[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2016 | |
[ ] | 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 | 175,440,133 |
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 2016 Form 10-Q | 2 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Questar Gas | $ | 128.2 | $ | 141.7 | $ | 536.1 | $ | 516.5 | $ | 937.2 | $ | 936.1 | |||||||||||
Wexpro | 1.9 | 10.1 | 5.4 | 16.4 | 11.9 | 31.9 | |||||||||||||||||
Questar Pipeline | 42.9 | 46.5 | 85.9 | 93.3 | 180.5 | 187.4 | |||||||||||||||||
Other | 1.1 | 1.0 | 3.0 | 1.7 | 7.8 | 3.6 | |||||||||||||||||
Total Revenues | 174.1 | 199.3 | 630.4 | 627.9 | 1,137.4 | 1,159.0 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Cost of sales (excluding operating expenses shown separately) | (27.7 | ) | (9.0 | ) | 130.8 | 122.8 | 183.2 | 185.2 | |||||||||||||||
Operating and maintenance | 39.9 | 40.5 | 90.3 | 92.8 | 179.1 | 187.6 | |||||||||||||||||
General and administrative | 26.0 | 27.4 | 55.6 | 56.8 | 107.8 | 120.0 | |||||||||||||||||
Pension settlement costs | — | — | — | — | 16.7 | — | |||||||||||||||||
Merger and restructuring costs | 3.7 | — | 18.3 | — | 18.3 | — | |||||||||||||||||
Production and other taxes | 11.4 | 12.8 | 23.1 | 26.6 | 47.8 | 56.2 | |||||||||||||||||
Depreciation, depletion and amortization | 56.4 | 53.6 | 112.3 | 107.9 | 220.4 | 209.5 | |||||||||||||||||
Abandonment and impairment | 0.1 | 0.1 | 0.3 | 0.1 | 12.7 | 0.1 | |||||||||||||||||
Total Operating Expenses | 109.8 | 125.4 | 430.7 | 407.0 | 786.0 | 758.6 | |||||||||||||||||
Net gain from asset sales | 0.1 | 1.4 | 0.4 | 1.4 | 0.8 | 2.5 | |||||||||||||||||
OPERATING INCOME | 64.4 | 75.3 | 200.1 | 222.3 | 352.2 | 402.9 | |||||||||||||||||
Interest and other income | 1.1 | 1.5 | 2.1 | 2.9 | 3.4 | 6.5 | |||||||||||||||||
Income from unconsolidated affiliate | 0.9 | 1.0 | 1.9 | 1.9 | 3.7 | 3.6 | |||||||||||||||||
Interest expense | (15.5 | ) | (15.8 | ) | (31.3 | ) | (31.7 | ) | (62.6 | ) | (63.2 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 50.9 | 62.0 | 172.8 | 195.4 | 296.7 | 349.8 | |||||||||||||||||
Income taxes | (17.8 | ) | (21.4 | ) | (61.2 | ) | (70.2 | ) | (101.6 | ) | (123.5 | ) | |||||||||||
NET INCOME | $ | 33.1 | $ | 40.6 | $ | 111.6 | $ | 125.2 | $ | 195.1 | $ | 226.3 | |||||||||||
Earnings Per Common Share | |||||||||||||||||||||||
Basic | $ | 0.19 | $ | 0.23 | $ | 0.64 | $ | 0.71 | $ | 1.11 | $ | 1.29 | |||||||||||
Diluted | 0.19 | 0.23 | 0.64 | 0.71 | 1.11 | 1.28 | |||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Used in basic calculation | 176.0 | 176.4 | 175.9 | 176.3 | 175.9 | 176.1 | |||||||||||||||||
Used in diluted calculation | 176.2 | 176.6 | 176.2 | 176.5 | 176.1 | 176.4 | |||||||||||||||||
Dividends per common share | $ | 0.22 | $ | 0.21 | $ | 0.44 | $ | 0.42 | $ | 0.86 | $ | 0.80 |
Questar 2016 Form 10-Q | 3 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income | $ | 33.1 | $ | 40.6 | $ | 111.6 | $ | 125.2 | $ | 195.1 | $ | 226.3 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Pension and other postretirement benefits | 4.0 | 6.0 | 8.0 | 12.0 | 21.6 | (93.7 | ) | ||||||||||||||||
Interest rate cash flow hedge amortization | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | |||||||||||||||||
Commodity cash flow hedge | (0.9 | ) | (0.3 | ) | (1.1 | ) | (0.3 | ) | (1.0 | ) | (0.3 | ) | |||||||||||
Income taxes | (1.1 | ) | (2.2 | ) | (2.7 | ) | (4.6 | ) | (8.1 | ) | 35.9 | ||||||||||||
Net other comprehensive income (loss) | 2.1 | 3.7 | 4.5 | 7.5 | 13.0 | (57.5 | ) | ||||||||||||||||
COMPREHENSIVE INCOME | $ | 35.2 | $ | 44.3 | $ | 116.1 | $ | 132.7 | $ | 208.1 | $ | 168.8 |
Questar 2016 Form 10-Q | 4 |
June 30, 2016 | June 30, 2015 | Dec. 31, 2015 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 25.0 | |||||
Accounts receivable, net | 56.6 | 53.3 | 168.0 | ||||||||
Unbilled gas accounts receivable | 11.0 | 11.6 | 91.3 | ||||||||
Gas stored underground | 26.2 | 30.6 | 45.1 | ||||||||
Materials and supplies | 27.8 | 30.7 | 28.4 | ||||||||
Current regulatory assets | 21.0 | 57.1 | 70.0 | ||||||||
Prepaid expenses and other | 20.0 | 10.2 | 12.3 | ||||||||
Total Current Assets | 162.6 | 193.5 | 440.1 | ||||||||
Property, Plant and Equipment | 6,313.4 | 6,057.2 | 6,182.0 | ||||||||
Accumulated depreciation, depletion and amortization | (2,424.2 | ) | (2,272.5 | ) | (2,333.3 | ) | |||||
Net Property, Plant and Equipment | 3,889.2 | 3,784.7 | 3,848.7 | ||||||||
Investment in unconsolidated affiliate | 23.5 | 24.3 | 23.9 | ||||||||
Noncurrent regulatory assets | 19.7 | 23.7 | 14.9 | ||||||||
Other noncurrent assets | 45.6 | 43.9 | 44.2 | ||||||||
TOTAL ASSETS | $ | 4,140.6 | $ | 4,070.1 | $ | 4,371.8 | |||||
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | 4.0 | $ | 2.5 | $ | — | |||||
Short-term debt | 459.0 | 228.0 | 457.6 | ||||||||
Accounts payable and accrued expenses | 159.7 | 201.0 | 224.8 | ||||||||
Current regulatory liabilities | 34.2 | 2.6 | 6.4 | ||||||||
Current portion of long-term debt and capital lease obligation | 1.3 | 277.0 | 251.3 | ||||||||
Total Current Liabilities | 658.2 | 711.1 | 940.1 | ||||||||
Long-term debt and capital lease obligation, less current portion | 997.9 | 998.6 | 998.2 | ||||||||
Deferred income taxes | 783.7 | 707.3 | 779.5 | ||||||||
Asset retirement obligations | 71.4 | 70.6 | 67.6 | ||||||||
Defined benefit pension plan and other postretirement benefits | 108.7 | 125.1 | 123.0 | ||||||||
Noncurrent regulatory liabilities | 85.1 | 74.9 | 75.6 | ||||||||
Customer contributions in aid of construction | 23.1 | 27.4 | 23.7 | ||||||||
Other noncurrent liabilities | 52.2 | 46.3 | 49.0 | ||||||||
COMMON SHAREHOLDERS' EQUITY | |||||||||||
Common stock | 475.6 | 480.8 | 469.0 | ||||||||
Retained earnings | 1,065.5 | 1,021.8 | 1,031.4 | ||||||||
Accumulated other comprehensive (loss) | (180.8 | ) | (193.8 | ) | (185.3 | ) | |||||
Total Common Shareholders' Equity | 1,360.3 | 1,308.8 | 1,315.1 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | $ | 4,140.6 | $ | 4,070.1 | $ | 4,371.8 |
Questar 2016 Form 10-Q | 5 |
6 Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 111.6 | $ | 125.2 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 118.2 | 111.3 | |||||
Deferred income taxes | 1.1 | (7.2 | ) | ||||
Abandonment and impairment | 0.3 | 0.1 | |||||
Share-based compensation | 5.4 | 6.3 | |||||
Net (gain) from asset sales | (0.4 | ) | (1.4 | ) | |||
(Income) from unconsolidated affiliate | (1.9 | ) | (1.9 | ) | |||
Distributions from unconsolidated affiliate and other | 2.8 | 2.6 | |||||
Changes in operating assets and liabilities | 207.8 | 66.2 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 444.9 | 301.2 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment purchased | (146.2 | ) | (127.3 | ) | |||
Questar Gas acquisition of gas distribution system | — | (11.4 | ) | ||||
Cash used in disposition of assets | (1.5 | ) | (1.8 | ) | |||
Proceeds from disposition of assets | 0.4 | 1.1 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (147.3 | ) | (139.4 | ) | |||
FINANCING ACTIVITIES | |||||||
Common stock issued | 3.9 | 1.5 | |||||
Common stock repurchased | (2.8 | ) | (4.1 | ) | |||
Short-term debt issued | 250.0 | — | |||||
Change in commercial paper, net | (248.6 | ) | (119.0 | ) | |||
Checks outstanding in excess of cash balances | 4.0 | 2.5 | |||||
Long-term debt repaid | (250.0 | ) | — | ||||
Capital lease obligation repaid | (0.6 | ) | (0.6 | ) | |||
Revolver issuance costs paid | (1.2 | ) | — | ||||
Dividends paid | (77.5 | ) | (74.1 | ) | |||
Tax benefits from share-based compensation | 0.2 | — | |||||
NET CASH USED IN FINANCING ACTIVITIES | (322.6 | ) | (193.8 | ) | |||
Change in cash and cash equivalents | (25.0 | ) | (32.0 | ) | |||
Beginning cash and cash equivalents | 25.0 | 32.0 | |||||
Ending cash and cash equivalents | $ | — | $ | — |
Questar 2016 Form 10-Q | 6 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
REVENUES | $ | 128.2 | $ | 141.7 | $ | 536.1 | $ | 516.5 | $ | 937.2 | $ | 936.1 | |||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Cost of natural gas sold (excluding operating expenses shown separately) | 67.8 | 84.0 | 324.7 | 317.6 | 565.2 | 580.6 | |||||||||||||||||
Operating and maintenance | 24.9 | 24.8 | 59.5 | 57.9 | 113.5 | 114.3 | |||||||||||||||||
General and administrative | 11.4 | 12.8 | 24.4 | 26.2 | 48.8 | 52.3 | |||||||||||||||||
Depreciation and amortization | 15.0 | 13.6 | 29.7 | 27.1 | 57.7 | 53.9 | |||||||||||||||||
Other taxes | 5.3 | 5.1 | 10.6 | 9.7 | 20.2 | 17.6 | |||||||||||||||||
Total Operating Expenses | 124.4 | 140.3 | 448.9 | 438.5 | 805.4 | 818.7 | |||||||||||||||||
OPERATING INCOME | 3.8 | 1.4 | 87.2 | 78.0 | 131.8 | 117.4 | |||||||||||||||||
Interest and other income | 0.9 | 1.2 | 1.9 | 2.3 | 4.4 | 5.6 | |||||||||||||||||
Interest expense | (7.5 | ) | (7.1 | ) | (15.2 | ) | (14.2 | ) | (29.3 | ) | (28.3 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (2.8 | ) | (4.5 | ) | 73.9 | 66.1 | 106.9 | 94.7 | |||||||||||||||
Income taxes | 1.2 | 1.7 | (27.9 | ) | (25.1 | ) | (37.6 | ) | (34.8 | ) | |||||||||||||
NET INCOME (LOSS) | $ | (1.6 | ) | $ | (2.8 | ) | $ | 46.0 | $ | 41.0 | $ | 69.3 | $ | 59.9 |
Questar 2016 Form 10-Q | 7 |
June 30, 2016 | June 30, 2015 | Dec. 31, 2015 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 10.5 | |||||
Accounts receivable, net | 36.6 | 29.6 | 112.0 | ||||||||
Unbilled gas accounts receivable | 11.0 | 11.6 | 91.0 | ||||||||
Accounts receivable from affiliates | 72.1 | 68.3 | 69.2 | ||||||||
Gas stored underground | 23.1 | 26.1 | 43.9 | ||||||||
Materials and supplies | 16.7 | 18.7 | 17.1 | ||||||||
Current regulatory assets | 20.6 | 56.3 | 69.8 | ||||||||
Prepaid expenses and other | 4.2 | 3.8 | 3.5 | ||||||||
Total Current Assets | 184.3 | 214.4 | 417.0 | ||||||||
Property, Plant and Equipment | 2,684.8 | 2,455.4 | 2,570.3 | ||||||||
Accumulated depreciation and amortization | (827.6 | ) | (799.9 | ) | (812.2 | ) | |||||
Net Property, Plant and Equipment | 1,857.2 | 1,655.5 | 1,758.1 | ||||||||
Noncurrent regulatory assets | 16.5 | 19.8 | 11.9 | ||||||||
Other noncurrent assets | 5.7 | 5.7 | 5.7 | ||||||||
TOTAL ASSETS | $ | 2,063.7 | $ | 1,895.4 | $ | 2,192.7 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | 5.1 | $ | 4.1 | $ | — | |||||
Notes payable to Questar | 129.0 | 59.7 | 273.3 | ||||||||
Accounts payable and accrued expenses | 81.2 | 106.7 | 122.5 | ||||||||
Accounts payable to affiliates | 69.7 | 77.8 | 74.5 | ||||||||
Customer advances | 13.7 | 18.0 | 34.3 | ||||||||
Current regulatory liabilities | 32.8 | 1.0 | 4.0 | ||||||||
Total Current Liabilities | 331.5 | 267.3 | 508.6 | ||||||||
Long-term debt | 531.4 | 531.0 | 531.2 | ||||||||
Deferred income taxes | 449.2 | 382.0 | 436.7 | ||||||||
Noncurrent regulatory liabilities | 74.7 | 65.5 | 65.6 | ||||||||
Customer contributions in aid of construction | 23.1 | 27.4 | 23.7 | ||||||||
Other noncurrent liabilities | 2.3 | 2.5 | 2.2 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 23.0 | 23.0 | 23.0 | ||||||||
Additional paid-in capital | 267.6 | 266.1 | 266.8 | ||||||||
Retained earnings | 360.9 | 330.6 | 334.9 | ||||||||
Total Common Shareholder's Equity | 651.5 | 619.7 | 624.7 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 2,063.7 | $ | 1,895.4 | $ | 2,192.7 |
Questar 2016 Form 10-Q | 8 |
6 Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 46.0 | $ | 41.0 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 32.6 | 29.9 | |||||
Deferred income taxes | 12.5 | (1.8 | ) | ||||
Share-based compensation | 0.8 | 0.7 | |||||
Changes in operating assets and liabilities | 182.3 | 95.0 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 274.2 | 164.8 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment purchased | (124.3 | ) | (88.3 | ) | |||
Acquisition of gas distribution system | — | (11.4 | ) | ||||
Cash used in disposition of assets | (1.2 | ) | (1.4 | ) | |||
Proceeds from disposition of assets | 0.1 | 0.1 | |||||
Affiliated-company property, plant and equipment transfers | (0.1 | ) | (0.1 | ) | |||
NET CASH USED IN INVESTING ACTIVITIES | (125.5 | ) | (101.1 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes payable to Questar | (144.3 | ) | (59.6 | ) | |||
Checks outstanding in excess of cash balances | 5.1 | 4.1 | |||||
Dividends paid to Questar | (20.0 | ) | (28.0 | ) | |||
NET CASH USED IN FINANCING ACTIVITIES | (159.2 | ) | (83.5 | ) | |||
Change in cash and cash equivalents | (10.5 | ) | (19.8 | ) | |||
Beginning cash and cash equivalents | 10.5 | 19.8 | |||||
Ending cash and cash equivalents | $ | — | $ | — |
Questar 2016 Form 10-Q | 9 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
From unaffiliated customers | $ | 42.9 | $ | 46.5 | $ | 85.9 | $ | 93.3 | $ | 180.5 | $ | 187.4 | |||||||||||
From affiliated companies | 17.5 | 17.8 | 36.8 | 37.2 | 74.7 | 73.9 | |||||||||||||||||
Total Revenues | 60.4 | 64.3 | 122.7 | 130.5 | 255.2 | 261.3 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Operating and maintenance | 9.0 | 8.9 | 17.6 | 19.0 | 36.2 | 39.8 | |||||||||||||||||
General and administrative | 8.9 | 10.5 | 19.2 | 21.0 | 37.1 | 40.1 | |||||||||||||||||
Depreciation and amortization | 13.7 | 13.7 | 27.4 | 27.7 | 54.3 | 55.0 | |||||||||||||||||
Other taxes | 2.2 | 2.1 | 4.5 | 4.4 | 8.9 | 8.8 | |||||||||||||||||
Cost of sales (excluding operating expenses shown separately) | 0.3 | (0.2 | ) | 0.4 | 1.7 | 7.6 | 3.3 | ||||||||||||||||
Total Operating Expenses | 34.1 | 35.0 | 69.1 | 73.8 | 144.1 | 147.0 | |||||||||||||||||
Net gain (loss) from asset sales | 0.1 | — | 0.4 | — | 0.6 | (0.5 | ) | ||||||||||||||||
OPERATING INCOME | 26.4 | 29.3 | 54.0 | 56.7 | 111.7 | 113.8 | |||||||||||||||||
Interest and other income | 0.2 | 0.2 | 0.3 | 0.4 | 0.8 | 1.2 | |||||||||||||||||
Income from unconsolidated affiliate | 0.9 | 1.0 | 1.9 | 1.9 | 3.7 | 3.6 | |||||||||||||||||
