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Questar Reports First-Quarter 2013 Net Income of $72.9 Million



  Questar Reports First-Quarter 2013 Net Income of $72.9 Million

                         Regulators approve Wexpro II

                           2013 guidance maintained

Business Wire

SALT LAKE CITY -- April 30, 2013

Questar Corporation (NYSE:STR) reported first-quarter 2013 net income of $72.9
million, or $0.41 per diluted share compared to first-quarter 2012 net income
of $75.2 million, or $0.42 per diluted share. Adjusted earnings before
interest, taxes, depreciation and amortization (Adjusted EBITDA) for the
quarter were up 5% to $183.8 million compared to $175.2 million in the
year-ago period. Return on average common equity (ROE) was 19.4% for the 12
months ended March 31, 2013, compared to 19.6% for the same period in 2012.

NET INCOME (LOSS) BY SUBSIDIARY
                              
                               3 Months Ended March 31,
                               2013         2012         Change
                               (in millions, except earnings per share)
Questar Gas                    $  37.0      $ 34.9       $ 2.1       6  %
Wexpro                         26.3         24.3         2.0         8  %
Questar Pipeline               15.8         16.6         (0.8    )   (5 %)
Corporate and other            (6.2     )   (0.6   )     (5.6    )   NM
Total net income               $  72.9      $ 75.2       $ (2.3  )   (3 %)
Earnings per diluted share     $  0.41      $ 0.42       $ (0.01 )   (2 %)
Average diluted shares         176.1        179.3        (3.2    )   (2 %)
                                                                         
                                                                         

ADJUSTED EBITDA BY SUBSIDIARY^(a)
                         
                          3 Months Ended March 31,
                          2013        2012          Change
                          (in millions)
Questar Gas               $ 77.6      $ 74.8        $ 2.8     4  %
Wexpro                    62.4        54.5          7.9       14 %
Questar Pipeline          45.5        46.2          (0.7  )   (2 %)
Corporate and other       (1.7    )   (0.3    )     (1.4  )   NM
Total Adjusted EBITDA     $ 183.8     $ 175.2       $ 8.6     5  %

       Management defines Adjusted EBITDA as net income (loss) before gains
       and losses from asset sales, interest expense, depreciation, depletion
^(a)   and amortization, abandonments and impairments, other special items and
       income taxes. See computations on the last page of the attached
       financial statements.
        

“Each of Questar's business units performed as expected in the first quarter,”
said Ronald W. Jibson, Questar chairman, president and CEO. “Questar Gas
posted a 6% rise in net income in the first quarter. Wexpro's net income rose
by 8% while Questar Pipeline's income was 5% lower compared to the first
quarter of 2012. Adjusted EBITDA in the first quarter of 2013 was about $184
million, up 5% from the same quarter in 2012. I am also pleased to report that
Utah and Wyoming regulators recently approved Wexpro II, allowing us an
opportunity to replicate the long-term success of the original Wexpro
Agreement by acquiring properties for future cost-of-service gas development.
While we recognize that certain expense challenges continue, we remain
confident in our current 2013 earnings guidance range of $1.12 to $1.20 per
diluted share. We are also excited about opportunities we are seeing at each
of our business units.”

Other recent highlights include:

  * Questar Gas's total deliveries increased 18% in the first quarter compared
    to the 2012 period, reflecting 31% colder temperatures than for the first
    quarter of 2012.
  * Questar Gas's customer growth rate increased to 1.5%, up from 1.0% last
    year.
  * Questar Fueling entered into three contracts to design, build and manage
    compressed natural gas (CNG) fueling facilities for a major trucking
    company and a consumer-products manufacturer.
  * Wexpro's investment base grew by 7% over the past 12 months to $526.8
    million, up from $492.5 million last year.
  * Questar Pipeline's strategic review of the Southern Trails Pipeline is
    confirming a potential opportunity to convert the pipeline back to
    crude-oil service from natural gas.
  * Questar Pipeline received FERC approval to construct and operate two
    system expansion projects in Utah and Wyoming.
  * Questar Corporation increased the size of its five-year revolving credit
    facility from $500 million to $750 million and extended its maturity to
    April 2018, providing additional financial and operational flexibility.

