[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended September 30, 2014 | |
[ ] | 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) | Commission File Number: | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Questar Corporation | 001-08796 | Utah | 87-0407509 |
Questar Gas Company | 333-69210 | Utah | 87-0155877 |
Questar Pipeline Company | 000-14147 | Utah | 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 | 175,256,549 |
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 2014 Form 10-Q | 2 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Questar Gas | $ | 100.7 | $ | 89.4 | $ | 642.0 | $ | 647.8 | $ | 979.4 | $ | 928.8 | |||||||||||
Wexpro | 9.4 | 13.2 | 29.5 | 32.0 | 42.6 | 41.0 | |||||||||||||||||
Questar Pipeline | 47.3 | 47.0 | 143.4 | 142.3 | 190.6 | 195.3 | |||||||||||||||||
Other | 0.5 | — | 1.2 | — | 1.4 | — | |||||||||||||||||
Total Revenues | 157.9 | 149.6 | 816.1 | 822.1 | 1,214.0 | 1,165.1 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Cost of sales (excluding operating expenses shown separately) | (42.3 | ) | (35.0 | ) | 81.6 | 157.4 | 210.1 | 250.6 | |||||||||||||||
Operating and maintenance | 39.2 | 36.4 | 136.1 | 122.2 | 188.2 | 169.8 | |||||||||||||||||
General and administrative | 26.0 | 24.4 | 88.0 | 90.2 | 118.8 | 123.0 | |||||||||||||||||
Retirement incentive | — | — | — | — | — | 4.9 | |||||||||||||||||
Production and other taxes | 16.8 | 15.2 | 53.4 | 45.2 | 65.6 | 55.1 | |||||||||||||||||
Depreciation, depletion and amortization | 50.8 | 47.4 | 162.9 | 143.4 | 214.3 | 189.4 | |||||||||||||||||
Abandonment and impairment | — | 80.6 | 2.0 | 80.6 | 2.0 | 80.6 | |||||||||||||||||
Total Operating Expenses | 90.5 | 169.0 | 524.0 | 639.0 | 799.0 | 873.4 | |||||||||||||||||
Net gain from asset sales | 1.5 | — | 1.6 | 0.1 | 1.3 | 0.1 | |||||||||||||||||
OPERATING INCOME (LOSS) | 68.9 | (19.4 | ) | 293.7 | 183.2 | 416.3 | 291.8 | ||||||||||||||||
Interest and other income | 2.0 | 3.1 | 5.0 | 9.2 | 5.7 | 10.5 | |||||||||||||||||
Income from unconsolidated affiliate | 0.9 | 0.9 | 2.7 | 2.8 | 3.6 | 3.7 | |||||||||||||||||
Interest expense | (15.7 | ) | (13.9 | ) | (47.3 | ) | (42.7 | ) | (61.5 | ) | (56.3 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 56.1 | (29.3 | ) | 254.1 | 152.5 | 364.1 | 249.7 | ||||||||||||||||
Income taxes | (17.5 | ) | 10.1 | (90.1 | ) | (59.4 | ) | (132.0 | ) | (92.8 | ) | ||||||||||||
NET INCOME (LOSS) | $ | 38.6 | $ | (19.2 | ) | $ | 164.0 | $ | 93.1 | $ | 232.1 | $ | 156.9 | ||||||||||
Earnings (Loss) Per Common Share | |||||||||||||||||||||||
Basic | $ | 0.22 | $ | (0.11 | ) | $ | 0.93 | $ | 0.53 | $ | 1.32 | $ | 0.89 | ||||||||||
Diluted | 0.22 | (0.11 | ) | 0.93 | 0.53 | 1.32 | 0.89 | ||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Used in basic calculation | 175.8 | 175.5 | 175.8 | 175.4 | 175.7 | 175.5 | |||||||||||||||||
Used in diluted calculation | 176.1 | 175.5 | 176.1 | 176.1 | 176.0 | 176.1 | |||||||||||||||||
Dividends per common share | $ | 0.19 | $ | 0.18 | $ | 0.56 | $ | 0.53 | $ | 0.74 | $ | 0.70 |
Questar 2014 Form 10-Q | 3 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income (loss) | $ | 38.6 | $ | (19.2 | ) | $ | 164.0 | $ | 93.1 | $ | 232.1 | $ | 156.9 | ||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Pension and other postretirement benefits | 3.7 | 9.0 | 12.5 | 24.7 | 156.6 | (28.1 | ) | ||||||||||||||||
Interest rate cash flow hedge amortization | 0.1 | 0.1 | 0.4 | 0.4 | 0.5 | 0.4 | |||||||||||||||||
Change in fair value of long-term investment | — | — | — | (0.1 | ) | — | (0.1 | ) | |||||||||||||||
Income taxes | (1.3 | ) | (3.4 | ) | (4.9 | ) | (9.4 | ) | (60.2 | ) | 10.8 | ||||||||||||
Net other comprehensive income (loss) | 2.5 | 5.7 | 8.0 | 15.6 | 96.9 | (17.0 | ) | ||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 41.1 | $ | (13.5 | ) | $ | 172.0 | $ | 108.7 | $ | 329.0 | $ | 139.9 |
Questar 2014 Form 10-Q | 4 |
Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 7.3 | $ | — | $ | 16.0 | |||||
Accounts receivable, net | 57.3 | 58.0 | 123.8 | ||||||||
Unbilled gas accounts receivable | 12.8 | 11.7 | 93.4 | ||||||||
Gas stored underground | 69.3 | 59.4 | 40.0 | ||||||||
Materials and supplies | 25.2 | 24.0 | 23.7 | ||||||||
Current regulatory assets | 84.2 | 49.3 | 35.8 | ||||||||
Prepaid expenses and other | 6.3 | 6.0 | 9.5 | ||||||||
Deferred income taxes - current | 14.7 | 8.8 | 9.7 | ||||||||
Total Current Assets | 277.1 | 217.2 | 351.9 | ||||||||
Property, Plant and Equipment | 5,852.3 | 5,583.8 | 5,674.7 | ||||||||
Accumulated depreciation, depletion and amortization | (2,185.2 | ) | (2,037.9 | ) | (2,071.7 | ) | |||||
Net Property, Plant and Equipment | 3,667.1 | 3,545.9 | 3,603.0 | ||||||||
Investment in unconsolidated affiliate | 24.9 | 25.8 | 25.6 | ||||||||
Noncurrent regulatory assets | 18.6 | 21.3 | 20.5 | ||||||||
Other noncurrent assets | 50.2 | 50.9 | 53.3 | ||||||||
TOTAL ASSETS | $ | 4,037.9 | $ | 3,861.1 | $ | 4,054.3 | |||||
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | — | $ | 1.6 | $ | — | |||||
Short-term debt | 234.0 | 355.0 | 276.0 | ||||||||
Accounts payable and accrued expenses | 225.4 | 211.6 | 264.8 | ||||||||
Current regulatory liabilities | 11.0 | 1.8 | 14.1 | ||||||||
Current portion of long-term debt and capital lease obligation | 1.0 | 0.8 | 0.9 | ||||||||
Total Current Liabilities | 471.4 | 570.8 | 555.8 | ||||||||
Long-term debt and capital lease obligation, less current portion | 1,283.3 | 1,136.1 | 1,285.5 | ||||||||
Deferred income taxes | 718.5 | 645.9 | 707.2 | ||||||||
Asset retirement obligations | 69.2 | 65.9 | 67.7 | ||||||||
Defined benefit pension plan and other postretirement benefits | 73.3 | 257.3 | 113.2 | ||||||||
Noncurrent regulatory liabilities | 67.9 | 59.5 | 61.2 | ||||||||
Customer contributions in aid of construction | 29.6 | 31.5 | 29.1 | ||||||||
Other noncurrent liabilities | 45.4 | 35.5 | 35.8 | ||||||||
COMMON SHAREHOLDERS' EQUITY | |||||||||||
Common stock | 471.5 | 449.7 | 464.5 | ||||||||
Retained earnings | 941.6 | 839.6 | 876.1 | ||||||||
Accumulated other comprehensive (loss) | (133.8 | ) | (230.7 | ) | (141.8 | ) | |||||
Total Common Shareholders' Equity | 1,279.3 | 1,058.6 | 1,198.8 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | $ | 4,037.9 | $ | 3,861.1 | $ | 4,054.3 |
