Southwest Gas Holdings (SWX) Investor presentation summary

Business overview and strategic positioning

• Operates as a fully regulated natural gas utility serving over 2.2 million customers in Arizona, Nevada, and California, with a 2025 estimated rate base of $6.7 billion.

• Focused on safe, reliable, and affordable service, with a strong commitment to sustainable energy solutions and innovation.

• Maintains investment grade credit ratings and balance sheet flexibility, supporting strategic growth and capital allocation.

• Achieved ~1.0% net customer growth over the last twelve months, driven by robust regional economic and population expansion.

• Recognized for industry-leading customer satisfaction and best-in-class governance practices.

Financial performance and guidance

• 2025 revenue projected at $1.9 billion, with adjusted net income of $284 million and EPS of $3.65.

• Affirmed 2026–2030 guidance: 12–14% EPS CAGR and 9.5–11.5% rate base CAGR, supported by a $6.3 billion five-year capital plan.

• 2026 capital plan includes $1.25 billion in expenditures, with no anticipated equity issuances and a targeted 50/50 capital structure.

• Increased annual dividend by 4% to $2.58 per share, with a history of consistent dividend growth since 1956.

• Finished 1Q 2026 with nearly $500 million in cash and $1.2 billion in available liquidity.

Regulatory and operational highlights

• Filed 2026 rate cases in Arizona ($101M increase) and Nevada ($71M increase), with rates expected to become effective in 2027 and late 2026, respectively.

• California rate case settlement approved at 90% of requested revenue; final decision on cost of capital pending.

• Great Basin 2028 Expansion Project secured $1.7 billion in capital investment, with binding agreements for 0.6 bcf/day and significant incremental margin expected.

• Nevada Triennial Resource Plan approved, supporting $187 million in capital investment for system reliability and growth.

• Actively pursuing alternative ratemaking mechanisms in AZ and NV to enhance earnings stability and regulatory outcomes.