Questar says 2015 net income unchanged from previous year

2015 adjusted earnings were $226.9 million, compared to 2014 net income of $226.5 million

At a time when most exploration and production companies are reporting losses or diminished income, Salt Lake City-based Questar Corporation (NYSE:STR) on Thursday announced net income of $208.7 million for 2015.

“We are very pleased that, in spite of an extraordinarily challenged commodity market, Questar was able to achieve strong earnings in 2015,” said Ronald W. Jibson, Questar chairman, president and CEO.

“On a consolidated basis, Questar had adjusted earnings of $1.28 per diluted share, near the top of our earnings guidance range.”

This included a noncash pension settlement accounting charge of $10.3 million after-tax ($0.06 per diluted share) and a noncash impairment charge of $7.9 million after tax ($0.04 per diluted share) on Wexpro leasehold properties.

Ronald W. Jibson, Questar CEO.

Excluding these charges, 2015 adjusted earnings were $226.9 million, or $1.28 per diluted share, compared to 2014 net income of $226.5 million, or $1.29 per diluted share.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) for the year were $625.7 million compared to $630.0 million for 2014. The consolidated adjusted return on average common equity (ROE) was 17.6% for 2015.

“Questar Gas posted 16 per cent earnings growth for the year, reflecting strong customer growth, higher general service rates, and ongoing cost-containment efforts,” said Jibson.

“Net income was down 19 per cent and 2 per cent at Wexpro and Questar Pipeline, respectively, compared to 2014 levels. Questar’s consolidated adjusted EBITDA was about the same as in 2014.”

Questar announced a five per cent dividend increase of $0.01 per quarter, to $0.88 annually.

Questar announced Feb. 1 that it has accepted an offer to become a part of the Dominion Resources family and to establish its western operations headquarters in Salt Lake City.

“This presents a tremendous opportunity to bring together these two strong, highly successful and best-in-class companies with the prospect of even greater future success,” said Jibson.

“Like Questar, Dominion is a solid company and an exemplary corporate citizen. We expect the combination to be very positive for our customers, employees, shareholders and communities.”