Dominion Questar 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
REVENUES
Market Resources	576.3	476.1
Questar Pipeline	47	40.7
Questar Gas	360.7	405.7
Total Revenues	984	922.5
OPERATING EXPENSES
Cost of natural gas and other products sold (excluding operating expenses shown separately)	325.8	315.3
Operating and maintenance	103.5	100.3
General and administrative	51.2	41.2
Production and other taxes	37.5	29
Depreciation, depletion and amortization	186.3	161.3
Exploration	3.6	3.1
Abandonment and impairment	7.6	3.7
Total Operating Expenses	715.5	653.9
Net gain (loss) from asset sales	-0.8	1.9
OPERATING INCOME	267.7	270.5
Interest and other income	3.5	4.4
Income from unconsolidated affiliates	1.8	1.6
Unrealized and realized (loss) on basis-only swaps	0	-138.3
Interest expense	-34.1	-31.8
INCOME BEFORE INCOME TAXES	238.9	106.4
Income taxes	(88)	-38.7
NET INCOME	150.9	67.7
Net income attributable to noncontrolling interest	-0.6	-0.5
NET INCOME ATTRIBUTABLE TO QUESTAR	150.3	67.2
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO QUESTAR
Basic	0.86	0.39
Diluted	0.85	0.38
Weighted Average Number Of Common Shares Outstanding
Used in basic calculation	174.9	173.8
Used in diluted calculation	177.2	175.9
Dividends per common share	0.13	0.125

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Current Assets
Cash and cash equivalents	$0	30.8
Accounts receivable, net	339.8	313.9
Unbilled-gas accounts receivable	57.6	86.9
Fair value of derivative contracts	313.3	128.2
Gas and oil storage	20.5	60.4
Materials and supplies	87.3	94.2
Prepaid expenses and other	37.7	37.8
Regulatory assets	38.1	43.4
Deferred income taxes - current	0	35.5
Total Current Assets	894.3	831.1
Property, Plant and Equipment (successful efforts method for gas and oil properties)	11846.4	11529.9
Accumulated depreciation, depletion and amortization	-3902.2	(3,725)
Net Property, Plant and Equipment	7944.2	7804.9
Investment in unconsolidated affiliates	72.4	72
Goodwill	69.9	69.9
Regulatory assets	22.4	23.5
Fair value of derivative contracts	170.4	61.2
Other noncurrent assets	33.8	35.1
Total Assets	9207.4	8897.7
Current Liabilities
Checks outstanding in excess of cash balances	10.4	0
Short-term debt	134.5	169
Accounts payables and accrued expenses	530.5	598.7
Fair value of derivative contracts	139.5	149.7
Regulatory liabilities	10.6	30.7
Deferred income taxes - current	35.8	0
Current portion of long-term debt	150	0
Total Current Liabilities	1011.3	948.1
Long-term debt, less current portion	2029.9	2179.9
Deferred income taxes	1,638	1553.5
Asset retirement obligations	196	189.7
Defined benefit pension plan	210.6	206.9
Fair value of derivative contracts	111.7	140.6
Other long-term liabilities	130.2	121.9
EQUITY
Common stock	462.5	454.8
Retained earnings	3205.2	3077.7
Accumulated other comprehensive income (loss)	157.7	-30.3
Total Common Shareholders' Equity	3825.4	3502.2
Noncontrolling interest	54.3	54.9
Total Equity	3879.7	3557.1
Total Liabilities and Equity	9207.4	8897.7

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
OPERATING ACTIVITIES
Net income	150.9	67.7
Adjustments to reconcile net income to net cash provided from operating activities
Depreciation, depletion and amortization	188.3	163.3
Deferred income taxes	44.6	7.4
Abandonment and impairment	7.6	3.7
Share-based compensation	6.4	5.4
Net (gain) loss from asset sales	0.8	-1.9
(Income) from unconsolidated affiliates	-1.8	-1.6
Distributions from unconsolidated affiliates and other	1.8	0
Unrealized gain (loss) on basis-only swaps	-34.7	134.9
Changes in operating assets and liabilities	1.6	101.9
NET CASH PROVIDED BY OPERATING ACTIVITIES	365.5	480.8
INVESTING ACTIVITIES
Property, plant and equipment, including dry exploratory well expense	-349.4	-390.5
Cash used in disposition of assets	-0.2	-0.2
Proceeds from disposition of assets	0.1	7.1
NET CASH USED IN INVESTING ACTIVITIES	-349.5	-383.6
FINANCING ACTIVITIES
Common stock issued	5.9	3.2
Common stock repurchased	-5.9	(4)
Long-term debt issued	0	50
Change in short-term debt	-34.5	-165.6
Checks outstanding in excess of cash balances	10.4	16.3
Dividends paid	-22.8	-21.7
Tax benefits from share-based compensation	1.3	0.7
Distribution to noncontrolling interest	-1.2	0
NET CASH USED IN FINANCING ACTIVITIES	-46.8	-121.1
Change in cash and cash equivalents	-30.8	-23.9
Beginning cash and cash equivalents	30.8	23.9
Ending cash and cash equivalents	$0	$0

