Reaffirms 2022 Guidance and Confidence in
Long-Term Growth Prospects
Moving Forward Expeditiously with Strategic
Alternatives Review Process
LAS
VEGAS, May 9, 2022 /PRNewswire/ -- Southwest Gas
Holdings, Inc. (NYSE: SWX) today reported first quarter 2022
financial results.
SOUTHWEST GAS
HOLDINGS, INC.
SUMMARY UNAUDITED
OPERATING RESULTS
(in millions, except
per share items)
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
March 31,
|
|
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Contribution to net
income - natural
gas distribution
|
$
111.8
|
|
$
118.7
|
|
$
180.2
|
|
$
194.2
|
Contribution to net
income - utility
infrastructure services
|
(23.5)
|
|
(0.9)
|
|
17.8
|
|
84.2
|
Contribution to net
income - pipeline
and storage
|
16.9
|
|
-
|
|
16.9
|
|
-
|
Corporate and
administrative income
|
(9.0)
|
|
(0.6)
|
|
(35.3)
|
|
(1.4)
|
Net income
|
$
96.2
|
|
$
117.2
|
|
$
179.6
|
|
$
277.0
|
Adjustments (1)
|
10.0
|
|
-
|
|
46.2
|
|
-
|
Adjusted net
income
|
$
106.2
|
|
$
117.2
|
|
$
225.8
|
|
$
277.0
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
1.58
|
|
$
2.04
|
|
$
3.00
|
|
$
4.90
|
Diluted earnings per
share
|
$
1.58
|
|
$
2.03
|
|
$
2.99
|
|
$
4.89
|
|
|
|
|
|
|
|
|
Basic adjusted earnings
per share
|
$
1.75
|
|
$
2.04
|
|
$
3.77
|
|
$
4.90
|
Diluted adjusted
earnings per share
|
$
1.74
|
|
$
2.03
|
|
$
3.76
|
|
$
4.89
|
|
|
|
|
|
|
|
|
Weighted average common
shares
|
60.737
|
|
57.600
|
|
59.919
|
|
56.564
|
Weighted average
diluted shares
|
60.854
|
|
57.679
|
|
60.044
|
|
56.649
|
|
(1) Adjustments for
non-recurring expenses associated with MountainWest integration and
corporate shareholder engagement, as well as acquisition-related
costs for MountainWest and Riggs Distler acquisitions and utility
legal accrual in 2021
|
In the first quarter of 2022, Southwest Gas delivered:
- Adjusted consolidated earnings of $1.74 per diluted share (and consolidated
earnings of $1.58 per diluted share),
compared to consolidated earnings of $2.03 per diluted share for the first quarter of
2021.
- Adjusted consolidated net income of $106.2 million (and consolidated net income of
$96.2 million), compared to
consolidated net income of $117.2
million for the first quarter of 2021.
- A $0.10 (4.2%) increase in the
annualized dividend rate.
- Strategic Alternatives Process to review all strategic
alternatives available to maximize value for Southwest Gas
stockholders.
"Our first quarter results reflect the impacts of global
inflationary headwinds across our portfolio, as well as typical
seasonality and business volatility at our infrastructure services
business," said Karen S. Haller,
President and Chief Executive Officer. "Our businesses are
fundamentally strong and poised for long-term value creation
despite these short-term impacts. Today we are reaffirming our
full-year 2022 guidance and believe we are positioned to deliver
the results our stockholders expect."
Reaffirming Financial Guidance
Southwest Gas reaffirms its financial guidance as recently
updated:
Natural Gas Distribution Segment Guidance and
Outlook:
- ROE in 2023 and beyond of 8%+;
- Five-year utility rate base compound annual growth rate of 5% –
7% (2022 – 2026);
- 5-Year O&M/per customer CAGR of less than 1%;
- 2022 net income of $200 million
to $210 million, which includes COLI
earnings of $3 million to
$5 million;
- 2022 capital expenditures of $650
million to $700 million, in
support of customer growth, system improvements, and pipe
replacement programs; and
- 5-Year capital expenditures of $2.5 – $3.5
billion.
Centuri / Utility Infrastructure Services Segment Guidance
and Outlook:
- 2022 revenues of $2.65 billion to
$2.80 billion;
- 2022 run rate EBITDA margin of 11% to 12% (excluding
non-recurring costs of the potential separation); and
- 2022 – 2026 Adjusted EBITDA CAGR of 9% – 11%.
