Questar Reports Record Net Income of $208 Million for 2011

Questar Corporation (NYSE:STR) reported record net income of $207.9
million, or $1.16 per diluted share for 2011. Net income grew 8% over
2010 net income from continuing operations of $192.3 million, or $1.08
per diluted share, including an after-tax $8.8 million, or $0.05 per
diluted share charge for separation costs associated with the spinoff of
QEP Resources, Inc. completed on June 30, 2010. Excluding separation
charges, in 2010 Questar earned $201.1 million, or $1.13 per diluted
share. In the fourth quarter 2011, net income totaled $61.6 million, or
$0.34 per diluted share, compared to $63.7 million, or $0.36 per diluted
share for the fourth quarter of 2010.

^(a) Excludes $8.8 million ($0.05 per diluted share) after-tax
impact of separation costs in 2010. See computation in attached schedule.

'I am pleased to report that, in spite of the challenging economic
environment, all Questar business units achieved strong results in 2011.
The company also declared not one, but two dividend increases, totaling
16%, during 2011, thus making good our commitment to move aggressively
toward our target payout of about 60% of net income. Including the
recent increases, Questar has increased its dividend 39 times over the
last 39 years,? said Ronald W. Jibson, Questar president and CEO. 'We
delivered nearly $208 million of net income, a 3% increase over 2010.
Our business units also generated more than $540 million of EBITDA, a 3%
increase from 2010. Wexpro grew net income by 8% and its investment base
by 4% to $474.4 million compared to 2010. Questar Gas grew net income by
5%, while Questar Pipeline earnings improved 1% over 2010's results,?
Jibson added.

The Company also affirmed 2012 EPS guidance of $1.15 to $1.19 per
diluted share.

2011 Highlights

Other 2011 highlights include:

• 
  Wexpro earned a 20.0% after-tax return on an average investment base
  of $456.2 million, which was 4% higher than year-end 2010;
  
• 
  Wexpro's proved reserves rose 3% to 790.7 Bcfe as it replaced 144% of
  its 2011 cost-of-service production;
  
• 
  Questar Pipeline generated $6.5 million higher transportation
  revenues, which offset lower natural gas liquids (NGL) revenues in
  2011;
  
• 
  Questar Pipeline issued $180 million of 30-year notes in December to
  refinance notes paid off earlier in the year using short-term debt.
  For 2011, interest expense was $4.3 million lower than in 2010 as the
  company benefited from very low short-term interest rates;
  
• 
  Questar Gas earned its authorized return on equity for the seventh
  consecutive year;
  
• 
  Questar Gas increased feeder-line-replacement expenditures to $58.6
  million, as part of its ongoing commitment to pipeline integrity
  management;
  
• 
  Questar's consolidated net cash flow from operating activities before
  working capital changes increased $24.9 million to $484.1 million in
  2011 compared to 2010, aided by higher depreciation and deferred taxes
  from 100% bonus depreciation.
  

Wexpro results

Wexpro grew net income to $95.2 million, an increase of 8% from 2010 and
generated $213.9 million of EBITDA in 2011, driven by a higher average
investment base. Wexpro grew its investment base to $474.4 million at
year-end 2011, compared to $456.6 million at year-end 2010, a 4%
increase, and earned a 20.0% after-tax return on average investment base
in 2011. During 2011, Wexpro produced a record 50.5 billion cubic feet
of cost-of-service gas for Questar Gas, comprising 52% of the utility's
gas-supply needs. Under a long-standing agreement with the states of
Utah and Wyoming, Wexpro recovers its costs and earns an unlevered
after-tax return on its investment base. A summary of changes in
Wexpro's investment base is provided below:

Questar Pipeline results

Questar Pipeline grew net income to $67.9 million in 2011, up 1% from
2010, and generated $181.5 million of EBITDA, about the same as in 2010.
Questar Pipeline earned an 11.4% return on average equity in 2011. The
net income increase was driven by $6.5 million of higher transportation
revenues from the Overthrust Loop Expansion Project that was placed in
service in early 2011. Even with the expansion project in service,
Questar Pipeline's 2011 O&M and G&A costs were essentially flat when
compared to 2010. Lower interest expense in 2011 was offset by higher
depreciation expense and other taxes. The $180 million of redeemed notes
were ultimately refinanced in December by the issuance of 30-year notes.
A summary of Questar Pipeline revenues is provided below:

At December 31, 2011, Questar Pipeline held net firm-transportation
contracts totaling 4,973 thousand decatherms (Mdth) per day, compared to
4,744 Mdth per day at December 31, 2010, a 5% increase. The increase in
transportation revenues, previously noted, was from additional long-term
firm-transportation contracts associated with completion of the
Overthrust Loop project.

Increased transportation revenues were offset by decreased NGL revenues
in 2011. This decrease was anticipated and due to the 2011 activation of
a third-party processing plant upstream of Questar Pipeline's processing
facilities in Price, Utah. NGL sales revenues decreased 28% due to 45%
lower volumes in 2011 versus 2010. Average NGL prices rose 32% from 2010
to about $73.77 per barrel, net to Questar Pipeline.

