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Gas industry

Questar Corp. Reports 7% Increase in 1994 Net Income

Strategic Insights

— 1 min read

Questar Corp., an integrated natural gas company, has announced a 7% increase in 1994 net income, reaching a record $87,543,000, or $2.16 per share, compared to $81,692,000, or $2.03 per share, in 1993. Despite a decline in gas prices and warmer-than-normal temperatures, the company demonstrated its ability to respond and prosper in difficult industry conditions. The chairman, R.D. Cash, highlighted the importance of Questar's integrated organization in achieving this success.

Key Takeaways:

  • Questar Corp. reported a 7% increase in 1994 net income to $87,543,000, with a net income of $2.16 per share, compared to $81,692,000, or $2.03 per share, in 1993.
  • The company's integrated structure allowed it to respond effectively to low gas and oil prices, warmer-than-normal temperatures, and declining natural gas production in 1994.
  • Questar's exploration and production companies earned $40,216,000 in 1994, an 11% increase from the prior year's total.
  • The company's average selling price for natural gas decreased from $1.85 per Mcf in 1993 to $1.78 in 1994.
  • Oil and natural gas liquids production increased by 467,000 barrels, or 24%, to 2,442,000 barrels in 1994.
  • Questar Pipeline's income increased to $25,829,000 in 1994 compared to $23,275,000 in 1993, with revenue from storage services up 88% to $27.6 million.
  • Mountain Fuel's income declined to $23,352,000 in 1994 due to higher allowed return on equity reduction and warmer temperatures in its service area.

Statistics:

  • 1994 net income: $87,543,000
  • Average Questar shares outstanding: 40.3 million
  • 1994 gas production: 37.7 billion cubic feet (Bcf)
  • Gas-marketing volumes: 88.9 million decatherms (dth)
  • Nextel Communications stock price decline: $38.1 million (after-tax write-down)
  • Mountain Fuel utility income: $23,352,000

Sources:

  • Questar Corp. press release, Feb. 13, 1995
  • PR Newswire, Feb. 13, 1995 (statement on file with the Federal Trade Commission)
  • Securities and Exchange Commission filing, 1994 annual report

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