QUESTAR PIPELINE CO

CIK:0000764044|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUES
Questar Gas / Revenues	$ 128.2	$ 141.7	$ 536.1	$ 516.5	$ 937.2	$ 936.1
Wexpro	1.9	10.1	5.4	16.4	11.9	31.9
Questar Pipeline / Revenues from unaffiliated customers	42.9	46.5	85.9	93.3	180.5	187.4
Other	1.1	1.0	3.0	1.7	7.8	3.6
Total Revenues	174.1	199.3	630.4	627.9	1,137.4	1,159.0
OPERATING EXPENSES
Cost of sales (excluding operating expenses shown separately)	(27.7)	(9.0)	130.8	122.8	183.2	185.2
Operating and maintenance	39.9	40.5	90.3	92.8	179.1	187.6
General and administrative	26.0	27.4	55.6	56.8	107.8	120.0
Pension settlement costs	0.0	0.0	0.0	0.0	16.7	0.0
Merger and restructuring costs	3.7	0.0	18.3	0.0	18.3	0.0
Production and other taxes	11.4	12.8	23.1	26.6	47.8	56.2
Depreciation, depletion and amortization	56.4	53.6	112.3	107.9	220.4	209.5
Abandonment and impairment	0.1	0.1	0.3	0.1	12.7	0.1
Total Operating Expenses	109.8	125.4	430.7	407.0	786.0	758.6
Net gain (loss) from asset sales	0.1	1.4	0.4	1.4	0.8	2.5
OPERATING INCOME	64.4	75.3	200.1	222.3	352.2	402.9
Interest and other income	1.1	1.5	2.1	2.9	3.4	6.5
Income from unconsolidated affiliate	0.9	1.0	1.9	1.9	3.7	3.6
Interest expense	(15.5)	(15.8)	(31.3)	(31.7)	(62.6)	(63.2)
INCOME (LOSS) BEFORE INCOME TAXES	50.9	62.0	172.8	195.4	296.7	349.8
Income taxes	(17.8)	(21.4)	(61.2)	(70.2)	(101.6)	(123.5)
NET INCOME (LOSS)	$ 33.1	$ 40.6	$ 111.6	$ 125.2	$ 195.1	$ 226.3
Earnings Per Common Share
Basic (usd per share)	$ 0.19	$ 0.23	$ 0.64	$ 0.71	$ 1.11	$ 1.29
Diluted (usd per share)	$ 0.19	$ 0.23	$ 0.64	$ 0.71	$ 1.11	$ 1.28
Weighted-average common shares outstanding
Used in basic calculation (in shares)	176.0	176.4	175.9	176.3	175.9	176.1
Used in diluted calculation (in shares)	176.2	176.6	176.2	176.5	176.1	176.4
Dividends per common share (usd per share)	$ 0.22	$ 0.21	$ 0.44	$ 0.42	$ 0.86	$ 0.80
Questar Gas [Member]
REVENUES
Total Revenues	$ 128.2	$ 141.7	$ 536.1	$ 516.5	$ 937.2	$ 936.1
OPERATING EXPENSES
Cost of natural gas sold (excluding operating expenses shown separately)	67.8	84.0	324.7	317.6	565.2	580.6
Operating and maintenance	24.9	24.8	59.5	57.9	113.5	114.3
General and administrative	11.4	12.8	24.4	26.2	48.8	52.3
Depreciation and amortization	15.0	13.6	29.7	27.1	57.7	53.9
Other taxes	5.3	5.1	10.6	9.7	20.2	17.6
Total Operating Expenses	124.4	140.3	448.9	438.5	805.4	818.7
OPERATING INCOME	3.8	1.4	87.2	78.0	131.8	117.4
Interest and other income	0.9	1.2	1.9	2.3	4.4	5.6
Interest expense	(7.5)	(7.1)	(15.2)	(14.2)	(29.3)	(28.3)
INCOME (LOSS) BEFORE INCOME TAXES	(2.8)	(4.5)	73.9	66.1	106.9	94.7
Income taxes	1.2	1.7	(27.9)	(25.1)	(37.6)	(34.8)
NET INCOME (LOSS)	(1.6)	(2.8)	46.0	41.0	69.3	59.9
Questar Pipeline [Member]
REVENUES
Questar Pipeline / Revenues from unaffiliated customers	42.9	46.5	85.9	93.3	180.5	187.4
Revenues from affiliated companies	17.5	17.8	36.8	37.2	74.7	73.9
Total Revenues	60.4	64.3	122.7	130.5	255.2	261.3
OPERATING EXPENSES
Operating and maintenance	9.0	8.9	17.6	19.0	36.2	39.8
General and administrative	8.9	10.5	19.2	21.0	37.1	40.1
Depreciation and amortization	13.7	13.7	27.4	27.7	54.3	55.0
Other taxes	2.2	2.1	4.5	4.4	8.9	8.8
Cost of sales (excluding operating expenses shown separately)	0.3	(0.2)	0.4	1.7	7.6	3.3
Total Operating Expenses	34.1	35.0	69.1	73.8	144.1	147.0
Net gain (loss) from asset sales	0.1	0.0	0.4	0.0	0.6	(0.5)
OPERATING INCOME	26.4	29.3	54.0	56.7	111.7	113.8
Interest and other income	0.2	0.2	0.3	0.4	0.8	1.2
Income from unconsolidated affiliate	0.9	1.0	1.9	1.9	3.7	3.6
Interest expense	(6.2)	(6.5)	(12.4)	(13.1)	(25.3)	(26.1)
INCOME (LOSS) BEFORE INCOME TAXES	21.3	24.0	43.8	45.9	90.9	92.5
Income taxes	(7.7)	(8.8)	(16.0)	(16.8)	(32.6)	(34.2)
NET INCOME (LOSS)	$ 13.6	$ 15.2	$ 27.8	$ 29.1	$ 58.3	$ 58.3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
OPERATING ACTIVITIES
Net income	$ 111.6	$ 125.2
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	118.2	111.3
Deferred income taxes	1.1	(7.2)
Abandonment and impairment	0.3	0.1
Share-based compensation	5.4	6.3
Net (gain) from asset sales	(0.4)	(1.4)
(Income) from unconsolidated affiliate	(1.9)	(1.9)
Distributions from unconsolidated affiliate and other	2.8	2.6
Changes in operating assets and liabilities	207.8	66.2
NET CASH PROVIDED BY OPERATING ACTIVITIES	444.9	301.2
INVESTING ACTIVITIES
Property, plant and equipment purchased	(146.2)	(127.3)
Questar Gas acquisition of gas distribution system	0.0	(11.4)
Cash used in disposition of assets	(1.5)	(1.8)
Proceeds from disposition of assets	0.4	1.1
NET CASH USED IN INVESTING ACTIVITIES	(147.3)	(139.4)
FINANCING ACTIVITIES
Common stock issued	3.9	1.5
Common stock repurchased	(2.8)	(4.1)
Change in commercial paper, net	(248.6)	(119.0)
Short-term debt issued	250.0	0.0
Checks outstanding in excess of cash balances	4.0	2.5
Long-term debt repaid	(250.0)	0.0
Capital lease obligation repaid	(0.6)	(0.6)
Revolver issuance costs paid	(1.2)	0.0
Dividends paid	(77.5)	(74.1)
Tax benefits from share-based compensation	0.2	0.0
NET CASH USED IN FINANCING ACTIVITIES	(322.6)	(193.8)
Change in cash and cash equivalents	(25.0)	(32.0)
Beginning cash and cash equivalents	25.0	32.0
Ending cash and cash equivalents	0.0	0.0
Questar Gas [Member]
OPERATING ACTIVITIES
Net income	46.0	41.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32.6	29.9
Deferred income taxes	12.5	(1.8)
Share-based compensation	0.8	0.7
Changes in operating assets and liabilities	182.3	95.0
NET CASH PROVIDED BY OPERATING ACTIVITIES	274.2	164.8
INVESTING ACTIVITIES
Property, plant and equipment purchased	(124.3)	(88.3)
Questar Gas acquisition of gas distribution system	0.0	(11.4)
Cash used in disposition of assets	(1.2)	(1.4)
Proceeds from disposition of assets	0.1	0.1
Affiliated-company property, plant and equipment transfers	(0.1)	(0.1)
NET CASH USED IN INVESTING ACTIVITIES	(125.5)	(101.1)
FINANCING ACTIVITIES
Change in notes payable to Questar	(144.3)	(59.6)
Checks outstanding in excess of cash balances	5.1	4.1
Dividends paid to Questar	(20.0)	(28.0)
NET CASH USED IN FINANCING ACTIVITIES	(159.2)	(83.5)
