Questar is a vertically integrated holding company focused on drilling for, transporting, and distributing natural gas, which accounts for some 89% of their proved reserves. The company does business largely in the Rocky Mountains and mid-continental United States, engaging in exploration and production activities, providing midstream field services (gathering and processing gas for third parties) and interstate transportation (pipeline), and operating a regulated gas utility.
Questar's utility business provides stable operating cash flow, which allows the company to finance its riskier drilling and production activities at a lower interest rate than competitors. Furthermore, the company has enjoyed the tailwinds of rising gas prices, which have driven revenue and cash generation. Nonetheless, long-term pressure from breakthroughs in potentially sustainable (and perhaps someday more affordable) alternative energy sources may put a damper on current demand levels for natural gas.(Read more at Wikinvest )