Exhibit 99.3
QUESTAR CORPORATION
UNAUDITED PRO FORMA
CONSOLIDATED FINANCIAL INFORMATION
QEP Resources, Inc. Separation
After the Distribution Date of the spinoff of QEP Resources, Inc. (QEP Resources) to the shareholders of Questar Corporation (Questar or Company), Questar will not own any shares of QEP Resources common stock and, will no longer consolidate QEP Resources’ financial results. The historical financial results of QEP Resources will be reflected in the Company’s consolidated financial statements as discontinued operations. Wexpro Company (Wexpro) remains a wholly-owned subsidiary of Questar, with its financial results included in the Company’s consolidated financial statements as a component of continuing operations.
Pro Forma Information
The accompanying unaudited pro forma condensed consolidated balance sheet of Questar as of March 31, 2010, is presented as if the separation had occurred on March 31, 2010. The accompanying unaudited pro forma consolidated statements of income of Questar for the three months ended March 31, 2010 and the years ended December 31, 2009, 2008 and 2007 are presented as if the separation had occurred on January 1, 2007.
The accompanying unaudited pro forma consolidated financial information is presented based on information available, is intended for informational purposes only and is not necessarily indicative of and does not purport to represent the financial condition or operating results that would have actually occurred had the separation occurred as described, nor is it necessarily indicative of Questar’s future financial condition or operating results. In addition, the accompanying unaudited pro forma consolidated financial information does not reflect actions that may be undertaken by management after the separation. The accompanying unaudited pro forma consolidated financial information should be read in conjunction with the notes thereto and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” and the Company’s consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010.
Questar’s independent registered public accounting firm has not examined, reviewed, compiled or applied agreed upon procedures to the unaudited pro forma consolidated historical financial information presented herein and, accordingly, assumes no responsibility for it.
The following is a brief description of the amounts recorded under each of the column headings in the accompanying unaudited pro forma consolidated balance sheet and the unaudited pro forma consolidated statements of income:
Historical Questar
This column reflects Questar’s historical financial position as of March 31, 2010, and historical operating results for the three months ended March 31, 2010 and the years ended December 31, 2009, 2008, and 2007 prior to any pro forma adjustments described under the headings “QEP Resources Spinoff” and “Other Adjustments” below.
QEP Resources Spinoff
This column reflects QEP Resources’ historical financial position as of March 31, 2010, and its historical operating results for the three months ended March 31, 2010 and the years ended December 31, 2009, 2008 and 2007, excluding Wexpro.
Other Adjustments
This column represents pro forma adjustments for transactions between Questar and QEP Resources that were previously eliminated in consolidation or that arose as a direct result of the QEP Resources Spinoff, and are reflected in the Company’s consolidated financial position and results of operations upon the completion of the separation. These adjustments are more fully described in the notes to unaudited pro forma consolidated financial information.
1
QUESTAR CORPORATION
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 2010
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Historical
Questar | | | QEP(1)
Resources
Spinoff | | | Other
Adjustments | | | Pro Forma
Questar | |
| | | (in millions) | |
ASSETS | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | |
Notes receivable | | | | | | $ | (27.9 | ) | | $ | 30.9 | (a),(b) | | $ | 3.0 | |
Accounts receivable, net | | $ | 397.4 | | | | (237.2 | ) | | | 25.1 | (b) | | | 185.3 | |
Fair value of derivative contracts | | | 313.3 | | | | (313.3 | ) | | | | | | | | |
Inventories | | | 107.8 | | | | (74.8 | ) | | | | | | | 33.0 | |
