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INVESTOR PRESENTATION – Questar Corp

Questar Corp · Apr 1, 2014 · 89 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. INVESTOR PRESENTATION – Questar Corp – slide 1
    Investor Presentation April 2014 Making lives better by developing and delivering essential energy
  2. INVESTOR PRESENTATION – Questar Corp – slide 2
    CORPORATE DATA ANALYST CONTACT: Ticker symbol and stock exchange: STR-NYSE At March 26, 2014 Tony Ivins Vice President Investor Relations Average daily trading volume (3 mos.): 802,000 shares & Corporate Treasurer Closing Price: 23.46…
  3. INVESTOR PRESENTATION – Questar Corp – slide 3
    Introduction and Overview Making lives better by developing and delivering essential energy
  4. INVESTOR PRESENTATION – Questar Corp – slide 4
    Questar Gas Achieved 1. Generate net income of 50.5MM // Adjusted net income was 52.8MM 2. Hold unit O&M expense to 145 per customer // Adj. O&M expense was 142 / customer 3. Earn authorized 10.35% return on equity // Adjusted ROE was…
  5. INVESTOR PRESENTATION – Questar Corp – slide 5
    Maintain and grow our vertically integrated business model Overall Strategy Develop and deliver essential energy in the western U.S. Manage commodity-price exposure and earnings volatility Meet customers energy needs through safe,…
  6. INVESTOR PRESENTATION – Questar Corp – slide 6
    Western United States IDAHO Primarily Utah, WYOMING Wyoming and Idaho UTAH Wexpro develops low-cost natural gas for Questar Gas utility customers under the 1981 Wexpro Agreement Questar Pipeline transports and stores natural gas in…
  7. INVESTOR PRESENTATION – Questar Corp – slide 7
    2013 Adj. Earnings 213.6MM* Wexpro - 19.9% earned ROE (2013) Wexpro - 100% equity capitalization 110.6 MM - 590 MM investment base (Dec 2013) 52% QPC* 60.6 MM QGC Wexpro 28% Questar Pipeline (QPC) 52.8 MM 25% - 11.75% allowed…
  8. INVESTOR PRESENTATION – Questar Corp – slide 8
    Craig Wagstaff EVP & COO Making lives better by developing and delivering essential energy
  9. INVESTOR PRESENTATION – Questar Corp – slide 9
    Key Facts & Statistics Cities served 277 Customers 12/31/2013 945,971 Customer growth 2013: +15,211 +1.6% Deliveries (2013) 184 MMdth System miles (12/31/2013) 27,861 miles Rate base (12/31/2013) 1,042 MM Allowed Utah ROE (beg. 3/1/2014)…
  10. INVESTOR PRESENTATION – Questar Corp – slide 10
    Rate Case Settlement Summary: Allowed ROE of 9.85% (previously 10.35%) Annual revenue increase of 7.6 million or 2.6% Expansion of infrastructure tracker from 55 to 65 million annually Transportation customers moving toward…
  11. INVESTOR PRESENTATION – Questar Corp – slide 11
    In regards to delivering safe, reliable, natural gas service, and receiving high customer-satisfaction marks, the PSC stated in the recent rate case order from February 21, 2014: We are pleased with these results and believe Questars…
  12. INVESTOR PRESENTATION – Questar Corp – slide 12
    Pursue opportunities to sell gas and transportation Provide a high Provide safe level of and reliable customer service service Succession Manage future planning Questar transportation (developing and retaining qualified Gas…
  13. INVESTOR PRESENTATION – Questar Corp – slide 13
    25 20 US 15 13.36 UTAH 9.80 10 5 0 LA FL TX IL WI TN WV WA IA WY IN ID VT AL SC AZ NH NC DC VA KS PA KY AR SD ND CO GA DE OK RI OH…
  14. INVESTOR PRESENTATION – Questar Corp – slide 14
    18.00 16.00 14.00 US 12.00 10.00 UTAH 8.00 6.00 4.00 2.00 National Avg UT Avg 0.00 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  15. INVESTOR PRESENTATION – Questar Corp – slide 15
    Key performance metrics: Return on equity Earns at or near allowed ROE Efficiency Among lowest 5% in O&M/customer Customer rates Among the very lowest in the nation Customer growth 1.5% to 2.5% growth forecast Market penetration Greater…
