[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended March 31, 2012 | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from ___ to ___ |
Exact name of registrant as specified in its charter | State or other jurisdiction of incorporation or organization | Commission File Number | (I.R.S. Employer Identification No.) |
Questar Corporation | Utah | 001-08796 | 87-0407509 |
Questar Gas Company | Utah | 333-69210 | 87-0155877 |
Questar Pipeline Company | Utah | 000-14147 | 87-0307414 |
Questar Corporation | Yes [X] No [ ] |
Questar Gas Company | Yes [X] No [ ] |
Questar Pipeline Company | Yes [X] No [ ] |
Questar Corporation | Yes [X] No [ ] |
Questar Gas Company | Yes [X] No [ ] |
Questar Pipeline Company | Yes [X] No [ ] |
Questar Corporation | Large accelerated filer [X] | Accelerated filer [ ] | Non-accelerated filer [ ] | Smaller reporting company [ ] |
Questar Gas Company | Large accelerated filer [ ] | Accelerated filer [ ] | Non-accelerated filer [X] | Smaller reporting company [ ] |
Questar Pipeline Company | Large accelerated filer [ ] | Accelerated filer [ ] | Non-accelerated filer [X] | Smaller reporting company [ ] |
Questar Corporation | Yes [ ] No [X] |
Questar Gas Company | Yes [ ] No [X] |
Questar Pipeline Company | Yes [ ] No [X] |
Questar Corporation | without par value | 178,197,754 |
Questar Gas Company | $2.50 per share par value | 9,189,626 |
Questar Pipeline Company | $1.00 per share par value | 6,550,843 |
Page | |||
Questar 2012 Form 10-Q | 2 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions, except per-share amounts) | |||||||||||||||
REVENUES | |||||||||||||||
Questar Gas | $ | 366.0 | $ | 413.9 | $ | 917.6 | $ | 955.0 | |||||||
Wexpro | 9.2 | 7.8 | 32.9 | 26.2 | |||||||||||
Questar Pipeline | 50.5 | 48.3 | 199.6 | 197.8 | |||||||||||
Total Revenues | 425.7 | 470.0 | 1,150.1 | 1,179.0 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Cost of sales (excluding operating expenses shown separately) | 152.7 | 209.9 | 264.3 | 332.5 | |||||||||||
Operating and maintenance | 56.7 | 51.4 | 181.2 | 175.4 | |||||||||||
General and administrative | 29.1 | 33.0 | 114.0 | 115.3 | |||||||||||
Separation costs | — | — | — | 11.5 | |||||||||||
Production and other taxes | 14.3 | 13.6 | 53.2 | 49.6 | |||||||||||
Depreciation, depletion and amortization | 44.2 | 39.4 | 164.7 | 153.9 | |||||||||||
Total Operating Expenses | 297.0 | 347.3 | 777.4 | 838.2 | |||||||||||
Net gain from asset sales | 2.2 | 0.1 | 2.3 | 0.5 | |||||||||||
OPERATING INCOME | 130.9 | 122.8 | 375.0 | 341.3 | |||||||||||
Interest and other income | 1.4 | 2.9 | 8.9 | 11.8 | |||||||||||
Income from unconsolidated affiliate | 0.9 | 0.9 | 3.8 | 3.7 | |||||||||||
Interest expense | (14.7 | ) | (16.0 | ) | (55.5 | ) | (58.8 | ) | |||||||
Income From Continuing Operations Before Income Taxes | 118.5 | 110.6 | 332.2 | 298.0 | |||||||||||
Income taxes | (43.3 | ) | (40.7 | ) | (119.0 | ) | (108.0 | ) | |||||||
INCOME FROM CONTINUING OPERATIONS | 75.2 | 69.9 | 213.2 | 190.0 | |||||||||||
Discontinued operations, net of income taxes | — | — | — | 69.5 | |||||||||||
Discontinued operations, noncontrolling interest | — | — | — | (0.7 | ) | ||||||||||
Total Discontinued Operations, Net Of Income Taxes | — | — | — | 68.8 | |||||||||||
NET INCOME ATTRIBUTABLE TO QUESTAR | $ | 75.2 | $ | 69.9 | $ | 213.2 | $ | 258.8 | |||||||
Earnings Per Common Share Attributable To Questar | |||||||||||||||
Basic from continuing operations | $ | 0.42 | $ | 0.40 | $ | 1.19 | $ | 1.08 | |||||||
Basic from discontinued operations | — | — | — | 0.39 | |||||||||||
Basic total | $ | 0.42 | $ | 0.40 | $ | 1.19 | $ | 1.47 | |||||||
Diluted from continuing operations | $ | 0.42 | $ | 0.39 | $ | 1.19 | $ | 1.06 | |||||||
Diluted from discontinued operations | — | — | — | 0.39 | |||||||||||
Diluted total | $ | 0.42 | $ | 0.39 | $ | 1.19 | $ | 1.45 | |||||||
Weighted-average common shares outstanding | |||||||||||||||
Used in basic calculation | 178.2 | 177.0 | 177.8 | 176.2 | |||||||||||
Used in diluted calculation | 179.3 | 178.5 | 179.1 | 178.5 | |||||||||||
Dividends per common share | $ | 0.1625 | $ | 0.1525 | $ | 0.63 | $ | 0.5625 |
Questar 2012 Form 10-Q | 3 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
Net income | $ | 75.2 | $ | 69.9 | $ | 213.2 | $ | 259.5 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Pension and other postretirement benefits | — | — | (159.9 | ) | 21.5 | ||||||||||
Interest rate cash flow hedges | 0.1 | — | (37.1 | ) | — | ||||||||||
Change in unrealized fair value of derivatives - discontinued operations | — | — | — | (437.9 | ) | ||||||||||
Income taxes | (0.1 | ) | — | 74.9 | 154.7 | ||||||||||
Net other comprehensive loss | — | — | (122.1 | ) | (261.7 | ) | |||||||||
COMPREHENSIVE INCOME (LOSS) | 75.2 | 69.9 | 91.1 | (2.2 | ) | ||||||||||
Discontinued operations, noncontrolling interest | — | — | — | (0.7 | ) | ||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO QUESTAR | $ | 75.2 | $ | 69.9 | $ | 91.1 | $ | (2.9 | ) |
Questar 2012 Form 10-Q | 4 |
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 8.1 | $ | — | $ | 11.6 | |||||
Accounts receivable, net | 129.8 | 132.3 | 123.9 | ||||||||
Unbilled gas accounts receivable | 42.7 | 62.5 | 75.4 | ||||||||
Gas stored underground | 13.0 | 11.3 | 40.3 | ||||||||
Materials and supplies | 31.9 | 21.2 | 25.7 | ||||||||
Current regulatory assets | 26.1 | 33.4 | 31.7 | ||||||||
Prepaid expenses and other | 6.4 | 6.5 | 10.7 | ||||||||
Deferred income taxes - current | 16.2 | 14.8 | 16.1 | ||||||||
Total Current Assets | 274.2 | 282.0 | 335.4 | ||||||||
Property, Plant and Equipment | 5,101.7 | 4,694.4 | 4,984.1 | ||||||||
Accumulated depreciation, depletion and amortization | (1,926.6 | ) | (1,796.6 | ) | (1,885.7 | ) | |||||
Net Property, Plant and Equipment | 3,175.1 | 2,897.8 | 3,098.4 | ||||||||
Investment in unconsolidated affiliate | 27.0 | 27.8 | 27.3 | ||||||||
Noncurrent regulatory assets | 20.1 | 20.6 | 21.0 | ||||||||
Other noncurrent assets | 43.4 | 39.3 | 50.7 | ||||||||
TOTAL ASSETS | $ | 3,539.8 | $ | 3,267.5 | $ | 3,532.8 | |||||
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | — | $ | 1.6 | $ | — | |||||
Short-term debt | 129.0 | 86.0 | 219.0 | ||||||||
Accounts payable and accrued expenses | 180.4 | 165.1 | 242.9 | ||||||||
Current regulatory liabilities | 62.4 | 38.5 | 15.4 | ||||||||
Current portion of long-term debt and capital lease obligation | 132.4 | 182.0 | 91.5 | ||||||||
Total Current Liabilities | 504.2 | 473.2 | 568.8 | ||||||||
Long-term debt and capital lease obligation, less current portion | 992.2 | 898.5 | 993.0 | ||||||||
Deferred income taxes | 540.0 | 509.0 | 500.2 | ||||||||
Asset retirement obligations | 64.1 | 64.2 | 63.8 | ||||||||
Defined benefit pension plan and other postretirement benefits | 290.4 | 149.3 | 309.7 | ||||||||
Customer contributions-in-aid-of-construction | 26.2 | 45.7 | 26.6 | ||||||||
Regulatory and other noncurrent liabilities | 41.7 | 37.9 | 37.2 | ||||||||
COMMON SHAREHOLDERS' EQUITY | |||||||||||
Common stock | 516.0 | 503.7 | 514.7 | ||||||||
Retained earnings | 791.1 | 690.0 | 744.9 | ||||||||
Accumulated other comprehensive (loss) | (226.1 | ) | (104.0 | ) | (226.1 | ) | |||||
Total Common Shareholders' Equity | 1,081.0 | 1,089.7 | 1,033.5 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | $ | 3,539.8 | $ | 3,267.5 | $ | 3,532.8 |
Questar 2012 Form 10-Q | 5 |
3 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 75.2 | $ | 69.9 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 46.3 | 41.8 | |||||
Deferred income taxes | 39.6 | 31.3 | |||||
Share-based compensation | 2.7 | 3.5 | |||||
Net (gain) from asset sales | (2.2 | ) | (0.1 | ) | |||
(Income) from unconsolidated affiliate | (0.9 | ) | (0.9 | ) | |||
Distributions from unconsolidated affiliate and other | 1.3 | 1.0 | |||||
Changes in operating assets and liabilities | 58.7 | 82.3 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 220.7 | 228.8 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (104.2 | ) | (76.0 | ) | |||
Cash used in disposition of assets | (0.7 | ) | (0.5 | ) | |||
NET CASH USED IN INVESTING ACTIVITIES | (104.9 | ) | (76.5 | ) | |||
FINANCING ACTIVITIES | |||||||
Common stock issued | 2.8 | 5.6 | |||||
Common stock repurchased | (6.6 | ) | (2.3 | ) | |||
Change in short-term debt | (90.0 | ) | (156.0 | ) | |||
Checks outstanding in excess of cash balances | — | 1.6 | |||||
Dividends paid | (29.0 | ) | (27.0 | ) | |||
Tax benefits from share-based compensation | 3.5 | 4.0 | |||||
NET CASH USED IN FINANCING ACTIVITIES | (119.3 | ) | (174.1 | ) | |||
Change in cash and cash equivalents | (3.5 | ) | (21.8 | ) | |||
Beginning cash and cash equivalents | 11.6 | 21.8 | |||||
Ending cash and cash equivalents | $ | 8.1 | $ | — | |||
Supplemental Disclosure of Noncash Investing and Financing Transaction: | |||||||
During 2012, Questar incurred a capital lease obligation of $40.8 million in connection with a lease agreement on a new headquarters building. |
Questar 2012 Form 10-Q | 6 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
REVENUES | |||||||||||||||
From unaffiliated customers | $ | 366.0 | $ | 413.9 | $ | 917.6 | $ | 955.0 | |||||||
From affiliated company | 0.8 | 0.8 | 3.3 | 1.6 | |||||||||||
Total Revenues | 366.8 | 414.7 | 920.9 | 956.6 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Cost of natural gas sold (excluding operating expenses shown separately) | 236.2 | 288.7 | 593.2 | 643.9 | |||||||||||
Operating and maintenance | 40.9 | 37.4 | 122.0 | 112.8 | |||||||||||
General and administrative | 11.7 | 14.6 | 48.1 | 53.2 | |||||||||||
Depreciation and amortization | 11.8 | 10.9 | 45.4 | 43.5 | |||||||||||
Other taxes | 4.4 | 4.3 | 15.1 | 14.4 | |||||||||||
Total Operating Expenses | 305.0 | 355.9 | 823.8 | 867.8 | |||||||||||
OPERATING INCOME | 61.8 | 58.8 | 97.1 | 88.8 | |||||||||||
Interest and other income | 1.2 | 1.6 | 5.0 | 6.8 | |||||||||||
Interest expense | (6.8 | ) | (6.6 | ) | (26.1 | ) | (26.0 | ) | |||||||
INCOME BEFORE INCOME TAXES | 56.2 | 53.8 | 76.0 | 69.6 | |||||||||||
Income taxes | (21.3 | ) | (20.4 | ) | (28.4 | ) | (25.4 | ) | |||||||
NET INCOME | $ | 34.9 | $ | 33.4 | $ | 47.6 | $ | 44.2 |
Questar 2012 Form 10-Q | 7 |
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 4.5 | $ | 0.4 | $ | 5.0 | |||||
Accounts receivable, net | 86.1 | 95.9 | 77.6 | ||||||||
Unbilled gas accounts receivable | 42.6 | 62.4 | 75.2 | ||||||||
Accounts receivable from affiliates | 11.6 | 4.3 | 1.8 | ||||||||
Gas stored underground | 12.9 | 10.6 | 40.3 | ||||||||
Materials and supplies | 13.9 | 9.0 | 12.2 | ||||||||
Current regulatory assets | 20.8 | 32.9 | 26.5 | ||||||||
Prepaid expenses and other | 1.8 | 1.9 | 3.1 | ||||||||
Deferred income taxes - current | 5.6 | 4.3 | 5.6 | ||||||||
Total Current Assets | 199.8 | 221.7 | 247.3 | ||||||||
Property, Plant and Equipment | 1,958.5 | 1,833.5 | 1,927.0 | ||||||||
Accumulated depreciation and amortization | (760.0 | ) | (731.9 | ) | (749.6 | ) | |||||
Net Property, Plant and Equipment | 1,198.5 | 1,101.6 | 1,177.4 | ||||||||
Noncurrent regulatory assets | 14.7 | 14.4 | 15.1 | ||||||||
Goodwill | 5.6 | 5.6 | 5.6 | ||||||||
Other noncurrent assets | 2.4 | 2.5 | 2.3 | ||||||||
TOTAL ASSETS | $ | 1,421.0 | $ | 1,345.8 | $ | 1,447.7 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Notes payable to Questar | $ | 66.4 | $ | 64.1 | $ | 142.7 | |||||
Accounts payable and accrued expenses | 105.6 | 98.9 | 112.3 | ||||||||
Accounts payable to affiliates | 45.4 | 37.4 | 41.9 | ||||||||
Customer advances | 6.7 | 8.0 | 25.0 | ||||||||
Current regulatory liabilities | 60.9 | 35.3 | 14.2 | ||||||||
Current portion of long-term debt | 131.5 | 2.0 | 91.5 | ||||||||
Total Current Liabilities | 416.5 | 245.7 | 427.6 | ||||||||
Long-term debt, less current portion | 236.5 | 368.0 | 276.5 | ||||||||
Deferred income taxes | 257.8 | 239.3 | 259.8 | ||||||||
Customer contributions-in-aid-of-construction | 26.2 | 45.7 | 26.6 | ||||||||
Regulatory and other noncurrent liabilities | 4.7 | 5.5 | 4.8 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 23.0 | 23.0 | 23.0 | ||||||||
Additional paid-in capital | 171.7 | 150.6 | 171.4 | ||||||||
Retained earnings | 284.6 | 268.0 | 258.0 | ||||||||
Total Common Shareholder's Equity | 479.3 | 441.6 | 452.4 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,421.0 | $ | 1,345.8 | $ | 1,447.7 |
Questar 2012 Form 10-Q | 8 |
3 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 34.9 | $ | 33.4 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 13.0 | 12.0 | |||||
Deferred income taxes | (2.0 | ) | 6.0 | ||||
Share-based compensation | 0.3 | 0.3 | |||||
