part of an agreement
that allows Questar Pipeline to recover any shortfall between the NGL revenues
and the cost of service for conditioning gas at Clay Basin to meet pipeline
gas-quality specifications. The value of this gas received, and subsequently
sold, represents most of Questar Pipeline's overall revenue increase for 2012.
During 2012, Questar Pipeline's combined O&M and G&A costs were up 4% compared
to 2011 levels. However, 14% higher transportation volumes in 2012 enabled O&M
and G&A expenses to remain at $0.10 per decatherm transported, the same as in
2011. At December 31, 2012, Questar Pipeline held net firm-transportation
contracts totaling 5,039 thousand decatherms (Mdth) per day, up 1% from 4,973
Mdth per day at December 31, 2011.

Questar Pipeline strategic review

In the fourth quarter of 2012, Questar Pipeline announced that it was
initiating a strategic review of certain pipeline assets, namely Southern
Trails and Overthrust pipelines. Initially, the primary focus of this review
is on the Southern Trails Pipeline, which appears to offer compelling
economics if converted back to its original purpose as a crude oil pipeline to
move production from two southwestern U.S. producing regions to refineries in
Southern California. Questar Pipeline is in the very early stages of this
process. During the first half of 2013, Questar Pipeline will review all
preliminary proposals received and determine the appropriate path to provide
shareholders with the greatest value.

Wexpro II hearings held

On January 30, 2013, a hearing was held before the Public Service Commission
of Utah to formally review Questar Gas Company's application and proposed
agreement to enable Wexpro to acquire additional oil and gas properties for
future development. The goal is to perpetuate the current program of providing
cost-of-service production for Questar Gas customers in Utah and Wyoming. This
agreement, referred to as "Wexpro II," is patterned after the terms of the
original 1981 Wexpro Agreement. This successful model has resulted in stable
natural gas prices and savings of about $1.3 billion to Questar Gas customers
over the past three decades while providing stable returns to shareholders.
Questar Gas filed for expedited review and expects a ruling in the first half
of 2013.

Questar Fueling to build CNG-fueling facilities

Questar Fueling announced that it had signed an agreement to build, own and
operate a CNG-fueling facility in Houston, Texas, that will serve up to 200
natural gas-powered trucks operated by Swift Transportation and Central
Freight Lines. These trucks are projected to use about 5 million
gallon-equivalents of natural gas per year. Part of this facility will also
offer public refueling to other CNG-powered vehicles. Additionally, Questar
Fueling is in the final stages of contract negotiations to build dedicated
CNG-fueling facilities for other parties. While not expected to make
meaningful earnings or cash flow contributions in the early years, Questar
sees long-term growth potential for the use of natural gas for transportation.

Share repurchase program completed

During 2012, Questar repurchased a total of 4.6 million shares of its common
stock for about $92 million, at an average price of $19.95 per share. The
program was authorized to repurchase up to $100 million of common stock
through the end of 2012, with the goal to bring the outstanding share count to
its current level of about 175 million shares. Going forward, the Board of
Directors authorized additional repurchases of up to 1 million shares per year
in order to maintain the share count at the current level.

2013 EPS guidance and outlook

For 2013, Questar affirmed that EPS may range from $1.12 to $1.20 per diluted
share. "Despite continuing challenges with commodity prices, government
policies, pension and property tax expenses, we are holding to our guidance
range," Jibson said. "In 2012, we made significant progress on three key
initiatives that have the potential to drive significant shareholder value in
2013 and beyond. We filed the Wexpro II agreement with Utah and Wyoming
regulators and expect a decision in the coming months. With the formation of
Questar Fueling and the signing of an initial benchmark contract, Questar is
well-positioned to be a major player in natural gas refueling infrastructure
across the nation.” In addition, Questar Pipeline has identified a potentially
attractive project to convert its Southern Trails pipeline back into crude oil
transport service. And last, but not least, strong cash flow generation from
Wexpro and Questar Pipeline will support continued reinvestment in our
businesses and future dividend growth," Jibson added.

