1 judd cook -director, business development-. questar corporation - founded in 1922 - headquartered...

1

Judd Cook-Director, Business

Development-

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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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

Confidential –Do Not Distribute 44

29 Stations Owned by Questar Gas

Questar Gas Stations

Natural Gas for Tansportion Industry Drivers

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• Price• Differential between natural gas and gasoline/diesel

• Policy• Usually driven by environmental concerns

EIA Fuel Price Differential Forecast

6

Environmental Benefits of CNG

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• 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)

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

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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Questar Fueling 2015 Highlights

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• 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

Questar Fueling Stations

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Contact Information

Judd Cook

www.QuestarFueling.comQuestar Fueling@questar.com

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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)

CNG Not as Sensitive To Commodity Swings

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* 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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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.