This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Questar Reports 17% Increase In First-Quarter 2014 Earnings

Stocks in this article: STR

Questar Corporation (NYSE:STR) reported first-quarter 2014 net income of $85.1 million, or $0.48 per diluted share, up 17% compared to first-quarter 2013 net income of $72.9 million, or $0.41 per diluted share. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for the quarter were up 12% to $206.3 million compared to $183.8 million in the year-ago period. Return on average common equity (ROE) was 18.9% for the 12 months ended March 31, 2014, excluding a $52.4 million after-tax impairment charge taken in the third quarter of 2013. Including the impairment charge, Questar’s ROE was 14.8%.

NET INCOME (LOSS) BY SUBSIDIARY

     
3 Months Ended March 31,
        2014     2013     Change
(in millions, except earnings per share)
Questar Gas $ 39.6     $ 37.0     $ 2.6   7 %
Wexpro 31.8 26.3 5.5 21 %
Questar Pipeline 15.7 15.8 (0.1 ) (1 %)
Corporate and other       (2.0 )     (6.2 )     4.2     68 %
Total net income       $ 85.1       $ 72.9       $ 12.2     17 %
Earnings per diluted share $ 0.48 $ 0.41 $ 0.07 17 %
Average diluted shares 176.1 176.1 %
 
 
     

ADJUSTED EBITDA BY SUBSIDIARY (a)

 
3 Months Ended March 31,
        2014     2013     Change
(in millions)
Questar Gas $

84.3

    $ 77.6     $ 6.7   9 %
Wexpro 76.1 62.4 13.7 22 %
Questar Pipeline 44.9 45.5 (0.6 ) (1 %)
Corporate and other         1.0       (1.7 )     2.7     159 %
Total Adjusted EBITDA       $ 206.3       $ 183.8       $ 22.5     12 %

(a) Management defines Adjusted EBITDA as net income (loss) before gains and losses from asset sales, interest expense, depreciation, depletion and amortization, abandonments and impairments, other special items and income taxes. See computations on the last page of the attached financial statements.

“We are very pleased with Questar’s strong performance in the first quarter,” said Ronald W. Jibson, Questar chairman, president and CEO. “Wexpro and Questar Gas grew net income by 21% and 7%, respectively, while Questar Pipeline's income was flat compared to last year’s first quarter. Adjusted EBITDA in the first quarter of 2014 was over $206 million, up 12% from the same quarter in 2013. Wexpro's recent Trail acquisition was approved under the Wexpro II Agreement and is now producing cost-of-service gas for Questar Gas customers. We are also pleased to report that Utah regulators recently issued a rate case order that allows Questar Gas to earn a competitive ROE and increase its spending under the infrastructure-replacement program’s tracker. Although there are a number of uncertainties that could still impact 2014, we remain comfortable with our initial 2014 earnings guidance range of $1.18 to $1.28 per diluted share, which we will update each quarter.”

1 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs