Questar Reports First-Quarter 2012 Net Income of $75 Million

Questar Corporation (NYSE:STR) reported first-quarter net income of
$75.2 million, or $0.42 per diluted share compared to first-quarter 2011
net income of $69.9 million, or $0.39 per diluted share. Earnings before
interest, taxes, depreciation and amortization (EBITDA) for the quarter
were $175.2 million compared to $165.9 million in the year-ago period.
Return on average common equity (ROE) was 19.6% for the 12 months ended
March 31, 2012, compared to 16.7% in the year-ago period.

^(a) Management defines EBITDA as net income (loss) before
gains and losses from asset sales, interest expense, depreciation,
depletion and amortization, abandonments and impairments, other special
items and income taxes. See computations in attached schedule.

'The year has started off well for Questar,? said Ronald W. Jibson,
Questar president and CEO. 'First-quarter 2012 results at each of our
primary business units exceeded last year's first quarter performance
and were in line with our expectations. Net income increased 8% to over
$75 million compared to the 2011 period. Our business units also
generated more than $175 million of EBITDA, a 6% increase from 2011.
Individually, Questar Gas grew net income by 4%, Wexpro by 9% and
Questar Pipeline by 8% compared to 2011. With one good quarter behind
us, we remain confident in our ability to deliver on our previous 2012
earnings guidance of $1.15 to $1.19 per diluted share.?

Other first-quarter 2012 highlights include:

• 
  Questar Gas's investment in its feeder-line replacement program was
  $17 million in the quarter compared to $7 million in the prior-year
  quarter.
  
• 
  Wexpro grew its investment base by 11% to $492.5 million, up from
  $445.3 million in 2011's first quarter.
  
• 
  Questar Pipeline's transportation revenues were up, primarily due to
  the Overthrust expansion that was put into service in March 2011.
  
• 
  Questar's consolidated net cash flow from operating activities before
  working capital changes increased $16 million to $162 million in the
  first quarter of 2012 compared to the 2011 period, due to higher net
  income and higher deferred taxes aided by 50% bonus depreciation.
  
• 
  Questar repurchased $6.6 million of its common stock in the quarter,
  with plans to accelerate repurchases through the remainder of 2012, as
  it seeks to reduce outstanding share count to approximately 175
  million shares.
  
• 
  In March 2012, Questar Corporation terminated the $125 million
  fixed-to-floating interest rate swap of its 2.75% five-year notes,
  resulting in a $7.2 million deferred gain, which will be amortized
  against annual interest expense over the remaining 3.8-year life of
  the notes.
  
• 
  Questar formed a new unregulated subsidiary, Questar Fueling Company,
  to provide consulting, design, packaging and installation of natural
  gas vehicle (NGV) fueling stations across the country. The new
  subsidiary will not affect Questar Gas's development and operation of
  its regulated NGV fueling stations.
  

Questar Gas

Questar Gas grew first quarter 2012 net income to $34.9 million, up 4%
from the first quarter of 2011, and generated $74.8 million of EBITDA in
the 2012 quarter. On a financial basis, Questar Gas earned a 10.3% ROE
for the 12 months ended March 31, 2012. Changes in Questar Gas margin
(revenues less cost of gas sold) are summarized in the following table:

Questar Gas served 923,272 customers as of March 31, 2012, an increase
of 9,218 customers, or 1% from the same time last year. New customers
increased margin by $1 million. Changes in margin from
demand-side-management (DSM) cost-recovery revenues are offset by
equivalent changes in the program's expenses. Combined operating and
maintenance (O&M) and general and administrative (G&A) expenses,
excluding DSM costs, were $37 per customer for the three months ended
March 31, 2012, compared to $39 per customer a year earlier.

Safety and reliability is a focus for Questar Gas. Questar Gas is
currently undertaking a multi-year feeder-line and
infrastructure-replacement and upgrade program. The current emphasis is
on replacing aging high-pressure, large-diameter steel pipe in
high-consequence areas. During the past five years, Questar Gas has
installed about 69 miles of pipe under this program. In the first
quarter of 2012, the company installed about six miles of pipe. Questar
Gas expects to spend about $55 million on the replacement program in
2012. In 2010, Utah regulators approved an infrastructure-cost-tracking
mechanism for the replacement program, insuring timely inclusion of
related expenditures into rate base. Questar Gas recognized $2.2 million
of increased margin due to this program in the first quarter of 2012.

