[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended September 30, 2012 | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from ___ to ___ |
Exact name of registrant as specified in its charter | State or other jurisdiction of incorporation or organization | Commission File Number | (I.R.S. Employer Identification No.) |
Questar Corporation | Utah | 001-08796 | 87-0407509 |
Questar Gas Company | Utah | 333-69210 | 87-0155877 |
Questar Pipeline Company | Utah | 000-14147 | 87-0307414 |
Questar Corporation | Yes [X] No [ ] |
Questar Gas Company | Yes [X] No [ ] |
Questar Pipeline Company | Yes [X] No [ ] |
Questar Corporation | Yes [X] No [ ] |
Questar Gas Company | Yes [X] No [ ] |
Questar Pipeline Company | Yes [X] No [ ] |
Questar Corporation | Large accelerated filer [X] | Accelerated filer [ ] | Non-accelerated filer [ ] | Smaller reporting company [ ] |
Questar Gas Company | Large accelerated filer [ ] | Accelerated filer [ ] | Non-accelerated filer [X] | Smaller reporting company [ ] |
Questar Pipeline Company | Large accelerated filer [ ] | Accelerated filer [ ] | Non-accelerated filer [X] | Smaller reporting company [ ] |
Questar Corporation | Yes [ ] No [X] |
Questar Gas Company | Yes [ ] No [X] |
Questar Pipeline Company | Yes [ ] No [X] |
Questar Corporation | without par value | 175,083,790 |
Questar Gas Company | $2.50 per share par value | 9,189,626 |
Questar Pipeline Company | $1.00 per share par value | 6,550,843 |
Page | |||
Questar 2012 Form 10-Q | 2 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Questar Gas | $ | 82.5 | $ | 89.8 | $ | 578.7 | $ | 667.7 | $ | 876.5 | $ | 970.4 | |||||||||||
Wexpro | 9.8 | 6.9 | 27.1 | 23.1 | 35.5 | 31.1 | |||||||||||||||||
Questar Pipeline | 49.5 | 50.0 | 150.1 | 148.8 | 198.7 | 200.8 | |||||||||||||||||
Total Revenues | 141.8 | 146.7 | 755.9 | 839.6 | 1,110.7 | 1,202.3 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Cost of sales (excluding operating expenses shown separately) | (42.1 | ) | (30.0 | ) | 99.1 | 211.1 | 209.5 | 338.5 | |||||||||||||||
Operating and maintenance | 36.8 | 35.4 | 133.2 | 126.6 | 182.5 | 174.5 | |||||||||||||||||
General and administrative | 29.0 | 24.1 | 88.0 | 83.3 | 122.6 | 113.4 | |||||||||||||||||
Production and other taxes | 11.1 | 13.5 | 38.0 | 40.2 | 50.3 | 51.1 | |||||||||||||||||
Depreciation, depletion and amortization | 45.9 | 40.1 | 135.6 | 118.4 | 177.1 | 157.3 | |||||||||||||||||
Total Operating Expenses | 80.7 | 83.1 | 493.9 | 579.6 | 742.0 | 834.8 | |||||||||||||||||
Net gain from asset sales | 2.5 | 0.2 | 5.1 | 0.3 | 5.0 | 0.6 | |||||||||||||||||
OPERATING INCOME | 63.6 | 63.8 | 267.1 | 260.3 | 373.7 | 368.1 | |||||||||||||||||
Interest and other income | 1.7 | 3.7 | 5.7 | 8.9 | 7.2 | 12.3 | |||||||||||||||||
Income from unconsolidated affiliate | 1.0 | 1.0 | 2.8 | 2.9 | 3.7 | 3.9 | |||||||||||||||||
Interest expense | (14.5 | ) | (13.3 | ) | (44.3 | ) | (44.1 | ) | (57.0 | ) | (58.8 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 51.8 | 55.2 | 231.3 | 228.0 | 327.6 | 325.5 | |||||||||||||||||
Income taxes | (18.0 | ) | (19.1 | ) | (83.1 | ) | (81.7 | ) | (117.8 | ) | (115.5 | ) | |||||||||||
NET INCOME | $ | 33.8 | $ | 36.1 | $ | 148.2 | $ | 146.3 | $ | 209.8 | $ | 210.0 | |||||||||||
Earnings Per Common Share | |||||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.21 | $ | 0.84 | $ | 0.83 | $ | 1.18 | $ | 1.19 | |||||||||||
Diluted | 0.19 | 0.20 | 0.83 | 0.82 | 1.18 | 1.17 | |||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||||||||
Used in basic calculation | 175.4 | 177.5 | 177.0 | 177.3 | 177.2 | 177.1 | |||||||||||||||||
Used in diluted calculation | 176.5 | 178.9 | 178.1 | 178.7 | 178.3 | 178.8 | |||||||||||||||||
Dividends per common share | $ | 0.17 | $ | 0.1525 | $ | 0.495 | $ | 0.4575 | $ | 0.6575 | $ | 0.5975 |
Questar 2012 Form 10-Q | 3 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income | $ | 33.8 | $ | 36.1 | $ | 148.2 | $ | 146.3 | $ | 209.8 | $ | 210.0 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Pension and other postretirement benefits | — | — | — | — | (159.9 | ) | 34.0 | ||||||||||||||||
Interest rate cash flow hedges | 0.2 | (37.0 | ) | 0.4 | (36.2 | ) | (0.6 | ) | (36.2 | ) | |||||||||||||
Long-term investment | 0.1 | — | 0.1 | — | 0.1 | — | |||||||||||||||||
Income taxes | (0.2 | ) | 13.7 | (0.3 | ) | 13.4 | 61.3 | 0.3 | |||||||||||||||
Net other comprehensive income (loss) | 0.1 | (23.3 | ) | 0.2 | (22.8 | ) | (99.1 | ) | (1.9 | ) | |||||||||||||
COMPREHENSIVE INCOME | $ | 33.9 | $ | 12.8 | $ | 148.4 | $ | 123.5 | $ | 110.7 | $ | 208.1 |
Questar 2012 Form 10-Q | 4 |
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 11.6 | |||||
Accounts receivable, net | 60.0 | 74.8 | 123.9 | ||||||||
Unbilled gas accounts receivable | 10.6 | 12.6 | 75.4 | ||||||||
Gas stored underground | 62.1 | 49.6 | 40.3 | ||||||||
Materials and supplies | 25.7 | 24.4 | 25.7 | ||||||||
Current regulatory assets | 56.8 | 38.3 | 31.7 | ||||||||
Prepaid expenses and other | 6.5 | 6.1 | 10.7 | ||||||||
Deferred income taxes - current | 6.5 | 14.4 | 16.1 | ||||||||
Total Current Assets | 228.2 | 220.2 | 335.4 | ||||||||
Property, Plant and Equipment | 5,244.4 | 4,869.4 | 4,984.1 | ||||||||
Accumulated depreciation, depletion and amortization | (1,983.2 | ) | (1,858.4 | ) | (1,885.7 | ) | |||||
Net Property, Plant and Equipment | 3,261.2 | 3,011.0 | 3,098.4 | ||||||||
Investment in unconsolidated affiliate | 26.8 | 27.6 | 27.3 | ||||||||
Noncurrent regulatory assets | 21.7 | 21.9 | 21.0 | ||||||||
Other noncurrent assets | 44.5 | 47.7 | 50.7 | ||||||||
TOTAL ASSETS | $ | 3,582.4 | $ | 3,328.4 | $ | 3,532.8 | |||||
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | 5.4 | $ | 9.6 | $ | — | |||||
Short-term debt | 263.0 | 278.0 | 219.0 | ||||||||
Accounts payable and accrued expenses | 215.6 | 206.8 | 242.9 | ||||||||
Current regulatory liabilities | 4.3 | 3.2 | 15.4 | ||||||||
Current portion of long-term debt and capital lease obligation | 109.2 | 25.0 | 91.5 | ||||||||
Total Current Liabilities | 597.5 | 522.6 | 568.8 | ||||||||
Long-term debt and capital lease obligation, less current portion | 988.9 | 881.4 | 993.0 | ||||||||
Deferred income taxes | 555.9 | 548.5 | 500.2 | ||||||||
Asset retirement obligations | 66.3 | 64.5 | 63.8 | ||||||||
Defined benefit pension plan and other postretirement benefits | 266.7 | 148.2 | 309.7 | ||||||||
Customer contributions-in-aid-of-construction | 30.4 | 33.8 | 26.6 | ||||||||
Regulatory and other noncurrent liabilities | 39.3 | 35.4 | 37.2 | ||||||||
COMMON SHAREHOLDERS' EQUITY | |||||||||||
Common stock | 457.8 | 508.6 | 514.7 | ||||||||
Retained earnings | 805.5 | 712.2 | 744.9 | ||||||||
Accumulated other comprehensive (loss) | (225.9 | ) | (126.8 | ) | (226.1 | ) | |||||
Total Common Shareholders' Equity | 1,037.4 | 1,094.0 | 1,033.5 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY | $ | 3,582.4 | $ | 3,328.4 | $ | 3,532.8 |
Questar 2012 Form 10-Q | 5 |
9 Months Ended Sept. 30, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 148.2 | $ | 146.3 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 141.3 | 125.5 | |||||
Deferred income taxes | 65.1 | 84.6 | |||||
Share-based compensation | 7.5 | 8.0 | |||||
Net (gain) from asset sales | (5.1 | ) | (0.3 | ) | |||
(Income) from unconsolidated affiliate | (2.8 | ) | (2.9 | ) | |||
Distributions from unconsolidated affiliate and other | 3.7 | 3.2 | |||||
Changes in operating assets and liabilities | 28.1 | 81.5 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 386.0 | 445.9 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (276.1 | ) | (255.2 | ) | |||
Cash used in disposition of assets | (2.5 | ) | (1.8 | ) | |||
Proceeds from disposition of assets | 4.5 | 0.3 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (274.1 | ) | (256.7 | ) | |||
FINANCING ACTIVITIES | |||||||
Common stock issued | 4.7 | 6.4 | |||||
Common stock repurchased | (72.5 | ) | (3.8 | ) | |||
Change in short-term debt | 44.0 | 36.0 | |||||
Long-term debt and capital lease obligation repaid | (25.6 | ) | (182.0 | ) | |||
Long-term debt issuance costs | — | (1.3 | ) | ||||