MountainWest Guidance and Outlook:
- 2022 revenue of $240 million to
$245 million;
- 2022 run rate EBITDA margin of 68% to 72% (excluding
non-recurring and overlapping integration costs);
- Earnings accretion in 2022 on a run rate basis exclusive of
non-recurring integration costs; and
- The Company is now targeting approximately $100 million in incremental growth investment
opportunities at MountainWest over the next three years. The
Company further expects to construct these projects at an EBITDA
build multiple of less than 6x, driving meaningful value creation
for stockholders.
Business Segment Highlights
Natural Gas Distribution
The natural gas distribution segment delivered net income of
$111.8 million in the first quarter
of 2022, compared to net income of $118.7
million in the first quarter of 2021. Coming off a
record-setting first quarter in 2021, the natural gas distribution
segment will benefit from new rates in Nevada in the second quarter of 2022 and
anticipated rate relief in Arizona
in early 2023.
Key operational highlights include:
- Finalized Nevada general rate
case resulting in a continuation of the decoupling mechanism and
rate relief effective April 2022,
underscoring constructive relationship with the regulator;
- 38,000 new utility customers added during the past 12
months;
- Increased operating margin by $14
million compared to the first quarter in 2021;
- $141 million capital investment
during the quarter; and
- $600 million of 4.05% 10-year
debt financing completed in March.
Key drivers of the first quarter performance in 2022 as compared
to first quarter performance in 2021 include:
- COLI results declined $4.7
million compared to the first quarter of 2021;
- O&M expense increased by $13.5
million compared to the first quarter of 2021 due to
increased costs associated with customer support systems, employee
benefits, insurance and other inflationary impacts;
- Increased depreciation expense of $3.4
million and increased interest expense of $4.4 million compared to the first quarter of
2021;
- Timing associated with rate relief:
-
- Nevada rate relief began in Q2
2022; and
- Arizona rate relief
anticipated in early 2023.
Centuri / Utility Infrastructure Services
The utility infrastructure services segment had a net loss of
$23.5 million in the first quarter of
2022, compared to a net loss of $0.9
million in the first quarter 2021. Infrastructure services
results are typically seasonally lower in the first quarter. The
first quarter 2021 results included $4.5
million of net income attributable to favorable timing in
respect of a change order and selected larger gas projects.
Centuri's performance was impacted by the inflationary cost
environment and acquisition-related costs, as well as inclement
weather in the upper Midwest and Eastern
United States that delayed the start of certain large gas
utility projects.
Key operational highlights include:
- Record revenues of $524 million,
an increase of 44% compared to the first quarter of 2021 (13%
organic business growth);
- $125+ million contracted off-shore wind support work to begin
in second half of 2022; significant pending awards for multi-year
performance;
- Cross-selling award of new 5G datacom work in the Southeast
U.S. and new MSA contract for 5G datacom work in the Northeast U.S;
and
- On track to meet full-year 2022 guidance.
Key drivers of Centuri's first quarter performance in 2022 as
compared to first quarter performance in 2021 include:
- Higher fuel, equipment rental, and subcontractor costs;
- Higher interest and amortization expense; and
- Inclement weather in upper Midwest and Eastern U.S.
MountainWest
MountainWest reported $16.9
million of net income. MountainWest's results were impacted
by $9 million of pre-tax,
non-recurring expenses, primarily associated with one-time
integration costs and payment of employee benefit costs associated
with purchase and sale agreement obligations. After accounting for
these non-recurring expenses, MountainWest results were in line
with Company expectations. In addition, the Company has identified
approximately $100 million of
incremental growth investment opportunities over the next three
years at MountainWest, which will provide future income growth.
Key operational highlights include:
- Finalized acquisition and related transaction equity
financing;
- $67 million in recognized
revenue; and
- Contributed $16.9 million to
consolidated net income and $23.5
million on an adjusted basis.
Strategic Alternatives Review Process Update
The Southwest Gas Board is moving forward expeditiously with the
previously-announced strategic alternatives review process in order
to maximize value for all stockholders. Strategic alternatives
under consideration include a sale of the Company or its underlying
businesses, as well as a spin-off of Centuri, which the Board
announced previously. The Board formed a Strategic Transactions
Committee (the "Committee"), comprising independent directors with
deep regulatory and M&A expertise and experience to lead the
process: Anne Mariucci, Carlos Ruisanchez and Jane Lewis-Raymond. Andrew Evans, Russell
Frisby, Jr. and Henry
Linginfelter will join the Committee following the 2022
Annual Meeting of Stockholders.
The Committee has engaged an independent financial advisor,
Moelis & Company LLC, to work with the Company's lead financial
advisor, Lazard.