Fourth-Quarter 2012 earnings teleconference

Questar management will discuss fourth-quarter 2012 results and the outlook
for 2013 in a conference call with investors Thursday, February 21, beginning
at 9:30 a.m. ET. The call can be accessed on the company website at
www.questar.com.

About Questar Corporation

Questar is a Rockies-based integrated natural gas company with an enterprise
value of about $5.5 billion, operating through three principal subsidiaries:

  *Questar Gas provides retail natural gas distribution in Utah, Wyoming and
    Idaho;
  *Wexpro develops and produces natural gas from cost-of-service reserves for
    Questar Gas customers; and
  *Questar Pipeline operates interstate natural gas pipelines and storage
    facilities in the western U.S. and provides other energy services.

                          Forward-Looking Statements

This document may contain or incorporate by reference information that
includes or is based upon "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking statements give
expectations or forecasts of future events. You can identify these statements
by the fact that they do not relate strictly to historical or current facts.
They use words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," and other words and terms of similar meaning in
connection with a discussion of future operating or financial performance. Any
or all forward-looking statements may turn out to be wrong. These statements
are based on current expectations and the current economic environment. They
involve a number of risks and uncertainties that are difficult to predict.
Actual results could differ materially from those expressed or implied in the
forward-looking statements. Factors that could cause actual results to differ
materially include, but are not limited to the following:

  *general economic conditions, including the performance of financial
    markets and interest rates;
  *changes in industry trends;
  *changes in laws or regulations; and
  *other factors, most of which are beyond Questar's control.

Questar undertakes no obligation to publicly correct or update the
forward-looking statements in this document, in other documents, or on the
website to reflect future events or circumstances. All such statements are
expressly qualified by this cautionary statement.

For more information, visit Questar's website at www.questar.com

QUESTAR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
                                                    
                              3 Months Ended             12 Months Ended
                              December 31,               December 31,
                           2012       2011         2012       2011
                              (in millions, except per-share amounts)
REVENUES                                                          
Questar Gas                   $ 281.0     $ 297.8        $ 859.7     $ 965.5
Wexpro                        9.0         8.4            36.1        31.5
Questar Pipeline            53.0      48.6        203.1     197.4   
Total Revenues              343.0     354.8       1,098.9   1,194.4 
                                                                     
OPERATING EXPENSES
Cost of sales (excluding
operating expenses shown      93.2        110.4          192.3       321.5
separately)
Operating and maintenance     47.6        49.3           180.8       175.9
General and                   32.8        34.6           120.8       117.9
administrative
Retirement incentive          4.9         —              4.9         —
Production and other          9.9         12.3           47.9        52.5
taxes
Depreciation, depletion     46.0      41.5        181.6     159.9   
and amortization
Total Operating Expenses      234.4       248.1          728.3       827.7
Net gain (loss) from        —         (0.1     )   5.1       0.2     
asset sales
OPERATING INCOME              108.6       106.6          375.7       366.9
Interest and other income     1.3         1.5            7.0         10.4
Income from                   0.9         0.9            3.7         3.8
unconsolidated affiliate
Interest expense            (13.6   )  (12.7    )   (57.9   )  (56.8   )
INCOME BEFORE INCOME          97.2        96.3           328.5       324.3
TAXES
Income taxes                (33.4   )  (34.7    )   (116.5  )  (116.4  )
NET INCOME                  $ 63.8    $ 61.6      $ 212.0   $ 207.9 
                                                                     
EARNINGS PER COMMON SHARE
Basic                         $ 0.36      $ 0.34         $ 1.20      $ 1.17
Diluted                       0.36        0.34           1.19        1.16
Weighted-average common
shares outstanding
Used in basic calculation     175.2       177.7          176.5       177.4
Used in diluted               175.9       179.0          177.5       178.8
calculation
Dividends per common          $ 0.17      $ 0.1625       $ 0.665     $ 0.62
share
                                                                             