Questar 2014 Form 10-Q | 5 |
9 Months Ended Sept. 30, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 164.0 | $ | 93.1 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 169.1 | 148.7 | |||||
Deferred income taxes | 1.4 | 37.2 | |||||
Abandonment and impairment | 2.0 | 80.6 | |||||
Share-based compensation | 8.5 | 7.7 | |||||
Net (gain) from asset sales | (1.6 | ) | (0.1 | ) | |||
(Income) from unconsolidated affiliate | (2.7 | ) | (2.8 | ) | |||
Distributions from unconsolidated affiliate and other | 4.1 | 4.2 | |||||
Changes in operating assets and liabilities | 17.7 | 55.4 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 362.5 | 424.0 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (235.3 | ) | (287.4 | ) | |||
Wexpro acquisition of producing properties | — | (106.7 | ) | ||||
Cash used in disposition of assets | (2.6 | ) | (3.1 | ) | |||
Proceeds from disposition of assets | 9.4 | 0.6 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (228.5 | ) | (396.6 | ) | |||
FINANCING ACTIVITIES | |||||||
Common stock issued | 1.0 | 2.2 | |||||
Common stock repurchased | (3.8 | ) | (4.2 | ) | |||
Change in short-term debt | (42.0 | ) | 92.0 | ||||
Checks outstanding in excess of cash balances | — | 1.6 | |||||
Long-term debt and capital lease obligation repaid | (0.7 | ) | (42.6 | ) | |||
Long-term debt issuance costs | — | (1.7 | ) | ||||
Dividends paid | (98.5 | ) | (93.0 | ) | |||
Tax benefits from share-based compensation | 1.3 | 1.5 | |||||
NET CASH USED IN FINANCING ACTIVITIES | (142.7 | ) | (44.2 | ) | |||
Change in cash and cash equivalents | (8.7 | ) | (16.8 | ) | |||
Beginning cash and cash equivalents | 16.0 | 16.8 | |||||
Ending cash and cash equivalents | $ | 7.3 | $ | — |
Questar 2014 Form 10-Q | 6 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
From unaffiliated customers | $ | 100.7 | $ | 89.4 | $ | 642.0 | $ | 647.8 | $ | 979.4 | $ | 928.8 | |||||||||||
From affiliated company | — | 0.2 | — | 0.6 | — | 0.8 | |||||||||||||||||
Total Revenues | 100.7 | 89.6 | 642.0 | 648.4 | 979.4 | 929.6 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Cost of natural gas sold (excluding operating expenses shown separately) | 56.8 | 50.1 | 398.6 | 424.2 | 625.0 | 601.1 | |||||||||||||||||
Operating and maintenance | 22.7 | 20.9 | 88.8 | 78.1 | 123.8 | 109.9 | |||||||||||||||||
General and administrative | 12.3 | 12.1 | 39.0 | 38.5 | 53.0 | 53.2 | |||||||||||||||||
Retirement incentive | — | — | — | — | — | 2.4 | |||||||||||||||||
Depreciation and amortization | 13.5 | 12.4 | 40.3 | 36.9 | 53.1 | 49.1 | |||||||||||||||||
Other taxes | 4.8 | 5.3 | 14.7 | 15.4 | 17.3 | 18.3 | |||||||||||||||||
Total Operating Expenses | 110.1 | 100.8 | 581.4 | 593.1 | 872.2 | 834.0 | |||||||||||||||||
Net gain from asset sales | — | — | 0.1 | — | 0.1 | — | |||||||||||||||||
OPERATING INCOME (LOSS) | (9.4 | ) | (11.2 | ) | 60.7 | 55.3 | 107.3 | 95.6 | |||||||||||||||
Interest and other income | 1.7 | 1.3 | 4.3 | 3.8 | 5.6 | 5.5 | |||||||||||||||||
Interest expense | (7.1 | ) | (5.3 | ) | (21.2 | ) | (16.7 | ) | (26.8 | ) | (21.7 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (14.8 | ) | (15.2 | ) | 43.8 | 42.4 | 86.1 | 79.4 | |||||||||||||||
Income taxes | 5.7 | 6.2 | (16.6 | ) | (15.6 | ) | (32.9 | ) | (28.8 | ) | |||||||||||||
NET INCOME (LOSS) | $ | (9.1 | ) | $ | (9.0 | ) | $ | 27.2 | $ | 26.8 | $ | 53.2 | $ | 50.6 |
Questar 2014 Form 10-Q | 7 |
Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 8.8 | |||||
Accounts receivable, net | 27.6 | 24.2 | 88.9 | ||||||||
Unbilled gas accounts receivable | 12.8 | 11.7 | 93.4 | ||||||||
Accounts receivable from affiliates | 44.7 | 31.4 | 30.4 | ||||||||
Gas stored underground | 66.8 | 56.5 | 39.2 | ||||||||
Materials and supplies | 14.0 | 12.2 | 12.1 | ||||||||
Current regulatory assets | 82.6 | 45.5 | 30.2 | ||||||||
Prepaid expenses and other | 2.6 | 2.4 | 3.0 | ||||||||
Deferred income taxes - current | 3.0 | 1.5 | 2.9 | ||||||||
Total Current Assets | 254.1 | 185.4 | 308.9 | ||||||||
Property, Plant and Equipment | 2,315.1 | 2,147.8 | 2,203.0 | ||||||||
Accumulated depreciation and amortization | (770.4 | ) | (739.4 | ) | (745.2 | ) | |||||
Net Property, Plant and Equipment | 1,544.7 | 1,408.4 | 1,457.8 | ||||||||
Noncurrent regulatory assets | 14.4 | 16.5 | 16.1 | ||||||||
Goodwill | 5.6 | 5.6 | 5.6 | ||||||||
Other noncurrent assets | 3.7 | 3.0 | 4.0 | ||||||||
TOTAL ASSETS | $ | 1,822.5 | $ | 1,618.9 | $ | 1,792.4 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | 2.1 | $ | 1.4 | $ | — | |||||
Notes payable to Questar | 90.8 | 195.0 | 17.7 | ||||||||
Accounts payable and accrued expenses | 91.8 | 80.3 | 139.2 | ||||||||
Accounts payable to affiliates | 52.2 | 49.9 | 67.8 | ||||||||
Customer advances | 23.2 | 21.9 | 19.8 | ||||||||
Current regulatory liabilities | 10.4 | 0.5 | 11.1 | ||||||||
Total Current Liabilities | 270.5 | 349.0 | 255.6 | ||||||||
Long-term debt | 534.5 | 384.5 | 534.5 | ||||||||
Deferred income taxes | 348.5 | 330.7 | 340.7 | ||||||||
Noncurrent regulatory liabilities | 59.1 | 51.3 | 53.0 | ||||||||
Customer contributions in aid of construction | 29.6 | 31.5 | 29.1 | ||||||||
Other noncurrent liabilities | 2.8 | 3.0 | 3.2 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 23.0 | 23.0 | 23.0 | ||||||||
Additional paid-in capital | 264.9 | 173.6 | 263.9 | ||||||||
Retained earnings | 289.6 | 272.3 | 289.4 | ||||||||
Total Common Shareholder's Equity | 577.5 | 468.9 | 576.3 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,822.5 | $ | 1,618.9 | $ | 1,792.4 |
Questar 2014 Form 10-Q | 8 |
9 Months Ended Sept. 30, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 27.2 | $ | 26.8 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 44.2 | 40.7 | |||||
Deferred income taxes | 7.7 | 29.1 | |||||
Share-based compensation | 1.0 | 1.1 | |||||
Net (gain) from asset sales | (0.1 | ) | — | ||||
Changes in operating assets and liabilities | 2.6 | 49.9 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 82.6 | 147.6 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (138.2 | ) | (119.3 | ) | |||
Cash used in disposition of assets | (2.2 | ) | (2.5 | ) | |||
Proceeds from disposition of assets | 0.8 | 0.3 | |||||
Affiliated-company property, plant and equipment transfers | — | 10.8 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (139.6 | ) | (110.7 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes payable to Questar | 73.1 | 28.9 | |||||
