Natural gas-focused energy company Questar Corp. STR announced that the Utah and Wyoming public service commissions have permitted it to add certain natural gas properties under the Wexpro II Agreement.
Last December, Questar – through its affiliate Wexpro – had acquired additional interest in the Canyon Creek Unit of southwestern Wyoming’s Vermillion Basin for a consideration of about $52.7 million. With this, Questar gained full ownership of the property. Previously, the company owned 70% interest in the assets.
The company further added that regulators have approved Wexpro’s cost-of-service model. These additions increase the competitive position of the company in the Vermillion Basin.
Questar Corporation is a natural gas-focused energy company with three principal subsidiaries – Wexpro Company, Questar Pipeline, and Questar Gas Company. The company focuses exclusively on exploring natural gas resources while serving customers domestically and worldwide. Questar Gas’ strong customer growth should help the company achieve its growth targets. Also, Questar's planned investment strategy should enable it to accomplish long-term earnings growth despite low natural gas prices.
Questar’s extensive natural gas exposure raises its sensitivity to the commodity’s price, which continues to be weak. Questar’s exploration and production unit – Wexpro – and its pipeline segment are expected to continue to face challenging conditions.
Currently, Questar carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the utilities space are Chesapeake Utilities Corporation CPK, Atmos Energy Corporation ATO and Sempra Energy SRE. While Chesapeake Utilities sports a Zacks Rank #1 (Strong Buy), Atmos Energy and Northwest hold a Zacks Rank #2 (Buy).
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