Southwest Gas Holdings (SWX) Investor Presentation summary

Company overview and strategic positioning

• Serves over 2.25 million customers in Arizona, Nevada, and California, with 2024 revenue of $2.5 billion and net income of $261 million.

• Transitioning to a fully regulated natural gas utility, focusing on safety, reliability, and sustainable energy solutions.

• Majority owner of Centuri Holdings, with plans for full separation to enhance strategic and capital flexibility.

• Strong organic growth supported by favorable economic and population trends in service territories.

• Capital expenditure plan of ~$4.3 billion (2025–2029) to support rate base and customer growth.

Financial performance and guidance

• 2025 net income guidance reaffirmed at $265–$275 million, with CapEx of ~$880 million.

• Targeting 6–8% CAGR for both net income and rate base from 2025–2029.

• Finished 1Q 2025 with $386 million in cash and limited capital markets needs through year-end.

• Investment grade balance sheet with net debt of $0.7 billion at the holding company and $3.1 billion at the utility.

• S&P FFO/debt ratio improved to 17.1% in 2023, with further improvement expected post-Centuri separation.

Regulatory and operational highlights

• Recent Arizona rate case approval resulted in an $80.2 million revenue increase and 9.84% allowed ROE.

• Nevada and California also saw positive rate case outcomes, supporting ongoing rate base growth.

• System Integrity Mechanism (SIM) in Arizona to minimize regulatory lag and support safety investments.

• O&M per customer targeted to remain nearly flat through optimization initiatives.

• High customer satisfaction, ranked #1 in the West by J.D. Power for five consecutive years.