Checks outstanding in excess of cash balances | 5.4 | 9.6 | |||||
Dividends paid | (87.6 | ) | (81.2 | ) | |||
Tax benefits from share-based compensation | 8.1 | 5.3 | |||||
NET CASH USED IN FINANCING ACTIVITIES | (123.5 | ) | (211.0 | ) | |||
Change in cash and cash equivalents | (11.6 | ) | (21.8 | ) | |||
Beginning cash and cash equivalents | 11.6 | 21.8 | |||||
Ending cash and cash equivalents | $ | — | $ | — | |||
Supplemental Disclosure of Noncash Investing and Financing Transaction: | |||||||
During 2012, Questar incurred a capital lease obligation of $40.8 million in connection with a lease agreement on a new headquarters building. |
Questar 2012 Form 10-Q | 6 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
From unaffiliated customers | $ | 82.5 | $ | 89.8 | $ | 578.7 | $ | 667.7 | $ | 876.5 | $ | 970.4 | |||||||||||
From affiliated company | 0.5 | 0.4 | 2.3 | 2.2 | 3.4 | 2.7 | |||||||||||||||||
Total Revenues | 83.0 | 90.2 | 581.0 | 669.9 | 879.9 | 973.1 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Cost of natural gas sold (excluding operating expenses shown separately) | 44.7 | 52.0 | 356.4 | 450.5 | 551.6 | 656.6 | |||||||||||||||||
Operating and maintenance | 21.4 | 20.8 | 87.2 | 82.6 | 123.1 | 112.6 | |||||||||||||||||
General and administrative | 12.1 | 10.1 | 36.5 | 34.9 | 52.6 | 49.5 | |||||||||||||||||
Depreciation and amortization | 11.4 | 11.1 | 35.0 | 32.9 | 46.6 | 43.5 | |||||||||||||||||
Other taxes | 4.1 | 4.1 | 13.3 | 12.4 | 15.9 | 15.1 | |||||||||||||||||
Total Operating Expenses | 93.7 | 98.1 | 528.4 | 613.3 | 789.8 | 877.3 | |||||||||||||||||
OPERATING INCOME (LOSS) | (10.7 | ) | (7.9 | ) | 52.6 | 56.6 | 90.1 | 95.8 | |||||||||||||||
Interest and other income | 1.4 | 1.4 | 3.8 | 4.3 | 4.9 | 6.1 | |||||||||||||||||
Interest expense | (5.8 | ) | (6.4 | ) | (19.1 | ) | (19.5 | ) | (25.5 | ) | (26.2 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (15.1 | ) | (12.9 | ) | 37.3 | 41.4 | 69.5 | 75.7 | |||||||||||||||
Income taxes | 5.8 | 5.0 | (14.0 | ) | (15.5 | ) | (26.0 | ) | (27.7 | ) | |||||||||||||
NET INCOME (LOSS) | $ | (9.3 | ) | $ | (7.9 | ) | $ | 23.3 | $ | 25.9 | $ | 43.5 | $ | 48.0 |
Questar 2012 Form 10-Q | 7 |
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 5.0 | |||||
Accounts receivable, net | 26.9 | 24.1 | 77.6 | ||||||||
Unbilled gas accounts receivable | 10.5 | 12.3 | 75.2 | ||||||||
Accounts receivable from affiliates | 22.2 | 2.4 | 1.8 | ||||||||
Gas stored underground | 58.4 | 49.6 | 40.3 | ||||||||
Materials and supplies | 13.5 | 12.2 | 12.2 | ||||||||
Current regulatory assets | 52.4 | 38.2 | 26.5 | ||||||||
Prepaid expenses and other | 2.8 | 2.5 | 3.1 | ||||||||
Deferred income taxes - current | — | 3.9 | 5.6 | ||||||||
Total Current Assets | 186.7 | 145.2 | 247.3 | ||||||||
Property, Plant and Equipment | 2,013.6 | 1,879.3 | 1,927.0 | ||||||||
Accumulated depreciation and amortization | (758.6 | ) | (742.2 | ) | (749.6 | ) | |||||
Net Property, Plant and Equipment | 1,255.0 | 1,137.1 | 1,177.4 | ||||||||
Noncurrent regulatory assets | 16.0 | 15.5 | 15.1 | ||||||||
Goodwill | 5.6 | 5.6 | 5.6 | ||||||||
Other noncurrent assets | 2.1 | 2.4 | 2.3 | ||||||||
TOTAL ASSETS | $ | 1,465.4 | $ | 1,305.8 | $ | 1,447.7 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Checks outstanding in excess of cash balances | $ | 2.0 | $ | 3.2 | $ | — | |||||
Notes payable to Questar Corporation | 206.6 | 97.9 | 142.7 | ||||||||
Accounts payable and accrued expenses | 72.8 | 63.6 | 112.3 | ||||||||
Accounts payable to affiliates | 46.2 | 38.6 | 41.9 | ||||||||
Customer advances | 32.2 | 23.8 | 25.0 | ||||||||
Current regulatory liabilities | 1.8 | 1.3 | 14.2 | ||||||||
Deferred income taxes - current | 4.0 | — | — | ||||||||
Current portion of long-term debt | 108.5 | 25.0 | 91.5 | ||||||||
Total Current Liabilities | 474.1 | 253.4 | 427.6 | ||||||||
Long-term debt, less current portion | 234.5 | 343.0 | 276.5 | ||||||||
Deferred income taxes | 270.8 | 250.9 | 259.8 | ||||||||
Customer contributions-in-aid-of-construction | 30.4 | 33.8 | 26.6 | ||||||||
Regulatory and other noncurrent liabilities | 3.8 | 5.2 | 4.8 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 23.0 | 23.0 | 23.0 | ||||||||
Additional paid-in capital | 172.2 | 151.1 | 171.4 | ||||||||
Retained earnings | 256.6 | 245.4 | 258.0 | ||||||||
Total Common Shareholder's Equity | 451.8 | 419.5 | 452.4 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,465.4 | $ | 1,305.8 | $ | 1,447.7 |
Questar 2012 Form 10-Q | 8 |
9 Months Ended Sept. 30, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 23.3 | $ | 25.9 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 38.7 | 36.3 | |||||
Deferred income taxes | 20.6 | 18.0 | |||||
Share-based compensation | 0.9 | 0.8 | |||||
Changes in operating assets and liabilities | 17.6 | 73.2 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 101.1 | 154.2 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (120.8 | ) | (80.4 | ) | |||
Cash used in disposition of assets | (1.8 | ) | (1.5 | ) | |||
Proceeds from disposition of assets | 0.3 | 0.2 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (122.3 | ) | (81.7 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes payable to Questar | 63.9 | (55.7 | ) | ||||
Checks outstanding in excess of cash balances | 2.0 | 3.2 | |||||
Long-term debt repaid | (25.0 | ) | (2.0 | ) | |||
Dividends paid | (24.7 | ) | (22.7 | ) | |||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 16.2 | (77.2 | ) | ||||
Change in cash and cash equivalents | (5.0 | ) | (4.7 | ) | |||
Beginning cash and cash equivalents | 5.0 | 4.7 | |||||
Ending cash and cash equivalents | $ | — | $ | — |
Questar 2012 Form 10-Q | 9 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||
From unaffiliated customers | $ | 49.5 | $ | 50.0 | $ | 150.1 | $ | 148.8 | $ | 198.7 | $ | 200.8 | |||||||||||
From affiliated companies | 18.4 | 18.5 | 55.2 | 55.8 | 73.8 | 74.3 | |||||||||||||||||
Total Revenues | 67.9 | 68.5 | 205.3 | 204.6 | 272.5 | 275.1 | |||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Operating and maintenance | 9.1 | 9.2 | 26.4 | 28.1 | 33.6 | 40.2 | |||||||||||||||||
General and administrative | 12.0 | 9.5 | 36.5 | 33.7 | 49.3 | 43.8 | |||||||||||||||||
Depreciation and amortization | 13.6 | 12.8 | 40.6 | 37.9 | 53.9 | 49.9 | |||||||||||||||||
Other taxes | 2.4 | 2.6 | 7.3 | 8.0 | 9.4 | 10.0 | |||||||||||||||||
Cost of goods sold (excluding operating expenses shown separately) | 0.7 | 0.7 | 1.9 | 2.3 | 2.7 | 3.1 | |||||||||||||||||
Total Operating Expenses | 37.8 | 34.8 | 112.7 | 110.0 | 148.9 | 147.0 | |||||||||||||||||
Net gain from asset sales | 2.5 | 0.2 | 2.6 | 0.3 | 2.6 | 0.9 | |||||||||||||||||
OPERATING INCOME | 32.6 | 33.9 | 95.2 | 94.9 | 126.2 | 129.0 | |||||||||||||||||
Interest and other income | — | 0.2 | 0.3 | 1.2 | — | 1.3 | |||||||||||||||||
Income from unconsolidated affiliate | 1.0 | 1.0 | 2.8 | 2.9 | 3.7 | 3.9 | |||||||||||||||||
Interest expense | (6.6 | ) | (5.6 | ) | (19.8 | ) | (19.5 | ) | (24.8 | ) | (26.5 | ) | |||||||||||
INCOME BEFORE INCOME TAXES | 27.0 | 29.5 | 78.5 | 79.5 | 105.1 | 107.7 | |||||||||||||||||
Income taxes | (9.9 | ) | (10.7 | ) | (28.7 | ) | (28.8 | ) | (38.1 | ) | (39.0 | ) | |||||||||||
NET INCOME | $ | 17.1 | $ | 18.8 | $ | 49.8 | $ | 50.7 | $ | 67.0 | $ | 68.7 |
Questar 2012 Form 10-Q | 10 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income | $ | 17.1 | $ | 18.8 | $ | 49.8 | $ | 50.7 | $ | 67.0 | $ | 68.7 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Interest rate cash flow hedges | 0.2 | (37.0 | ) | 0.4 | (36.2 | ) | (0.6 | ) | (36.2 | ) | |||||||||||||
Income taxes | (0.1 | ) | 13.7 | (0.2 | ) | 13.4 | 0.2 | 13.4 | |||||||||||||||
Net other comprehensive income (loss) | 0.1 | (23.3 | ) | 0.2 | (22.8 | ) | (0.4 | ) | (22.8 | ) | |||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 17.2 | $ | (4.5 | ) | $ | 50.0 | $ | 27.9 | $ | 66.6 | $ | 45.9 |
Questar 2012 Form 10-Q | 11 |
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 0.4 | $ | 3.4 | |||||
Notes receivable from Questar Corporation | 42.0 | — | 8.8 | ||||||||
