Financial Performance - Consolidated net income for Q4 2024 was $92.5 million, or $1.28 per diluted share, compared to $72.9 million, or $1.01 per diluted share in Q4 2023, reflecting a year-over-year growth of 27%[1] - Full-year 2024 consolidated net income reached $198.8 million, or $2.76 per diluted share, up from $150.9 million, or $2.13 per diluted share in 2023, marking a 32% increase[1] - Adjusted net income for the twelve months ended December 31, 2024, was $198.8 million, up from $150.9 million in 2023, indicating a year-over-year increase of approximately 31.7%[39] - Basic earnings per share for Q4 2024 were $1.29, compared to $1.02 in Q4 2023, reflecting a year-over-year increase of 26.5%[39] - The diluted earnings per share for Q4 2024 was $1.28, up from $1.01 in Q4 2023, reflecting a 27% increase[42] Utility Segment Performance - The utility segment reported net income of $97.2 million in Q4 2024, an increase from $91.7 million in Q4 2023, driven by improved operating margin and lower O&M expenses[2] - Full-year 2024 utility net income was $261.2 million, compared to $242.2 million in 2023, representing an 8% growth[2] - Operating margin for the utility segment increased by $30 million in Q4 2024, primarily due to new general rates in Nevada and customer growth[16] - The utility achieved a return on equity (ROE) of 8.1% for the year, maintaining above 8% ROE for the second consecutive year[12] - The contribution to consolidated results from natural gas distribution was $261,176 for the twelve months ended December 31, 2024, compared to $242,226 in 2023, reflecting an increase of 8%[44] Revenue and Expenses - Total revenues decreased by $262 million, or 9%, year-over-year, primarily due to a $114 million reduction in offshore wind revenues, partially offset by a $50 million increase in emergency restoration services revenue[25] - Operating margin for the full year 2024 was $1,325.2 million, compared to $1,252.7 million in 2023, representing a year-over-year increase of 5.8%[39] - The company recorded a $202 million, or 8%, decrease in infrastructure services expenses compared to 2023, mainly due to reduced work under offshore wind projects[25] Operational Metrics - The company added approximately 41,000 new meter sets in 2024, reflecting a 1.8% growth rate[12] - Total system throughput for 2024 is 219,428,688 dekatherms, a decrease from 226,594,170 dekatherms in 2023[46] - Residential system throughput for 2024 is 77,066,236 dekatherms, down from 86,965,340 dekatherms in 2023[46] - Small commercial system throughput for 2024 is 33,289,392 dekatherms, a decrease from 35,091,975 dekatherms in 2023[46] - Large commercial system throughput for 2024 is 10,838,926 dekatherms, slightly down from 11,091,489 dekatherms in 2023[46] - Industrial/Other system throughput for 2024 is 5,535,745 dekatherms, down from 7,759,919 dekatherms in 2023[46] Future Outlook - The company expects 2025 net income guidance to be between $265 million and $275 million, with capital expenditures projected at approximately $880 million[20] - The utility segment filed three rate cases in 2024, including a $126 million general rate case in Arizona, with final decisions expected in 2025[15] - The company plans to update investors on its 81% ownership stake in Centuri, which may involve a sale or distribution of shares[27] Corporate Developments - Centuri Holdings, Inc. completed its IPO in April 2024, with net proceeds primarily used to repay a portion of Centuri's debt[11] - Centuri's utility infrastructure services segment reported a net loss of $13.1 million in 2024, compared to a net income of $19.7 million in 2023, reflecting a significant decline in performance[25] - The company reported a net loss of $12,863 for corporate and administrative expenses in Q4 2024, a slight improvement from a loss of $13,542 in Q4 2023[42] Market Metrics - Market value to book value per share at quarter end is 145%[46] - Twelve months to date return on equity for the total company is 5.8%[46] - Gas segment return on equity is 8.1%[46] - Common stock dividend yield at quarter end is 3.5%[46]

Delivers 8.1% Utility ROE and Earnings Growth of ~8.0% Year-over-YearO&M/Customer Flat Year-over-Year Reflecting Progress on Utility Cost OptimizationInitiated 2025 Utility Net Income and Capital Expenditures Guidance and Forward-Looking Utility Net Income CAGR and Rate Base CAGR GuidanceLAS VEGAS, Feb. 26, 2025 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas Holdings" or "Company") today reported fourth quarter 2024 consolidated net income of $92.5 million, or $1.28 per diluted sha ...