  16. INVESTOR PRESENTATION – Questar Corp – slide 16
    Key regulatory attributes: Return on equity 9.85% (effective 3/1/2014) Revenue decoupling Protects revenue Conservation program Encourages energy efficiency Infrastructure upgrades Tracker avoids recovery lag Weather normalization…
  17. INVESTOR PRESENTATION – Questar Corp – slide 17
    1980s: All cast iron pipe replaced 1990s: All bare steel pipe replaced 2000s: Reconditioned high-pressure pipe in high-consequence areas and IHP belt mains Invest 65 million annually over the next 5 years. 17
  18. INVESTOR PRESENTATION – Questar Corp – slide 18
    1980s: All cast iron pipe replaced 1990s: All bare steel pipe replaced 2000s: Focusing on replacement of reconditioned, high-pressure, large-diameter pipe and IHP belt mains Investing up to 65 million annually over the coming…
  19. INVESTOR PRESENTATION – Questar Corp – slide 19
    Expansion and upgrade of high-pressure Questar Gas natural gas feeder lines and IHP belt mains Rate-base forecast Infrastructure replacement and customer growth drives significant rate-base growth for many years to come Supports…
  20. INVESTOR PRESENTATION – Questar Corp – slide 20
    Improving lives by developing and delivering essential energy
  21. INVESTOR PRESENTATION – Questar Corp – slide 21
    Questar Gas Company is a leader in the U.S. in regulated NGV market development Invests in NGV / CNG refueling infrastructure in regulated territory Refuel border-to-border in Utah - Over 60 public, private and municipal stations -…
  22. INVESTOR PRESENTATION – Questar Corp – slide 22
    Questar Fueling Company Established in March 2012 to meet needs of expanding market for compressed natural gas (CNG) for transportation. Provides consulting, design, packaging and installation of natural gas fueling stations. Priority…
  23. INVESTOR PRESENTATION – Questar Corp – slide 23
    Locations Lower 48 states with national carriers and large fleets High-traffic corridors 23
  24. INVESTOR PRESENTATION – Questar Corp – slide 24
    ESTIMATED PLANNED STATIONS COMPLETION DeSoto, Texas May 2014 Dallas, Texas May 2014 Kansas City, Kansas July 2014 Bakersfield, California July 2014 (Buttonwillow) San Antonio, Texas August 2014 Salt Lake City, Utah September…
  25. INVESTOR PRESENTATION – Questar Corp – slide 25
    Location (proximity to customers, high-traffic areas, high-pressure gas lines, etc.) Preferred pricing agreements with customers Low price (accomplished through controlling costs on equipment and construction) Customer experience/…
  26. INVESTOR PRESENTATION – Questar Corp – slide 26
    Questar Fueling Update Questar Fueling was established in 2012 to meet the needs of an expanding market for compressed natural gas (CNG) for transportation Industry Development - Cummins-Westport launched full production of 12-liter…
  27. INVESTOR PRESENTATION – Questar Corp – slide 27
    The Fuel price difference between petroleum products and natural gas products presents a significant opportunity. 27
  28. INVESTOR PRESENTATION – Questar Corp – slide 28
    3.00 2.50 2.00 Commodity Cost 1.50 Taxes 1.00 Compression, Land, G&A, Operating 0.50 Expenses, Return - 4/ MMBtu 5/ MMBtu 6/ MMBtu 7/ MMBtu 8/ MMBtu * Assumes that 1 GGE of CNG contains 125,000 Btu ** Numbers…
  29. INVESTOR PRESENTATION – Questar Corp – slide 29
    Vehicle Fuel Component *Clean Skies Foundation Report: Driving on Natural Gas Figure 17 29
  30. INVESTOR PRESENTATION – Questar Corp – slide 30
    A recent Navigant Research report* projects: - Approximately 200,000 heavy-duty natural gas powered trucks to be sold over the next nine years Approximately 85% of these trucks are projected to be CNG Westport is projecting a 5 year…
  31. INVESTOR PRESENTATION – Questar Corp – slide 31