Interest expense | (6.2 | ) | (6.5 | ) | (12.4 | ) | (13.1 | ) | (25.3 | ) | (26.1 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 21.3 | 24.0 | 43.8 | 45.9 | 90.9 | 92.5 | |||||||||||||||||
Income taxes | (7.7 | ) | (8.8 | ) | (16.0 | ) | (16.8 | ) | (32.6 | ) | (34.2 | ) | |||||||||||
NET INCOME | $ | 13.6 | $ | 15.2 | $ | 27.8 | $ | 29.1 | $ | 58.3 | $ | 58.3 |
Questar 2016 Form 10-Q | 10 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income | $ | 13.6 | $ | 15.2 | $ | 27.8 | $ | 29.1 | $ | 58.3 | $ | 58.3 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Interest rate cash flow hedge amortization | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | |||||||||||||||||
Commodity cash flow hedge | (0.9 | ) | (0.3 | ) | (1.1 | ) | (0.3 | ) | (1.0 | ) | (0.3 | ) | |||||||||||
Income taxes | 0.4 | — | 0.3 | (0.1 | ) | 0.2 | (0.1 | ) | |||||||||||||||
Net other comprehensive income (loss) | (0.4 | ) | (0.1 | ) | (0.5 | ) | — | (0.3 | ) | 0.2 | |||||||||||||
COMPREHENSIVE INCOME | $ | 13.2 | $ | 15.1 | $ | 27.3 | $ | 29.1 | $ | 58.0 | $ | 58.5 |
Questar 2016 Form 10-Q | 11 |
June 30, 2016 | June 30, 2015 | Dec. 31, 2015 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 1.6 | $ | 1.0 | $ | 10.2 | |||||
Notes receivable from Questar | 34.6 | 34.0 | 6.0 | ||||||||
Accounts receivable, net | 16.6 | 17.0 | 29.6 | ||||||||
Accounts receivable from affiliates | 51.9 | 47.1 | 49.8 | ||||||||
Gas stored underground, at lower of average cost or market | 3.1 | 4.5 | 1.2 | ||||||||
Materials and supplies, at lower of average cost or market | 6.5 | 7.4 | 6.7 | ||||||||
Current regulatory assets | 0.4 | 0.8 | 0.2 | ||||||||
Prepaid expenses and other | 3.0 | 2.8 | 4.4 | ||||||||
Total Current Assets | 117.7 | 114.6 | 108.1 | ||||||||
Property, Plant and Equipment | 1,860.4 | 1,843.6 | 1,851.1 | ||||||||
Accumulated depreciation and amortization | (732.8 | ) | (697.8 | ) | (709.7 | ) | |||||
Net Property, Plant and Equipment | 1,127.6 | 1,145.8 | 1,141.4 | ||||||||
Investment in unconsolidated affiliate | 23.5 | 24.3 | 23.9 | ||||||||
Noncurrent regulatory and other assets | 7.4 | 8.0 | 7.1 | ||||||||
TOTAL ASSETS | $ | 1,276.2 | $ | 1,292.7 | $ | 1,280.5 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and accrued expenses | $ | 16.8 | $ | 21.8 | $ | 16.1 | |||||
Accounts payable to affiliates | 12.3 | 9.1 | 15.8 | ||||||||
Current regulatory liabilities | 1.4 | 1.6 | 2.4 | ||||||||
Current portion of long-term debt | — | 25.1 | — | ||||||||
Total Current Liabilities | 30.5 | 57.6 | 34.3 | ||||||||
Long-term debt, less current portion | 431.2 | 430.9 | 431.0 | ||||||||
Deferred income taxes | 251.6 | 238.6 | 249.9 | ||||||||
Noncurrent regulatory and other liabilities | 17.7 | 16.0 | 16.3 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 6.6 | 6.6 | 6.6 | ||||||||
Additional paid-in capital | 354.3 | 352.7 | 353.4 | ||||||||
Retained earnings | 207.1 | 212.8 | 211.3 | ||||||||
Accumulated other comprehensive (loss) | (22.8 | ) | (22.5 | ) | (22.3 | ) | |||||
Total Common Shareholder's Equity | 545.2 | 549.6 | 549.0 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,276.2 | $ | 1,292.7 | $ | 1,280.5 |
Questar 2016 Form 10-Q | 12 |
6 Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 27.8 | $ | 29.1 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 28.6 | 28.9 | |||||
Deferred income taxes | 1.6 | (1.1 | ) | ||||
Share-based compensation | 0.9 | 1.3 | |||||
Net (gain) from asset sales | (0.4 | ) | — | ||||
(Income) from unconsolidated affiliate | (1.9 | ) | (1.9 | ) | |||
Distributions from unconsolidated affiliate and other | 2.6 | 2.4 | |||||
Changes in operating assets and liabilities | 6.9 | (5.9 | ) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 66.1 | 52.8 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment purchased | (14.2 | ) | (17.1 | ) | |||
Cash used in disposition of assets | (0.3 | ) | (0.4 | ) | |||
Proceeds from disposition of assets | 0.3 | 0.1 | |||||
Affiliated-company property, plant and equipment transfers | 0.1 | 0.1 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (14.1 | ) | (17.3 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes receivable from Questar | (28.6 | ) | 6.1 | ||||
Dividends paid to Questar | (32.0 | ) | (48.0 | ) | |||
NET CASH USED IN FINANCING ACTIVITIES | (60.6 | ) | (41.9 | ) | |||
Change in cash and cash equivalents | (8.6 | ) | (6.4 | ) | |||
Beginning cash and cash equivalents | 10.2 | 7.4 | |||||
Ending cash and cash equivalents | $ | 1.6 | $ | 1.0 |
Questar 2016 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 2016 Form 10-Q | 14 |
Questar 2016 Form 10-Q | 15 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Questar Gas | |||||||||||||||||||||||
Gas purchases | $ | 2.3 | $ | 2.2 | $ | 49.1 | $ | 43.2 | $ | 88.4 | $ | 83.1 | |||||||||||
Operator service fee | 78.9 | 75.5 | 158.7 | 160.3 | 317.4 | 326.5 | |||||||||||||||||
Transportation and storage | 17.4 | 18.1 | 39.7 | 40.3 | 78.6 | 79.2 | |||||||||||||||||
Gathering | 5.6 | 5.6 | 11.4 | 11.0 | 22.5 | 22.3 | |||||||||||||||||
Royalties | 4.6 | 6.9 | 10.3 | 18.8 | 24.8 | 43.3 | |||||||||||||||||
Storage (injection) withdrawal, net | (15.9 | ) | (16.7 | ) | 20.8 | 14.2 | 3.1 | 1.7 | |||||||||||||||
Purchased-gas account adjustment | (26.5 | ) | (8.9 | ) | 32.1 | 27.3 | 25.3 | 19.6 | |||||||||||||||
Other | 1.4 | 1.3 | 2.6 | 2.5 | 5.1 | 4.9 | |||||||||||||||||
Total Questar Gas cost of natural gas sold | 67.8 | 84.0 | 324.7 | 317.6 | 565.2 | 580.6 | |||||||||||||||||
Elimination of Questar Gas cost of natural gas sold - affiliated companies | (96.2 | ) | (93.2 | ) | (195.2 | ) | (197.2 | ) | (391.5 | ) | (399.9 | ) | |||||||||||
Total Questar Gas cost of natural gas sold - unaffiliated parties | (28.4 | ) | (9.2 | ) | 129.5 | 120.4 | 173.7 | 180.7 | |||||||||||||||
Questar Pipeline | |||||||||||||||||||||||
Questar Pipeline cost of sales | 0.3 | (0.2 | ) | 0.4 | 1.7 | 7.6 | 3.3 | ||||||||||||||||
Other cost of sales | 0.4 | 0.4 | 0.9 | 0.7 | 1.9 | 1.2 | |||||||||||||||||
Total cost of sales | $ | (27.7 | ) | $ | (9.0 | ) | $ | 130.8 | $ | 122.8 | $ | 183.2 | $ | 185.2 |
Questar 2016 Form 10-Q | 16 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
(in millions) | |||||||||||||||||
Weighted-average basic common shares outstanding | 176.0 | 176.4 | 175.9 | 176.3 | 175.9 | 176.1 | |||||||||||
Potential number of shares issuable under the Company's LTSIP | 0.2 | 0.2 | 0.3 | 0.2 | 0.2 | 0.3 | |||||||||||
Weighted-average diluted common shares outstanding | 176.2 | 176.6 | 176.2 | 176.5 | 176.1 | 176.4 |
Pension and OPB | Interest rate cash flow hedges | Commodity cash flow hedges | Long-term investment | Total | |||||||||||||||
3 Months Ended June 30, 2016 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
AOCI at beginning of period | $ | (160.6 | ) | $ | (22.1 | ) | $ | (0.3 | ) | $ | 0.1 | $ | (182.9 | ) | |||||
OCI before reclassifications | — | — | (0.9 | ) | — | (0.9 | ) | ||||||||||||
Reclassified from AOCI(1) | 4.0 | 0.1 | — | — | 4.1 | ||||||||||||||
Income taxes | |||||||||||||||||||
OCI before reclassifications | — | — | 0.4 | — | 0.4 | ||||||||||||||
Reclassified from AOCI(2) | (1.5 | ) | — | — | — | (1.5 | ) | ||||||||||||
Total income taxes | (1.5 | ) | — | 0.4 | — | (1.1 | ) | ||||||||||||
Net other comprehensive income (loss) | 2.5 | 0.1 | (0.5 | ) | — | 2.1 | |||||||||||||
AOCI at end of period | $ | (158.1 | ) | $ | (22.0 | ) | $ | (0.8 | ) | $ | 0.1 | $ | (180.8 | ) |
Questar 2016 Form 10-Q | 17 |
Pension and OPB | Interest rate cash flow hedges | Commodity cash flow hedges | Long-term investment | Total | |||||||||||||||
3 Months Ended June 30, 2015 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
AOCI at beginning of period | $ | (175.2 | ) | $ | (22.4 | ) | $ | — | $ | 0.1 | $ | (197.5 | ) | ||||||
OCI before reclassifications | — | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||
Reclassified from AOCI(1) | 6.0 | 0.2 | — | — | 6.2 | ||||||||||||||
Income taxes | |||||||||||||||||||
OCI before reclassifications | — | — | 0.1 | — | 0.1 | ||||||||||||||
Reclassified from AOCI(2) | (2.2 | ) | (0.1 | ) | — | — | (2.3 | ) | |||||||||||
Total income taxes | (2.2 | ) | (0.1 | ) | 0.1 | — | (2.2 | ) | |||||||||||
Net other comprehensive income (loss) | 3.8 | 0.1 | (0.2 | ) | — | 3.7 | |||||||||||||
AOCI at end of period | $ | (171.4 | ) | $ | (22.3 | ) | $ | (0.2 | ) | $ | 0.1 | $ | (193.8 | ) |
Pension and OPB | Interest rate cash flow hedges | Commodity cash flow hedges | Long-term investment | Total | |||||||||||||||
6 Months Ended June 30, 2016 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
AOCI at beginning of period | $ | (163.1 | ) | $ | (22.2 | ) | $ | (0.1 | ) | $ | 0.1 | $ | (185.3 | ) | |||||
OCI before reclassifications | — | — | (1.1 | ) | — | (1.1 | ) | ||||||||||||
Reclassified from AOCI(1) | 8.0 | 0.3 | — | — | 8.3 | ||||||||||||||
Income taxes | |||||||||||||||||||
OCI before reclassifications | — | — | 0.4 | — | 0.4 | ||||||||||||||
Reclassified from AOCI(2) | (3.0 | ) | (0.1 | ) | — | — | (3.1 | ) | |||||||||||
Total income taxes | (3.0 | ) | (0.1 | ) | 0.4 | — | (2.7 | ) | |||||||||||
Net other comprehensive income (loss) | 5.0 | 0.2 | (0.7 | ) | — | 4.5 | |||||||||||||
AOCI at end of period | $ | (158.1 | ) | $ | (22.0 | ) | $ | (0.8 | ) | $ | 0.1 | $ | (180.8 | ) |
Pension and OPB | Interest rate cash flow hedges | Commodity cash flow hedges | Long-term investment | Total | |||||||||||||||
6 Months Ended June 30, 2015 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
AOCI at beginning of period | $ | (178.9 | ) | $ | (22.5 | ) | $ | — | $ | 0.1 | $ | (201.3 | ) | ||||||
OCI before reclassifications | — | — | (0.3 | ) | — | (0.3 | ) | ||||||||||||
Reclassified from AOCI(1) | 12.0 | 0.4 | — | — | 12.4 | ||||||||||||||
Income taxes | |||||||||||||||||||
OCI before reclassifications | — | — | 0.1 | — | 0.1 | ||||||||||||||
Reclassified from AOCI(2) | (4.5 | ) | (0.2 | ) | — | — | (4.7 | ) | |||||||||||
Total income taxes | (4.5 | ) | (0.2 | ) | 0.1 | — | (4.6 | ) | |||||||||||
Net other comprehensive income (loss) | 7.5 | 0.2 | (0.2 | ) | — | 7.5 | |||||||||||||
AOCI at end of period | $ | (171.4 | ) | $ | (22.3 | ) | $ | (0.2 | ) | $ | 0.1 | $ | (193.8 | ) |
Questar 2016 Form 10-Q | 18 |
6 Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
AROs at beginning of year | $ | 67.6 | $ | 69.3 | |||
Accretion | 2.1 | 1.7 | |||||
Liabilities incurred | 0.2 | 0.5 | |||||
Revisions in estimated cash flows | 2.1 | 5.7 | |||||
Liabilities settled | (0.6 | ) | (6.6 | ) | |||
AROs at end of period | $ | 71.4 | $ | 70.6 |
Questar 2016 Form 10-Q | 19 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
June 30, 2016 | June 30, 2015 | Dec. 31, 2015 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | — | $ | — | $ | — | $ | — | $ | 25.0 | $ | 25.0 | |||||||||||
Long-term investment | 1 | 16.6 | 16.6 | 16.7 | 16.7 | 14.1 | 14.1 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | 4.0 | 4.0 | 2.5 | 2.5 | — | — | |||||||||||||||||
Short-term debt | 1 | 459.0 | 459.0 | 228.0 | 228.0 | 457.6 | 457.6 | |||||||||||||||||
Long-term debt, including current portion | 2 | 962.6 | 1,086.5 | 1,237.8 | 1,320.5 | 1,212.3 | 1,263.7 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
June 30, 2016 | June 30, 2015 | Dec. 31, 2015 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | — | $ | — | $ | — | $ | — | $ | 10.5 | $ | 10.5 | |||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | 5.1 | 5.1 | 4.1 | 4.1 | — | — | |||||||||||||||||
Notes payable to Questar | 1 | 129.0 | 129.0 | 59.7 | 59.7 | 273.3 | 273.3 | |||||||||||||||||
Long-term debt | 2 | 531.4 | 618.5 | 531.0 | 581.5 | 531.2 | 568.4 |
Questar 2016 Form 10-Q | 20 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
June 30, 2016 | June 30, 2015 | Dec. 31, 2015 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 1.6 | $ | 1.6 | $ | 1.0 | $ | 1.0 | $ | 10.2 | $ | 10.2 | |||||||||||
Notes receivable from Questar | 1 | 34.6 | 34.6 | 34.0 | 34.0 | 6.0 | 6.0 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Long-term debt, including current portion | 2 | 431.2 | 468.0 | 456.0 | 487.6 | 431.0 | 445.2 |
Questar 2016 Form 10-Q | 21 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues from Unaffiliated Customers | |||||||||||||||||||||||
Questar Gas | $ | 128.2 | $ | 141.7 | $ | 536.1 | $ | 516.5 | $ | 937.2 | $ | 936.1 | |||||||||||
Wexpro | 1.9 | 10.1 | 5.4 | 16.4 | 11.9 | 31.9 | |||||||||||||||||
Questar Pipeline | 42.9 | 46.5 | 85.9 | 93.3 | 180.5 | 187.4 | |||||||||||||||||
Other | 1.1 | 1.0 | 3.0 | 1.7 | 7.8 | 3.6 | |||||||||||||||||
Total | $ | 174.1 | $ | 199.3 | $ | 630.4 | $ | 627.9 | $ | 1,137.4 | $ | 1,159.0 | |||||||||||
Revenues from Affiliated Companies | |||||||||||||||||||||||
Wexpro | $ | 78.9 | $ | 75.6 | $ | 158.7 | $ | 160.4 | $ | 317.4 | $ | 326.7 | |||||||||||
Questar Pipeline | 17.5 | 17.8 | 36.8 | 37.2 | 74.7 | 73.9 | |||||||||||||||||
Total | $ | 96.4 | $ | 93.4 | $ | 195.5 | $ | 197.6 | $ | 392.1 | $ | 400.6 | |||||||||||
Operating Income (Loss) | |||||||||||||||||||||||
Questar Gas | $ | 3.8 | $ | 1.4 | $ | 87.2 | $ | 78.0 | $ | 131.8 | $ | 117.4 | |||||||||||
Wexpro | 39.1 | 41.8 | 78.8 | 83.5 | 142.7 | 172.5 | |||||||||||||||||
Questar Pipeline | 26.4 | 29.3 | 54.0 | 56.7 | 111.7 | 113.8 | |||||||||||||||||
Corporate and other | (4.9 | ) | 2.8 | (19.9 | ) | 4.1 | (34.0 | ) | (0.8 | ) | |||||||||||||
Total | $ | 64.4 | $ | 75.3 | $ | 200.1 | $ | 222.3 | $ | 352.2 | $ | 402.9 | |||||||||||
Net Income (Loss) | |||||||||||||||||||||||
Questar Gas | $ | (1.6 | ) | $ | (2.8 | ) | $ | 46.0 | $ | 41.0 | $ | 69.3 | $ | 59.9 | |||||||||
Wexpro | 26.1 | 27.9 | 52.3 | 55.6 | 95.6 | 116.5 | |||||||||||||||||
Questar Pipeline | 13.6 | 15.2 | 27.8 | 29.1 | 58.3 | 58.3 | |||||||||||||||||