Dividend Announcement - Southwest Gas Holdings, Inc. has declared a second quarter cash dividend of $0.62 per share, payable on June 2, 2025, with a record date of May 15, 2025 [1] - The annualized dividend equates to $2.48 per share, and the company has consistently paid quarterly dividends since going public in 1956 [1] Company Overview - Southwest Gas Holdings, Inc. is based in Las Vegas, Nevada, and operates through its primary 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 in Arizona, Nevada, and California, emphasizing safe and reliable service while innovating sustainable energy solutions [3] - Additionally, Southwest Gas Holdings, Inc. is the majority owner of Centuri Holdings, Inc., which provides utility infrastructure services across North America [3]

Group 1 - The company, Southwest Gas Holdings, Inc., will host its fourth quarter and year-end earnings conference call on February 26, 2025, at 11:00 AM ET [1] - A news release will be issued before the markets open on the same day [1] - The conference call will be available via live webcast on the company's website [1] Group 2 - For those unable to participate in the live webcast, the call will be archived on the company's website [2] - A digital replay of the call can be accessed starting one hour after the call ends, with specific dialing instructions provided [2] - The digital replay will be available until 4:30 PM ET on March 5, 2025 [2]

Core Viewpoint - Southwest Gas Holdings Inc. (SWX) is implementing systematic investment plans and accretive acquisitions to enhance its performance, supported by consistent customer growth in its natural gas segment [1] Group 1: Investment Plans and Financials - The company plans a capital investment of $2.4 billion from 2024 to 2026, with $750 million invested in 2023, reflecting a 6% increase from 2022 [2] - The expected capital expenditure for 2024 is $830 million, aimed at supporting customer growth, system improvements, and pipe replacement programs [2] - New natural gas rates, rising demand from an expanding customer base, and efficient expense management are anticipated to boost net income [4] Group 2: Customer Base and Demand - SWX has a diversified and growing customer base across Arizona, Nevada, and California, having installed 41,000 first-time meter sets in the year ending September 30, 2024 [3] - The ongoing increase in the customer base is expected to drive demand and enhance company performance [3] Group 3: Performance Expectations - The company anticipates a rate base growth of 6.5-7.5% over the next three years, with plans to achieve flat operation and maintenance (O&M) expenses per customer during 2024-2026 [5] - Improvements in economic conditions and strong demographics are expected to further drive performance [5] Group 4: Risks and Dependencies - SWX's reliance on interstate pipelines for natural gas transportation poses risks; any interruption in service could impact its ability to meet customer demand [6] - The company does not own significant assets beyond its operating subsidiaries, making it dependent on these units for financial needs [7] Group 5: Stock Performance - Over the past year, SWX shares have increased by 24.7%, slightly outperforming the industry growth of 24.6% [8]

