UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED March 31, 2003. |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE TRANSITION PERIOD FROM TO . |
Commission File Number 1-8796
QUESTAR CORPORATION
(Exact name of registrant as specified in its charter)
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State of Utah |
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87-0407509 |
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(State or other jurisdiction of |
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(IRS Employer Identification |
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P.O. Box 45433 |
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84145-0433 |
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(Address of principal executive offices) |
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(Zip code) |
(801)
324-5000
(Registrant’s telephone number,
including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding as of April 30, 2003 |
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Common Stock,
without par value |
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82,653,780 Shares |
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
QUESTAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
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3 Months Ended |
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12 Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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(In Thousands, Except Per Share Amounts) |
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REVENUES |
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Questar Market Resources |
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$ |
213,193 |
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$ |
125,158 |
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$ |
610,511 |
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$ |
540,160 |
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Questar Regulated Services |
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Natural gas distribution |
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234,514 |
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260,958 |
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567,391 |
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653,169 |
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Natural gas transmission |
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18,136 |
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12,502 |
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71,909 |
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51,062 |
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Other |
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877 |
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841 |
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4,196 |
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4,228 |
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Corporate and other operations |
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3,084 |
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3,074 |
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13,931 |
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30,626 |
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TOTAL REVENUES |
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469,804 |
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402,533 |
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1,267,938 |
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1,279,245 |
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OPERATING EXPENSES |
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Cost of natural gas and other products sold |
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201,341 |
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178,528 |
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418,555 |
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522,381 |
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Operating and maintenance |
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73,837 |
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74,030 |
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284,124 |
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281,526 |
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Depreciation, depletion and amortization |
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47,938 |
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45,307 |
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187,583 |
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161,236 |
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Exploration |
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1,170 |
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2,748 |
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4,508 |
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8,667 |
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Abandonment and impairment of gas, oil and other properties |
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483 |
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306 |
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11,360 |
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4,927 |
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Production and other taxes |
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17,160 |
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11,409 |
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49,943 |
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46,582 |
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TOTAL OPERATING EXPENSES |
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341,929 |
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312,328 |
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956,073 |
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1,025,319 |
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OPERATING INCOME |
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127,875 |
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90,205 |
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311,865 |
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253,926 |
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Interest and other income |
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2,593 |
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7,406 |
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51,854 |
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27,535 |
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Earnings from unconsolidated affiliates |
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1,036 |
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657 |
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12,156 |
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702 |
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Minority interest |
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77 |
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170 |
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408 |
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1,450 |
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Debt expense |
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(18,916 |
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(20,036 |
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(80,001 |
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(69,277 |
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INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECTS |
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112,665 |
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78,402 |
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296,282 |
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214,336 |
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Income taxes |
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42,463 |
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28,250 |
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105,339 |
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75,258 |
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INCOME BEFORE CUMULATIVE EFFECTS |
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70,202 |
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50,152 |
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190,943 |
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139,078 |
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Cumulative effect of accounting change for asset retirement obligations, net of income taxes of $3,331 |
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(5,580 |
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(5,580 |
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Cumulative effect of accounting change for goodwill, net of $2,010 attributed to minority interest |
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(15,297 |
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(15,297 |
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NET INCOME |
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$ |
64,622 |
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$ |
34,855 |
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$ |
185,363 |
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$ |
123,781 |
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BASIC EARNINGS PER COMMON SHARE |
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Income before cumulative effects |
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$ |
0.86 |
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$ |
0.62 |
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$ |
2.33 |
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$ |
1.71 |
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Cumulative effects |
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(0.07 |
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(0.19 |
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(0.07 |
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(0.19 |
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Net income |
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$ |
0.79 |
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$ |
0.43 |
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$ |
2.26 |
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$ |
1.52 |
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DILUTED EARNINGS PER COMMON SHARE |
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Income before cumulative effects |
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$ |
0.84 |
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$ |
0.61 |
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$ |
2.30 |
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$ |
1.70 |
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Cumulative effects |
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(0.07 |
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(0.19 |
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(0.07 |
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(0.19 |
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Net income |
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$ |
0.77 |
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$ |
0.42 |
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$ |
2.23 |
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$ |
1.51 |
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Weighted average common shares outstanding |
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Used in basic calculation |
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82,222 |
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81,586 |
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81,972 |
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81,441 |
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Used in diluted calculation |
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83,453 |
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82,257 |
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82,903 |
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82,191 |
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Dividends per common share |
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$ |
0.185 |
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$ |
0.18 |
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$ |
0.73 |
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$ |
0.71 |
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See notes accompanying the consolidated financial statements
2
QUESTAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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March 31, |
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