Questar Gas

Questar Gas's first-quarter 2013 net income rose 6% to $37.0 million, up from
$34.9 million in the first quarter of 2012. Adjusted EBITDA was $77.6 million
in the current quarter compared to $74.8 million for the 2012 quarter. On a
financial basis, Questar Gas earned a 10.1% ROE for the 12 months ended March
31, 2013. Changes in Questar Gas margin (revenues less cost of gas sold) are
summarized in the following table:

CHANGE IN QUESTAR GAS MARGIN
                                                 
                                                  3 Months Ended
                                                  March 31,
                                                  2013 vs. 2012
                                                  (in millions)
Customer growth                                   $   1.5
Demand-side-management cost recovery              (8.0       )
Customers switching to transportation service     0.5
Infrastructure-replacement cost recovery          3.5
Other                                             (0.1       )
Decrease                                          $   (2.6   )
                                                              
                                                              

As of March 31, 2013, Questar Gas served about 937,400 customers, an increase
of over 14,000 customers, or 1.5%, compared to 1.0% growth a year ago.
Customer growth has continued to accelerate over the past year. New customers
increased margin by about $1.5 million for the quarter. 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 3%
to about $38 per customer for the three months ended March 31, 2013, compared
to $37 a year earlier, primarily due to higher employee-related and allocated
corporate costs.

Questar Gas's multi-year infrastructure-upgrade program continues to be a
safety and growth priority. The initial focus was on replacing aging
high-pressure, large-diameter steel pipe in high-consequence urban areas and
is largely complete. The current focus is on replacing similar pipe in less
densely populated areas. Questar Gas expects to spend $55 million to $60
million on the program in 2013, and a similar amount annually for several
years. Expenditures under this program are recovered under an
infrastructure-cost-tracking mechanism approved by Utah regulators in 2010,
enabling timely inclusion in rate base. Questar Gas recognized about $3.5
million of increased margin due to this program in the first three months of
2013. In the second quarter of 2013, Questar Gas will be filing a general rate
case with the Public Service Commission of Utah that will include a review of
the infrastructure-cost-tracking mechanism.

Wexpro

Wexpro's first-quarter 2013 net income rose 8% to $26.3 million, compared to
$24.3 million in the first quarter of 2012. Adjusted EBITDA grew 14% to $62.4
million in the current quarter versus $54.5 million last year. It earned a
19.9% after-tax return on its average investment base for the 12 months ended
March 31, 2013. Wexpro's investment base at quarter-end was $526.8 million, 7%
higher than the prior year quarter-end. Wexpro's efficient operations resulted
in low finding costs and a cost-of-service gas price that remains competitive
with the forward curve. Revenues from oil and natural gas liquids (NGL) sales
increased 13% in the quarter compared to the same period in 2012. Oil and NGL
revenues are shared with Questar Gas customers. Under the terms of the Wexpro
Agreement, a long-standing agreement with the states of Utah and Wyoming,
Wexpro recovers its costs and earns an unlevered after-tax return of
approximately 20% on its average investment base. Wexpro's natural gas
production currently provides more than half of the utility's annual
gas-supply requirements. A summary of changes in Wexpro's investment base is
provided below:

CHANGE IN WEXPRO INVESTMENT BASE
                                            
                                             12 Months Ended
                                             March 31, 2013
                                             (in millions)
Beginning investment base                    $   492.5
Successful development wells                 126.1
Depreciation, depletion and amortization     (75.7       )
Change in deferred taxes                     (16.1       )
Ending investment base                       $   526.8    
                                                          
                                                          

Wexpro II approved

On March 28, 2013, the Public Service Commission of Utah approved Wexpro II, a
new agreement that substantially duplicates the original Wexpro Agreement that
has benefitted Questar Gas customers and Questar shareholders for more than
three decades. On April 11, 2013, the Wyoming Public Service Commission issued
a bench order approving Wexpro II. “Since its 1981 creation, the Wexpro
Agreement has saved Questar Gas customers more than $1.3 billion and produced
an average return on investment of more than 20% for our shareholders,” said
Jibson. “This win-win model is unique in our industry, and we're confident we
can perpetuate this success by adding new properties under the new agreement.”
The 1981 agreement is a major reason Questar Gas's residential natural gas
rates are consistently among the lowest in the nation. With its contract-based
rate of return, Wexpro Company's economic model is similar to a regulated
utility. Wexpro Company's technical staff is currently evaluating properties
that could be acquired and considered for inclusion in this new opportunity to
duplicate Wexpro's proven success.

