Barclays Maintains an 'Overweight' on Questar (STR); Analyst Day Takeaways

Barclays maintains an 'Overweight' on Questar (NYSE: STR), PT $19.

Barclays analyst says, "Wexpro Cost-of-Service Gas Reverting Back to a Price Lower Than Purchased Gas: While Wexpro gas has been more expensive than purchased gas for the past two years, it appears that gap will be closed by year-end as the forward curve inches upward and Wexpro's cost-of-service gas moves downward. As of 6/8, the forward curve indicated a gas price of $4.97 for 2011 and $5.19 for 2012 vs. an expected year-end cost-of-service gas price of $4.35-$4.40."

"Questar Pipeline Projects: Approximately $66 million of projects is scheduled to come online between November 2011 and July 2012, adding aggregate revenues of $17 million."

"Questar Gas: While the growth of the utility has been dependent on the economy and the customer count of its service territory, we think it is uniquely positioned to grow much faster than those components, at a rate of 8% to 9% annually over the next five years..."

For more ratings news on Questar click here and for the rating history of Questar click here.

Shares of Questar closed at $17.60 yesterday.

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