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July 12, 2001 (N) NYSE:STR 01-16
Contact: Chad Jones Office: (801) 324-5485
Questar Gas Completes Purchase of Two Local Distribution Companies
SALT LAKE CITY Questar Gas received final approval from the Utah Public Service Commission to purchase Utah Gas Service Company and completed the purchase today.
With the purchase Questar will now serve natural gas customers in Moab, Monticello, Vernal and Maeser, Utah. Questar purchased both Utah Gas Service Company and Wyoming Industrial Gas, privately held companies based in Denver. Wyoming Industrial Gas serves Kemmerer and Diamondville, Wyo.
The stock-for-stock acquisitions, valued at $10.9 million, will add about 10,500 customers to Questar Gas's service territory. That is more than half the number of customers Questar Gas typically adds annually. The company will now serve about 720,000 customers in Utah, southwestern Wyoming and southeastern Idaho.
"We are thrilled to be able to provide natural gas service to customers in Moab, Monticello, Vernal, Maeser, Kemmerer and Diamondville," said Nick Rose, Questar Gas president and CEO. "For more than 70 years, we have worked in neighboring communities that have come to rely on Questar's lower-priced gas and excellent customer service. We are confident that our new customers will be pleased with our service as well."
According to Rose, the system expansion will have no impact on current Questar Gas customers. However, former Utah Gas and Wyoming Industrial Gas customers will benefit from lower-priced gas from company-owned wells. With the new areas' market saturation
well below that in Questar's current service territory, the company looks forward to providing natural gas service to those who currently do not take advantage of the benefits of natural gas.
Questar Gas is a subsidiary of Questar Corp., a diversified natural gas business in Salt Lake City. It delivers natural gas to residential, commercial and industrial customers throughout Utah, southwestern Wyoming and southeastern Idaho.
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