Changes in operating assets and liabilities | 83.3 | 67.5 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 129.5 | 119.2 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (44.8 | ) | (25.9 | ) | |||
Cash used in disposition of assets | (0.6 | ) | (0.5 | ) | |||
NET CASH USED IN INVESTING ACTIVITIES | (45.4 | ) | (26.4 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes payable to Questar | (76.3 | ) | (89.5 | ) | |||
Dividends paid | (8.3 | ) | (7.6 | ) | |||
NET CASH USED IN FINANCING ACTIVITIES | (84.6 | ) | (97.1 | ) | |||
Change in cash and cash equivalents | (0.5 | ) | (4.3 | ) | |||
Beginning cash and cash equivalents | 5.0 | 4.7 | |||||
Ending cash and cash equivalents | $ | 4.5 | $ | 0.4 |
Questar 2012 Form 10-Q | 9 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
REVENUES | |||||||||||||||
From unaffiliated customers | $ | 50.5 | $ | 48.3 | $ | 199.6 | $ | 197.8 | |||||||
From affiliated companies | 18.5 | 18.6 | 74.3 | 73.8 | |||||||||||
Total Revenues | 69.0 | 66.9 | 273.9 | 271.6 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Operating and maintenance | 8.6 | 8.6 | 35.3 | 42.2 | |||||||||||
General and administrative | 12.1 | 13.1 | 45.5 | 43.5 | |||||||||||
Depreciation and amortization | 13.5 | 12.3 | 52.4 | 47.9 | |||||||||||
Other taxes | 2.5 | 3.1 | 9.5 | 9.7 | |||||||||||
Cost of goods sold (excluding operating expenses shown separately) | 0.5 | 0.6 | 3.0 | 2.5 | |||||||||||
Total Operating Expenses | 37.2 | 37.7 | 145.7 | 145.8 | |||||||||||
Net gain from asset sales | — | 0.1 | 0.2 | 0.8 | |||||||||||
OPERATING INCOME | 31.8 | 29.3 | 128.4 | 126.6 | |||||||||||
Interest and other income | — | 0.9 | — | 1.2 | |||||||||||
Income from unconsolidated affiliate | 0.9 | 0.9 | 3.8 | 3.7 | |||||||||||
Interest expense | (6.6 | ) | (7.1 | ) | (24.0 | ) | (28.5 | ) | |||||||
INCOME BEFORE INCOME TAXES | 26.1 | 24.0 | 108.2 | 103.0 | |||||||||||
Income taxes | (9.5 | ) | (8.7 | ) | (39.0 | ) | (37.5 | ) | |||||||
NET INCOME | $ | 16.6 | $ | 15.3 | $ | 69.2 | $ | 65.5 |
Questar 2012 Form 10-Q | 10 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
Net income | $ | 16.6 | $ | 15.3 | $ | 69.2 | $ | 65.5 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Interest rate cash flow hedges | 0.1 | — | (37.1 | ) | — | ||||||||||
Income taxes | (0.1 | ) | — | 13.7 | — | ||||||||||
Net other comprehensive loss | — | — | (23.4 | ) | — | ||||||||||
COMPREHENSIVE INCOME | $ | 16.6 | $ | 15.3 | $ | 45.8 | $ | 65.5 |
Questar 2012 Form 10-Q | 11 |
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 4.6 | $ | 0.9 | $ | 3.4 | |||||
Notes receivable from Questar | 14.5 | 40.7 | 8.8 | ||||||||
Accounts receivable, net | 19.3 | 25.5 | 19.1 | ||||||||
Accounts receivable from affiliates | 23.8 | 19.4 | 20.2 | ||||||||
Materials and supplies | 8.9 | 8.1 | 7.4 | ||||||||
Prepaid expenses and other | 8.4 | 3.9 | 9.6 | ||||||||
Deferred income taxes - current | 1.8 | 1.2 | 1.8 | ||||||||
Total Current Assets | 81.3 | 99.7 | 70.3 | ||||||||
Property, Plant and Equipment | 1,797.6 | 1,721.0 | 1,790.4 | ||||||||
Accumulated depreciation and amortization | (599.6 | ) | (557.4 | ) | (586.7 | ) | |||||
Net Property, Plant and Equipment | 1,198.0 | 1,163.6 | 1,203.7 | ||||||||
Investment in unconsolidated affiliate | 27.0 | 27.8 | 27.3 | ||||||||
Goodwill | 4.2 | 4.2 | 4.2 | ||||||||
Regulatory and other noncurrent assets | 9.5 | 9.1 | 10.1 | ||||||||
TOTAL ASSETS | $ | 1,320.0 | $ | 1,304.4 | $ | 1,315.6 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and accrued expenses | $ | 29.5 | $ | 32.4 | $ | 32.9 | |||||
Accounts payable to affiliates | 4.0 | 4.7 | 5.5 | ||||||||
Current portion of long-term debt | — | 180.0 | — | ||||||||
Total Current Liabilities | 33.5 | 217.1 | 38.4 | ||||||||
Long-term debt, less current portion | 458.9 | 280.9 | 459.0 | ||||||||
Deferred income taxes | 210.6 | 196.1 | 201.4 | ||||||||
Regulatory and other noncurrent liabilities | 13.5 | 15.4 | 14.7 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 6.6 | 6.6 | 6.6 | ||||||||
Additional paid-in capital | 346.2 | 344.5 | 345.7 | ||||||||
Retained earnings | 274.1 | 243.8 | 273.2 | ||||||||
Accumulated other comprehensive (loss) | (23.4 | ) | — | (23.4 | ) | ||||||
Total Common Shareholder's Equity | 603.5 | 594.9 | 602.1 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,320.0 | $ | 1,304.4 | $ | 1,315.6 |
Questar 2012 Form 10-Q | 12 |
3 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 16.6 | $ | 15.3 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 14.0 | 13.1 | |||||
Deferred income taxes | 9.1 | 16.0 | |||||
Share-based compensation | 0.6 | 0.5 | |||||
Net (gain) from asset sales | — | (0.1 | ) | ||||
(Income) from unconsolidated affiliate | (0.9 | ) | (0.9 | ) | |||
Distributions from unconsolidated affiliate and other | 1.3 | 1.0 | |||||
Changes in operating assets and liabilities | (5.9 | ) | (5.5 | ) | |||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 34.8 | 39.4 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (12.1 | ) | (25.7 | ) | |||
Cash used in disposition of assets | (0.1 | ) | — | ||||
NET CASH USED IN INVESTING ACTIVITIES | (12.2 | ) | (25.7 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes receivable from Questar | (5.7 | ) | (10.4 | ) | |||
Dividends paid | (15.7 | ) | (7.7 | ) | |||
NET CASH USED IN FINANCING ACTIVITIES | (21.4 | ) | (18.1 | ) | |||
Change in cash and cash equivalents | 1.2 | (4.4 | ) | ||||
Beginning cash and cash equivalents | 3.4 | 5.3 | |||||
Ending cash and cash equivalents | $ | 4.6 | $ | 0.9 |
Questar 2012 Form 10-Q | 13 |
Questar 2012 Form 10-Q | 14 |
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
Pension and other postretirement benefits | $ | (202.8 | ) | $ | (104.1 | ) | $ | (202.8 | ) | ||
Interest rate cash flow hedges | (23.4 | ) | — | (23.4 | ) | ||||||
Long-term investment | 0.1 | 0.1 | 0.1 | ||||||||
Accumulated other comprehensive (loss) | $ | (226.1 | ) | $ | (104.0 | ) | $ | (226.1 | ) |
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
Interest rate cash flow hedges | $ | (23.4 | ) | $ | — | $ | (23.4 | ) | |||
Accumulated other comprehensive (loss) | $ | (23.4 | ) | $ | — | $ | (23.4 | ) |
3 Months Ended | 12 Months Ended | ||||||||||
March 31, | March 31, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