Questar Pipeline

Questar Pipeline reported first-quarter 2013 net income of $15.8 million, down
5% from $16.6 million a year ago. Questar Pipeline generated $45.5 million of
Adjusted EBITDA in the 2013 quarter and earned a 10.6% ROE for the 12 months
ended March 31, 2013. The dip in net income was primarily due to lower NGL
revenues and higher depreciation and amortization costs. NGL revenues were
down 37% in the first quarter of 2013 compared to the prior-year period,
reflecting both lower NGL sales volumes and prices. Depreciation and
amortization expenses were up due to higher property, plant and equipment
levels compared to a year ago. Questar Pipeline's combined O&M and G&A costs
were down 4% for the recent quarter when compared to the same quarter in 2012.
These lower costs together with slightly higher transportation volumes in the
first quarter of 2013 resulted in O&M and G&A expenses of $0.08 per decatherm
transported, compared to $0.09 per decatherm transported in the first quarter
of 2012. A summary of changes in Questar Pipeline revenues is provided below:

CHANGE IN QUESTAR PIPELINE REVENUES
                              
                               3 Months Ended
                               March 31,
                               2013 vs. 2012
                               (in millions)
Transportation                 $   0.7
Storage                        0.1
NGL sales - transportation     (0.1       )
NGL sales - field services     (1.6       )
Gathering and processing       (0.3       )
Energy services                (0.8       )
Natural gas sold               0.8         
Decrease                       $   (1.2   )
                                           
                                           

At March 31, 2013, Questar Pipeline held net firm-transportation contracts
totaling 5,119 thousand decatherms (Mdth) per day, up 3% from 4,947 Mdth per
day at March 31, 2012. The increase in transportation revenues was primarily
from higher seasonal revenues and a 2012 Uinta Basin expansion project.

Questar Pipeline strategic review update

In the fourth quarter of 2012, Questar Pipeline announced a strategic review
of Southern Trails Pipeline. The strategic review has confirmed a potential
opportunity to return the pipeline to crude-oil service. Questar Pipeline
continues to manage the project to achieve the greatest value for shareholders
and is analyzing all strategic options. Management expects to reach a decision
on Southern Trails by mid-year.

Corporate and other

Corporate and other operations reported a net loss of $6.2 million in the
first quarter of 2013, compared to a net loss of $0.6 million in the first
quarter of 2012. The variance was driven by higher estimated state income
taxes due to state tax law changes, higher mark-to-market valuations on
deferred compensation due to the recent rise in Questar's share price, and
start-up losses at Questar Fueling, which are aggregated at the corporate
level.

Questar Fueling signs new contracts

In January, Questar Fueling Company announced that it had signed an agreement
to build, own and operate a CNG-fueling facility in Houston, Texas on behalf
of Swift Transportation and Central Freight Lines. Questar Fueling also
recently signed two new contracts to build similar fueling facilities for a
consumer products manufacturer in two other locations to fuel its CNG-powered
delivery fleet. All three facilities are expected to be operational later this
year. Questar continues to see significant long-term growth potential for the
use of natural gas for transportation, though it will not likely make
meaningful earnings and cash flow contributions for a few years.

2013 EPS and capital guidance maintained

Questar management maintained its 2013 guidance range for earnings of $1.12 to
$1.20 per diluted share, unchanged from previously provided guidance.
Consolidated capital investment for 2013 is expected to be about $450 million.
Investment capital has been allocated to Questar's lines of business as
follows:

CAPITAL INVESTMENT FORECAST
                       
                        2013F
                        (in millions)
Questar Gas             $     195
Wexpro                  140
Questar Pipeline        85
Corporate and other     30
Total                   $     450
                               
                               

“We have previously stated that 2013 could be a relatively flat earnings year,
but we remain confident in our EPS guidance range of $1.12 to $1.20 per
diluted share,” Jibson said. “We achieved several milestones on three key
initiatives that could drive increases in shareholder value for many years to
come. First, Wexpro II was approved by Utah and Wyoming regulators, enabling
Wexpro production to indefinitely benefit both our utility customers and
shareholders by acquiring and developing additional properties. Second,
Questar Fueling signed three new contracts to provide CNG-fueling facilities
for third parties and is on its way to becoming a significant player in that
developing market. And third, the strategic review continues for Questar
Pipeline's Southern Trails Pipeline subsidiary, with a decision expected by
mid-2013. We will continue to update you on these initiatives and on earnings
guidance throughout the year as we have greater clarity.”