Nature of Business

Nature of Business
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Nature of Business	Questar Corporation (Questar or the Company) is a natural gas-focused energy company with five major lines of business - gas and oil exploration and production, midstream field services, energy marketing, interstate gas transportation, and retail gas distribution - which are conducted through its three principal subsidiaries: Questar Market Resources, Inc. (Market Resources) is a subholding company that operates through four principal subsidiaries. Questar Exploration and Production Company (Questar E&P) acquires, explores for, develops and produces natural gas, oil and NGL. Wexpro Company (Wexpro) manages, develops and produces cost-of-service reserves for gas utility affiliate Questar Gas. Questar Gas Management Company (Gas Management) provides midstream field services including natural gas-gathering and processing services for affiliates and third parties. Questar Energy Trading Company (Energy Trading) markets equity and third-party natural gas and oil, provides risk-management services and owns and operates an underground gas-storage reservoir. Questar Pipeline Company (Questar Pipeline) provides interstate natural gas transportation and storage and other energy services. Questar Gas Company (Questar Gas) provides retail natural gas distribution services in Utah, Wyoming and Idaho. Questar operates in the Rocky Mountain and Midcontinent regions of the United States and is headquartered in Salt Lake City, Utah. Shares of Questar common stock trade on the New York Stock Exchange (NYSE:STR).

Basis of Presentation of Interi

Basis of Presentation of Interim Consolidated Financial Statements
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Basis of Presentation of Interim Consolidated Financial Statements [Text Block]	The interim condensed consolidated financial statements contain the accounts of Questar and its majority-owned or controlled subsidiaries. The condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions for quarterly reports on Form 10-Q and Regulations S-X and S-K. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements reflect all normal, recurring adjustments and accruals that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for audited annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009. Certain reclassifications were made to prior-period financial statements to conform with the current presentation. The preparation of the condensed consolidated financial statements and notes in conformity with GAAP requires that management make estimates and assumptions that affect the amounts of revenues, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from estimates. The results of operations for the three months ended March 31, 2010, are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. All dollar and share amounts in this quarterly report on Form 10-Q are in millions, except per-share information and where otherwise noted. The interim condensed consolidated financial statements contain the accounts of Questar and its majority-owned or controlled subsidiaries. The condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions for quarterly reports on Form 10-Q and Regulations S-X and S-K. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements reflect all normal, recurring adjustments and accruals that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for audited annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009. Certain reclassifications were made to prior-period financial statements to conform with the current presentation. The preparation of the condensed consolidated financial statements and notes in conformity

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Comprehensive Income	The interim condensed consolidated financial statements contain the accounts of Questar and its majority-owned or controlled subsidiaries. The condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions for quarterly reports on Form 10-Q and Regulations S-X and S-K. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements reflect all normal, recurring adjustments and accruals that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for audited annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009. Certain reclassifications were made to prior-period financial statements to conform with the current presentation. The preparation of the condensed consolidated financial statements and notes in conformity with GAAP requires that management make estimates and assumptions that affect the amounts of revenues, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from estimates. The results of operations for the three months ended March 31, 2010, are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. All dollar and share amounts in this quarterly report on Form 10-Q are in millions, except per-share information and where otherwise noted. The interim condensed consolidated financial statements contain the accounts of Questar and its majority-owned or controlled subsidiaries. The condensed consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions for quarterly reports on Form 10-Q and Regulations S-X and S-K. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements reflect all normal, recurring adjustments and accruals that are, in the opinion of management, necessary for a fair presentation of financial position and results of operations for the interim periods presented. Interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for audited annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2009. Certain reclassifications were made to prior-period financial statements to conform with the current presentation. The preparation of the condensed consolidated financial statements and notes in conformity

