LAS VEGAS, March 1, 2022 /PRNewswire/ -- Southwest Gas
Holdings, Inc. (NYSE: SWX) reported consolidated earnings of
$3.39 per diluted share and
adjusted consolidated earnings of $4.17 per diluted share for 2021, compared to
consolidated and adjusted consolidated earnings of $4.14 per diluted share for 2020.
Consolidated net income was $200.8
million and adjusted consolidated net income was
$246.8 million for 2021, compared to
adjusted consolidated net income of $232.3 million for 2020.
- The natural gas distribution segment had net income of
$187.1 million and adjusted net
income of $190.9 million in 2021,
compared to net income and adjusted net income of $159.1 million in 2020.
- The utility infrastructure services segment had net income of
$40.4 million and adjusted net income
of $61.9 million in 2021, compared to
net income and adjusted net income of $74.9
million in 2020.
"Transformational investments in 2021 positioned us to deliver
sustained stockholder value and growth enterprise-wide," said
John P. Hester, President and Chief
Executive Officer. "Our natural gas distribution segment, Southwest
Gas, serving one of the fastest growing economic regions in
the United States, added over
37,000 customers in 2021. Our strong, collaborative relationships
with our state regulatory commissions contributed to near record
growth in revenues and rate base in 2021, and we continue to grow
Southwest Gas' customers, rate base, EBITDA and net income. Our
recent acquisition of MountainWest provides a complementary and
compelling suite of high-return assets, with unique strength and
stability, that are both commercially and geographically adjacent
to our regulated utility operations. We are confident that we can
continue to deliver significant value for stockholders and
reliable, affordable and clean energy across our service
territories."
"We have grown Centuri into a leading, high-growth utility
infrastructure services company that is uniquely positioned to
benefit from the surge in infrastructure spending throughout the
country," Mr. Hester continued. "Our recent acquisition of Riggs
Distler transforms Centuri by adding capabilities to support the 5G
datacom buildout, offshore wind and other renewable energy
transition programs. In October 2021,
Riggs Distler was selected to work on a large-scale offshore wind
energy project, the largest in New
York to date, growing its portfolio of work in emerging
clean energy technologies."
"Across all of our businesses, we are actively working to
support the energy transition. In addition to the many
opportunities at Centuri, Southwest Gas is advancing its
sustainability initiatives and ongoing low-carbon projects, while
MountainWest has numerous attractive opportunities with renewable
natural gas, responsibly sourced natural gas, hydrogen and CO2
transportation," said Mr. Hester.
During the fourth quarter of 2021, consolidated net income was
$69.9 million, or $1.15 per diluted share, and adjusted
consolidated net income was $98 million, or $1.61 per diluted share, compared to $103.5 million, or $1.82 per diluted share, for the fourth
quarter of 2020. Quarterly results for 2021 included a $3 million, or $0.05 per share, increase in income from COLI
investments, while the prior-year quarter included COLI-related
income of $8.2 million, or
$0.14 per share.
Natural Gas Distribution Segment Results
Full Year 2021
Southwest Gas increased its operating margin $83 million year-over-year, including
$13 million from continued customer
growth, as 37,000 first-time meter sets were added in 2021, and
$61 million of incremental operating
margin from combined rate relief in 2021. Regulatory account
recoveries benefitted operating margin in both periods, in addition
to margin from customers outside of decoupling mechanisms.
Southwest Gas also benefitted from increased collection of
late fees due to the lifting of the pandemic-period moratorium on
these fees.
Operations and maintenance expense increased $32 million, or 8%, year-over-year primarily due
to higher legal-claim related costs including a $5 million legal reserve, higher levels of
service-related pension costs ($6.9
million), collective increases in customer service-related
and information technology costs, including staffing, training, and
stabilization costs associated with a new customer information
system implemented in May 2021
($8.7 million) to improve the
customer experience, expenditures for pipeline damage prevention
programs ($5.5 million) to
support our growing infrastructure and customer base, and higher
reserves for customer accounts deemed uncollectible.
