UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report - September 16, 2003
(Date of earliest event reported)
QUESTAR CORPORATION
(Exact name of registrant as specified in charter)
STATE OF UTAH | 1-8796 | 87-0407509 |
P.O. Box 45433, 180 East 100 South Street, Salt Lake City, Utah 84145-0433
(Address of principal executive offices)
Registrant's telephone number, including area code (801) 324-5000
Not Applicable
(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits |
Exhibit No. | Exhibit |
99.1 | Release issued September 16, 2003, by Questar Corporation. |
Item 12. Results of Operations and Financial Condition |
SIGNATURE | ||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. | ||||||
QUESTAR CORPORATION | ||||||
September 17, 2003 | /s/S. E. Parks | |||||
S. E. Parks | ||||||
List of Exhibits: | ||||||
Exhibit No. | Exhibit | |||||
99.1 | Release issued September 16, 2003, by Questar Corporation. | |||||
Exhibit 99.1 |
QUESTAR UPDATES EARNINGS GUIDANCE AND COMMENTS ON CURRENT |
FIRST CALL THIRD-QUARTER ESTIMATES |
SALT LAKE CITY - Questar Corp. (NYSE:STR) reaffirmed its full-year 2003 earnings guidance but indicated third-quarter 2003 earnings would fall short of the current First Call consensus of $.38 per share. The integrated natural gas company estimated earnings for the three months ending Sept. 30, 2003, would range between $.30 and $.34 a share.
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The company's full-year 2003 earnings guidance is $2.15 to $2.25 per share. Previous guidance was $2.10 to $2.25. The current guidance is based on existing hedges for natural gas and oil production (see table below) and assumes sales prices at or near levels reflected in the forward price curve. The guidance also excludes the one-time cumulative effect of implementing SFAS 143, Accounting for Asset Retirement Obligations, asset sales, and a liability related to a dispute over the recovery of past CO2-processing charges.
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Questar Chairman and CEO Keith O. Rattie said the disparity between the company's internal expectations and analyst estimates "may be primarily due to timing differences" for revenues from the company's operations. "We remain on track with our 2003 plan and earnings guidance, but our revenue profile has changed, with a greater portion of revenues expected in the fourth and first quarters," he said.
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Rattie noted that the company expects significant growth in non-regulated production in the fourth quarter following completion of up to 25 natural gas wells at the Pinedale field in western Wyoming. Questar's 2003 Pinedale drilling program commenced in May, and most of the wells will be completed and turned to sales between mid-September and early November, when drilling is suspended on federal lands. Rattie also reaffirmed a previous full-year 2003 production estimate of 88 to 92 Bcf equivalent.
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The Questar CEO said that some revenues for Questar Gas - a retail natural gas-distribution subsidiary - have shifted to the first and fourth quarters because of a new rate structure that went into effect Jan. 1, 2003. Prior to this year, customer contributions in aid of construction were treated as revenues. Under the new tariff, customer contributions will be applied to reduce rate base. This change has the effect of shifting revenues from the low-volume summer months to the winter months. Rattie said the utility's financial performance is highly seasonal - with losses in the second and third quarters when gas consumption declines.
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The company also provided an update on natural gas hedges for the second half of 2003, 2004 and 2005. |