Financial Data and Key Metrics Changes - The company expects full-year utility net income to finish within the top half of the guidance range of $233 million to $243 million [9] - Consolidated adjusted EPS was $0.09 per share during Q3 2024, reflecting a decrease of $0.08 per share compared to Q3 2023 [33] - The utility operating margin increased by nearly $23 million compared to the same period last year, driven by increased rate relief and customer growth [39] Business Line Data and Key Metrics Changes - The utility experienced strong growth with approximately 41,000 new meter sets added during the last 12 months [16] - Centuri's consolidated results were lower for the quarter due to lower volumes of MSA and bid work, and operational issues led to higher costs [34][37] - The utility's O&M increased by $7 million primarily related to leak survey and line locating activities, but the company aims to keep O&M costs flat on a per-customer basis through 2026 [40] Market Data and Key Metrics Changes - Economic activity and demand for natural gas service remain strong, particularly driven by projects like the TSMC Semiconductor Manufacturing Facility in North Phoenix [26] - The surrounding area of the TSMC project is forecasted to see a 95% increase in population over the next 25 years, which would significantly increase the customer base for Southwest Gas [27] - The company is fielding inquiries for large-scale data center developments in Arizona and Nevada, indicating strong potential for future growth [29] Company Strategy and Development Direction - The company is focused on becoming a premier fully regulated natural gas utility and is progressing with the separation of Centuri [6][12] - The strategic priorities include optimizing utility operations and maintaining a strong investment-grade balance sheet while executing on regulatory strategies [55] - The company reaffirms its expected rate base compound annual growth rate of 6.5% to 7.5% from 2024 to 2026 [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong regional economic outlook and positive regulatory outcomes [50] - The company is optimistic about achieving a flat O&M per customer trend and expects net income growth to be nonlinear due to regulatory cycles [52] - Management highlighted the importance of ongoing regulatory discussions and the potential for constructive outcomes in rate cases [22][23] Other Important Information - The company finished Q3 2024 with over $450 million in cash and nearly $1 billion in liquidity, indicating strong financial health [15][33] - The company does not expect to issue equity this year due to strong cash balances and ongoing collections [63] - The company is committed to maintaining a competitive dividend while evaluating Centuri's separation options [53] Q&A Session Summary Question: Timing of future separation update for Centuri - Management stated there is no specific timeframe for the separation, but the appointment of a new CEO at Centuri is a positive step forward [57] Question: Settlement backdrop in Arizona rate case - Management indicated that the staff is supportive of the proposed system improvement mechanism, and discussions have been constructive [58][60] Question: Changes in financing plan - The change in the financing plan is primarily due to the collection of the PGA and strong cash balances, leading to no need for equity issuance this year [63][64] Question: Impact of recent elections on regulatory environment - Management does not anticipate any significant impact on the procedural schedule or settlement opportunities due to the recent elections [66][67]

Earnings Conference Call Third Quarter 2024 Results November 6, 2024 Safe Harbor Statement Forward-Looking Statements Unless context otherwise requires, in this presentation, references to "we", "us" and "our" are to Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas" or the "Company" or "SWX") together with its current and former consolidated subsidiaries, which include, among others, Southwest Gas Corporation ("Southwest", "SWG", "Utility" or "Natural Gas Distribution" segment), MountainWest Pipelin ...

Core Insights - Southwest Gas Holdings Inc. (SWX) reported third-quarter 2024 operating earnings of 9 cents per share, exceeding the Zacks Consensus Estimate of 7 cents by 28.6%, but down 47.1% from 17 cents in the same quarter last year [1] - Total operating revenues were $1.08 billion, missing the Zacks Consensus Estimate of $1.13 billion by 4.8%, and decreased 7.7% from $1.17 billion in the prior-year quarter [2] Financial Performance - Utility infrastructure service expenses were $644.9 million, a decrease of 5.9% from $685.7 million in the year-ago quarter [3] - Total operating income was $41.9 million, down from $52.9 million in the year-ago quarter [3] - Cash and cash equivalents as of September 30, 2024, were $456.6 million, significantly up from $106.5 million as of December 31, 2023 [4] - Long-term debt, less current maturities, was $4.38 billion as of September 30, 2024, down from $4.61 billion as of December 31, 2023 [4] - Net cash provided by operating activities in the first nine months of 2024 was $1.15 billion, compared to $0.2 billion in the year-ago period [4] Future Outlook - Southwest Gas anticipates net income for the Natural Gas Distribution segment in 2024 to be between $233 million and $243 million [5] - Capital expenditure is expected to be $830 million for 2024, aimed at supporting customer growth, system improvements, and pipe replacement programs [5] - Projected capital expenditure for 2024-2026 is $2.4 billion, with a utility rate base expected to grow at a CAGR of 6.5-7.5% [5] Market Position - Southwest Gas currently holds a Zacks Rank 3 (Hold) [6]

Company Performance - Southwest Gas reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, but down from $0.10 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $1.08 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 4.82%, compared to $1.17 billion in revenues a year ago [2] - Over the last four quarters, Southwest Gas has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Market Comparison - Southwest Gas shares have increased by approximately 16.2% since the beginning of the year, while the S&P 500 has gained 21.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $1.38 billion, and for the current fiscal year, it is $3.13 on revenues of $5.28 billion [7] - The Zacks Rank for Southwest Gas is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Utility - Gas Distribution industry is currently in the top 37% of over 250 Zacks industries, suggesting that companies in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