Depreciation and amortization expense increased $18 million, or 8%, year-over-year primarily
due to a $559 million, or 7%, increase in average gas
plant in service in 2021. The increase in gas plant was
attributable to pipeline capacity reinforcement work, franchise
requirements, scheduled pipe replacement activities, and new
infrastructure, as well as a new customer information system noted
above. Amortization related to regulatory account recoveries
increased $3.5 million year-over-year, which is offset by an
increase in operating margin noted above. Taxes other than
income taxes increased $16.9 million,
or 27%, year-over-year primarily due to an increase in property
taxes in Arizona, and to a lesser
extent, in Southwest Gas' California and Nevada jurisdictions.
Other income increased $2 million year-over-year.
Non-service-related components of employee pension and
postretirement benefit cost in this category decreased
$6 million year-over-year. The current year also includes a
$1.1 million increase in interest
income compared to the prior year. Offsetting these impacts were
reductions ($4.7 million) in the
equity portion of the allowance for funds used during construction
("AFUDC") due to the impact short-term borrowings have on AFUDC.
Both years experienced returns on Company Owned Life Insurance
("COLI") policies that were significantly higher than expected
($8.8 million in 2021 and
$9.2 million in 2020).
Net interest deductions decreased $3.6
million year-over-year, primarily due to the receivable
position of the Purchased Gas Adjustment ("PGA") mechanism balance
in 2021, in addition to amortization of an interest-related
regulatory balance in Arizona.
These decreases were partially offset by the impacts of
debt-related AFUDC in 2021.
The $6.4 million decrease in
income tax expense in 2021 compared to 2020 primarily reflects
changes in Arizona and
California state apportionment
percentages and additional amortization of excess accumulated
deferred income taxes ("EADIT"). Both years reflect that
COLI-related earnings are recognized without tax consequences.
Fourth Quarter
Natural gas distribution segment net income increased to
$84.6 million for the fourth
quarter of 2021 compared to $79.6
million for the fourth quarter of 2020. Results reflect a
COLI cash surrender value increase of $3 million in the fourth
quarter of 2021, compared to an increase of $8.2 million in the fourth quarter of 2020.
Southwest Gas increased its operating margin $20 million
quarter-over-quarter. Approximately $3
million of incremental margin was attributable to customer
growth from 37,000 first-time meter sets during the last twelve
months, while combined rate relief added approximately $15 million of margin. The Company also
benefitted from enhanced regulatory account recoveries, margin from
customers outside of decoupling mechanisms, and late fees due to
the lifting of the pandemic-period moratorium on such fees.
Operations and maintenance expense increased $7 million between comparative fourth quarters
primarily due to higher levels of service-related pension costs
($1.7 million), increased
customer-related and information technology costs ($5.1 million), and expenditures for pipeline
damage prevention programs associated with a growing infrastructure
and customer base. Depreciation and amortization expense increased
$4.3 million
quarter-over-quarter primarily due to an increase in average gas
plant in service since the corresponding quarter a year ago.
Other income decreased $4 million
quarter-over-quarter primarily due to a decline in the level of
income associated with COLI policies. The current quarter reflects
a $3 million increase in COLI policy
cash surrender values, while the prior-year quarter reflected an
$8.2 million increase. Amounts
associated with AFUDC decreased $1.3
million in the current period. Offsetting these combined
impacts is a $1.5 million
decrease in non-service-related components of employee pension and
other postretirement benefit costs between quarters.
Utility Infrastructure Services Segment Results
Full Year 2021
Revenues increased $210.4 million,
or 11%, including $163.8 million
recorded by Riggs Distler subsequent to its acquisition on
August 27, 2021. Revenues from electric infrastructure
services increased $113.4 million in 2021 when compared to the
prior year, of which $108 million was recorded by Riggs
Distler. Included in the incremental electric infrastructure
services revenues overall during 2021 was $65.3 million from emergency restoration
services performed by Linetec and Riggs Distler following
hurricane, tornado, and other storm damage to customers'
above-ground utility infrastructure in and around the Gulf Coast
and eastern regions of the U.S., compared to $81.5 million in the prior year. The current
year also includes approximately $118
million in incremental revenues, including $20 million recorded by Riggs Distler, from
continued growth with gas infrastructure services customers under
master service and bid agreements, partially offset by reduced work
with two significant customers during 2021 (totaling $76.9 million), due to the mix of projects under
each customer's multi-year capital spending programs.