Checks outstanding in excess of cash balances | 2.1 | 1.4 | |||||
Long-term debt repaid | — | (42.0 | ) | ||||
Dividends paid to Questar | (27.0 | ) | (26.6 | ) | |||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 48.2 | (38.3 | ) | ||||
Change in cash and cash equivalents | (8.8 | ) | (1.4 | ) | |||
Beginning cash and cash equivalents | 8.8 | 1.4 | |||||
Ending cash and cash equivalents | $ | — | $ | — |
Questar 2014 Form 10-Q | 9 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
From unaffiliated customers | $ | 47.3 | $ | 47.0 | $ | 143.4 | $ | 142.3 | $ | 190.6 | $ | 195.3 | |||||||||||
From affiliated companies | 17.7 | 17.6 | 54.7 | 54.8 | 76.6 | 74.0 | |||||||||||||||||
Total Revenues | 65.0 | 64.6 | 198.1 | 197.1 | 267.2 | 269.3 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Operating and maintenance | 9.5 | 8.8 | 25.5 | 23.2 | 34.8 | 32.0 | |||||||||||||||||
General and administrative | 10.2 | 10.8 | 32.5 | 35.3 | 43.9 | 48.8 | |||||||||||||||||
Retirement incentive | — | — | — | — | — | 0.9 | |||||||||||||||||
Depreciation and amortization | 13.5 | 14.0 | 40.7 | 42.2 | 54.0 | 55.9 | |||||||||||||||||
Asset impairment | — | 80.6 | — | 80.6 | — | 80.6 | |||||||||||||||||
Other taxes | 2.4 | 2.5 | 7.1 | 7.4 | 9.0 | 9.2 | |||||||||||||||||
Cost of sales (excluding operating expenses shown separately) | 0.6 | 0.5 | 3.0 | 2.7 | 6.4 | 7.5 | |||||||||||||||||
Total Operating Expenses | 36.2 | 117.2 | 108.8 | 191.4 | 148.1 | 234.9 | |||||||||||||||||
Net gain from asset sales | — | — | — | — | — | 0.1 | |||||||||||||||||
OPERATING INCOME (LOSS) | 28.8 | (52.6 | ) | 89.3 | 5.7 | 119.1 | 34.5 | ||||||||||||||||
Interest and other income | 0.3 | 0.6 | 0.7 | 1.2 | 1.3 | 1.5 | |||||||||||||||||
Income from unconsolidated affiliate | 0.9 | 0.9 | 2.7 | 2.8 | 3.6 | 3.7 | |||||||||||||||||
Interest expense | (6.5 | ) | (6.5 | ) | (19.6 | ) | (19.5 | ) | (25.9 | ) | (26.0 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 23.5 | (57.6 | ) | 73.1 | (9.8 | ) | 98.1 | 13.7 | |||||||||||||||
Income taxes | (8.6 | ) | 19.7 | (26.8 | ) | 2.2 | (36.0 | ) | (6.4 | ) | |||||||||||||
NET INCOME (LOSS) | $ | 14.9 | $ | (37.9 | ) | $ | 46.3 | $ | (7.6 | ) | $ | 62.1 | $ | 7.3 |
Questar 2014 Form 10-Q | 10 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income (loss) | $ | 14.9 | $ | (37.9 | ) | $ | 46.3 | $ | (7.6 | ) | $ | 62.1 | $ | 7.3 | |||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Interest rate cash flow hedge amortization | 0.1 | 0.1 | 0.4 | 0.4 | 0.5 | 0.4 | |||||||||||||||||
Income taxes | — | — | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.1 | ) | |||||||||||||
Net other comprehensive income | 0.1 | 0.1 | 0.3 | 0.3 | 0.3 | 0.3 | |||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 15.0 | $ | (37.8 | ) | $ | 46.6 | $ | (7.3 | ) | $ | 62.4 | $ | 7.6 |
Questar 2014 Form 10-Q | 11 |
Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 1.5 | $ | 2.7 | |||||
Notes receivable from Questar | 35.2 | 36.6 | 29.4 | ||||||||
Accounts receivable, net | 17.3 | 17.8 | 18.5 | ||||||||
Accounts receivable from affiliates | 37.8 | 32.7 | 36.6 | ||||||||
Gas stored underground | 2.5 | 2.9 | 0.8 | ||||||||
Materials and supplies | 6.9 | 7.5 | 7.3 | ||||||||
Current regulatory assets | 1.6 | 3.8 | 5.6 | ||||||||
Prepaid expenses and other | 1.7 | 1.8 | 4.4 | ||||||||
Deferred income taxes - current | 1.8 | 1.6 | 1.8 | ||||||||
Total Current Assets | 105.2 | 106.2 | 107.1 | ||||||||
Property, Plant and Equipment | 1,824.0 | 1,766.1 | 1,774.3 | ||||||||
Accumulated depreciation and amortization | (662.9 | ) | (617.8 | ) | (627.2 | ) | |||||
Net Property, Plant and Equipment | 1,161.1 | 1,148.3 | 1,147.1 | ||||||||
Investment in unconsolidated affiliate | 24.9 | 25.8 | 25.6 | ||||||||
Goodwill | 4.2 | 4.2 | 4.2 | ||||||||
Noncurrent regulatory and other assets | 7.2 | 8.2 | 7.7 | ||||||||
TOTAL ASSETS | $ | 1,302.6 | $ | 1,292.7 | $ | 1,291.7 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and accrued expenses | $ | 41.1 | $ | 35.9 | $ | 25.6 | |||||
Accounts payable to affiliates | 3.6 | 3.7 | 9.4 | ||||||||
Current regulatory liabilities | 0.6 | 1.3 | 3.0 | ||||||||
Total Current Liabilities | 45.3 | 40.9 | 38.0 | ||||||||
Long-term debt | 458.8 | 458.8 | 458.9 | ||||||||
Deferred income taxes | 230.0 | 226.9 | 228.6 | ||||||||
Noncurrent regulatory and other liabilities | 16.1 | 13.9 | 13.9 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 6.6 | 6.6 | 6.6 | ||||||||
Additional paid-in capital | 351.0 | 349.2 | 349.5 | ||||||||
Retained earnings | 217.4 | 219.3 | 219.1 | ||||||||
Accumulated other comprehensive (loss) | (22.6 | ) | (22.9 | ) | (22.9 | ) | |||||
Total Common Shareholder's Equity | 552.4 | 552.2 | 552.3 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,302.6 | $ | 1,292.7 | $ | 1,291.7 |
Questar 2014 Form 10-Q | 12 |
9 Months Ended Sept. 30, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income (loss) | $ | 46.3 | $ | (7.6 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 42.5 | 44.1 | |||||
Deferred income taxes | 1.3 | (15.7 | ) | ||||
Asset impairment | — | 80.6 | |||||
Share-based compensation | 1.5 | 1.6 | |||||
(Income) from unconsolidated affiliate | (2.7 | ) | (2.8 | ) | |||
Distributions from unconsolidated affiliate and other | 3.8 | 3.9 | |||||
Changes in operating assets and liabilities | 4.3 | 3.6 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 97.0 | 107.7 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (45.3 | ) | (56.2 | ) | |||
Cash used in disposition of assets | (0.4 | ) | (0.6 | ) | |||
Proceeds from disposition of assets | 0.2 | 0.1 | |||||
Affiliated-company property, plant and equipment transfers | — | (10.7 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES | (45.5 | ) | (67.4 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes receivable from Questar | (5.8 | ) | 2.1 | ||||
Dividends paid to Questar | (48.0 | ) | (48.0 | ) | |||
NET CASH USED IN FINANCING ACTIVITIES | (53.8 | ) | (45.9 | ) | |||
Change in cash and cash equivalents | (2.3 | ) | (5.6 | ) | |||
Beginning cash and cash equivalents | 2.7 | 7.1 | |||||
Ending cash and cash equivalents | $ | 0.4 | $ | 1.5 |
Questar 2014 Form 10-Q | 13 |