Accounts receivable, net | 19.8 | 18.8 | 19.1 | ||||||||
Accounts receivable from affiliates | 28.2 | 19.8 | 20.2 | ||||||||
Gas stored underground | 3.7 | — | — | ||||||||
Materials and supplies | 7.0 | 7.2 | 7.4 | ||||||||
Current regulatory assets | 4.4 | 0.1 | 5.2 | ||||||||
Prepaid expenses and other | 1.9 | 1.9 | 4.4 | ||||||||
Deferred income taxes - current | 1.8 | 1.1 | 1.8 | ||||||||
Total Current Assets | 109.2 | 49.3 | 70.3 | ||||||||
Property, Plant and Equipment | 1,821.9 | 1,780.1 | 1,790.4 | ||||||||
Accumulated depreciation and amortization | (618.7 | ) | (579.5 | ) | (586.7 | ) | |||||
Net Property, Plant and Equipment | 1,203.2 | 1,200.6 | 1,203.7 | ||||||||
Investment in unconsolidated affiliate | 26.8 | 27.6 | 27.3 | ||||||||
Goodwill | 4.2 | 4.2 | 4.2 | ||||||||
Regulatory and other noncurrent assets | 9.5 | 9.0 | 10.1 | ||||||||
TOTAL ASSETS | $ | 1,352.9 | $ | 1,290.7 | $ | 1,315.6 | |||||
LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | |||||||||||
Current Liabilities | |||||||||||
Notes payable to Questar | $ | — | $ | 130.3 | $ | — | |||||
Accounts payable and accrued expenses | 66.5 | 70.0 | 31.7 | ||||||||
Accounts payable to affiliates | 3.2 | 3.0 | 5.5 | ||||||||
Current regulatory liabilities | 2.5 | 1.9 | 1.2 | ||||||||
Total Current Liabilities | 72.2 | 205.2 | 38.4 | ||||||||
Long-term debt, less current portion | 458.9 | 280.9 | 459.0 | ||||||||
Deferred income taxes | 201.8 | 195.9 | 201.4 | ||||||||
Regulatory and other noncurrent liabilities | 13.8 | 15.9 | 14.7 | ||||||||
COMMON SHAREHOLDER'S EQUITY | |||||||||||
Common stock | 6.6 | 6.6 | 6.6 | ||||||||
Additional paid-in capital | 347.1 | 345.3 | 345.7 | ||||||||
Retained earnings | 275.7 | 263.7 | 273.2 | ||||||||
Accumulated other comprehensive (loss) | (23.2 | ) | (22.8 | ) | (23.4 | ) | |||||
Total Common Shareholder's Equity | 606.2 | 592.8 | 602.1 | ||||||||
TOTAL LIABILITIES AND COMMON SHAREHOLDER'S EQUITY | $ | 1,352.9 | $ | 1,290.7 | $ | 1,315.6 |
Questar 2012 Form 10-Q | 12 |
9 Months Ended Sept. 30, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 49.8 | $ | 50.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 42.5 | 40.0 | |||||
Deferred income taxes | 5.0 | 29.3 | |||||
Share-based compensation | 1.5 | 1.4 | |||||
Net (gain) from asset sales | (2.6 | ) | (0.3 | ) | |||
(Income) from unconsolidated affiliate | (2.8 | ) | (2.9 | ) | |||
Distributions from unconsolidated affiliate and other | 3.7 | 3.2 | |||||
Changes in operating assets and liabilities | 18.5 | 0.1 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 115.6 | 121.5 | |||||
INVESTING ACTIVITIES | |||||||
Property, plant and equipment | (41.6 | ) | (83.6 | ) | |||
Cash used in disposition of assets | (0.7 | ) | (0.3 | ) | |||
Proceeds from disposition of assets | 4.2 | 0.1 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (38.1 | ) | (83.8 | ) | |||
FINANCING ACTIVITIES | |||||||
Change in notes receivable from Questar | (33.2 | ) | 30.3 | ||||
Change in notes payable to Questar | — | 130.3 | |||||
Long-term debt repaid | — | (180.0 | ) | ||||
Dividends paid | (47.3 | ) | (23.2 | ) | |||
NET CASH USED IN FINANCING ACTIVITIES | (80.5 | ) | (42.6 | ) | |||
Change in cash and cash equivalents | (3.0 | ) | (4.9 | ) | |||
Beginning cash and cash equivalents | 3.4 | 5.3 | |||||
Ending cash and cash equivalents | $ | 0.4 | $ | 0.4 |
Questar 2012 Form 10-Q | 13 |
Questar 2012 Form 10-Q | 14 |
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
Pension and other postretirement benefits | $ | (202.8 | ) | $ | (104.1 | ) | $ | (202.8 | ) | ||
Interest rate cash flow hedges | (23.2 | ) | (22.8 | ) | (23.4 | ) | |||||
Long-term investment | 0.1 | 0.1 | 0.1 | ||||||||
Accumulated other comprehensive (loss) | $ | (225.9 | ) | $ | (126.8 | ) | $ | (226.1 | ) |
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | |||||||||
(in millions) | |||||||||||
Interest rate cash flow hedges | $ | (23.2 | ) | $ | (22.8 | ) | $ | (23.4 | ) | ||
Accumulated other comprehensive (loss) | $ | (23.2 | ) | $ | (22.8 | ) | $ | (23.4 | ) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||
(in millions) | |||||||||||||||||
Weighted-average basic common shares outstanding | 175.4 | 177.5 | 177.0 | 177.3 | 177.2 | 177.1 | |||||||||||
Potential number of shares issuable under the Company's LTSIP | 1.1 | 1.4 | 1.1 | 1.4 | 1.1 | 1.7 | |||||||||||
Weighted-average diluted common shares outstanding | 176.5 | 178.9 | 178.1 | 178.7 | 178.3 | 178.8 |
Questar 2012 Form 10-Q | 15 |
9 Months Ended | |||||||
September 30, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
AROs at beginning of year | $ | 63.8 | $ | 60.9 | |||
Accretion | 2.3 | 2.3 | |||||
Liabilities incurred | 2.2 | 0.9 | |||||
Revisions in estimated cash flows | (1.2 | ) | 2.4 | ||||
Liabilities settled | (0.8 | ) | (2.0 | ) | |||
AROs at September 30, | $ | 66.3 | $ | 64.5 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | — | $ | — | $ | — | $ | — | $ | 11.6 | $ | 11.6 | |||||||||||
Long-term investment | 1 | 15.0 | 15.0 | 14.1 | 14.1 | 14.4 | 14.4 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | 5.4 | 5.4 | 9.6 | 9.6 | — | — | |||||||||||||||||
Short-term debt | 1 | 263.0 | 263.0 | 278.0 | 278.0 | 219.0 | 219.0 | |||||||||||||||||
Long-term debt, including current portion | 2 | 1,057.9 | 1,237.5 | 906.4 | 1,013.9 | 1,084.5 | 1,223.4 |
Questar 2012 Form 10-Q | 16 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | — | $ | — | $ | — | $ | — | $ | 5.0 | $ | 5.0 | |||||||||||
Financial liabilities | ||||||||||||||||||||||||
Checks outstanding in excess of cash balances | 1 | 2.0 | 2.0 | 3.2 | 3.2 | — | — | |||||||||||||||||
Notes payable to Questar | 1 | 206.6 | 206.6 | 97.9 | 97.9 | 142.7 | 142.7 | |||||||||||||||||
Long-term debt, including current portion | 2 | 343.0 | 426.3 | 368.0 | 431.7 | 368.0 | 445.4 |
Hierarchy Level of Fair Value Estimates | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||
Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 3.4 | $ | 3.4 | |||||||||||
Notes receivable from Questar | 1 | 42.0 | 42.0 | — | — | 8.8 | 8.8 | |||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Notes payable to Questar | 1 | — | — | 130.3 | 130.3 | — | — | |||||||||||||||||
Long-term debt | 2 | 458.9 | 547.8 | 280.9 | 329.1 | 459.0 | 519.4 |
Questar 2012 Form 10-Q | 17 |
Questar 2012 Form 10-Q | 18 |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Financial Statement | September 30, | September 30, | September 30, | |||||||||||||||||||||
Instrument and Activity | Location of Gain (Loss) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Fair Value Hedge | ||||||||||||||||||||||||
Questar Corporation | ||||||||||||||||||||||||
Interest rate derivative instrument | ||||||||||||||||||||||||
Realized gain | Interest expense | $ | — | $ | 5.2 | $ | — | $ | 9.1 | $ | 0.7 | $ | 9.1 | |||||||||||
2.75% Notes due 2016 | ||||||||||||||||||||||||
Unrealized loss | Interest expense | — | (5.2 | ) | — | (9.1 | ) | (0.7 | ) | (9.1 | ) | |||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||
Questar Pipeline | ||||||||||||||||||||||||
Interest rate derivative instruments | ||||||||||||||||||||||||
Deferrals of effective portions | OCI | — | (37.0 | ) | — | (36.2 | ) | (1.1 | ) | (36.2 | ) | |||||||||||||
Losses reclassified from AOCI into earnings for effective portions | Interest expense | (0.2 | ) | — | (0.4 | ) | — | (0.5 | ) | — |
Instrument | Balance Sheet Location | Sept. 30, 2012 | Sept. 30, 2011 | Dec. 31, 2011 | ||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Questar Corporation | ||||||||||||
Interest rate derivative instrument | Prepaid expenses and other | $ | — | $ | 0.5 | $ | 1.1 | |||||
Interest rate derivative instrument | Other noncurrent assets | — | 7.7 | 7.8 | ||||||||
Consolidated total - derivative assets | $ | — | $ | 8.2 | $ | 8.9 | ||||||
Liabilities | ||||||||||||
Questar Pipeline | ||||||||||||
Interest rate derivative instruments | Accounts payable and accrued expenses | $ | — | $ | 36.2 | $ | — | |||||
Consolidated total - derivative liabilities | $ | — | $ | 36.2 | $ | — |
Questar 2012 Form 10-Q | 19 |
Options Outstanding | Price Range | Weighted-average Price | ||||||||||||
