QUESTAR OUTLINES 2002 CAPITAL-SPENDING PROGRAM

SALT LAKE CITY — Questar Corp. (NYSE:STR) said it projects capital expenditures of approximately $376 million in 2002, with continued emphasis on gas-development drilling and other nonregulated activities.

Questar, an integrated natural gas company, expects a record $987 million in capital expenditures in 2001, including $406 million in acquiring a privately held exploration and production company in July.

R.D. Cash, Questar chairman and CEO, said the 2001 and 2002 expenditures "will provide the catalyst for achieving our objective of consistent doubledigit earnings growth over the next several years."  Over the 2001-2002 period, "we expect to spend 61% of capital expenditures for nonregulated opportunities with higher return potential, which is one of our primary strategies," Cash said.

He noted that the acquired exploration and production assets increased the company's nonregulated oil and gas reserves by almost 59% to 1.1 trillion cubic feet equivalent, as of Sept. 30, 2001. In addition, the acquisition enhanced the company's significant inventory of drilling prospects.

Questar's 2002 capital-spending program anticipates $180 million of spending by the nonregulated Market Resources group. The majority of spending would be for oil and gas-development drilling, $143 million, and gas gathering and processing, $27 million. The budget includes $26 million for Wexpro Co., a subsidiary that develops gas owned by Questar's gas-distribution utility.

Questar's Regulated Services group – comprising interstate gas-transmission and retail gas distribution – projects 2002 expenditures of $165 million. The budget includes $55 million to expand the gas-distribution system, $42 million for transmission and storage projects, and $35 million for partnerships and other projects. Cash noted that the gas-distribution utility continues to enjoy one of the fastest customer-growth rates in the industry.

Cash said the 2002 capital-spending program "allows us to continue our growth strategies while beginning to reduce debt  to more customary levels." He noted that "2001 presented extraordinary opportunities, which we were able to pursue because of our strong balance sheet and cash flows."

Questar is a $2.9 billion diversified natural gas company headquartered in Salt Lake City. Through subsidiaries, it engages in energy development and production; gas gathering and processing; wholesale gas, electricity and liquids trading; retail energy services; interstate gas transmission and storage; retail gas distribution; and information systems and technologies.

Forward-Looking Statements:

This release contains statements expressing expectations of future plans, objectives and performance that constitute forwardlooking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements based on future expectations rather than on historical facts are forwardlooking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. A discussion of risks and uncertainties, which could affect future results of Questar and its subsidiaries, is included in the company's periodic reports filed with the Securities and Exchange Commission. 

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