Questar’s Net Income Rises 19% in the 3rd Quarter

By Bloomberg News

Questar Corp., the oil- and natural-gas producer that owns Utah’s only gas utility, said third-quarter net income rose 19 percent, exceeding analysts’ estimates, on higher realized gas prices and cost controls.

Net income rose to $113.3 million, or 64 cents a share, from $95 million, or 54 cents, in the year-earlier period, the Salt Lake City- based company said Wednesday in a statement. Sales fell 10 percent to $497.4 million.

The company benefited from higher earnings at its Wexpro unit, which supplies gas to regulated utilities. The company had a $9 million gain from hedges, or locked-in prices, on about 82 percent of its output. Excluding the gain, Questar beat the average analysts’ estimate by 11 cents.

“They achieved the surprise by managing the purchase of gas and keeping costs low,” said Carol Coale, an analyst at Sanders Morris Harris Group in Houston.

Questar said it was paid an average of $6.44 per thousand cubic feet of gas, 12 percent higher than a year ago.

The cost of natural gas and other products sold in the quarter fell to $89.2 million from $183.7 million a year ago.

(c) 2007 Deseret News (Salt Lake City). Provided by ProQuest Information and Learning. All rights Reserved.