(in millions) | |||||||||||
Weighted-average basic common shares outstanding | 178.2 | 177.0 | 177.8 | 176.2 | |||||||
Potential number of shares issuable under the Company's LTSIP | 1.1 | 1.5 | 1.3 | 2.3 | |||||||
Weighted-average diluted common shares outstanding | 179.3 | 178.5 | 179.1 | 178.5 |
Questar 2012 Form 10-Q | 15 |
3 Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
AROs at beginning of year | $ | 63.8 | $ | 60.9 | |||
Accretion | 0.7 | 0.7 | |||||
Liabilities incurred | 0.7 | 0.2 | |||||
Revisions | (1.1 | ) | 2.5 | ||||
Liabilities settled | — | (0.1 | ) | ||||
AROs at March 31, | $ | 64.1 | $ | 64.2 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 8.1 | $ | 8.1 | $ | — | $ | — | $ | 11.6 | $ | 11.6 | |||||||||||
Long-term investment | 1 | 14.5 | 14.5 | 13.4 | 13.4 | 14.4 | 14.4 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | — | — | 1.6 | 1.6 | — | — | |||||||||||||||||
Short-term debt | 1 | 129.0 | 129.0 | 86.0 | 86.0 | 219.0 | 219.0 | |||||||||||||||||
Long-term debt, including current portion | 2 | 1,083.8 | 1,219.4 | 1,080.5 | 1,159.2 | 1,084.5 | 1,223.4 |
Questar 2012 Form 10-Q | 16 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 4.5 | $ | 4.5 | $ | 0.4 | $ | 0.4 | $ | 5.0 | $ | 5.0 | |||||||||||
Financial liabilities | ||||||||||||||||||||||||
Notes payable to Questar | 1 | 66.4 | 66.4 | 64.1 | 64.1 | 142.7 | 142.7 | |||||||||||||||||
Long-term debt, including current portion | 2 | 368.0 | 438.6 | 370.0 | 417.0 | 368.0 | 445.4 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 4.6 | $ | 4.6 | $ | 0.9 | $ | 0.9 | $ | 3.4 | $ | 3.4 | |||||||||||
Notes receivable from Questar | 1 | 14.5 | 14.5 | 40.7 | 40.7 | 8.8 | 8.8 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Long-term debt, including current portion | 2 | 458.9 | 517.9 | 460.9 | 496.8 | 459.0 | 519.4 |
Questar 2012 Form 10-Q | 17 |
Questar 2012 Form 10-Q | 18 |
3 Months Ended | 12 Months Ended | |||||||||||||||
Financial Statement | March 31, | March 31, | ||||||||||||||
Instrument and Activity | Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | |||||||||||
(in millions) | ||||||||||||||||
Fair Value Hedge | ||||||||||||||||
Questar Corporation | ||||||||||||||||
Interest rate derivative instrument | ||||||||||||||||
Realized gain | Interest expense | $ | — | $ | — | $ | 9.8 | $ | — | |||||||
2.75% Notes due 2016 | ||||||||||||||||
Unrealized loss | Interest expense | — | — | (9.8 | ) | — | ||||||||||
Cash Flow Hedges | ||||||||||||||||
Questar Pipeline | ||||||||||||||||
Interest rate derivative instruments | ||||||||||||||||
Deferrals of effective portions | OCI | — | — | (37.3 | ) | — | ||||||||||
Losses reclassified from AOCI into earnings for effective portions | Interest expense | (0.1 | ) | — | (0.2 | ) | — |
Instrument | Balance Sheet Location | Mar. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | ||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Questar Corporation | ||||||||||||
Interest rate derivative instrument | Prepaid expenses and other | $ | — | $ | — | $ | 1.1 | |||||
Interest rate derivative instrument | Other noncurrent assets | — | — | 7.8 | ||||||||
Consolidated total - derivative assets | $ | — | $ | — | $ | 8.9 |
Questar 2012 Form 10-Q | 19 |
Options Outstanding | Price Range | Weighted-average Price | ||||||||||||
Balance at December 31, 2011 | 1,773,635 | $ | 3.70 | - | $ | 17.35 | $ | 8.54 | ||||||
Exercised | (149,117 | ) | 3.70 | - | 13.10 | 4.71 | ||||||||
Balance at March 31, 2012 | 1,624,518 | $ | 4.37 | - | $ | 17.35 | $ | 8.89 |
Options Outstanding | Options Exercisable | Unvested Options | ||||||||||||||||||||||||||||
Range of exercise prices | Number outstanding at March 31, 2012 | Weighted-average remaining term in years | Weighted-average exercise price | Number exercisable at March 31, 2012 | Weighted-average exercise price | Number unvested at March 31, 2012 | Weighted- average exercise price | |||||||||||||||||||||||
$ | 4.37 | - | $ | 7.84 | 756,811 | 1.1 | $ | 4.82 | 756,811 | $ | 4.82 | — | $ | — | ||||||||||||||||
11.40 | - | 12.43 | 539,174 | 2.7 | 11.78 | 539,174 | 11.78 | — | — | |||||||||||||||||||||
13.10 | - | 17.35 | 328,533 | 4.3 | 13.52 | 299,135 | 13.56 | 29,398 | 13.10 | |||||||||||||||||||||
1,624,518 | 2.3 | $ | 8.89 | 1,595,120 | $ | 8.81 | 29,398 | $ | 13.10 |
Restricted Shares Outstanding | Price Range | Weighted-average Price | ||||||||||||
Balance at December 31, 2011 | 771,550 | $ | 11.40 | - | $ | 17.97 | $ | 16.22 | ||||||
Granted | 357,678 | 19.39 | 19.39 | |||||||||||
Distributed | (257,510 | ) | 11.40 | - | 17.97 | 16.21 | ||||||||
Balance at March 31, 2012 | 871,718 | $ | 13.10 | - | $ | 19.39 | $ | 17.52 |
Questar 2012 Form 10-Q | 20 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
Revenues from Unaffiliated Customers | |||||||||||||||
Questar Gas | $ | 366.0 | $ | 413.9 | $ | 917.6 | $ | 955.0 | |||||||
Wexpro | 9.2 | 7.8 | 32.9 | 26.2 | |||||||||||
Questar Pipeline | 50.5 | 48.3 | 199.6 | 197.8 | |||||||||||
Total | $ | 425.7 | $ | 470.0 | $ | 1,150.1 | $ | 1,179.0 | |||||||
Revenues from Affiliated Companies | |||||||||||||||
Questar Gas | $ | 0.8 | $ | 0.8 | $ | 3.3 | $ | 1.6 | |||||||
Wexpro | 65.7 | 60.9 | 258.4 | 240.6 | |||||||||||
Questar Pipeline | 18.5 | 18.6 | 74.3 | 73.8 | |||||||||||
Total | $ | 85.0 | $ | 80.3 | $ | 336.0 | $ | 316.0 | |||||||
Operating Income (Loss) | |||||||||||||||
Questar Gas | $ | 61.8 | $ | 58.8 | $ | 97.1 | $ | 88.8 | |||||||
Wexpro | 37.2 | 34.5 | 148.4 | 135.4 | |||||||||||
Questar Pipeline | 31.8 | 29.3 | 128.4 | 126.6 | |||||||||||
Corporate | 0.1 | 0.2 | 1.1 | (9.5 | ) | ||||||||||
Total | $ | 130.9 | $ | 122.8 | $ | 375.0 | $ | 341.3 | |||||||
Income (Loss) From Continuing Operations | |||||||||||||||
Questar Gas | $ | 34.9 | $ | 33.4 | $ | 47.6 | $ | 44.2 | |||||||
Wexpro | 24.3 | 22.3 | 97.2 | 89.2 | |||||||||||
Questar Pipeline | 16.6 | 15.3 | 69.2 | 65.5 | |||||||||||
Corporate | (0.6 | ) | (1.1 | ) | (0.8 | ) | (8.9 | ) | |||||||
Total | $ | 75.2 | $ | 69.9 | $ | 213.2 | $ | 190.0 |
Questar 2012 Form 10-Q | 21 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 3.3 | $ | 2.2 | $ | 10.4 | $ | 9.1 | |||||||
Interest cost | 7.7 | 7.1 | 29.1 | 27.9 | |||||||||||
Expected return on plan assets | (7.7 | ) | (6.3 | ) | (27.4 | ) | (24.3 | ) | |||||||