• | Questar Gas Company (Questar Gas) provides retail natural gas distribution in Utah, Wyoming and Idaho. |
• | Wexpro Company (Wexpro) develops and produces natural gas from cost-of-service reserves for Questar Gas customers. |
• | Questar Pipeline Company (Questar Pipeline) operates interstate natural gas pipelines and storage facilities in the western United States and provides other energy services. |
Questar 2014 Form 10-Q | 14 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Questar Gas | |||||||||||||||||||||||
Gas purchases | $ | 0.1 | $ | 0.1 | $ | 96.7 | $ | 113.7 | $ | 169.6 | $ | 153.6 | |||||||||||
Operator service fee | 82.3 | 68.2 | 265.8 | 215.2 | 345.2 | 284.7 | |||||||||||||||||
Transportation and storage | 18.1 | 18.5 | 58.8 | 58.6 | 80.3 | 79.7 | |||||||||||||||||
Gathering | 4.5 | 4.5 | 14.2 | 13.6 | 19.4 | 18.1 | |||||||||||||||||
Royalties | 14.9 | 11.0 | 50.5 | 32.4 | 62.4 | 41.0 | |||||||||||||||||
Storage (injection) withdrawal, net | (39.0 | ) | (37.3 | ) | (27.6 | ) | (18.1 | ) | (10.3 | ) | 1.9 | ||||||||||||
Purchased-gas account adjustment | (25.3 | ) | (15.9 | ) | (63.4 | ) | 5.1 | (46.5 | ) | 17.2 | |||||||||||||
Other | 1.2 | 1.0 | 3.6 | 3.7 | 4.9 | 4.9 | |||||||||||||||||
Total Questar Gas cost of natural gas sold | 56.8 | 50.1 | 398.6 | 424.2 | 625.0 | 601.1 | |||||||||||||||||
Elimination of Questar Gas cost of natural gas sold - affiliated companies | (99.9 | ) | (85.6 | ) | (320.6 | ) | (269.5 | ) | (422.0 | ) | (358.0 | ) | |||||||||||
Total Questar Gas cost of natural gas sold - unaffiliated parties | (43.1 | ) | (35.5 | ) | 78.0 | 154.7 | 203.0 | 243.1 | |||||||||||||||
Questar Pipeline | |||||||||||||||||||||||
Total Questar Pipeline cost of sales | 0.6 | 0.5 | 3.0 | 2.7 | 6.4 | 7.5 | |||||||||||||||||
Other cost of sales | 0.2 | — | 0.6 | — | 0.7 | — | |||||||||||||||||
Total cost of sales | $ | (42.3 | ) | $ | (35.0 | ) | $ | 81.6 | $ | 157.4 | $ | 210.1 | $ | 250.6 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||||
Weighted-average basic common shares outstanding | 175.8 | 175.5 | 175.8 | 175.4 | 175.7 | 175.5 | |||||||||||
Potential number of shares issuable under the Company's LTSIP | 0.3 | — | 0.3 | 0.7 | 0.3 | 0.6 | |||||||||||
Weighted-average diluted common shares outstanding | 176.1 | 175.5 | 176.1 | 176.1 | 176.0 | 176.1 |
Questar 2014 Form 10-Q | 15 |
Pension and OPRB | Interest rate cash flow hedges | Long-term invest. | Total | Pension and OPRB | Interest rate cash flow hedges | Long-term invest. | Total | ||||||||||||||||||||||||
3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
AOCI at beginning of period | $ | (113.7 | ) | $ | (22.7 | ) | $ | 0.1 | $ | (136.3 | ) | $ | (213.5 | ) | $ | (23.0 | ) | $ | 0.1 | $ | (236.4 | ) | |||||||||
Reclassified from AOCI(1) | 3.7 | 0.1 | — | 3.8 | 9.0 | 0.1 | — | 9.1 | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||||||||||
Reclassified from AOCI(2) | (1.3 | ) | — | — | (1.3 | ) | (3.4 | ) | — | — | (3.4 | ) | |||||||||||||||||||
Net other comprehensive income | 2.4 | 0.1 | — | 2.5 | 5.6 | 0.1 | — | 5.7 | |||||||||||||||||||||||
AOCI at September 30, | $ | (111.3 | ) | $ | (22.6 | ) | $ | 0.1 | $ | (133.8 | ) | $ | (207.9 | ) | $ | (22.9 | ) | $ | 0.1 | $ | (230.7 | ) |
Pension and OPRB | Interest rate cash flow hedges | Long-term invest. | Total | Pension and OPRB | Interest rate cash flow hedges | Long-term invest. | Total | ||||||||||||||||||||||||
9 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
AOCI at beginning of period | $ | (119.0 | ) | $ | (22.9 | ) | $ | 0.1 | $ | (141.8 | ) | $ | (223.2 | ) | $ | (23.2 | ) | $ | 0.1 | $ | (246.3 | ) | |||||||||
OCI before reclassifications | — | — | — | — | — | — | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||
Reclassified from AOCI(1) | 12.5 | 0.4 | — | 12.9 | 24.7 | 0.4 | — | 25.1 | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||||||||||
OCI before reclassifications | — | — | — | — | — | — | 0.1 | 0.1 | |||||||||||||||||||||||
Reclassified from AOCI(2) | (4.8 | ) | (0.1 | ) | — | (4.9 | ) | (9.4 | ) | (0.1 | ) | — | (9.5 | ) | |||||||||||||||||
Total income taxes | (4.8 | ) | (0.1 | ) | — | (4.9 | ) | (9.4 | ) | (0.1 | ) | 0.1 | (9.4 | ) | |||||||||||||||||
Net other comprehensive income | 7.7 | 0.3 | — | 8.0 | 15.3 | 0.3 | — | 15.6 | |||||||||||||||||||||||
AOCI at September 30, | $ | (111.3 | ) | $ | (22.6 | ) | $ | 0.1 | $ | (133.8 | ) | $ | (207.9 | ) | $ | (22.9 | ) | $ | 0.1 | $ | (230.7 | ) |
Questar 2014 Form 10-Q | 16 |
Pension and OPRB | Interest rate cash flow hedges | Long-term invest. | Total | ||||||||||||
12 Months Ended | |||||||||||||||
September 30, 2014 | |||||||||||||||
(in millions) | |||||||||||||||
AOCI at beginning of period | $ | (207.9 | ) | $ | (22.9 | ) | $ | 0.1 | $ | (230.7 | ) | ||||
OCI before reclassifications | 135.8 | — | — | 135.8 | |||||||||||
Reclassified from AOCI(1) | 20.8 | 0.5 | — | 21.3 | |||||||||||
Income taxes | |||||||||||||||
OCI before reclassifications | (51.9 | ) | — | — | (51.9 | ) | |||||||||
Reclassified from AOCI(2) | (8.1 | ) | (0.2 | ) | — | (8.3 | ) | ||||||||
Total income taxes | (60.0 | ) | (0.2 | ) | — | (60.2 | ) | ||||||||
Net other comprehensive income | 96.6 | 0.3 | — | 96.9 | |||||||||||
AOCI at September 30, | $ | (111.3 | ) | $ | (22.6 | ) | $ | 0.1 | $ | (133.8 | ) |
Questar 2014 Form 10-Q | 17 |
9 Months Ended | |||||||
September 30, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
AROs at beginning of year | $ | 67.7 | $ | 67.2 | |||
Accretion | 2.5 | 2.4 | |||||
Liabilities incurred | 0.7 | 4.2 | |||||
Revisions in estimated cash flows | 0.4 | (6.8 | ) | ||||
Liabilities settled | (2.1 | ) | (1.1 | ) | |||
AROs at September 30, | $ | 69.2 | $ | 65.9 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 7.3 | $ | 7.3 | $ | — | $ | — | $ | 16.0 | $ | 16.0 | |||||||||||
Long-term investment | 1 | 15.8 | 15.8 | 16.8 | 16.8 | 17.3 | 17.3 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | — | — | 1.6 | 1.6 | — | — | |||||||||||||||||
Short-term debt | 1 | 234.0 | 234.0 | 355.0 | 355.0 | 276.0 | 276.0 | |||||||||||||||||
Long-term debt | 2 | 1,245.7 | 1,364.0 | 1,097.5 | 1,191.1 | 1,247.1 | 1,310.8 |
Questar 2014 Form 10-Q | 18 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | — | $ | — | $ | — | $ | — | $ | 8.8 | $ | 8.8 | |||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | 2.1 | 2.1 | 1.4 | 1.4 | — | — | |||||||||||||||||
