The company’s bottom line fell from the prior-year quarter figure of 22 cents. Questar Corporation (STR) - Earnings Surprise | FindTheCompany Questar reported third-quarter revenues of $142.3 million, down from the year-ago level of $157.9 million. Moreover, quarterly revenues failed to meet the Zacks Consensus Estimate of $200 million. Segment Analysis Questar Gas:The segment generated $89.3 million in revenues, down 11.3% from the prior-year quarter. Despite this, the segment reported adjusted operating income of $6.2 million, higher than the year-ago quarter profit of $5.8 million. As of Sep 30, 2015, Questar Gas served 981,348 customers. Wexpro:Segment revenues decreased 31.9% year over year to $6.4 million in the quarter. Moreover, segment operating income from continuing operations fell to $66.9 million from $68.4 million in the prior-year quarter. Lower natural gas sales hurt the results. Quarterly production of natural gas increased to 15.8 billion cubic feet (Bcf) from 15.5 Bcf. Questar Pipeline: The segment reported revenues of $45 million against $47.3 million in the comparable quarter last year. Income from continuing operations came in at $43 million compared with $43.5 million in the third quarter of 2014. Lower transportation volumes affected the results. Total natural gas transportation volume was 205.2 million decatherms compared with 207.2 million decatherms in the year-ago quarter. Expense Summary The general and administrative expenses for the quarter increased over 7% from the prior-year quarter to $26.5 million. Depreciation, depletion and amortization costs rose 8.3% year over year to $55 million. Total operating expense of $80.2 million, however, decreased from the year-ago level of $90.5 million. Financials As of Sep 30, 2015, Questar had long-term debt (including current portion) of $1,281.2 million, with a debt-to-capitalization ratio of 55.1%. Guidance For 2015, Questar projects earnings in the range of $1.25–$1.30 per share against the prior projection of $1.20–$1.30. The company lowered its capital spending for 2015 to $320 million from $370 million. Zacks Rank Questar currently carries a Zacks Rank #4 (Sell). Some better-ranked players in the energy sector are Natural Gas Services Group Inc. NGS, Sprague Resources LP SRLP and Seadrill Partners LLC SDLP. Each of these stocks sports a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUESTAR (STR): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report NATURAL GAS SVC (NGS): Free Stock Analysis Report SPRAGUE RESRCS (SRLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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