Utility infrastructure services expenses increased
$226 million (including $14
million of professional fees related to the acquisition of
Riggs Distler), or 13%, between 2021 and 2020. The increase overall
includes $144.9 million incurred
by Riggs Distler subsequent to the acquisition, as well as
incremental costs related to electric infrastructure services work
and costs necessary for the completion of additional gas
infrastructure work. Higher fuel costs, equipment rental expense,
and subcontractor expenses were also incurred due to the mix of
work and in support of growth in our electric infrastructure
business. Expenses in relation to revenues, and therefore, profit
margins, can be impacted by inefficiencies from equipment and
facility utilization and under-absorption of other fixed costs,
which occurred due to the reduced work from the two large customers
noted above. Also included in total Utility infrastructure services
expenses were general and administrative costs, which increased
approximately $22.6 million
year-over-year, including $14 million
of acquisition-related professional fees previously noted and
$9.3 million of general and
administrative costs incurred by Riggs Distler subsequent to the
acquisition. Other administrative costs increased due to the growth
in the business, but were offset by lower incentive compensation
expense in 2021 as compared to 2020. Gains on sale of equipment
(reflected as an offset to Utility infrastructure services
expenses) were approximately $6.9 million and $1.8 million in 2021 and 2020,
respectively.
Depreciation and amortization expense increased $20.9 million between 2021 and 2020, of
which $16.8 million was recorded
by Riggs Distler subsequent to the acquisition. The remaining
increase was attributable to equipment and computer systems
purchased to support the growing volume of infrastructure work.
Depreciation expense, relative to the revenues recorded, was
generally consistent during 2021 compared to 2020.
Other income increased $1.3
million in 2021 attributable to proceeds from life insurance
policies of $1.8 million, partially
offset by $700,000 of unamortized
loan fees that were expensed in connection with Centuri's debt
refinancing.
The increase in net interest deductions of $11.7 million is primarily due to incremental
interest related to outstanding borrowings under Centuri's
$1.545 billion amended and restated
secured revolving credit and term loan facility in conjunction with
the acquisition of Riggs Distler.
Income tax expense decreased $12.4
million between 2021 and 2020, primarily due to reduced
pre-tax income in 2021. Certain costs related to the Riggs Distler
acquisition were non-deductible for U.S. federal income tax
purposes, which impacted the recorded income tax expense during
2021.
Fourth Quarter
Utility infrastructure services segment net income was
$7.6 million for the fourth
quarter of 2021 and $23.9 million for the fourth quarter of
2020.
Utility infrastructure revenues increased $94 million in the fourth quarter of 2021 when
compared to the prior-year quarter, including $114.3 million from Riggs Distler. The fourth
quarter of 2021 included $7.4 million
from emergency restoration services performed by Linetec and Riggs
Distler; however, the same quarter of 2020 included $25.6 million in similar services performed by
Linetec.
Utility infrastructure services expenses increased $97 million compared to the prior-year quarter,
and also included $102.4 million in
expenses recorded by Riggs Distler subsequent to the acquisition.
Higher fuel costs and equipment rental expense are reflected in
expenses due to the mix of work completed and in support of growth
in our infrastructure business. Expenses for other types of work
were lower in the fourth quarter of 2020 due to a reduction in the
amount of work being performed.
Depreciation and amortization increased $12.1 million compared to the prior-year quarter
primarily attributable to expense recorded by Riggs Distler. Net
interest deductions increased $9.4
million due to incremental borrowings associated with the
Riggs Distler acquisition. Income tax expense declined $8.0 million due to lower pre-tax income.
Conference Call and Webcast
Southwest Gas will host a conference call on Wednesday, March 2, 2022, at 1 p.m. ET to discuss its fourth quarter and full
year 2021 results. The associated press releases and presentation
slides are available at
https://investors.swgasholdings.com/investor-overview.
The call will be webcast live on the Company's website at
www.swgasholdings.com. The telephone dial-in numbers in the U.S.
and Canada are toll free: (877)
419-3678 or international: (614) 610-1910. The conference ID is
7668616. The webcast will be archived on the Southwest Gas
website.
Outlook for 2022
On March 1, 2022, the Company
announced that its Board of Directors has unanimously decided to
separate Centuri from the Company. The separation is expected to
occur within the next 9 to 12 months. The separation will be
effected with the goal of maximizing value for Southwest Gas
stockholders. Details of the separation, including structure, will
be publicly disclosed following the Company's finalization of its
separation plans.