                                                                             

QUESTAR CORPORATION
OPERATIONS BY LINE OF BUSINESS
(Unaudited)
                                                
                           3 Months Ended            12 Months Ended
                           December 31,              December 31,
                        2012       2011        2012         2011
                           (in millions)
Revenues from                                                   
Unaffiliated Customers
Questar Gas                $ 281.0     $ 297.8       $ 859.7       $ 965.5
Wexpro                     9.0         8.4           36.1          31.5
Questar Pipeline         53.0      48.6       203.1       197.4     
Total                    $ 343.0   $ 354.8    $ 1,098.9   $ 1,194.4 
                                                                   
Revenues from
Affiliated Companies
Questar Gas                $ 0.2       $ 1.1         $ 2.5         $ 3.3
Wexpro                     69.5        67.2          274.1         253.6
Questar Pipeline         19.2      18.6       74.4        74.4      
Total                    $ 88.9    $ 86.9     $ 351.0     $ 331.3   
                                                                   
Operating Income
(Loss)
Questar Gas                $ 40.3      $ 37.5        $ 92.9        $ 94.1
Wexpro                     40.2        37.4          158.1         145.7
Questar Pipeline           28.8        31.0          124.0         125.9
Corporate and other      (0.7    )  0.7        0.7         1.2       
Total                    $ 108.6   $ 106.6    $ 375.7     $ 366.9   
                                                                   
Net Income (Loss)
Questar Gas                $ 23.8      $ 20.2        $ 47.1        $ 46.1
Wexpro                     27.4        23.6          103.9         95.2
Questar Pipeline           14.9        17.2          64.7          67.9
Corporate and other      (2.3    )  0.6        (3.7      )  (1.3      )
Total                    $ 63.8    $ 61.6     $ 212.0     $ 207.9   
                                                                             
                                                                             

QUESTAR CORPORATION
SELECTED OPERATING STATISTICS
(Unaudited)
                                                     
                             3 Months Ended               12 Months Ended
                             December 31,                 December 31,
                          2012         2011         2012       2011
QUESTAR GAS                              
Natural gas volumes
(MMdth)
Residential and            31.9        37.4        96.2      113.3   
commercial sales
Industrial sales             1.1           1.3            4.7        5.0
Transportation for         16.2        14.2        62.0      52.5    
industrial customers
Total industrial           17.3        15.5        66.7      57.5    
Total deliveries           49.2        52.9        162.9     170.8   
                                                                     
Natural gas revenue (per
dth)
Residential and              $ 8.13        $ 7.46         $ 8.19     $ 7.88
commercial sales
Industrial sales             7.84          6.08           5.79       6.03
Transportation for           0.20          0.20           0.19       0.21
industrial customers
Colder (warmer) than         (16      %)   2        %     (16     %) 7       %
normal temperatures
Temperature-adjusted         34.9          36.5           108.4      111.1
usage per customer (dth)
Customers at Dec. 31,        931           919
(thousands)
                                                                     
WEXPRO
Production volumes
Natural gas (Bcf)            13.6          13.4           57.5       50.5
Oil and NGL (Mbbl)           182          157            665        467
Oil and NGL sales price      $ 76.69       $ 81.31        $ 80.61    $ 82.11
(per bbl)
Investment base at Dec.      $ 531.1       $ 474.4
31, (in millions)
                                                                     
QUESTAR PIPELINE
Natural
gas-transportation
volumes (MMdth)
For unaffiliated             204.0         172.3          785.4      665.8
customers
For Questar Gas            23.4        28.5        107.2     116.9   
Total transportation       227.4       200.8       892.6     782.7   
                                                                     
