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QUESTAR PLANS RECORD 1994 CAPITAL OUTLAYS

 SALT LAKE CITY, Nov. 22 /PRNewswire/ -- Questar Corp.'s (NYSE: STR) projected 1994 capital expenditures could surpass $235 million, one- third higher than this year's expected outlays and an all-time record for the integrated gas company.
 Questar Chairman, President and Chief Executive Officer R.D. Cash said the 1994 capital spending plan "reflects our optimism about the growing opportunities for natural gas and our company. We feel confident about achieving our financial and operating objectives over the next several years if we continue to deploy these large capital expenditures efficiently and fully implement our strategies."
 A primary reason for Questar's success and bullish outlook is its distinctive integrated organization, Cash said. "Each of our primary business lines -- exploration and production, interstate transmission and retail gas distribution -- is identifying and developing promising growth opportunities."
 Even with record capital outlays, Questar will retain a competitive dividend and conservative balance sheet, Cash said. The company's cash flows have risen steadily over the past five years, allowing the company to maintain long-term debt at around 40 percent of total capitalization. Also, Questar has increased its dividend 20 times in the past 21 years.
 Including the projected 1994 outlays, Questar will have spent almost $900 million for capital projects in a five-year period, the most aggressive growth phase in company history. With those expenditures, Questar's income from continuing operations has increased at an average annual compounded rate of over 12 percent during the past three years, growing from $51.5 million in 1989 to $73.8 million in 1992.
 Cash said the 1994 capital outlays will be in three principal areas: oil and gas exploration and production, principally reserve acquisitions; expansion of underground natural gas storage operations; and customer growth-required additions to retail gas-distribution operations.
 The Questar chairman said the company's exploration and production segment is "in the hunt" for gas-reserve acquisitions up to the $100 million area. "While gas prices are somewhat higher, attractively priced properties still are coming into the marketplace," he said.
 "Combined with our successful drilling programs," he said, "prudent acquisitions will help us continue expanding our reserve base at very competitive finding costs."
 Questar's interstate pipeline subsidiary, Questar Pipeline Co., anticipates spending $39 million in 1994 at its Clay Basin underground storage facility in northern Utah. Questar Pipeline recently received the go-ahead from the Federal Energy Regulatory Commission to increase the reservoir's capacity from 100 billion cubic feet (Bcf) to 110 Bcf. Maximum deliverability will increase from 575 million cubic feet (MMcf) per day to more than 800 MMcf per day in 1995-1996.
 The third primary 1994 capital spending emphasis, Cash said, is expanding the retail gas-distribution system in response to customer additions. The market area served by Questar's gas-distribution subsidiary, Mountain Fuel Supply Co., continues to be a national leader in economic and population growth. Mountain Fuel's 3 percent-plus customer growth rate during 1993 is almost twice the industry average, while the region's unemployment rate is nearly two percentage points below the national average.
 -0- 11/22/93
 /CONTACT: R. Curtis Burnett of Questar, (business) 801-534-5541, or (home) 801-942-5171/
 (STR)


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

JB -- LA014 -- 6691 11/22/93 09:04 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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