    *Westport Investor Slide Deck http://www.westport.com/company/media/presentations/corporate-update 31
  32. INVESTOR PRESENTATION – Questar Corp – slide 32
    Available 12 Liter now available Trucking Industry: 5 million heavy-duty trucks in the U.S. Consumes over 40 billion gallons of diesel per year Delivers 70% of all freight transported in U.S. 10% market conversion = Volume of 5…
  33. INVESTOR PRESENTATION – Questar Corp – slide 33
    Jim Livsey EVP & COO Making lives better by developing and delivering essential energy
  34. INVESTOR PRESENTATION – Questar Corp – slide 34
    Wexpro develops cost-of-service reserves that keep EBITDA ( millions) our gas utility rates among the lowest in the U.S. 259 236 Wexpro offers consistent growth with high returns 199 214 187 167 1981 Wexpro Agreement 123 -…
  35. INVESTOR PRESENTATION – Questar Corp – slide 35
    Powell (1974) Mesa (1955) Dry Piney (1957) Baxter Birch Creek Bruff (1922) (1957) (1961) Creston Church Buttes (1972) (1946) Trail & Brady Canyon Creek (1972) (1941) Powder Wash Clay Basin (1931) (1927) Hiawatha…
  36. INVESTOR PRESENTATION – Questar Corp – slide 36
    Investment Base Successful wells * Net Income (Millions) Depletion (Millions) Deferred taxes 589.7 110.6 103.9 531.1 95.2 474.4 88.1 456.6 431.9 80.7 410.6 73.9 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013…
  37. INVESTOR PRESENTATION – Questar Corp – slide 37
    1000 100 900 90 2013 Reserves Replacement 2013 R/P Ratio 800 177 Bcfe / 64 Bcfe = 276% 845 Bcfe / 64 Bcfe = 13 years 80 Production NRI Bcfe 700 70 Reserves NRI Bcfe 600 60 500 50 400 40 300 30 200 20 100 10 0…
  38. INVESTOR PRESENTATION – Questar Corp – slide 38
    Finding Costs 1.80 1.81 1.80 1.82 1.66 1.44 1.35 1.08 2006 2007 2008 2009 2010 2011 2012 2013 * NOTE: Includes Wexpro-operated and non-operated development wells and recompletions. 38
  39. INVESTOR PRESENTATION – Questar Corp – slide 39
    8.00 Wexpros 4Q-2013 total cost structure versus 12 E&P peers** (LOE + production taxes + G&A + interest + DDA) 7.00 Peer Average 6.00 Wexpro 4.17/Mcfe 5.00 2.83/Mcfe* (Excl. 20% AT return) 4.00 3.00 2.00 1.00 0.00 Low costs and…
  40. INVESTOR PRESENTATION – Questar Corp – slide 40
    8.00 1,750 Cumulative savings for Questar Gas customers (MM) 7.00 1,500 (Source: Wexpro records) Purchased 6.00 gas /Dth 1 Forward curve 1,250 5.00 1,000 4.00 750 3.00 500 2.00 1.00 250 Cost-of-service /Dth 2 0.00 0…
  41. INVESTOR PRESENTATION – Questar Corp – slide 41
    140,000 120,000 100,000 41% 51% 48% 49% 49% 32% 80,000 MDth 60,000 40,000 68% 59% 49% 51% 51% 52% 20,000 - 2008 2009 2010 2011 2012 2013 Equity Purchased 41
  42. INVESTOR PRESENTATION – Questar Corp – slide 42
    QEP Resources continues to operate northern third of Pinedale Anticline 18 PA A wells forecast for 2014-2015 Spud in 2013, Turn On in 2014 20 PA C wells anticipated in 2016-2017 Spud in 2014, Turn On in 2014 Average completed well…
  43. INVESTOR PRESENTATION – Questar Corp – slide 43
    Big Horn 700-800 future development locations Wind River 1.1 billion of future identified Pinedale 40 Locations investment WYOMING Annual investment driven by Moxa Green River 140 Locations pace of field development,…
  44. INVESTOR PRESENTATION – Questar Corp – slide 44
    Wexpro II Return Summary Initial Acquisition Successful Future Capital Development Capital = 7.64% Return = 20.2% Return (Questar Gass current cost of capital (Earns Wexpro Agreement return based on based on 9.85% allowed ROE) Ave.…
  45. INVESTOR PRESENTATION – Questar Corp – slide 45
    Key Provisions - Provides mechanism to acquire Rockies gas properties for future development - Modeled on provisions of original Wexpro Agreement Initial investment earns utility rate of return currently 7.64% Future development…
  46. INVESTOR PRESENTATION – Questar Corp – slide 46
