Questar Reports First-Quarter 2013 Net Income of $72.9 Million

Questar Corporation (NYSE:STR) reported first-quarter 2013 net income of
$72.9 million, or $0.41 per diluted share compared to first-quarter 2012
net income of $75.2 million, or $0.42 per diluted share. Adjusted
earnings before interest, taxes, depreciation and amortization (Adjusted
EBITDA) for the quarter were up 5% to $183.8 million compared to $175.2
million in the year-ago period. Return on average common equity (ROE)
was 19.4% for the 12 months ended March 31, 2013, compared to 19.6% for
the same period in 2012.

'Each of Questar's business units performed as expected in the first
quarter,? said Ronald W. Jibson, Questar chairman, president and CEO.
'Questar Gas posted a 6% rise in net income in the first quarter.
Wexpro's net income rose by 8% while Questar Pipeline's income was 5%
lower compared to the first quarter of 2012. Adjusted EBITDA in the
first quarter of 2013 was about $184 million, up 5% from the same
quarter in 2012. I am also pleased to report that Utah and Wyoming
regulators recently approved Wexpro II, allowing us an opportunity to
replicate the long-term success of the original Wexpro Agreement by
acquiring properties for future cost-of-service gas development. While
we recognize that certain expense challenges continue, we remain
confident in our current 2013 earnings guidance range of $1.12 to $1.20
per diluted share. We are also excited about opportunities we are seeing
at each of our business units.?

Other recent highlights include:

• 
  Questar Gas's total deliveries increased 18% in the first quarter
  compared to the 2012 period, reflecting 31% colder temperatures than
  for the first quarter of 2012.
  
• 
  Questar Gas's customer growth rate increased to 1.5%, up from 1.0%
  last year.
  
• 
  Questar Fueling entered into three contracts to design, build and
  manage compressed natural gas (CNG) fueling facilities for a major
  trucking company and a consumer-products manufacturer.
  
• 
  Wexpro's investment base grew by 7% over the past 12 months to $526.8
  million, up from $492.5 million last year.
  
• 
  Questar Pipeline's strategic review of the Southern Trails Pipeline is
  confirming a potential opportunity to convert the pipeline back to
  crude-oil service from natural gas.
  
• 
  Questar Pipeline received FERC approval to construct and operate two
  system expansion projects in Utah and Wyoming.
  
• 
  Questar Corporation increased the size of its five-year revolving
  credit facility from $500 million to $750 million and extended its
  maturity to April 2018, providing additional financial and operational
  flexibility.
  

Questar Gas

Questar Gas's first-quarter 2013 net income rose 6% to $37.0 million, up
from $34.9 million in the first quarter of 2012. Adjusted EBITDA was
$77.6 million in the current quarter compared to $74.8 million for the
2012 quarter. On a financial basis, Questar Gas earned a 10.1% ROE for
the 12 months ended March 31, 2013. Changes in Questar Gas margin
(revenues less cost of gas sold) are summarized in the following table:

As of March 31, 2013, Questar Gas served about 937,400 customers, an
increase of over 14,000 customers, or 1.5%, compared to 1.0% growth a
year ago. Customer growth has continued to accelerate over the past
year. New customers increased margin by about $1.5 million for the
quarter. 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 up 3% to about
$38 per customer for the three months ended March 31, 2013, compared to
$37 a year earlier, primarily due to higher employee-related and
allocated corporate costs.

Questar Gas's multi-year infrastructure-upgrade program continues to be
a safety and growth priority. The initial focus was on replacing aging
high-pressure, large-diameter steel pipe in high-consequence urban areas
and is largely complete. The current focus is on replacing similar pipe
in less densely populated areas. Questar Gas expects to spend $55
million to $60 million on the program in 2013, and a similar amount
annually for several years. Expenditures under this program are
recovered under an infrastructure-cost-tracking mechanism approved by
Utah regulators in 2010, enabling timely inclusion in rate base. Questar
Gas recognized about $3.5 million of increased margin due to this
program in the first three months of 2013. In the second quarter of
2013, Questar Gas will be filing a general rate case with the Public
Service Commission of Utah that will include a review of the
infrastructure-cost-tracking mechanism.

Wexpro

Wexpro's first-quarter 2013 net income rose 8% to $26.3 million,
compared to $24.3 million in the first quarter of 2012. Adjusted EBITDA
grew 14% to $62.4 million in the current quarter versus $54.5 million
last year. It earned a 19.9% after-tax return on its average investment
base for the 12 months ended March 31, 2013. Wexpro's investment base at
quarter-end was $526.8 million, 7% higher than the prior year
quarter-end. Wexpro's efficient operations resulted in low finding costs
and a cost-of-service gas price that remains competitive with the
forward curve. Revenues from oil and natural gas liquids (NGL) sales
increased 13% in the quarter compared to the same period in 2012. Oil
and NGL revenues are shared with Questar Gas customers. Under the terms
of the Wexpro Agreement, a long-standing agreement with the states of
Utah and Wyoming, Wexpro recovers its costs and earns an unlevered
after-tax return of approximately 20% on its average investment base.
Wexpro's natural gas production currently provides more than half of the
utility's annual gas-supply requirements. A summary of changes in
Wexpro's investment base is provided below:

Wexpro II approved

On March 28, 2013, the Public Service Commission of Utah approved Wexpro
II, a new agreement that substantially duplicates the original Wexpro
Agreement that has benefitted Questar Gas customers and Questar
shareholders for more than three decades. On April 11, 2013, the Wyoming
Public Service Commission issued a bench order approving Wexpro II.
'Since its 1981 creation, the Wexpro Agreement has saved Questar Gas
customers more than $1.3 billion and produced an average return on
investment of more than 20% for our shareholders,? said Jibson. 'This
win-win model is unique in our industry, and we're confident we can
perpetuate this success by adding new properties under the new
agreement.? The 1981 agreement is a major reason Questar Gas's
residential natural gas rates are consistently among the lowest in the
nation. With its contract-based rate of return, Wexpro Company's
economic model is similar to a regulated utility. Wexpro Company's
technical staff is currently evaluating properties that could be
acquired and considered for inclusion in this new opportunity to
duplicate Wexpro's proven success.

Questar Pipeline

Questar Pipeline reported first-quarter 2013 net income of $15.8
million, down 5% from $16.6 million a year ago. Questar Pipeline
generated $45.5 million of Adjusted EBITDA in the 2013 quarter and
earned a 10.6% ROE for the 12 months ended March 31, 2013. The dip in
net income was primarily due to lower NGL revenues and higher
depreciation and amortization costs. NGL revenues were down 37% in the
first quarter of 2013 compared to the prior-year period, reflecting both
lower NGL sales volumes and prices. Depreciation and amortization
expenses were up due to higher property, plant and equipment levels
compared to a year ago. Questar Pipeline's combined O&M and G&A costs
were down 4% for the recent quarter when compared to the same quarter in
2012. These lower costs together with slightly higher transportation
volumes in the first quarter of 2013 resulted in O&M and G&A expenses of
$0.08 per decatherm transported, compared to $0.09 per decatherm
transported in the first quarter of 2012. A summary of changes in
Questar Pipeline revenues is provided below:

At March 31, 2013, Questar Pipeline held net firm-transportation
contracts totaling 5,119 thousand decatherms (Mdth) per day, up 3% from
4,947 Mdth per day at March 31, 2012. The increase in transportation
revenues was primarily from higher seasonal revenues and a 2012 Uinta
Basin expansion project.

Questar Pipeline strategic review update

In the fourth quarter of 2012, Questar Pipeline announced a strategic
review of Southern Trails Pipeline. The strategic review has confirmed a
potential opportunity to return the pipeline to crude-oil service.
Questar Pipeline continues to manage the project to achieve the greatest
value for shareholders and is analyzing all strategic options.
Management expects to reach a decision on Southern Trails by mid-year.

