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QUESTAR REPORTS 154 PERCENT QUARTERLY EARNINGS INCREASE

 SALT LAKE CITY, July 26 /PRNewswire/ -- Questar Corp.'s (NYSE: STR) net income increased 154 percent in the second quarter of 1993 in response to higher natural gas production, wellhead prices and customer deliveries.
 The integrated natural gas company reported net income of $15,265,000, or $.37 per share, for the three-month period ended June 30, 1993, compared with $6,017,000, or $.15 per share, for the year-earlier quarter. There was an average of 40 million shares outstanding during the current-year period and 39.4 million shares outstanding in the prior-year quarter.
 For the six months ended June 30, Questar earned $50,388,000, or $1.25 per share, versus $45,474,000, or $1.14 per share, for the prior-year six-month period. The earlier period's results included a cumulative effect of $9.3 million, or $.23 per share, from a change in the method of accounting for income taxes.
 Questar Chairman, President and Chief Executive Officer R.D. Cash said the 1993 performance to date has surpassed the company's projections. "We expected improved results because of the significant increases we've achieved in our natural gas production along with higher wellhead prices. However, the weather -- always a critical variable in our performance -- also worked in our favor during the second quarter of 1993 as compared with last year. Temperatures (as measured in degree days) were only 9 percent warmer than normal compared with 47 percent warmer than normal in the 1992 period, contributing to a 20 percent increase in retail gas-distribution deliveries in the current-year quarter. Our net income also has benefitted from $4.1 million in federal income tax credits available for producing gas found in tight-sands formations," he said.
 Questar's net income for the 12 months ended June 30, 1993, was $85,551,000, or $2.13 per share. For the comparable period ended June 30, 1992, the corporation earned $1.47 per share before the cumulative effect and $1.70 including the effect. Cash said the recent 12-month period benefitted from colder-than-normal weather in the fourth quarter of 1992 and the first quarter of 1993. In addition, the corporation recognized $5.7 million in tight-sands tax credits during the second half of 1992, while credits for the remainder of 1993 are estimated at $3 million-$5 million.
 With higher gas prices and production, Questar's exploration and production (E&P) group earned $8,989,000 during the 1993 quarter, a $4,265,000 increase over a year earlier. Gas production doubled to 8 billion cubic feet, which is near capacity, and the average wellhead price increased 26 percent to $1.85 per thousand cubic feet. Oil and natural gas liquid production was 2 percent higher while the average price per barrel increased 3 percent to $18.30.
 Other factors boosting the E&P group's second-quarter results were a continuing low amortization rate and $1.4 million in tax credits under Section 29 of the federal tax code for tight-sands gas production.
 The E&P group had income of $17,270,000 year to date compared with $10,987,000 for the comparable year-earlier period.
 Questar's interstate natural gas transmission subsidiary, Questar Pipeline Co., earned $4,778,000 during the second quarter of 1993 compared with $3,695,000 for the 1992 quarter. With higher deliveries to Questar's gas-distribution subsidiary due to colder weather, Questar Pipeline's total system throughput grew 19 percent to 54.8 million decatherms (dth).
 The pipeline earned $12,160,000 year to date versus $10,691,000 a year ago, reflecting a 9 percent rise in total throughput through the first six months of 1993.
 Mountain Fuel Supply Co., which distributes gas in Utah and parts of Wyoming and Idaho, had net income of $2,150,000 during the second quarter of 1993 in contrast with a $1,727,000 loss in the 1992 quarter due to warm weather.
 The colder temperatures, along with strong customer growth and higher commercial and industrial demand, raised total deliveries 20 percent to 27.2 million dth. Mountain Fuel also recognized $2.7 million in tight-sands tax credits during the quarter.
 On June 30 of this year, Mountain Fuel had 532,402 customers, a 3.5 percent increase over the past 12 months. The growth rate, which is well above average for gas utilities, reflects the region's continuing healthy economy, strong residential construction market and increasing population.
 Mountain Fuel's net income for the first six months of 1993 was $22,615,000 compared with $15,327,000 a year ago. For the year to date, temperatures averaged 3 percent colder than normal versus 17 percent warmer than normal in the 1992 period.
 Questar's other operations lost $652,000 during the second quarter and $1,657,000 during the first six months of this year. The losses for the comparable 1992 periods were $675,000 and $834,000, respectively. Questar Telecom Inc., which conducts specialized mobile radio activities, reported a loss of $764,000 during second quarter 1993 after a loss of $595,000 in the comparable 1992 period. The losses result primarily from depreciation charges and other costs related to Questar Telecom's ongoing acquisition and development of specialized mobile radio properties throughout the western U.S.
 QUESTAR CORP.
 Financial Highlights
 Three Months Ended June 30, 1993 1992
 Revenues $136,846,000 $109,598,000
 Net income 15,265,000 6,017,000
 Income available to
 common stock 15,085,000 5,811,000
 Earnings per common share $.37 $.15
 Average common shares
 outstanding 39,959,000 39,411,000
 Six Months Ended June 30, 1993 1992
 Revenues $386,664,000 $335,414,000
 Income before cumulative
 effect 50,388,000 36,171,000
 Cumulative effect of
 change in accounting
 for income taxes 9,303,000
 Net income 50,388,000 45,474,000
 Income available to
 common stock 50,028,000 45,061,000
 Earnings per common share
 Income before
 cumulative effect $1.25 $.91
 Cumulative effect .23
 Net income $1.25 $1.14
 Average common shares
 outstanding 39,901,000 39,358,000
 12 Months Ended June 30, 1993 1992
 Revenues $656,092,000 $598,450,000
 Income before cumulative
 effect 85,551,000 58,318,000
 Cumulative effect of
 change in accounting
 for income taxes 9,303,000
 Net income 85,551,000 67,621,000
 Income available to
 common stock 84,804,000 66,769,000
 Earnings per common share
 Income before cumulative
 effect $2.13 $1.47
 Cumulative effect .23
 Net income $2.13 $1.70
 Average common shares
 outstanding 39,790,000 39,214,000
 -0- 7/26/93
 /CONTACT: R. Curtis Burnett of Questar, (business) 801-534-5541 or (Home) 801-942-5171/
 (STR)


CO: Questar Corp. ST: Utah IN: OIL SU: ERN

EH -- LA014 -- 5550 07/26/93 09:20 EDT
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Date:Jul 26, 1993
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