Notes payable to Questar | 1 | 90.8 | 90.8 | 195.0 | 195.0 | 17.7 | 17.7 | |||||||||||||||||
Long-term debt | 2 | 534.5 | 602.8 | 384.5 | 425.6 | 534.5 | 568.0 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Sept. 30, 2014 | Sept. 30, 2013 | Dec. 31, 2013 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 0.4 | $ | 0.4 | $ | 1.5 | $ | 1.5 | $ | 2.7 | $ | 2.7 | |||||||||||
Notes receivable from Questar | 1 | 35.2 | 35.2 | 36.6 | 36.6 | 29.4 | 29.4 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Long-term debt | 2 | 458.8 | 505.0 | 458.8 | 505.5 | 458.9 | 486.0 |
Questar 2014 Form 10-Q | 19 |
Options Outstanding | Exercise Price Range | Weighted-Average Exercise Price | ||||||||||||
Balance at December 31, 2013 | 717,840 | $ | 7.84 | - | $ | 17.35 | $ | 11.84 | ||||||
Exercised | (67,559 | ) | 7.84 | - | 13.10 | 8.78 | ||||||||
Balance at September 30, 2014 | 650,281 | $ | 7.84 | - | $ | 17.35 | $ | 12.16 |
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of exercise prices | Number outstanding at Sept. 30, 2014 | Weighted-average remaining term in years | Weighted-average exercise price | Number exercisable at Sept. 30, 2014 | Weighted-average exercise price | |||||||||||||||||
$ | 7.84 | - | $ | 11.40 | 341,948 | 1.3 | $ | 10.90 | 341,948 | $ | 10.90 | |||||||||||
13.10 | - | 17.35 | 308,333 | 1.8 | 13.55 | 308,333 | 13.55 | |||||||||||||||
650,281 | 1.5 | $ | 12.16 | 650,281 | $ | 12.16 |
Questar 2014 Form 10-Q | 20 |
Restricted Shares Outstanding | Price Range | Weighted-Average Price | ||||||||||||
Balance at December 31, 2013 | 392,327 | $ | 15.22 | - | $ | 21.53 | $ | 18.28 | ||||||
Vested | (284,154 | ) | 15.22 | - | 21.53 | 17.85 | ||||||||
Forfeited | (661 | ) | 19.39 | - | 20.90 | 20.00 | ||||||||
Balance at September 30, 2014 | 107,512 | $ | 15.98 | - | $ | 21.53 | $ | 19.41 |
RSUs Outstanding | Price Range | Weighted-Average Price | ||||||||||||
Balance at December 31, 2013 | 316,268 | $ | 22.17 | - | $ | 25.44 | $ | 23.62 | ||||||
Granted | 353,540 | 22.81 | - | 24.70 | 23.60 | |||||||||
Vested | (131,007 | ) | 22.17 | - | 25.44 | 23.64 | ||||||||
Forfeited | (10,225 | ) | 23.60 | - | 23.62 | 23.60 | ||||||||
Balance at September 30, 2014 | 528,576 | $ | 22.17 | - | $ | 24.70 | $ | 23.60 |
Questar 2014 Form 10-Q | 21 |
Target Number of Performance Shares Outstanding | Grant-Date Fair Value Range | Weighted- Average Grant-Date Fair Value | ||||||||||||
Balance at December 31, 2013 | 387,879 | $ | 18.23 | - | $ | 39.62 | $ | 27.61 | ||||||
Granted | 139,611 | 31.07 | 31.07 | 31.07 | ||||||||||
Payout adjustment(1) | (76,657 | ) | 18.23 | 18.23 | 18.23 | |||||||||
Distributed(1) | (51,104 | ) | 18.23 | 18.23 | 18.23 | |||||||||
Forfeited | (5,660 | ) | 25.42 | - | 39.62 | 33.06 | ||||||||
Balance at September 30, 2014 | 394,069 | $ | 25.42 | - | $ | 39.62 | $ | 31.80 |
Questar 2014 Form 10-Q | 22 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues from Unaffiliated Customers | |||||||||||||||||||||||
Questar Gas | $ | 100.7 | $ | 89.4 | $ | 642.0 | $ | 647.8 | $ | 979.4 | $ | 928.8 | |||||||||||
Wexpro | 9.4 | 13.2 | 29.5 | 32.0 | 42.6 | 41.0 | |||||||||||||||||
Questar Pipeline | 47.3 | 47.0 | 143.4 | 142.3 | 190.6 | 195.3 | |||||||||||||||||
Other | 0.5 | — | 1.2 | — | 1.4 | — | |||||||||||||||||
Total | $ | 157.9 | $ | 149.6 | $ | 816.1 | $ | 822.1 | $ | 1,214.0 | $ | 1,165.1 | |||||||||||
Revenues from Affiliated Companies | |||||||||||||||||||||||
Questar Gas | $ | — | $ | 0.2 | $ | — | $ | 0.6 | $ | — | $ | 0.8 | |||||||||||
Wexpro | 82.3 | 68.1 | 266.3 | 215.2 | 345.9 | 284.7 | |||||||||||||||||
Questar Pipeline | 17.7 | 17.6 | 54.7 | 54.8 | 76.6 | 74.0 | |||||||||||||||||
Total | $ | 100.0 | $ | 85.9 | $ | 321.0 | $ | 270.6 | $ | 422.5 | $ | 359.5 | |||||||||||
Operating Income (Loss) | |||||||||||||||||||||||
Questar Gas | $ | (9.4 | ) | $ | (11.2 | ) | $ | 60.7 | $ | 55.3 | $ | 107.3 | $ | 95.6 | |||||||||
Wexpro | 47.2 | 40.7 | 141.5 | 121.9 | 187.3 | 162.1 | |||||||||||||||||
Questar Pipeline | 28.8 | (52.6 | ) | 89.3 | 5.7 | 119.1 | 34.5 | ||||||||||||||||
Corporate and other | 2.3 | 3.7 | 2.2 | 0.3 | 2.6 | (0.4 | ) | ||||||||||||||||
Total | $ | 68.9 | $ | (19.4 | ) | $ | 293.7 | $ | 183.2 | $ | 416.3 | $ | 291.8 | ||||||||||
Net Income (Loss) | |||||||||||||||||||||||
Questar Gas | $ | (9.1 | ) | $ | (9.0 | ) | $ | 27.2 | $ | 26.8 | $ | 53.2 | $ | 50.6 | |||||||||
Wexpro | 31.1 | 27.5 | 93.0 | 82.2 | 121.4 | 109.6 | |||||||||||||||||
Questar Pipeline | 14.9 | (37.9 | ) | 46.3 | (7.6 | ) | 62.1 | 7.3 | |||||||||||||||
Corporate and other | 1.7 | 0.2 | (2.5 | ) | (8.3 | ) | (4.6 | ) | (10.6 | ) | |||||||||||||
Total | $ | 38.6 | $ | (19.2 | ) | $ | 164.0 | $ | 93.1 | $ | 232.1 | $ | 156.9 |
Questar 2014 Form 10-Q | 23 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 2.9 | $ | 3.3 | $ | 8.9 | $ | 10.4 | $ | 12.4 | $ | 13.4 | |||||||||||
Interest cost | 8.3 | 7.5 | 25.0 | 23.0 | 32.6 | 31.3 | |||||||||||||||||
Expected return on plan assets | (11.4 | ) | (9.5 | ) | (32.7 | ) | (28.6 | ) | (42.2 | ) | (36.7 | ) | |||||||||||
Prior service and other costs | 0.1 | 0.2 | 0.4 | 0.8 | 0.7 | 0.8 | |||||||||||||||||
Recognized net actuarial loss | 3.7 | 8.0 | 11.6 | 21.7 | 18.8 | 30.4 | |||||||||||||||||
Net pension cost | $ | 3.6 | $ | 9.5 | $ | 13.2 | $ | 27.3 | $ | 22.3 | $ | 39.2 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.5 | $ | 0.6 | $ | 0.6 | $ | 0.8 | |||||||||||
Interest cost | 0.9 | 0.9 | 2.9 | 2.8 | 3.8 | 3.8 | |||||||||||||||||
Expected return on plan assets | (0.8 | ) | (0.6 | ) | (2.3 | ) | (1.9 | ) | (3.0 | ) | (2.5 | ) | |||||||||||
Amortization of transition obligation | — | — | — | — | — | 0.4 | |||||||||||||||||
Recognized net actuarial loss (gain) | (0.1 | ) | 0.8 | 0.5 | 2.2 | 1.3 | 3.1 | ||||||||||||||||
Accretion of regulatory liability | 0.2 | 0.2 | 0.6 | 0.5 | 0.6 | 0.3 | |||||||||||||||||
Net postretirement benefit cost | $ | 0.4 | $ | 1.5 | $ | 2.2 | $ | 4.2 | $ | 3.3 | $ | 5.9 |
Questar 2014 Form 10-Q | 24 |
Questar 2014 Form 10-Q | 25 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | 2014 | 2013 | Change | |||||||||||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||||||||||||||
