Wexpro Acquisitions of Producing Properties (Notes)

12 Months Ended

Dec. 31, 2014

Wexpro Acquisition of Producing Properties [Abstract]

Wexpro Acquisition of Producing Properties

Note 17 - Wexpro Acquisitions of Producing Properties

On December 17, 2014, Wexpro acquired an additional interest in natural gas-producing properties in existing Wexpro-operated assets in the Canyon Creek Unit of southwestern Wyoming's Vermillion Basin for about $52.4 million. This is a "bolt-on" acquisition to the company's current Canyon Creek assets, which are governed by the 1981 Wexpro Agreement. Under the terms of the Wexpro II Agreement, this property must be submitted to the Commissions to be considered for cost-of-service treatment for the benefit of Questar Gas customers.

Because it contains producing properties, the Canyon Creek acquisition is accounted for under the accounting guidance for business combinations. Summary information related to the Canyon Creek acquisition is shown in the table below. Amounts are provisional and are subject to post-closing adjustments.

	(in millions)
Fair value of consideration transferred:
Net cash paid	$	52.4
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value:
Proved properties	$	54.1
Asset retirement obligations	(1.7		)
Total fair value of identifiable net assets acquired	$	52.4

Canyon Creek acquisition-related transaction costs of $0.3 million for 2014 are included in general and administrative expense on Questar's Consolidated Statement of Income. Amounts included in Questar's Consolidated Statements of Income for the period between the December 17, 2014 closing date and December 31, 2014 related to this acquisition are de minimis. Supplemental pro forma income information related to the Canyon Creek acquisition is not presented because it is immaterial to Questar's consolidated revenues, expenses and income in all periods presented.

On September 4, 2013, Wexpro completed the transaction announced in July 2013 to acquire an additional interest in natural gas-producing properties in the Trail Unit of southwestern Wyoming's Vermillion Basin (Trail acquisition) for $104.3 million, after post-closing adjustments. This acquisition was an addition to the company’s existing Trail assets, which are governed by the 1981 Wexpro Agreement. In the first quarter of 2014, the Public Service Commission of Utah and the Wyoming Public Service Commission (the Commissions) approved the inclusion of these properties in the Wexpro II Agreement, effective February 1, 2014.