Customer Base and Operations - As of September 30, 2024, Southwest had 2,248,000 natural gas customers, with 1,205,000 in Arizona, 837,000 in Nevada, and 206,000 in California[75]. - There were approximately 41,000 first-time meter sets over the past 12 months, comparable to the previous year[78]. Financial Performance - The operating margin for the twelve months ended September 30, 2024, was $1.3 billion, with 53% earned in Arizona, 35% in Nevada, and 12% in California[75]. - Utility infrastructure services revenues for Q3 2024 were $720 million, reflecting a decrease of $54.8 million, or 7%, compared to Q3 2023[79]. - Operating income for utility infrastructure services in Q3 2024 was $41.9 million, a decrease of $11 million compared to Q3 2023[79]. - Regulated operations revenues for Q3 2024 were $359,131,000, a decrease of 9% from $394,603,000 in Q3 2023[80]. - For the first nine months of 2024, regulated operations revenues were $1,922,157,000, up from $1,797,348,000 in the same period of 2023[82]. - Operating margin for the nine-month period increased by $43 million, reaching $937,969,000, with significant contributions from customer growth and rate relief[82]. - Net income (loss) for the first nine months of 2024 was $(17.1) million, compared to $28.8 million in the same period of 2023, indicating a substantial decline in profitability[85]. Expenses and Costs - Operations and maintenance expense rose by $7.5 million, or 6%, totaling $129,736,000, primarily due to increased labor-related costs and higher insurance expenses[80]. - Net interest deductions increased by approximately $6.5 million, totaling $42,312,000, due to regulatory treatment associated with industrial development revenue bonds[81]. - Utility infrastructure services expenses decreased by $40.8 million, or 6%, driven by lower volumes of infrastructure services provided[84]. - Depreciation and amortization expense for the nine-month period increased by approximately $1.9 million, or 1%, due to a $710 million increase in average gas plant in service[82]. - Depreciation and amortization expense decreased by $9.1 million between the current and prior-year nine-month periods, attributed to fully depreciated small tools and more efficient asset utilization[85]. Cash Flow and Investments - The company finished Q3 2024 with over $450 million in cash and does not expect to issue equity in 2024[79]. - Cash flows from consolidated operating activities increased by $956 million in the first nine months of 2024 compared to the same period in 2023, primarily due to the collection of previously deferred purchased gas costs[97]. - Construction expenditures for the natural gas distribution segment were $644 million during the nine-month period ended September 30, 2024, with approximately 55% allocated to replacing existing pipeline facilities[99]. - Management estimates that natural gas segment construction expenditures will total approximately $2.4 billion over the three years ending December 31, 2026, with about $830 million expected in 2024[99]. Regulatory and Rate Cases - Southwest filed a 2024 Arizona rate case application proposing a revenue increase of approximately $126 million to reflect significant capital investments and align rates with current operations[87]. - In Nevada, Southwest's general rate case resulted in an approved annual revenue increase of $59 million, effective April 2024, with a return on common equity of 9.5%[89]. - Southwest proposed a statewide revenue increase of approximately $49 million in its California general rate case filed in September 2024, with a requested return on common equity of 11.35%[90]. - Great Basin Gas Transmission Company requested an overall annual revenue increase of approximately $16 million in its general rate case, with rates effective September 2024, subject to refund[92]. Debt and Financing - The company extended its $550 million term loan credit agreement, now maturing on July 31, 2025, with a 17.5 basis point reduction in the applicable spread[79]. - The company has a credit facility with a borrowing capacity of $300 million that expires in December 2026, with $113 million outstanding as of September 30, 2024[101]. - Centuri completed an IPO in April 2024, raising approximately $328 million, which was primarily used to repay outstanding amounts under its credit facilities[102]. Future Outlook and Risks - The company plans to continue requesting regulatory support for projects aimed at improving system flexibility and reliability, with significant replacement activities expected to continue beyond the next few years[99]. - Future operating cash flows and results of operations are forecasted to be influenced by regulatory rate proceedings and recovery of costs from gas infrastructure replacement programs[104]. - The company faces risks related to customer growth rates, housing market conditions, and inflation, which could materially affect financial results[105]. - Management's ability to finance and assimilate acquired businesses is crucial for future growth and operational efficiency[105].