Questar Corporation (gas company)

Questar Corporation was a natural gas public utility based in Salt Lake City, Utah. In June 2024, it was reported that Enbridge had completed its acquisition of the company for $4.3 billion.[1]

History

Questar Corporation was organized in Utah in 1984 as the holding company for Mountain Fuel Supply Company.[2]

In 1922, the Ohio Oil Company discovered natural gas near Rock Springs, Wyoming. Ohio Oil joined with Prairie Oil & Gas Co. and the Crawford interest of Pittsburgh to form the Western Public Service Corporation (incorporated October 6, 1928).[3][2] Mountain Fuel Supply Company became the company's hydrocarbon exploration and production affiliate.[4] Pipeline construction was begun on March 3, 1929 and was completed by October.[5][6] See map here.[7] The 380 mile pipeline of the Uintah Pipe Line Co. subsidiary cost $24 million to build and could deliver 60mmcfd. Distribution was through subsidiaries Ogden Gas Co., Utah Gas & Coke Co. (Salt Lake City), both acquired from the American Public Utilities Co. (Insull interests),[8] and Wasatch Gas Co. organized in 1929 (serving the remainder of the territory, including those town lying between Salt Lake City and Ogden).[9][10] in 1931 the Utah Valley Gas & Coke of Provo was acquired, but due to a stable supply of surplus coal gas was not supplied with natural gas until 1948.

During the Great Depression, its stock price fell from $46/share in September 1929 to $3/share in 1932 as most families could not afford natural gas.[2]

In 1935, the shareholders voted to reorganize the company, merging it with its subsidiaries and moving its headquarters from Pittsburgh to Salt Lake City.[2] Mountain Fuel Supply Company became the name of the reorganized consolidated company.[11]

In the mid-1930s, the company discovered natural gas in the Clay Basin region northeast of Utah.[2]

During World War II, the company was required by the War Production Board to halt new natural gas utility signups so that resources can be conserved for the war effort.[2]

In 1946, the company discovered the Church Buttes field in southwestern Wyoming.[2]

In 1971, the company acquired Interstate Brick, the largest brick-making facility in the Western United States. It was sold in 1990.[12]

In 1972, the company discovered the Brady field, about 30 miles southeast of Wyoming.[2] In 1976, certain shareholders attempted to replace management. At issue was whether management would "acknowledge or act upon the fact that the company was more of an oil company than a natural gas utility".[13]

In 1984, Mountain Fuel Supply Company shareholders voted to return to the holding company structure, and chose the name Questar Corporation as the new parent holding company name.[14]

In 1989, the company established a subsidiary, Questar Telecom, which acquired specialized mobile radio operations.[15] It also formed FuelMaker, a joint venture to market a new device that would allow natural gas vehicles to be refueled at home.[16]

In 1993, the company had three major lines of business: exploration and production activities conducted by Wexpro Company, Celsius Energy Company, and Universal Resources Corporation; interstate transmission activities conducted by Questar Pipeline Company; and retail distribution activities conducted by Mountain Fuel.[17]

In 1994, it acquired oil and gas properties from Union Pacific Resources for $94.5 million.[18] In August, Questar Telecom was sold to Nextel Communications for 3.9 million shares of stock.[19]

On January 1, 1998, Mountain Fuel Supply Company was renamed Questar Gas Company.[4] In September, the company acquired HSRTW Inc., which owned oil and gas reserves in Oklahoma, for $155 million.[20]

In 2001, the company acquired Shenandoah Energy for $406 million in cash and assumed debt.[21]

In April 2003, D. N. "Nick" Rose, president and chief executive officer of Questar, retired and was replaced by Alan K. Allred.[22]

In 2005, Knox Lawrence International acquired Consonus Inc., Consonus Inc., a Questar Corp. subsidiary that managed computer data centers for businesses.[23]

In November 2006, the company was added to the S&P 500.[24] It was removed from the index in 2010.[25]

On July 1, 2010, the company completed the corporate spin-off of its exploration and production business as QEP Resources.[26] In December 2015, Tesoro Logistics LP acquired its natural-gas pipeline and processing business for $2.5 billion in cash.[27] In 2021, QEP Resources was acquired by Diamondback Energy.[28]

In March 2012, the company moved from 180 East 100 South to its new headquarters building, a $45 million 170,000 square foot 6-story building at 333 South State Street in downtown Salt Lake City, Utah. It is one of the first LEED Silver energy-efficient buildings in downtown Salt Lake City.[29]

In September 2016, the company was acquired by Dominion Resources.[30][31] In June 2024, nine months after a deal was announced,[32] Enbridge completed the purchase of Questar Gas for $4.3 billion.