In connection with the decision to separate Centuri, and the
uncertainty of associated costs and timing, management is not
providing EPS guidance at this time and is replacing its prior
guidance with the following expectations for 2022:
Natural Gas Distribution Segment
- Net income of $200 million to
$210 million, which includes COLI
earnings of $3 million to
$5 million.
- Capital expenditures of $650
million to $700 million, in
support of customer growth, system improvements, and pipe
replacement programs.
- Five-year utility rate base compound annual growth rate of 7%
(2022 – 2026).
MountainWest
- 2022 revenue of $240 million to
$245 million.
- Run rate EBITDA margin of 68% to 72% (excluding non-recurring
integration costs).
- Accretive to earnings in 2022 on a run rate basis.
Utility Infrastructure Services Segment
- Revenues for 2022 are expected to be $2.65 billion to $2.80
billion.
- Normalized EBITDA margin of 11% to 12% (excluding non-recurring
separation costs).
Southwest Gas Holdings currently has three business
segments:
Southwest Gas Corporation provides safe and reliable natural gas
service to over 2 million customers in Arizona, Nevada, and California.
MountainWest operates over 2,000 miles of highly contracted,
FERC-regulated interstate natural gas pipeline providing
transportation and underground storage services in the Rocky
Mountain region.
Centuri Group, Inc. is a strategic infrastructure services
company that partners with regulated utilities to build and
maintain the energy network that powers millions of homes and
businesses across the United
States and Canada.
Forward-Looking Statements: This press release
contains forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995, Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements
include, without limitation, statements regarding Southwest Gas
Holdings, Inc. (the "Company") and the Company's expectations or
intentions regarding the future. These forward-looking statements
can often be identified by the use of words such as "will",
"predict", "continue", "forecast", "expect", "believe",
"anticipate", "outlook", "could", "target", "project", "intend",
"plan", "seek", "estimate", "should", "may" and "assume", as well
as variations of such words and similar expressions referring to
the future, and include (without limitation) statements regarding
expectations of continuing growth in 2022. In addition, the
statements under the heading "Outlook for 2022" that are not
historic, constitute forward-looking statements. A number of
important factors affecting the business and financial results of
the Company could cause actual results to differ materially from
those stated in the forward-looking statements. These factors
include, but are not limited to, the timing and amount of rate
relief, changes in rate design, customer growth rates, the effects
of regulation/deregulation, tax reform and related regulatory
decisions, the impacts of construction activity at Centuri, whether
we will separate Centuri within the anticipated timeframe and the
impact to our results of operations and financial position from the
separation, the potential for, and the impact of, a credit rating
downgrade, the costs to integrate MountainWest, future earnings
trends, inflation, sufficiency of labor markets and similar
resources, seasonal patterns, the cost and management attention of
ongoing litigation that the Company is currently engaged in, the
effects of the pending tender offer and proxy contest brought by
Carl Icahn and his affiliates, and
the impacts of stock market volatility. In addition, the Company
can provide no assurance that its discussions about future
operating margin, operating income, COLI earnings, interest
expense, and capital expenditures of the natural gas distribution
segment will occur. Likewise, the Company can provide no assurance
that discussions regarding utility infrastructure services segment
revenues, EBITDA as a percentage of revenue, and interest expense
will transpire, nor assurance regarding acquisitions or their
impacts, including management's plans or expectations related
thereto, including with regard to Riggs Distler or MountainWest.
Factors that could cause actual results to differ also include
(without limitation) those discussed under the heading "Risk
Factors" in Southwest Gas Holdings, Inc.'s most recent Annual
Report on Form 10-K and in the Company's and Southwest Gas
Corporation's current and periodic reports, including our Quarterly
Reports on Form 10-Q, filed from time to time with the SEC. The
statements in this press release are made as of the date of this
press release, even if subsequently made available by the Company
on its Web site or otherwise. The Company does not assume any
obligation to update the forward-looking statements, whether
written or oral, that may be made from time to time, whether as a
result of new information, future developments, or
otherwise.
Non-GAAP Measures. This earnings release
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) adjusted
consolidated earnings per diluted share, (ii) adjusted consolidated
net income, (iii) natural gas distribution segment adjusted net
income, (iv) utility infrastructure services segment adjusted net
income, and (v) corporate and administrative adjusted net loss.