Prior service and other costs | 0.2 | 0.3 | 1.0 | 1.1 | |||||||||||
Recognized net actuarial loss | 5.4 | 2.6 | 14.9 | 9.0 | |||||||||||
Curtailment costs | 0.1 | — | 0.9 | 2.2 | |||||||||||
Pension expense | $ | 9.0 | $ | 5.9 | $ | 28.9 | $ | 25.0 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 0.1 | $ | 0.2 | $ | 0.4 | $ | 0.6 | |||||||
Interest cost | 0.9 | 1.1 | 4.0 | 4.3 | |||||||||||
Expected return on plan assets | (0.5 | ) | (0.7 | ) | (2.4 | ) | (2.6 | ) | |||||||
Amortization of transition obligation | 0.4 | 0.5 | 1.8 | 1.9 | |||||||||||
Amortization of losses | 0.6 | 0.1 | 0.8 | 0.5 | |||||||||||
Curtailment costs | — | — | — | 0.3 | |||||||||||
Accretion of regulatory liability | 0.2 | 0.2 | 0.8 | 0.8 | |||||||||||
Postretirement benefits expense | $ | 1.7 | $ | 1.4 | $ | 5.4 | $ | 5.8 |
3 Months Ended | 12 Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions, except per-share amounts) | |||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | 529.7 | |||||||
Separation costs | — | — | — | 14.0 | |||||||||||
Operating income | — | — | — | 127.6 | |||||||||||
Discontinued operations, net of income taxes | $ | — | $ | — | $ | — | $ | 69.5 | |||||||
Discontinued operations, noncontrolling interest | — | — | — | (0.7 | ) | ||||||||||
Total discontinued operations, net of income taxes | $ | — | $ | — | $ | — | $ | 68.8 | |||||||
Earnings Per Common Share Attributable To Questar | |||||||||||||||
Basic from discontinued operations | $ | — | $ | — | $ | — | $ | 0.39 | |||||||
Diluted from discontinued operations | — | — | — | 0.39 |
Questar 2012 Form 10-Q | 22 |
3 Months Ended March 31, | 12 Months Ended March 31, | ||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||
Questar Gas | $ | 34.9 | $ | 33.4 | $ | 1.5 | $ | 47.6 | $ | 44.2 | $ | 3.4 | |||||||||||
Wexpro | 24.3 | 22.3 | 2.0 | 97.2 | 89.2 | 8.0 | |||||||||||||||||
Questar Pipeline | 16.6 | 15.3 | 1.3 | 69.2 | 65.5 | 3.7 | |||||||||||||||||
Corporate | (0.6 | ) | (1.1 | ) | 0.5 | (0.8 | ) | (8.9 | ) | 8.1 | |||||||||||||
Income from continuing operations | $ | 75.2 | $ | 69.9 | $ | 5.3 | $ | 213.2 | $ | 190.0 | $ | 23.2 | |||||||||||
Earnings per share - diluted | $ | 0.42 | $ | 0.39 | $ | 0.03 | $ | 1.19 | $ | 1.06 | $ | 0.13 | |||||||||||
Average diluted shares | 179.3 | 178.5 | 0.8 | 179.1 | 178.5 | 0.6 |
Questar 2012 Form 10-Q | 23 |
3 Months Ended March 31, | 12 Months Ended March 31, | ||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net Income | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Residential and commercial sales | $ | 347.3 | $ | 396.8 | $ | (49.5 | ) | $ | 843.5 | $ | 887.8 | $ | (44.3 | ) | |||||||||
Industrial sales | 6.8 | 7.4 | (0.6 | ) | 29.1 | 27.5 | 1.6 | ||||||||||||||||
Transportation for industrial customers | 2.8 | 2.7 | 0.1 | 11.4 | 9.5 | 1.9 | |||||||||||||||||
Service | 1.5 | 1.6 | (0.1 | ) | 5.0 | 4.7 | 0.3 | ||||||||||||||||
Other | 8.4 | 6.2 | 2.2 | 31.9 | 27.1 | 4.8 | |||||||||||||||||
Total revenues | 366.8 | 414.7 | (47.9 | ) | 920.9 | 956.6 | (35.7 | ) | |||||||||||||||
Cost of natural gas sold | 236.2 | 288.7 | (52.5 | ) | 593.2 | 643.9 | (50.7 | ) | |||||||||||||||
Margin | 130.6 | 126.0 | 4.6 | 327.7 | 312.7 | 15.0 | |||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
Operating and maintenance | 40.9 | 37.4 | 3.5 | 122.0 | 112.8 | 9.2 | |||||||||||||||||
General and administrative | 11.7 | 14.6 | (2.9 | ) | 48.1 | 53.2 | (5.1 | ) | |||||||||||||||
Depreciation and amortization | 11.8 | 10.9 | 0.9 | 45.4 | 43.5 | 1.9 | |||||||||||||||||
Other taxes | 4.4 | 4.3 | 0.1 | 15.1 | 14.4 | 0.7 | |||||||||||||||||
Total other operating expenses | 68.8 | 67.2 | 1.6 | 230.6 | 223.9 | 6.7 | |||||||||||||||||
OPERATING INCOME | 61.8 | 58.8 | 3.0 | 97.1 | 88.8 | 8.3 | |||||||||||||||||
Interest and other income | 1.2 | 1.6 | (0.4 | ) | 5.0 | 6.8 | (1.8 | ) | |||||||||||||||
Interest expense | (6.8 | ) | (6.6 | ) | (0.2 | ) | (26.1 | ) | (26.0 | ) | (0.1 | ) | |||||||||||
Income taxes | (21.3 | ) | (20.4 | ) | (0.9 | ) | (28.4 | ) | (25.4 | ) | (3.0 | ) | |||||||||||
NET INCOME | $ | 34.9 | $ | 33.4 | $ | 1.5 | $ | 47.6 | $ | 44.2 | $ | 3.4 | |||||||||||
Operating Statistics | |||||||||||||||||||||||
Natural gas volumes (MMdth) | |||||||||||||||||||||||
Residential and commercial sales | 43.6 | 48.9 | (5.3 | ) | 108.0 | 110.1 | (2.1 | ) | |||||||||||||||
Industrial sales | 1.2 | 1.2 | — | 5.0 | 4.6 | 0.4 | |||||||||||||||||
Transportation for industrial customers | 15.6 | 14.2 | 1.4 | 53.9 | 57.0 | (3.1 | ) | ||||||||||||||||
Total industrial | 16.8 | 15.4 | 1.4 | 58.9 | 61.6 | (2.7 | ) | ||||||||||||||||
Total deliveries | 60.4 | 64.3 | (3.9 | ) | 166.9 | 171.7 | (4.8 | ) | |||||||||||||||
Natural gas revenue (per dth) | |||||||||||||||||||||||
Residential and commercial sales | $ | 7.97 | $ | 8.11 | $ | (0.14 | ) | $ | 7.81 | $ | 8.07 | $ | (0.26 | ) | |||||||||
Industrial sales | 5.62 | 6.11 | (0.49 | ) | 5.91 | 5.92 | (0.01 | ) | |||||||||||||||
Transportation for industrial customers | 0.18 | 0.19 | (0.01 | ) | 0.21 | 0.17 | 0.04 | ||||||||||||||||
Colder (warmer) than normal temperatures | (13 | %) | 4 | % | (17 | %) | — | % | 3 | % | (3 | %) | |||||||||||
Temperature-adjusted usage per customer (dth) | 50.5 | 50.0 | 0.5 | 111.6 | 110.3 | 1.3 | |||||||||||||||||
Customers at March 31, (in thousands) | 923 | 914 | 9 |
Questar 2012 Form 10-Q | 24 |
3 Months 2012 vs. 2011 | 12 Months 2012 vs. 2011 | ||||||
(in millions) | |||||||
Customer growth | $ | 1.0 | $ | 2.5 | |||
General rate increase | — | 0.3 | |||||
Feeder line cost recovery | 2.2 | 5.0 | |||||
Demand-side management cost recovery | 2.1 | 4.5 | |||||
Recovery of gas-cost portion of bad-debt costs | (0.8 | ) | (0.5 | ) | |||
Other | 0.1 | 3.2 | |||||
Increase | $ | 4.6 | $ | 15.0 |
Questar 2012 Form 10-Q | 25 |
3 Months Ended March 31, | 12 Months Ended March 31, | ||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net Income | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Operator service fee | $ | 65.6 | $ | 61.1 | $ | 4.5 | $ | 258.0 | $ | 240.1 | $ | 17.9 | |||||||||||
Oil and NGL sales | 9.2 | 7.6 | 1.6 | 32.9 | 26.5 | 6.4 | |||||||||||||||||
Other | 0.1 | — | 0.1 | 0.4 | 0.2 | 0.2 | |||||||||||||||||
Total Revenues | 74.9 | 68.7 | 6.2 | 291.3 | 266.8 | 24.5 | |||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating and maintenance | 7.2 | 5.4 | 1.8 | 24.1 | 20.6 | 3.5 | |||||||||||||||||