O&M and G&A expenses for 2011 totaled $0.10 per decatherm transported,
about $0.01 lower than in 2010. As evidenced by the strong EBITDA for
the year, Questar Pipeline's continued strong cash flows will support
corporatewide capital projects, dividend growth and the share repurchase
program.

Questar Gas results

Questar Gas reported net income of $46.1 million in 2011, a 5% increase
over 2010, and generated $144.0 million of EBITDA. On a financial basis,
Questar Gas earned a 10.6% return on average equity in 2011. Changes in
Questar Gas margin (revenues less cost of gas sold) are summarized in
the following table:

As of December 31, 2011, Questar Gas served 919,236 customers, up 1.1%
from 909,570 customers at the same time last year. Changes in margin
from demand-side-management (DSM) cost-recovery revenues are offset by
equivalent changes in the program's expenses. O&M and G&A expenses,
excluding DSM costs, were up $4.4 million in 2011 versus 2010. O&M and
G&A expenses, excluding DSM costs, were $141 per customer in 2011,
compared to $138 per customer in the prior year.

Questar Gas's continuous focus on safety and reliability is demonstrated
by its multi-year feeder line and infrastructure-replacement and upgrade
program. Replacement expenditures amounted to $58.6 million in 2011,
compared to $39.3 million in 2010. The current emphasis has been on
replacing aging high-pressure large-diameter steel pipe in
high-consequence areas. In 2010, Utah regulators approved an
infrastructure-cost-tracking mechanism for this program.

2012 EPS guidance affirmed

For 2012, Questar estimates that EPS may range from $1.15 to $1.19 per
diluted share. 'Despite recent headwinds including lower natural gas
prices and higher pension and interest expenses, we remain confident in
our guidance range. Even with the impact of bonus depreciation, Wexpro's
investment base and earnings should continue to grow,? Jibson said.
'Questar Gas expects to grow its rate base through its multi-year
pipeline-replacement program investment and modest customer growth.
Questar Pipeline expects higher transportation revenues to offset lower
NGL revenues. Finally, continued strong cash flow generation from Wexpro
and Questar Pipeline will help support Questar's capital requirements,
dividend growth and the $100 million share repurchase program announced
last year,? Jibson added.

2011 earnings teleconference

Questar management will discuss 2011 results from continuing operations
and the outlook for 2012 in a conference call with investors Wednesday,
February 15, beginning at 9:30 a.m. ET. The call can be accessed on the
company website at www.questar.com.

About Questar Corporation

Questar is a Rockies-based integrated natural gas company with an
enterprise value of about $4.5 billion, operating through three
principal subsidiaries:

• Wexpro develops and produces natural gas on behalf of Questar
  Gas;
  
• Questar Pipeline operates interstate natural gas pipelines and
  storage facilities in the western U.S. and provides other energy
  services; and
  
• Questar Gas provides retail natural gas distribution in Utah,
  Wyoming and Idaho.
  

Forward-Looking Statements

This document may contain or incorporate by reference information that
includes or is based upon 'forward-looking statements' within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements give expectations or forecasts of future
events. You can identify these statements by the fact that they do not
relate strictly to historical or current facts. They use words such as
'anticipate,' 'estimate,' 'expect,' 'project,' 'intend,' 'plan,'
'believe,' and other words and terms of similar meaning in connection
with a discussion of future operating or financial performance. Any or
all forward-looking statements may turn out to be wrong. These
statements are based on current expectations and the current economic
environment. They involve a number of risks and uncertainties that are
difficult to predict. Actual results could differ materially from those
expressed or implied in the forward-looking statements. Factors that
could cause actual results to differ materially include, but are not
limited to the following:

• 
  general economic conditions, including the performance of financial
  markets and interest rates;
  
• 
  changes in industry trends;
  
• 
  changes in laws or regulations; and
  
• 
  other factors, most of which are beyond Questar's control.
  

Questar undertakes no obligation to publicly correct or update the
forward-looking statements in this document, in other documents, or on
the website to reflect future events or circumstances. All such
statements are expressly qualified by this cautionary statement.

For more information, visit Questar's website at www.questar.com

QUESTAR CORPORATION

NON-GAAP FINANCIAL MEASURES

(Unaudited)

In addition to financial measures calculated in accordance with
generally accepted accounting principles (GAAP), this press release
contains non-GAAP financial measures. The Company believes that such
non-GAAP financial measures are useful to investors because they provide
an alternative method for assessing the Company's ongoing operating
results. The Company's management uses these non-GAAP financial measures
for the same purpose, and for planning and forecasting purposes. The
presentation of non-GAAP financial measures is not meant to be a
substitute for financial measures in accordance with GAAP.

1. The following table reconciles GAAP income from continuing operations
and diluted earnings per common share to non-GAAP income from continuing
operations and diluted earnings per common share before separation costs
associated with the spinoff of QEP Resources, Inc. on June 30, 2010.