Core Viewpoint - Southwest Gas Holdings, Inc. is initiating a secondary public offering of 9,000,000 shares of Centuri Holdings, Inc. common stock, with an option for underwriters to purchase an additional 1,350,000 shares [1][2] Group 1: Offering Details - The offering includes 9,000,000 existing shares of Centuri's common stock, with a potential additional purchase option for underwriters [1] - Icahn Partners and Icahn Partners Master Fund LP will concurrently purchase $50 million in shares from Southwest Gas Holdings at the offering price [2] - The shares are being offered under an effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be available [3] Group 2: Company Background - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, providing natural gas services to over 2 million customers in Arizona, Nevada, and California [5] - Centuri Holdings, Inc. is a utility infrastructure services company that collaborates with regulated utilities to maintain energy networks across the U.S. and Canada [6]

Core Insights - Southwest Gas Holdings reported a net income of $113.9 million for Q1 2025, an increase of $26.2 million compared to Q1 2024, driven by higher operating margins and improved performance at Centuri [4][7][20] - The company achieved a utility return on equity (ROE) of 8.2% over the last twelve months, with a 5.2% earnings growth in Q1 2025 [6][24] - An annual revenue increase of approximately $80.2 million was approved in Arizona, which included an increase in the allowed return on equity to 9.84% [6][25] Financial Performance - Net income for Q1 2025 was $113.9 million, compared to $87.7 million in Q1 2024, reflecting a significant improvement [4][20] - Adjusted net income for Q1 2025 was $119.4 million, up from $98.5 million in the same period last year, marking a 21% increase [7][22] - Diluted earnings per share rose to $1.58 in Q1 2025 from $1.22 in Q1 2024 [4][22] Operational Highlights - The utility added approximately 40,000 new meter sets, resulting in a 1.8% customer growth rate over the past twelve months [6][12] - The operating margin increased by $38.9 million, with combined rate relief in Nevada, California, and Arizona contributing approximately $27 million [12][20] - Operations and maintenance expenses decreased by $1.5 million, primarily due to reduced external contractor costs [12][20] Strategic Developments - The company is committed to fully separating Centuri and is evaluating market conditions for optimal timing and value [3][11] - A constructive outcome on the revenue phase of the Arizona general rate case has bolstered the company's regulatory strategy [2][6] - The company anticipates a final decision on the proposed system integrity mechanism settlement in the third quarter of 2025 [2][11] Guidance and Outlook - The company reaffirmed its 2025 net income guidance of $265 million to $275 million and projected capital expenditures of approximately $880 million [10] - The expected compound annual growth rate (CAGR) for adjusted net income from 2025 to 2029 is estimated to be between 6.0% and 8.0% [10] - The authorized rate base across various jurisdictions totals approximately $5.81 billion, with an average authorized return on common equity of 9.89% [25][26]

Core Viewpoint - Southwest Gas Holdings, Inc. has rescheduled its financial results release and conference call for the first quarter of fiscal year 2025 to May 12, 2025, from the previously scheduled date of May 7, 2025 [1]. Financial Guidance and Outlook - The company affirms its full year 2025 net income guidance to be between $265 million and $275 million [4]. - Capital expenditures for 2025 are estimated to be approximately $880 million, aimed at customer growth, system improvements, and pipe replacement programs [4]. - The compound annual growth rate (CAGR) for adjusted net income from 2025 to 2029 is projected to be between 6.0% and 8.0% [4]. - Total capital expenditures from 2025 to 2029 are expected to reach $4.3 billion [4]. - The rate base CAGR for the same period (2025-2029) is also projected to be between 6.0% and 8.0% [4]. Company Overview - Southwest Gas Holdings, Inc. operates through its subsidiary, Southwest Gas Corporation, which is involved in the purchasing, distributing, and transporting of natural gas [6]. - The company serves over 2 million customers across Arizona, Nevada, and California, focusing on safe and reliable service while promoting sustainable energy solutions [6]. - Southwest Gas Holdings is the majority owner of Centuri Holdings, Inc., which provides utility infrastructure services across North America [6][5].