Southwest Gas Holdings (SWX) Investor Presentation summary

Company overview and strategic direction

• 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 flexibility.

• Capital expenditure plan supported by strong economic and customer growth, targeting a 50/50 capital structure.

• High customer satisfaction and industry recognition, including #1 in J.D. Power rankings for five consecutive years.

Financial performance and guidance

• Achieved $261 million GAAP net income in 2024, exceeding guidance for the second consecutive year.

• 2025 net income guidance of $265–$275 million, with $880 million in planned capital expenditures.

• Targeting 6–8% CAGR for both net income and rate base from 2025–2029, with $4.3 billion in capital expenditures over five years.

• Maintains investment grade credit ratings and limited near-term refinancing needs.

• Ended 2024 with over $360 million in cash and no equity issuances during the year.

Regulatory and operational highlights

• Positive regulatory outcomes in Nevada, Arizona, and California, with recent and pending rate case approvals supporting revenue growth.

• Regulatory mechanisms include full revenue decoupling, capital trackers, and cost recovery programs across all jurisdictions.

• Ongoing optimization initiatives targeting flat O&M per customer and improved ROE through cost management and regulatory enhancements.

• Strong safety record, significant reduction in system leaks, and robust infrastructure investment in safety and integrity management.