Wexpro Acquisition of Producing Properties

9 Months Ended

Sep. 30, 2013

Wexpro Acquisition of Producing Properties [Abstract]

Wexpro Acquisition of Producing Properties

Note 13 - Wexpro Acquisition of Producing Properties

On September 4, 2013, Wexpro completed the transaction announced in July 2013 to acquire an additional interest in natural gas-producing properties in the Trail Unit of southwestern Wyoming's Vermillion Basin for $106.7 million (Trail acquisition). This is a “bolt-on” acquisition to the company’s current Trail assets, which are governed by the 1981 Wexpro Agreement. The Company is in the process of submitting these properties to the public service commissions of Utah and Wyoming for inclusion as cost-of-service properties under the Wexpro II Agreement.

Because it contains proved properties, the Trail acquisition is accounted for using the accounting guidance for business combinations. Summary information related to the Trail acquisition is shown in the table below. Amounts are provisional and are subject to post-closing adjustments.

	(in millions)
Fair value of consideration transferred:
Cash paid at closing	$	106.7
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value:
Proved properties	$	108.8
Asset retirement obligations	(2.1		)
Total fair value of identifiable net assets acquired	$	106.7

Revenues of$1.5 millionand net income of$0.3 millionattributable to the Trail acquisition are included in Questar's Condensed Consolidated Statements of Income for the period between the September 4, 2013 closing date and September 30, 2013. Trail acquisition-related transaction costs of$0.2 million for the first nine months of 2013are included ingeneral and administrative expenseon Questar's Condensed Consolidated Statement of Income. Supplemental pro forma income information related to the Trail acquisition is not presented because it is immaterial to Questar's consolidated revenues, expenses and income in all periods presented.