Contact: R. Curtis Burnett
Business: (801) 324-5647

QUESTAR INCREASES GAS/OIL HEDGE POSITIONS,
RAISES GUIDANCE RANGE FOR 2002 EARNINGS PERFORMANCE

SALT LAKE CITY — Questar Corp. (NYSE:STR) today reported it has taken advantage of rising energy prices to hedge an increased percentage of the company's natural gas and oil production in 20022004.

Keith O. Rattie, president and chief operating officer, said the new hedges reflect two key objectives. "We have locked in prices consistent with our earningsgrowth targets over the next three years," he said. "We are also protecting our 2002 earnings from downward movement in commodity prices in the second and third quarters of this year."

Questar also:

•Provided a higher estimated range for 2002 earnings of $1.85 to $2.05 per share. The previous guidance was $1.70 to $1.90 per share. The new guidance is based on the current forward price curves for gas and oil. It excludes the impact of a previously announced potential impairment of goodwill under the new SFAS No. 142 accounting rules.

•Indicated that the company remains on track to increase 2002 oilandgas production by 10% to 15% over the 2001 level of 85.6 billion cubic feet equivalent (bcfe).

•Announced an agreement with Aquila, an energy merchant company, for a pilot project to market a storage contract at the Clay Basin underground storage facility in northern Utah. The pilot project could be a steppingstone to a broader marketing/riskmanagement alliance.

The company provided the following updated information about its 20022004 hedging positions:

2002

Natural gas — With the new hedges, about 61% of Questar's total nonregulated equity production in the second and third quarters of 2002 is hedged at $3.05 per thousand cubic feet (Mcf) net to the well. Approximately 70% of the company's second and thirdquarter Rockies gas production is hedged at an average price of $2.57 per Mcf net to the well. Rattie noted that at today's basis of $.77 per Mcf for the Rockies and $.14 for the Midcontinent, the equivalent weighted average NYMEX price is $3.66 per Mcf.

For the fourth quarter of 2002, Questar has hedged approximately 53% of total equity gas production at a price of $3.42 per Mcf net to the well.

Crude oil — For April to December 2002, the company has hedged approximately 82% of equity production at an average price of $22.82 per barrel net to the well, including crudeoil quality adjustments.

2003

Natural gas — Approximately 47% of total gas production is hedged at an average price of $3.30 per Mcf, while 58% of Rocky Mountain production is hedged at $3.08 per Mcf net to the well.

Oil — Questar has hedged approximately 52% of 2003 oil production at an average price of $21.80 per barrel net to the well, including quality differentials.

2004

Natural gas — Approximately 28% of Questar's Rockies production is hedged at an average price of $3.23 per Mcf, net to the well. No 2004 oil production is hedged currently.

Commenting on the agreement with Aquila, Rattie said it "could be a steppingstone to a broader marketing and riskmanagement alliance between our two companies." In the initial phase of the agreement, a Questar subsidiary — Questar Energy Trading (QET) — will assign its capacity rights in the Clay Basin storage facility to Aquila. QET will provide physical market support and market intelligence. Aquila will be responsible for commercial optimization and risk management.

Rattie said QET will earn a fixed fee that approximates the nominal revenues it would realize without the alliance. Aquila will take market risk, while QET will share in the upside created by Aquila's activities. "Our objective in the initial phase is to quantify the additional earnings potential that might be achieved by adding other commercial activities to the alliance. Aquila is a worldclass energy merchant — we think they are the right partner for us in this activity," he said.