Corporate and other | (5.0 | ) | 0.3 | (14.5 | ) | (0.5 | ) | (28.1 | ) | (8.4 | ) | ||||||||||||
Total | $ | 33.1 | $ | 40.6 | $ | 111.6 | $ | 125.2 | $ | 195.1 | $ | 226.3 |
Questar 2016 Form 10-Q | 22 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 3.1 | $ | 3.4 | $ | 6.1 | $ | 6.8 | $ | 13.1 | $ | 12.6 | |||||||||||
Interest cost | 8.1 | 8.1 | 16.3 | 16.2 | 32.8 | 32.9 | |||||||||||||||||
Expected return on plan assets | (12.1 | ) | (11.7 | ) | (24.3 | ) | (23.3 | ) | (48.7 | ) | (45.6 | ) | |||||||||||
Prior service cost | — | — | — | — | 0.1 | 0.3 | |||||||||||||||||
Recognized net actuarial loss | 3.7 | 5.7 | 7.5 | 11.4 | 18.0 | 18.9 | |||||||||||||||||
Settlement costs | 1.1 | — | 1.1 | — | 17.8 | — | |||||||||||||||||
Net pension cost | $ | 3.9 | $ | 5.5 | $ | 6.7 | $ | 11.1 | $ | 33.1 | $ | 19.1 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 0.3 | $ | 0.5 | $ | 0.6 | |||||||||||
Interest cost | 0.9 | 0.9 | 1.8 | 1.8 | 3.5 | 3.6 | |||||||||||||||||
Expected return on plan assets | (0.7 | ) | (0.8 | ) | (1.4 | ) | (1.6 | ) | (3.0 | ) | (3.1 | ) | |||||||||||
Recognized net actuarial loss | 0.3 | 0.3 | 0.5 | 0.6 | 1.1 | 0.7 | |||||||||||||||||
Accretion of regulatory liability | 0.2 | 0.2 | 0.4 | 0.4 | 1.0 | 0.8 | |||||||||||||||||
Net postretirement benefit cost | $ | 0.8 | $ | 0.7 | $ | 1.5 | $ | 1.5 | $ | 3.1 | $ | 2.6 |
Questar 2016 Form 10-Q | 23 |
Questar 2016 Form 10-Q | 24 |
Questar 2016 Form 10-Q | 25 |
Questar 2016 Form 10-Q | 26 |
3 Months Ended June 30, | 6 Months Ended June 30, | 12 Months Ended June 30, | |||||||||||||||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||||||||||||||
Questar Gas | $ | (1.6 | ) | $ | (2.8 | ) | $ | 1.2 | $ | 46.0 | $ | 41.0 | $ | 5.0 | $ | 69.3 | $ | 59.9 | $ | 9.4 | |||||||||||||||
Wexpro(3) | 26.1 | 27.9 | (1.8 | ) | 52.3 | 55.6 | (3.3 | ) | 95.6 | 116.5 | (20.9 | ) | |||||||||||||||||||||||
Questar Pipeline | 13.6 | 15.2 | (1.6 | ) | 27.8 | 29.1 | (1.3 | ) | 58.3 | 58.3 | — | ||||||||||||||||||||||||
Corporate and other(1),(2) | (5.0 | ) | 0.3 | (5.3 | ) | (14.5 | ) | (0.5 | ) | (14.0 | ) | (28.1 | ) | (8.4 | ) | (19.7 | ) | ||||||||||||||||||
Net income | $ | 33.1 | $ | 40.6 | $ | (7.5 | ) | $ | 111.6 | $ | 125.2 | $ | (13.6 | ) | $ | 195.1 | $ | 226.3 | $ | (31.2 | ) | ||||||||||||||
Add: after-tax merger and restructuring costs(1) | 2.3 | — | 2.3 | 11.3 | — | $ | 11.3 | 11.3 | — | 11.3 | |||||||||||||||||||||||||
Add: after-tax pension settlement charge(2) | — | — | — | — | — | $ | — | 10.3 | — | 10.3 | |||||||||||||||||||||||||
Add: after-tax Wexpro's leasehold impairment charge(3) | — | — | — | — | — | $ | — | 7.9 | — | 7.9 | |||||||||||||||||||||||||
Adjusted earnings | $ | 35.4 | $ | 40.6 | $ | (5.2 | ) | $ | 122.9 | $ | 125.2 | $ | (2.3 | ) | $ | 224.6 | $ | 226.3 | $ | (1.7 | ) | ||||||||||||||
Earnings per share - diluted | $ | 0.19 | $ | 0.23 | $ | (0.04 | ) | $ | 0.64 | $ | 0.71 | $ | (0.07 | ) | $ | 1.11 | $ | 1.28 | $ | (0.17 | ) | ||||||||||||||
Add: diluted loss per share attributable to merger and restructuring costs(1) | 0.01 | — | 0.01 | 0.06 | — | 0.06 | 0.06 | — | 0.06 | ||||||||||||||||||||||||||
Add: diluted loss per share attributable to pension settlement charge(2) | — | — | — | — | — | — | 0.06 | — | 0.06 | ||||||||||||||||||||||||||
Add: diluted loss per share attributable to Wexpro's leasehold impairment charge(3) | — | — | — | — | — | — | 0.05 | — | 0.05 | ||||||||||||||||||||||||||
Adjusted earnings per share - diluted | $ | 0.20 | $ | 0.23 | $ | (0.03 | ) | $ | 0.70 | 0.71 | $ | (0.01 | ) | $ | 1.28 | $ | 1.28 | $ | — | ||||||||||||||||
Weighted-average diluted shares | 176.2 | 176.6 | (0.4 | ) | 176.2 | 176.5 | (0.3 | ) | 176.1 | 176.4 | (0.3 | ) |
Questar 2016 Form 10-Q | 27 |
Questar 2016 Form 10-Q | 28 |
3 Months Ended June 30, | 6 Months Ended June 30, | 12 Months Ended June 30, | |||||||||||||||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income (Loss) | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 112.9 | $ | 124.9 | $ | (12.0 | ) | $ | 504.6 | $ | 481.1 | $ | 23.5 | $ | 870.8 | $ | 856.0 | $ | 14.8 | ||||||||||||||||
Industrial sales | 4.5 | 6.3 | (1.8 | ) | 9.5 | 12.4 | (2.9 | ) | 20.7 | 28.6 | (7.9 | ) | |||||||||||||||||||||||
Transportation for industrial customers | 5.7 | 4.7 | 1.0 | 11.7 | 10.0 | 1.7 | 22.9 | 19.3 | 3.6 | ||||||||||||||||||||||||||
Service | 1.3 | 1.3 | — | 2.8 | 2.7 | 0.1 | 4.8 | 4.7 | 0.1 | ||||||||||||||||||||||||||
Other | 3.8 | 4.5 | (0.7 | ) | 7.5 | 10.3 | (2.8 | ) | 18.0 | 27.5 | (9.5 | ) | |||||||||||||||||||||||
Total Revenues | 128.2 | 141.7 | (13.5 | ) | 536.1 | 516.5 | 19.6 | 937.2 | 936.1 | 1.1 | |||||||||||||||||||||||||
Cost of natural gas sold | 67.8 | 84.0 | (16.2 | ) | 324.7 | 317.6 | 7.1 | 565.2 | 580.6 | (15.4 | ) | ||||||||||||||||||||||||
Margin | 60.4 | 57.7 | 2.7 | 211.4 | 198.9 | 12.5 | 372.0 | 355.5 | 16.5 | ||||||||||||||||||||||||||
Other Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 24.9 | 24.8 | 0.1 | 59.5 | 57.9 | 1.6 | 113.5 | 114.3 | (0.8 | ) | |||||||||||||||||||||||||
General and administrative | 11.4 | 12.8 | (1.4 | ) | 24.4 | 26.2 | (1.8 | ) | 48.8 | 52.3 | (3.5 | ) | |||||||||||||||||||||||
Depreciation and amortization | 15.0 | 13.6 | 1.4 | 29.7 | 27.1 | 2.6 | 57.7 | 53.9 | 3.8 | ||||||||||||||||||||||||||
Other taxes | 5.3 | 5.1 | 0.2 | 10.6 | 9.7 | 0.9 | 20.2 | 17.6 | 2.6 | ||||||||||||||||||||||||||
Total Other Operating Expenses | 56.6 | 56.3 | 0.3 | 124.2 | 120.9 | 3.3 | 240.2 | 238.1 | 2.1 | ||||||||||||||||||||||||||
Net gain (loss) from asset sales | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OPERATING INCOME | 3.8 | 1.4 | 2.4 | 87.2 | 78.0 | 9.2 | 131.8 | 117.4 | 14.4 | ||||||||||||||||||||||||||
Interest and other income | 0.9 | 1.2 | (0.3 | ) | 1.9 | 2.3 | (0.4 | ) | 4.4 | 5.6 | (1.2 | ) | |||||||||||||||||||||||
Interest expense | (7.5 | ) | (7.1 | ) | (0.4 | ) | (15.2 | ) | (14.2 | ) | (1.0 | ) | (29.3 | ) | (28.3 | ) | (1.0 | ) | |||||||||||||||||
Income taxes | 1.2 | 1.7 | (0.5 | ) | (27.9 | ) | (25.1 | ) | (2.8 | ) | (37.6 | ) | (34.8 | ) | (2.8 | ) | |||||||||||||||||||
NET INCOME (LOSS) | $ | (1.6 | ) | $ | (2.8 | ) | $ | 1.2 | $ | 46.0 | $ | 41.0 | $ | 5.0 | $ | 69.3 | $ | 59.9 | $ | 9.4 | |||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Natural gas volumes (MMdth) | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | 13.2 | 13.9 | (0.7 | ) | 60.0 | 51.0 | 9.0 | 103.0 | 90.6 | 12.4 | |||||||||||||||||||||||||
Industrial sales | 0.7 | 0.9 | (0.2 | ) | 1.4 | 1.8 | (0.4 | ) | 2.9 | 4.0 | (1.1 | ) | |||||||||||||||||||||||
Transportation for industrial customers | 22.9 | 18.8 | 4.1 | 45.5 | 36.4 | 9.1 | 86.3 | 79.1 | 7.2 | ||||||||||||||||||||||||||
Total industrial | 23.6 | 19.7 | 3.9 | 46.9 | 38.2 | 8.7 | 89.2 | 83.1 | 6.1 | ||||||||||||||||||||||||||
Total deliveries | 36.8 | 33.6 | 3.2 | 106.9 | 89.2 | 17.7 | 192.2 | 173.7 | 18.5 | ||||||||||||||||||||||||||
Natural gas revenue (per dth) | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 8.54 | $ | 9.03 | $ | (0.49 | ) | $ | 8.41 | $ | 9.44 | $ | (1.03 | ) | $ | 8.45 | $ | 9.45 | $ | (1.00 | ) | ||||||||||||||
Industrial sales | 6.44 | 6.55 | (0.11 | ) | 6.74 | 6.87 | (0.13 | ) | 7.21 | 7.38 | (0.17 | ) | |||||||||||||||||||||||
Transportation for industrial customers | 0.25 | 0.25 | — | 0.26 | 0.27 | (0.01 | ) | 0.27 | 0.24 | 0.03 | |||||||||||||||||||||||||
(Warmer) than normal temperatures | (36%) | (19%) | (17%) | (14%) | (23%) | 9% | (14%) | (21%) | 7% | ||||||||||||||||||||||||||
Temperature-adjusted usage per customer (dth) | 16.3 | 14.8 | 1.5 | 64.6 | 60.0 | 4.6 | 107.9 | 101.7 | 6.2 | ||||||||||||||||||||||||||
Customers at June 30, (in thousands) | 999 | 979 | 20 |
Questar 2016 Form 10-Q | 29 |
3 Months 2016 vs. 2015 | 6 Months 2016 vs. 2015 | 12 Months 2016 vs. 2015 | |||||||||
(in millions) | |||||||||||
Customer growth | $ | 0.9 | $ | 4.0 | $ | 6.9 | |||||
Transportation | 0.8 | 1.3 | 2.9 | ||||||||
Infrastructure-replacement cost recovery | 0.9 | 4.9 | 7.7 | ||||||||
Energy-efficiency program cost recovery | 0.3 | 1.9 | (1.5 | ) | |||||||
Other | (0.2 | ) | 0.4 | 0.5 | |||||||
Increase | $ | 2.7 | $ | 12.5 | $ | 16.5 |
Questar 2016 Form 10-Q | 30 |
Questar 2016 Form 10-Q | 31 |
3 Months Ended June 30, | 6 Months Ended June 30, | 12 Months Ended June 30, | |||||||||||||||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Operator service fee | $ | 78.0 | $ | 74.6 | $ | 3.4 | $ | 159.2 | $ | 159.1 | $ | 0.1 | $ | 313.4 | $ | 326.2 | $ | (12.8 | ) | ||||||||||||||||
Oil and NGL sales | 2.4 | 3.7 | (1.3 | ) | 3.8 | 6.4 | (2.6 | ) | 8.8 | 18.2 | (9.4 | ) | |||||||||||||||||||||||
Natural gas sales | 0.4 | 3.1 | (2.7 | ) | 1.0 | 7.0 | (6.0 | ) | 6.3 | 8.3 | (2.0 | ) | |||||||||||||||||||||||
Other | — | 4.3 | (4.3 | ) | 0.1 | 4.3 | (4.2 | ) | 0.8 | 5.9 | (5.1 | ) | |||||||||||||||||||||||
Total Revenues | 80.8 | 85.7 | (4.9 | ) | 164.1 | 176.8 | (12.7 | ) | 329.3 | 358.6 | (29.3 | ) | |||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 5.8 | 5.8 | — | 11.8 | 14.1 | (2.3 | ) | 25.1 | 29.4 | (4.3 | ) | ||||||||||||||||||||||||
Gathering and other handling | 0.1 | 0.4 | (0.3 | ) | 0.4 | 0.8 | (0.4 | ) | 1.1 | 0.8 | 0.3 | ||||||||||||||||||||||||
General and administrative | 6.4 | 8.9 | (2.5 | ) | 14.3 | 18.0 | (3.7 | ) | 29.8 | 34.5 | (4.7 | ) | |||||||||||||||||||||||
Production and other taxes | 3.4 | 5.3 | (1.9 | ) | 6.9 | 11.5 | (4.6 | ) | 16.6 | 27.8 | (11.2 | ) | |||||||||||||||||||||||
Depreciation, depletion and amortization | 25.8 | 24.5 | 1.3 | 51.5 | 49.7 | 1.8 | 101.2 | 94.4 | 6.8 | ||||||||||||||||||||||||||
Exploration | 0.1 | 0.3 | (0.2 | ) | 0.1 | 0.5 | (0.4 | ) | 0.3 | 2.1 | (1.8 | ) | |||||||||||||||||||||||
Abandonment and impairment | 0.1 | 0.1 | — | 0.3 | 0.1 | 0.2 | 12.7 | 0.1 | 12.6 | ||||||||||||||||||||||||||
Total Operating Expenses | 41.7 | 45.3 | (3.6 | ) | 85.3 | 94.7 | (9.4 | ) | 186.8 | 189.1 | (2.3 | ) | |||||||||||||||||||||||
Net gain from asset sales | — | 1.4 | (1.4 | ) | — | 1.4 | (1.4 | ) | 0.2 | 3.0 | (2.8 | ) | |||||||||||||||||||||||
OPERATING INCOME | 39.1 | 41.8 | (2.7 | ) | 78.8 | 83.5 | (4.7 | ) | 142.7 | 172.5 | (29.8 | ) | |||||||||||||||||||||||
Interest and other income | 0.2 | 0.4 | (0.2 | ) | 0.1 | 0.8 | (0.7 | ) | 0.2 | 1.5 | (1.3 | ) | |||||||||||||||||||||||
Interest expense | — | (0.1 | ) | 0.1 | (0.1 | ) | (0.1 | ) | — | (0.2 | ) | (0.2 | ) | — | |||||||||||||||||||||
Income taxes | (13.2 | ) | (14.2 | ) | 1.0 | (26.5 | ) | (28.6 | ) | 2.1 | (47.1 | ) | (57.3 | ) | 10.2 | ||||||||||||||||||||
NET INCOME | $ | 26.1 | $ | 27.9 | $ | (1.8 | ) | $ | 52.3 | $ | 55.6 | $ | (3.3 | ) | $ | 95.6 | $ | 116.5 | $ | (20.9 | ) | ||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Production volumes | |||||||||||||||||||||||||||||||||||
Natural gas - cost-of-service deliveries (Bcf) | 14.6 | 14.3 | 0.3 | 29.0 | 29.3 | (0.3 | ) | 57.4 | 56.6 | 0.8 | |||||||||||||||||||||||||
Natural gas - sales (Bcf) | 0.2 | 1.2 | (1.0 | ) | 0.5 | 2.4 | (1.9 | ) | 2.5 | 2.7 | (0.2 | ) | |||||||||||||||||||||||
Oil and NGL (Mbbl) | 101 | 106 | (5 | ) | 211 | 233 | (22 | ) | 442 | 511 | (69 | ) | |||||||||||||||||||||||
Natural gas average sales price (per Mcf) | $ | 1.79 | $ | 2.62 | $ | (0.83 | ) | $ | 1.91 | $ | 2.86 | $ | (0.95 | ) | $ | 2.54 | $ | 3.05 | $ | (0.51 | ) | ||||||||||||||
Oil and NGL average sales price (per bbl) | $ | 38.31 | $ | 46.52 | $ | (8.21 | ) | $ | 31.02 | $ | 41.03 | $ | (10.01 | ) | $ | 32.30 | $ | 57.15 | $ | (24.85 | ) | ||||||||||||||
Investment base at June 30, (in millions) | $ | 607.2 | $ | 629.5 | $ | (22.3 | ) |
Questar 2016 Form 10-Q | 32 |
12 Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in millions) | |||||||
Beginning investment base | $ | 629.5 | $ | 674.5 | |||
Property acquisitions | 46.4 | — | |||||
Successful development wells and related equipment | 15.9 | 36.1 | |||||
Depreciation, depletion and amortization | (92.8 | ) | (88.2 | ) | |||
Change in deferred income taxes | 8.2 | 7.1 | |||||
Ending investment base | $ | 607.2 | $ | 629.5 |
Questar 2016 Form 10-Q | 33 |
• | the return on post-2015 development drilling will be lowered to the Commission allowed rate of return on investment as defined in the Wexpro II Agreement (currently 7.64%), and the pre-2016 investment base and associated returns will not be affected; |
• | Wexpro and Questar Gas will reduce the threshold of maximum combined production from Wexpro properties from 65% of Questar Gas's annual forecasted demand to 55% in 2020; |
• | Dry-hole and non-commercial well costs will be shared on a 50%/50% basis between utility customers and Wexpro so long as the costs allocated to utility customers do not exceed 4.5% of Wexpro's annual development drilling program costs; |
• | Wexpro will share in 50% of the savings when the annual price of cost-of-service production is lower than the annual average market price. However, Wexpro's 50% share of any annual savings will be limited so that Wexpro will not earn a return exceeding the return earned on gas development investment under the 1981 Wexpro Agreement. |
Questar 2016 Form 10-Q | 34 |
3 Months Ended June 30, | 6 Months Ended June 30, | 12 Months Ended June 30, | |||||||||||||||||||||||||||||||||
2016 | 2015 | Change | 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Transportation | $ | 46.1 | $ | 48.7 | $ | (2.6 | ) | $ | 94.4 | $ | 99.1 | $ | (4.7 | ) | $ | 189.9 | $ | 197.0 | $ | (7.1 | ) | ||||||||||||||
Storage | 9.4 | 9.2 | 0.2 | 19.0 | 18.7 | 0.3 | 37.7 | 37.4 | 0.3 | ||||||||||||||||||||||||||
NGL sales | 0.6 | 0.7 | (0.1 | ) | 0.8 | 1.3 | (0.5 | ) | 2.0 | 4.1 | (2.1 | ) | |||||||||||||||||||||||
Energy services | 1.8 | 3.0 | (1.2 | ) | 4.0 | 6.3 | (2.3 | ) | 10.4 | 12.8 | (2.4 | ) | |||||||||||||||||||||||