General and administrative | 6.3 | 6.2 | 0.1 | 24.3 | 21.9 | 2.4 | |||||||||||||||||
Production and other taxes | 6.9 | 5.7 | 1.2 | 26.8 | 24.7 | 2.1 | |||||||||||||||||
Depreciation, depletion and amortization | 18.7 | 16.1 | 2.6 | 66.5 | 62.3 | 4.2 | |||||||||||||||||
Oil income sharing | 0.8 | 0.8 | — | 3.3 | 1.6 | 1.7 | |||||||||||||||||
Total Operating Expenses | 39.9 | 34.2 | 5.7 | 145.0 | 131.1 | 13.9 | |||||||||||||||||
Net gain (loss) from asset sales | 2.2 | — | 2.2 | 2.1 | (0.3 | ) | 2.4 | ||||||||||||||||
OPERATING INCOME | 37.2 | 34.5 | 2.7 | 148.4 | 135.4 | 13.0 | |||||||||||||||||
Interest and other income | 0.8 | 0.3 | 0.5 | 4.7 | 3.1 | 1.6 | |||||||||||||||||
Interest expense | — | — | — | — | (0.2 | ) | 0.2 | ||||||||||||||||
Income taxes | (13.7 | ) | (12.5 | ) | (1.2 | ) | (55.9 | ) | (49.1 | ) | (6.8 | ) | |||||||||||
NET INCOME | $ | 24.3 | $ | 22.3 | $ | 2.0 | $ | 97.2 | $ | 89.2 | $ | 8.0 | |||||||||||
Operating Statistics | |||||||||||||||||||||||
Production volumes | |||||||||||||||||||||||
Natural gas (Bcf) | 15.0 | 12.7 | 2.3 | 52.8 | 49.9 | 2.9 | |||||||||||||||||
Oil and NGL (MMbbl) | 0.2 | 0.1 | 0.1 | 0.6 | 0.4 | 0.2 | |||||||||||||||||
Oil and NGL average sales price (per bbl) | $ | 88.45 | $ | 81.34 | $ | 7.11 | $ | 83.97 | $ | 69.69 | $ | 14.28 | |||||||||||
Investment base at March 31, (in millions) | $ | 492.5 | $ | 445.3 | $ | 47.2 | — |
Questar 2012 Form 10-Q | 26 |
12 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
Beginning investment base | $ | 445.3 | $ | 427.8 | |||
Successful development wells | 144.4 | 97.3 | |||||
Depreciation, depletion and amortization | (63.0 | ) | (58.2 | ) | |||
Deferred income taxes | (34.2 | ) | (21.6 | ) | |||
Ending investment base | $ | 492.5 | $ | 445.3 |
Questar 2012 Form 10-Q | 27 |
3 Months Ended March 31, | 12 Months Ended March 31, | ||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net Income | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Transportation | $ | 48.5 | $ | 47.7 | $ | 0.8 | $ | 196.0 | $ | 189.4 | $ | 6.6 | |||||||||||
Storage | 9.6 | 9.7 | (0.1 | ) | 38.2 | 37.7 | 0.5 | ||||||||||||||||
NGL sales - transportation | 2.1 | 2.6 | (0.5 | ) | 8.4 | 12.9 | (4.5 | ) | |||||||||||||||
NGL sales - field services | 2.5 | 2.0 | 0.5 | 8.8 | 10.5 | (1.7 | ) | ||||||||||||||||
Energy services | 3.8 | 3.9 | (0.1 | ) | 16.1 | 14.5 | 1.6 | ||||||||||||||||
Other | 2.5 | 1.0 | 1.5 | 6.4 | 6.6 | (0.2 | ) | ||||||||||||||||
Total Revenues | 69.0 | 66.9 | 2.1 | 273.9 | 271.6 | 2.3 | |||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Operating and maintenance | 8.6 | 8.6 | — | 35.3 | 42.2 | (6.9 | ) | ||||||||||||||||
General and administrative | 12.1 | 13.1 | (1.0 | ) | 45.5 | 43.5 | 2.0 | ||||||||||||||||
Depreciation and amortization | 13.5 | 12.3 | 1.2 | 52.4 | 47.9 | 4.5 | |||||||||||||||||
Other taxes | 2.5 | 3.1 | (0.6 | ) | 9.5 | 9.7 | (0.2 | ) | |||||||||||||||
Cost of sales | 0.5 | 0.6 | (0.1 | ) | 3.0 | 2.5 | 0.5 | ||||||||||||||||
Total Operating Expenses | 37.2 | 37.7 | (0.5 | ) | 145.7 | 145.8 | (0.1 | ) | |||||||||||||||
Net gain from asset sales | — | 0.1 | (0.1 | ) | 0.2 | 0.8 | (0.6 | ) | |||||||||||||||
OPERATING INCOME | 31.8 | 29.3 | 2.5 | 128.4 | 126.6 | 1.8 | |||||||||||||||||
Interest and other income | — | 0.9 | (0.9 | ) | — | 1.2 | (1.2 | ) | |||||||||||||||
Income from unconsolidated affiliate | 0.9 | 0.9 | — | 3.8 | 3.7 | 0.1 | |||||||||||||||||
Interest expense | (6.6 | ) | (7.1 | ) | 0.5 | (24.0 | ) | (28.5 | ) | 4.5 | |||||||||||||
Income taxes | (9.5 | ) | (8.7 | ) | (0.8 | ) | (39.0 | ) | (37.5 | ) | (1.5 | ) | |||||||||||
NET INCOME | $ | 16.6 | $ | 15.3 | $ | 1.3 | $ | 69.2 | $ | 65.5 | $ | 3.7 | |||||||||||
Operating Statistics | |||||||||||||||||||||||
Natural gas-transportation volumes (MMdth) | |||||||||||||||||||||||
For unaffiliated customers | 183.9 | 162.5 | 21.4 | 687.2 | 649.2 | 38.0 | |||||||||||||||||
For Questar Gas | 43.3 | 43.1 | 0.2 | 117.1 | 111.1 | 6.0 | |||||||||||||||||
Total Transportation | 227.2 | 205.6 | 21.6 | 804.3 | 760.3 | 44.0 | |||||||||||||||||
Transportation revenue (per dth) | $ | 0.21 | $ | 0.23 | $ | (0.02 | ) | $ | 0.24 | $ | 0.25 | $ | (0.01 | ) | |||||||||
Net firm-daily transportation demand at March 31, (in Mdth) | 4,947 | 4,954 | (7 | ) | |||||||||||||||||||
Natural gas processing | |||||||||||||||||||||||
NGL sales (Mbbl) | 62 | 66 | (4 | ) | 229 | 412 | (183 | ) | |||||||||||||||
NGL sales price (per bbl) | $ | 73.41 | $ | 69.61 | $ | 3.80 | $ | 74.86 | $ | 56.91 | $ | 17.95 |
Questar 2012 Form 10-Q | 28 |
Questar 2012 Form 10-Q | 29 |
3 Months Ended March 31, | |||||||||||
2012 | 2011 | Change | |||||||||
(in millions) | |||||||||||
Net income | $ | 75.2 | $ | 69.9 | $ | 5.3 | |||||
Noncash adjustments to net income | 86.8 | 76.6 | 10.2 | ||||||||
Changes in operating assets and liabilities | 58.7 | 82.3 | (23.6 | ) | |||||||
Net cash provided by operating activities | $ | 220.7 | $ | 228.8 | $ | (8.1 | ) |
3 Months Ended March 31, | Forecast 12 Months Ended December 31, | ||||||||||
2012 | 2011 | 2012 | |||||||||
(in millions) | |||||||||||
Questar Gas | $ | 44.8 | $ | 25.9 | $ | 155 | |||||
Wexpro | 43.4 | 23.9 | 130 | ||||||||
Questar Pipeline | 12.1 | 25.7 | 55 | ||||||||
Corporate | 3.9 | 0.5 | 10 | ||||||||
Total capital expenditures | $ | 104.2 | $ | 76.0 | $ | 350 |
Questar 2012 Form 10-Q | 30 |
Questar 2012 Form 10-Q | 31 |
- | the risk factors discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2011; |
- | 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 the Company's control. |
Questar 2012 Form 10-Q | 32 |
2012 | Number of Shares Purchased(1) | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans(2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan | |||||||||
Month #1 January 1, 2012 through January 31, 2012 | 37,298 | $ | 19.65 | — | $ | 100,000,000 | |||||||
Month #2 February 1, 2012 through February 29, 2012 | 28,282 | $ | 19.53 | — | $ | 100,000,000 | |||||||
Month #3 March 1, 2012 through March 31, 2012 | 289,963 | $ | 19.52 | 170,000 | $ | 96,698,220 | |||||||
Total | 355,543 | $ | 19.53 | 170,000 | $ | 96,698,220 |
Questar 2012 Form 10-Q | 33 |
Exhibits No. | Exhibits |
EXHIBIT 12 - STATEMENTS RE: COMPUTATION OF RATIOS | |
Questar Corporation | |