Change in cash and cash equivalents	(10.5)	(19.8)
Beginning cash and cash equivalents	10.5	19.8
Ending cash and cash equivalents	0.0	0.0
Questar Pipeline [Member]
OPERATING ACTIVITIES
Net income	27.8	29.1
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28.6	28.9
Deferred income taxes	1.6	(1.1)
Share-based compensation	0.9	1.3
Net (gain) from asset sales	(0.4)	0.0
(Income) from unconsolidated affiliate	(1.9)	(1.9)
Distributions from unconsolidated affiliate and other	2.6	2.4
Changes in operating assets and liabilities	6.9	(5.9)
NET CASH PROVIDED BY OPERATING ACTIVITIES	66.1	52.8
INVESTING ACTIVITIES
Property, plant and equipment purchased	(14.2)	(17.1)
Cash used in disposition of assets	(0.3)	(0.4)
Proceeds from disposition of assets	0.3	0.1
Affiliated-company property, plant and equipment transfers	0.1	0.1
NET CASH USED IN INVESTING ACTIVITIES	(14.1)	(17.3)
FINANCING ACTIVITIES
Change in notes receivable from Questar	(28.6)	6.1
Dividends paid to Questar	(32.0)	(48.0)
NET CASH USED IN FINANCING ACTIVITIES	(60.6)	(41.9)
Change in cash and cash equivalents	(8.6)	(6.4)
Beginning cash and cash equivalents	10.2	7.4
Ending cash and cash equivalents	$ 1.6	$ 1.0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Current Assets
Cash and cash equivalents	$ 0.0	$ 25.0	$ 0.0
Accounts receivable, net	56.6	168.0	53.3
Unbilled gas accounts receivable	11.0	91.3	11.6
Gas stored underground	26.2	45.1	30.6
Materials and supplies	27.8	28.4	30.7
Current regulatory assets	21.0	70.0	57.1
Prepaid expenses and other	20.0	12.3	10.2
Total Current Assets	162.6	440.1	193.5
Property, Plant and Equipment	6,313.4	6,182.0	6,057.2
Accumulated depreciation, depletion and amortization	(2,424.2)	(2,333.3)	(2,272.5)
Net Property, Plant and Equipment	3,889.2	3,848.7	3,784.7
Investment in unconsolidated affiliate	23.5	23.9	24.3
Noncurrent regulatory assets	19.7	14.9	23.7
Other noncurrent assets	45.6	44.2	43.9
TOTAL ASSETS	4,140.6	4,371.8	4,070.1
Current Liabilities
Checks outstanding in excess of cash balances	4.0	0.0	2.5
Short-term debt	459.0	457.6	228.0
Accounts payable and accrued expenses	159.7	224.8	201.0
Current regulatory liabilities	34.2	6.4	2.6
Current portion of long-term debt and capital lease obligation	1.3	251.3	277.0
Total Current Liabilities	658.2	940.1	711.1
Long-term debt and capital lease obligation, less current portion	997.9	998.2	998.6
Deferred income taxes	783.7	779.5	707.3
Asset retirement obligations	71.4	67.6	70.6
Defined benefit pension plan and other postretirement benefits	108.7	123.0	125.1
Noncurrent regulatory liabilities	85.1	75.6	74.9
Customer contributions in aid of construction	23.1	23.7	27.4
Other noncurrent liabilities	52.2	49.0	46.3
COMMON SHAREHOLDERS' EQUITY
Common stock	475.6	469.0	480.8
Retained earnings	1,065.5	1,031.4	1,021.8
Accumulated other comprehensive (loss)	(180.8)	(185.3)	(193.8)
Total Common Shareholders' Equity	1,360.3	1,315.1	1,308.8
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY	4,140.6	4,371.8	4,070.1
Questar Gas [Member]