Balance at December 31, 2011 | 1,773,635 | $ | 3.70 | - | $ | 17.35 | $ | 8.54 | ||||||
Exercised | (466,040 | ) | 3.70 | - | 13.10 | 5.34 | ||||||||
Balance at September 30, 2012 | 1,307,595 | $ | 4.37 | - | $ | 17.35 | $ | 9.68 |
Options Outstanding | Options Exercisable | Unvested Options | ||||||||||||||||||||||||||||
Range of exercise prices | Number outstanding at Sept. 30, 2012 | Weighted-average remaining term in years | Weighted-average exercise price | Number exercisable at Sept. 30, 2012 | Weighted-average exercise price | Number unvested at Sept. 30, 2012 | Weighted- average exercise price | |||||||||||||||||||||||
$ | 4.37 | - | $ | 7.84 | 489,888 | 0.7 | $ | 5.07 | 489,888 | $ | 5.07 | — | $ | — | ||||||||||||||||
11.40 | - | 12.43 | 489,174 | 2.4 | 11.72 | 489,174 | 11.72 | — | — | |||||||||||||||||||||
13.10 | - | 17.35 | 328,533 | 3.8 | 13.52 | 299,135 | 13.56 | 29,398 | 13.10 | |||||||||||||||||||||
1,307,595 | 2.1 | $ | 9.68 | 1,278,197 | $ | 9.60 | 29,398 | $ | 13.10 |
Restricted Shares Outstanding | Price Range | Weighted-average Price | ||||||||||||
Balance at December 31, 2011 | 771,550 | $ | 11.40 | - | $ | 17.97 | $ | 16.22 | ||||||
Granted | 358,078 | 19.39 | - | 20.90 | 19.39 | |||||||||
Distributed | (325,567 | ) | 11.40 | - | 19.39 | 16.03 | ||||||||
Forfeited | (9,321 | ) | 13.10 | - | 19.39 | 17.76 | ||||||||
Balance at September 30, 2012 | 794,740 | $ | 13.10 | - | $ | 20.90 | $ | 17.71 |
Questar 2012 Form 10-Q | 20 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues from Unaffiliated Customers | |||||||||||||||||||||||
Questar Gas | $ | 82.5 | $ | 89.8 | $ | 578.7 | $ | 667.7 | $ | 876.5 | $ | 970.4 | |||||||||||
Wexpro | 9.8 | 6.9 | 27.1 | 23.1 | 35.5 | 31.1 | |||||||||||||||||
Questar Pipeline | 49.5 | 50.0 | 150.1 | 148.8 | 198.7 | 200.8 | |||||||||||||||||
Total | $ | 141.8 | $ | 146.7 | $ | 755.9 | $ | 839.6 | $ | 1,110.7 | $ | 1,202.3 | |||||||||||
Revenues from Affiliated Companies | |||||||||||||||||||||||
Questar Gas | $ | 0.5 | $ | 0.4 | $ | 2.3 | $ | 2.2 | $ | 3.4 | $ | 2.7 | |||||||||||
Wexpro | 69.3 | 64.4 | 204.6 | 186.4 | 271.8 | 247.5 | |||||||||||||||||
Questar Pipeline | 18.4 | 18.5 | 55.2 | 55.8 | 73.8 | 74.3 | |||||||||||||||||
Total | $ | 88.2 | $ | 83.3 | $ | 262.1 | $ | 244.4 | $ | 349.0 | $ | 324.5 | |||||||||||
Operating Income (Loss) | |||||||||||||||||||||||
Questar Gas | $ | (10.7 | ) | $ | (7.9 | ) | $ | 52.6 | $ | 56.6 | $ | 90.1 | $ | 95.8 | |||||||||
Wexpro | 41.0 | 37.7 | 117.9 | 108.3 | 155.3 | 143.1 | |||||||||||||||||
Questar Pipeline | 32.6 | 33.9 | 95.2 | 94.9 | 126.2 | 129.0 | |||||||||||||||||
Corporate and other | 0.7 | 0.1 | 1.4 | 0.5 | 2.1 | 0.2 | |||||||||||||||||
Total | $ | 63.6 | $ | 63.8 | $ | 267.1 | $ | 260.3 | $ | 373.7 | $ | 368.1 | |||||||||||
Net Income (Loss) | |||||||||||||||||||||||
Questar Gas | $ | (9.3 | ) | $ | (7.9 | ) | $ | 23.3 | $ | 25.9 | $ | 43.5 | $ | 48.0 | |||||||||
Wexpro | 26.4 | 25.6 | 76.5 | 71.6 | 100.1 | 94.3 | |||||||||||||||||
Questar Pipeline | 17.1 | 18.8 | 49.8 | 50.7 | 67.0 | 68.7 | |||||||||||||||||
Corporate and other | (0.4 | ) | (0.4 | ) | (1.4 | ) | (1.9 | ) | (0.8 | ) | (1.0 | ) | |||||||||||
Total | $ | 33.8 | $ | 36.1 | $ | 148.2 | $ | 146.3 | $ | 209.8 | $ | 210.0 |
Questar 2012 Form 10-Q | 21 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 3.2 | $ | 2.2 | $ | 9.7 | $ | 6.6 | $ | 12.4 | $ | 8.7 | |||||||||||
Interest cost | 7.8 | 7.1 | 23.3 | 21.3 | 30.5 | 27.7 | |||||||||||||||||
Expected return on plan assets | (8.0 | ) | (6.3 | ) | (23.7 | ) | (18.9 | ) | (30.8 | ) | (24.9 | ) | |||||||||||
Prior service and other costs | 0.3 | 0.3 | 0.8 | 0.9 | 1.0 | 1.1 | |||||||||||||||||
Recognized net actuarial loss | 5.4 | 2.6 | 16.2 | 7.8 | 20.5 | 9.7 | |||||||||||||||||
Curtailment costs | 0.1 | — | 0.3 | — | 1.1 | 1.0 | |||||||||||||||||
Pension expense | $ | 8.8 | $ | 5.9 | $ | 26.6 | $ | 17.7 | $ | 34.7 | $ | 23.3 |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||
September 30, | September 30, | September 30, | |||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.5 | $ | 0.5 | $ | 0.5 | $ | 0.6 | |||||||||||
Interest cost | 1.0 | 1.1 | 2.8 | 3.3 | 3.7 | 4.3 | |||||||||||||||||
Expected return on plan assets | (0.6 | ) | (0.7 | ) | (1.7 | ) | (2.0 | ) | (2.3 | ) | (2.6 | ) | |||||||||||
Amortization of transition obligation | 0.4 | 0.4 | 1.2 | 1.3 | 1.8 | 1.8 | |||||||||||||||||
Amortization of losses | 0.5 | 0.2 | 1.6 | 0.5 | 1.4 | 0.6 | |||||||||||||||||
Accretion of regulatory liability | 0.2 | 0.2 | 0.6 | 0.6 | 0.8 | 0.8 | |||||||||||||||||
Curtailment costs | — | — | — | — | — | 0.3 | |||||||||||||||||
Postretirement benefits expense | $ | 1.7 | $ | 1.4 | $ | 5.0 | $ | 4.2 | $ | 5.9 | $ | 5.8 |
Questar 2012 Form 10-Q | 22 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||||||||||||
(in millions, except per-share amounts) | |||||||||||||||||||||||||||||||||||
Questar Gas | $ | (9.3 | ) | $ | (7.9 | ) | $ | (1.4 | ) | $ | 23.3 | $ | 25.9 | $ | (2.6 | ) | $ | 43.5 | $ | 48.0 | $ | (4.5 | ) | ||||||||||||
Wexpro | 26.4 | 25.6 | 0.8 | 76.5 | 71.6 | 4.9 | 100.1 | 94.3 | 5.8 | ||||||||||||||||||||||||||
Questar Pipeline | 17.1 | 18.8 | (1.7 | ) | 49.8 | 50.7 | (0.9 | ) | 67.0 | 68.7 | (1.7 | ) | |||||||||||||||||||||||
Corporate and other | (0.4 | ) | (0.4 | ) | — | (1.4 | ) | (1.9 | ) | 0.5 | (0.8 | ) | (1.0 | ) | 0.2 | ||||||||||||||||||||
Net income | $ | 33.8 | $ | 36.1 | $ | (2.3 | ) | $ | 148.2 | $ | 146.3 | $ | 1.9 | $ | 209.8 | $ | 210.0 | $ | (0.2 | ) | |||||||||||||||
Earnings per share - diluted | $ | 0.19 | $ | 0.20 | $ | (0.01 | ) | $ | 0.83 | $ | 0.82 | $ | 0.01 | $ | 1.18 | $ | 1.17 | $ | 0.01 | ||||||||||||||||
Average diluted shares | 176.5 | 178.9 | (2.4 | ) | 178.1 | 178.7 | (0.6 | ) | 178.3 | 178.8 | (0.5 | ) |
Questar 2012 Form 10-Q | 23 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 67.0 | $ | 70.9 | $ | (3.9 | ) | $ | 528.4 | $ | 613.8 | $ | (85.4 | ) | $ | 807.6 | $ | 900.8 | $ | (93.2 | ) | ||||||||||||||
Industrial sales | 5.8 | 7.4 | (1.6 | ) | 18.6 | 21.9 | (3.3 | ) | 26.4 | 29.6 | (3.2 | ) | |||||||||||||||||||||||
Transportation for industrial customers | 3.2 | 3.1 | 0.1 | 8.7 | 8.4 | 0.3 | 11.6 | 9.9 | 1.7 | ||||||||||||||||||||||||||
Service | 0.9 | 1.1 | (0.2 | ) | 3.6 | 4.1 | (0.5 | ) | 4.6 | 4.7 | (0.1 | ) | |||||||||||||||||||||||
Other | 6.1 | 7.7 | (1.6 | ) | 21.7 | 21.7 | — | 29.7 | 28.1 | 1.6 | |||||||||||||||||||||||||
Total revenues | 83.0 | 90.2 | (7.2 | ) | 581.0 | 669.9 | (88.9 | ) | 879.9 | 973.1 | (93.2 | ) | |||||||||||||||||||||||
Cost of natural gas sold | 44.7 | 52.0 | (7.3 | ) | 356.4 | 450.5 | (94.1 | ) | 551.6 | 656.6 | (105.0 | ) | |||||||||||||||||||||||
Margin | 38.3 | 38.2 | 0.1 | 224.6 | 219.4 | 5.2 | 328.3 | 316.5 | 11.8 | ||||||||||||||||||||||||||
Other Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 21.4 | 20.8 | 0.6 | 87.2 | 82.6 | 4.6 | 123.1 | 112.6 | 10.5 | ||||||||||||||||||||||||||
General and administrative | 12.1 | 10.1 | 2.0 | 36.5 | 34.9 | 1.6 | 52.6 | 49.5 | 3.1 | ||||||||||||||||||||||||||
Depreciation and amortization | 11.4 | 11.1 | 0.3 | 35.0 | 32.9 | 2.1 | 46.6 | 43.5 | 3.1 | ||||||||||||||||||||||||||
Other taxes | 4.1 | 4.1 | — | 13.3 | 12.4 | 0.9 | 15.9 | 15.1 | 0.8 | ||||||||||||||||||||||||||
Total Other Operating Expenses | 49.0 | 46.1 | 2.9 | 172.0 | 162.8 | 9.2 | 238.2 | 220.7 | 17.5 | ||||||||||||||||||||||||||
OPERATING INCOME (LOSS) | (10.7 | ) | (7.9 | ) | (2.8 | ) | 52.6 | 56.6 | (4.0 | ) | 90.1 | 95.8 | (5.7 | ) | |||||||||||||||||||||
Interest and other income | 1.4 | 1.4 | — | 3.8 | 4.3 | (0.5 | ) | 4.9 | 6.1 | (1.2 | ) | ||||||||||||||||||||||||
Interest expense | (5.8 | ) | (6.4 | ) | 0.6 | (19.1 | ) | (19.5 | ) | 0.4 | (25.5 | ) | (26.2 | ) | 0.7 | ||||||||||||||||||||
Income taxes | 5.8 | 5.0 | 0.8 | (14.0 | ) | (15.5 | ) | 1.5 | (26.0 | ) | (27.7 | ) | 1.7 | ||||||||||||||||||||||
NET INCOME (LOSS) | $ | (9.3 | ) | $ | (7.9 | ) | $ | (1.4 | ) | $ | 23.3 | $ | 25.9 | $ | (2.6 | ) | $ | 43.5 | $ | 48.0 | $ | (4.5 | ) | ||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Natural gas volumes (MMdth) | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | 7.3 | 7.7 | (0.4 | ) | 64.3 | 75.9 | (11.6 | ) | 101.7 | 110.6 | (8.9 | ) | |||||||||||||||||||||||