Natural gas sales | 0.2 | 0.2 | — | 0.2 | 0.2 | — | 6.4 | 0.2 | 6.2 | ||||||||||||||||||||||||||
Other | 2.3 | 2.5 | (0.2 | ) | 4.3 | 4.9 | (0.6 | ) | 8.8 | 9.8 | (1.0 | ) | |||||||||||||||||||||||
Total Revenues | 60.4 | 64.3 | (3.9 | ) | 122.7 | 130.5 | (7.8 | ) | 255.2 | 261.3 | (6.1 | ) | |||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 9.0 | 8.9 | 0.1 | 17.6 | 19.0 | (1.4 | ) | 36.2 | 39.8 | (3.6 | ) | ||||||||||||||||||||||||
General and administrative | 8.9 | 10.5 | (1.6 | ) | 19.2 | 21.0 | (1.8 | ) | 37.1 | 40.1 | (3.0 | ) | |||||||||||||||||||||||
Depreciation and amortization | 13.7 | 13.7 | — | 27.4 | 27.7 | (0.3 | ) | 54.3 | 55.0 | (0.7 | ) | ||||||||||||||||||||||||
Other taxes | 2.2 | 2.1 | 0.1 | 4.5 | 4.4 | 0.1 | 8.9 | 8.8 | 0.1 | ||||||||||||||||||||||||||
Cost of sales | 0.3 | (0.2 | ) | 0.5 | 0.4 | 1.7 | (1.3 | ) | 7.6 | 3.3 | 4.3 | ||||||||||||||||||||||||
Total Operating Expenses | 34.1 | 35.0 | (0.9 | ) | 69.1 | 73.8 | (4.7 | ) | 144.1 | 147.0 | (2.9 | ) | |||||||||||||||||||||||
Net gain (loss) from asset sales | 0.1 | — | 0.1 | 0.4 | — | 0.4 | 0.6 | (0.5 | ) | 1.1 | |||||||||||||||||||||||||
OPERATING INCOME | 26.4 | 29.3 | (2.9 | ) | 54.0 | 56.7 | (2.7 | ) | 111.7 | 113.8 | (2.1 | ) | |||||||||||||||||||||||
Interest and other income | 0.2 | 0.2 | — | 0.3 | 0.4 | (0.1 | ) | 0.8 | 1.2 | (0.4 | ) | ||||||||||||||||||||||||
Income from unconsolidated affiliate | 0.9 | 1.0 | (0.1 | ) | 1.9 | 1.9 | — | 3.7 | 3.6 | 0.1 | |||||||||||||||||||||||||
Interest expense | (6.2 | ) | (6.5 | ) | 0.3 | (12.4 | ) | (13.1 | ) | 0.7 | (25.3 | ) | (26.1 | ) | 0.8 | ||||||||||||||||||||
Income taxes | (7.7 | ) | (8.8 | ) | 1.1 | (16.0 | ) | (16.8 | ) | 0.8 | (32.6 | ) | (34.2 | ) | 1.6 | ||||||||||||||||||||
NET INCOME | $ | 13.6 | $ | 15.2 | $ | (1.6 | ) | $ | 27.8 | $ | 29.1 | $ | (1.3 | ) | $ | 58.3 | $ | 58.3 | $ | — | |||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Natural gas transportation volumes (MMdth) | |||||||||||||||||||||||||||||||||||
For unaffiliated customers | 158.3 | 183.5 | (25.2 | ) | 319.1 | 355.8 | (36.7 | ) | 704.1 | 719.4 | (15.3 | ) | |||||||||||||||||||||||
For Questar Gas | 16.7 | 13.8 | 2.9 | 61.8 | 55.1 | 6.7 | 114.3 | 107.3 | 7.0 | ||||||||||||||||||||||||||
Total transportation | 175.0 | 197.3 | (22.3 | ) | 380.9 | 410.9 | (30.0 | ) | 818.4 | 826.7 | (8.3 | ) | |||||||||||||||||||||||
Transportation revenue (per dth) | $ | 0.26 | $ | 0.25 | $ | 0.01 | $ | 0.25 | $ | 0.24 | $ | 0.01 | $ | 0.23 | $ | 0.24 | $ | (0.01 | ) | ||||||||||||||||
Net firm-daily transportation demand at June 30, (in Mdth) | 5,059 | 5,143 | (84 | ) | |||||||||||||||||||||||||||||||
Natural gas processing | |||||||||||||||||||||||||||||||||||
NGL sales (Mbbl) | 31 | 32 | (1 | ) | 44 | 61 | (17 | ) | 104 | 120 | (16 | ) | |||||||||||||||||||||||
NGL average sales price (per bbl) | $ | 18.73 | $ | 23.45 | $ | (4.72 | ) | $ | 17.09 | $ | 22.36 | $ | (5.27 | ) | $ | 18.59 | $ | 34.72 | $ | (16.13 | ) |
Questar 2016 Form 10-Q | 35 |
Questar 2016 Form 10-Q | 36 |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||
June 30, | June 30, | June 30, | |||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Questar Fueling net loss | $ | (0.3 | ) | $ | (0.4 | ) | $ | (0.7 | ) | $ | (1.0 | ) | $ | (0.9 | ) | $ | (1.6 | ) |
6 Months Ended June 30, | |||||||||||
2016 | 2015 | Change | |||||||||
(in millions) | |||||||||||
Net income | $ | 111.6 | $ | 125.2 | $ | (13.6 | ) | ||||
Noncash adjustments to net income | 125.5 | 109.8 | 15.7 | ||||||||
Changes in operating assets and liabilities | 207.8 | 66.2 | 141.6 | ||||||||
Net cash provided by operating activities | $ | 444.9 | $ | 301.2 | $ | 143.7 |
Questar 2016 Form 10-Q | 37 |
6 Months Ended June 30, | Forecast 12 Months Ending December 31, | ||||||||||
2016 | 2015 | 2016 | |||||||||
(in millions) | |||||||||||
Questar Gas | $ | 124.3 | $ | 99.7 | $ | 240 | |||||
Wexpro | 7.3 | 15.2 | 85 | ||||||||
Questar Pipeline | 14.2 | 17.1 | 40 | ||||||||
Corporate and other | 0.4 | 6.5 | 10 | ||||||||
Total capital expenditures, including acquisitions | $ | 146.2 | $ | 138.5 | $ | 375 |
Questar 2016 Form 10-Q | 38 |
• | the risk factors discussed in Part II, Item 1A of this quarterly report; |
• | 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 2016 Form 10-Q | 39 |
• | the Company would have paid significant transaction costs, and in certain circumstances, a termination fee to Dominion Resources of $99 million, |
• | the attention of management may have been diverted to the Merger rather than to operations and the pursuit of other opportunities, |
• | the potential loss of key personnel as personnel may experience uncertainty about their future with the combined company, |
• | the Company will have been subject to certain restrictions on the conduct of business, which may prevent the Company from making certain acquisitions or dispositions or pursuing other business opportunities, and |
• | the trading price of the Company's stock may decline if the market believes the Merger may not be completed. |
Questar 2016 Form 10-Q | 40 |
Questar 2016 Form 10-Q | 41 |
• | the return on post-2015 development drilling will be lowered to the Commission allowed rate of return on investment as defined in the Wexpro II Agreement (currently 7.64%), and the pre-2016 investment base and associated returns will not be affected; |
• | Wexpro and Questar Gas will reduce the threshold of maximum combined production from Wexpro properties from 65% of Questar Gas's annual forecasted demand to 55% in 2020; |
• | Dry-hole and non-commercial well costs will be shared on a 50%/50% basis between utility customers and Wexpro so long as the costs allocated to utility customers do not exceed 4.5% of Wexpro's annual development drilling program costs; |
• | Wexpro will share in 50% of the savings when the annual price of cost-of-service production is lower than the annual average market price. However Wexpro's 50% share of any annual savings will be limited so that Wexpro will not earn a return exceeding the return earned on gas development investment under the 1981 Wexpro Agreement. |
Questar 2016 Form 10-Q | 42 |
Questar 2016 Form 10-Q | 43 |
Questar 2016 Form 10-Q | 44 |
Questar 2016 Form 10-Q | 45 |
Questar 2016 Form 10-Q | 46 |
Questar 2016 Form 10-Q | 47 |
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 April 1, 2016 through April 30, 2016 | — | $ | — | — | 1,000,000 | |||||||
Month #2 May 1, 2016 through May 31, 2016 | 302 | $ | 25.18 | — | 1,000,000 | |||||||
Month #3 June 1, 2016 through June 30, 2016 | 2,166 | $ | 25.03 | — | 1,000,000 | |||||||
Total | 2,468 | $ | 25.05 | — |
Questar 2016 Form 10-Q | 48 |
QUESTAR CORPORATION QUESTAR GAS COMPANY QUESTAR PIPELINE COMPANY (Registrants) | |
August 3, 2016 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer, Questar |
August 3, 2016 | /s/ Craig C. Wagstaff Craig C. Wagstaff President, Questar Gas |
August 3, 2016 | /s/ Micheal G. Dunn Micheal G. Dunn President, Questar Pipeline |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
Questar 2016 Form 10-Q | 49 |
Exhibit No. | Description |
EXHIBIT 10 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT | |
Questar Corporation | |
10.1 | Questar Gas Company, a wholly owned subsidiary of Questar Corporation, entered into a Second Amendment to Gas Gathering Agreement with QEPM Gathering I, LLC (Exhibit 10.1 of Questar Corporation's Current Report on Form 8-K filed March 24, 2016). |
10.2 | Questar Corporation entered into a floating-rate one-year $250 million Term Loan Agreement (Exhibit 10.1 of Questar Corporation's Current Report on Form 8-K filed February 26, 2016). |
Questar Gas Company | |
10.3 | Questar Gas Company, a wholly owned subsidiary of Questar Corporation, entered into a Second Amendment to Gas Gathering Agreement with QEPM Gathering I, LLC (Exhibit 10.1 of Questar Gas Company's Current Report on Form 8-K filed March 24, 2016). |
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 2016 Form 10-Q | 50 |
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. |
August 3, 2016 | /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. |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
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. |
August 3, 2016 | /s/ Craig C. Wagstaff Craig C. Wagstaff President |
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. |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
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. |
August 3, 2016 | /s/ Micheal G. Dunn Micheal G. Dunn President |
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. |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
(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 | |
August 3, 2016 | /s/ Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
(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 | |
August 3, 2016 | /s/ Craig C. Wagstaff Craig C. Wagstaff President |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
(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 | |
August 3, 2016 | /s/ Micheal G. Dunn Micheal G. Dunn President |
August 3, 2016 | /s/ David M. Curtis David M. Curtis Vice President Controller and Acting Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
REVENUES | ||||||
Questar Gas / Revenues | $ 128.2 | $ 141.7 | $ 536.1 | $ 516.5 | $ 937.2 | $ 936.1 |
Wexpro | 1.9 | 10.1 | 5.4 | 16.4 | 11.9 | 31.9 |
Questar Pipeline / Revenues from unaffiliated customers | 42.9 | 46.5 | 85.9 | 93.3 | 180.5 | 187.4 |
Other | 1.1 | 1.0 | 3.0 | 1.7 | 7.8 | 3.6 |
Total Revenues | 174.1 | 199.3 | 630.4 | 627.9 | 1,137.4 | 1,159.0 |
OPERATING EXPENSES | ||||||
Cost of sales (excluding operating expenses shown separately) | (27.7) | (9.0) | 130.8 | 122.8 | 183.2 | 185.2 |
Operating and maintenance | 39.9 | 40.5 | 90.3 | 92.8 | 179.1 | 187.6 |
General and administrative | 26.0 | 27.4 | 55.6 | 56.8 | 107.8 | 120.0 |
Pension settlement costs | 0.0 | 0.0 | 0.0 | 0.0 | 16.7 | 0.0 |
Merger and restructuring costs | 3.7 | 0.0 | 18.3 | 0.0 | 18.3 | 0.0 |
Production and other taxes | 11.4 | 12.8 | 23.1 | 26.6 | 47.8 | 56.2 |
Depreciation, depletion and amortization | 56.4 | 53.6 | 112.3 | 107.9 | 220.4 | 209.5 |
Abandonment and impairment | 0.1 | 0.1 | 0.3 | 0.1 | 12.7 | 0.1 |
Total Operating Expenses | 109.8 | 125.4 | 430.7 | 407.0 | 786.0 | 758.6 |
Net gain (loss) from asset sales | 0.1 | 1.4 | 0.4 | 1.4 | 0.8 | 2.5 |
OPERATING INCOME | 64.4 | 75.3 | 200.1 | 222.3 | 352.2 | 402.9 |
Interest and other income | 1.1 | 1.5 | 2.1 | 2.9 | 3.4 | 6.5 |
Income from unconsolidated affiliate | 0.9 | 1.0 | 1.9 | 1.9 | 3.7 | 3.6 |
Interest expense | (15.5) | (15.8) | (31.3) | (31.7) | (62.6) | (63.2) |
INCOME (LOSS) BEFORE INCOME TAXES | 50.9 | 62.0 | 172.8 | 195.4 | 296.7 | 349.8 |
Income taxes | (17.8) | (21.4) | (61.2) | (70.2) | (101.6) | (123.5) |
NET INCOME (LOSS) | $ 33.1 | $ 40.6 | $ 111.6 | $ 125.2 | $ 195.1 | $ 226.3 |
Earnings Per Common Share | ||||||
Basic (usd per share) | $ 0.19 | $ 0.23 | $ 0.64 | $ 0.71 | $ 1.11 | $ 1.29 |
Diluted (usd per share) | $ 0.19 | $ 0.23 | $ 0.64 | $ 0.71 | $ 1.11 | $ 1.28 |
Weighted-average common shares outstanding | ||||||
Used in basic calculation (in shares) | 176.0 | 176.4 | 175.9 | 176.3 | 175.9 | 176.1 |
Used in diluted calculation (in shares) | 176.2 | 176.6 | 176.2 | 176.5 | 176.1 | 176.4 |
Dividends per common share (usd per share) | $ 0.22 | $ 0.21 | $ 0.44 | $ 0.42 | $ 0.86 | $ 0.80 |
Questar Gas [Member] | ||||||
REVENUES | ||||||
Total Revenues | $ 128.2 | $ 141.7 | $ 536.1 | $ 516.5 | $ 937.2 | $ 936.1 |
OPERATING EXPENSES | ||||||
Cost of natural gas sold (excluding operating expenses shown separately) | 67.8 | 84.0 | 324.7 | 317.6 | 565.2 | 580.6 |
Operating and maintenance | 24.9 | 24.8 | 59.5 | 57.9 | 113.5 | 114.3 |
General and administrative | 11.4 | 12.8 | 24.4 | 26.2 | 48.8 | 52.3 |
Depreciation and amortization | 15.0 | 13.6 | 29.7 | 27.1 | 57.7 | 53.9 |
Other taxes | 5.3 | 5.1 | 10.6 | 9.7 | 20.2 | 17.6 |
Total Operating Expenses | 124.4 | 140.3 | 448.9 | 438.5 | 805.4 | 818.7 |
OPERATING INCOME | 3.8 | 1.4 | 87.2 | 78.0 | 131.8 | 117.4 |
Interest and other income | 0.9 | 1.2 | 1.9 | 2.3 | 4.4 | 5.6 |
Interest expense | (7.5) | (7.1) | (15.2) | (14.2) | (29.3) | (28.3) |
INCOME (LOSS) BEFORE INCOME TAXES | (2.8) | (4.5) | 73.9 | 66.1 | 106.9 | 94.7 |
Income taxes | 1.2 | 1.7 | (27.9) | (25.1) | (37.6) | (34.8) |
NET INCOME (LOSS) | (1.6) | (2.8) | 46.0 | 41.0 | 69.3 | 59.9 |
Questar Pipeline [Member] | ||||||
REVENUES | ||||||
Questar Pipeline / Revenues from unaffiliated customers | 42.9 | 46.5 | 85.9 | 93.3 | 180.5 | 187.4 |
Revenues from affiliated companies | 17.5 | 17.8 | 36.8 | 37.2 | 74.7 | 73.9 |
Total Revenues | 60.4 | 64.3 | 122.7 | 130.5 | 255.2 | 261.3 |
OPERATING EXPENSES | ||||||
Operating and maintenance | 9.0 | 8.9 | 17.6 | 19.0 | 36.2 | 39.8 |
General and administrative | 8.9 | 10.5 | 19.2 | 21.0 | 37.1 | 40.1 |
Depreciation and amortization | 13.7 | 13.7 | 27.4 | 27.7 | 54.3 | 55.0 |
Other taxes | 2.2 | 2.1 | 4.5 | 4.4 | 8.9 | 8.8 |
Cost of sales (excluding operating expenses shown separately) | 0.3 | (0.2) | 0.4 | 1.7 | 7.6 | 3.3 |
Total Operating Expenses | 34.1 | 35.0 | 69.1 | 73.8 | 144.1 | 147.0 |
Net gain (loss) from asset sales | 0.1 | 0.0 | 0.4 | 0.0 | 0.6 | (0.5) |
OPERATING INCOME | 26.4 | 29.3 | 54.0 | 56.7 | 111.7 | 113.8 |
Interest and other income | 0.2 | 0.2 | 0.3 | 0.4 | 0.8 | 1.2 |
Income from unconsolidated affiliate | 0.9 | 1.0 | 1.9 | 1.9 | 3.7 | 3.6 |
Interest expense | (6.2) | (6.5) | (12.4) | (13.1) | (25.3) | (26.1) |
INCOME (LOSS) BEFORE INCOME TAXES | 21.3 | 24.0 | 43.8 | 45.9 | 90.9 | 92.5 |
Income taxes | (7.7) | (8.8) | (16.0) | (16.8) | (32.6) | (34.2) |
NET INCOME (LOSS) | $ 13.6 | $ 15.2 | $ 27.8 | $ 29.1 | $ 58.3 | $ 58.3 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Net income | $ 33.1 | $ 40.6 | $ 111.6 | $ 125.2 | $ 195.1 | $ 226.3 |