Management uses these non-GAAP measures internally to evaluate
performance and in making financial and operational decisions.
Management believes that its presentation of these measures
provides investors greater transparency with respect to its results
of operations and that these measures are useful for a
period-to-period comparison of results. Management also believes
that providing these non-GAAP financial measures helps investors
evaluate the Company's operating performance, profitability, and
business trends in a way that is consistent with how management
evaluates such performance. Adjusted consolidated net income for
the three months and year ended December 31,
2021 includes adjustments to add back expenses related to
the MountainWest acquisition and expenses related to the ongoing
proxy contest and related stockholder litigation. Management
believes that it is appropriate to adjust for expenses related to
the MountainWest acquisition because they are one-time expenses
that will not recur in future periods. Management believes it is
appropriate to adjust for expenses related to the proxy contest and
related stockholder litigation because of these matters are unique
and outside of the ordinary course of business for the Company. In
addition, utility infrastructure adjusted net income and adjusted
consolidated net income include adjustments associated with
acquisition-related costs and partial-year net loss related to the
Riggs Distler acquisition.
Management also uses the non-GAAP measure of operating margin
related to its natural gas distribution operations. Southwest
recognizes operating revenues from the distribution and
transportation of natural gas (and related services) to customers.
Gas cost is a tracked cost, which is passed through to customers
without markup under purchased gas adjustment ("PGA") mechanisms,
impacting revenues and net cost of gas sold on a dollar-for-dollar
basis, thereby having no impact on Southwest's profitability.
Therefore, management routinely uses operating margin, defined by
management as gas operating revenues less the net cost of gas sold,
in its analysis of Southwest's financial performance. Operating
margin also forms a basis for Southwest's various regulatory
decoupling mechanisms. Management believes supplying information
regarding operating margin provides investors and other interested
parties with useful and relevant information to analyze Southwest's
financial performance in a rate-regulated environment. (The
included Southwest Gas Holdings, Inc. Consolidated Earnings Digest
provides reconciliations for these non-GAAP measures.)
We do not provide a reconciliation of forward-looking
Non-GAAP Measures to the corresponding forward-looking GAAP measure
due to our inability to project special charges and certain
expenses.
SOUTHWEST GAS
HOLDINGS, INC. CONSOLIDATED EARNINGS DIGEST
|
(In thousands, except
per share amounts)
|
|
|
|
Year Ended
December 31,
|
|
|
2021
|
|
2020
|
Consolidated
Operating Revenues
|
|
$
3,680,451
|
|
$
3,298,873
|
|
|
|
|
|
Net Income applicable
to Southwest Gas Holdings
|
|
$
200,779
|
|
$
232,324
|
|
|
|
|
|
Weighted Average
Common Shares
|
|
59,145
|
|
55,998
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
3.39
|
|
$
4.15
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
3.39
|
|
4.14
|
|
|
|
|
|
Reconciliation of
Gross margin to Operating Margin (Non-GAAP measure)
|
|
|
|
|
Utility Gross
Margin
|
|
$
570,325
|
|
$
528,730
|
Plus:
|
|
|
|
|
Operations and
maintenance (excluding Admin & General) expense
|
|
267,160
|
|
243,723
|
Depreciation and
amortization expense
|
|
253,398
|
|
235,295
|
Operating
Margin
|
|
$
1,090,883
|
|
$
1,007,748
|
|
|
|
Three Months Ended
December 31,
|
|
|
2021
|
|
2020
|
Consolidated
Operating Revenues
|
|
$
1,084,427
|
|
$
914,080
|
|
|
|
|
|
Net Income applicable
to Southwest Gas Holdings
|
|
$
69,943
|
|
$
103,544
|
|
|
|
|
|
Weighted Average
Common Shares
|
|
60,647
|
|
56,934
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
1.15
|
|
$
1.82
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
1.15
|
|
$
1.82
|
|
|
|
|
|
Reconciliation of
Gross margin to Operating Margin (Non-GAAP measure)
|
|
|
|
|
Utility Gross
Margin
|
|
$
178,135
|
|
$
173,876
|
Plus:
|
|
|
|
|
Operations and
maintenance (excluding Admin & General) expense
|
|
72,689
|
|
60,962
|
Depreciation and
amortization expense
|
|
65,710
|
|
61,430
|
Operating
Margin
|
|
$
316,534
|
|
$
296,268
|
Reconciliation of non-GAAP financial measures of Adjusted
net income (loss) and Adjusted diluted earnings per share and their
comparable GAAP measures of Net income (loss) and Diluted earnings
(loss) per share. Note that the comparable GAAP measures are also
included in Note 13 - Segment Information in the Company's
December 31, 2021 Form 10-K. Prior
periods are not presented below as comparable non-GAAP adjustments
were not applicable in comparable periods of the prior
year.