12.1. | Questar Corporation ratio of earnings to fixed charges. |
Questar Gas Company | |
12.2. | Questar Gas Company ratio of earnings to fixed charges. |
Questar Pipeline Company | |
12.3. | Questar Pipeline Company ratio of earnings to fixed charges. |
EXHIBIT 31 - SECTION 302 CERTIFICATIONS | |
Questar Corporation | |
31.1. | Questar Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2. | Questar Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Gas Company | |
31.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Pipeline Company | |
31.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
EXHIBIT 32 - SECTION 906 CERTIFICATIONS | |
Questar Corporation | |
32.1. | Questar Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.2. | Questar Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Gas Company | |
32.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Pipeline Company | |
32.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
EXHIBIT 101 - INTERACTIVE DATA FILE | |
101.INS | XBRL Instance. |
101.SCH | XBRL Taxonomy. |
101.CAL | XBRL Calculations. |
101.DEF | XBRL Definitions. |
101.LAB | XBRL Labels. |
101.PRE | XBRL Presentation. |
Questar 2012 Form 10-Q | 34 |
QUESTAR CORPORATION QUESTAR GAS COMPANY QUESTAR PIPELINE COMPANY (Registrants) | |
May 3, 2012 | /s/Ronald W. Jibson Ronald W. Jibson President and Chief Executive Officer, Questar and Questar Gas |
May 3, 2012 | /s/R. Allan Bradley R. Allan Bradley President and Chief Executive Officer, Questar Pipeline |
May 3, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
Questar 2012 Form 10-Q | 35 |
Exhibits No. | Exhibits |
EXHIBIT 12 - STATEMENTS RE: COMPUTATION OF RATIOS | |
Questar Corporation | |
12.1. | Questar Corporation ratio of earnings to fixed charges. |
Questar Pipeline Company | |
12.2. | Questar Gas Company ratio of earnings to fixed charges. |
Questar Gas Company | |
12.3. | Questar Pipeline Company ratio of earnings to fixed charges. |
EXHIBIT 31 - SECTION 302 CERTIFICATIONS | |
Questar Corporation | |
31.1. | Questar Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2. | Questar Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Gas Company | |
31.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Pipeline Company | |
31.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
EXHIBIT 32 - SECTION 906 CERTIFICATIONS | |
Questar Corporation | |
32.1. | Questar Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.2. | Questar Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Gas Company | |
32.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Pipeline Company | |
32.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
EXHIBIT 101 - INTERACTIVE DATA FILE | |
101.INS | XBRL Instance. |
101.SCH | XBRL Taxonomy. |
101.CAL | XBRL Calculations. |
101.DEF | XBRL Definitions. |
101.LAB | XBRL Labels. |
101.PRE | XBRL Presentation. |
Questar 2012 Form 10-Q | 36 |
3 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(dollars in millions) | |||||||
Earnings | |||||||
Pretax income from continuing operations before adjustment for income or loss from equity investees | $ | 117.6 | $ | 109.7 | |||
Add (deduct): | |||||||
Fixed charges | 15.5 | 17.2 | |||||
Distributed income from equity investees - continuing operations | 1.2 | 1.0 | |||||
Capitalized interest - continuing operations | — | (0.3 | ) | ||||
Total Earnings | $ | 134.3 | $ | 127.6 | |||
Fixed Charges | |||||||
Interest expense - continuing operations | $ | 14.7 | 16.0 | ||||
Capitalized interest - continuing operations | — | 0.3 | |||||
Estimate of interest within rental expense - continuing operations | 0.8 | 0.9 | |||||
Total Fixed Charges | $ | 15.5 | $ | 17.2 | |||
Ratio of Earnings to Fixed Charges | 8.7 | 7.4 |
3 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(dollars in millions) | |||||||
Earnings | |||||||
Income before income taxes | $ | 56.2 | $ | 53.8 | |||
Add (deduct): | |||||||
Fixed charges | 7.0 | 6.8 | |||||
Total Earnings | $ | 63.2 | $ | 60.6 | |||
Fixed Charges | |||||||
Interest expense | $ | 6.8 | $ | 6.6 | |||
Estimate of interest within rental expense | 0.2 | 0.2 | |||||
Total Fixed Charges | $ | 7.0 | $ | 6.8 | |||
Ratio of Earnings to Fixed Charges | 9.0 | 8.9 |
3 Months Ended March 31, | |||||||
2012 | 2011 | ||||||
(dollars in millions) | |||||||
Earnings | |||||||
Income before income taxes and adjustment for income from equity investee | $ | 25.2 | $ | 23.1 | |||
Add (deduct): | |||||||
Fixed charges | 7.0 | 7.9 | |||||
Distributed income from equity investee | 1.2 | 1.0 | |||||
Capitalized interest | — | (0.3 | ) | ||||
Total Earnings | $ | 33.4 | $ | 31.7 | |||
Fixed Charges | |||||||
Interest expense | $ | 6.6 | $ | 7.1 | |||
Capitalized interest | — | 0.3 | |||||
Estimate of interest within rental expense | 0.4 | 0.5 | |||||
Total Fixed Charges | $ | 7.0 | $ | 7.9 | |||
Ratio of Earnings to Fixed Charges | 4.8 | 4.0 |
1. | I have reviewed this Form 10-Q of Questar Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2012 | /s/Ronald W. Jibson Ronald W. Jibson President and Chief Executive Officer |
1 | I have reviewed this Form 10-Q of Questar Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
1. | I have reviewed this Form 10-Q of Questar Pipeline Company: |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2012 | /s/R. Allan Bradley R. Allan Bradley President and Chief Executive Officer |
1. | I have reviewed this Form 10-Q of Questar Pipeline Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
1. | I have reviewed this Form 10-Q of Questar Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2012 | /s/Ronald W. Jibson Ronald W. Jibson President and Chief Executive Officer |
1. | I have reviewed this Form 10-Q of Questar Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
May 3, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR CORPORATION | |
May 3, 2012 | /s/Ronald W. Jibson Ronald W. Jibson President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR CORPORATION | |
May 3, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR PIPELINE COMPANY | |
May 3, 2012 | /s/R. Allen Bradley R. Allen Bradley President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR PIPELINE COMPANY | |
May 3, 2012 | /s/Kevin W. HadlockKevin W. Hadlock Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR GAS COMPANY | |