Other comprehensive income (loss): | ||||||
Pension and other postretirement benefits | 4.0 | 6.0 | 8.0 | 12.0 | 21.6 | (93.7) |
Interest rate cash flow hedge amortization | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 |
Commodity cash flow hedge | (0.9) | (0.3) | (1.1) | (0.3) | (1.0) | (0.3) |
Income taxes | (1.1) | (2.2) | (2.7) | (4.6) | (8.1) | 35.9 |
Net other comprehensive income (loss) | 2.1 | 3.7 | 4.5 | 7.5 | 13.0 | (57.5) |
COMPREHENSIVE INCOME | 35.2 | 44.3 | 116.1 | 132.7 | 208.1 | 168.8 |
Questar Pipeline [Member] | ||||||
Net income | 13.6 | 15.2 | 27.8 | 29.1 | 58.3 | 58.3 |
Other comprehensive income (loss): | ||||||
Interest rate cash flow hedge amortization | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 |
Commodity cash flow hedge | (0.9) | (0.3) | (1.1) | (0.3) | (1.0) | (0.3) |
Income taxes | 0.4 | 0.0 | 0.3 | (0.1) | 0.2 | (0.1) |
Net other comprehensive income (loss) | (0.4) | (0.1) | (0.5) | 0.0 | (0.3) | 0.2 |
COMPREHENSIVE INCOME | $ 13.2 | $ 15.1 | $ 27.3 | $ 29.1 | $ 58.0 | $ 58.5 |
Nature of Business |
6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Nature of Business | Nature of Business Questar Corporation (the Company) is a Rockies-based integrated natural gas company with three principal complementary and wholly-owned lines of business:
Questar is headquartered in Salt Lake City, Utah. Shares of Questar common stock trade on the New York Stock Exchange (NYSE:STR). |
Proposed Merger with Dominion Resources |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Proposed Merger with Dominion | Proposed Merger with Dominion Resources On January 31, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Dominion Resources, Inc., a Virginia corporation (“Parent”) and Diamond Beehive Corp., a Utah corporation and a direct wholly-owned subsidiary of Parent (“Merger Sub”). The Merger Agreement provides for the merger of Merger Sub with and into the Company on the terms and subject to the conditions set forth in the Merger Agreement (the “Merger”), with the Company continuing as the surviving corporation in the Merger and becoming a direct, wholly-owned subsidiary of Parent. At the effective time of the Merger (the “Effective Time”), by virtue of the Merger and without any action on the part of the Company, Parent or Merger Sub or any holder of any shares of common stock, no par value per share, of the Company (the “Company Common Stock”) or any shares of capital stock of Merger Sub, each share of the Company Common Stock issued and outstanding immediately prior to the Effective Time (other than Dissenting Shares and shares of Company Common Stock that are owned by Parent or Merger Sub or any of their respective subsidiaries, in each case immediately prior to the Effective Time) will be converted automatically into the right to receive $25.00 in cash, without interest. Closing of the Merger is subject to the satisfaction or waiver of specified closing conditions, including (i) the approval of the Merger by the holders of a majority of the outstanding shares of Company Common Stock, (ii) the receipt of regulatory approvals required to close the Merger, including approvals from the Public Service Commission of Utah (if required) and the Public Service Commission of Wyoming, (iii) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iv) the absence of any law, statute, ordinance, code, rule, regulation, ruling, decree, judgment, injunction or order of a governmental authority that prohibits the consummation of the Merger, and (v) other customary closing conditions, including (a) the accuracy of each party’s representations and warranties (subject to customary materiality qualifiers), (b) each party’s compliance in all material respects with its obligations and covenants contained in the Merger Agreement, and (c) the absence of a material adverse effect on the Company. In addition, the obligations of Parent and Merger Sub to consummate the Merger are subject to the required regulatory approvals not imposing or requiring any undertakings, terms, conditions, liabilities, obligations, commitments or sanctions, or any structural or remedial actions that constitute a Company Material Adverse Effect. On February 23, 2016, the Federal Trade Commission granted early termination of the 30-day waiting period under the federal Hart-Scott-Rodino Antitrust Improvements Act with regards to the Merger. On March 3, 2016, Questar and Parent jointly filed merger applications with the Public Service Commission of Utah and the Wyoming Public Service Commission and provided notice of the proposed Merger to the Idaho Public Utilities Commission. Hearings are scheduled in Utah and Wyoming during the third quarter. A shareholder vote was held and approval of the Merger was granted on May 12, 2016. The Merger Agreement also contains customary representations, warranties and covenants of both the Company and Parent. These covenants include, among others, an obligation on behalf of the Company to use reasonable best efforts to conduct its business in all material respects in the ordinary course until the Merger is consummated, subject to certain exceptions. The Company has made certain additional customary covenants, including, among others, subject to certain exceptions, (a) causing a meeting of the Company’s shareholders to be held to consider approval of the Merger Agreement, and (b) a customary non-solicitation covenant prohibiting the Company from soliciting, providing non-public information or entering into discussions or negotiations concerning proposals relating to alternative business combination transactions, except as permitted under the Merger Agreement. In addition, the parties are required to use reasonable best efforts to obtain any required regulatory approvals. The Merger Agreement may be terminated by each of the Company and Parent under certain circumstances, including if the Merger is not consummated by February 28, 2017 (subject to certain extension rights, up to a maximum of nine months, as specified in the Merger Agreement). The Merger Agreement contains certain termination rights for both Parent and the Company, and provides that, upon termination of the Merger Agreement under specified circumstances, Parent would be required to pay a termination fee of $154 million to the Company (the “Parent Termination Fee”) and the Company would be required to pay Parent a termination fee of $99 million (the “Company Termination Fee”). The Company Termination Fee is payable under certain specified circumstances, including (i) termination of the Merger Agreement by the Company in order to enter into a definitive agreement with respect to certain business combinations, and (ii) termination of the Merger Agreement by Parent following a withdrawal by the Company Board of its recommendation of the Merger Agreement. The Company will also be required to pay Parent the Company Termination Fee in the event the Company signs an alternative transaction within twelve months following the termination of the Merger Agreement under certain specified circumstances. In addition, upon termination of the Merger Agreement in certain specified circumstances, the Company would be required to reimburse Parent for certain expenses incurred by Parent and its affiliates and representatives in connection with transaction, in an amount not to exceed $5 million. The Parent Termination Fee is payable by the Parent in certain specified circumstances if the Merger Agreement is terminated under certain circumstances due to the failure to obtain certain regulatory approvals as a result of the imposition of a Burdensome Condition or the material breach by Parent of its obligations to obtain certain regulatory approvals. |
Basis of Presentation of Interim Financial Statements |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation of Interim Financial Statements | Basis of Presentation of Interim Financial Statements The interim financial statements contain the accounts of Questar and its wholly-owned subsidiaries. The financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP), the instructions for Quarterly Reports on Form 10-Q and SEC Regulations S-X and S-K. All significant intercompany accounts and transactions have been eliminated in consolidation. The financial statements reflect all normal, recurring adjustments and accruals that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim financial statements do not include all of the information and notes required by GAAP for audited annual financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The preparation of financial statements and notes in conformity with GAAP requires that management make estimates and assumptions that affect the amounts of revenues, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from estimates. The results of operations for the three, six and 12 months ended June 30, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Certain reclassifications were made to prior year information to conform to the current year presentation. See Note 13 for further information. Questar and Questar Pipeline use the equity method to account for an investment in an unconsolidated affiliate where they do not have control, but have significant influence. The investment in the unconsolidated affiliate on the Condensed Consolidated Balance Sheets equals Questar Pipeline's proportionate share of equity reported by the unconsolidated affiliate. The investment is assessed for possible impairment when events indicate that the fair value of the investment may be below Questar Pipeline's carrying value. When such a condition is deemed to be other-than-temporary, the carrying value of the investment is written down to its fair value, and the amount of the write-down is included in the determination of net income. White River Hub, LLC, a limited liability company and FERC-regulated transporter of natural gas, is the sole unconsolidated affiliate. Questar Pipeline owns 50% of White River Hub, LLC, and is the operator. Questar Gas obtains the majority of its gas supply from Wexpro's cost-of-service production and pays Wexpro an operator service fee based on the terms of the Wexpro Agreement and the Wexpro II Agreement (Wexpro agreements). Questar Gas also obtains transportation and storage services from Questar Pipeline. These intercompany revenues and expenses are eliminated in the Questar Consolidated Statements of Income by reducing revenues and cost of sales. The underlying costs of Wexpro's production and Questar Pipeline's transportation and storage services are disclosed in other categories in the Consolidated Statements of Income, including operating and maintenance expense and depreciation, depletion and amortization expense. During the second and third quarters of the year, a significant portion of the natural gas from Wexpro production is injected into underground storage. This gas is withdrawn from storage as needed during the heating season in the first and fourth quarters. The cost of natural gas sold is credited with the value of natural gas as it is injected into storage and debited as it is withdrawn from storage. The reported balance in consolidated cost of sales may be a negative amount during the second and third quarters because of the entries to record injection of gas into storage and the elimination of intercompany transactions. The details of Questar's consolidated cost of sales are as follows:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period, which includes vested undistributed restricted stock units (RSUs) and vested undistributed deferred RSUs. Diluted EPS includes the potential increase in the number of outstanding shares that could result from the exercise of in-the-money stock options, the vesting of RSUs with forfeitable dividend equivalents and the distribution of performance shares that are part of the Company's Long-Term Stock Incentive Plan (LTSIP), less shares repurchased under the treasury stock method. Restricted shares and RSUs with nonforfeitable dividends or dividend equivalents are participating securities for the computation of basic EPS under the two-class method. The application of the two-class method has an insignificant impact on the calculation of Questar's basic and diluted EPS. A reconciliation of the components of basic and diluted shares used in the EPS calculation follows:
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Accumulated Other Comprehensive Income |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Comprehensive income, as reported in Questar's Condensed Consolidated Statements of Comprehensive Income, is the sum of net income as reported in the Questar Consolidated Statements of Income and net other comprehensive income (loss) (OCI). OCI includes recognition of the under-funded position of pension and other postretirement benefit plans, interest rate and commodity-based cash flow hedges, changes in the fair value of long-term investment, and the related income taxes. Income or loss is recognized when the pension and other postretirement benefit (OPB) costs are accrued, as the Company records interest expense for hedged interest payments, as the Company reaches settlement of commodity-based hedges and when the long-term investment is sold. Details of the changes in 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 in the tables below. The tables also disclose details of income taxes related to each component of OCI.
