On Mar 25, 2013, shares of
) reached a 52-week high of $24.16 based on a slew of positive
During the first half of January, Questar Fueling, a unit of
Questar Corporation, entered into a contract to construct and
operate a compressed natural gas (CNG) fueling facility in
Houston, Texas. This facility is expected to serve up to
200 natural gas-powered trucks operated by
) and Central Freight Lines - both industry leaders in terms of
adopting CNG as a viable transportation fuel alternative for the
After that, on Feb 20, 2013, Questar reported earnings per share
(excluding retirement incentive costs) of 38 cents, which were up
by 11.8% from the profit of 34 cents earned in the prior-year
quarter. The result also surpassed the Zacks Consensus Estimate
by 3 cents. The earnings beat was primarily due to the high rate
of drilling success.
In addition, Questar sports an impressive long-term expected
earnings growth rate of 4.80%.
Utah-based Questar is a natural gas-focused energy company with
three principal subsidiaries - Wexpro Company, Questar Pipeline
and Questar Gas Company. In Jun 2010, Questar completed the
spin-off of its unregulated E&P business and gas gathering
and marketing segment into the independent and publicly traded
QEP Resources Inc. (QEP).
Questar, after the QEP Resources spin-off, has transformed itself
into a natural gas-operated energy company, which focuses
exclusively on exploring natural gas resources while serving
customers domestically and worldwide. The company is expected to
perform well in the coming quarters, given its focused and
experienced managerial team, manageable debt maturities and
Moreover, Questar enjoys of one of the best credit ratings in the
utilities sector. This provides the company with a competitive
advantage in accessing capital at a reasonable cost.
Questar currently carries a Zacks Rank #2 (Hold), implying that
it is expected to outperform the broader U.S. equity market over
the next one to three months.
Other Stocks to Consider
Two firms in the energy sector that are expected to
significantly outperform the equity markets in the next one to
three months are
Helmerich & Payne Inc
Range Resources Corporation
). Both of these stocks carry a Zacks Rank #1 (Strong Buy).
HELMERICH&PAYNE (HP): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
QUESTAR (STR): Free Stock Analysis Report
SWIFT TRANSPORT (SWFT): Free Stock Analysis
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