Prepaid expenses and other | | | 37.7 | | | | (31.4 | ) | | | | | | | 6.3 | |
Regulatory assets | | | 38.1 | | | | | | | | | | | | 38.1 | |
Deferred income taxes - current | | | | | | | | | | | 14.3 | (c) | | | 14.3 | |
| | | | | | | | | | | | | | | | |
Total Current Assets | | | 894.3 | | | | (684.6 | ) | | | 70.3 | | | | 280.0 | |
| | | | | | | | | | | | | | | | |
Property, Plant and Equipment | | | 11,846.4 | | | | (7,466.9 | ) | | | | | | | 4,379.5 | |
Accumulated depreciation, depletion and amortization | | | (3,902.2 | ) | | | 2,244.9 | | | | | | | | (1,657.3 | ) |
| | | | | | | | | | | | | | | | |
Net Property, Plant and Equipment | | | 7,944.2 | | | | (5,222.0 | ) | | | | | | | 2,722.2 | |
| | | | | | | | | | | | | | | | |
Investment in unconsolidated affiliates | | | 72.4 | | | | (44.1 | ) | | | | | | | 28.3 | |
Goodwill | | | 69.9 | | | | (60.1 | ) | | | | | | | 9.8 | |
Regulatory assets | | | 22.4 | | | | | | | | | | | | 22.4 | |
Fair value of derivative contracts | | | 170.4 | | | | (170.4 | ) | | | | | | | | |
Other noncurrent assets | | | 33.8 | | | | (8.3 | ) | | | | | | | 25.5 | |
| | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 9,207.4 | | | $ | (6,189.5 | ) | | $ | 70.3 | | | $ | 3,088.2 | |
| | | | | | | | | | | | | | | | |
| | | | |
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | |
Checks outstanding in excess of cash balances | | $ | 10.4 | | | $ | (9.6 | ) | | | | | | $ | 0.8 | |
Short-term debt | | | 134.5 | | | | | | | $ | 200.0 | (a) | | | 334.5 | |
Notes payable | | | | | | | (53.0 | ) | | | 80.9 | (b) | | | 27.9 | |
Accounts payable and accrued expenses | | | 530.5 | | | | (339.0 | ) | | | 15.9 | (b) | | | 207.4 | |
Fair value of derivative contracts | | | 139.5 | | | | (139.5 | ) | | | | | | | | |
Regulatory liabilities | | | 10.6 | | | | | | | | | | | | 10.6 | |
Deferred income taxes - current | | | 35.8 | | | | (50.1 | ) | | | 14.3 | (c) | | | | |
Current portion of long-term debt | | | 150.0 | | | | (150.0 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Current Liabilities | | | 1,011.3 | | | | (741.2 | ) | | | 311.1 | | | | 581.2 | |
| | | | | | | | | | | | | | | | |
Long-term debt, less current portion | | | 2,029.9 | | | | (1,198.7 | ) | | | | | | | 831.2 | |
Deferred income taxes | | | 1,638.0 | | | | (1,258.7 | ) | | | | | | | 379.3 | |
Asset retirement obligations | | | 196.0 | | | | (138.5 | ) | | | | | | | 57.5 | |
Defined benefit pension plan and other postretirement benefits | | | 210.6 | | | | (9.2 | ) | | | 9.2 | (b) | | | 210.6 | |
Fair value of derivative contracts | | | 111.7 | | | | (111.7 | ) | | | | | | | | |
Other long-term liabilities | | | 130.2 | | | | (42.0 | ) | | | | | | | 88.2 | |
EQUITY | | | | | | | | | | | | | | | | |
Common Shareholders’ Equity | | | 3,825.4 | | | | (2,635.2 | ) | | | (250.0 | )(a) | | | 940.2 | |
Noncontrolling interest | | | 54.3 | | | | (54.3 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Equity | | | 3,879.7 | | | | (2,689.5 | ) | | | (250.0 | ) | | | 940.2 | |
| | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND EQUITY | | $ | 9,207.4 | | | $ | (6,189.5 | ) | | $ | 70.3 | | | $ | 3,088.2 | |
| | | | | | | | | | | | | | | | |
See notes to unaudited pro forma consolidated financial information
2
QUESTAR CORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
Three Months Ended March 31, 2010
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Historical
Questar | | | QEP(1)
Resources
Spinoff | | | Other
Adjustments | | | Pro Forma
Questar | |
| | | (in millions, except per share amounts) | |
| | | | |
REVENUES | | $ | 984.0 | | | $ | (580.1 | ) | | $ | 10.7 | (d) | | $ | 414.6 | |
| | | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Cost of natural gas and other products sold (excluding operating expenses shown separately) | | | 325.8 | | | | (177.8 | ) | | | 10.3 | (d) | | | 158.3 | |
Operating and maintenance | | | 103.5 | | | | (51.8 | ) | | | 0.1 | (d) | | | 51.8 | |
General and administrative | | | 51.2 | | | | (25.3 | ) | | | 0.3 | (d) | | | 26.2 | |
Production and other taxes | | | 37.5 | | | | (22.9 | ) | | | | | | | 14.6 | |
Depreciation, depletion and amortization | | | 186.3 | | | | (147.4 | ) | | | | | | | 38.9 | |