    Trail acquisition - Approved Utah 1/17/2014 Wyoming 1/27/2014 - Approximately 103 million will be treated as cost-of-service effective 2/1/2014 - Major issue in obtaining approval was cost-of-service gas supply percentage Parties…
  47. INVESTOR PRESENTATION – Questar Corp – slide 47
    Evaluating 3 basins/800 fields Acquisition analysis focused on fields that could provide cost-of- service at reasonable prices Green - Finding cost should work for COS Blue - Finding cost is borderline for COS Red - Finding…
  48. INVESTOR PRESENTATION – Questar Corp – slide 48
    Acquire producing properties with future drilling potential - Having a property immediately available allows quicker execution of new cost-of-service arrangements - Reaching out to nearby utilities and large end-use customers…
  49. INVESTOR PRESENTATION – Questar Corp – slide 49
    Allan Bradley President & CEO Transmission Storage G&P Energy Services Making lives better by developing and delivering essential energy
  50. INVESTOR PRESENTATION – Questar Corp – slide 50
    Key Facts & Statistics Map of Operations Serves Questar Gas, other utilities and major export pipelines from four Rockies hubs WYOMING Questar Pipeline IDAHO Overthrust Pipeline Provides transportation and underground storage…
  51. INVESTOR PRESENTATION – Questar Corp – slide 51
    Hub of the Rockies: 2,662 miles of pipeline Key Field Services Highlights Four Pipeline Systems up to 36 diameter, 1440 psig (QPC, Overthrust, WRH, So. Trails) Safe, Efficient, Reliable 51 Compressor Units at 22 Stations up…
  52. INVESTOR PRESENTATION – Questar Corp – slide 52
    Operational efficiency and effectiveness Safety and reliability best in class Flexibility to meet changing demands Commercial Excellence Fully-contracted Hub of the Rockies Reputation of trust, responsiveness, compliance…
  53. INVESTOR PRESENTATION – Questar Corp – slide 53
    EBITDA ( millions) Average Deliveries (Mdth/d) 250 3500 3000 2891 200 2765 182 182 181 177 2537 176 2450 165 2500 2178 150 2000 128 1711 1500 100 1009 1000 50 500 312 330 309 307 320 293 327 0 0 2007 2008 2009 2010 2011…
  54. INVESTOR PRESENTATION – Questar Corp – slide 54
    O&M/dth includes Storage and 50% of WRH without QPC Contract 6,000,000 25.00 5,000,000 20.00 Contract 4,000,000 Demand 15.00 O&M/dth 3,000,000 10.00 2,000,000 5.00 1,000,000 0 0.00 2006 2007 2008 2009 2010 2011 2012…
  55. INVESTOR PRESENTATION – Questar Corp – slide 55
    QPC Maximum Delivery Days by Year Tools in the Toolbox Experienced workforce 6,000,000 Clay Basin storage Peaking aquifers 5,000,000 Integrated QPC and Overthrust systems 4,000,000 Bi-directional capability No-notice service…
  56. INVESTOR PRESENTATION – Questar Corp – slide 56
    Approved Budget is 120.9 Million QPC Capital Budget (MM) Facility Integrity and Upgrade Budget is 76.6 Million Upgrade & Maintenance Projects Include: - M. L. 3 Replacement - M. L. 68 AC Mitigation - Line Break Valve Operators…
  57. INVESTOR PRESENTATION – Questar Corp – slide 57
    Remain cost-competitive with regional pipelines Competitive cost Re-contract with customers Rate case strategy and new tariff Gathering Re-contract services and with processing customers Focus on incremental projects services…
  58. INVESTOR PRESENTATION – Questar Corp – slide 58
    Total: 11,000 MW NAUGHTON - 637 MW BRIDGER 1,412 MW Coal Fired: 8,640 MW Natural Gas Fired: 2,360 MW Questar Served: 2,360 MW LITTLE MOUNTAIN - 14 MW GADSBY - 475 MW CRAIG 1,274 MW KENNECOTT - 275 MW HEBER - 30 MW HAYDEN -…
  59. INVESTOR PRESENTATION – Questar Corp – slide 59
    59 Project Name: PacifiCorp Lake Side 2 Questar Pipeline Contracted Capacity 90,000 dth/d CLAY QGC High Pressure Line BASIN Investment 19.7 MM Rate (/dth) 0.14 KERN RIVER Revenue (Annual) 4.6 MM PacifiCorp Lake Side…
  60. INVESTOR PRESENTATION – Questar Corp – slide 60