Current Assets
Cash and cash equivalents	0.0	10.5	0.0
Accounts receivable, net	36.6	112.0	29.6
Unbilled gas accounts receivable	11.0	91.0	11.6
Accounts receivable from affiliates	72.1	69.2	68.3
Gas stored underground	23.1	43.9	26.1
Materials and supplies	16.7	17.1	18.7
Current regulatory assets	20.6	69.8	56.3
Prepaid expenses and other	4.2	3.5	3.8
Total Current Assets	184.3	417.0	214.4
Property, Plant and Equipment	2,684.8	2,570.3	2,455.4
Accumulated depreciation, depletion and amortization	(827.6)	(812.2)	(799.9)
Net Property, Plant and Equipment	1,857.2	1,758.1	1,655.5
Noncurrent regulatory assets	16.5	11.9	19.8
Other noncurrent assets	5.7	5.7	5.7
TOTAL ASSETS	2,063.7	2,192.7	1,895.4
Current Liabilities
Checks outstanding in excess of cash balances	5.1	0.0	4.1
Notes payable to Questar	129.0	273.3	59.7
Accounts payable and accrued expenses	81.2	122.5	106.7
Accounts payable to affiliates	69.7	74.5	77.8
Customer advances	13.7	34.3	18.0
Current regulatory liabilities	32.8	4.0	1.0
Total Current Liabilities	331.5	508.6	267.3
Long-term debt, less current portion	531.4	531.2	531.0
Deferred income taxes	449.2	436.7	382.0
Noncurrent regulatory liabilities	74.7	65.6	65.5
Customer contributions in aid of construction	23.1	23.7	27.4
Other noncurrent liabilities	2.3	2.2	2.5
COMMON SHAREHOLDERS' EQUITY
Common stock	23.0	23.0	23.0
Additional paid-in capital	267.6	266.8	266.1
Retained earnings	360.9	334.9	330.6
Total Common Shareholders' Equity	651.5	624.7	619.7
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY	2,063.7	2,192.7	1,895.4
Questar Pipeline [Member]
Current Assets
Cash and cash equivalents	1.6	10.2	1.0
Notes receivable from Questar	34.6	6.0	34.0
Accounts receivable, net	16.6	29.6	17.0
Accounts receivable from affiliates	51.9	49.8	47.1
Gas stored underground	3.1	1.2	4.5
Materials and supplies	6.5	6.7	7.4
Current regulatory assets	0.4	0.2	0.8
Prepaid expenses and other	3.0	4.4	2.8
Total Current Assets	117.7	108.1	114.6
Property, Plant and Equipment	1,860.4	1,851.1	1,843.6
Accumulated depreciation, depletion and amortization	(732.8)	(709.7)	(697.8)
Net Property, Plant and Equipment	1,127.6	1,141.4	1,145.8
Investment in unconsolidated affiliate	23.5	23.9	24.3
Noncurrent regulatory and other assets	7.4	7.1	8.0
TOTAL ASSETS	1,276.2	1,280.5	1,292.7
Current Liabilities
Accounts payable and accrued expenses	16.8	16.1	21.8
Accounts payable to affiliates	12.3	15.8	9.1
Current regulatory liabilities	1.4	2.4	1.6
Current portion of long-term debt	0.0	0.0	25.1
Total Current Liabilities	30.5	34.3	57.6
Long-term debt, less current portion	431.2	431.0	430.9
Deferred income taxes	251.6	249.9	238.6
Noncurrent regulatory and other liabilities	17.7	16.3	16.0
COMMON SHAREHOLDERS' EQUITY
Common stock	6.6	6.6	6.6
Additional paid-in capital	354.3	353.4	352.7
Retained earnings	207.1	211.3	212.8
Accumulated other comprehensive (loss)	(22.8)	(22.3)	(22.5)
Total Common Shareholders' Equity	545.2	549.0	549.6
TOTAL LIABILITIES AND COMMON SHAREHOLDERS' EQUITY	$ 1,276.2	$ 1,280.5	$ 1,292.7