The Salt Lake City-based energy company, which is the parent of the natural gas utility that provides most Utahns with the fuel to warm their homes, said it expects its 2008 net income to range from $3.25 to $3.40 per share. The company was projecting per share earnings of $3.05 to $3.20.

Questar Chief Executive Keith Rattie said during a conference call Tuesday with securities analysts and investors that the company is off to a good start in '08. "Our Questar business units posted record first-quarter net income."

First-quarter net income grew 23 percent, to $185.8 million, or $1.05 per share, compared with $151.1 million, or 86 cents per share a year ago.

Revenue reached $1 billion, up 15 percent from $872 million generated during the same period a year earlier.

Questar's chief financial officer, Stephen Parks said the company's Market Resources subsidiary led the way for the company, growing net income 27 percent, to $139.3 million.

"All four of our market-resources segments - Questar E&P [exploration and production], Wexpro, Gas Management and Energy Trading - delivered double-digit net income growth," Parks said.

He added that the prices the company received for its natural gas, crude oil and natural gas liquids increased 16 percent during the first quarter, which more than offset increased production costs.

Rattie went on to point out that both of the company's regulated businesses - Questar Pipeline and Questar Gas - also posted solid results during the period.

Questar Gas, reported first-quarter net income of $30.6 million, which was 5 percent higher than the year-ago period. Questar Gas serves 881,900 homes and businesses, up 2.4 percent from a year ago, Parks said.

Questar Gas, according to the company, earns the majority of its annual net income in the first quarter.

Rattie reported the company's Questar Pipeline subsidiary experienced what was by far the best quarter in the company's history. Its net income grew 42 percent, to $15.9 million, compared with $11.2 million a year ago.

In a research note released after the company's conference call, analyst Ronald Barone of UBS Securities in New York reiterated his "buy" recommendation on Questar's stock and raised his target price to $72 from $70.

Questar's shares, which are listed on the New York Stock Exchange, closed Tuesday at $62.62, down $2.06 for the day.

steve@sltrib.com