Questar Corp. (NYSE: STR)
Questar Corp News
Early Monday morning before the market opened, Dominion Resources released news that they entered into a deal to buy natural-gas company Questar Corp. (STR) in an all-cash for $4.4 billion or $25 per share and should be completed by the end of the year. Dominion said the deal would “provide enhanced geographic diversity” to its operations, and said it expects the value of the Questar pipeline system to rise over time as Utah and other Western states seek to comply with the requirements of the U.S. Environmental Protection Agency’s Clean Power Plan and meet state-mandated renewable standards. (MarketWatch) Shares of Questar closed Friday at $19.70 and with a $25 per share premium we’re looking at a 26% increase. This move will definitely break shares out of the downtrend they’ve been in dating back to January of last year. Look for this deal create excellent long term value for Dominion Resources,(D), which will add to the overall bottom-line and to its investors.
Questar Corp. is an integrated natural gas holding company. The company operates through its three subsidiaries: Questar Gas Co., Questar Pipeline Co., and Wexpro Co. The Questar Gas provide retail natural gas-distribution service in Utah, Wyoming and Idaho. The Questar Pipeline operates interstate natural gas pipelines and storage facilities in the western United States and provides other energy services. The Wexpro develops and produces natural gas from cost-of-service reserves for Questar Gas customers. Questar was founded in 1922 and is headquartered in Salt Lake City, UT.