Transportation revenue       $ 0.21        $ 0.25         $ 0.22     $ 0.25
(per dth)
Net firm-daily
transportation demand at     5,039         4,973
Dec. 31, (Mdth)
Natural gas processing
NGL sales (Mbbl)             52            38             253        233
NGL sales price (per         $ 57.45       $ 73.71        $ 61.16    $ 73.77
bbl)
                                                                             
                                                                             

QUESTAR CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                              
                                                December 31,      December 31,
                                              2012            2011
                                                (in millions)
ASSETS
Current Assets
Cash and cash equivalents                       $  16.8          $  11.6
Accounts and notes receivable, net              114.3             123.9
Unbilled gas accounts receivable                78.3              75.4
Inventories                                     63.5              66.0
Prepaid expenses and other                      13.1              10.7
Current regulatory assets                       46.7              31.7
Deferred income taxes - current                13.0           16.1       
Total Current Assets                           345.7          335.4      
Property, Plant and Equipment                   5,333.3           4,984.1
Accumulated depreciation, depletion and        (2,016.3    )   (1,885.7   )
amortization
Net Property, Plant and Equipment              3,317.0        3,098.4    
Investment in unconsolidated affiliate          26.5              27.3
Noncurrent regulatory and other assets         67.9           71.7       
TOTAL ASSETS                                   $  3,757.1    $  3,532.8 
                                                                  
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt                                 $   263.0         $  219.0
Accounts payable and accrued expenses           235.2             242.9
Current regulatory liabilities                  5.8               15.4
Current portion of long-term debt and capital  42.7           91.5       
lease obligation
Total Current Liabilities                      546.7          568.8      
Long-term debt and capital lease obligation,    1,138.2           993.0
less current portion
Deferred income taxes                           603.4             500.2
Noncurrent regulatory and other liabilities     433.2             437.3
COMMON SHAREHOLDERS' EQUITY
Common Shareholders' Equity                    1,035.6        1,033.5    
TOTAL LIABILITIES AND COMMON SHAREHOLDERS'     $  3,757.1    $  3,532.8 
EQUITY
                                                                             
                                                                             

QUESTAR CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                    
                                                       12 Months Ended
                                                       December 31,
                                                    2012        2011
                                                       (in millions)
OPERATING ACTIVITIES                                              
Net income                                             $ 212.0       $ 207.9
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization               189.2         169.4
Deferred income taxes                                  118.6         96.2
Share-based compensation                               9.9           10.1
Net (gain) from asset sales                            (5.1    )     (0.2    )
(Income) from unconsolidated affiliate                 (3.7    )     (3.8    )
Distributions from unconsolidated affiliate and        4.9           4.5
other
Changes in operating assets and liabilities          (58.1   )   4.9     
NET CASH PROVIDED BY OPERATING ACTIVITIES            467.7      489.0   
                                                                     
INVESTING ACTIVITIES
Property, plant and equipment                          (370.7  )     (367.7  )
Cash used in disposition of assets                     (3.0    )     (3.5    )
Proceeds from disposition of assets                  8.4        0.3     
NET CASH USED IN INVESTING ACTIVITIES                (365.3  )   (370.9  )
                                                                     
FINANCING ACTIVITIES
Common stock                                           (80.3   )     2.7
Long-term debt issued, net of issuance costs           148.8         174.9
Long-term debt and capital lease obligation repaid     (92.3   )     (182.0  )
Change in short-term debt                              44.0          (23.0   )
Dividends paid                                         (117.4  )     (110.1  )
Tax benefits from share-based compensation           —          9.2     
NET CASH USED IN FINANCING ACTIVITIES                (97.2   )   (128.3  )
Change in cash and cash equivalents                    5.2           (10.2   )
Beginning cash and cash equivalents                  11.6       21.8    
Ending cash and cash equivalents                     $ 16.8     $ 11.6  
                                                                             
                                                                             

QUESTAR CORPORATION
NON-GAAP FINANCIAL MEASURES
(Unaudited)

In addition to financial measures calculated in accordance with generally
accepted accounting principles (GAAP), this press release contains non-GAAP
financial measures. The Company believes that these non-GAAP financial
measures are useful to investors because they provide alternative methods for
assessing the Company's ongoing operating results and cash flows. The
Company's management uses these non-GAAP financial measures for the same
purposes, and for planning and forecasting purposes. The presentation of
non-GAAP financial measures is not meant to be a substitute for financial
measures calculated in accordance with GAAP.