Industrial sales | 1.2 | 1.4 | (0.2 | ) | 3.6 | 3.7 | (0.1 | ) | 4.9 | 4.8 | 0.1 | ||||||||||||||||||||||||
Transportation for industrial customers | 15.4 | 13.0 | 2.4 | 45.8 | 38.3 | 7.5 | 60.0 | 53.2 | 6.8 | ||||||||||||||||||||||||||
Total industrial | 16.6 | 14.4 | 2.2 | 49.4 | 42.0 | 7.4 | 64.9 | 58.0 | 6.9 | ||||||||||||||||||||||||||
Total deliveries | 23.9 | 22.1 | 1.8 | 113.7 | 117.9 | (4.2 | ) | 166.6 | 168.6 | (2.0 | ) | ||||||||||||||||||||||||
Natural gas revenue (per dth) | |||||||||||||||||||||||||||||||||||
Residential and commercial sales | $ | 9.27 | $ | 9.19 | $ | 0.08 | $ | 8.22 | $ | 8.09 | $ | 0.13 | $ | 7.94 | $ | 8.15 | $ | (0.21 | ) | ||||||||||||||||
Industrial sales | 4.93 | 5.89 | (0.96 | ) | 5.16 | 6.02 | (0.86 | ) | 5.40 | 6.14 | (0.74 | ) | |||||||||||||||||||||||
Transportation for industrial customers | 0.21 | 0.24 | (0.03 | ) | 0.19 | 0.22 | (0.03 | ) | 0.19 | 0.19 | — | ||||||||||||||||||||||||
Colder (warmer) than normal temperatures | (90%) | (98%) | 8% | (16%) | 11% | (27%) | (9%) | 4% | (13%) | ||||||||||||||||||||||||||
Temperature-adjusted usage per customer (dth) | 7.1 | 7.6 | (0.5 | ) | 73.5 | 74.6 | (1.1 | ) | 110.0 | 110.7 | (0.7 | ) | |||||||||||||||||||||||
Customers at Sept. 30, (in thousands) | 925 | 913 | 12 |
Questar 2012 Form 10-Q | 24 |
3 Months 2012 vs. 2011 | 9 Months 2012 vs. 2011 | 12 Months 2012 vs. 2011 | |||||||||
(in millions) | |||||||||||
Customer growth | $ | 0.4 | $ | 2.4 | $ | 3.5 | |||||
Feeder line cost recovery | 0.5 | 3.5 | 5.7 | ||||||||
Demand-side management cost recovery | (0.6 | ) | 1.9 | 4.4 | |||||||
Recovery of gas-cost portion of bad-debt costs | 0.3 | (1.4 | ) | (2.0 | ) | ||||||
Other | (0.5 | ) | (1.2 | ) | 0.2 | ||||||
Increase | $ | 0.1 | $ | 5.2 | $ | 11.8 |
Questar 2012 Form 10-Q | 25 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Operator service fee | $ | 70.3 | $ | 64.6 | $ | 5.7 | $ | 204.2 | $ | 187.0 | $ | 17.2 | $ | 270.7 | $ | 248.9 | $ | 21.8 | |||||||||||||||||
Oil and NGL sales | 8.8 | 7.0 | 1.8 | 27.3 | 22.5 | 4.8 | 36.1 | 29.6 | 6.5 | ||||||||||||||||||||||||||
Other | — | (0.3 | ) | 0.3 | 0.2 | — | 0.2 | 0.5 | 0.1 | 0.4 | |||||||||||||||||||||||||
Total Revenues | 79.1 | 71.3 | 7.8 | 231.7 | 209.5 | 22.2 | 307.3 | 278.6 | 28.7 | ||||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 6.3 | 5.4 | 0.9 | 19.7 | 16.0 | 3.7 | 26.0 | 21.9 | 4.1 | ||||||||||||||||||||||||||
General and administrative | 7.1 | 5.3 | 1.8 | 20.0 | 17.1 | 2.9 | 27.1 | 22.4 | 4.7 | ||||||||||||||||||||||||||
Production and other taxes | 4.2 | 6.4 | (2.2 | ) | 16.1 | 18.5 | (2.4 | ) | 23.2 | 24.5 | (1.3 | ) | |||||||||||||||||||||||
Depreciation, depletion and amortization | 20.0 | 16.1 | 3.9 | 58.2 | 47.4 | 10.8 | 74.7 | 63.7 | 11.0 | ||||||||||||||||||||||||||
Oil income sharing | 0.5 | 0.4 | 0.1 | 2.3 | 2.2 | 0.1 | 3.4 | 2.7 | 0.7 | ||||||||||||||||||||||||||
Total Operating Expenses | 38.1 | 33.6 | 4.5 | 116.3 | 101.2 | 15.1 | 154.4 | 135.2 | 19.2 | ||||||||||||||||||||||||||
Net gain (loss) from asset sales | — | — | — | 2.5 | — | 2.5 | 2.4 | (0.3 | ) | 2.7 | |||||||||||||||||||||||||
OPERATING INCOME | 41.0 | 37.7 | 3.3 | 117.9 | 108.3 | 9.6 | 155.3 | 143.1 | 12.2 | ||||||||||||||||||||||||||
Interest and other income | 0.3 | 2.2 | (1.9 | ) | 1.8 | 3.4 | (1.6 | ) | 2.6 | 4.2 | (1.6 | ) | |||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | (0.1 | ) | 0.1 | |||||||||||||||||||||||||
Income taxes | (14.9 | ) | (14.3 | ) | (0.6 | ) | (43.2 | ) | (40.1 | ) | (3.1 | ) | (57.8 | ) | (52.9 | ) | (4.9 | ) | |||||||||||||||||
NET INCOME | $ | 26.4 | $ | 25.6 | $ | 0.8 | $ | 76.5 | $ | 71.6 | $ | 4.9 | $ | 100.1 | $ | 94.3 | $ | 5.8 | |||||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Production volumes | |||||||||||||||||||||||||||||||||||
Natural gas (Bcf) | 14.6 | 12.6 | 2.0 | 43.9 | 37.1 | 6.8 | 57.3 | 49.8 | 7.5 | ||||||||||||||||||||||||||
Oil and NGL (Mbbl) | 164 | 105 | 59 | 483 | 310 | 173 | 640 | 423 | 217 | ||||||||||||||||||||||||||
Oil and NGL average sales price (per bbl) | $ | 77.70 | $ | 75.95 | $ | 1.75 | $ | 82.10 | $ | 82.43 | $ | (0.33 | ) | $ | 81.90 | $ | 79.48 | $ | 2.42 | ||||||||||||||||
Investment base at Sept. 30, (in millions) | $ | 530.0 | $ | 464.2 | $ | 65.8 |
Questar 2012 Form 10-Q | 26 |
12 Months Ended Sept. 30, | |||||||
2012 | 2011 | ||||||
(in millions) | |||||||
Beginning investment base | $ | 464.2 | $ | 445.6 | |||
Successful development wells | 171.4 | 97.1 | |||||
Depreciation, depletion and amortization | (71.1 | ) | (59.8 | ) | |||
Deferred income taxes | (34.5 | ) | (18.7 | ) | |||
Ending investment base | $ | 530.0 | $ | 464.2 |
Questar 2012 Form 10-Q | 27 |
3 Months Ended Sept. 30, | 9 Months Ended Sept. 30, | 12 Months Ended Sept. 30, | |||||||||||||||||||||||||||||||||
2012 | 2011 | Change | 2012 | 2011 | Change | 2012 | 2011 | Change | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Net Income | |||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Transportation | $ | 48.5 | $ | 49.2 | $ | (0.7 | ) | $ | 145.7 | $ | 146.0 | $ | (0.3 | ) | $ | 194.9 | $ | 193.2 | $ | 1.7 | |||||||||||||||
Storage | 9.5 | 9.4 | 0.1 | 28.7 | 28.6 | 0.1 | 38.4 | 38.0 | 0.4 | ||||||||||||||||||||||||||
NGL sales - transportation | 1.3 | 2.8 | (1.5 | ) | 5.3 | 7.6 | (2.3 | ) | 6.6 | 11.1 | (4.5 | ) | |||||||||||||||||||||||
NGL sales - field services | 2.4 | 2.0 | 0.4 | 7.1 | 6.8 | 0.3 | 8.6 | 10.0 | (1.4 | ) | |||||||||||||||||||||||||
Energy services | 3.8 | 3.9 | (0.1 | ) | 11.3 | 12.1 | (0.8 | ) | 15.4 | 15.6 | (0.2 | ) | |||||||||||||||||||||||
Other | 2.4 | 1.2 | 1.2 | 7.2 | 3.5 | 3.7 | 8.6 | 7.2 | 1.4 | ||||||||||||||||||||||||||
Total Revenues | 67.9 | 68.5 | (0.6 | ) | 205.3 | 204.6 | 0.7 | 272.5 | 275.1 | (2.6 | ) | ||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||
Operating and maintenance | 9.1 | 9.2 | (0.1 | ) | 26.4 | 28.1 | (1.7 | ) | 33.6 | 40.2 | (6.6 | ) | |||||||||||||||||||||||
General and administrative | 12.0 | 9.5 | 2.5 | 36.5 | 33.7 | 2.8 | 49.3 | 43.8 | 5.5 | ||||||||||||||||||||||||||
Depreciation and amortization | 13.6 | 12.8 | 0.8 | 40.6 | 37.9 | 2.7 | 53.9 | 49.9 | 4.0 | ||||||||||||||||||||||||||
Other taxes | 2.4 | 2.6 | (0.2 | ) | 7.3 | 8.0 | (0.7 | ) | 9.4 | 10.0 | (0.6 | ) | |||||||||||||||||||||||
Cost of goods sold | 0.7 | 0.7 | — | 1.9 | 2.3 | (0.4 | ) | 2.7 | 3.1 | (0.4 | ) | ||||||||||||||||||||||||
Total Operating Expenses | 37.8 | 34.8 | 3.0 | 112.7 | 110.0 | 2.7 | 148.9 | 147.0 | 1.9 | ||||||||||||||||||||||||||
Net gain from asset sales | 2.5 | 0.2 | 2.3 | 2.6 | 0.3 | 2.3 | 2.6 | 0.9 | 1.7 | ||||||||||||||||||||||||||
OPERATING INCOME | 32.6 | 33.9 | (1.3 | ) | 95.2 | 94.9 | 0.3 | 126.2 | 129.0 | (2.8 | ) | ||||||||||||||||||||||||
Interest and other income | — | 0.2 | (0.2 | ) | 0.3 | 1.2 | (0.9 | ) | — | 1.3 | (1.3 | ) | |||||||||||||||||||||||
Income from unconsolidated affiliate | 1.0 | 1.0 | — | 2.8 | 2.9 | (0.1 | ) | 3.7 | 3.9 | (0.2 | ) | ||||||||||||||||||||||||
Interest expense | (6.6 | ) | (5.6 | ) | (1.0 | ) | (19.8 | ) | (19.5 | ) | (0.3 | ) | (24.8 | ) | (26.5 | ) | 1.7 | ||||||||||||||||||
Income taxes | (9.9 | ) | (10.7 | ) | 0.8 | (28.7 | ) | (28.8 | ) | 0.1 | (38.1 | ) | (39.0 | ) | 0.9 | ||||||||||||||||||||
NET INCOME | $ | 17.1 | $ | 18.8 | $ | (1.7 | ) | $ | 49.8 | $ | 50.7 | $ | (0.9 | ) | $ | 67.0 | $ | 68.7 | $ | (1.7 | ) | ||||||||||||||
Operating Statistics | |||||||||||||||||||||||||||||||||||
Natural gas-transportation volumes (MMdth) | |||||||||||||||||||||||||||||||||||
For unaffiliated customers | 202.1 | 171.9 | 30.2 | 581.4 | 493.5 | 87.9 | 753.7 | 645.4 | 108.3 | ||||||||||||||||||||||||||
For Questar Gas | 17.5 | 16.6 | 0.9 | 83.8 | 88.4 | (4.6 | ) | 112.3 | 111.0 | 1.3 | |||||||||||||||||||||||||
Total transportation | 219.6 | 188.5 | 31.1 | 665.2 | 581.9 | 83.3 | 866.0 | 756.4 | 109.6 | ||||||||||||||||||||||||||
Transportation revenue (per dth) | $ | 0.22 | $ | 0.26 | $ | (0.04 | ) | $ | 0.22 | $ | 0.25 | $ | (0.03 | ) | $ | 0.23 | $ | 0.26 | $ | (0.03 | ) | ||||||||||||||
