Southwest Gas (SWX) - 2024 Q4 - Annual Results

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]