1. Management believes that net income, diluted earnings per common share and
ROE before the 2012 retirement incentive charge are useful measures to assess
ongoing results of operations because this charge was unusual and is not
expected to recur.

The following table reconciles GAAP net income and diluted earnings per common
share to non-GAAP net income and diluted earnings per common share before the
2012 retirement incentive charge for the three months ended December31, 2012:

                  Questar       Questar   Wexpro    Questar   Corporate,
                     Consolidated   Gas                   Pipeline   Other
                   (in millions, except earnings per share)
Net income           $   63.8      $ 23.8    $ 27.4    $ 14.9    $  (2.3  )
(loss)
Retirement
incentive            4.9            2.4        0.2        0.9        1.4
expense
Income taxes on
retirement         (1.9      )   (0.9   )  (0.1   )  (0.3   )  (0.6     )
incentive
After-tax
retirement         3.0          1.5      0.1      0.6      0.8      
incentive
Net income
(loss) before      $   66.8     $ 25.3   $ 27.5   $ 15.5   $  (1.5  )
retirement
incentive
                                                                     
EARNINGS PER
COMMON SHARE
Diluted              $   0.36
Diluted
attributable to    0.02      
retirement
incentive
Diluted before
retirement         $   0.38  
incentive
Weighted-average
common shares
outstanding
Used in diluted      175.9
calculation
                                                                     
                                                                     

The following table reconciles GAAP net income, diluted earnings per common
share and ROE to non-GAAP net income, diluted earnings per common share and
ROE before the 2012 retirement incentive charge for the twelve months ended
December31, 2012:

                     Questar        Questar                 Questar     Corporate,
                                Gas        Wexpro     Pipeline   Other
                     Consolidated
                   (in millions, except earnings per share)
Net income           $  212.0      $ 47.1     $ 103.9    $ 64.7     $  (3.7  )
(loss) [1]
Retirement
incentive            4.9            2.4         0.2         0.9         1.4
expense
Income taxes on
retirement         (1.9       )  (0.9    )  (0.1    )  (0.3    )  (0.6     )
incentive
After-tax
retirement         3.0          1.5       0.1       0.6       0.8      
incentive
Net income
(loss) before      $  215.0     $ 48.6    $ 104.0   $ 65.3    $  (2.9  )
retire.
incentive [3]
                                                                        
EARNINGS PER
COMMON SHARE
Diluted              $  1.19
Diluted
attributable to    0.02       
retirement
incentive
Diluted before
retirement         $  1.21    
incentive
Weighted-average
common shares
outstanding
Used in diluted      177.5
calculation
                                                                        
Return on
Average Common
Equity
Average common
shareholders'        $  1,034.6     $ 460.0     $ 506.9     $ 604.0
equity [2]
Change in
average common
shareholders'
equity             1.5          0.8       0.1       0.3     
attributable to
retirement
incentive
Average common
shareholders'
equity before      $  1,036.1   $ 460.8   $ 507.0   $ 604.3 
retirement
incentive [4]
                                                                        
Return on
average common       20.5       %   10.2    %   20.5    %   10.7    %
equity [1] ÷ [2]
Change in return
on average
common equity      0.3        %  0.3     %  —       %  0.1     %
attributable to
retirement
incentive
Return on
average common
equity before      20.8       %  10.5    %  20.5    %  10.8    %
retirement
incentive [3] ÷
[4]
                                                                        
                                                                        

2. Management defines Adjusted EBITDA as net income (loss) before the
following items: interest expense, income taxes, depreciation, depletion and
amortization, net gain or loss from asset sales, abandonments and impairments,
and other special items. Management believes Adjusted EBITDA is an important
measure of the Company's cash flow and liquidity, and a key measure for
comparing the Company's financial performance to other companies.