Exploration | | | 3.6 | | | | (3.6 | ) | | | | | | | | |
Abandonment and impairment | | | 7.6 | | | | (7.6 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Operating Expenses | | | 715.5 | | | | (436.4 | ) | | | 10.7 | | | | 289.8 | |
Net loss from asset sales | | | (0.8 | ) | | | 0.8 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
OPERATING INCOME | | | 267.7 | | | | (142.9 | ) | | | | | | | 124.8 | |
Interest and other income | | | 3.5 | | | | (0.9 | ) | | | 0.2 | (d) | | | 2.8 | |
Income from unconsolidated affiliates | | | 1.8 | | | | (0.8 | ) | | | | | | | 1.0 | |
Interest expense | | | (34.1 | ) | | | 20.0 | | | | (0.2 | )(d) | | | (14.3 | ) |
| | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | 238.9 | | | | (124.6 | ) | | | | | | | 114.3 | |
Income taxes | | | (88.0 | ) | | | 45.9 | | | | | | | | (42.1 | ) |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS | | | 150.9 | | | | (78.7 | ) | | | | | | | 72.2 | |
Net income from continuing operations attributable to noncontrolling interest | | | (0.6 | ) | | | 0.6 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO QUESTAR | | $ | 150.3 | | | $ | (78.1 | ) | | | | | | $ | 72.2 | |
| | | | | | | | | | | | | | | | |
|
(1) Excludes Wexpro | |
| | | |
Earnings from continuing operations per common share attributable to Questar | | | | | | | | | | | | | |
Basic | | $ | 0.86 | | | | | | | | | | | $ | 0.41 | |
Diluted | | | 0.85 | | | | | | | | | | | | 0.41 | |
Weighted-average common shares outstanding (e) | | | | | | | | | | | | | | | | |
Used in basic calculation | | | 174.9 | | | | | | | | | | | | 174.9 | |
Used in diluted calculation | | | 177.2 | | | | | | | | | | | | 177.2 | |
See notes to unaudited pro forma consolidated financial information
3
QUESTAR CORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
For the Year Ended December 31, 2009
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Historical
Questar | | | QEP(1)
Resources
Spinoff | | | Other
Adjustments | | | Pro Forma
Questar | |
| | | (in millions, except per share amounts) | |
| | | | |
REVENUES | | $ | 3,038.0 | | | $ | (1,972.5 | ) | | $ | 44.4 | (d) | | $ | 1,109.9 | |
| | | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Cost of natural gas and other products sold (excluding operating expenses shown separately) | | | 716.2 | | | | (427.8 | ) | | | 43.0 | (d) | | | 331.4 | |
Operating and maintenance | | | 369.2 | | | | (201.7 | ) | | | 0.1 | (d) | | | 167.6 | |
General and administrative | | | 183.8 | | | | (91.7 | ) | | | 1.3 | (d) | | | 93.4 | |
Production and other taxes | | | 105.3 | | | | (62.9 | ) | | | | | | | 42.4 | |
Depreciation, depletion and amortization | | | 706.2 | | | | (559.1 | ) | | | | | | | 147.1 | |
Exploration | | | 25.0 | | | | (25.0 | ) | | | | | | | | |
Abandonment and impairment | | | 20.3 | | | | (20.3 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Operating Expenses | | | 2,126.0 | | | | (1,388.5 | ) | | | 44.4 | | | | 781.9 | |
Net gain from asset sales | | | 1.7 | | | | (1.5 | ) | | | | | | | 0.2 | |
| | | | | | | | | | | | | | | | |
OPERATING INCOME | | | 913.7 | | | | (585.5 | ) | | | | | | | 328.2 | |
Interest and other income | | | 16.0 | | | | (4.5 | ) | | | 1.0 | (d) | | | 12.5 | |
Income from unconsolidated affiliates | | | 6.5 | | | | (2.7 | ) | | | | | | | 3.8 | |
Unrealized and realized loss on basis-only swaps | | | (189.6 | ) | | | 189.6 | | | | | | | | | |
Interest expense | | | (128.7 | ) | | | 70.1 | | | | (1.0 | )(d) | | | (59.6 | ) |
| | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | 617.9 | | | | (333.0 | ) | | | | | | | 284.9 | |
Income taxes | | | (222.0 | ) | | | 117.6 | | | | | | | | (104.4 | ) |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS | | | 395.9 | | | | (215.4 | ) | | | | | | | 180.5 | |
Net income from continuing operations attributable to noncontrolling interest | | | (2.6 | ) | | | 2.6 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO QUESTAR | | $ | 393.3 | | | $ | (212.8 | ) | | | | | | $ | 180.5 | |
| | | | | | | | | | | | | | | | |
|
(1) Excludes Wexpro | |
| | | |
Earnings from continuing operations per common share attributable to Questar | | | | | | | | | | | | | |
Basic | | $ | 2.26 | | | | | | | | | | | $ | 1.04 | |
Diluted | | | 2.23 | | | | | | | | | | | | 1.02 | |