Questar Gas | $ | (9.1 | ) | $ | (9.0 | ) | $ | (0.1 | ) | $ | 27.2 | $ | 26.8 | $ | 0.4 | $ | 53.2 | $ | 50.6 | $ | 2.6 | ||||||||||||||
Wexpro | 31.1 | 27.5 | 3.6 | 93.0 | 82.2 | 10.8 | 121.4 | 109.6 | 11.8 | ||||||||||||||||||||||||||
Questar Pipeline(1) | 14.9 | (37.9 | ) | 52.8 | 46.3 | (7.6 | ) | 53.9 | 62.1 | 7.3 | 54.8 | ||||||||||||||||||||||||
Corporate and other | 1.7 | 0.2 | 1.5 | (2.5 | ) | (8.3 | ) | 5.8 | (4.6 | ) | (10.6 | ) | 6.0 | ||||||||||||||||||||||
Net income (loss) | $ | 38.6 | $ | (19.2 | ) | $ | 57.8 | $ | 164.0 | $ | 93.1 | $ | 70.9 | $ | 232.1 | $ | 156.9 | $ | 75.2 | ||||||||||||||||
Add: after-tax asset impairment charge(1) | — | 52.4 | (52.4 | ) | — | 52.4 | (52.4 | ) | — | 52.4 | (52.4 | ) | |||||||||||||||||||||||
Adjusted earnings | $ | 38.6 | $ | 33.2 | $ | 5.4 | $ | 164.0 | $ | 145.5 | $ | 18.5 | $ | 232.1 | $ | 209.3 | $ | 22.8 | |||||||||||||||||
Earnings (loss) per share - diluted | $ | 0.22 | $ | (0.11 | ) | $ | 0.33 | $ | 0.93 | $ | 0.53 | $ | 0.40 | $ | 1.32 | $ | 0.89 | $ | 0.43 | ||||||||||||||||
Add: diluted loss per share attributable to impairment(1) | — | 0.29 | (0.29 | ) | — | 0.29 | (0.29 | ) | — | 0.29 | (0.29 | ) | |||||||||||||||||||||||
Adjusted earnings per share - diluted | $ | 0.22 | $ | 0.18 | $ | 0.04 | $ | 0.93 | $ | 0.82 | $ | 0.11 | $ | 1.32 | $ | 1.18 | $ | 0.14 | |||||||||||||||||
Weighted-average diluted shares | 176.1 | 175.5 | 0.6 | 176.1 | 176.1 | — | 176.0 | 176.1 | (0.1 | ) | |||||||||||||||||||||||||
Add: dilutive shares attributable to add-back of impairment(1) | — | 0.4 | (0.4 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Adjusted weighted-average diluted shares | 176.1 | 175.9 | 0.2 | 176.1 | 176.1 | — | 176.0 | 176.1 | (0.1 | ) |
Questar 2014 Form 10-Q | 26 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | 2014 | 2013 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income (Loss) | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 79.5 | $ | 71.4 | $ | 8.1 | $ | 580.3 | $ | 593.5 | $ | (13.2 | ) | $ | 897.1 | $ | 853.5 | $ | 43.6 | ||||||||||||||||
Industrial sales | 6.7 | 6.9 | (0.2 | ) | 20.4 | 20.2 | 0.2 | 28.3 | 29.0 | (0.7 | ) | ||||||||||||||||||||||||
Transportation for industrial customers | 4.6 | 3.9 | 0.7 | 13.2 | 10.5 | 2.7 | 17.1 | 13.7 | 3.4 | ||||||||||||||||||||||||||
Service | 1.0 | 1.0 | — | 3.8 | 3.8 | — | 4.8 | 4.7 | 0.1 | ||||||||||||||||||||||||||
Other | 8.9 | 6.4 | 2.5 | 24.3 | 20.4 | 3.9 | 32.1 | 28.7 | 3.4 | ||||||||||||||||||||||||||
Total Revenues | 100.7 | 89.6 | 11.1 | 642.0 | 648.4 | (6.4 | ) | 979.4 | 929.6 | 49.8 | |||||||||||||||||||||||||
Cost of natural gas sold | 56.8 | 50.1 | 6.7 | 398.6 | 424.2 | (25.6 | ) | 625.0 | 601.1 | 23.9 | |||||||||||||||||||||||||
Margin | 43.9 | 39.5 | 4.4 | 243.4 | 224.2 | 19.2 | 354.4 | 328.5 | 25.9 | ||||||||||||||||||||||||||
Other Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 22.7 | 20.9 | 1.8 | 88.8 | 78.1 | 10.7 | 123.8 | 109.9 | 13.9 | ||||||||||||||||||||||||||
General and administrative | 12.3 | 12.1 | 0.2 | 39.0 | 38.5 | 0.5 | 53.0 | 53.2 | (0.2 | ) | |||||||||||||||||||||||||
Retirement incentive | — | — | — | — | — | — | — | 2.4 | (2.4 | ) | |||||||||||||||||||||||||
Depreciation and amortization | 13.5 | 12.4 | 1.1 | 40.3 | 36.9 | 3.4 | 53.1 | 49.1 | 4.0 | ||||||||||||||||||||||||||
Other taxes | 4.8 | 5.3 | (0.5 | ) | 14.7 | 15.4 | (0.7 | ) | 17.3 | 18.3 | (1.0 | ) | |||||||||||||||||||||||
Total Other Operating Expenses | 53.3 | 50.7 | 2.6 | 182.8 | 168.9 | 13.9 | 247.2 | 232.9 | 14.3 | ||||||||||||||||||||||||||
Net gain from asset sales | — | — | — | 0.1 | — | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||||||||||
OPERATING INCOME (LOSS) | (9.4 | ) | (11.2 | ) | 1.8 | 60.7 | 55.3 | 5.4 | 107.3 | 95.6 | 11.7 | ||||||||||||||||||||||||
Interest and other income | 1.7 | 1.3 | 0.4 | 4.3 | 3.8 | 0.5 | 5.6 | 5.5 | 0.1 | ||||||||||||||||||||||||||
Interest expense | (7.1 | ) | (5.3 | ) | (1.8 | ) | (21.2 | ) | (16.7 | ) | (4.5 | ) | (26.8 | ) | (21.7 | ) | (5.1 | ) | |||||||||||||||||
Income taxes | 5.7 | 6.2 | (0.5 | ) | (16.6 | ) | (15.6 | ) | (1.0 | ) | (32.9 | ) | (28.8 | ) | (4.1 | ) | |||||||||||||||||||
NET INCOME (LOSS) | $ | (9.1 | ) | $ | (9.0 | ) | $ | (0.1 | ) | $ | 27.2 | $ | 26.8 | $ | 0.4 | $ | 53.2 | $ | 50.6 | $ | 2.6 | ||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Natural gas volumes (MMdth) | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | 7.4 | 7.2 | 0.2 | 65.8 | 75.4 | (9.6 | ) | 105.3 | 107.3 | (2.0 | ) | ||||||||||||||||||||||||
Industrial sales | 1.0 | 1.1 | (0.1 | ) | 3.1 | 3.2 | (0.1 | ) | 4.3 | 4.3 | — | ||||||||||||||||||||||||
Transportation for industrial customers | 21.9 | 16.3 | 5.6 | 60.5 | 45.9 | 14.6 | 79.1 | 62.1 | 17.0 | ||||||||||||||||||||||||||
Total industrial | 22.9 | 17.4 | 5.5 | 63.6 | 49.1 | 14.5 | 83.4 | 66.4 | 17.0 | ||||||||||||||||||||||||||
Total deliveries | 30.3 | 24.6 | 5.7 | 129.4 | 124.5 | 4.9 | 188.7 | 173.7 | 15.0 | ||||||||||||||||||||||||||
Natural gas revenue (per dth) | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 10.70 | $ | 9.86 | $ | 0.84 | $ | 8.82 | $ | 7.87 | $ | 0.95 | $ | 8.52 | $ | 7.95 | $ | 0.57 | |||||||||||||||||
Industrial sales | 6.59 | 6.53 | 0.06 | 6.51 | 6.27 | 0.24 | 6.65 | 6.67 | (0.02 | ) | |||||||||||||||||||||||||
Transportation for industrial customers | 0.21 | 0.24 | (0.03 | ) | 0.22 | 0.23 | (0.01 | ) | 0.22 | 0.22 | — | ||||||||||||||||||||||||
Colder (warmer) than normal temperatures | (60%) | (38%) | (22%) | (17%) | 11% | (28%) | (9%) | —% | (9%) | ||||||||||||||||||||||||||
Temperature-adjusted usage per customer (dth) | 7.1 | 7.1 | — | 74.3 | 71.0 | 3.3 | 111.3 | 105.9 | 5.4 | ||||||||||||||||||||||||||
Customers at Sept. 30, (in thousands) | 955 | 939 | 16 |
Questar 2014 Form 10-Q | 27 |
3 Months 2014 vs. 2013 | 9 Months 2014 vs. 2013 | 12 Months 2014 vs. 2013 | |||||||||
(in millions) | |||||||||||
Customer growth | $ | 0.6 | $ | 3.1 | $ | 4.5 | |||||
Transportation | 1.0 | 3.2 | 3.7 | ||||||||
Change in rates | 3.1 | 5.6 | 5.6 | ||||||||
Infrastructure-replacement cost recovery | (1.3 | ) | (2.8 | ) | 0.1 | ||||||
Demand-side management cost recovery | 0.8 | 10.5 | 14.4 | ||||||||
Alternative fuel tax credit | (0.7 | ) | (1.3 | ) | (2.6 | ) | |||||
Recovery of gas-cost portion of bad-debt costs | 0.7 | 0.7 | — | ||||||||
Other | 0.2 | 0.2 | 0.2 | ||||||||