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Earnings Per Share	Basic EPS is computed by dividing net income attributable to Questar by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the potential increase in the number of outstanding shares that could result from the exercise of in-the-money stock options. A reconciliation of the components of basic and diluted shares used in the EPS calculation follows: 3 Months Ended March 31, 20102009 (in millions) Weighted-average basic common shares outstanding174.9 173.8 Potential number of shares issuable under the Long-term Stock Incentive Plan2.3 2.1 Average diluted common shares outstanding177.2 175.9 Basic EPS is computed by dividing net income attributable to Questar by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the potential increase in the number of outstanding shares that could result from the exercise of in-the-money stock options. A reconciliation of the components of basic and diluted shares used in the EPS calculation follows: 3 Months Ended March 31, 20102009 (in millions) Weighted-average basic common shares outstanding174.9 173.8 Potential number of shares issuable under the Long-term Stock Incentive Plan2.3 2.1 Average diluted common shares outstanding177.2 175.9

Asset Retirement Obligations

Asset Retirement Obligations
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Asset Retirement Obligations	Questar records asset retirement obligations (ARO) when there are legal obligations associated with the retirement of tangible long-lived assets. At Questar, ARO apply primarily to abandonment costs associated with gas and oil wells, production facilities and certain other properties. The fair values of retirement costs are estimated by Company personnel based on abandonment costs of similar properties available to field operations and depreciated over the life of the related assets. Revisions to ARO estimates result from changes in expected cash flows or material changes in estimated retirement costs. The ARO liability is adjusted to present value each period through an accretion calculation using a credit-adjusted risk-free interest rate. Income or expense resulting from the settlement of ARO liabilities is included in net gain or (loss) from asset sales on the Consolidated Statements of Income. Changes in ARO were as follows: 20102009 (in millions) ARO liability at January 1, $189.7 $175.6 Accretion 2.7 2.7 Liabilities incurred11.6 0.8 Revisions(7.8)2.4 Liabilities settled(0.2)(0.7)ARO liability at March 31, $196.0 $180.8 Wexpro collects from Questar Gas and deposits in trust certain funds related to estimated ARO costs. The funds are recorded in other noncurrent assets on the Condensed Consolidated Balance Sheets and used to satisfy retirement obligations as the properties are abandoned. The accounting treatment of reclamation activities associated with ARO for properties administered under the Wexpro Agreement is defined in a guideline letter between Wexpro and the Utah Division of Public Utilities and the staff of the Public Service Commission of Wyoming (PSCW).

Capitalized Exploratory Well Co

Capitalized Exploratory Well Costs
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Capitalized Exploratory Well Costs	Net changes in capitalized exploratory well costs are presented in the table below and exclude amounts that were capitalized and subsequently expensed in the period. All of these costs have been capitalized for less than one year. 20102009 (in millions) Balance at January 1,$51.7 $17.0 Additions to capitalized exploratory well costs pending the determination of proved reserves12.4 8.3 Reclassifications to property, plant and equipment after the determination of proved reserves(33.0)(14.3)Balance at March 31,$31.1 $11.0

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Fair Value Measures	Questar measures and discloses fair values in accordance with the provisions of ASC 820 "Fair Value Measurements and Disclosures," formerly SFAS 157. ASC 820 establishes a fair-value hierarchy of Levels 1, 2 and 3 based on inputs with Level 1 measures calculated from the most visible inputs. Level 1 inputs are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. The Level 2 fair value of derivative contracts (see Note 8) is based on market prices posted on the NYMEX on the last trading day of the reporting period and industry-standard discounted cash flow models. The Level 3 fair value of derivative contracts is based on NYMEX market prices in combination with unobservable volatility inputs and industry-standard option pricing models. Long-term investments consist of money market and short-term bond index mutual funds, and represent funds held in Wexpro's trust (see Note 5). The fair value of long-term investments is based on quoted prices for the underlying mutual funds, and is considered a Level 1 fair value. Questar primarily applies the market approach for recurring fair value measurements and maximizes its use of observable inputs and minimizes its use of unobservable inputs. Questar considers bid and ask prices for valuing the majority of its assets and liabilities, measured and reported at fair value. In addition to using market data, Questar makes assumptions in valuing its assets and liabilities, including assumptions about risk and the risks inherent in the inputs to the valuation technique. Certain of Questar's derivative instruments, however, are valued using industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. The determination of fair value for derivative assets and liabilities also incorporates nonperformance risk for counterparties and for Questar. Derivative contract fair values are reported on a net basis to the extent a legal right of offset with a counterparty exists. Questar did not have any assets or liabilities measured at fair value on a non-recurring basis at March 31, 2010, or at December 31, 2009. The fair value of assets and liabilities at March 31, 2010, is shown in the table below: Fair Value Measurements March 31, 2010 Level 1Level 2Level 3Netting AdjustmentsTotal(in millions)AssetsLong-term investments$12.2 $ 12.2 Derivative contracts - short term$483.2 $14.6 ($184.5)313.3 Derivative contracts - long term264.3 16.8 (110.7)170.4 Total assets$12.2 $747.5 $31.4 ($295.2)$495.9 Li