Wexpro

Wexpro grew first-quarter 2012 net income to $24.3 million, an increase
of 9% from the first quarter of 2011, and generated $54.5 million of
EBITDA in the current quarter, driven by a higher average investment
base. Wexpro earned a 20.0% after-tax return on average investment base
for the 12 months ended March 31, 2012, while growing its investment
base 11% to $492.5 million, compared to $445.3 million in the prior-year
period. Wexpro produced about 53 billion cubic feet (Bcf) of
cost-of-service gas in the 12 months ended March 31, 2012, compared to
about 50 Bcf for the 12 months ended March 31, 2011. 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. Wexpro's natural gas production currently comprises
just over half of the utility's annual gas-supply needs. A summary of
changes in Wexpro's investment base is provided below:

Questar Pipeline

Questar Pipeline grew first-quarter 2012 net income to $16.6 million, up
8% from the first quarter of 2011, and generated $46.2 million of EBITDA
in the 2012 quarter. Questar Pipeline earned an 11.5% ROE for the 12
months ended March 31, 2012. The net income increase was driven by
additional transportation revenues, including the Overthrust Loop
Expansion Project that was placed in service in March of 2011, and from
a reduction in G&A expenses. Natural gas liquids (NGL) revenues were
flat in the first quarter of 2012 compared to the prior-year period,
reflecting NGL sales volumes that were down 6% and prices that were up
5%. Even with the expansion project in service, Questar Pipeline's O&M
and G&A costs were down 5% for the recent quarter when compared to the
same quarter in 2011, primarily due to lower allocated employee-related
costs. O&M and G&A expenses for the first quarter of 2012 totaled $0.09
per decatherm transported, about $0.02 lower than the first quarter of
2011. The performance in the first quarter of 2012 also fully reflected
the interest cost of the recent $180 million of debt refinancing
completed in December 2011. A summary of changes in Questar Pipeline
revenues is provided below:

At March 31, 2012, Questar Pipeline held net firm-transportation
contracts totaling 4,947 thousand decatherms (Mdth) per day, essentially
unchanged from 4,954 Mdth per day at March 31, 2011, when the Overthrust
Loop expansion went into service. The modest increase in transportation
revenues was from incremental transportation volumes contracted on the
Overthrust system partially offset by lower interruptible transportation
revenues and contract reductions.

2012 earnings guidance affirmed

Questar management estimates that earnings could range from $1.15 to
$1.19 per diluted share, unchanged from prior guidance. 'We remain
confident in our guidance range despite continuing low natural gas
prices and certain expense challenges,? Jibson said. 'Wexpro should
continue to grow its investment base and earnings. Questar Gas's growth
should continue through normal customer growth and its ongoing
pipeline-replacement program. Continued strong cash flow generation from
Wexpro and Questar Pipeline will support Questar's capital needs,
dividend growth and the share repurchase program.?

First-Quarter 2012 earnings teleconference

Questar management will discuss first-quarter 2012 results and the
outlook for the remainder of 2012 in a conference call with investors
Wednesday, April 25, 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:

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

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 information regarding EBITDA, which is a non-GAAP financial
measure. The Company believes that this non-GAAP financial measure is
useful to investors because it provides an alternative method for
assessing the Company's ongoing operating results. The Company's
management uses this non-GAAP financial measure 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.

Management defines EBITDA as net income (loss) before the following
items: net (gain) loss from asset sales, interest expense, depreciation,
depletion and amortization, abandonments and impairments, other special
items and income taxes. Management believes EBITDA is an important
measure of the Company's cash flow and liquidity, and a key measure for
comparing the Company's financial performance to other companies.

The following table reconciles Questar's net income (loss) to EBITDA for
the three months ended March ?31, 2012:

The following table reconciles Questar's net income (loss) to EBITDA for
the three months ended March ?31, 2011: