Questar Corporation (STR)

[frenchee]

Questar Completes Acquisition of Louisiana Properties, Raises Production and Earnings Guidance, and Adds to Hedge Positions


SALT LAKE CITY--(BUSINESS WIRE)--March 03, 2008-- Questar Corporation (NYSE:STR) today announced that subsidiary Questar Exploration and Production Company (Questar E&P) has closed the previously announced purchase of two significant natural gas development properties in northwest Louisiana, for an aggregate adjusted purchase price of $659 million, subject to customary post-close adjustments. The properties are located in Red River and Bienville Parishes, approximately 10 miles south and east of Questar E&P's existing Elm Grove Field operations.

Questar also revised 2008 earnings and production guidance and underlying assumptions to incorporate the newly acquired properties, the recent increase in natural gas and crude oil prices, and additional natural gas fixed-price hedges.


Revised Earnings Guidance and Assumptions

2008 2008
Current Previous
-------------- -------------
Earnings per diluted share $3.05-$3.20 $2.90-$3.05
Average diluted shares (millions) 176.2 176.2
Questar E&P production - Bcfe 160-163 148-151
Pinedale well completions 60-65 60-65
NYMEX gas price per MMBtu(a) $9.00-$10.00 $7.50-$8.50
NYMEX/Rockies basis differential per
MMBtu(a) $1.45-$1.20 $1.45-$1.20
NYMEX/Midcontinent basis differential per
MMBtu(a) $1.25-$1.00 $1.25-$1.00
NYMEX crude oil price per bbl(a) $95.00-$100.00 $85.00-$90.00

(a) On unhedged volumes for the remainder of 2008

-- Questar E&P has now hedged about 78% of forecast natural gas
and oil-equivalent production for the remainder of 2008 with
fixed-price swaps. Additionally, the company has hedged about
2% of its forecast natural gas production for the remainder of
2008 with basis-only swaps (see table at the end of this
release).

-- The company estimates that a $1.00 per MMBtu change in the
average NYMEX price of natural gas for the remainder of 2008
would result in about a $0.02 change in earnings per diluted
share.

-- A $10.00 per bbl change in the average NYMEX price of oil for
the remainder of 2008 would result in about a $0.05 change in
earnings per diluted share.
"We're now in a position to grow Questar E&P production 14 to 16% in 2008," said Chuck Stanley, Questar COO and head of the company's exploration and production businesses. "We've also taken advantage of the recent jump in natural gas prices to hedge additional Questar E&P production to lock in attractive returns on invested capital and cash flows, both from the newly acquired properties and from our existing assets." The company has added 11 Bcf of natural gas fixed-price swaps for the remainder of 2008, 28.1 Bcf for 2009, and 28.4 Bcf for 2010 since it last disclosed hedge positions on February 12, 2008 (See table at end of this release for a detailed summary of current hedge positions).