Strong interest reinforces demand for expanded energy infrastructure investment across the region as Southwest Gas advances long-term energy solutions LAS VEGAS, Dec. 8, 2025 /PRNewswire/ -- Great Basin Gas Transmission Company ("Great Basin"), a wholly owned subsidiary of Southwest Gas Corporation and part of Southwest Gas Holdings, Inc. (NYSE: SWX) ("Company"), today announced the successful close of its Second Supplemental Open Season for the 2028 Expansion Project ("Project") and the execution of assoc ...

Core Viewpoint - Southwest Gas Holdings, Inc. has announced the promotion of Justin S. Forsberg to Senior Vice President and Chief Financial Officer, effective December 1, 2025, succeeding Robert J. Stefani [1][2][3] Group 1: Leadership Transition - Forsberg will take on the responsibilities of principal financial officer, overseeing financial, accounting, investor relations, and internal audit functions [2] - The promotion reflects Forsberg's strong leadership and understanding of the business, which has been crucial during the company's transition to a fully regulated natural gas business [3] Group 2: Background of Justin S. Forsberg - Forsberg joined Southwest Gas in August 2023, bringing nearly 13 years of experience from IDACORP, Inc. and Idaho Power Company, where he was Director of Investor Relations & Treasury [4] - He is a Certified Public Accountant in Idaho and holds both a Bachelor of Science and a master's degree in accounting from Brigham Young University [4] Group 3: Company Overview - Southwest Gas Holdings, Inc. operates through its subsidiary Southwest Gas Corporation, focusing on purchasing, distributing, and transporting natural gas [6] - The company serves over 2 million customers across Arizona, Nevada, and California, emphasizing safe and reliable service while pursuing sustainable energy solutions [6]

Core Points - Southwest Gas Holdings, Inc. has declared a cash dividend of $0.62 per share for the first quarter of 2026, payable on March 2, 2026, with a record date of February 17, 2026, which annualizes to $2.48 per share [1] - The company has maintained a continuous quarterly dividend payment since its public offering in 1956 [1] Company Overview - Southwest Gas Holdings, Inc. is based in Las Vegas, Nevada, and operates through its subsidiary, Southwest Gas Corporation, which focuses on purchasing, distributing, and transporting natural gas [3] - The company serves over 2 million residential, commercial, and industrial customers across Arizona, Nevada, and California, emphasizing safe and reliable service while pursuing sustainable energy solutions [3]

Core Viewpoint - The comparison between Southwest Gas (SWX) and MDU Resources (MDU) indicates that SWX is currently the better option for investors seeking undervalued stocks due to its stronger earnings outlook and favorable valuation metrics [1][3][7]. Valuation Metrics - SWX has a forward P/E ratio of 21.94, while MDU has a forward P/E of 22.10, indicating that both companies are similarly valued in terms of earnings [5]. - The PEG ratio for SWX is 2.27, which is more favorable compared to MDU's PEG ratio of 3.26, suggesting that SWX has a better expected earnings growth relative to its price [5]. - SWX's P/B ratio is 1.46, compared to MDU's P/B of 1.53, further supporting the notion that SWX is relatively undervalued [6]. Zacks Rank - SWX holds a Zacks Rank of 2 (Buy), reflecting an improving earnings outlook, while MDU has a Zacks Rank of 5 (Strong Sell), indicating a negative earnings revision trend [3][7]. - The Zacks Rank system emphasizes companies with positive estimate revision trends, which currently favors SWX [2][3]. Value Grades - Based on various valuation metrics, SWX has earned a Value grade of B, while MDU has received a Value grade of D, highlighting SWX's superior valuation profile [6].

Core Points - Algonquin Power & Utilities Corp. has appointed Robert J. Stefani as Chief Financial Officer, effective January 5, 2026 [1][2] - Mr. Stefani has extensive experience in financial leadership, having previously served as CFO at Southwest Gas Holdings, where he played a key role in significant financial transformations [2][3] - The company emphasizes Mr. Stefani's ability to navigate complex financial transitions and optimize balance sheets, which aligns with Algonquin's strategic priorities for sustainable growth [3] Company Overview - Algonquin Power & Utilities Corp. is a diversified international utility company focused on generation, transmission, and distribution of energy and water solutions [4] - The company serves over one million customer connections primarily in the United States and Canada [4] - Algonquin's shares are listed on both the Toronto Stock Exchange and the New York Stock Exchange under various symbols [5]