Amounts in
thousands, except per share amounts
|
|
|
Three
Months
|
Year
Ended
|
|
Ended
|
|
|
December 31,
2021
|
|
|
|
|
|
|
Reconciliation of Net
income to non-GAAP measure of Adjusted net income
|
|
Net income applicable
to Natural Gas Distribution (GAAP)
|
$
84,551
|
$
187,135
|
Plus:
|
|
|
Legal reserve, net of
tax
|
-
|
3,800
|
Adjusted net income
applicable to Natural Gas Distribution
|
$
84,551
|
$
190,935
|
|
|
|
Net income applicable
to Infrastructure Services (GAAP)
|
$
7,623
|
$
40,420
|
Plus:
|
|
|
Riggs Distler
transaction costs, net of tax
|
-
|
11,663
|
Riggs Distler interim
operations loss, interest and other, net of tax
|
7,300
|
9,837
|
Adjusted net income
applicable to Infrastructure Services
|
$
14,923
|
$
61,920
|
|
|
|
Net loss - Corporate
and administrative (GAAP)
|
$
(22,231)
|
$
(26,776)
|
Plus:
|
|
|
Questar Pipelines
transaction costs, net of tax
|
17,329
|
17,329
|
Proxy contest and
shareholder litigation, net of tax
|
3,421
|
3,421
|
Adjusted net loss
applicable to Corporate and administrative
|
$
(1,481)
|
$
(6,026)
|
|
|
|
Net income applicable
to Southwest Gas Holdings (GAAP)
|
$
69,943
|
$
200,779
|
Plus:
|
|
|
Legal reserve, net of
tax
|
-
|
3,800
|
Riggs Distler
transaction costs, net of tax
|
-
|
11,663
|
Riggs Distler interim
operations loss, interest and other, net of tax
|
7,300
|
9,837
|
Questar Pipelines
transaction costs, net of tax
|
17,329
|
17,329
|
Proxy contest and
shareholder litigation, net of tax
|
3,421
|
3,421
|
Ongoing net income
applicable to Southwest Gas Holdings
|
$
97,993
|
$
246,829
|
|
|
|
Weighted average
shares - diluted
|
60,795
|
59,259
|
|
|
|
Earnings per
share
|
|
|
Diluted earnings per
share
|
$
1.15
|
$
3.39
|
Adjusted consolidated
earnings per diluted share
|
$
1.61
|
$
4.17
|
For investor
information, contact:
|
For media
information, contact:
|
Boyd
Nelson
|
Sean
Corbett
|
(702)
876-7237
|
(702)
876-7219
|
boyd.nelson@swgas.com
|
sean.corbett@swgas.com
|
SOUTHWEST GAS
HOLDINGS, INC.