Increase | $ | 4.4 | $ | 19.2 | $ | 25.9 |
Questar 2014 Form 10-Q | 28 |
Questar 2014 Form 10-Q | 29 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | 2014 | 2013 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Operator service fee | $ | 82.6 | $ | 69.3 | $ | 13.3 | $ | 266.0 | $ | 215.0 | $ | 51.0 | $ | 345.0 | $ | 283.8 | $ | 61.2 | |||||||||||||||||
Oil and NGL sales | 7.3 | 10.8 | (3.5 | ) | 25.5 | 30.9 | (5.4 | ) | 35.5 | 40.6 | (5.1 | ) | |||||||||||||||||||||||
Natural gas sales and other | 1.8 | 1.2 | 0.6 | 4.3 | 1.3 | 3.0 | 8.0 | 1.3 | 6.7 | ||||||||||||||||||||||||||
Total Revenues | 91.7 | 81.3 | 10.4 | 295.8 | 247.2 | 48.6 | 388.5 | 325.7 | 62.8 | ||||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 6.9 | 6.5 | 0.4 | 21.1 | 20.7 | 0.4 | 28.2 | 27.8 | 0.4 | ||||||||||||||||||||||||||
Gathering and other handling | — | 0.2 | (0.2 | ) | 0.4 | 0.2 | 0.2 | 1.0 | 0.2 | 0.8 | |||||||||||||||||||||||||
General and administrative | 7.5 | 6.7 | 0.8 | 23.6 | 21.3 | 2.3 | 31.0 | 28.1 | 2.9 | ||||||||||||||||||||||||||
Retirement incentive | — | — | — | — | — | — | — | 0.2 | (0.2 | ) | |||||||||||||||||||||||||
Production and other taxes | 9.2 | 6.9 | 2.3 | 30.5 | 21.0 | 9.5 | 37.8 | 25.7 | 12.1 | ||||||||||||||||||||||||||
Depreciation, depletion and amortization | 22.4 | 20.1 | 2.3 | 78.2 | 61.6 | 16.6 | 102.4 | 80.8 | 21.6 | ||||||||||||||||||||||||||
Abandonment and impairment | — | — | — | 2.0 | — | 2.0 | 2.0 | — | 2.0 | ||||||||||||||||||||||||||
Oil and NGL income sharing | — | 0.2 | (0.2 | ) | — | 0.6 | (0.6 | ) | — | 0.8 | (0.8 | ) | |||||||||||||||||||||||
Total Operating Expenses | 46.0 | 40.6 | 5.4 | 155.8 | 125.4 | 30.4 | 202.4 | 163.6 | 38.8 | ||||||||||||||||||||||||||
Net gain from asset sales | 1.5 | — | 1.5 | 1.5 | 0.1 | 1.4 | 1.2 | — | 1.2 | ||||||||||||||||||||||||||
OPERATING INCOME | 47.2 | 40.7 | 6.5 | 141.5 | 121.9 | 19.6 | 187.3 | 162.1 | 25.2 | ||||||||||||||||||||||||||
Interest and other income | 0.3 | 1.4 | (1.1 | ) | 0.7 | 4.2 | (3.5 | ) | 1.5 | 5.2 | (3.7 | ) | |||||||||||||||||||||||
Interest expense | — | (0.1 | ) | 0.1 | — | (0.1 | ) | 0.1 | — | (0.1 | ) | 0.1 | |||||||||||||||||||||||
Income taxes | (16.4 | ) | (14.5 | ) | (1.9 | ) | (49.2 | ) | (43.8 | ) | (5.4 | ) | (67.4 | ) | (57.6 | ) | (9.8 | ) | |||||||||||||||||
NET INCOME | $ | 31.1 | $ | 27.5 | $ | 3.6 | $ | 93.0 | $ | 82.2 | $ | 10.8 | $ | 121.4 | $ | 109.6 | $ | 11.8 | |||||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Production volumes | |||||||||||||||||||||||||||||||||||
Natural gas - cost-of-service deliveries (Bcf) | 15.4 | 13.3 | 2.1 | 51.6 | 43.5 | 8.1 | 67.3 | 57.0 | 10.3 | ||||||||||||||||||||||||||
Natural gas - sales (Bcf) | 0.1 | 0.4 | (0.3 | ) | 0.6 | 0.4 | 0.2 | 1.6 | 0.5 | 1.1 | |||||||||||||||||||||||||
Oil and NGL (Mbbl) | 145 | 147 | (2 | ) | 454 | 458 | (4 | ) | 613 | 640 | (27 | ) | |||||||||||||||||||||||
Natural gas average sales price (per Mcf) | $ | 4.54 | $ | 3.65 | $ | 0.89 | $ | 4.49 | $ | 3.64 | $ | 0.85 | $ | 4.04 | $ | 3.59 | $ | 0.45 | |||||||||||||||||
Oil and NGL average sales price (per bbl) | $ | 85.03 | $ | 92.52 | $ | (7.49 | ) | $ | 86.27 | $ | 86.05 | $ | 0.22 | $ | 85.23 | $ | 83.61 | $ | 1.62 | ||||||||||||||||
Investment base at Sept. 30, (in millions) | $ | 664.6 | $ | 545.9 | $ | 118.7 |
Questar 2014 Form 10-Q | 30 |
12 Months Ended Sept. 30, | |||||||
2014 | 2013 | ||||||
(in millions) | |||||||
Beginning investment base | $ | 545.9 | $ | 530.0 | |||
Property acquisitions | 103.7 | — | |||||
Successful development wells | 122.9 | 104.1 | |||||
Depreciation, depletion and amortization | (98.2 | ) | (75.2 | ) | |||
Change in deferred income taxes | (9.7 | ) | (13.0 | ) | |||
Ending investment base | $ | 664.6 | $ | 545.9 |
Questar 2014 Form 10-Q | 31 |
Questar 2014 Form 10-Q | 32 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2014 | 2013 | Change | 2014 | 2013 | Change | 2014 | 2013 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income (Loss) | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Transportation | $ | 48.3 | $ | 47.9 | $ | 0.4 | $ | 146.0 | $ | 145.1 | $ | 0.9 | $ | 195.5 | $ | 193.9 | $ | 1.6 | |||||||||||||||||
Storage | 9.3 | 9.1 | 0.2 | 28.1 | 28.0 | 0.1 | 37.4 | 37.6 | (0.2 | ) | |||||||||||||||||||||||||
NGL sales - transportation | 1.6 | 2.4 | (0.8 | ) | 5.7 | 6.1 | (0.4 | ) | 7.3 | 7.9 | (0.6 | ) | |||||||||||||||||||||||
NGL sales - field services | 0.2 | 0.1 | 0.1 | 0.2 | 1.4 | (1.2 | ) | 0.7 | 2.7 | (2.0 | ) | ||||||||||||||||||||||||
Energy services | 3.2 | 3.3 | (0.1 | ) | 9.4 | 9.8 | (0.4 | ) | 12.3 | 13.8 | (1.5 | ) | |||||||||||||||||||||||
Natural gas sales | — | — | — | 1.5 | 0.8 | 0.7 | 4.5 | 5.2 | (0.7 | ) | |||||||||||||||||||||||||
Other | 2.4 | 1.8 | 0.6 | 7.2 | 5.9 | 1.3 | 9.5 | 8.2 | 1.3 | ||||||||||||||||||||||||||
Total Revenues | 65.0 | 64.6 | 0.4 | 198.1 | 197.1 | 1.0 | 267.2 | 269.3 | (2.1 | ) | |||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 9.5 | 8.8 | 0.7 | 25.5 | 23.2 | 2.3 | 34.8 | 32.0 | 2.8 | ||||||||||||||||||||||||||
General and administrative | 10.2 | 10.8 | (0.6 | ) | 32.5 | 35.3 | (2.8 | ) | 43.9 | 48.8 | (4.9 | ) | |||||||||||||||||||||||
Retirement incentive | — | — | — | — | — | — | — | 0.9 | (0.9 | ) | |||||||||||||||||||||||||
Depreciation and amortization | 13.5 | 14.0 | (0.5 | ) | 40.7 | 42.2 | (1.5 | ) | 54.0 | 55.9 | (1.9 | ) | |||||||||||||||||||||||
Asset impairment | — | 80.6 | (80.6 | ) | — | 80.6 | (80.6 | ) | — | 80.6 | (80.6 | ) | |||||||||||||||||||||||
Other taxes | 2.4 | 2.5 | (0.1 | ) | 7.1 | 7.4 | (0.3 | ) | 9.0 | 9.2 | (0.2 | ) | |||||||||||||||||||||||
Cost of sales | 0.6 | 0.5 | 0.1 | 3.0 | 2.7 | 0.3 | 6.4 | 7.5 | (1.1 | ) | |||||||||||||||||||||||||
Total Operating Expenses | 36.2 | 117.2 | (81.0 | ) | 108.8 | 191.4 | (82.6 | ) | 148.1 | 234.9 | (86.8 | ) | |||||||||||||||||||||||
Net gain from asset sales | — | — | — | — | — | — | — | 0.1 | (0.1 | ) | |||||||||||||||||||||||||
OPERATING INCOME (LOSS) | 28.8 | (52.6 | ) | 81.4 | 89.3 | 5.7 | 83.6 | 119.1 | 34.5 | 84.6 | |||||||||||||||||||||||||
Interest and other income | 0.3 | 0.6 | (0.3 | ) | 0.7 | 1.2 | (0.5 | ) | 1.3 | 1.5 | (0.2 | ) | |||||||||||||||||||||||
Income from unconsolidated affiliate | 0.9 | 0.9 | — | 2.7 | 2.8 | (0.1 | ) | 3.6 | 3.7 | (0.1 | ) | ||||||||||||||||||||||||
