Questar earnings down 64 percent

Questar Corp., the parent company of natural-gas utility Questar Gas Co., reported Wednesday that profits fell 64 percent during the first quarter of 2009, compared with the same quarter last year.

Net income for the most recent quarter totaled $67.2 million, or 38 cents per share, compared with $185.8 million, or $1.05 per share, a year earlier.

The Salt Lake-based corporation attributed the declines to a net after-tax loss on natural-gas investments of $84.7 million, compared with a net after-tax gain of $8.6 million the year before.

"We're weathering the storm," Keith Rattie, Questar's chairman, president and chief executive officer, said in a news release announcing the quarterly figures.

"Our balance sheet is strong, we have adequate liquidity, and we remain focused on returns — we've shifted capital to projects that deliver acceptable returns even in today's distressed market," Rattie added.

Revenues for the 2009 first quarter for all Questar Corp. subsidiaries totaled $919.1 million, compared with just over $1 billion for the same period last year, the company news release said. Questar E&P reported a net loss — $14.9 million —for the most recent period, the only Questar Corp. subsidiary to do so. The subsidiary — which explores for, develops and produces natural gas and oil — reported net income of $96.5 million for the first quarter of 2008.

Subsidiary Questar Pipeline Co.'s net income fell 8 percent to $14.7 million in the first quarter of 2009 from the previous year, due to lower natural-gas liquids-production sales. Questar Gas, a regulated utility, earned $31.8 million, 4 percent higher than last year, driven by an increase in Utah general rates, effective in August 2008, and customer growth.

The company's quarterly financials were released after markets closed Wednesday. Questar Corp. shares closed at down 4 cents during the day, at $30.15 per share. The shares have ranged from $20.66 to $74.86 during the past year.

E-mail: jlee@desnews.com