Conference Call and Webcast
Southwest Gas will host a conference call on Monday, May 9, 2022 at 6:00 p.m. ET to discuss its first quarter 2022
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: (866)
342-8588 or international: (203) 518-9865. The conference ID is
44121. The webcast will be archived on the Southwest Gas
website.
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 results of the strategic
review being undertaken by the strategic transactions committee of
the Company's board of directors, 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 and the impact to our results of
operations and financial position from a 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 costs and effect of
stockholder activism, 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, and (iii) MountainWest adjusted consolidated net
income. 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 ended March 31, 2022
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.
Contacts
For investor information, contact: Boyd
Nelson, (702) 876-7237, boyd.nelson@swgas.com; or Innisfree
M&A Incorporated, Scott
Winter/Jennifer
Shotwell/Jon Salzberger,
(212) 750-5833.
For media information, contact: Sean
Corbett, (702) 876-7219, sean.corbett@swgas.com; or
Joele Frank, Wilkinson Brimmer
Katcher, Dan Katcher / Tim Lynch, (212) 355-4449.
SOUTHWEST GAS
HOLDINGS, INC. CONSOLIDATED EARNINGS DIGEST
(In thousands, except
per share amounts)
|
|
QUARTER ENDED MARCH 31,
|
|
2022
|
|
2021
|
Consolidated Operating
Revenues
|
|
$
1,267,409
|
|
$
885,907
|
|
|
|
|
|
Net Income applicable
to Southwest Gas Holdings
|
|
$
96,178
|
|
$
117,293
|
|
|
|
|
|
Weighted Average Common
Shares
|
|
60,737
|
|
57,600
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
1.58
|
|
$
2.04
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
1.58
|
|
$
2.03
|
|
|
|
|
|
Reconciliation of Gross
margin to Operating Margin (non-GAAP measure)
|
|
|
|
|
Utility Gross
Margin
|
|
$
233,882
|
|
$
233,156
|
Plus:
|
|
|
|
|
Operations and
maintenance (excluding Admin & General) expense
|
|
73,422
|
|
64,057
|
Depreciation and
amortization expense
|
|
72,114
|
|
68,698
|
Operating
Margin
|
|
$
379,418
|
|
$
365,911
|
|
|
|
TWELVE MONTHS ENDED MARCH 31,
|
|
2022
|
|
2021
|
Consolidated Operating
Revenues
|
|
$
4,061,953
|
|
$
3,348,460
|
|
|
|
|
|
Net Income applicable
to Southwest Gas Holdings
|
|
$
179,664
|
|
$
277,075
|
|
|
|
|
|
Weighted Average Common
Shares
|
|
59,919
|
|
56,564
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
3.00
|
|
$
4.90
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
2.99
|
|
$
4.89
|
|
|
|
|
|
Reconciliation of Gross
margin to Operating Margin (non-GAAP measure)
|
|
|
|
|
Utility Gross
Margin
|
|
$
571,051
|
|
$
546,171
|
Plus:
|
|
|
|
|
Operations and
maintenance (excluding Admin & General) expense
|
|
276,525
|
|
246,214
|
Depreciation and
amortization expense
|
|
256,814
|
|
239,268
|
Operating
Margin
|
|
$
1,104,390
|
|
$
1,031,653
|
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 7 - Segment Information in the Company's
March 31, 2022 Form 10-Q. 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
Ended
|
|
Twelve Months
Ended
|
|
|
March 31, 2022
|
Reconciliation of Net
income to non-GAAP measure of Adjusted net income
|
|
|
|
|
Net income applicable
to Natural Gas Distribution (GAAP)
|
|
$
111,795
|
|
$
180,215
|
Plus:
|
|
|
|
|
Legal reserve, net of
tax
|
|
—
|
|
3,800
|
Adjusted net income
applicable to Natural Gas Distribution
|
|
$
