Southwest Gas Holdings, Inc. · NYSE:SWX
Southwest Gas — Q2 2025 Earnings Presentation
37 slides from Southwest Gas's earnings presentation, Aug 6, 2025
Slide 1: Earnings Conference Call Second Quarter 2025 Results
Earnings Conference Call Second Quarter 2025 Results August 6, 2025
Slide 2: Safe Harbor Statement
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 Holdings” or the “Company” or “SWX”) together with its current and former consolidated subsidia
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP measures include (i) Southwest Gas Holdings adjusted earnings (loss) per share, (ii) Southwest Gas Holdings a
Slide 4: Speakers and Agenda
SPEAKERS Speakers and Agenda KAREN HALLER ROB STEFANI JUSTIN BROWN PRESIDENT AND CEO CFO PRESIDENT SOUTHWEST GAS HOLDINGS SOUTHWEST GAS HOLDINGS SOUTHWEST GAS CORPORATION PRESENTATION AGENDA Strategic and Business Update Regulatory and Economic Update Financial Update Guidance and Outlook
Slide 5: SWX: Becoming a Premier, Fully Regulated Natural Gas Business
SWX: Becoming a Premier, Fully Regulated Natural Gas Business Positioned for Continued Growth and Success » Safely delivering reliable, sustainable and affordable energy solutions to growing, high-demand service territories Centuri Secondary Offering Results » Clear strategic focus on optimizing uti
Slide 6: Advancing SWX's 2025 Strategic Priorities
Advancing SWX’s 2025 Strategic Priorities 2025 Utility and Regulatory Strategy AZ Rate Case Approval Complete ✓ 1Q 2025 GBGTC Rate Case Approval Complete ✓ 1Q 2025 NV Senate Bill 417 (“SB 417”) Alternative Ratemaking Approval Complete ✓ 2Q 2025 AZ SIM1 Capital Tracker Approval Complete ✓ 3Q 2025 CA
Slide 7: Delivering Strong Results
Delivering Strong Results Q2 Net income of ~$34 million, an improvement of 22.0% vs. Q2 2024 and YTD ~$177 million, an improvement of 8.1% vs. YTD 2024 Approximately 40,000 new meter sets added during the last 12 months, leading to a 1.8% customer growth rate over the same period No equity needs thr
Slide 8: Regulatory and Economic Update
Regulatory and Economic Update
Slide 9: Potential Great Basin Expansion Opportunity
Potential Great Basin Expansion Opportunity About Great Basin Great Basin Gas Transmission Company1 is a FERC2 regulated natural gas transmission pipeline company and is a wholly owned subsidiary of Southwest Gas In 1963, Southwest Gas constructed the transmission pipeline from the Idaho-Nevada bord
Slide 10: Current Rate Case Activity
Current Rate Case Activity SWG remains committed to a purposeful regulatory strategy intended to minimize regulatory lag Nevada Arizona California Requested Requested Requested Requested Docket # 23-09012 Docket # G-01551A-23-0341 Docket # RP24-514-000 Docket # A2409001 Filing Date Sept. 11, 2023 Fi
Slide 11: Regulatory Updates – Nevada
Regulatory Updates – Nevada SB 417 – Alternative Ratemaking “Alternative ratemaking is a proven approach that can help streamline regulatory processes and deliver savings to customers. This is about modernizing utility regulation in a way that puts Nevadans first. With Nevada representing 35% of our
Slide 12: Regulatory Update - California
Regulatory Update - California Rate Case Activity California Rate Case Filing Summary In September 2024, SWG filed a rate case1 requesting a revenue increase of ~$50 million, updated to ~$44 million as of February 2025 with rates anticipated to become effective January 2026. Southwest Gas Public Adv
Slide 13: Strong Demand Dynamics Supporting Value Creation
Strong Demand Dynamics Supporting Value Creation Strong Economic Growth Projected Across Service Areas • From 2025 to 2030, projected population growth of 4.40% in Arizona and $4.3B 6.0 – 8.0% 3.42% in Nevada, compared to the 2.40% average growth in the US1 Capital Investment Rate Base Growth4 • Con