Weighted-average common shares outstanding (e) | | | | | | | | | | | | | | | | |
Used in basic calculation | | | 174.1 | | | | | | | | | | | | 174.1 | |
Used in diluted calculation | | | 176.3 | | | | | | | | | | | | 176.3 | |
See notes to unaudited pro forma consolidated financial information
4
QUESTAR CORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
For the Year Ended December 31, 2008
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Historical
Questar | | | QEP(1)
Resources
Spinoff | | | Other
Adjustments | | | Pro Forma
Questar | |
| | | (in millions, except per share amounts) | |
| | | | |
REVENUES | | $ | 3,465.1 | | | $ | (2,318.8 | ) | | $ | 55.6 | (d) | | $ | 1,201.9 | |
| | | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Cost of natural gas and other products sold (excluding operating expenses shown separately) | | | 1,007.6 | | | | (604.6 | ) | | | 54.4 | (d) | | | 457.4 | |
Operating and maintenance | | | 367.6 | | | | (220.2 | ) | | | 0.1 | (d) | | | 147.5 | |
General and administrative | | | 166.1 | | | | (78.1 | ) | | | 1.1 | (d) | | | 89.1 | |
Production and other taxes | | | 164.9 | | | | (106.9 | ) | | | | | | | 58.0 | |
Depreciation, depletion and amortization | | | 494.4 | | | | (361.5 | ) | | | | | | | 132.9 | |
Exploration | | | 29.3 | | | | (29.3 | ) | | | | | | | | |
Abandonment and impairment | | | 59.4 | | | | (45.4 | ) | | | | | | | 14.0 | |
| | | | | | | | | | | | | | | | |
Total Operating Expenses | | | 2,289.3 | | | | (1,446.0 | ) | | | 55.6 | | | | 898.9 | |
Net gain from asset sales | | | 64.7 | | | | (60.4 | ) | | | | | | | 4.3 | |
| | | | | | | | | | | | | | | | |
OPERATING INCOME | | | 1,240.5 | | | | (933.2 | ) | | | | | | | 307.3 | |
Interest and other income | | | 26.7 | | | | (10.2 | ) | | | 6.1 | (d) | | | 22.6 | |
Income from unconsolidated affiliates | | | 2.3 | | | | (1.7 | ) | | | | | | | 0.6 | |
Unrealized and realized loss on basis-only swaps | | | (79.2 | ) | | | 79.2 | | | | | | | | | |
Interest expense | | | (119.5 | ) | | | 61.7 | | | | (6.1 | )(d) | | | (63.9 | ) |
| | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | 1,070.8 | | | | (804.2 | ) | | | | | | | 266.6 | |
Income taxes | | | (378.0 | ) | | | 283.6 | | | | | | | | (94.4 | ) |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS | | | 692.8 | | | | (520.6 | ) | | | | | | | 172.2 | |
Net income from continuing operations attributable to noncontrolling interest | | | (9.0 | ) | | | 9.0 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO QUESTAR | | $ | 683.8 | | | $ | (511.6 | ) | | | | | | $ | 172.2 | |
| | | | | | | | | | | | | | | | |
|
(1) Excludes Wexpro | |
| | | |
Earnings from continuing operations per common share attributable to Questar | | | | | | | | | | | | | |
Basic | | $ | 3.96 | | | | | | | | | | | $ | 1.00 | |
Diluted | | | 3.88 | | | | | | | | | | | | 0.98 | |
Weighted-average common shares outstanding (e) | | | | | | | | | | | | | | | | |
Used in basic calculation | | | 172.8 | | | | | | | | | | | | 172.8 | |
Used in diluted calculation | | | 176.1 | | | | | | | | | | | | 176.1 | |
See notes to unaudited pro forma consolidated financial information
5
QUESTAR CORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
For the Year Ended December 31, 2007
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Historical
Questar | | | QEP(1)
Resources
Spinoff | | | Other
Adjustments | | | Pro Forma
Questar | |
| | | (in millions, except per share amounts) | |
| | | | |
REVENUES | | $ | 2,726.6 | | | $ | (1,688.1 | ) | | $ | 41.7 | (d) | | $ | 1,080.2 | |
| | | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Cost of natural gas and other products sold (excluding operating expenses shown separately) | | | 917.1 | | | | (496.5 | ) | | | 40.4 | (d) | | | 461.0 | |
Operating and maintenance | | | 293.9 | | | | (171.4 | ) | | | 0.3 | (d) | | | 122.8 | |
General and administrative | | | 170.1 | | | | (76.8 | ) | | | 1.0 | (d) | | | 94.3 | |
Production and other taxes | | | 101.0 | | | | (61.6 | ) | | | | | | | 39.4 | |
Depreciation, depletion and amortization | | | 369.1 | | | | (263.9 | ) | | | | | | | 105.2 | |
Exploration | | | 22.0 | | | | (22.0 | ) | | | | | | | | |
