Board Approves 11% Increase in Quarterly Dividend

SALT LAKE CITY, August 12, 2003 -- Questar Corp.'s (NYSE:STR) board of directors today approved an 11% increase in the company's quarterly common stock dividend from $.185 (18.5 cents) per share to $.205 (20.5 cents). The dividend is payable Sept. 15, 2003, to shareholders of record on Aug. 22, 2003. The dividend is $.025 (2.5 cents) per share higher than a year earlier and the company's 235th consecutive dividend without a reduction.

Keith O. Rattie, Questar chairman, president and chief executive officer, said: "This 11% increase in our annual dividend should send two messages to our investors: First, it's our way of saying thank you to our long-term shareholders for their loyalty and continued confidence in Questar. Second, we think Questar has a bright future. We believe we can continue to grow earnings above the industry average by rigorously holding ourselves accountable for improving returns on reinvested capital. Our target long-term payout of about 40% at an assumed $3 per million Btu (Henry Hub) gas-price environment strikes a balance between value created by growth and value created by distributing cash through dividends back to our shareholders."

Questar is an integrated natural gas company headquartered in Salt Lake City with total assets of $3.1 billion. Through subsidiaries, it engages in gas and oil development and production; gas gathering, processing and marketing; interstate gas transmission and storage; retail gas distribution; retail energy services; and information systems and technologies.

Detailed financial and operating statements are available on Questar's Web site.

Responds to Adverse Court Ruling; Reaffirms 2003 Earnings Guidance

SALT LAKE CITY, August 3, 2003 -- Questar Corp. (NYSE:STR) today said it would pursue available legal and regulatory alternatives in response to a Utah Supreme Court decision on Aug. 1, 2003, rejecting the recovery of certain natural gas-processing costs incurred by its retail natural gas-distribution subsidiary Questar Gas Co.

In its decision, the Court reversed an order by the Public Service Commission of Utah (PSCU) allowing Questar Gas to collect $5 million a year in rates to recover costs associated with removing carbon dioxide in gas prior to delivery to its residential customers. The court ruled that the Public Service Commission, in an August 11, 2000, order approving a stipulation, did not comply with its statutory responsibilities and regulatory procedures. The court said the PSCU "correctly recognized Questar Gas's obligation to secure the safety of its customers ... " but made an error in not formally determining the prudence of the utility's actions.

Keith O. Rattie, Questar chairman, president and chief executive officer, said: "We intend to work with the PSCU to resolve this. Questar Gas had to respond to a serious safety situation that we had to address. The court's concerns about the commission's decision-making process notwithstanding, Questar Gas did the right thing for its customers and should be allowed to recover its costs."

Questar Gas will continue to seek recovery of CO2-processing costs incurred since June 1999, and to ensure recovery of future processing costs. Under past commission orders, the company has recovered in rates approximately $21 million for gas processing.

Pending the outcome of the company's initiatives, Questar Gas and Questar Corp. are reflecting in their second-quarter results a liability for revenues that had been included in rates. With the estimated $13.6 million, or $.16 per diluted share, after-tax liability, Questar Gas had an adjusted loss of $16.5 million dollars in the second quarter of 2003 versus the previously announced $2.8 million loss. As a result, Questar Corp.'s adjusted second-quarter net income was $20.3 million, or $.24 per diluted share, compared with the previously announced $33.9 million, or $.40 per share. For the first six months of 2003, Questar Corp.'s adjusted earnings are $84.9 million, or $1.01 per share, compared with $64.2 million, or $.78 per share, in the first half of 2002. Until the matter is resolved, Questar Gas's earnings could be reduced by approximately $.02 per share in 2003 and $.04 per share in future years. Recording the liability will have no material impact on the credit, cash or liquidity of Questar or Questar Gas.

Seeking to put the order into "proper perspective," Rattie reaffirmed the company's previous guidance that 2003 earnings -- excluding the one-time charge -- would be in the range of $2.10 to $2.25 per share. He said the guidance is based on the assumption that natural gas prices remain at or near the levels reflected in the forward commodity-price curve on Thursday, July 31. Rattie said the guidance excludes the one-time cumulative effect of implementing the new SFAS 143, Accounting for Asset Retirement Obligations, and any gains and losses from asset sales.