“We plan to continue to invest for long-term growth and expect to maintain an
industry-competitive growth rate with industry-leading returns. Wexpro
continues to demonstrate an ability to grow its investment base, production
and earnings with its existing properties and can now perpetuate that model
under the new Wexpro II agreement. At Questar Gas, strong customer growth and
the infrastructure-replacement program should support long-term earnings and
rate base growth. Questar Pipeline's strategic review is identifying new
long-term growth opportunities. Our commitment to customers and shareholders
is to continue delivering superior service, while profitably investing in and
growing our businesses.”

First-Quarter 2013 earnings teleconference

Questar management will discuss first-quarter 2013 results and the outlook for
the remainder of 2013 in a conference call with investors Wednesday, May 1,
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 $5.6 billion, operating through three principal subsidiaries:

  * Questar Gas Company provides retail natural gas distribution in Utah,
    Wyoming and Idaho;
  * Wexpro Company develops and produces natural gas from cost-of-service
    reserves for Questar Gas customers; and
  * Questar Pipeline Company 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 energy commodity prices;
  * 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
                             March 31,                  March 31,
                             2013        2012           2013         2012
                             (in millions, except per-share amounts)
REVENUES                                                            
Questar Gas                  $ 418.3     $ 366.0        $ 912.0      $ 917.6
Wexpro                       10.3        9.2            37.2         32.9
Questar Pipeline             48.3        50.5           200.9        199.6    
Total Revenues               476.9       425.7          1,150.1      1,150.1  
                                                                      
OPERATING EXPENSES
Cost of sales (excluding
operating expenses shown     199.7       152.7          239.3        264.3
separately)
Operating and                48.2        56.7           172.3        181.2
maintenance
General and                  33.8        29.1           125.5        114.0
administrative
Retirement incentive         —           —              4.9          —
Production and other         15.3        14.3           48.9         53.2
taxes
Depreciation, depletion      48.5        44.2           185.9        164.7    
and amortization
Total Operating Expenses     345.5       297.0          776.8        777.4
Net gain from asset          —           2.2            2.9          2.3      
sales
OPERATING INCOME             131.4       130.9          376.2        375.0
Interest and other           3.0         1.4            8.6          8.9
income
Income from                  0.9         0.9            3.7          3.8
unconsolidated affiliate
Interest expense             (14.5   )   (14.7    )     (57.7    )   (55.5   )
INCOME BEFORE INCOME         120.8       118.5          330.8        332.2
TAXES
Income taxes                 (47.9   )   (43.3    )     (121.1   )   (119.0  )
NET INCOME                   $ 72.9      $ 75.2         $ 209.7      $ 213.2  
                                                                      
EARNINGS PER COMMON SHARE
Basic                        $ 0.42      $ 0.42         $ 1.20       $ 1.19
Diluted                      0.41        0.42           1.19         1.19
Weighted-average common
shares outstanding
Used in basic                175.3       178.2          175.6        177.8
calculation
Used in diluted              176.1       179.3          176.5        179.1
calculation
Dividends per common         $ 0.17      $ 0.1625       $ 0.6725     $ 0.63
share
                                                                              
                                                                              

QUESTAR CORPORATION
OPERATIONS BY LINE OF BUSINESS
(Unaudited)
                                                    
                           3 Months Ended            12 Months Ended
                           March 31,                 March 31,
                           2013        2012          2013          2012
                           (in millions)
Revenues from                                                     
Unaffiliated Customers
Questar Gas                $ 418.3     $ 366.0       $ 912.0       $ 917.6
Wexpro                     10.3        9.2           37.2          32.9
Questar Pipeline           48.3        50.5          200.9         199.6      
Total                      $ 476.9     $ 425.7       $ 1,150.1     $ 1,150.1  
                                                                    
Revenues from
Affiliated Companies
Questar Gas                $ 0.3       $ 0.8         $ 2.0         $ 3.3
Wexpro                     72.8        65.7          281.2         258.4
Questar Pipeline           19.5        18.5          75.4          74.3       
Total                      $ 92.6      $ 85.0        $ 358.6       $ 336.0    
                                                                    