Core Insights - Southwest Gas Holdings Inc. (SWX) reported third-quarter 2025 operating earnings of 6 cents per share, missing the Zacks Consensus Estimate of 9 cents by 33.3% and down from 9 cents in the same quarter last year [1] Group 1: Financial Performance - Total operating revenues were $0.32 billion, falling short of the Zacks Consensus Estimate of $0.37 billion by 14.5% and down 70.6% from $1.08 billion in the prior-year quarter [2] - Operating income increased to $37 million, up 83.9% from $20.1 million in the year-ago quarter [3] - Cash and cash equivalents as of September 30, 2025, were $778.6 million, compared to $314.8 million as of December 31, 2024 [4] - Net cash provided by operating activities in the first nine months of 2025 was $0.47 billion, down from $1.15 billion in the year-ago period [4] Group 2: Operational Metrics - Operations and maintenance expenses totaled $134.8 million, up 3% from $130.9 million in the year-ago quarter [3] - Total system throughput for the first nine months of 2025 was 159.81 million dekatherms, a decrease of 4.1% from 166.63 million dekatherms reported in the first nine months of 2024 [3] Group 3: Future Guidance - The company anticipates net income for the Natural Gas Distribution segment in 2025 to be in the range of $265-$275 million [5] - Capital expenditures are expected to be $880 million for 2025, with a total of $4.3 billion projected for the 2025-2029 period [5] Group 4: Market Position - Southwest Gas currently holds a Zacks Rank 2 (Buy) [6]

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Financial Data and Key Metrics Changes - The trailing 12-month return on equity (ROE) improved to 8.3% [4] - Earnings per share (EPS) related to continuing operations improved by $13.4 million, or $0.19 per diluted share compared to the previous year's third quarter, with consolidated EPS for the quarter at $3.74 per diluted share [25] - Full-year net income is now expected toward the top end of the $265 million-$275 million range [6][34] Business Line Data and Key Metrics Changes - Utility operating margin increased by $26.8 million, primarily driven by $22.3 million of combined rate relief across all jurisdictions and $1.6 million from customer growth [26] - Operating and maintenance (O&M) expenses increased by $4.1 million compared to the prior year quarter, mainly due to variable labor and benefit costs, including a $4 million increase in incentive compensation [26] Market Data and Key Metrics Changes - The company reported a significant increase in cash balance to nearly $780 million, with over $1.5 billion of liquidity across the business [9] - The company successfully completed the full deconsolidation and separation of Centuri, generating nearly $1.4 billion of net sale proceeds [7] Company Strategy and Development Direction - The company is focused on its natural gas-regulated business, aiming to address increasing energy needs in its growing service territories [4] - The anticipated rate case roadmap includes new rates in California in 2026 and requests for alternative forms of rate-making in Arizona and Nevada [6] - The company is optimistic about improved rate-making opportunities and is committed to delivering exceptional customer service while achieving strong financial performance [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding future regulatory environments in all jurisdictions and highlighted the potential for incremental growth driven by regional energy demand [5][6] - The company is confident in its trajectory as a leading pure-play natural gas business, focusing on robust organic rate-based growth [35] Other Important Information - S&P upgraded the company's issuer and senior unsecured long-term debt credit ratings to BBB+ with stable outlooks [9] - The CFO will be leaving the company on December 1, and an internal and external search process for a successor has been initiated [10] Q&A Session Summary Question: Can you walk through the specific timelines for the Great Basin project? - Management indicated that they are finalizing precedent agreements and expect to complete this process within the next week, with updates to be provided in the fourth quarter call [39][40] Question: What are the expectations for the formula rate in Arizona? - The company expects to file a rate case in March 2026, with new rates potentially effective by October 2026, and anticipates that alternative rate-making adjustments could begin as early as 2028 [19][21] Question: What is the cash position and timeline for using cash for construction? - The company plans to keep cash in short-term investments until construction starts, with ongoing assessments of the Great Basin project [64][65] Question: Will the company provide EPS guidance in the fourth quarter call? - The company expects to provide longer-term EPS guidance that incorporates potential opportunities along the line [66]