    2009 2010 2011 Weber Canyon - 2014 2015 Length 1.2 miles 9.3 miles 13 miles 3.3 Miles 1.5 Miles 16 API 5L PSL2 16 API 5L PSL2 16 API 5L PSL2 16 API 5L PSL2 16 API 5L PSL2 New Pipe Type 0.250 X-65 0.250 X-52 0.250 X-52 0.250 X-52 0.250…
  61. INVESTOR PRESENTATION – Questar Corp – slide 61
    3.3 Miles of 16 replacement. Estimated project cost = 29.4 million. 0.75 Miles of standard construction. 2.5 miles of very constrained construction. 1.1 miles of temporary debris fence required, 1 mile of earth berm/mesh fence. FERC…
  62. INVESTOR PRESENTATION – Questar Corp – slide 62
    Inland California Express Union Pacific Rail System WEST HYNES New Pipeline RAIL TERMINAL Completed Tasks - Spec Services engineering analysis for pipeline re-commission and extension - Harris 10% design for two rail…
  63. INVESTOR PRESENTATION – Questar Corp – slide 63
    Kevin Hadlock EVP & CFO Making lives better by developing and delivering essential energy
  64. INVESTOR PRESENTATION – Questar Corp – slide 64
    Investment Returns* Wexpro Questar Pipeline Questar Gas Questar Consolidated Return on equity Return on equity* Return on equity Return on equity** 25.0% 20.3% avg. 11.0% avg. 10.5% avg. 18.8% avg. 19.9% 20.0% 18.7% 15.0%…
  65. INVESTOR PRESENTATION – Questar Corp – slide 65
    Total Capital* (MMs) 12/31/2013 2,761 43% equity 1,011 1,128 679 55% equity 51% equity 100% equity -57 Wexpro Pipeline Gas Consolidated Corp Equity Debt *Total debt + shareholders equity 65
  66. INVESTOR PRESENTATION – Questar Corp – slide 66
    600 500 15 30 Corporate 400 166 & Other 3 300 190 Questar 162 73 Gas 200 Questar 61 120 Pipeline 250 100 Wexpro 145 100 - 2012 CAPEX 2013 CAPEX 2014F CAPEX 371 Million 504 Million* 440 Million * NOTE: Wexpros 2013…
  67. INVESTOR PRESENTATION – Questar Corp – slide 67
    Paid Dividend Growth Current quarterly dividend 0.18 per share, 0.72 annualized 0.71 0.665 0.62 60% payout achieved on 2013 net 0.54 income of 1.21 / share 0.505 Future dividend growth to approximate earnings growth 2009…
  68. INVESTOR PRESENTATION – Questar Corp – slide 68
    Key Drivers: Questar Gas: - Compound annual earnings growth rate of 6-8% - Supported by infrastructure replacement spending with a tracker for up to 65 million per year 595 MM - Annual customer growth rate of 1.5% to 2.5% - Utah…
  69. INVESTOR PRESENTATION – Questar Corp – slide 69
    What makes Questar unique Create value across entire natural gas chain (wellhead to burner tip) STRATEGY Regulated business model with superior risk-adjusted returns Take advantage of unique growth opportunities 18.7% normalized…
  70. INVESTOR PRESENTATION – Questar Corp – slide 70
    Making lives better by developing and delivering essential energy 70
  71. INVESTOR PRESENTATION – Questar Corp – slide 71
    Forbes magazine again ranks Utah as a top state for business and careers September 30, 2013 SALT LAKE CITY Utah ranked 3rd on Forbes magazine's 2013 list of Best States for Business and Careers behind Virginia and North Dakota, after…
  72. INVESTOR PRESENTATION – Questar Corp – slide 72
    Questar Wexpro Questar Parent/Other & Consolidated (MM) Gas Companies Pipeline Eliminations Questar Revenues 985.8 339.9 266.2 (371.9) 1,220.0 Other income 5.1 5.0 1.8 (2.0) 9.9 Income from uncons. affiliate - - 3.7 - 3.7 Operating…
  73. INVESTOR PRESENTATION – Questar Corp – slide 73
    Questar Wexpro Questar Parent/Other & Consolidated (MM) Gas Companies Pipeline Eliminations Questar Assets Current assets 308.9 85.1 107.1 (149.2) 351.9 Net PP&E 1,457.8 936.6 1,147.1 61.5 3,603.0 Other assets 25.7 27.2 37.5 9.0 99.4…
  74. INVESTOR PRESENTATION – Questar Corp – slide 74
    Questar Wexpro Questar Parent/Other & Consolidated (MM) Gas Companies Pipeline Eliminations Questar Operating cash flow 146.6 214.5 136.0 1.1 498.2 Changes in operating assets and liabilities 6.7 30.4 (0.7) (32.5) 3.9 Net cash flow…