Operating Income
(Loss)
Questar Gas                $ 64.3      $ 61.8        $ 95.4        $ 97.1
Wexpro                     39.8        37.2          160.7         148.4
Questar Pipeline           30.2        31.8          122.4         128.4
Corporate and other        (2.9    )   0.1           (2.3      )   1.1        
Total                      $ 131.4     $ 130.9       $ 376.2       $ 375.0    
                                                                    
Net Income (Loss)
Questar Gas                $ 37.0      $ 34.9        $ 49.2        $ 47.6
Wexpro                     26.3        24.3          105.9         97.2
Questar Pipeline           15.8        16.6          63.9          69.2
Corporate and other        (6.2    )   (0.6    )     (9.3      )   (0.8      )
Total                      $ 72.9      $ 75.2        $ 209.7       $ 213.2    
                                                                              
                                                                              

QUESTAR CORPORATION
SELECTED OPERATING STATISTICS
(Unaudited)
                                                       
                           3 Months Ended               12 Months Ended
                           March 31,                    March 31,
                           2013         2012            2013         2012
QUESTAR GAS                                                         
Natural gas volumes
(MMdth)
Residential and            53.1         43.6            105.7        108.0    
commercial sales
Industrial sales           1.2          1.2             4.7          5.0
Transportation for         16.9         15.6            63.3         53.9     
industrial customers
Total industrial           18.1         16.8            68.0         58.9     
Total deliveries           71.2         60.4            173.7        166.9    
                                                                      
Natural gas revenue
(per dth)
Residential and            $ 7.53       $ 7.97          $ 7.95       $ 7.81
commercial sales
Industrial sales           5.85         5.62            5.85         5.91
Transportation for         0.21         0.18            0.20         0.21
industrial customers
Colder (warmer) than       18       %   (13      %)     (2      %)   —       %
normal temperatures
Temperature-adjusted
usage per customer         47.6         50.5            105.5        111.6
(dth)
Customers at March 31,     937          923
(thousands)
                                                                      
WEXPRO
Production volumes
Natural gas (Bcf)          15.4         15.0            57.9         52.8
Oil and NGL (Mbbl)         165          156             674          518
Oil and NGL sales          $ 83.22      $ 88.45         $ 79.60      $ 83.97
price (per bbl)
Investment base at
March 31, (in              $ 526.8      $ 492.5
millions)
                                                                      
QUESTAR PIPELINE
Natural
gas-transportation
volumes (MMdth)
For unaffiliated           181.8        183.9           783.3        687.2
customers
For Questar Gas            51.9         43.3            115.8        117.1    
Total transportation       233.7        227.2           899.1        804.3    
                                                                      
Transportation revenue     $ 0.21       $ 0.21          $ 0.22       $ 0.24
(per dth)
Net firm-daily
transportation demand      5,119        4,947
at March 31, (Mdth)
Natural gas processing
NGL sales (Mbbl)           47           62              238          229
NGL sales price (per       $ 62.64      $ 73.41         $ 58.23      $ 74.86
bbl)
                                                                              
                                                                              

QUESTAR CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                                 
                                      March 31,     March 31,     December 31,
                                      2013          2012          2012
                                      (in millions)
ASSETS
Current Assets
Cash and cash equivalents             $ 7.2         $ 8.1         $  16.8
Accounts and notes receivable,        141.2         129.8         114.3
net
Unbilled gas accounts receivable      50.5          42.7          78.3
Inventories                           39.8          44.9          63.5
Prepaid expenses and other            6.8           6.4           13.1
Current regulatory assets             31.3          26.1          46.7
Deferred income taxes - current       17.2          16.2          13.0        
Total Current Assets                  294.0         274.2         345.7       
Property, Plant and Equipment         5,399.4       5,101.7       5,333.3
Accumulated depreciation,             (2,059.1  )   (1,926.6  )   (2,016.3   )
depletion and amortization
Net Property, Plant and Equipment     3,340.3       3,175.1       3,317.0     
Investment in unconsolidated          26.1          27.0          26.5
affiliate
Noncurrent regulatory and other       68.2          63.5          67.9        
assets
TOTAL ASSETS                          $ 3,728.6     $ 3,539.8     $  3,757.1  
                                                                   
