(RTTNews) - Natural gas-focused energy company Questar Corp. (STR: News ) Wednesday reported a fall in profit for the third quarter, impacted by lower gas prices. However, earnings per share before items as well as revenues came in above the Street expectations. In addition, the company raised its full-year earnings outlook.

Salt Lake City, Utah-based Questar's net income attributable to the company more than halved to $98.2 million or $0.56 per share from $204.2 million or $1.16 per share last year.

Excluding gains and losses from sales of non-core assets and mark-to-market losses on natural gas basis-only swaps, net income attributable to the company slid to $105.1 million or $0.60 per share from last year's $181.3 million or $1.03 per share.

On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share. Analysts' estimates typically exclude special items.

Total revenues slipped to $599.8 million from $760.0 million for the same period last year, while analysts were expecting revenues of $541.88 million for the quarter.

In the sequentially preceding second quarter, net income fell to $77.9 million or $0.44 per share from $172.6 million or $0.98 per share last year, and total revenues slipped to $613.1 million from $825.8 million for the same period last year.
For the quarter under review, total operating expenses came down to $407.9 million from $443.5 million, helped by a decline in cost of natural gas and other products sold to $80.2 million from $131.2 million for the year earlier period. However, depreciation, depletion and amortization expenses rose to $168.6 million from $126 million last year.

Market resources revenues declined to $474.9 million from $601 million a year-ago, impacted by both lower natural gas prices as well as a drop in average production volumes. The segment's natural gas production volumes dropped to 39.2 billion cubic feet or Bcf from 40.4 million Bcf for the year earlier period. Total production volumes declined to 43.8 billion cubic feet equivalent or Bcfe from 45.3 Bcfe.

The company's largest segment and subsidiary of market resources that explores for, develops and produces natural gas and oil, Questar E&P's net income declined 66% to $49.6 million from $146.8 million a year earlier, mainly due to a combination of a 20% drop in per-unit realized prices, a 17% rise in per-unit production costs and a $36.5 million after-tax gain in the prior-year quarter related to the sale of non-core assets.

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