Derivative Contracts

Derivative Contracts
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Derivative Contracts	Market Resources' subsidiaries use commodity-price derivative instruments in the normal course of business. Market Resources has established policies and procedures for managing commodity-price risks through the use of derivative instruments. Market Resources uses derivative instruments to support rate of return and cash flow targets and protect earnings from downward movements in commodity prices. However, these same instruments typically limit future gains from favorable price movements. Derivative contracts are currently in place for a significant share of Questar E&P-owned gas and oil production and a portion of Energy Trading gas marketing transactions. The volume of production with associated derivative instruments and the mix of the instruments are frequently evaluated and adjusted by management in response to changing market conditions. Market Resources may match derivative contracts with up to 100% of forecast production from proved reserves when prices meet earnings and cash flow objectives. Market Resources does not enter into derivative instruments for speculative purposes. Market Resources uses derivative instruments known as fixed-price swaps and costless collars to realize a known price or range of prices for a specific volume of production delivered into a regional sales point. Swap agreements do not require the physical transfer of natural gas between the parties at settlement. Swap transactions are settled in cash with one party paying the other for the net difference in prices, multiplied by the relevant volume, for the settlement period. Collars are combinations of put and call options that have a floor price and a ceiling price and are only triggered if the settlement price is outside the range of the floor and ceiling prices. In the past, Questar E&P has also used natural gas basis-only swaps to protect cash flows and net income from widening natural gas-price basis differentials. However, natural gas basis-only swaps exposed the company to losses from narrowing natural gas price-basis differentials. As of December 31, 2009, all of the company's basis-only swaps were paired with fixed-price swaps and re-designated as cash flow hedges. Changes in the fair value of the derivative instruments subsequent to the re-designation were recorded in AOCI. Fair value changes occurring prior to re-designation were recorded in income. Market Resources enters into derivative instruments that do not have margin requirements or collateral provisions that would require funding prior to the scheduled cash settlement dates. Derivative-arrangement counterparties are normally financial institutions and energy-trading firms with investment-grade credit ratings. Market Resources routinely monitors and manages its exposure to counterparty risk by requiring specific minimum credit standards for all counterparties and transacting with multiple counterparties. All derivative instruments are required to be recorded on the balance sheet as either assets or liabilities measured at their fair values. The designation of a derivative instrument as a hedge and its ability to meet hedge accounting criteria determines how the change in fair value of the der