|
SUMMARY UNAUDITED
OPERATING RESULTS
|
(In thousands, except
per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Results of
Consolidated Operations
|
|
|
|
|
|
|
|
Contribution to net
income - gas distribution
|
$
84,551
|
|
$
79,550
|
|
$
187,135
|
|
$
159,118
|
Contribution to net
income - utility infrastructure services
|
7,623
|
|
23,926
|
|
40,420
|
|
74,862
|
Corporate and
administrative
|
(22,231)
|
|
68
|
|
(26,776)
|
|
(1,656)
|
Net income
|
$
69,943
|
|
$
103,544
|
|
$
200,779
|
|
$
232,324
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
1.15
|
|
$
1.82
|
|
$
3.39
|
|
$
4.15
|
Diluted earnings per
share
|
$
1.15
|
|
$
1.82
|
|
$
3.39
|
|
$
4.14
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
60,647
|
|
56,934
|
|
59,145
|
|
55,998
|
Weighted average
diluted shares
|
60,795
|
|
57,034
|
|
59,259
|
|
56,076
|
|
|
|
|
|
|
|
|
Results of Natural
Gas Distribution
|
|
|
|
|
|
|
|
Gas operating
revenues
|
$
451,214
|
|
$
374,490
|
|
$
1,521,790
|
|
$
1,350,585
|
Net cost of gas
sold
|
134,680
|
|
78,222
|
|
430,907
|
|
342,837
|
Operating
margin
|
316,534
|
|
296,268
|
|
1,090,883
|
|
1,007,748
|
Operations and
maintenance expense
|
109,570
|
|
102,815
|
|
438,550
|
|
406,382
|
Depreciation and
amortization
|
65,710
|
|
61,430
|
|
253,398
|
|
235,295
|
Taxes other than
income taxes
|
20,209
|
|
15,953
|
|
80,343
|
|
63,460
|
Operating
income
|
121,045
|
|
116,070
|
|
318,592
|
|
302,611
|
Other income
(deductions)
|
343
|
|
4,357
|
|
(4,559)
|
|
(6,590)
|
Net interest
deductions
|
26,297
|
|
25,996
|
|
97,560
|
|
101,148
|
Income before income
taxes
|
95,091
|
|
94,431
|
|
216,473
|
|
194,873
|
Income tax
expense
|
10,540
|
|
14,881
|
|
29,338
|
|
35,755
|
Contribution to net
income - gas distribution
|
$
84,551
|
|
$
79,550
|
|
$
187,135
|
|
$
159,118
|
FINANCIAL
STATISTICS
|
|
|
Market value to book
value per share at quarter end
|
|
143%
|
Twelve months to date
return on equity -- total company
|
|
7.1%
|
-- gas distribution
|
|
7.8%
|
Common stock dividend
yield at quarter end
|
|
3.4%
|
Customer to employee
ratio at quarter end (gas distribution segment)
|
|
945 to 1
|
NATURAL GAS
DISTRIBUTION SEGMENT
|
|
|
|
|
|
|
|
|
Authorized Rate
Base
(In thousands)
|
|
Authorized Rate
of Return
|
|
Authorized Return
on Common Equity
|
Rate
Jurisdiction
|
|
|
|
Arizona
|
|
$
1,930,612
|
|
7.03%
|
|
9.10%
|
Southern
Nevada
|
|
1,325,236
|
|
6.52
|
|
9.25
|
Northern
Nevada
|
|
154,966
|
|
6.75
|
|
9.25
|
Southern
California
|
|
285,691
|
|
7.11
|
|
10.00
|
Northern
California
|
|
92,983
|
|
7.44
|
|
10.00
|
South Lake
Tahoe
|
|
56,818
|
|
7.44
|
|
10.00
|
Great Basin Gas
Transmission Company (1)
|
|
135,460
|
|
8.30
|
|
11.80
|
(1) Estimated
amounts based on 2019/2020 rate case settlement.
|
|
SYSTEM THROUGHPUT
BY CUSTOMER CLASS
|
|
|
|
|
Year Ended
December 31,
|
(In
dekatherms)
|
|
2021
|
|
2020
|
|
2019
|
Residential
|
|
76,810,460
|
|
80,067,973
|
|
81,838,973
|
Small
commercial
|
|
31,050,963
|
|
29,316,352
|
|
33,322,111
|
Large
commercial
|
|
9,490,130
|
|
9,124,202
|
|
9,932,641
|
Industrial /
Other
|
|
5,104,137
|
|
5,315,357
|
|
4,255,086
|
Transportation
|
|
94,955,200
|
|
98,327,608
|
|
100,798,916
|
Total system
throughput
|
|
217,410,890
|
|
222,151,492
|
|
230,147,727
|
|
HEATING DEGREE DAY
COMPARISON
|
|
|
|
|
|
|
Actual
|
|
1,627
|
|
1,764
|
|
1,908
|
Ten-year
average
|
|
1,637
|
|
1,672
|
|
1,693
|
Heating degree days
for prior periods have been recalculated using the current period
customer mix.
|
View original
content:https://www.prnewswire.com/news-releases/southwest-gas-holdings-inc-announces-2021-earnings-301493325.html
SOURCE Southwest Gas Holdings, Inc.