Abandonment and impairment | | | 11.2 | | | | (11.2 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Operating Expenses | | | 1,884.4 | | | | (1,103.4 | ) | | | 41.7 | | | | 822.7 | |
Net loss from asset sales | | | (0.9 | ) | | | 0.6 | | | | | | | | (0.3 | ) |
| | | | | | | | | | | | | | | | |
OPERATING INCOME | | | 841.3 | | | | (584.1 | ) | | | | | | | 257.2 | |
Interest and other income | | | 14.3 | | | | (7.8 | ) | | | 9.5 | (d) | | | 16.0 | |
Income from unconsolidated affiliates | | | 8.9 | | | | (8.9 | ) | | | | | | | | |
Unrealized and realized gain on basis-only swaps | | | 5.7 | | | | (5.7 | ) | | | | | | | | |
Interest expense | | | (72.2 | ) | | | 33.6 | | | | (9.5 | )(d) | | | (48.1 | ) |
| | | | | | | | | | | | | | | | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | | 798.0 | | | | (572.9 | ) | | | | | | | 225.1 | |
Income taxes | | | (290.6 | ) | | | 211.3 | | | | | | | | (79.3 | ) |
| | | | | | | | | | | | | | | | |
NET INCOME FROM CONTINUING OPERATIONS | | $ | 507.4 | | | $ | (361.6 | ) | | | | | | $ | 145.8 | |
| | | | | | | | | | | | | | | | |
| | | | |
(1) Excludes Wexpro | | | | | | | | | | | | | | | | |
| | | |
Earnings from continuing operations per common share | | | | | | | | | | | | | |
Basic | | $ | 2.95 | | | | | | | | | | | $ | 0.85 | |
Diluted | | | 2.88 | | | | | | | | | | | | 0.83 | |
Weighted-average common shares outstanding (e) | | | | | | | | | | | | | | | | |
Used in basic calculation | | | 172.0 | | | | | | | | | | | | 172.0 | |
Used in diluted calculation | | | 175.9 | | | | | | | | | | | | 175.9 | |
See notes to unaudited pro forma consolidated financial information
6
Notes to Unaudited Pro Forma Consolidated Financial Information
Note 1: Unaudited pro forma adjustments to condensed consolidated balance sheet as of March 31, 2010.
The pro forma adjustments to Questar’s unaudited consolidated balance sheet as of March 31, 2010, relate to (1) the elimination of the assets, liabilities and equity of QEP Resources, excluding Wexpro, and (2) other adjustments as follows:
| | (a) | An adjustment to reflect a $250.0 million cash contribution from Questar to QEP Resources in connection with the QEP Resources Spinoff and Wexpro Separation. |
| | (b) | Adjustments for transactions between Questar and QEP Resources that were eliminated in consolidation in the preparation of Questar’s historical consolidated financial statements, but that are reflected as assets and liabilities in the amounts presented under the column heading “Pro Forma Questar” upon the completion of the QEP Resources Spinoff and Wexpro Separation. |
| | (c) | A reclassification of deferred income taxes - current for presentation purposes. |
Note 2: Unaudited pro forma adjustments to consolidated statements of income for three months ended March 31, 2010 and the years ended December 31, 2009, 2008 and 2007.
The pro forma adjustments to Questar’s unaudited consolidated statements of income for the three months ended March 31, 2010, and for the years ended December 31, 2009, 2008 and 2007, relate to (1) the elimination of the results of operations of QEP Resources, excluding Wexpro, and (2) other adjustments as follows:
| | (d) | Adjustments to revenues, costs of products sold, operating and maintenance expenses, general and administrative expenses, interest income and interest expense related to transactions between Questar and QEP Resources that were eliminated in consolidation in the preparation of Questar’s historical consolidated financial statements, but that are reflected as revenues, costs of products sold, operating and maintenance expenses, general and administrative expenses, interest income and interest expense in the amounts presented under the column heading “Pro Forma Questar” upon the completion of the QEP Resources Spinoff and Wexpro Separation. |
Note 3: Earnings from continuing operations per common share attributable to Questar for three months ended March 31, 2010 and the years ended December 31, 2009, 2008 and 2007.
| | (e) | Because the QEP Resources Spinoff resulted in no change in number of Questar shares issued or outstanding, and no change in the number of future rights to acquire or receive shares, the basic and diluted weighted-average common shares outstanding are the same on a historical and a pro forma basis. |
7