111,795
|
|
$
184,015
|
|
|
|
|
|
Net income (loss)
applicable to Utility Infrastructure Services (GAAP)
|
|
$
(23,486)
|
|
$
17,793
|
Plus:
|
|
|
|
|
Riggs Distler
transaction costs, net of tax
|
|
—
|
|
11,663
|
Adjusted net income
(loss) applicable to Utility Infrastructure Services
|
|
$
(23,486)
|
|
$
29,456
|
|
|
|
|
|
Net income applicable
to Pipeline and Storage (GAAP)
|
|
$
16,930
|
|
$
16,930
|
Plus:
|
|
|
|
|
Non-recurring stand-up
costs associated with integrating MountainWest, net of
tax
|
|
6,580
|
|
6,580
|
Adjusted net income
applicable to Pipeline and Storage
|
|
$
23,510
|
|
$
23,510
|
|
|
|
|
|
Net loss - Corporate
and administrative (GAAP)
|
|
$
(9,061)
|
|
$
(35,274)
|
Plus:
|
|
|
|
|
MountainWest
transaction and related costs, net of tax
|
|
532
|
|
17,861
|
Proxy contest and
stockholder litigation, net of tax
|
|
2,883
|
|
6,304
|
Adjusted net loss
applicable to Corporate and administrative
|
|
$
(5,646)
|
|
$
(11,109)
|
|
|
|
|
|
Net income applicable
to Southwest Gas Holdings (GAAP)
|
|
$
96,178
|
|
$
179,664
|
Plus:
|
|
|
|
|
Legal reserve, net of
tax
|
|
—
|
|
3,800
|
Riggs Distler
transaction costs, net of tax
|
|
—
|
|
11,663
|
Non-recurring stand-up
cost associated with integrating MountainWest, net of
tax
|
|
6,580
|
|
6,580
|
MountainWest
transaction costs, net of tax
|
|
532
|
|
17,861
|
Proxy contest and
stockholder litigation, net of tax
|
|
2,883
|
|
6,304
|
Adjusted net income
applicable to Southwest Gas Holdings
|
|
$
106,173
|
|
$
225,872
|
|
|
|
|
|
Weighted average shares
- diluted
|
|
60,854
|
|
60,044
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
Diluted earnings per
share
|
|
$
1.58
|
|
$
2.99
|
Adjusted consolidated
earnings per diluted share
|
|
$
1.74
|
|
$
3.76
|
SOUTHWEST GAS
HOLDINGS, INC.
SUMMARY UNAUDITED
OPERATING RESULTS
(In thousands, except
per share amounts)
|
|
|
Three Months
Ended
March 31,
|
|
Twelve Months
Ended
March 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Results of Consolidated
Operations
|
|
|
|
|
|
|
|
Contribution to net
income - natural gas distribution
|
$
111,795
|
|
$
118,715
|
|
$
180,215
|
|
$
194,234
|
Contribution to net
income - utility infrastructure services
|
(23,486)
|
|
(859)
|
|
17,793
|
|
84,207
|
Contribution to net
income - pipeline and storage
|
16,930
|
|
—
|
|
16,930
|
|
—
|
Corporate and
administrative
|
(9,061)
|
|
(563)
|
|
(35,274)
|
|
(1,366)
|
Net income
|
$ 96,178
|
|
$
117,293
|
|
$
179,664
|
|
$
277,075
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
1.58
|
|
$
2.04
|
|
$
3.00
|
|
$
4.90
|
Diluted earnings per
share
|
$
1.58
|
|
$
2.03
|
|
$
2.99
|
|
$
4.89
|
|
|
|
|
|
|
|
|
Weighted average common
shares
|
60,737
|
|
57,600
|
|
59,919
|
|
56,564
|
Weighted average
diluted shares
|
60,854
|
|
57,679
|
|
60,044
|
|
56,649
|
|
|
|
|
|
|
|
|
Results of Natural Gas
Distribution
|
|
|
|
|
|
|
|
Regulated operations
revenues
|
$
676,539
|
|
$
521,932
|
|
$
1,676,397
|
|
$
1,369,690
|
Net cost of gas
sold
|
297,121
|
|
156,021
|
|
572,007
|
|
338,037
|
Operating
margin
|
379,418
|
|
365,911
|
|
1,104,390
|
|
1,031,653
|
Operations and
maintenance expense
|
119,636
|
|
106,135
|
|
452,051
|
|
409,429
|
Depreciation and
amortization
|
72,114
|
|
68,698
|
|
256,814
|
|
239,268
|
Taxes other than income
taxes
|
21,652
|
|
20,687
|
|
81,308
|
|
67,769
|
Operating
income
|
166,016
|
|
170,391
|
|
314,217
|
|
315,187
|
Other income
(deductions)
|
1,315
|
|
550
|
|
(3,794)
|
|
14,496
|
Net interest
deductions
|
26,610
|
|