(1) Interest rate cash flow hedge amounts are included in their entirety as charges to interest expense on the Consolidated Statements of Income. (2) Income tax reclassifications related to interest rate cash flow hedge amounts are included in their entirety as credits to income taxes on the Consolidated Statements of Income. Pension and other postretirement benefit AOCI reclassifications are included in the computation of net periodic pension and postretirement benefit costs. See Note 10 for additional details. Disclosures regarding interest rate and commodity-based cash flow hedges, including income taxes and income statement reclassification effects, apply to Questar Pipeline. |
Asset Retirement Obligations |
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Asset Retirement Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations Questar records an asset retirement obligation (ARO) along with an increase to the carrying value of the related property, plant and equipment when there is a legal obligation associated with the retirement of a tangible long-lived asset. Questar's AROs apply primarily to abandonment costs associated with gas and oil wells, production facilities and certain other properties. The Company has not recorded AROs on a majority of its long-lived transportation and distribution assets because the Company does not have a legal obligation to restore the area surrounding abandoned assets. The fair value of retirement costs is estimated by Company personnel based on abandonment costs of similar properties available to field operations and depreciated over the life of the related assets. Revisions to estimates result from material changes in the expected timing or amount of cash flows associated with AROs. Income or expense resulting from the settlement of ARO liabilities sold is included in net gain (loss) from asset sales on the Consolidated Statements of Income. The ARO liability is adjusted to present value each period through an accretion calculation using a credit-adjusted risk-free interest rate. Changes in Questar's AROs from the Condensed Consolidated Balance Sheets were as follows:
Wexpro collects from Questar Gas and deposits in trust certain funds related to AROs. The funds are recorded as other noncurrent assets and used to satisfy retirement obligations as the properties are abandoned. The accounting treatment of reclamation activities associated with AROs for properties administered under the Wexpro agreements is defined in a guideline letter between Wexpro and the Utah Division of Public Utilities and the staff of the Wyoming Public Service Commission. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Questar complies with the accounting standards for fair value measurements and disclosures. The standards establish a fair value hierarchy. Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Company had no assets or liabilities measured using Level 3 inputs at June 30, 2016, June 30, 2015, or December 31, 2015. Fair value accounting standards also apply to certain nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. At December 31, 2015, the Company recorded a pre-tax abandonment and impairment charge of $12.1 million for the South Moxa leasehold. Thus, the South Moxa leasehold was reported at fair value on a nonrecurring basis at December 31, 2015. Questar did not have any assets or liabilities measured at fair value on a nonrecurring basis at June 30, 2016 or June 30, 2015. Questar The following table discloses the carrying amount, estimated fair value and level within the fair value hierarchy of certain financial instruments not disclosed in other notes to Questar's financial statements in this Quarterly Report:
The long-term investment is recorded at fair value and consists of money market and short-term bond index mutual funds held in Wexpro's trust (see Note 6). The fair value of the long-term investment is based on quoted prices for the underlying funds. The fair value of fixed-rate long-term debt is based on the discounted present value of cash flows using the Company's current credit risk-adjusted borrowing rates. Questar Gas The following table discloses the carrying amount, estimated fair value and level within the fair value hierarchy of certain financial instruments not disclosed in other notes to Questar Gas's financial statements in this Quarterly Report:
The carrying amounts of notes payable to Questar approximate fair value because of their short maturities and market-based interest rates. The fair value of fixed-rate long-term debt is based on the discounted present value of cash flows using Questar Gas's current credit risk-adjusted borrowing rates. Questar Pipeline The following table discloses the carrying amount, estimated fair value and level within the fair value hierarchy of certain financial instruments not disclosed in other notes to Questar Pipeline's financial statements in this Quarterly Report:
The carrying amounts of notes receivable from Questar approximate fair value because of their short maturities and market-based interest rates. The fair value of fixed-rate long-term debt is based on the discounted present value of cash flows using Questar Pipeline's current credit risk-adjusted borrowing rates. |
Derivatives and Hedging |
6 Months Ended |
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Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging Questar and its subsidiaries may enter into derivative instruments to manage exposure to changes in current and future market interest rates. Questar Pipeline entered into forward starting swaps totaling $150.0 million in the second and third quarters of 2011 in anticipation of issuing $180.0 million of notes in December 2011. Settlement of these swaps required payments of $37.3 million in the fourth quarter of 2011 because of declines in interest rates. These swaps qualified as cash flow hedges and the settlement payments are being amortized to interest expense over the 30-year life of the debt. See the Condensed Consolidated Statements of Comprehensive Income and Note 5 for details regarding reclassifications of AOCI related to deferred interest rate cash flow hedge losses to interest expense for the six months ended June 30, 2016 and June 30, 2015. Reclassifications into earnings of amounts reported in AOCI will continue while interest expense is recorded for the hedged interest payments through maturity in 2041. Pre-tax net losses of $0.6 million are expected to be reclassified from AOCI to the Consolidated Statements of Income in the next 12 months. There was a $1.3 million derivative liability at June 30, 2016, a $0.2 million liability at December 31, 2015 and a $0.3 million liability at June 30, 2015. |
Operations by Line of Business |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operations by Line of Business | Operations by Line of Business Questar's three principal complementary lines of business include Questar Gas, which provides retail natural gas distribution in Utah, Wyoming and Idaho; Wexpro, which develops and produces natural gas from cost-of-service reserves for Questar Gas customers; and Questar Pipeline, which operates interstate natural gas pipelines and storage facilities and provides other energy services. Line-of-business information is presented according to senior management's basis for evaluating performance and considering differences in the nature of products, services and regulation, among other factors. Following is a summary of operations by line of business:
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Employee Benefits |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | Employee Benefits The Company has a noncontributory defined benefit pension plan covering a majority of its employees and postretirement medical and life insurance plans providing coverage to less than half of its employees. Employees hired or rehired after June 30, 2010, are not eligible for the noncontributory defined benefit pension plan and employees hired or rehired after December 31, 1996, are not eligible for the postretirement medical plan and are not eligible to receive basic life insurance once they retire. Questar is subject to and complies with minimum-required and maximum-allowed annual contribution levels for its qualified pension plan, as determined by the Employee Retirement Income Security Act and the Internal Revenue Code. The 2016 estimated net cost for the qualified pension plan is $8.1 million. The Company also has a nonqualified pension plan that covers a group of management employees in addition to the noncontributory qualified pension plan. The nonqualified pension plan provides for defined benefit payments upon retirement of the management employee, above the benefit limit defined by the Internal Revenue Service (IRS) for the qualified plan. The nonqualified pension plan is unfunded; benefits are paid from the Company's general funds. The 2016 estimated net cost for the nonqualified pension plan is $5.2 million. Components of the qualified and nonqualified net periodic pension cost are listed in the table below:
The Company currently estimates a $2.4 million net cost for postretirement benefits other than pensions in 2016, before accretion of a regulatory liability. Net periodic postretirement benefit cost components are listed in the table below:
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Contingencies |
6 Months Ended |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Questar and each of its subsidiaries are involved in various commercial, environmental, and regulatory claims. Litigation and other legal proceedings arise in the ordinary course of business. Management does not believe any such litigation or other legal proceedings arising in the ordinary course of business individually or in the aggregate, will have a material adverse effect on Questar's, Questar Gas's or Questar Pipeline's financial position, results of operations or cash flows. A liability is recorded for a loss contingency when its occurrence is probable and its amount can be reasonably estimated. If some amount within a range of possible outcomes appears to be a better estimate than any other amount within the range, that amount is recorded. Otherwise, the minimum amount in the range is recorded. Disclosures are provided for contingencies reasonably likely to occur, which would have a material adverse effect on Questar's, Questar Gas's or Questar Pipeline's financial position, results of operations or cash flows. Some of the claims involve highly complex issues relating to liability, damages and other matters subject to substantial uncertainties and, therefore, the probability of liability or an estimate of loss cannot be reasonably determined. Litigation The case related to operations entitled Questar Gas Company v. QEP Field Services Company that was filed in Third District Court in Salt Lake County, Utah on May 1, 2012, was settled on March 22, 2016. Questar Gas believes the settlement agreement reasonably resolves disputed issues regarding services and charges under the 1993 Gas Gathering Agreement. The settlement agreement did not result in a material impact on Questar's or Questar Gas's results of operation, financial position or cash flows. In February 2015, a trial was held in the case of Rocky Mountain Resources and Robert N. Floyd v. QEP Energy Company and Wexpro Company, Ninth Judicial District, County of Sublette, State of Wyoming, Case No. 2011-7816. Plaintiffs allege they are entitled to a 4% overriding royalty interest (ORRI) in a so-called replacement state oil and gas lease ultimately assigned to Wexpro and QEP Energy Company (QEP) in the Pinedale Field. Wexpro and QEP believe the former state leases subject to the ORRI expired and a new lease was issued by the State of Wyoming unburdened by the 4% ORRI. A jury decision was reached on February 13, 2015, that awarded the Plaintiffs $14.1 million from Wexpro and $16.2 million from QEP. Wexpro and QEP have filed an appeal of the case to the Wyoming Supreme Court and briefing began in May 2016 and will conclude in August 2016. Wexpro has accrued its estimate of liability in the case. Any additional royalties will be recovered from Questar Gas’s customers. Litigation Related to Proposed Merger As more fully described in Note 2, Questar entered into an Agreement and Plan of Merger with Dominion Resources, Inc. ("Dominion Resources") and its wholly-owned subsidiary, Diamond Beehive Corp. on January 31, 2016, pursuant to which Questar shareholders have the right to receive $25.00 per share in cash, subject to the satisfaction of specified conditions. If the Dominion Merger is completed, Questar will become a wholly-owned subsidiary of Dominion Resources. As of August 3, 2016, six lawsuits challenging the Merger have been filed purportedly on behalf of Questar shareholders, of which four are pending in the Third District Court, Salt Lake County, Utah, and two are pending in the United States District Court of Utah, Central Division. Each of the lawsuits names Questar, Questar’s directors, Dominion Resources and Diamond Beehive Corp. as defendants. The named plaintiffs in the four lawsuits pending in Third District Court are John Hansen, Eric Senatori, Shiva Stein and James E. Toth, and Teamsters Local 456 Pension Fund and Teamsters Local 456 Annuity Fund, respectively. The named plaintiffs in the two lawsuits pending in U.S. District Court are Kevin Hessel and Dan Ipson, respectively. All of the lawsuits are purported shareholder class actions advancing substantially the same allegations that the Merger Agreement was adopted in violation of the fiduciary duties of Questar’s directors and seeking injunctive relief to enjoin the Dominion Merger, as well as other remedies. All of the cases raise direct claims on behalf of Questar shareholders. In addition, one of the cases raises derivative claims on behalf of Questar. On April 21, 2016, the Third District Court granted a request to consolidate all four cases pending in Third District Court into Teamsters Local 456 Pension Fund, et. al. v. Ronald W. Jibson, et. al. (Case No. 160900938). On April 22, 2016, the court appointed Teamsters Local 456 Pension Fund as lead plaintiff in the consolidated matter. The court also appointed lead counsel and liaison counsel. On May 5, 2016 the parties of the state action entered into a Memorandum of Understanding and reached an agreement-in-principle providing for settlement of the state action, subject to confirmatory discovery and court approval. The federal plaintiffs are not signatories to the MOU and their cases remain pending, although the federal plaintiffs have stated that they intend to dismiss the federal cases within five days of the approval of the settlement and entry of an Order and Final Judgment in the state cases. The outcome of these lawsuits is uncertain, and additional lawsuits may be brought or additional claims advanced concerning the Merger. An adverse judgment for monetary damages could have an adverse effect on Questar’s operations. |
