Profile: Questar Corp (STR.N)
Questar Corporation (Questar) is a Rockies-based integrated natural gas holding company. Questar operates through its wholly owned subsidiaries: Wexpro Company (Wexpro), Questar Pipeline Company (Questar Pipeline) and Questar Gas Company (Questar Gas). Wexpro develops and produces natural gas on behalf of Questar Gas. Questar Pipeline operates interstate natural gas pipelines and storage facilities in the western United States and provides other energy services. Questar Gas provides retail natural gas distribution in Utah, Wyoming and Idaho.
Wexpro develops, produces and delivers gas utility for affiliate Questar Gas under the terms of the Wexpro Agreement, a long-standing agreement with the states of Utah and Wyoming. During the year ended December 31, 2011, 89% of Wexpro's revenues were from its affiliate, Questar Gas. Wexpro generated 40% of the Company's operating income during 2011. Wexpro delivers natural gas production to Questar Gas at cost-of-service. During 2011, cost-of-service gas satisfied approximately 52% of Questar Gas supply requirements. Wexpro sells crude-oil production from certain oil-producing properties. Wexpro's properties are located in the Rocky Mountain region, in the Vermillion, Pinedale, Moxa Arch, and Uinta producing areas. During 2011, the Company drilled 58 wells in Vermillion.
Questar Pipeline provides natural gas-transportation and underground-storage services in Utah, Wyoming and Colorado. During 2011, Questar Pipeline and subsidiaries generated approximately 34% of the Company's operating income. Questar Pipeline and its subsidiaries own 2,638 miles of interstate pipeline with total firm-capacity commitments of 4,973 million thousand dekatherms per day. Questar Pipeline's core-transportation system is located near large reserves of natural gas in six major Rocky Mountain producing areas. Questar Pipeline and certain subsidiary pipeline companies are regulated by the Federal Energy Regulatory Commission (FERC). Questar Pipeline transports natural gas from these producing areas to other major pipeline systems, Questar Gas's distribution system and other utility systems. In addition to this core system, Questar Pipeline, through wholly owned subsidiaries, owns and operates the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line from the Blanco hub in the San Juan Basin inside the California state line near the Arizona border. Questar Pipeline operates and owns 50% of the White River Hub in western Colorado.
Questar Pipeline owns and operates the Clay Basin storage facility, the underground-storage reservoir in the Rocky Mountain region. Through a subsidiary, Questar Pipeline also owns gathering lines and processing facilities near Price, Utah, through which it provides gas-processing services for third parties. Questar Pipeline subsidiary also provides wellhead automation and measurement services for Rockies oil and gas producers. During 2011, Questar Pipeline transported 116.9 million thousand dekatherms for Questar Gas. Questar Gas has reserved firm-transportation capacity of 881 million thousand dekatherms per day under long-term contracts. During 2011, 27% of Questar Pipeline's revenues were from its affiliate, Questar Gas. During 2011, Questar Pipeline also transported 665.8 million thousand dekatherms.
Questar Gas distributes natural gas as a public utility in Utah, southwestern Wyoming and a small portion of southeastern Idaho. During 2011, it generated approximately 26% of the Company's operating income. As of December 31, 2011, Questar Gas was serving 919,236 sales and transportation customers. Questar Gas is a non-municipal gas-distribution utility in Utah, where 97% of its customers are located. Questar Gas's sells to residential and commercial customers. The residential customer in Utah consumes over 77% of total gas requirements. During 2011, Questar Gas satisfied 52% of its supply requirements with cost-of-service gas volumes. Questar Gas has long-term contracts with Questar Pipeline for transportation and storage capacity at Clay Basin and three storage facilities. Questar Gas also has transportation contracts to take deliveries at several locations from Kern River Pipeline.
Questar Gas distributes gas to customers along the Wasatch Front, the populated area of Utah, the metropolitan Salt Lake area, Provo, and Ogden. It also serves customers throughout the state, including the cities of Price, Roosevelt, Park City, Logan, Vernal, Moab, Monticello, Fillmore, Cedar City and St. George. Questar Gas supplies natural gas to the southwestern Wyoming communities of Rock Springs, Green River, Evanston, Kemmerer and Diamondville, and the southeastern Idaho community of Preston. Questar Gas owns and operates distribution systems and has a total of 27, 415 miles of street mains, service lines and interconnecting pipelines.
333 SOUTH STATE STREET,
P.O. Box 45433
SALT LAKE CITY UT 84145-0433