Alan K. Allred, Questar Gas president and chief executive officer, said: "We acted responsibly and effectively to protect the safety of our customers. We incurred these costs in good faith. This was the lowest cost solution for our customers. We thought this issue had been resolved at the PSCU in 2000. We are surprised and dismayed that we have not finally resolved the question of our ability to recover these necessary and legitimate costs. We will pursue this issue to show that we acted prudently. We continue to believe that past and future costs are recoverable in our rates."

The Supreme Court's order was issued in response to an appeal by the Committee of Consumer Services, a Utah state agency. The committee opposed the PSCU decision. The State Division of Public Utilities and various industrial customers supported the commission's decision.

BACKGROUND

Questar Gas customers historically have their appliances set to burn gas with a higher heat content than what is typical for other LDCs throughout the U.S. because of the composition of regional gas supplies. Almost all the gas delivered to Questar Gas customers is transported by Questar Pipeline. Questar Pipeline is an open-access pipeline regulated by the Federal Energy Regulatory Commission (FERC). Questar Pipeline is required to transport gas to any shipper as long as the shipper complies with the pipeline's published tariff. Since the early 1990's, the heat content of gas flowing on Questar Pipeline has been declining for a variety of reasons. But all gas flowing into Questar Pipeline -- including gas from the Ferron coal seam in Central Utah -- complies with the FERC tariff. The declining heat content of gas flowing into Questar Gas's system from Questar Pipeline -- while meeting pipeline specifications -- could eventually pose a serious safety hazard for Questar Gas customers. Long term, Questar Gas customers will have to adjust their appliances to burn the lower-Btu gas safely. But Questar Gas determined in 1997 that the lowest cost alternative was to contract with Questar Pipeline to extract CO2, which has the effect of raising the heat content. This would give Questar Gas customers several years to adjust their appliances. The average customer would pay about $5 to $6 per year for CO2 removal, far less than the next best alternative.

Initially, the Utah Public Service Commission (PSCU) in late 1999 denied Questar Gas's request to recover CO2-removal costs in its gas-cost pass-through rate filing. Questar Gas filed a general rate case and appealed to the Utah Supreme Court. The PSCU in August 2000 issued an order in the general rate case allowing Questar Gas to recover about two-thirds of its costs. In October 2000 the Utah Supreme Court ruled that the commission had erred in denying recovery in its pass-through rates, and remanded the case to the PSCU. The PSCU in August 2002 issued an order on the remand, awarding Questar Gas an additional one-time recovery of past costs. The Committee of Consumer Services appealed both orders to the Utah Supreme Court. The Court heard the case in June 2003 and issued its order Friday, Aug. 1, 2003.

Questar is an integrated natural gas company headquartered in Salt Lake City with total assets of $3.1 billion. Through subsidiaries, it engages in gas and oil development and production; gas gathering, processing and marketing; interstate gas transmission and storage; retail gas distribution; retail energy services; and information systems and technologies.

Forward-looking Statements

This release contains certain forward-looking statements within the meaning of the federal securities laws. Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended Dec. 31, 2002. Subject to the requirements of otherwise applicable law, the company cannot be expected to update the statements contained in this news release or take actions described herein or otherwise currently planned.

Earnings Rise 15% In Second-Quarter 2003

SALT LAKE CITY, July 30, 2003 -- Questar Corp. (NYSE:STR) reported a 15% increase in net income for second-quarter 2003 compared with the year-earlier period due primarily to higher realized prices for nonregulated natural gas and oil production.

The integrated natural gas company earned $33.9 million, or $.40 per diluted share, in the 2003 quarter compared with $29.4 million, or $.36 per share, in the prior-year period. Questar Market Resources (QMR), a nonregulated subsidiary that conducts gas and oil exploration, production and gathering, reported a $5 million, or 22%, year-to-year earnings improvement because of strong natural gas and oil selling prices.

For the first six months of 2003, Questar's net income was $98.5 million, or $1.17 per share, compared with $64.2 million, or $.78 per share, in the first half of 2002. First-half 2003 results included a $.07-per-share noncash charge in the first quarter resulting from the cumulative effect of implementing SFAS 143, Accounting for Asset Retirement Obligations. This new accounting rule requires companies to record a liability for the anticipated costs of retiring long-lived assets. In first-quarter 2002, Questar's net income was reduced by a $.19 per-share cumulative effect of a change in accounting for goodwill.