LIABILITIES AND COMMON
SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt                       $ 202.0       $ 129.0       $  263.0
Accounts payable and accrued          222.8         180.4         235.2
expenses
Current regulatory liabilities        36.8          62.4          5.8
Current portion of long-term debt     2.8           132.4         42.7        
and capital lease obligation
Total Current Liabilities             464.4         504.2         546.7       
Long-term debt and capital lease      1,137.6       992.2         1,138.2
obligation, less current portion
Deferred income taxes                 633.1         540.0         603.4
Noncurrent regulatory and other       412.3         422.4         433.2
liabilities
COMMON SHAREHOLDERS' EQUITY
Common Shareholders' Equity           1,081.2       1,081.0       1,035.6     
TOTAL LIABILITIES AND COMMON          $ 3,728.6     $ 3,539.8     $  3,757.1  
SHAREHOLDERS' EQUITY
                                                                              
                                                                              

QUESTAR CORPORATION
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
                                                          
                                                           3 Months Ended
                                                           March 31,
                                                           2013       2012
                                                           (in millions)
OPERATING ACTIVITIES                                                 
Net income                                                 $ 72.9     $ 75.2
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization                   50.2       46.3
Deferred income taxes                                      25.4       39.6
Share-based compensation                                   3.1        2.7
Net (gain) from asset sales                                —          (2.2   )
(Income) from unconsolidated affiliate                     (0.9   )   (0.9   )
Distributions from unconsolidated affiliate and other      1.5        1.3
Changes in operating assets and liabilities                53.8       58.7    
NET CASH PROVIDED BY OPERATING ACTIVITIES                  206.0      220.7   
                                                                       
INVESTING ACTIVITIES
Property, plant and equipment                              (84.0  )   (104.2 )
Cash used in disposition of assets                         (0.5   )   (0.7   )
Proceeds from disposition of assets                        0.1        —       
NET CASH USED IN INVESTING ACTIVITIES                      (84.4  )   (104.9 )
                                                                       
FINANCING ACTIVITIES
Common stock                                               (1.7   )   (3.8   )
Long-term debt and capital lease obligation repaid         (40.1  )   —
Change in short-term debt                                  (61.0  )   (90.0  )
Dividends paid                                             (29.8  )   (29.0  )
Tax benefits from share-based compensation                 1.4        3.5     
NET CASH USED IN FINANCING ACTIVITIES                      (131.2 )   (119.3 )
Change in cash and cash equivalents                        (9.6   )   (3.5   )
Beginning cash and cash equivalents                        16.8       11.6    
Ending cash and cash equivalents                           $ 7.2      $ 8.1   
                                                                              
                                                                              

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.

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 March 31, 2013:

                  Questar          Questar      Wexpro       Questar      Corporate,
                  Consolidated     Gas                       Pipeline     Other
                  (in millions)
Net income        $  72.9          $ 37.0       $ 26.3       $ 15.8       $  (6.2  )
(loss)
Interest          14.5             5.8          —            6.5          2.2
expense
Income taxes      47.9             22.7         14.7         9.1          1.4
Depreciation,
depletion and     48.5             12.1         21.4         14.1         0.9       
amortization
Adjusted          $  183.8         $ 77.6       $ 62.4       $ 45.5       $  (1.7  )
EBITDA
                                                                                    
                                                                                    

The following table reconciles Questar's net income (loss) to Adjusted EBITDA
for the three months ended March 31, 2012:

                  Questar          Questar      Wexpro       Questar      Corporate,
                  Consolidated     Gas                       Pipeline     Other
                  (in millions)
Net income        $  75.2          $ 34.9       $ 24.3       $ 16.6       $  (0.6  )
(loss)
Interest          14.7             6.8          —            6.6          1.3
expense
Income taxes      43.3             21.3         13.7         9.5          (1.2     )
Depreciation,
depletion and     44.2             11.8         18.7         13.5         0.2
amortization
Net (gain)
from asset        (2.2      )      —            (2.2   )     —            —         
sales
Adjusted          $  175.2         $ 74.8       $ 54.5       $ 46.2       $  (0.3  )
EBITDA
                                                                                    
                                                                                    

Contact:

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