Asset Impairments |
6 Months Ended |
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Jun. 30, 2016 | |
Wexpro Impairment [Abstract] | |
Asset Impairments | Asset Impairments During the fourth quarter of 2015, Wexpro recorded a pre-tax abandonment and impairment charge of $12.1 million for the South Moxa leasehold because current oil market prices do not support an oil drilling program. |
Accounting Developments |
6 Months Ended |
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Jun. 30, 2016 | |
Recent Accounting Developments [Abstract] | |
Recent Accounting Developments | Accounting Developments In April 2016, The Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This update is due to issues regarding performance obligations and licensing identified by the Transition Resource Group for Revenue Recognition. The amendments in this update do not change the core principle of the guidance in Topic 606, Revenue from Contracts with Customers. Rather, the amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. The effective date for the amendments in this update is the same as ASU 2015-14 noted below. The Company is currently evaluating the ASU's effect on its financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The ASU was issued a part of the Board simplification initiative. The areas for simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. In addition to those simplifications, the amendments eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. This should not result in a change in practice because the guidance that is being superseded was never effective. the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the ASU's effect on its financial position, results of operations or cash flows. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations. This updated is the result of feedback received by the Transition Resource Group for Revenue Recognition. The amendments in this update are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations as outlined in Topic 606. The effective date for the amendments in this update is the same as ASU 2015-14 noted below. The Company is currently evaluating the ASU's effect on its financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, Leases. The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. The update mainly addresses issues with accounting for operating leases in the financial statements of lessees. As such, the amendments of this update do not fundamentally change lessor accounting. However, some changes have been made to lessor accounting to conform and align that guidance with the lessee guidance and other areas within generally accepted accounting principles. The amendments in this Update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the ASU's effect on its financial position, results of operations, cash flows and associated disclosures. In January 2016, FASB issued ASU 2016-01, Financial Instruments-Overall. The ASU was developed to enhance the reporting model for financial instruments in order to provide users of financial statements with more decision-useful information. The update addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the ASU's effect on its financial position, results of operations, cash flows and associated disclosures. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes. The ASU simplifies the presentation of deferred income taxes. The update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The guidance will be effective for annual periods beginning after December 15, 2016. The Company has adopted this update for the current reporting period and has retrospectively reflected all deferred taxes as noncurrent for the periods presented. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update). This update adds SEC staff guidance to the Codification that the SEC staff will not object to an entity presenting the costs of securing line-of-credit arrangements as an asset, regardless of whether there are any outstanding borrowings. The guidance was issued in response to questions that arose after the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs, in April 2015. There was no impact to the financial statements as a result of this update. In August 2015, the FASB issued ASU 2015-14. This update defers the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which the FASB issued in May of 2014, by one year. ASU 2014-09 replaces most of the existing revenue guidance with a single set of principles, including changes in recognition and disclosure requirements. The revised effective date will be January 1, 2018 and early adoption is permitted beginning January 1, 2017. The new guidance must be applied retrospectively for each prior period presented or via a cumulative effect upon the date of initial application. The Company is currently evaluating the ASU's effect on its financial position, results of operations or cash flows, as well as which transition approach it will take. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330). The ASU states that inventory should be measured at the lower of cost and net realizable value. The guidance will be effective beginning January 1, 2017 and will be applied prospectively. The Company is currently evaluating the ASU's effect on its financial position, results of operations and cash flows. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30). The ASU simplifies the presentation of debt issuance costs by requiring that the debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The guidance will be effective beginning January 1, 2016 and early adoption is permitted. The new guidance must be applied retrospectively for each prior period presented. The Company has adopted this update for the current reporting period and has retrospectively adjusted all periods presented. The prior period debt issuance costs (asset) were netted against the debt within the liability section of the balance sheet. The resulting effect on the balance sheet was a reduction in assets with a corresponding reduction in liabilities. |
Basis of Presentation of Interim Financial Statements (Policies) |
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Jun. 30, 2016 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Nature of Business | Questar Corporation (the Company) is a Rockies-based integrated natural gas company with three principal complementary and wholly-owned lines of business:
Questar is headquartered in Salt Lake City, Utah. Shares of Questar common stock trade on the New York Stock Exchange (NYSE:STR). |
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Investment in Unconsolidated Affiliate | Questar and Questar Pipeline use the equity method to account for an investment in an unconsolidated affiliate where they do not have control, but have significant influence. The investment in the unconsolidated affiliate on the Condensed Consolidated Balance Sheets equals Questar Pipeline's proportionate share of equity reported by the unconsolidated affiliate. The investment is assessed for possible impairment when events indicate that the fair value of the investment may be below Questar Pipeline's carrying value. When such a condition is deemed to be other-than-temporary, the carrying value of the investment is written down to its fair value, and the amount of the write-down is included in the determination of net income. White River Hub, LLC, a limited liability company and FERC-regulated transporter of natural gas, is the sole unconsolidated affiliate. Questar Pipeline owns 50% of White River Hub, LLC, and is the operator. |
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Earnings Per Share | Basic earnings per share (EPS) is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period, which includes vested undistributed restricted stock units (RSUs) and vested undistributed deferred RSUs. Diluted EPS includes the potential increase in the number of outstanding shares that could result from the exercise of in-the-money stock options, the vesting of RSUs with forfeitable dividend equivalents and the distribution of performance shares that are part of the Company's Long-Term Stock Incentive Plan (LTSIP), less shares repurchased under the treasury stock method. Restricted shares and RSUs with nonforfeitable dividends or dividend equivalents are participating securities for the computation of basic EPS under the two-class method. The application of the two-class method has an insignificant impact on the calculation of Questar's basic and diluted EPS. |
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Comprehensive Income - Questar | Comprehensive income, as reported in Questar's Condensed Consolidated Statements of Comprehensive Income, is the sum of net income as reported in the Questar Consolidated Statements of Income and net other comprehensive income (loss) (OCI). OCI includes recognition of the under-funded position of pension and other postretirement benefit plans, interest rate and commodity-based cash flow hedges, changes in the fair value of long-term investment, and the related income taxes. Income or loss is recognized when the pension and other postretirement benefit (OPB) costs are accrued, as the Company records interest expense for hedged interest payments, as the Company reaches settlement of commodity-based hedges and when the long-term investment is sold. |
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Comprehensive Income - Questar Pipeline | Disclosures regarding interest rate and commodity-based cash flow hedges, including income taxes and income statement reclassification effects, apply to Questar Pipeline. |
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Asset Retirement Obligations | Questar records an asset retirement obligation (ARO) along with an increase to the carrying value of the related property, plant and equipment when there is a legal obligation associated with the retirement of a tangible long-lived asset. Questar's AROs apply primarily to abandonment costs associated with gas and oil wells, production facilities and certain other properties. The Company has not recorded AROs on a majority of its long-lived transportation and distribution assets because the Company does not have a legal obligation to restore the area surrounding abandoned assets. The fair value of retirement costs is estimated by Company personnel based on abandonment costs of similar properties available to field operations and depreciated over the life of the related assets. Revisions to estimates result from material changes in the expected timing or amount of cash flows associated with AROs. Income or expense resulting from the settlement of ARO liabilities sold is included in net gain (loss) from asset sales on the Consolidated Statements of Income. The ARO liability is adjusted to present value each period through an accretion calculation using a credit-adjusted risk-free interest rate. |
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Business Segments | Line-of-business information is presented according to senior management's basis for evaluating performance and considering differences in the nature of products, services and regulation, among other factors. |
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Contingencies | A liability is recorded for a loss contingency when its occurrence is probable and its amount can be reasonably estimated. If some amount within a range of possible outcomes appears to be a better estimate than any other amount within the range, that amount is recorded. Otherwise, the minimum amount in the range is recorded. Disclosures are provided for contingencies reasonably likely to occur, which would have a material adverse effect on Questar's, Questar Gas's or Questar Pipeline's financial position, results of operations or cash flows. Some of the claims involve highly complex issues relating to liability, damages and other matters subject to substantial uncertainties and, therefore, the probability of liability or an estimate of loss cannot be reasonably determined. |
Basis of Presentation of Interim Financial Statements (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales detail | The details of Questar's consolidated cost of sales are as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares | A reconciliation of the components of basic and diluted shares used in the EPS calculation follows:
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Accumulated Other Comprehensive Income (Tables) |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Details of the changes in 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 in the tables below. The tables also disclose details of income taxes related to each component of OCI.