Excluding the one-time charges related to the new accounting rules, Questar earned $104.1 million, or $1.24 per diluted share, in first-half 2003 versus $79.5 million, or $.97 per share, in the comparable 2002 period.

For the trailing 12 months ended June 30, 2003, Questar earned $189.9 million, or $2.28 per share, compared with $128.6 million, or $1.57 per share, for the comparable period ended June 30, 2002. Questar's consolidated return on equity for the 12 months ended June 30, 2003, was 16.6% while return on assets totaled 12.1%.

There was an average of 83.9 million common diluted shares outstanding in the first six months of 2003 versus 82.5 million shares a year earlier.

Keith O. Rattie, Questar chairman, president and CEO, said: "We're on track with our 2003 plan. We're off to a good start with our program to accelerate drilling at our Pinedale natural gas field. Our regulated businesses and our unique Wexpro gas-development subsidiary are delivering as expected. We are also setting the stage for 2004 by hedging a substantial portion of our proved-developed production at higher realized prices."

Rattie said that if projected commodity prices remain at or near current levels through the remainder of 2003, Questar's earnings could range between $2.10 to $2.25 per share. This compares with the company's previous guidance of $2.05 to $2.20 per share.

Commenting on the 2004 outlook, Rattie said, "We're not uncomfortable at this early stage with the First Call 2004 consensus earnings forecast of $2.35 per share, assuming natural gas prices remain at or near current levels. However, we are just now beginning to develop our detailed 2004 business plan, which will be reviewed and approved by our Board of Directors in late October. We will fine-tune our 2004 outlook when we issue our third-quarter results."

SECOND-QUARTER 2003 RESULTS

Nonregulated activities: higher commodity prices boost results

QMR reported net income of $27.8 million in second-quarter 2003 compared with $22.8 million in the year-earlier period. Questar Exploration and Production, which conducts exploration and production operations in the Rockies and the Midcontinent, earned $17.4 million in the 2003 quarter versus $13.3 million a year earlier. The 2002 quarterly results included $900,000 in net income from a Canadian subsidiary that was sold in the fourth quarter of the year, a $2.8 million after-tax gain from a lawsuit settlement, and $1.1 million in Section 29 tax credits, which are no longer available after Dec. 31, 2002.

QMR's average realized selling price for natural gas rose 44% to $3.66 per thousand cubic feet (Mcf) compared with $2.55 per Mcf in the 2002 quarter. The 2003 results reflected higher natural gas prices and the significant narrowing of the Rockies' natural gas-basis differential following the May 1 start-up of a regional pipeline expansion. QMR received an average price of $22.45 per barrel for nonregulated oil and natural gas-liquids production, 9% higher than in the 2002 quarter.

Nonregulated natural gas-equivalent production dropped 12% during the current-year quarter to 21.4 billion cubic feet equivalent (bcfe) versus 24.3 bcfe in the prior-year period. The decline was due primarily to the sale of the company's Canadian subsidiary and producing properties in the San Juan and Midcontinent regions of the U.S. in the second half of 2002. The company's production was expected to decline in the second quarter of 2003 because of winter-drilling restrictions on federal lands in the Rockies, including the Pinedale field. QMR said it remains on track to increase production from continuing operations 5 to 10% in 2003 to 88-92 bcfe.

Wexpro, a QMR subsidiary that develops gas reserves on behalf of Questar's gas-distribution utility, earned $8.5 million in the second quarter of 2003, a $600,000 year-to-year improvement. Wexpro earns a specified return on its net investment in commercial wells. Wexpro's investment base increased to $160 million at the end of second-quarter 2003 compared with $159 million at the end of the first quarter of the year.

QMR's gas-gathering, processing and marketing operations earned a combined $1.9 million in the 2003 quarter compared with $1.6 million for the comparable year-earlier quarter. Net income from QMR's share of Rendezvous Gas Services increased from $200,000 to $800,000 in the 2003 quarter compared with the year-earlier period. A QMR subsidiary, Questar Gas Management, is a 50% partner in Rendezvous, which provides gathering and processing services for the Pinedale and Jonah producing areas. Rendezvous will continue to benefit from growing gathering volumes from the Pinedale Anticline.