Share-Based Compensation

Share-Based Compensation
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Share-Based Compensation	Questar issues stock options and restricted shares to certain officers, employees and non-employee directors under its Long-Term Stock Incentive Plan (LTSIP) and recognizes expense over time as the stock options or restricted shares vest. First quarter share-based compensation expense amounted to $6.4 million in 2010 compared to $5.4 million in 2009. Deferred share-based compensation, representing the unvested value of restricted share awards, amounted to $26.1 million at March 31, 2010, compared to $13.7 million at December 31, 2009. Deferred share-based compensation is included in common stock on the Condensed Consolidated Balance Sheets. First quarter cash flow from income tax benefits in excess of recognized compensation expense amounted to $1.3 million in 2010 compared to $0.7 million in 2009. There were 7,379,847 shares available for future grant at March 31, 2010. The Company uses the Black-Scholes-Merton mathematical model in estimating the fair value of stock options for accounting purposes. Fair-value calculations rely upon subjective assumptions used in the mathematical model and may not be representative of future results. The Black-Scholes-Merton model was intended for measuring the value of options traded on an exchange. The calculated fair value of options granted and major assumptions used in the model at the date of grant are listed below: Stock Option Variables 3 Months Ended March 31, 2010 Fair value of options at grant date $40.65 Risk-free interest rate 2.30%Expected price volatility 30.3%Expected dividend yield 1.18%Expected life in years5.2 Unvested stock options decreased by 288,682 to 1,388,645 in the first quarter of 2010. Stock-option transactions under the terms of the LTSIP are summarized below: Options Outstanding Price RangeWeighted- average PriceBalance at January 1, 20104,655,493 $ 7.50 - $53.83 $21.99 Granted451,000 40.65 40.65 Exercised(107,908)7.50 - $14.01 9.57 Balance at March 31, 20104,998,585 $11.48 - $53.83 $23.94 Options OutstandingOptions ExercisableUnvested Options Range of exercise prices Number outstanding at March 31, 2010Weighted-average remaining term in yearsWeighted-average exercise priceNumber exercisable at March 31, 2010Weighted-average exercise priceNumber unvested at March 31, 2010Weighted- average exercise price$11.48 - 11.98 855,4881.8$11.58855,488$11.5813.56 - 17.55 1,790,5972.113.741,790,59713.7424.33 - 38.57 1,731,5005.134.35860,52134.97870,979$33.75 $40.65 - $53.83 621,0006.441.38103,33442.31517,66641.20 4,998,5853.6$23.943,609,940$19.101,388,645$36.52 Restricted-share grants typically vest in equal installments over a three- or four-year period from the grant date. Several grants vest in a single installment after a specified period. The weighted-average vesting period of unvested restricted shares at March 31, 2010, was 20 months. Transactions involving restricted shares under the terms of the LTSIP are summarized below: Unvested Restricted SharesPrice RangeWeighted-average PriceBalance at January 1, 2010880,860 $25.12 - $70.13 $43.44 Granted428,800 40.65 - 42.58 40.69 Distributed(286,068)29.30 - 57.47 42.90 Forfeited(6,564)35.23 - 64.22 42.31 Balance at March 31, 20101,017,028 $

Employee Benefits

Employee Benefits
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Employee Benefits	The Company has defined-benefit pension and life insurance plans covering a majority of its employees and a postretirement medical plan providing coverage to less than half of its employees. Questar is subject to and complies with minimum-required and maximum-allowed annual contribution levels for its qualified retirement plan as determined by the Employee Retirement Income Security Act and Internal Revenue Code. Subject to these limitations, Questar plans to fund the qualified retirement plan in amounts approximately equal to the yearly expense, which is estimated to be $21.9 million for 2010. Pension expense increased year-over-year because returns on plan assets were lower than expected. The Company also has a nonqualified pension plan for eligible employees, which provides a benefit in addition to the benefit limit defined by the Internal Revenue Service for qualified pension plans. The nonqualified pension plan is unfunded. Claims are paid from the Company general funds. The 2010 nonqualified pension plan expense is estimated to be $2.8 million. Components of the qualified and nonqualified pension expense included in the determination of net income are listed below: 3 Months Ended March 31,20102009(in millions)Service cost$ 2.4 $ 2.5 Interest cost7.9 7.2 Expected return on plan assets(6.4)(6.4)Prior service and other costs0.3 0.3 Recognized net-actuarial loss1.8 1.5 Settlement costs0.2 0.3 Pension expense$ 6.2 $ 5.4 The Company currently estimates a $6.1 million expense for postretirement benefits other than pensions in 2010 before $0.8 million for accretion of a regulatory liability. Postretirement benefits include an estimate of the effect of the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Questar's prescription drug benefit is actuarially equivalent to Part D of Medicare and; therefore, qualifies for a federal subsidy available on benefits provided to plan participants. In 2004, the Medicare Part D benefit reduced the accumulated postretirement benefit obligation by $2.0 million. By year-end 2009, the Medicare Part D subsidy grew to $4.0 million. Yearly amortization of this benefit amounting to $0.3 million reduces expense through a decrease in the amortization of the unrecognized net loss. The Medicare Part D subsidy is no longer tax exempt as a result of the Health Care and Education Reconciliation Act of 2010. Receipts of Medicare Part D subsidies reduce Company contributions to the employee plan. Expense components are listed below: 3 Months Ended March 31, 20102009 (in millions) Service cost$ 0.2 $ 0.2 Interest cost1.2 1.2 Expected return on plan assets(0.5)(0.5)Amortization of transition obligation0.5 0.5 Amortization of losses0.2 0.3 Accretion of regulatory liability0.2 0.2 Postretirement benefits expense$ 1.8 $ 1.9