Net firm-daily transportation demand at Sept. 30, (in Mdth) | 4,946 | 4,983 | (37 | ) | |||||||||||||||||||||||||||||||
Natural gas processing | |||||||||||||||||||||||||||||||||||
NGL sales (Mbbl) | 69 | 65 | 4 | 201 | 195 | 6 | 239 | 301 | (62 | ) | |||||||||||||||||||||||||
NGL sales price (per bbl) | $ | 55.73 | $ | 73.60 | $ | (17.87 | ) | $ | 62.13 | $ | 73.78 | $ | (11.65 | ) | $ | 63.95 | $ | 69.88 | $ | (5.93 | ) |
Questar 2012 Form 10-Q | 28 |
Questar 2012 Form 10-Q | 29 |
9 Months Ended Sept. 30, | |||||||||||
2012 | 2011 | Change | |||||||||
(in millions) | |||||||||||
Net income | $ | 148.2 | $ | 146.3 | $ | 1.9 | |||||
Noncash adjustments to net income | 209.7 | 218.1 | (8.4 | ) | |||||||
Changes in operating assets and liabilities | 28.1 | 81.5 | (53.4 | ) | |||||||
Net cash provided by operating activities | $ | 386.0 | $ | 445.9 | $ | (59.9 | ) |
9 Months Ended Sept. 30, | Forecast 12 Months Ended December 31, | ||||||||||
2012 | 2011 | 2012 | |||||||||
(in millions) | |||||||||||
Questar Gas | $ | 120.8 | $ | 80.4 | $ | 155 | |||||
Wexpro | 110.2 | 89.8 | 130 | ||||||||
Questar Pipeline | 41.6 | 83.6 | 55 | ||||||||
Corporate and other | 3.5 | 1.4 | 10 | ||||||||
Total capital expenditures | $ | 276.1 | $ | 255.2 | $ | 350 |
Questar 2012 Form 10-Q | 30 |
Questar 2012 Form 10-Q | 31 |
- | the risk factors discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2011; |
- | general economic conditions, including the performance of financial markets and interest rates; |
- | changes in energy commodity prices; |
- | changes in industry trends; |
- | changes in laws or regulations; and |
- | other factors, most of which are beyond the Company's control. |
Questar 2012 Form 10-Q | 32 |
2012 | Number of Shares Purchased(1) | Average Price per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans(2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan | |||||||||
Month #1 July 1, 2012 through July 31, 2012 | 166 | $ | 20.62 | — | $ | 44,642,388 | |||||||
Month #2 August 1, 2012 through August 31, 2012 | 605,996 | $ | 20.33 | 599,763 | $ | 32,443,650 | |||||||
Month #3 September 1, 2012 through September 30, 2012 | 320,680 | $ | 20.08 | 200,000 | $ | 28,423,920 | |||||||
Totals | 926,842 | $ | 20.24 | 799,763 |
Questar 2012 Form 10-Q | 33 |
Questar 2012 Form 10-Q | 34 |
Exhibits No. | Exhibits |
EXHIBIT 4 - INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES | |
Questar Corporation | |
4.1 | Second Amendment to Multi-Year Revolving Credit Agreement |
EXHIBIT 10 - MATERIAL CONTRACTS | |
Questar Gas Company | |
10.1 | Wexpro II Agreement (Item 1.01 of Questar Gas Company's Current Report on Form 8-K filed September 12, 2012). |
EXHIBIT 12 - STATEMENTS RE: COMPUTATION OF RATIOS | |
Questar Corporation | |
12.1. | Questar Corporation ratio of earnings to fixed charges. |
Questar Gas Company | |
12.2. | Questar Gas Company ratio of earnings to fixed charges. |
Questar Pipeline Company | |
12.3. | Questar Pipeline Company ratio of earnings to fixed charges. |
EXHIBIT 31 - SECTION 302 CERTIFICATIONS | |
Questar Corporation | |
31.1. | Questar Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2. | Questar Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Gas Company | |
31.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Pipeline Company | |
31.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
EXHIBIT 32 - SECTION 906 CERTIFICATIONS | |
Questar Corporation | |
32.1. | Questar Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.2. | Questar Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Gas Company | |
32.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Pipeline Company | |
32.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar 2012 Form 10-Q | 35 |
EXHIBIT 101 - INTERACTIVE DATA FILE | |
101.INS | XBRL Instance. |
101.SCH | XBRL Taxonomy. |
101.CAL | XBRL Calculations. |
101.DEF | XBRL Definitions. |
101.LAB | XBRL Labels. |
101.PRE | XBRL Presentation. |
Questar 2012 Form 10-Q | 36 |
QUESTAR CORPORATION QUESTAR GAS COMPANY QUESTAR PIPELINE COMPANY (Registrants) | |
October 31, 2012 | /s/Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer, Questar and Questar Gas |
October 31, 2012 | /s/R. Allan Bradley R. Allan Bradley President and Chief Executive Officer, Questar Pipeline |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer, Questar, Questar Gas and Questar Pipeline |
Questar 2012 Form 10-Q | 37 |
Exhibits No. | Exhibits |
EXHIBIT 12 - STATEMENTS RE: COMPUTATION OF RATIOS | |
Questar Corporation | |
12.1. | Questar Corporation ratio of earnings to fixed charges. |
Questar Pipeline Company | |
12.2. | Questar Gas Company ratio of earnings to fixed charges. |
Questar Gas Company | |
12.3. | Questar Pipeline Company ratio of earnings to fixed charges. |
EXHIBIT 31 - SECTION 302 CERTIFICATIONS | |
Questar Corporation | |
31.1. | Questar Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2. | Questar Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Gas Company | |
31.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
Questar Pipeline Company | |
31.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
EXHIBIT 32 - SECTION 906 CERTIFICATIONS | |
Questar Corporation | |
32.1. | Questar Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.2. | Questar Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Gas Company | |
32.3. | Questar Gas Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.4. | Questar Gas Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
Questar Pipeline Company | |
32.5. | Questar Pipeline Chief Executive Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
32.6. | Questar Pipeline Chief Financial Officer Certification pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |
EXHIBIT 101 - INTERACTIVE DATA FILE | |
101.INS | XBRL Instance. |
101.SCH | XBRL Taxonomy. |
101.CAL | XBRL Calculations. |
101.DEF | XBRL Definitions. |
101.LAB | XBRL Labels. |
101.PRE | XBRL Presentation. |
Questar 2012 Form 10-Q | 38 |
QUESTAR CORPORATION | ||
By: | /s/Kevin W. Hadlock | |
Kevin W. Hadlock Executive Vice President & CFO | ||
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent | ||
By: | ||
Name: Title: | ||
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent | ||
By: | ||
Name: Title: |
QUESTAR CORPORATION | ||
By: | ||
Kevin W. Hadlock Executive Vice President & CFO | ||
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent | ||
By: | /s/Leanne S. Phillips | |
Name: Leanne S. Phillips Title: Director | ||
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender | ||
By: | /s/Leanne S. Phillips | |
Name: Leanne S. Phillips Title: Director |
BARCLAYS BANK PLC, as a Lender | ||
By: | /s/Michael J. Mozer | |
Name: Michael J. Mozer Title: Vice President | ||
DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender | ||
By: | /s/Ming K. Chu | |
Name: Ming K. Chu Title: Vice President | ||
By: | /s/Virginia Cosenza | |
Name: Virginia Cosenza Title: Vice President | ||
JPMORGAN CHASE BANK, N.A., as a Lender | ||
By: | /s/John E. Zur III | |
Name: John E. Zur III Title: Authorized Officer | ||
COMPASS BANK, as a Lender | ||
By: | /s/James Neblett | |
Name: James Neblett Title: Vice President | ||
THE ROYAL BANK OF SCOTLAND plc, as a Lender | ||
By: | /s/Tyler J. McCarthy | |
Name: Tyler J. McCarthy Title: Director | ||
U.S. BANK NATIONAL ASSOCIATION, as a Lender | ||
By: | /s/Patrick Jeffrey | |
Name: Patrick Jeffrey Title: Vice President | ||
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender | ||
By: | /s/Sherwin Brandford | |
Name: Sherwin Brandford Title: Vice President | ||
THE BANK OF NEW YORK MELLON, as a Lender | ||
By: | /s/Mark W. Rogers | |
Name: Mark W. Rogers Title: Vice President | ||
MORGAN STANLEY BANK, N.A., as a Lender | ||
By: | /s/John Durland | |
Name: John Durland Title: Authorizws Signatory | ||
(a) | targeted and completed in a productive oil reservoir, or |
(a) | Questar Gas shall apply to the Utah and Wyoming Commissions for approval to include under this Agreement any oil and gas property that Wexpro acquires within the Wexpro I development drilling areas. |