Slide 14: Financial Update
Financial Update
Slide 15: 2Q 2025 SWX Adjusted Diluted Earnings Per Share Walk
2Q 2025 SWX Adjusted Diluted Financial Highlights Earnings Per Share Walk • SWG received higher margin from rate relief and customer growth combined with higher other income from COLI policies; partially offset by higher O&M, higher interest expense, and higher Adjusted Earnings Per Share1 Depreciat
Slide 16: 2Q 2025 SWG GAAP Net Income
Year-over-year net income (loss) key drivers include: 2Q 2025 SWG GAAP Net Income (parentheses indicate unfavorable net income drivers) favorable impact unfavorable impact NATURAL GAS DISTRIBUTION SEGMENT Operating Margin • $23.7 million – Combined rate relief GAAP Net Income ($ in millions) • $2.5
Slide 17: Successful Follow-On Offerings of CTRI Common Stock
Successful Follow-On Offerings of CTRI Common Stock Follow-On Public Offerings Details 5/22/20251 6/18/20252 Shares Sold 13.2 million 12.3 million % owned by SWX Sold 14.9% 14.0% Offering price / share $17.50 $20.75 Proceeds, Net $225 million $246 million Use of Proceeds Repay SWX Debt Repay SWX Deb
Slide 18: 2025 Financing Plan
2025 Financing Plan » Amended/extended the remaining balance of the Southwest Gas Holdings $225 million Term Loan facility3 as well as its existing $300 million revolving credit facility4 in 2025. Amounts and financing assumptions reflected assumes Centuri remains Sources & Uses Sources & Uses conso
Slide 19: Balance Sheet Strength
Balance Sheet Strength SWX and SWG are committed to maintaining an investment grade profile Net Debt1 ($ in billions) Credit Ratings and Outlook3 Total PGA2 Net Debt Moody’s Standard and Poor’s Fitch Cash Net Debt less Debt Balance PGA Ratings Outlook Ratings Outlook Ratings Outlook $0.3 $0.0 $0.3 n
Slide 20: SWX Continues to Improve the Balance Sheet
SWX Continues to Improve the Balance Sheet LTM 2022 2023 2024 ($ in millions) 2025 S&P Calculated FFO $686.6 $656.6 $656.9 $735.0 S&P Adjusted Debt $6,161.6 $5,453.1 $4,908.3 $4,572.4 1 15.0% 16.1% S&P FFO / Debt 13.4% 12.0% 11.1% 2022 2023 2024 LTM 2025 Actual S&P Downgrade Threshold Potential proc
Slide 21: Guidance and Outlook
Guidance and Outlook SOUTHWEST GAS
Slide 22: SWG 2025 and Forward-Looking Financial Guidance
SWG 2025 and Forward-Looking Financial Guidance 2025 Guidance Reaffirmed Net Income1 $265 - $275 million CapEx ~$880 million Forward-Looking Guidance4 2025 – 2029 base year 2025 Reaffirmed Net Income2 (CAGR) 6.0% - 8.0% Rate Base2 (CAGR) 6.0% - 8.0% CapEx3 $4.3 billion Notes: 1 Assumes $3 - $5 milli
Slide 23: Positioned to Unlock Significant Stockholder Value
Positioned to Unlock Significant Stockholder Value Positive regulatory developments and strong organic rate base growth Strengthening strategic flexibility through the separation of Centuri Optimizing the utility to deliver value through financial discipline, operational excellence, and constructive
Slide 24: Contact Information
Contact Information Investors & Analysts Justin S. Forsberg Vice President of Investor Relations & Treasurer (702) 364-3135 justin.forsberg@swgas.com Media Sean Corbett Manager, Corporate Communications (702) 364-3310 corpcomms@swgas.com August 6, 2025 | 24
Slide 25: Appendix
Appendix
Slide 26: Maintaining a Competitive Dividend
Maintaining a Competitive Dividend Upon completion of the full separation of Centuri, Southwest Gas Holdings plans to target a dividend payout ratio in line with gas utility peers1 SWX Annual Dividend Per Share • Southwest Gas Holdings is committed to paying a competitive dividend $2.48 $2.48 $2.48
Slide 27: Utility Optimization Progress
