Southwest Gas : SWX AGA Investor Outreach Presentation
SWX
Published on 05/14/2025 at 17:53
INVESTOR OUTREACH
Table of Contents
SWX at a Glance …………………………………………………………………………………….. pg. 04 Positioned for Sustainable Growth and Long-Term Success …………………………………… pg. 05 Why SWX? Compelling Investment Thesis …………………….…………………………………. pg. 06 Focused on Advancing Strategic Priorities ………………………………………………………... pg. 07 Delivering Strong Results …………………………………………………………………………… pg. 08 Track Record of Prudent Capital Expenditures ………………………………………….............. pg. 09 Multipronged Approach to Utility ROE Improvement ……………………………….................... pg. 10 Utility 2025 and Forward-Looking Financial Guidance ……….……………............................... pg. 11
3
Utility Earnings Guidance Drivers .…………………………………………….............................. pg. 12 Growth and Economic Expansion ………………………………………………………………….. pg. 13 AZ and NV Economic Snapshot ……………………………………………………………………. pg. 14 Economic Impact of Semiconductor Manufacturing & Data Centers …………………………... pg. 15 Large Volume Customer Updates ………………………………………………………………….. pg. 16 Regional Housing Development ……………………………………………………………………. pg. 17 Total System Rate Base Growth Forecast ……………………………………………….............. pg. 18 Current Rate Case Activity ………………………………………………………………………….. pg. 19 Regulatory Update - Arizona ……………………………………………………………………….. pg. 20 Regulatory Update - Arizona SIM …………………………………………………………………… pg. 21 Regulatory Update - California ……………………………………………................................... pg. 22 Regulatory Update - GBGTC ………………………………………………………………………. pg. 23 Regulatory Update - Nevada ………………………………………………………………………. pg. 24 2025 Financing Plan …..……………………………………………………………………............. pg. 25 Summary of Gas Cost Balances and Recovery Mechanisms .…………………………............ pg. 26 Balance Sheet Strength …………………………………………………………………................. pg. 27
Utility Optimization Progress ………………………………………………………………………... pg. 28 Cost Management (O&M) ………………………………………………………………….............. pg. 29 Common Stock Dividend Information …………………………………….................................... pg. 30 Positioned to Unlock Significant Stockholder Value ……………………………………………... pg. 31 Southwest Gas Holdings and Corporation History …...………………………………………….. pg. 33 Regulatory Framework ………………………………………………………………………………. pg. 34 Regulatory Jurisdictions …………………………………………………………………………….. pg. 35 Regulatory Commissioners …………………………………………………………………………. pg. 36 Select Recent Regulatory Activity ………………………………………………………………….. pg. 37 Affordability …………………………………………………………………………………………… pg. 38 Operating Cash Flows & Liquidity ………………………………………………………………….. pg. 39 Strengthening Credit Metrics with Opportunities for Improvement ……………………………... pg. 40 Debt Maturity Profile of SWX and SWG …………………………………………………………… pg. 41 Best-In-Class Governance ………………………………………………………………………….. pg. 42 Safety and Damages Performance ………………………………………………………………… pg. 43 System Reliability and Integrity …………………………………………………………………….. pg. 44 Customer Satisfaction ………………………………………………………………………………. pg. 45 Environmental Information ………………………………………………………………………..... pg. 46 Community Giving …………………………………………………………………………………… pg. 47 Workforce Highlights ….………………………………………………………………………….. pg. 48 Non-GAAP Measures ……………………………………………………………………………….. pg. 49
3
SWX at a Glance
Southwest Gas Corporation Financial Snapshot1:
2024 Revenue: $2.5 billion 2024 Net income: $261 million
2024 Estimated Rate Base: $6.4 billion2
Total Customers Served1
California:
207,000 customers -9%
Nevada:
841,000 customers -37%
Arizona:
1,210,000 customers - 54%
Southwest Gas Service Territory LNG Facility
Great Basin Gas Transmission Company Southwest Gas Transmission Company Southwest Gas Headquarters
Corporate Overview:
Southwest Gas Holdings, Inc. (NYSE:SWX), through its primary operating subsidiary, Southwest Gas Corporation, engages in the purchasing, distributing and transporting of natural gas for its customers. Southwest Gas Corporation is a dynamic energy company committed to exceeding the expectations of over 2 million customers in Arizona, Nevada and California by providing safe, reliable, and resilient service while pursuing innovative sustainable energy solutions to fuel the growth in its communities. In addition, Southwest Gas Holdings, Inc. is the majority owner of Centuri Holdings, Inc. (NYSE:CTRI), which provides comprehensive utility infrastructure services across North America.
Positioned to Unlock Significant Shareholder Value
» Strengthening capital and strategic flexibility through separation of Centuri
» Maintain balance sheet flexibility and investment grade credit ratings
» Providing safe, reliable, and affordable natural gas service
» Positive regulatory developments and strong organic rate base growth
» 41,000 first-time meter sets over the last twelve months1, or ~1.8% increase3
» Optimizing the utility to deliver value
» Capital expenditure plan supported by strong economic and customer growth throughout our service areas
» Well positioned to continue delivering sustainable energy options for our customers
Notes:
As of December 31, 2024
4
4
Rate base amounts reflect estimated total investment in facilities to provide utility service, less estimated retirements, depreciation, and deferred taxes plus working capital as of 12/31/2024. This is different than our authorized rate base, which is the rate base approved by our regulatory bodies in our most recent rate cases and that is reflected in current rates
Calculated based on new meter sets added since 2023 final year end customer count
Positioned for Sustainable Growth and Long-Term Success
Diversified, Fully-Regulated Business
Strategic Investments in Long-Term
Optimizing Business Profile
Attractive Rate Base Growth1
Mix
Attractive Rate Base and Net Income
Safety and Reliability of Pipeline System
» Disciplined cost management
» Efficient capital deployment
» Pursuing constructive regulatory
($ in billions)
$4.5
$5.0 $5.4 $5.8
$6.4 $6.9
Growth High Customer Satisfaction
outcomes
2020A 2021A 2022A 2023A 2024A 2025E 2
Favorable Demand Dynamics in Diversified Geographic Footprint
Well-Positioned to Continue Delivering Sustainable Energy Solutions
Positive Rate Case Outcomes and Constructive Regulatory Relationships
Multiple Paths for Value Creation
Limited Near-term Equity Needs
equity needs expected in 20253
Strong & Improved Balance Sheet Position
SWG FFO/
Debt
Notes: See "Non-GAAP Measures" for more information and for full reconciliations of our non-GAAP financial measures. S&P metrics reflect the Companies' estimates of how S&P calculates FFO and adjusted Debt
Rate base amounts reflect estimated total investment in facilities to provide utility service, less estimated retirements, depreciation, and deferred taxes plus working capital as of 12/31 of each year depicted. This is different than our authorized rate base, which is the rate base approved by our regulatory bodies in our most recent rate cases and that is reflected in current rates
2025E rate base assumes CapEx at 2025 guidance (~$880 million). Rate base eligible assets estimated as of the end of each period presented
Expected equity needs via ATM could be obviated by CTRI separation transaction
5
5
Disclaimer
Southwest Gas Holdings Inc. published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 21:52 UTC.