(a) | Purchase price and gas pricing assumption; |
(b) | Locations of current and future wells; |
(c) | Historical production and remaining reserves of current wells; |
(d) | Forecasted production/reserves for future wells; |
(e) | Forecasted decline curves for current and future wells; |
(f) | Estimated drilling (capital) costs per well; |
(g) | Estimated operating expenses for current and future wells; |
(h) | Gross working interest and net revenue interest for current and future wells; |
(i) | Estimated production tax per Dth for current and future wells; |
(j) | Estimated gathering/processing cost per Dth for current and future wells; |
(k) | Description of any land lease, title, and legal issues related to real property, including but not limited to a description of the terms under which the property is acquired by Wexpro and whether there are any time limits, such as option expirations, effecting the availability of the properties for inclusion as a Wexpro II property; |
(l) | Forecasted long-term cost-of-service analysis; |
(m) | Impact on Questar Gas’ gas supply; |
(n) | Geologic data; |
(o) | Future development plan for the proposed properties; and |
(p) | Other data as requested or as may be appropriate to an evaluation of the property. |
/s/Craig C. Wagstaff | /s/Chris Parker | |
Craig C. Wagstaff Executive Vice President & Chief Operating Officer Questar Gas Company | Chris Parker Division Director Utah Division of Public Utilities | |
/s/James R. Livsey | /s/Bryce Freeman | |
James R. Livsey Executive Vice President & Chief Operating Officer Wexpro Company | Bryce Freeman Administrator Wyoming Office of Consumer Advocate |
Marginal | |||||||||||
Statutory | Composite | ||||||||||
State | Tax Rate | State Rate | Composite Tax Rate Formula 1 | ||||||||
Utah | 5 | % | 0.832 | % | ri =(Invi +Rcpti + Wi) / 3 | ||||||
Wyoming | — | % | — | % | ri = 0 | ||||||
Colorado | 4.63 | % | 0.795 | % | ri =Rcpti | ||||||
Montana | 6 | % | — | % | ri =(Invi +Rcpti + Wi) / 3 | ||||||
New Mexico | 7.6 | % | 0.0002 | % | ri =(Invi +Rcpti + Wi) / 3 | ||||||
Nevada | — | % | — | % | ri = 0 | ||||||
Effective Tax Rate | 1.6272 | % | |||||||||
1 | Invi | is the percentage of Wexpro's total-company investment in state i | |||||||||
Rcpti | is the percentage of Wexpro's total-company gross receipts in state i | ||||||||||
Wi | is the percentage of Wexpro's total-company wages in state i | ||||||||||
ri | is the marginal effective state tax rate applicable to state i | ||||||||||
Note: The marginal composite state income tax rate for each state is based on that state’s currently applicable statutes and regulations. See Composite Tax Rate Calculation on page 2 of Exhibit C. |
Company Name | Activity | Regulatory Agency | Authorized BRR on Common Equity on May 31, 1981 | Authorized BRR on Common Equity on May 31, 2011 | Notes | |
1. | Idaho Power Company | Electric Services | Idaho PSC | 14.5% | 10.5% | |
2. | Intermountain Gas Co. | Gas Distribution | Idaho PSC | 14.5% | 14.85% | |
3. | Montana Power Company | Electric Services | Montana PSC | 13.45% | 10.25% | Renamed Northwestern Energy Corp. |
4. | Montana-Dakota Utilities Co. | Gas Distribution | Montana PSC | 13.5% | 12% | Renamed MDU Resources |
5. | Pacific Power & Light | Electric Services | Wyoming PSC | 14.2% | 10.6% | Using Replacement Index1 |
6. | Northern Utilities, Inc. | Gas Distribution | Wyoming PSC | 13.5% | 9.92% | Renamed SourceGas Distribution, LLC |
7. | Nevada Power Company | Electric Services | Nevada PSC | 15% | 10.8% | |
8. | Southwest Gas Corp. | Gas Distribution | Nevada PSC | 15.2% | 10.15% | |
9. | Utah Power & Light Co. | Electric Services | Utah PSC | 16.8% | 10.6% | Renamed Pacificorp-Utah |
10. | Mountain States Tel. & Tel. Co. | Tele- communications | Utah PSC | 13.47% | 10.67% | Using Replacement Index1 |
11. | Public Service Co. of Colorado | Gas Distribution | Colorado PSC | 15.45% | 10.25% | |
12. | Mountain States Tel & Tel. | Tele-communications | Colorado PSC | 11.9% | 11.25% | Renamed CenturyLink |
13. | Arizona Public Service Co. | Electric Services | Arizona PSC | 15% | 11% | |
14. | Southwest Gas Corp. | Gas Distribution | Arizona PSC | 16% | 10% | |
15. | Public Service Co. of New Mexico | Electric Services | New Mexico PSC | 15.5% | 10.5% | |
16. | Southern Union Gas Co. | Gas Distribution | New Mexico PSC | 15.5% | 9.53% | Renamed Public Service of New Mexico |
17. | Colorado Interstate Corp. | Gas Transmission | FERC | 13.47% | 10.67% | Using Replacement Index1 |
18. | Northwest Pipeline Corp. | Gas Transmission | FERC | 13.47% | 10.67% | Using Replacement Index1 |
19. | Kansas-Nebraska Natural Gas Co. | Gas Transmission | FERC | 13.47% | 10.67% | Using Replacement Index1 |
20. | Transwestern Pipeline Co. | Gas Transmission | FERC | 13.47% | 10.67% | Using Replacement Index1 |
Date | Title |
06/14/11 | QEP Assignment of F. Wilson #37 Marginal Well Interest to Wexpro |
10/24/11 | QEP Assignment of the Lance Formation to Wexpro (Jacks Draw #18) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Government #17) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Musser #73) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Musser #72) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Musser #42) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Musser #35) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Musser #34) |
03/15/11 | QEP Assignment of the Lance Formation to Wexpro (Government #15) |
10/07/10 | QEP Assignment of Sugarloaf Government #18 Marginal Well Interest toWexpro |
10/07/10 | QEP Assignment of Sugarloaf Government #17 Marginal Well Interest toWexpro |
08/31/10 | Wexpro Acquisition of Non-Consent Interest in Kinney #4 Recompletion |
07/27/10 | QEP Assignment of Bruff Unit 50 Marginal Well Interest to Wexpro |
07/10/10 | QEP Assignment of Bruff Unit 48 Marginal Well Interest to Wexpro |
07/01/10 | Wexpro Acquisition of Non-Consent Interest in Clifton Federal 34-6 Well |
06/22/10 | QEP Assignment of Bruff Unit 63 Marginal Well Interest to Wexpro |
06/14/10 | QEP Assignment of F. Wilson #37 Marginal Well Interest to Wexpro |
04/09/10 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 184 Well |
03/04/10 | QEP Assignment of Bruff Unit 55 Marginal Well Interest to Wexpro |
02/16/10 | Wexpro Acquisition of Non-Consent Interest in Bruff Unit 53 Well |
10/09/09 | Wexpro Acquisition of Non-Consent Interest in Lansdale 4-7 Well |
07/30/09 | Wexpro Acquisition of Non-Consent Interest in Lansdale 4-5 Well |
07/30/09 | Wexpro Acquisition of Non-Consent Interest in Lansdale 4-8 Well |
07/09/09 | Wexpro Acquisition of Non-Consent Interest in Bruff Unit 54 Well |
06/08/09 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 166 Well |
05/27/09 | Wexpro Acquisition of Non-Consent Interest in Bruff Unit 56 Well |
05/25/09 | Wexpro Acquisition of Non-Consent Interest in Bruff Unit 71 Well |
05/20/09 | Wexpro Acquisition of Non-Consent Interest in MFS 10-5 Well |
04/30/09 | Wexpro Acquisition of Non-Consent Interest in Bruff Unit 51 Well |
04/14/09 | Wexpro Acquisition of Non-Consent Interest in Trail 04D-16W Well |
04/08/09 | QEP Assignment of Bruff Unit 51 Marginal Well Interest to Wexpro |
03/26/09 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 183 Well |
03/26/09 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 179 Well |
01/15/09 | Wexpro Acquisition of Non-Consent in Pando 32-8 Well |
12/08/08 | Wexpro Acquisition of Non-Consent Interest in Clifton Federal 34-7 Well |
12/08/08 | Wexpro Acquisition of Non-Consent Interest in Clifton Federal 34-5 Well |
12/08/08 | Wexpro Acquisition of Non-Consent Interest in Clifton Federal 28-6 Well |
12/08/08 | Assignment of Clifton Federal 28-8 Marginal QEP Interest to Wexpro |
06/02/08 | 3D Seismic Program, Dry Piney Unit, Sublette County, Wyoming |
03/01/08 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 173 Well |
01/06/08 | Wexpro Acquisition of Non-Consent Interest in Clifton-Federal 34-8 Well |
01/03/08 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 149 Well |
10/02/07 | Guideline Letter for Wexpro Monitor Fee Amount |