(1) Interest rate cash flow hedge amounts are included in their entirety as charges to interest expense on the Consolidated Statements of Income. (2) Income tax reclassifications related to interest rate cash flow hedge amounts are included in their entirety as credits to income taxes on the Consolidated Statements of Income. |
Asset Retirement Obligations (Tables) |
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Changes in AROs | Changes in Questar's AROs from the Condensed Consolidated Balance Sheets were as follows:
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table discloses the carrying amount, estimated fair value and level within the fair value hierarchy of certain financial instruments not disclosed in other notes to Questar's financial statements in this Quarterly Report:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Questar Gas [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table discloses the carrying amount, estimated fair value and level within the fair value hierarchy of certain financial instruments not disclosed in other notes to Questar Gas's financial statements in this Quarterly Report:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Questar Pipeline [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table discloses the carrying amount, estimated fair value and level within the fair value hierarchy of certain financial instruments not disclosed in other notes to Questar Pipeline's financial statements in this Quarterly Report:
|
Operations by Line of Business (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of operations by line of business | Following is a summary of operations by line of business:
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Employee Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | Net periodic postretirement benefit cost components are listed in the table below:
Components of the qualified and nonqualified net periodic pension cost are listed in the table below:
|
Nature of Business (Details) |
6 Months Ended |
---|---|
Jun. 30, 2016
lines_of_business
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of principal complementary lines of business | 3 |
Proposed Merger with Dominion Resources (Details) $ / shares in Units, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
$ / shares
| |
Business Combinations [Abstract] | |
Business Acquisition, Date of Acquisition Agreement | Jan. 31, 2016 |
Business Acquisition, Share Price | $ / shares | $ 25.00 |
Maximum Extension to Merger Agreement | 9 months |
Business Acquisition, Acquirer Termination Fee | $ 154 |
Business Acquisition, Acquiree Termination Fee | $ 99 |
Alternative Transaction Period | 12 months |
Business Acquisition Acquiree Reimbursement Fee | $ 5 |
Basis of Presentation of Interim Financial Statements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Cost of Sales [Abstract] | ||||||
Other cost of sales | $ 0.4 | $ 0.4 | $ 0.9 | $ 0.7 | $ 1.9 | $ 1.2 |
Total cost of sales | (27.7) | (9.0) | 130.8 | 122.8 | 183.2 | 185.2 |
Questar Gas [Member] | ||||||
Cost of Sales [Abstract] | ||||||
Gas purchases | 2.3 | 2.2 | 49.1 | 43.2 | 88.4 | 83.1 |
Operator service fee | 78.9 | 75.5 | 158.7 | 160.3 | 317.4 | 326.5 |
Transportation and storage | 17.4 | 18.1 | 39.7 | 40.3 | 78.6 | 79.2 |
Gathering | 5.6 | 5.6 | 11.4 | 11.0 | 22.5 | 22.3 |
Royalties | 4.6 | 6.9 | 10.3 | 18.8 | 24.8 | 43.3 |
Storage (injection) withdrawal, net | (15.9) | (16.7) | 20.8 | 14.2 | 3.1 | 1.7 |
Purchased-gas account adjustment | (26.5) | (8.9) | 32.1 | 27.3 | 25.3 | 19.6 |
Other | 1.4 | 1.3 | 2.6 | 2.5 | 5.1 | 4.9 |
Total Questar Gas cost of natural gas sold | 67.8 | 84.0 | 324.7 | 317.6 | 565.2 | 580.6 |
Elimination of Questar Gas cost of natural gas sold - affiliated companies | (96.2) | (93.2) | (195.2) | (197.2) | (391.5) | (399.9) |
Total Questar Gas cost of natural gas sold - unaffiliated parties | $ (28.4) | (9.2) | $ 129.5 | 120.4 | $ 173.7 | 180.7 |
Questar Pipeline [Member] | ||||||
Ownership percentage in unconsolidated affiliate (in hundredths) | 50.00% | 50.00% | 50.00% | |||
Cost of Sales [Abstract] | ||||||
Questar Pipeline cost of sales | $ 0.3 | $ (0.2) | $ 0.4 | $ 1.7 | $ 7.6 | $ 3.3 |
Earnings Per Share (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share [Abstract] | ||||||
Weighted-average basic common shares outstanding (in shares) | 176.0 | 176.4 | 175.9 | 176.3 | 175.9 | 176.1 |
Potential number of shares issuable under the Company's LTSIP (in shares) | 0.2 | 0.2 | 0.3 | 0.2 | 0.2 | 0.3 |
Weighted-average diluted common shares outstanding (in shares) | 176.2 | 176.6 | 176.2 | 176.5 | 176.1 | 176.4 |
Asset Retirement Obligations (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
AROs at beginning of year | $ 67.6 | $ 69.3 |
Accretion | 2.1 | 1.7 |
Liabilities incurred | 0.2 | 0.5 |
Revisions in estimated cash flows | 2.1 | 5.7 |
Liabilities settled | (0.6) | (6.6) |
AROs at end of period | $ 71.4 | $ 70.6 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Abandonment and impairment | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.1 | $ 12.7 | $ 0.1 | |
Fair Value, Measurements, Nonrecurring [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Abandonment and impairment | 0.0 | 0.0 | |||||
Carrying Amount [Member] | |||||||
Financial assets [Abstract] | |||||||
Cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | $ 25.0 | 0.0 |
Long-term investment | 16.6 | 16.7 | 16.6 | 16.7 | 16.6 | 14.1 | 16.7 |
Financial liabilities [Abstract] | |||||||
Checks outstanding in excess of cash balances | 4.0 | 2.5 | 4.0 | 2.5 | 4.0 | 0.0 | 2.5 |
Short-term debt | 459.0 | 228.0 | 459.0 | 228.0 | 459.0 | 457.6 | 228.0 |
Long-term debt, including current portion | 962.6 | 1,237.8 | 962.6 | 1,237.8 | 962.6 | 1,212.3 | 1,237.8 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Financial assets [Abstract] | |||||||
Cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 25.0 | 0.0 |
Financial liabilities [Abstract] | |||||||
Checks outstanding in excess of cash balances | 4.0 | 2.5 | 4.0 | 2.5 | 4.0 | 0.0 | 2.5 |
Short-term debt | 459.0 | 228.0 | 459.0 | 228.0 | 459.0 | 457.6 | 228.0 |
Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Financial liabilities [Abstract] | |||||||
Long-term debt, including current portion | 1,086.5 | 1,320.5 | 1,086.5 | 1,320.5 | 1,086.5 | 1,263.7 | 1,320.5 |
Estimated Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Financial assets [Abstract] | |||||||
Long-term investment | 16.6 | 16.7 | 16.6 | 16.7 | 16.6 | 14.1 | 16.7 |
Wexpro [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Abandonment and impairment | 12.1 | ||||||
Questar Gas [Member] | Carrying Amount [Member] | |||||||
Financial assets [Abstract] | |||||||
Cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 10.5 | 0.0 |
Financial liabilities [Abstract] | |||||||
Checks outstanding in excess of cash balances | 5.1 | 4.1 | 5.1 | 4.1 | 5.1 | 0.0 | 4.1 |
Notes payable to Questar | 129.0 | 59.7 | 129.0 | 59.7 | 129.0 | 273.3 | 59.7 |
Long-term debt, including current portion | 531.4 | 531.0 | 531.4 | 531.0 | 531.4 | 531.2 | 531.0 |
Questar Gas [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Financial assets [Abstract] | |||||||
Cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 10.5 | 0.0 |
Financial liabilities [Abstract] | |||||||
Checks outstanding in excess of cash balances | 5.1 | 4.1 | 5.1 | 4.1 | 5.1 | 0.0 | 4.1 |
Notes payable to Questar | 129.0 | 59.7 | 129.0 | 59.7 | 129.0 | 273.3 | 59.7 |
Questar Gas [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Financial liabilities [Abstract] | |||||||
Long-term debt, including current portion | 618.5 | 581.5 | 618.5 | 581.5 | 618.5 | 568.4 | 581.5 |
Questar Pipeline [Member] | Carrying Amount [Member] | |||||||
Financial assets [Abstract] | |||||||
Cash and cash equivalents | 1.6 | 1.0 | 1.6 | 1.0 | 1.6 | 10.2 | 1.0 |
Notes receivable from Questar | 34.6 | 34.0 | 34.6 | 34.0 | 34.6 | 6.0 | 34.0 |
Financial liabilities [Abstract] | |||||||
Long-term debt, including current portion | 431.2 | 456.0 | 431.2 | 456.0 | 431.2 | 431.0 | 456.0 |
Questar Pipeline [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Financial assets [Abstract] | |||||||
Cash and cash equivalents | 1.6 | 1.0 | 1.6 | 1.0 | 1.6 | 10.2 | 1.0 |
Notes receivable from Questar | 34.6 | 34.0 | 34.6 | 34.0 | 34.6 | 6.0 | 34.0 |
Questar Pipeline [Member] | Estimated Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Financial liabilities [Abstract] | |||||||
Long-term debt, including current portion | $ 468.0 | $ 487.6 | $ 468.0 | $ 487.6 | $ 468.0 | $ 445.2 | $ 487.6 |
Derivatives and Hedging (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2011 |
Jun. 30, 2016 |
Dec. 31, 2011 |
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Derivative [Line Items] | |||||
Derivative Assets (Liabilities), at Fair Value, Net | $ (1.3) | $ (0.2) | $ (0.3) | ||
Cash Flow Hedging [Member] | Questar Pipeline [Member] | Forward Starting Interest Rate Swaps Terminating Q4 2011 [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | $ 150.0 | $ 150.0 | |||
Debt Instrument, Face Amount | 180.0 | $ 180.0 | |||
Interest payment for terminated derivative instrument | $ 37.3 | ||||
Life of long-term debt associated with cash flow hedges | 30 years | ||||
Date Through Which Reclassifications Into Earnings From AOCI Will Take Place | 2041 | ||||
Pre-tax net losses expected to be reclassified from AOCI to Consolidated statement of income | $ 0.6 | ||||
Reclassification from accumulated OCI to income, time to transfer | 12 months |
Operations by Line of Business (Details) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
lines_of_business
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||||
Number of principal complementary lines of business | lines_of_business | 3 | |||||
Revenues by Line of Business | $ 174.1 | $ 199.3 | $ 630.4 | $ 627.9 | $ 1,137.4 | $ 1,159.0 |
Operating Income (Loss) | 64.4 | 75.3 | 200.1 | 222.3 | 352.2 | 402.9 |
Net Income (Loss) | 33.1 | 40.6 | 111.6 | 125.2 | 195.1 | 226.3 |
Questar Gas [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | 128.2 | 141.7 | 536.1 | 516.5 | 937.2 | 936.1 |
Operating Income (Loss) | 3.8 | 1.4 | 87.2 | 78.0 | 131.8 | 117.4 |
Net Income (Loss) | (1.6) | (2.8) | 46.0 | 41.0 | 69.3 | 59.9 |
Wexpro [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | 1.9 | 10.1 | 5.4 | 16.4 | 11.9 | 31.9 |
Operating Income (Loss) | 39.1 | 41.8 | 78.8 | 83.5 | 142.7 | 172.5 |
Net Income (Loss) | 26.1 | 27.9 | 52.3 | 55.6 | 95.6 | 116.5 |
Questar Pipeline [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | 42.9 | 46.5 | 85.9 | 93.3 | 180.5 | 187.4 |
Operating Income (Loss) | 26.4 | 29.3 | 54.0 | 56.7 | 111.7 | 113.8 |
Net Income (Loss) | 13.6 | 15.2 | 27.8 | 29.1 | 58.3 | 58.3 |
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | 1.1 | 1.0 | 3.0 | 1.7 | 7.8 | 3.6 |
Operating Income (Loss) | (4.9) | 2.8 | (19.9) | 4.1 | (34.0) | (0.8) |
Net Income (Loss) | (5.0) | 0.3 | (14.5) | (0.5) | (28.1) | (8.4) |
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | 96.4 | 93.4 | 195.5 | 197.6 | 392.1 | 400.6 |
Intersegment Eliminations [Member] | Wexpro [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | 78.9 | 75.6 | 158.7 | 160.4 | 317.4 | 326.7 |
Intersegment Eliminations [Member] | Questar Pipeline [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues by Line of Business | $ 17.5 | $ 17.8 | $ 36.8 | $ 37.2 | $ 74.7 | $ 73.9 |
Employee Benefits (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Qualified and nonqualified pension plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 3.1 | $ 3.4 | $ 6.1 | $ 6.8 | $ 13.1 | $ 12.6 |
Interest cost | 8.1 | 8.1 | 16.3 | 16.2 | 32.8 | 32.9 |
Expected return on plan assets | (12.1) | (11.7) | (24.3) | (23.3) | (48.7) | (45.6) |
Prior service cost | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.3 |
Recognized net actuarial loss | 3.7 | 5.7 | 7.5 | 11.4 | 18.0 | 18.9 |
Settlement costs | 1.1 | 0.0 | 1.1 | 0.0 | 17.8 | 0.0 |
Net benefit cost | 3.9 | 5.5 | 6.7 | 11.1 | 33.1 | 19.1 |
Estimated qualified pension plan cost for current fiscal year | 8.1 | 8.1 | 8.1 | |||
Estimated nonqualified pension plan cost for current fiscal year | 5.2 | 5.2 | 5.2 | |||
Postretirement benefits plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 0.1 | 0.1 | 0.2 | 0.3 | 0.5 | 0.6 |
Interest cost | 0.9 | 0.9 | 1.8 | 1.8 | 3.5 | 3.6 |
Expected return on plan assets | (0.7) | (0.8) | (1.4) | (1.6) | (3.0) | (3.1) |
Recognized net actuarial loss | 0.3 | 0.3 | 0.5 | 0.6 | 1.1 | 0.7 |
Accretion of regulatory liability | 0.2 | 0.2 | 0.4 | 0.4 | 1.0 | 0.8 |
Net benefit cost | 0.8 | $ 0.7 | 1.5 | $ 1.5 | 3.1 | $ 2.6 |
Estimated postretirement benefits cost for current fiscal year, before accretion of regulatory liability | $ 2.4 | $ 2.4 | $ 2.4 |
Contingencies (Details) $ / shares in Units, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016
USD ($)
$ / shares
|
Aug. 03, 2016
lawsuit
|
|
Loss Contingencies [Line Items] | ||
Business Acquisition, Date of Acquisition Agreement | Jan. 31, 2016 | |
Business Acquisition, Share Price | $ / shares | $ 25.00 | |
Subsequent Event [Member] | Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 6 | |
Subsequent Event [Member] | Pending Litigation, Third District Court, Salt Lake County, Utah [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 4 | |
Subsequent Event [Member] | Pending Litigation, United States District Court of Utah, Central Division [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 2 | |
Wexpro [Member] | ||
Loss Contingencies [Line Items] | ||
Overriding royalty interest | 4.00% | |
Loss Contingency, Range of Possible Loss, Maximum | $ | $ 14.1 | |
Unaffiliated Entity [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Range of Possible Loss, Maximum | $ | $ 16.2 |
Asset Impairments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Property, Plant and Equipment [Line Items] | ||||||
Abandonment and impairment | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.1 | $ 12.7 | $ 0.1 |
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