22,166
|
|
102,004
|
|
98,256
|
Income before income
taxes
|
140,721
|
|
148,775
|
|
208,419
|
|
231,427
|
Income tax
expense
|
28,926
|
|
30,060
|
|
28,204
|
|
37,193
|
Contribution to net
income - natural gas distribution
|
$
111,795
|
|
$
118,715
|
|
$
180,215
|
|
$
194,234
|
|
|
|
|
|
|
|
|
Results of Utility Infrastructure
Services
|
|
|
|
|
|
|
|
Utility infrastructure
services revenues
|
$
523,877
|
|
$
363,975
|
|
$
2,318,563
|
|
$
1,978,770
|
Operating
expenses:
|
|
|
|
|
|
|
|
Utility infrastructure
services expenses
|
503,232
|
|
335,614
|
|
2,123,085
|
|
1,745,729
|
Depreciation and
amortization
|
37,612
|
|
24,744
|
|
130,511
|
|
98,548
|
Operating income
(loss)
|
(16,967)
|
|
3,617
|
|
64,967
|
|
134,493
|
Other income
(deductions)
|
(486)
|
|
(102)
|
|
683
|
|
(67)
|
Net interest
deductions
|
11,131
|
|
1,622
|
|
30,508
|
|
7,992
|
Income (loss) before
income taxes
|
(28,584)
|
|
1,893
|
|
35,142
|
|
126,434
|
Income tax expense
(benefit)
|
(6,170)
|
|
1,200
|
|
11,406
|
|
34,477
|
Net income
(loss)
|
(22,414)
|
|
693
|
|
23,736
|
|
91,957
|
Net income attributable
to noncontrolling interests
|
1,072
|
|
1,552
|
|
5,943
|
|
7,750
|
Contribution to
consolidated results attributable to Centuri
|
$
(23,486)
|
|
$
(859)
|
|
$ 17,793
|
|
$ 84,207
|
|
|
Three Months
Ended March 31,
|
|
|
2022
|
Results of Pipeline and Storage
|
|
|
Regulated operations
revenues
|
|
$
66,993
|
Operating
expenses:
|
|
|
Net cost of gas
sold
|
|
1,797
|
Operations and
maintenance expense
|
|
24,312
|
Depreciation and
amortization
|
|
12,920
|
Taxes other than income
taxes
|
|
3,164
|
Operating
income
|
|
24,800
|
Other income
(deductions)
|
|
543
|
Net interest
deductions
|
|
4,382
|
Income before income
taxes
|
|
20,961
|
Income tax
expense
|
|
4,031
|
Contribution to
consolidated results attributable to MountainWest
|
|
$
16,930
|
FINANCIAL
STATISTICS
|
|
|
|
Market value to book
value per share at quarter end
|
|
150 %
|
Twelve months to date
return on equity
|
-- total
company
|
|
6.0
%
|
|
-- gas
segment
|
|
7.3
%
|
Common stock dividend
yield at quarter end
|
|
3.2
%
|
Customer to employee
ratio at quarter end (gas segment)
|
|
961 to 1
|
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)
|
|
1,535,593
|
|
6.30
|
|
9.40
|
Northern Nevada
(1)
|
|
174,965
|
|
6.56
|
|
9.40
|
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 (2)
|
|
135,460
|
|
8.30
|
|
11.80
|
|
(1) Reflects final rate
case decision with rates effective 04/2022.
|
(2) Estimated amounts
based on 2019/2020 rate case settlement.
|
SYSTEM THROUGHPUT BY CUSTOMER
CLASS
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
Twelve Months
Ended
March 31,
|
(In
dekatherms)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Residential
|
|
38,867,195
|
|
38,889,620
|
|
76,788,035
|
|
80,653,418
|
Small
commercial
|
|
12,922,387
|
|
11,845,171
|
|
32,128,179
|
|
28,790,924
|
Large
commercial
|
|
2,694,948
|
|
2,636,978
|
|
9,548,100
|
|
8,997,446
|
Industrial /
Other
|
|
1,177,808
|
|
1,241,284
|
|
5,040,661
|
|
5,099,314
|
Transportation
|
|
23,060,721
|
|
22,168,757
|
|
95,847,164
|
|
96,631,469
|
Total system
throughput
|
|
78,723,059
|
|
76,781,810
|
|
219,352,139
|
|
220,172,571
|
HEATING DEGREE DAY
COMPARISON
|
|
|
|
|
|
|
|
|
Actual
|
|
1,013
|
|
1,021
|
|
1,619
|
|
1,760
|
Ten-year
average
|
|
971
|
|
974
|
|
1,633
|
|
1,662
|
|
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-first-quarter-2022-financial-results-301543042.html
SOURCE Southwest Gas Holdings, Inc.