09/11/07 | Wheeler Farmout Guideline Letter - Assignment of marginal intervals in West Hiawatha to Wexpro to facilitate Development Gas Drilling under the terms of the Wexpro Agreement |
07/05/07 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 148 Well |
04/23/07 | Wexpro Acquisition of Non-Consent Interest in Church Buttes 162 Well |
04/17/07 | Wexpro Acquisition of Non-Consent Interest in Trail Unit 03C-10J Well |
01/12/07 | Assignment of Working Interest to Wexpro to Facilitate Developmentn Gas Drilling (Hydrocarbon Monitor approval of assignment of Anadarko's non-consent interest in Church Buttes 89 Well) |
03/15/06 | Hydrocarbon Monitor approval of assignment of ExxonMobil's non-consent interest in Dry Piney 5 Well |
03/15/06 | Hydrocarbon Monitor approval of assignment of Exxon Mobil's non-consent interest in Dry Piney 27 Well |
03/14/06 | Hydrocarbon Monitor approval of assignment of interest in the Upper Mesaverde Formation in West Hiawatha wells Lasher 11 and 12 |
01/20/06 | Hydrocarbon Monitor approval of assignment of interest in the Upper Mesaverde Formation in Hiawatha State Land 7 Well |
08/24/05 | Hydrocarbon Monitor approval of assignment of interest in the Bear River Formation in Dry Piney #32 & #35 Wells |
08/09/04 | Guideline Letter regarding assignment of marginal intervals to Wexpro to facilitate Development Gas Drilling under the terms of the Wexpro Agreement |
07/26/04 | Pre-participation approval by Hydrocarbon Monitor to participate in the 3D Seismic program over Canyon Creek Unit |
02/20/04 | Guideline Letter Governing the Adoption of Financial Accounting Standards Board Statement #143, Accounting for Asset Retirement Obligations Under the Wexpro Agreement |
10/08/02 | Election to designate the Mesaverde Formation as a "Productive Gas Reservoir" in the Participating Area A, Island Unit, Uintah County, Utah |
09/30/02 | The Mesa Unit (Pinedale) Upper Mesaverde Guideline Letter |
06/26/02 | Guideline Letter for Coal Bed Methane Development Under the Wexpro Agreement |
06/26/02 | Guideline Letter relating to ownership in the Mesaverde Formation within Jackknife Springs Unit |
04/04/01 | Guideline Letter Relating to Development and Ownership of the Mesaverde Formation within the Island Unit, Uintah County, Utah |
05/31/00 | Guideline Letter relating to The Mesa Unit (Pinedale) Lance Formation Ownership |
08/18/99 | 3D Seismic program in Pinedale Anticline |
04/27/99 | I-47 Product Allocation Ratio |
11/13/98 | Division Sign Off of Birch Creek #117 as D-24 |
06/25/98 | Guideline Letter Relating to Island Unit — Deepening Wells |
01/22/98 | Acquisition of 3-D Seismic Data, Brady Field, Wyoming |
10/17/94 | Guideline Letter Relating to 3-D Seismic Projects |
05/16/94 | Development Program, Johnson Ridge Field, Wyoming |
05/29/92 | Refund of Excess Deferred Taxes – Whole-Well Approach for Determining Commerciality in the Church Buttes Unit – Replacement Index Method for Determining Base Rate of Return |
12/19/89 | 1989-90 Base Rate of Return Under the Wexpro Agreement |
11/21/89 | Joint Account Overhead Fees Guideline Letter |
08/25/89 | Wexpro Agreement Guideline Letters |
07/11/89 | Wexpro Agreement — Federal Royalty Assessment of Brady Liquids — Adjustment to Manufacturing Allowance |
10/27/88 | Wexpro Agreement Guideline for Expanding Participating Areas Inside Federal Units |
10/16/87 | Nonstatus Well Guidance Letter Dated May 7, 1986 |
05/07/86 | Wexpro Agreement – Accounting of Pre-July 31, 1981, Overriding Royalty Interests – and Nonstatus Wells |
03/03/86 | The Wexpro Bug Field, San Juan County, Utah |
02/27/86 | Accounting for Production Taxes |
09/07/84 | Well Completions in the Hiawatha & Powder Wash Oil and Gas Fields |
09/07/84 | Tentative Plan to Fracture Stimulate Mesa Unit Well #2, Sublette County, Wyoming |
07/16/84 | East Hiawatha Enhanced Recovery Project |
12/14/83 | Delivery Point at the Butcher Knife & Church Buttes Fields, Sweetwater County, Wyoming |
9 Months Ended September 30, | |||||||
2012 | 2011 | ||||||
(dollars in millions) | |||||||
Earnings | |||||||
Pretax income from continuing operations before adjustment for income or loss from equity investee | $ | 228.5 | $ | 225.1 | |||
Add (deduct): | |||||||
Fixed charges | 46.3 | 47.1 | |||||
Distributed income from equity investees | 3.3 | 3.2 | |||||
Capitalized interest | (0.2 | ) | (0.6 | ) | |||
Total Earnings | $ | 277.9 | $ | 274.8 | |||
Fixed Charges | |||||||
Interest expense | $ | 44.3 | 44.1 | ||||
Capitalized interest | 0.2 | 0.6 | |||||
Estimate of interest within rental expense | 1.8 | 2.4 | |||||
Total Fixed Charges | $ | 46.3 | $ | 47.1 | |||
Ratio of Earnings to Fixed Charges | 6.0 | 5.8 |
9 Months Ended September 30, | |||||||
2012 | 2011 | ||||||
(dollars in millions) | |||||||
Earnings | |||||||
Pretax income from continuing operations | $ | 37.3 | $ | 41.4 | |||
Add (deduct): | |||||||
Fixed charges | 19.4 | 20.0 | |||||
Capitalized interest | (0.1 | ) | (0.1 | ) | |||
Total Earnings | $ | 56.6 | $ | 61.3 | |||
Fixed Charges | |||||||
Interest expense | $ | 19.1 | $ | 19.5 | |||
Capitalized interest | 0.1 | 0.1 | |||||
Estimate of interest within rental expense | 0.2 | 0.4 | |||||
Total Fixed Charges | $ | 19.4 | $ | 20.0 | |||
Ratio of Earnings to Fixed Charges | 2.9 | 3.1 |
9 Months Ended September 30, | |||||||
2012 | 2011 | ||||||
(dollars in millions) | |||||||
Earnings | |||||||
Pretax income from continuing operations before adjustment for income or loss from equity investee | $ | 75.7 | $ | 76.6 | |||
Add (deduct): | |||||||
Fixed charges | 21.0 | 21.2 | |||||
Distributed income from equity investee | 3.3 | 3.2 | |||||
Capitalized interest | (0.1 | ) | (0.5 | ) | |||
Total Earnings | $ | 99.9 | $ | 100.5 | |||
Fixed Charges | |||||||
Interest expense | $ | 19.8 | $ | 19.5 | |||
Capitalized interest | 0.1 | 0.5 | |||||
Estimate of interest within rental expense | 1.1 | 1.2 | |||||
Total Fixed Charges | $ | 21.0 | $ | 21.2 | |||
Ratio of Earnings to Fixed Charges | 4.8 | 4.7 |
1. | I have reviewed this Form 10-Q of Questar Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
October 31, 2012 | /s/Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
1 | I have reviewed this Form 10-Q of Questar Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
1. | I have reviewed this Form 10-Q of Questar Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
October 31, 2012 | /s/Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
1. | I have reviewed this Form 10-Q of Questar Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
1. | I have reviewed this Form 10-Q of Questar Pipeline Company: |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
October 31, 2012 | /s/R. Allan Bradley R. Allan Bradley President and Chief Executive Officer |
1. | I have reviewed this Form 10-Q of Questar Pipeline Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting: and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function): and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR CORPORATION | |
October 31, 2012 | /s/Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR CORPORATION | |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR GAS COMPANY | |
October 31, 2012 | /s/Ronald W. Jibson Ronald W. Jibson Chairman, President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR GAS COMPANY | |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR PIPELINE COMPANY | |
October 31, 2012 | /s/R. Allan Bradley R. Allan Bradley President and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
QUESTAR PIPELINE COMPANY | |
October 31, 2012 | /s/Kevin W. Hadlock Kevin W. Hadlock Executive Vice President and Chief Financial Officer |
7_`,+,T';_`*WRSN^GS8_K5CXEM=IX94VA
MD">>OG%"?NX/7VSC]*XCP[J5SJ_Q`LKR\??-)+DXZ`;3@#VKTCQ7XD;PS:VM
MSY`FCDF\MUS@XVDY!]>*SJ4Y4JM**5VE_F5"2G";>B;$\#M=/X1L3>ES(0VT
MOUV[CM_3'X8JC\.E@71KW[/C!O9,_3`Q^E8.M?%#[5820:9:20R2+M,LK#*`
MCG`'?WKF?#'BFZ\,W3O$@F@EQYD+'&<="#V-6L'5G"HVK-N]A>WA&44G=+J=
MG?S>$X/%,ESQ-Q=_9I$\TR<<\Y/?C]:IX6:ZJY$
E(,D@#DFJ-]KVF:=D23_:91_P`LK8AA^+]!^&:Y
MV^\7W]R"EIMLHCQB'[Y'NYY_+`]J]#"9#BL1[TERKS_R.>KC:5/1:LZR\NK7
M35SJ%RD#=?+^](?^`CD?C@5S][XT(RFEVPC_`.FTX#M^"_='XY^M