During the second quarter, the company added to its hedge positions in the Rockies and the Midcontinent, which are summarized below.

Regulated activities: customer growth remains strong

Questar Regulated Services -- which includes interstate transmission and storage and retail gas distribution -- reported net income of $4.7 million during second-quarter 2003 versus $4.5 million a year earlier. Questar Pipeline -- an interstate gas-transmission and storage subsidiary -- earned $7.3 million in the 2003 quarter versus $7.9 million in the comparable 2002 period. Increased operating and maintenance expense offset higher revenues from expanded transportation volumes. Questar Pipeline's total transportation volumes grew 14% to 93.6 million decatherms compared with a year earlier. The growth reflected the second-half 2002 start-up of the eastern zone of the Southern Trails Pipeline along with increased deliveries to the Kern River Pipeline expansion, which commenced operations on May 1 of this year.

Questar Gas -- which provides retail gas-distribution service in Utah, southwestern Wyoming and southeastern Idaho -- reduced its seasonal loss from $3.5 million in second-quarter 2002 to $2.8 million in the current-year period. The utility benefited from new general rates that went into effect Dec. 30, 2002, higher temperature-adjusted usage per customer and steady customer growth. Questar Gas served 749,794 customers at the end of the 2003 quarter, a one-year increase of 19,614 or 2.7%.

Corporate and Other Operations reported net income of $1.4 million in second-quarter 2003 compared with $2.1 million in the year-earlier period due to lower margins on services provided to affiliates.

FIRST-HALF 2003 RESULTS

Higher commodity prices boost nonregulated results

Questar Market Resources' net income for the first six months of 2003 was $56.7 million compared with $40.4 million for the 2002 period. Natural gas production declined 5% to 38.1 bcf while the average realized selling price was 44% higher at $3.59 per Mcf. Nonregulated oil and natural gas-liquids production decreased 23% to 1.1 million barrels -- due primarily to 2002 property sales -- while the average realized selling price improved 20% to $23.59 per barrel.

Regulated activities

Questar Regulated Services earned $38.4 million in the first half of 2003, a $2.1 million increase over the prior-year results. Questar Pipeline's net income was $15.3 million in the first half of 2003, the same as the 2002 result. The 2003 earnings were $1.1 million higher as a result of the 2002 sale of a subsidiary's 50% ownership of the TransColorado Pipeline. This was offset by higher operating and maintenance costs. Questar Gas's net income was $22.9 million in the current-year period compared with $20.7 million in the first half of 2002. The improvement resulted from new rates, higher usage per customer and customer growth.

Corporate and Other Operations reported earnings of $3.4 million for the first six months of 2003. With the goodwill-accounting adjustment, the segment lost $12.5 million in the first half of 2002.

Questar is an integrated natural gas company headquartered in Salt Lake City with total assets of $3.1 billion. Through subsidiaries, it engages in gas and oil development and production; gas gathering, processing and marketing; interstate gas transmission and storage; retail gas distribution; retail energy services; and information systems and technologies.

Forward-looking Statements

This release contains certain forward-looking statements within the meaning of the federal securities laws. Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended Dec. 31, 2002. Subject to the requirements of otherwise applicable law, the company cannot be expected to update the statements contained in this news release or take actions described herein or otherwise currently planned.

Hosts Earnings Teleconference

SALT LAKE CITY, July 23, 2003 -- Questar Corp. (NYSE:STR) will hold a teleconference and webcast to discuss its second-quarter and first-half 2003 earnings results on Thursday, July 31, at 9:30 a.m. EDT (7:30 a.m. MDT). Keith Rattie, Questar chairman, president and CEO, and Stephen Parks, senior vice president, treasurer and CFO, will make presentations during the teleconference.

Interested persons may listen to the webcast online at the Questar website, www.questar.com . A replay of the teleconference will be available in the Audio Archives section of the website. A telephone audio replay will be available through August 7, 2003, by calling (800) 642-1687 (access code 1569699).

Questar is a $3.1 billion integrated natural gas company headquartered in Salt Lake City. Through subsidiaries, it engages in gas and oil development and production; gas gathering, processing and marketing; interstate gas transmission and storage; retail gas distribution; retail energy services; and information systems and technologies.