Net income jumps 32% at Questar

Higher natural gas prices and increased oil and gas production drove Salt Lake-based Questar Corp.'s net income in 2004 to $229.3 million, a 32 percent increase from $173.6 million in 2003.

Earnings per diluted share in 2004 were $2.67, up from $2.06 in 2003.

Keith Rattie, Questar's chief executive, said the company is one of the fastest-growing natural gas producers in the United States.

"In a year when most U.S. producers struggled to grow reserves and hold production flat, we bucked the industry trend," Rattie said. "We grew production by 12 percent and proved reserves by 24 percent."

Revenues for the 12 months ended Dec. 31 exceeded $1.9 billion compared to $1.5 billion during 2003.

Questar Gas Co., a regulated subsidiary, reported net income in 2004 at $31.5 million, up from $20.2 million in 2003.

However, net income in 2003 was reduced by a $15.5 million charge stemming from a Utah Public Service Commission order that denied the utility from recovering costs associated with a gas-processing plant near Price.

The order reduced Questar Gas Co.'s 2004 net income by $4.3 million after tax.

Questar Gas Co. reported 794,117 customers as of Dec. 31, up from 770,494 customers a year earlier.

On Wednesday, shares of Questar closed on the New York Stock Exchange at $51.85, up 85 cents. In the past year, they have ranged from $33.82 to $52.12.

Also Wednesday, Questar Corp. announced that Connie C. Holbrook, senior vice president, corporate general counsel and corporate secretary, and Glenn H. Robinson, vice president and chief information officer, will retire effective April 30.

Effective April 1, Thomas C. Jepperson will become corporate vice president and general counsel, and Abigail L. Jones will become corporate secretary and report to Jepperson.

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E-mail: danderton@desnews.com