QUESTAR CORP - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003.

		OR

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		FOR THE TRANSITION PERIOD FROM TO .

Commission File Number 1-8796

QUESTAR CORPORATION

(Exact name of registrant as specified in its charter)

State of Utah		87-0407509
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification Number)

P.O. Box 45433 180 East 100 South Salt Lake City, Utah		84145-0433
(Address of principal executive offices)		(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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act.)

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.

Class		Outstanding as of October 31, 2003
Common Stock, without par value with attached Common Stock Purchase Rights		83,043,728 Shares

Questar Corporation and Subsidiaries

Form 10-Q for the Quarterly Period Ended September 30, 2003

TABLE OF CONTENTS

PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Income Statements	3

	Condensed Consolidated Balance Sheets	4

	Condensed Consolidated Statements of Cash Flows	5

	Notes Accompanying Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	21

Item 4.	Controls and Procedures	26


PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	27

Item 6.	Exhibits and Reports on Form 8-K	28

	Signatures	29

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

QUESTAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	3 Months Ended September 30,						9 Months Ended September 30,					12 Months Ended September 30,
	2003			2002			2003			2002		2003		2002
	(In Thousands, Except Per Share Amounts)
REVENUES
Questar Market Resources	$	179,980		$	108,877		$	549,153		$	357,580	$	714,049	$	489,906
Questar Regulated Services
Natural gas distribution	71,054			59,347			396,162			402,309		587,688		612,541
Natural gas transmission	17,777			18,015			55,417			44,855		76,837		58,409
Other	1,328			770			3,686			2,553		5,293		3,691
Corporate and other operations	3,364			3,661			9,558			10,520		12,959		19,702
TOTAL REVENUES	273,503			190,670			1,013,976			817,817		1,396,826		1,184,249

OPERATING EXPENSES
Cost of natural gas and other products sold	79,423			17,328			350,723			243,414		503,051		405,858
Operating and maintenance	66,307			67,368			208,355			206,523		286,149		287,700
Depreciation, depletion and amortization	47,536			46,953			141,172			136,723		189,401		179,906
Distribution rate-refund obligation	1,462						23,462					23,462
Exploration	961			1,102			3,174			4,983		4,277		7,952
Abandonment and impairment of gas, oil and other properties	1,087			1,411			2,062			2,466		10,779		3,553
Production and other taxes	17,882			10,329			52,413			33,933		62,672		41,878
TOTAL OPERATING EXPENSES	214,658			144,491			781,361			628,042		1,079,791		926,847

OPERATING INCOME	58,845			46,179			232,615			189,775		317,035		257,402

Interest and other income	1,818			1,329			6,617			17,894		45,390		31,689
Earnings from unconsolidated affiliates	1,329			6,328			3,687			10,090		5,374		10,974
Minority interest	38			4			168			301		368		572
Debt expense	(17,306		)	(20,488		)	(53,734		)