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![Page 1: 1 Judd Cook -Director, Business Development-. Questar Corporation - Founded in 1922 - Headquartered in Salt Lake City, UT - Integrated Natural Gas Company.](https://reader035.fdocuments.us/reader035/viewer/2022062807/5697bff31a28abf838cbc545/html5/thumbnails/1.jpg)
1
Judd Cook-Director, Business
Development-
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Questar Corporation- Founded in 1922- Headquartered in Salt Lake City, UT
- Integrated Natural Gas Company- $5.37 Billion
Enterprise Value
Wexpro (Development & Production)
Questar Pipeline (Transmission)
Questar Gas (Distribution)
Questar Fueling (CNG Infrastructure)
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Confidential –Do Not Distribute 33
Rich CNG History
1981
• Installed 1st NGV station and converted 25 test vehicles
1989
• Installed 2nd NGV station; Converted 100 NGVs (21 of the original 25 were still operating)
1997
• Questar Gas operating 857 NGVs
2009
• Five new stations opened. Received federal DOE grant for $14.9 million with 22 partners
2012
• Questar Fueling formed to design, build and operate CNG stations nationwide
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Confidential –Do Not Distribute 44
29 Stations Owned by Questar Gas
Questar Gas Stations
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Natural Gas for Tansportion Industry Drivers
Confidential –Do Not Distribute 5
• Price• Differential between natural gas and gasoline/diesel
• Policy• Usually driven by environmental concerns
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EIA Fuel Price Differential Forecast
6
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Environmental Benefits of CNG
Confidential –Do Not Distribute 7
• Natural gas vehicles generally emit 15 - 20 percent fewer GHG emissions than comparable gasoline and diesel vehicles on a well-to-wheels basis.
• Medium and heavy duty natural gas engines were the first engines to satisfy U.S. Environmental Protection Agency’s (EPA) demanding 2010 emission standards for nitrogen oxides (NOx).
• The light-duty Honda Civic Natural Gas held the American Council for An Energy-Efficient Economy’s (ACEEE) title of “Greenest Vehicle” for eight consecutive years.
Carbon Dioxide Emissions Coefficients by Fuel
Pounds CO2 Pounds CO2
Carbon Dioxide (CO2) Factors: Per Unit of Volume or Mass Per Million Btu
Diesel 22.4 gallon 161.3
Natural Gas 119.9 thousand cubic feet 117.0
Gasoline 19.6 gallon 157.2Source: U.S. Energy Information Administration estimates.
Note: To convert to carbon equivalents multiply by 12/44.
Coefficients can vary slightly, depending upon estimation method.
Detailed factors from the Voluntary Reporting Program (discontinued)Annual factors from the EIA Greenhouse Gas Inventory (discontinued)
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Confidential –Do Not Distribute 88
Established in March 2012 to meet needs of expanding market for compressed natural gas (CNG) for transportation. • Priority areas of focus:
• Trucking terminal-based facilities for waste, transit and long-haul fleets.
• Public-access stations in strategic locations near terminals and key routes.
• Focus on class 6, 7 and 8 trucks; • Large light-duty and medium-duty fleets (oil & gas producers,
waste haulers)
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*Information obtained from SEC filings, annual reports, and company news releases
Accelerated Market Adoption
100%
75%
1950
25%
0%
Shar
e
1970 1990 2010 2030
50%
Diesel
Natural Gas
Source: MacKay & Co., and Wards Auto Group, a division of Penton Media, Inc.; 2) Westport
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EIA Forecasts of Natural Gas Consumption for Transportation
10*EIA 2014 Energy Outlook Table A2 & B2, converted to GGE’s
2012 2020 2025 2030 2035 2040 -
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
8,000,000,000
EIA's Forcasted GGE's Per Year Reference Case
GGE's Per Year
11.3% Annual Growth 2012-2040
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Confidential –Do Not Distribute 11
Questar Fueling 2015 Highlights
11
• Completed Stations:• Dallas TX• Desoto TX• San Antonio TX• Kansas City KS• Topeka, KS• Salt Lake City UT• Phoenix, AZ
• Expanded existing contracts with Swift Transportation and Central Freight• Awarded two new stations with Frito Lay (SLC and Denver)• Signed Anheuser-Busch to supply CNG in Houston and Dallas• Awarded $2.2 million dollar grant from state of Texas for station development
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Questar Fueling Stations
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Confidential –Do Not Distribute 14
36%
35%
11%
13%
Natural Gas DemandT
rill
ion
Cu
bic
Fe
et
Source: U.S. Energy Information Administration (April 2014)
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CNG Not as Sensitive To Commodity Swings
15
* Assumes that 1 GGE of CNG contains 125,000 Btu** Numbers reflect average Questar Fueling Station
$4/ MMBtu $5/ MMBtu $6/ MMBtu $7/ MMBtu $8/ MMBtu $-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
Commodity Cost
Taxes
Compression, Land, G&A, Operating Expenses, Return
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Confidential –Do Not Distribute 16
Questar Gas CNG demand
Jan
-07
Jul-
07
Jan
-08
Jul-
08
Jan
-09
Jul-
09
Jan
-10
Jul-
10
Jan
-11
Jul-
11
Jan
-12
Jul-
12
Jan
-13
Jul-
13
Jan
-14
Jul-
14
Jan
-15
0
100,000
200,000
300,000
400,000
500,000
600,000
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
NG gal. sold Unleaded Price
Gallons Cost/Gal.