Financial Data and Key Metrics Changes - The trailing 12-month return on equity (ROE) improved to 8.3% [5] - Earnings per share (EPS) from continuing operations improved by $13.4 million, or $0.19 per diluted share, compared to the previous year's third quarter, with consolidated EPS for the quarter at $3.74 per diluted share [26][30] - Full-year net income is now expected toward the top end of the $265 to $275 million range [7][35] Business Line Data and Key Metrics Changes - Utility operating margin increased by $26.8 million, primarily driven by $22.3 million of combined rate relief across all jurisdictions and $1.6 million from customer growth [27] - Operating and maintenance (O&M) expenses increased by $4.1 million, mainly due to variable labor and benefit costs, including a $4 million increase in incentive compensation [27] - Year-to-date O&M expense is up approximately 2.5%, which is less than inflation, reflecting continued cost discipline [27] Market Data and Key Metrics Changes - The company successfully completed the full deconsolidation and separation of Centuri, generating nearly $1.4 billion of net sale proceeds, which were used to repay all debt at the holding company [8][10] - The cash balance increased to nearly $780 million, with over $1.5 billion of liquidity across the business [10][11] Company Strategy and Development Direction - The company is focused on its natural gas-regulated business and is optimistic about future regulatory environments in all jurisdictions [5][6] - Anticipated rate cases in California, Arizona, and Nevada are expected to improve rate-making opportunities and enhance returns for shareholders [7][19] - The company aims to sustain robust organic rate-based growth driven by strong regional demand while enhancing earnings through disciplined financial management and operational excellence [36] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future and the promising opportunities ahead, particularly in light of strong economic activity in service areas and positive regulatory outcomes [11][35] - The company is committed to maintaining an investment-grade profile and has received an S&P upgrade to BBB+ with stable outlooks [10][33] Other Important Information - Rob Stefani, the CFO, will be leaving the company on December 1, and the board has initiated a search for his successor [11][12] - The company plans to continue paying a competitive dividend to shareholders, with planned payouts in 2025 expected to result in a payout ratio competitive with natural gas peers [32] Q&A Session Summary Question: Update on Great Basin project timelines and capital costs - Management discussed the finalization of precedent agreements and the potential for a supplemental open season to clarify capacity needs, with updates expected in the fourth quarter [39][41] Question: Clarification on margin increase components - The margin increase was attributed to rate relief, customer growth, and recovery mechanics on interest recovery [48] Question: Timeline for FERC filing and potential obstacles - Management confirmed that they are still targeting a November 2028 in-service date and do not foresee major obstacles, focusing on finalizing commitments from shippers [50][78] Question: Cash position and construction timeline for Great Basin - Cash will remain in short-term investments until construction starts, with management assessing the project scope and timing [63][66] Question: EPS guidance for the fourth quarter - Management indicated that they expect to provide longer-term EPS guidance in the future, incorporating potential opportunities [67]

Financial Data and Key Metrics Changes - The trailing 12-month return on equity (ROE) improved to 8.3%, reflecting a commitment to consistent ROE improvement over the years [4] - Consolidated earnings per share (EPS) for the quarter was $3.74 per diluted share, with a year-over-year increase of $13.4 million or $0.19 per diluted share [23] - Full-year net income is now expected toward the top end of the $265 to $275 million range [5][32] Business Line Data and Key Metrics Changes - Utility operating margin increased by $26.8 million, primarily driven by $22.3 million of combined rate relief across all jurisdictions and $1.6 million from customer growth [24] - Operating and maintenance (O&M) expenses increased by $4.1 million, mainly due to variable labor and benefit costs, including a $4 million increase in incentive compensation [24] - Year-to-date O&M expense is up approximately 2.5%, which is below the rate of inflation, indicating a focus on cost discipline [24] Market Data and Key Metrics Changes - The company reported a significant increase in cash balance to nearly $780 million, with over $1.5 billion in liquidity across the business [9] - The S&P upgraded the issuer and senior unsecured long-term debt credit ratings to BBB+ with stable outlooks, reflecting an improved corporate risk profile [9][30] Company Strategy and Development Direction - The company has fully deconsolidated and separated from Centuri, allowing for a stronger focus on its natural gas-regulated business [4] - Future rate-making opportunities are anticipated in California, Arizona, and Nevada, with plans for new rates in California by 2026 and alternative rate-making requests in Arizona and Nevada [5][18] - The company aims to enhance transparency and align with long-term value creation as a fully regulated natural gas business [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding future regulatory environments across all jurisdictions and highlighted significant regional energy demand driving potential growth [5][10] - The company is confident in its trajectory as a leading pure-play natural gas business, focusing on robust organic rate-based growth driven by strong regional demand [32] Other Important Information - The company completed four follow-on offerings and three concurrent private placements, generating nearly $1.4 billion of net sale proceeds, which were primarily used to repay outstanding debt [7][29] - The board has initiated a search for a new CFO following Rob Stefani's departure, with internal and external candidates being considered [10][58] Q&A Session Summary Question: Update on Great Basin project timelines and capital costs - Management discussed the finalization of precedent agreements and the potential for a supplemental open season to clarify capacity needs, with updates expected in the fourth quarter [37][39] Question: Clarification on margin increase components - The margin increase was attributed to rate relief, customer growth, and recovery mechanics on interest recovery mechanisms [45] Question: Timeline for FERC filing and potential obstacles - The company remains on track for a November 2028 in-service date and plans to file with FERC in the fourth quarter of 2026 [47][74] Question: Cash position and construction timeline for Great Basin - Cash will remain in short-term investments until construction begins, with assessments ongoing regarding the project scope [60][62] Question: EPS guidance for the fourth quarter - The company expects to provide longer-term EPS guidance in the fourth quarter, incorporating potential opportunities [63]