Operations by Line of Business

Operations by Line of Business
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Operations by Line of Business	Questar's major lines of business include gas and oil exploration and production (Questar E&P and Wexpro), midstream field services (Gas Management), energy marketing (Energy Trading), interstate gas transportation (Questar Pipeline), and retail gas distribution (Questar Gas). Line-of-business information is presented according to senior management's basis for evaluating performance considering differences in the nature of products, services and regulation among other factors. Following is a summary of operations by line of business: 3 Months Ended March 31, 20102009 (in millions) Revenues from Unaffiliated CustomersQuestar E&P$319.7 $310.8 Wexpro6.2 2.4 Gas Management74.2 48.3 Energy Trading and other176.2 114.6 Market Resources 576.3 476.1 Questar Pipeline47.0 40.7 Questar Gas360.7 405.7 Total$984.0 $922.5 Revenues from Affiliated Companies Wexpro$ 60.5 $ 59.5 Gas Management6.7 6.7 Energy Trading and other147.4 93.2 Market Resources 214.6 159.4 Questar Pipeline19.5 19.1 Questar Gas0.3 Total$234.4 $178.5 Operating Income (Loss)Questar E&P$103.8 $127.2 Wexpro32.8 28.9 Gas Management37.1 19.6 Energy Trading and other2.0 8.3 Market Resources 175.7 184.0 Questar Pipeline33.5 29.3 Questar Gas58.6 57.2 Corporate(0.1)Total$267.7 $270.5Net Income (Loss) Attributable to QuestarQuestar E&P$ 53.8 ($14.9)Wexpro21.2 18.8 Gas Management23.2 11.4 Energy Trading and other1.1 5.4 Market Resources 99.3 20.7 Questar Pipeline17.2 14.7 Questar Gas33.1 31.8 Corporate0.7 Total$150.3 $67.2

Questar Considering Spinoff of

Questar Considering Spinoff of Market Resources Excluding Wexpro
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Questar Considering Spinoff of Market Resources Excluding Wexpro	On April 21, 2010, Questar Corporation announced it is considering a possible tax-free spinoff of Market Resources and its subsidiaries excluding Wexpro. After the spinoff, Questar Corporation would remain an integrated natural gas company comprised of subsidiaries Wexpro, Questar Pipeline, and Questar Gas. On April 28, 2010, the Internal Revenue Service, in a private letter ruling, confirmed that the proposed spinoff would be a tax-free transaction. Receipt of the referenced private letter ruling is among several precedent conditions to consummation of the proposed spin transaction, including board approval. Subject to those precedent conditions, the spinoff transaction may occur in the second half of 2010. On April 22, 2010, Moody's Investors Service placed its Baa3 rating of Market Resources' long-term debt under review for possible downgrade and Standard & Poor's placed its BBB+ rating of Market Resources' long-term debt on CreditWatch with negative implications. Moody's affirmed its A3 rating of long-term debt issued by Questar Pipeline and Questar Gas and Standard & Poor's placed the BBB+ ratings of long-term debt issued by Questar Pipeline and Questar Gas on CreditWatch with positive implications. Moody's affirmed its P-2 rating of Questar's short-term debt and Standard & Poor's placed its A-2 rating on Questar's short-term debt on CreditWatch with positive implications.

Questar Gas General Rate Case

Questar Gas General Rate Case
	3 Months Ended Mar. 31, 2010
Notes To Financial Statements [Abstract]
Questar Gas General Rate Case	On April 8, 2010, the Public Service Commission of Utah (PSCU) approved a stipulated settlement of Questar Gas's Utah general rate case. The settlement increases Questar Gas's allowed return on equity from 10.0% to 10.35% and extends the existing conservation enabling tariff (CET). The settlement also provides for a rate-tracking mechanism to allow for recovery of the capital costs associated with Questar Gas's high-pressure natural gas feeder-line replacement program.

Document Information

Document Information
	3 Months Ended Mar. 31, 2010
Document Information [Text Block]
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Jun. 30, 2009
Entity [Text Block]
Entity Registrant Name	Questar Corporation
Entity Central Index Key	0000751652
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float		$5,400,000,000
Entity Common Stock Shares Outstanding	175,093,545
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1