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].

Core Viewpoint - Southwest Gas Holdings, Inc. reported strong utility earnings with a 9% year-to-date earnings growth year-over-year, driven by regulatory priorities and disciplined business management efforts [2][4]. Financial Performance - The company reported third quarter 2024 consolidated net income of $0.3 million, or less than one cent per diluted share, compared to $3.2 million, or $0.04 per diluted share, in the third quarter of 2023 [1]. - Adjusted consolidated net income for the third quarter of 2024 was $6.8 million, or $0.09 per diluted share, down from $12.6 million, or $0.17 per diluted share, in the same period last year [1][25]. - The natural gas distribution segment recorded a net income of $0.6 million in Q3 2024, a significant improvement from a net loss of $3.3 million in Q3 2023 [10][12]. Operational Highlights - The utility achieved a twelve-month utility gross margin of $0.7 billion and a record utility operating margin of $1.3 billion [8]. - Approximately 41,000 new meter sets were added to the customer count over the last 12 months, representing a 1.9% increase [8]. - The company made a capital investment of $644 million year-to-date to enhance safety and reliability of the distribution infrastructure [8]. Regulatory Developments - Southwest Gas filed a rate case in California and is advancing its Arizona general rate case, reflecting significant investments made on behalf of customers [3][4]. - The company continues to see positive impacts from the recovery of investments in Nevada, enhancing safety and reliability for its growing customer base [3]. Segment Performance - The utility infrastructure services segment recorded a net income of $10 million and adjusted net income of $16 million in Q3 2024, compared to $18 million and $23.4 million in Q3 2023, respectively [15]. - Year-to-date 2024, the utility infrastructure services segment reported a net loss of $21.2 million, a decline from a net income of $24.9 million in the same period of 2023 [17]. Future Outlook - The company expects 2024 utility net income to finish within the top half of its guidance range of $233 million to $243 million [14]. - Capital expenditures for 2024 are projected to be approximately $830 million, supporting customer growth and system improvements [14].

Company to Host Earnings Conference Call on November 6, 2024LAS VEGAS, Oct. 23, 2024 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas" or the "Company") will hold its third quarter earnings conference call and webcast on November 6, 2024, at 11:00 AM ET, following its news release to be issued before the markets open that day.The conference call will be webcast live on the Company's website at www.swgasholdings.com.Date: Wednesday, November 6, 2024 Time: 11:00 AM ET Telephone number: ...

A month has gone by since the last earnings report for Southwest Gas (SWX) . Shares have added about 0.6% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Southwest Gas due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Southwest Gas Q2 Earnings Lag Estimates, Revenu ...

Southwest Gas Holdings, Inc. (SWX) is a regulated utility company that provides natural gas services and operates a pipeline transmission system. Its strategic investments and diverse and growing customer base will further boost its performance. However, this Zacks Rank #3 (Hold) company faces risks related to the high dependence on interstate pipelines' transportation capacity. SWX's Tailwinds Southwest Gas plans to invest $2.4 billion during the 2024-2026 period to meet the growing demand for safe, reliab ...

Core Viewpoint - Southwest Gas Holdings Inc. (SWX) reported disappointing second-quarter 2024 results, with significant declines in both operating earnings and total revenues compared to the previous year and consensus estimates [1][2]. Financial Performance - Operating earnings for Q2 2024 were 31 cents per share, missing the Zacks Consensus Estimate of 43 cents by 27.9% and down 34% from 47 cents in the same quarter last year [1]. - Total operating revenues were $1.18 billion, falling short of the Zacks Consensus Estimate of $1.23 billion by 3.9% and decreasing 8.7% from $1.29 billion in the prior-year quarter [2]. Expense and Income Analysis - Utility infrastructure service expenses totaled $604.5 million, down 15.5% from $715.7 million in the year-ago quarter [3]. - Total operating income was $33.1 million, compared to $53.2 million in the same quarter last year [3]. Operational Metrics - Total system throughput for the first six months of 2024 was 123.53 million dekatherms, an 8.3% decrease from 134.77 million dekatherms in the first half of 2023 [3]. Capital and Debt Position - As of June 30, 2024, cash and cash equivalents were $599.6 million, a significant increase from $106.5 million as of December 31, 2023 [5]. - Long-term debt, less current maturities, rose to $5.06 billion as of June 30, 2024, compared to $4.61 billion at the end of 2023 [5]. Future Guidance - The company anticipates net income for the Natural Gas Distribution segment in 2024 to be between $233 million and $243 million, with capital expenditures expected to be $830 million for customer growth and system improvements [6]. - For the period of 2024-2026, capital expenditure is projected to be $2.4 billion, with a utility rate base CAGR of 6.5-7.5% [6]. Market Position - Southwest Gas currently holds a Zacks Rank of 5 (Strong Sell), indicating a negative outlook in the market [7].

Southwest Gas (SWX) came out with quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -27.91%. A quarter ago, it was expected that this natural gas company would post earnings of $1.70 per share when it actually produced earnings of $1.37, delivering a surprise of -19.41%. Over the last four quarters, ...

Delivers Second Quarter Utility Earnings Growth of 44.5% Margin Improvement From Nevada Rate Case Outcome Centuri IPO Successfully Executed; Net Proceeds Used to Reduce Centuri Debt LAS VEGAS, Aug. 6, 2024 /PRNewswire/ -- Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas" or "Company") today reported second quarter 2024 consolidated net income of $18.3 million, or $0.25 per diluted share, and adjusted consolidated net income of $22.5 million, or $0.31 per diluted share. These results compared to cons ...

Southwest Gas (SWX) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 6, 2024, might help the stock move higher if these key numbers are better than expe ...

Date: Tuesday, August 6, 2024 Time: 11:00 AM ET Telephone number: (800) 836-8184 International telephone number:(646) 357-8785 If you are unable to participate during the live webcast, the call will also be archived on the Company's website at www.swgasholdings.com. Alternatively, a digital replay of the call can be accessed by dialing (888) 660-6345 or internationally at (646) 517-4150, beginning one hour after the end of the earnings call. Replay code is 44112#. The digital replay of the call will be avai ...