Interest expense | (6.5 | ) | (6.5 | ) | — | (19.6 | ) | (19.5 | ) | (0.1 | ) | (25.9 | ) | (26.0 | ) | 0.1 | |||||||||||||||||||
Income taxes | (8.6 | ) | 19.7 | (28.3 | ) | (26.8 | ) | 2.2 | (29.0 | ) | (36.0 | ) | (6.4 | ) | (29.6 | ) | |||||||||||||||||||
NET INCOME (LOSS) | $ | 14.9 | $ | (37.9 | ) | $ | 52.8 | $ | 46.3 | $ | (7.6 | ) | $ | 53.9 | $ | 62.1 | $ | 7.3 | $ | 54.8 | |||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Natural gas transportation volumes (MMdth) | |||||||||||||||||||||||||||||||||||
For unaffiliated customers | 186.1 | 193.5 | (7.4 | ) | 543.9 | 565.3 | (21.4 | ) | 732.0 | 769.3 | (37.3 | ) | |||||||||||||||||||||||
For Questar Gas | 21.1 | 15.0 | 6.1 | 85.1 | 81.7 | 3.4 | 122.9 | 105.1 | 17.8 | ||||||||||||||||||||||||||
Total transportation | 207.2 | 208.5 | (1.3 | ) | 629.0 | 647.0 | (18.0 | ) | 854.9 | 874.4 | (19.5 | ) | |||||||||||||||||||||||
Transportation revenue (per dth) | $ | 0.23 | $ | 0.23 | $ | — | $ | 0.23 | $ | 0.22 | $ | 0.01 | $ | 0.23 | $ | 0.22 | $ | 0.01 | |||||||||||||||||
Net firm-daily transportation demand at Sept. 30, (in Mdth) | 5,058 | 5,020 | 38 | ||||||||||||||||||||||||||||||||
Natural gas processing | |||||||||||||||||||||||||||||||||||
NGL sales (Mbbl) | 31 | 42 | (11 | ) | 100 | 127 | (27 | ) | 136 | 179 | (43 | ) | |||||||||||||||||||||||
NGL average sales price (per bbl) | $ | 56.03 | $ | 59.01 | $ | (2.98 | ) | $ | 58.70 | $ | 58.66 | $ | 0.04 | $ | 59.10 | $ | 58.31 | $ | 0.79 |
Questar 2014 Form 10-Q | 33 |
Questar 2014 Form 10-Q | 34 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Questar Fueling net loss | $ | (0.3 | ) | $ | (0.1 | ) | $ | (0.9 | ) | $ | (0.5 | ) | $ | (1.2 | ) | $ | (0.7 | ) |
Questar 2014 Form 10-Q | 35 |
9 Months Ended Sept. 30, | |||||||||||
2014 | 2013 | Change | |||||||||
(in millions) | |||||||||||
Net income | $ | 164.0 | $ | 93.1 | $ | 70.9 | |||||
Noncash adjustments to net income | 180.8 | 275.5 | (94.7 | ) | |||||||
Changes in operating assets and liabilities | 17.7 | 55.4 | (37.7 | ) | |||||||
Net cash provided by operating activities | $ | 362.5 | $ | 424.0 | $ | (61.5 | ) |
9 Months Ended Sept. 30, | Forecast 12 Months Ending December 31, | ||||||||||
2014 | 2013 | 2014 | |||||||||
(in millions) | |||||||||||
Questar Gas | $ | 138.2 | $ | 119.3 | $ | 170 | |||||
Wexpro | 35.0 | 212.0 | 100 | ||||||||
Questar Pipeline | 45.3 | 56.2 | 70 | ||||||||
Corporate and other | 16.8 | 6.6 | 30 | ||||||||
Total capital expenditures | $ | 235.3 | $ | 394.1 | $ | 370 |
Questar 2014 Form 10-Q | 36 |
• | 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, 2013; |
• | general economic conditions, including the performance of financial markets and interest rates; |
• | changes in energy commodity prices; |
• | changes in industry trends; |
• | actions of regulators; |
• | changes in laws or regulations; and |
• | other factors, most of which are beyond the Company's control. |
Questar 2014 Form 10-Q | 37 |
Period | Total number of shares purchased(1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs(2) | Maximum number of shares that may yet be purchased under the plans or programs | ||||||||
Month #1 July 1, 2014 through July 31, 2014 | 465 | $ | 23.58 | — | 1,000,000 | |||||||
Month #2 August 1, 2014 through August 31, 2014 | 10,355 | $ | 21.97 | 10,355 | 989,645 | |||||||
Month #3 September 1, 2014 through September 30, 2014 | 27,869 | $ | 23.62 | — | 989,645 | |||||||
Total | 38,689 | $ | 23.18 | 10,355 |
Questar 2014 Form 10-Q | 38 |
QUESTAR CORPORATION QUESTAR GAS COMPANY QUESTAR PIPELINE COMPANY (Registrants) | |
October 30, 2014 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer, Questar and Questar Gas |
October 30, 2014 | /s/ R. Allan Bradley R. Allan Bradley President and Chief Executive Officer, Questar Pipeline |
October 30, 2014 | /s/ Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
Questar 2014 Form 10-Q | 39 |
Exhibit No. | Description |
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 and Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Gas Company | |
32.2 | Questar Gas Chief Executive Officer and Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Pipeline Company | |
32.3 | Questar Pipeline Chief Executive Officer and 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 2014 Form 10-Q | 40 |
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. |
October 30, 2014 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, 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. |
October 30, 2014 | /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. |
October 30, 2014 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, 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. |
October 30, 2014 | /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. |
October 30, 2014 | /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. |
October 30, 2014 | /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 | |
October 30, 2014 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
October 30, 2014 | /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 GAS COMPANY | |
October 30, 2014 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
October 30, 2014 | /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 | |
October 30, 2014 | /s/ R. Allan Bradley R. Allan Bradley President and Chief Executive Officer |
October 30, 2014 | /s/ Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
?`.5BI$3"@X8NW-L"U.BB<*EXG;C:>`QA^$IR<28
MIJ33P&.*;>,YV43AFPC^WIT&*26G)]_X*/9M2Q81SBG4LSG#)OK$ -^K(Z*3[6&5X$7?R49HS6ZI*=9M=(("!R_S
M6"Z?\X4<'?VHZM4*AW^3CB]]Q(.I])]C_BO_6;X-HK7++[[<^JJ7#;)1-+HX
M^_K%WIYB@LOV\V@/Y=6]MS_$%9^.]?*7-L!X:WPY2KS/\9Z!<>-?$3!:T==W
MCMD.!_`7RSJ]YG"TJ8&=3BS#':OX!H5R<+N(GY[]*W1D5MN91P\OP5E?);;[
MS[_]W_II!5#+TP#'-*KI5'Y\)1J2C)-O`TUY,`5JA$`AB,4.OA_'EPO1C[<9
M?OX+6^5^/[[,ENJS>K%53.C^_0HC_F,RR*Z=(\-),2:N'J[)'O'+Q>Q\45&X
M%/[IXW$P0@ZSLGAL+Q^]::P@O%4$:HJUU)^\\AH2"Q'"C0@D@N#5-5W[V)WW
MO^!:D1_Y/$81,VU*D`$3HAO<9\D(*`U3X:S16[%5!V-G8"AD 8%);
M"T/=X$ 8XB$ALJ%XW9W@I"(J_=D$G@K
M2'?Q"<7+RO4@^VE6X5%9G[JME\\,[TDW0-PW'^X&KY7/Z():G8IBU_/5AY)I
MT=#\.VNK2[5(`/;&ZIL6I7M]M:ET=]8VFY]3.`4W\#9>:9W8%AJ)^B>A*1_`
M!9[8?#BF4XA,363K6Y"=$O3?)D!F:U&G)1F'>Z5(R`A9'.+#TR^/=JU<3RF
M09@W2@(VOJ^9M3%GP:#ASH#8>3Y0!'VN,=W_U.W_F#D>0Y#6B((YBYG-/X2!
M36^THVLQ!,V'@4'/BO_&R;+U<7&MXY2/P6!A6AR/(,U6'B.$"'`PN
MV8G_E36GHFZ]DA_AUBA(H)8-GB'P1R