  75. INVESTOR PRESENTATION – Questar Corp – slide 75
    580.0 600 2014 Embedded Debt Cost QPC: 460.1M 5.50% 4.80% QGC: 534.5M 5.07% STR RC Corp: 250.0M 2.75% 500 750 375.0 400 5.72% 300 250.0 2.75% 5.84% 200 4.875% Coupon (6.66% effective) 100 25.1 14.5 6.45% 6.85% 0…
  76. INVESTOR PRESENTATION – Questar Corp – slide 76
    INTEGRATED COMPARABLES (Proxy) AGL Resources Atmos Energy EQT Energen MDU Resources Group National Fuel Gas New Jersey Resources Nisource NW Natural Piedmont Nat Gas South Jersey Resources Southwest Gas Vectren WGL…
  77. INVESTOR PRESENTATION – Questar Corp – slide 77
    1,263 CNG stations 618 public 645 private 112 planned 81 LNG stations 42 public 39 private 66 planned Source: NGVAmerica, as of Nov. 2013 77
  78. INVESTOR PRESENTATION – Questar Corp – slide 78
    Gallons Cost/Gal. 500,000 4.00 3.50 400,000 3.00 300,000 2.50 2.00 200,000 1.50 1.00 100,000 0.50 0 0.00 Jan-08 Jan-07 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jul-11 Jul-07 Jul-08 Jul-09…
  79. INVESTOR PRESENTATION – Questar Corp – slide 79
    Determining Utility Revenue Requirement or Traditional Ratemaking: Decoupling: Volume-based Customer-based / Dth / Customer Rate X Dth of Customers X Revenue per Customer (Company collects as revenue) (Company collects as…
  80. INVESTOR PRESENTATION – Questar Corp – slide 80
    Questar Gas retained production from existing gas wells - Future production from productive gas reservoirs delivered at cost-of-service Established oil revenue sharing mechanism - 54% of oil profits credited to utility customers -…
  81. INVESTOR PRESENTATION – Questar Corp – slide 81
    Wexpro earns a specified return on successful wells - Includes recovery of income taxes - Producing wells existing at the date of the Wexpro Agreement earn at utility cost of capital - currently 7.64% - New Wexpro investment earns at…
  82. INVESTOR PRESENTATION – Questar Corp – slide 82
    Primary oversight assigned to - Utah Division of Public Utilities - Staff of the WY PSC - Agreement provides for two independent monitors Hydrocarbon Monitor (David Evans) Accounting Monitor (Eide Bailly) Arbitration procedures…
  83. INVESTOR PRESENTATION – Questar Corp – slide 83
    Major Provisions Capital Expenditures Operating Costs Successful wells & Dry holes non-drilling costs Questar Gas reimburses costs Excluded from Wexpro receives a return on No profit component investment base - investment base…
  84. INVESTOR PRESENTATION – Questar Corp – slide 84
    Production Tax 7% LOE 6% G&A 7% Royalties 13% Depreciation 24% 67% Finding Cost Return On Investment Driven With Fed+St. Tax Reimbursement 43% 84
  85. INVESTOR PRESENTATION – Questar Corp – slide 85
    WEXPRO Bonus Deprec. 100% 50% 0% Incremental Investment 10,000,000 10,000,000 10,000,000 Incremental Book Deprec. (1,200,000) (1,200,000) (1,200,000) Incremental Deferred Taxes (3,080,000) (1,580,075) (80,150) Addition to Investment…
  86. INVESTOR PRESENTATION – Questar Corp – slide 86
    Bits - Fewer bit replacements = faster drilling Top drive - Fewer joint connections = faster drilling Directional drilling equipment - Better accuracy = faster drilling Skid package - Less time moving = more time drilling…
  87. INVESTOR PRESENTATION – Questar Corp – slide 87
    87
  88. INVESTOR PRESENTATION – Questar Corp – slide 88
    The current Rockies pipeline capacity overhang is expected to remain well into the future with Rockies prices tracking Henry Hub 88
  89. INVESTOR PRESENTATION – Questar Corp – slide 89
    A Rockies-Based Integrated Natural Company Questar Corporation is a natural gas-focused energy company with core operations in the Rockies. We produce, transport, store and distribute clean, abundant and affordable American natural gas.…

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