Corporate and other

Corporate and other operations reported a net loss of $6.2 million in
the first quarter of 2013, compared to a net loss of $0.6 million in the
first quarter of 2012. The variance was driven by higher estimated state
income taxes due to state tax law changes, higher mark-to-market
valuations on deferred compensation due to the recent rise in Questar's
share price, and start-up losses at Questar Fueling, which are
aggregated at the corporate level.

Questar Fueling signs new contracts

In January, Questar Fueling Company announced that it had signed an
agreement to build, own and operate a CNG-fueling facility in Houston,
Texas on behalf of Swift Transportation and Central Freight Lines.
Questar Fueling also recently signed two new contracts to build similar
fueling facilities for a consumer products manufacturer in two other
locations to fuel its CNG-powered delivery fleet. All three facilities
are expected to be operational later this year. Questar continues to see
significant long-term growth potential for the use of natural gas for
transportation, though it will not likely make meaningful earnings and
cash flow contributions for a few years.

2013 EPS and capital guidance maintained

Questar management maintained its 2013 guidance range for earnings of
$1.12 to $1.20 per diluted share, unchanged from previously provided
guidance. Consolidated capital investment for 2013 is expected to be
about $450 million. Investment capital has been allocated to Questar's
lines of business as follows:

'We have previously stated that 2013 could be a relatively flat earnings
year, but we remain confident in our EPS guidance range of $1.12 to
$1.20 per diluted share,? Jibson said. 'We achieved several milestones
on three key initiatives that could drive increases in shareholder value
for many years to come. First, Wexpro II was approved by Utah and
Wyoming regulators, enabling Wexpro production to indefinitely benefit
both our utility customers and shareholders by acquiring and developing
additional properties. Second, Questar Fueling signed three new
contracts to provide CNG-fueling facilities for third parties and is on
its way to becoming a significant player in that developing market. And
third, the strategic review continues for Questar Pipeline's Southern
Trails Pipeline subsidiary, with a decision expected by mid-2013. We
will continue to update you on these initiatives and on earnings
guidance throughout the year as we have greater clarity.?

'We plan to continue to invest for long-term growth and expect to
maintain an industry-competitive growth rate with industry-leading
returns. Wexpro continues to demonstrate an ability to grow its
investment base, production and earnings with its existing properties
and can now perpetuate that model under the new Wexpro II agreement. At
Questar Gas, strong customer growth and the infrastructure-replacement
program should support long-term earnings and rate base growth. Questar
Pipeline's strategic review is identifying new long-term growth
opportunities. Our commitment to customers and shareholders is to
continue delivering superior service, while profitably investing in and
growing our businesses.?

First-Quarter 2013 earnings teleconference

Questar management will discuss first-quarter 2013 results and the
outlook for the remainder of 2013 in a conference call with investors
Wednesday, May 1, 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 $5.6 billion, operating through three
principal subsidiaries:

• Questar Gas Company provides retail natural gas distribution in
  Utah, Wyoming and Idaho;
  
• Wexpro Company develops and produces natural gas from
  cost-of-service reserves for Questar Gas customers; ?and
  
• Questar Pipeline Company 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 energy commodity prices;
  
• 
  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 these
non-GAAP financial measures are useful to investors because they provide
alternative methods for assessing the Company's ongoing operating
results and cash flows. The Company's management uses these non-GAAP
financial measures for the same purposes, and for planning and
forecasting purposes. The presentation of non-GAAP financial measures is
not meant to be a substitute for financial measures calculated in
accordance with GAAP.

Management defines Adjusted EBITDA as net income (loss) before the
following items: interest expense, income taxes, depreciation, depletion
and amortization, net gain or loss from asset sales, abandonments and
impairments, and other special items. Management believes Adjusted
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 Adjusted
EBITDA for the three months ended March ?31, 2013:

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

Questar Corporation

Investors: Tony Ivins, 801-324-5218

Media:
Chad Jones, 801-324-5495