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We have rated Questar a buy since October 2002. Strengths such as revenue growth and improvement in earnings have contributed to this rating. For the first quarter of fiscal 2008, Questar reported a 23% surge in net earnings, boosted by higher natural gas and oil production. Increased prices also contributed to the rise. Net income rose to $185.8 million, or $1.05 per share, from $151.1 million, or 86 cents a share, in the first quarter of fiscal 2007. Total revenue grew 20% to $1.05 billion, compared with $872.1 million a year ago. Additionally, Questar Exploration and Production Company, a subsidiary of Questar Market Resources, completed the purchase of two producing properties in northwest Louisiana during the first quarter.

Looking ahead to the rest of fiscal 2008, Questar increased its EPS forecast to a range of $3.25 to $3.40 a share from previous guidance of $3.05 to $3.20 a share. The company also raised its production forecasts for the full year. However, any significant decline in natural gas and oil prices could affect the company's business severely, as could any unfavorable regulatory actions.

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Hess(HES Quote) is a global independent energy company that explores for, produces, purchases, transports, and sells crude oil and natural gas. The company conducts exploration and production activities in countries worldwide, including the U.S., the U.K., Norway, Denmark, Equatorial Guinea, Gabon, Azerbaijan, Thailand and Indonesia. The company also manufactures, purchases, trades, and markets refined petroleum and other energy products. Hess operates approximately 1,250 retail facilities in the eastern U.S., along with a convenience store network.