Utility Optimization Progress SWG remains committed to its culture of continuous improvement and optimization and actively identifies opportunities to generate long-term benefits for all stakeholders and to support its goal of achieving flat O&M per customer over the current forecast period. Initiat
Slide 28: Summary of Gas Cost Balances and Recovery Mechanisms
Summary of Gas Cost Balances and Recovery Mechanisms PGA1 Receivable Balance and Recovery Mechanism Summary March 2025 June 2025 Gas Cost Rate Return of Nevada PGA Balance Receivable (Payable) Receivable (Payable) State Carrying Cost Rate Adjustment Balance Balance Frequency » Southwest Gas received
Slide 29: SWG Net Income Drivers and Assumptions
SWG Net Income Drivers and Assumptions Drivers 2025 2026 - 2029 Arizona rates Assumes rate case effective March filings and outcomes 2025 in line with historical Rate Relief GBGTC rates cadence and finalized March experience 2025 Customer Growth Anticipate customer growth of ~1.4% per year O&M
Slide 30: Regulatory Updates - Arizona
Regulatory Updates - Arizona Rate Case Activity Arizona Rate Case Outcome On March 27, 2025, the ACC approved an increase in rates effective on approval. Southwest Gas and Staff Stipulation1 ACC Final Decision Rate Case Highlights Target Equity Ratio 48.5% 48.5% » The $80.2M revenue increase represe
Slide 31: Regulatory Update - Nevada
Regulatory Update - Nevada Rate Case Activity Nevada Rate Case1 Outcome Summary Dollars in millions Proposed Revenue Increase2 $73.9 ~98% of request after Depreciation Expense ($6.8) depreciation adjustment and Authorized $59 million Cost of Service Adjustment ($1.6) before adjustments Stipulated Re
Slide 32: Regulatory Update – GBGTC
Regulatory Update – GBGTC Rate Case Activity GBGTC Rate Case Outcome1 On March 3, 2025, FERC approved an increase in rates. Requested Approved Target Equity Ratio 56% 50% Return on Equity 13.05% 11.95%3 Pre-Tax Rate of 11.18% 9.76%4 Return Rate Base $206 million (~$99 million increase) $191 million
Slide 33: SWG Regulatory Update
Arizona Customer-Owned Yard Line (COYL) Application Southwest Gas filed an application with the ACC in June 2025, to adjust the COYL surcharge to recover approximately $5.2 million for COYL program work completed SWG Regulatory Update through March 2025.2 The Company proposed to recover this amount
Slide 34: 2Q 2025 Financial Results
2Q 2025 Financial Results CONSOLIDATED Three Months Ended Six months ended Nine Months Ended Results of Consolidated Operations June 30, June 30, (in millions, except per share items) 2025 2024 2025 2024 Natural gas distribution income $ 33.7 $ 27.6 $ 176.6 $ 163.4 Utility infrastructure services in
Slide 35: Summary of Operating Results
Summary of Operating Results NATURAL GAS DISTRIBUTION SEGMENT Three Months Ended Six months ended Nine Months Ended Results of Natural Gas Distribution June 30, June 30, (in thousands of dollars) 2025 2024 2025 2024 Regulated operations revenues $ 396,318 $ 510,093 $ 1,142,734 $ 1,563,026 Net cost o
Slide 36: Non-GAAP Measures
Non-GAAP Measures ($ in thousands, except per share amounts) Three months ended Six months ended June 30, June 30, SWX Adjusted Net Income and Adjusted EPS 2025 2024 2025 2024 Adjusted SWX income and adjusted EPS for the three and six months ended SWX net income (loss) $ (12,883) $ 18,333 $ 100,987
Slide 37: Non-GAAP Measures
Non-GAAP Measures ($ in millions) Twelve months ended June 30, December 31, SWX S&P FFO Calculation 2025 2024 2023 2022 Revenue $ 4,766.2 $ 5,112.4 $ 5,434.0 $ 4,960.0 Cost of Goods Sold (3,145.4) (3,565.1) (3,870.7) (3,328.4) Operating Expenses (536.3) (536.2) (544.1) (636.8) General Taxes (91.8) (
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