May 3, 2012 | /s/Ronald W. Jibson Ronald W. Jibson President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR GAS COMPANY | |
May 3, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
Fair Value Measurements (Details) (USD $)
In Millions, unless otherwise specified |
Mar. 31, 2012
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Dec. 31, 2011
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Mar. 31, 2011
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Carrying Amount [Member]
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Financial assets [Abstract] | |||
Cash and cash equivalents | $ 8.1 | $ 11.6 | $ 0 |
Long-term investment | 14.5 | 14.4 | 13.4 |
Financial liabilities [Abstract] | |||
Checks outstanding in excess of cash balances | 0 | 0 | 1.6 |
Short-term debt | 129.0 | 219.0 | 86.0 |
Long-term debt, including current portion | 1,083.8 | 1,084.5 | 1,080.5 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 1 [Member]
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Financial assets [Abstract] | |||
Cash and cash equivalents | 8.1 | 11.6 | 0 |
Long-term investment | 14.5 | 14.4 | 13.4 |
Financial liabilities [Abstract] | |||
Checks outstanding in excess of cash balances | 0 | 0 | 1.6 |
Short-term debt | 129.0 | 219.0 | 86.0 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
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Financial liabilities [Abstract] | |||
Long-term debt, including current portion | 1,219.4 | 1,223.4 | 1,159.2 |
Questar Gas [Member] | Carrying Amount [Member]
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Financial assets [Abstract] | |||
Cash and cash equivalents | 4.5 | 5.0 | 0.4 |
Financial liabilities [Abstract] | |||
Notes payable to Questar | 66.4 | 142.7 | 64.1 |
Long-term debt, including current portion | 368.0 | 368.0 | 370.0 |
Questar Gas [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 1 [Member]
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Financial assets [Abstract] | |||
Cash and cash equivalents | 4.5 | 5.0 | 0.4 |
Financial liabilities [Abstract] | |||
Notes payable to Questar | 66.4 | 142.7 | 64.1 |
Questar Gas [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
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Financial liabilities [Abstract] | |||
Long-term debt, including current portion | 438.6 | 445.4 | 417.0 |
Questar Pipeline [Member] | Carrying Amount [Member]
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Financial assets [Abstract] | |||
Cash and cash equivalents | 4.6 | 3.4 | 0.9 |
Notes receivable from Questar | 14.5 | 8.8 | 40.7 |
Financial liabilities [Abstract] | |||
Long-term debt, including current portion | 458.9 | 459.0 | 460.9 |
Questar Pipeline [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 1 [Member]
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Financial assets [Abstract] | |||
Cash and cash equivalents | 4.6 | 3.4 | 0.9 |
Notes receivable from Questar | 14.5 | 8.8 | 40.7 |
Questar Pipeline [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
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Financial liabilities [Abstract] | |||
Long-term debt, including current portion | $ 517.9 | $ 519.4 | $ 496.8 |
Operations by Line of Business (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of continuing operations by line of business | Following is a summary of operations by line of business:
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Share-Based Compensation Stock Options (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
3 Months Ended | |
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Mar. 31, 2012
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Mar. 31, 2011
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation | $ 2.7 | $ 3.5 |
Deferred share-based compensation on restricted share awards and restricted stock unit awards | 8.3 | |
Cash flow from income tax benefits in excess of recognized compensation expense | $ 3.5 | $ 4.0 |
Shares available for future grant (in shares) | 6,731,415 |
Comprehensive Income
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2012
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Statement of Income and Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Note 3 - Comprehensive Income Beginning in 2012, the Company and its subsidiaries adopted accounting guidance issued in June 2011 that resulted in the addition of statements of comprehensive income to the primary financial statements. Comprehensive income attributable to Questar, as reported in Questar's Condensed Consolidated Statements of Comprehensive Income, is the sum of net income attributable to Questar as reported in the Consolidated Statements of Income and other comprehensive income (loss) (OCI). OCI includes recognition of the under-funded position of pension and other postretirement benefit plans, changes in the fair value of long-term investment, interest rate cash flow hedges and commodity-based derivative instruments, and income taxes. These transactions are not the culmination of the earnings process but result from periodically adjusting historical balances to fair value. Income or loss is recognized when the pension or other postretirement benefit costs are accrued, when the long-term investment is sold or otherwise realized, as the Company records interest expense for hedged interest payments and when gas, oil or NGL underlying the derivative instrument is sold. The components of consolidated accumulated other comprehensive income (loss) (AOCI), net of income taxes, as reported in Questar's Condensed Consolidated Balance Sheets, are shown below:
Comprehensive income, as reported in Questar Pipeline's Condensed Consolidated Statements of Comprehensive Income, is the sum of net income as reported in the Questar Pipeline Consolidated Statements of Income and OCI. OCI includes interest rate cash flow hedges and income taxes. These transactions are not the culmination of the earnings process but result from periodically adjusting historical balances to fair value. Income or loss is recognized as the company records interest expense for hedged interest payments. The component of consolidated AOCI, net of income taxes, as reported in Questar Pipeline's Condensed Consolidated Balance Sheets, is shown below:
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