The following table reconciles Questar's net income (loss) to Adjusted EBITDA
for the three months ended December31, 2012:

                  Questar       Questar   Wexpro    Questar   Corporate,
                    Consolidated   Gas                   Pipeline   Other
                   (in millions)
Net income (loss)   $   63.8     $ 23.8    $ 27.4    $ 14.9    $  (2.3  )
Interest expense    13.6           5.0        —          6.5        2.1
Income taxes        33.4           13.2       13.8       8.6        (2.2     )
Depreciation,
depletion and       46.0           12.2       19.2       13.7       0.9
amortization
Net (gain) loss     —              —          0.1        (0.1   )   —
from asset sales
Retirement         4.9          2.4      0.2      0.9      1.4      
incentive
Adjusted EBITDA    $   161.7   $ 56.6   $ 60.7   $ 44.5   $  (0.1  )
                                                                             
                                                                             

The following table reconciles Questar's net income to Adjusted EBITDA for the
three months ended December31, 2011:

                 Questar       Questar   Wexpro    Questar   Corporate,
                    Consolidated   Gas                   Pipeline   Other
                  (in millions)
Net income          $  61.6       $ 20.2    $ 23.6    $ 17.2    $  0.6
Interest            12.7           6.4        —          5.0        1.3
expense
Income taxes        34.7           12.0       14.6       9.4        (1.3    )
Depreciation,
depletion and       41.5           11.6       16.5       13.3       0.1
amortization
Net loss from     0.1          —        0.1      —        —       
asset sales
Adjusted EBITDA   $  150.6     $ 50.2   $ 54.8   $ 44.9   $  0.7  
                                                                            
                                                                            

The following table reconciles Questar's net income (loss) to Adjusted EBITDA
for the twelve months ended December31, 2012:

               Questar       Questar    Wexpro     Questar    Corporate,
                  Consolidated   Gas                     Pipeline    Other
                (in millions)
Net income        $  212.0      $ 47.1     $ 103.9    $ 64.7     $  (3.7  )
(loss)
Interest          57.9           24.1        —           26.3        7.5
expense
Income taxes      116.5          27.2        57.0        37.3        (5.0     )
Depreciation,
depletion and     181.6          47.2        77.4        54.3        2.7
amortization
Net (gain)
from asset        (5.1      )    —           (2.4    )   (2.7    )   —
sales
Retirement      4.9          2.4       0.2       0.9       1.4      
incentive
Adjusted        $  567.8     $ 148.0   $ 236.1   $ 180.8   $  2.9   
EBITDA
                                                                              
                                                                              

The following table reconciles Questar's net income (loss) to Adjusted EBITDA
for the twelve months ended December31, 2011:

               Questar       Questar    Wexpro     Questar    Corporate,
                  Consolidated   Gas                     Pipeline    Other
                (in millions)
Net income        $  207.9      $ 46.1     $ 95.2     $ 67.9     $  (1.3  )
(loss)
Interest          56.8           25.9        —           24.5        6.4
expense
Income taxes      116.4          27.5        54.7        38.2        (4.0     )
Depreciation,
depletion and     159.9          44.5        63.9        51.2        0.3
amortization
Net (gain)
loss from       (0.2      )   —         0.1       (0.3    )  —        
asset sales
Adjusted        $  540.8     $ 144.0   $ 213.9   $ 181.5   $  1.4   
EBITDA
                                                                              
                                                                              

Contact:

Questar Corporation
Investors: Tony Ivins, 801-324-5218
Media:Chad Jones, 801-324-5495