Questar Gas Co. is a wholly-owned subsidiary of Questar Corp. In our ratings assessment of Questar and its subsidiaries, we use a consolidated ratings methodology and have equalized ratings across all entities in the corporate family. The ratings on Questar reflect the stable cash flows that its pipeline, Wexpro, and gas utility segments generate; the competitive cost structure of its exploration and production (E&P) operations; and its relatively conservative financial leverage. Questar's growing exposure to the highly volatile and capital-intensive E&P sector and the E&P division's geographic concentration in the Rocky Mountain region, where realized natural gas prices are typically low, partially offset these strengths. Although Questar is a diversified energy company, it derives the bulk of its profits from
