SEC Filing | Southwest Gas Holdings

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swx-20230518

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 18, 2023

SOUTHWEST GAS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-37976

81-3881866

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

8360 S. Durango Drive

Post Office Box 98510

Las Vegas, Nevada 89193-8510

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (702) 876‑7237

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Southwest Gas Holdings, Inc. Common Stock, $1 Par Value

SWX

New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

On May 18, 2023 Southwest Gas Holdings, Inc. (the “Company”) released summary statistical information for each of the ten years in the period ended December 31, 2022. A copy of this information is attached hereto as Exhibit 99.

This Form 8-K and the attached exhibit are provided under Item 7.01 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						SOUTHWEST GAS HOLDINGS, INC.

Date: May 18, 2023						/s/ LORI L. COLVIN
						Lori L. Colvin
						Vice President/Controller/Chief Accounting Officer

EXHIBIT INDEX

Exhibit

No. Description

99 Summary statistical information as of December 31, 2022 released on May 1 8 , 202 3 .

Document

NATURAL GAS DISTRIBUTION SEGMENT

RATEMAKING JURISDICTIONS AND REGULATORY AGENCIES

Southwest Gas Corporation (Southwest Gas) is subject to regulation by the Arizona Corporation Commission (ACC), the Public Utilities Commission of Nevada (PUCN), and the California Public Utilities Commission (CPUC). These commissions regulate public utility rates, practices, facilities, and service territories in their respective states.

The Federal Energy Regulatory Commission (FERC) regulates a wholly owned subsidiary of Southwest Gas, Great Basin Gas Transmission Company (Great Basin), and the rates it charges for transportation of gas directly to certain end-users and the transportation and storage of gas to various local distribution companies for resale in northern Nevada and northern California.

Shown below is a list of Southwest Gas' ratemaking jurisdictions and the corresponding regulatory agency having jurisdiction:

Ratemaking Jurisdiction

Regulatory Agency

Arizona:

Arizona Corporation Commission

1200 West Washington

Web site:

www.azcc.gov

Phoenix, AZ 85007-2996

(602) 542-4251

FAX:

(602) 542-4100

California:

California Public Utilities Commission

Northern

505 Van Ness Avenue

Web site:

www.cpuc.ca.gov

Southern

San Francisco, CA 94102-3298

South Lake Tahoe

(415) 703-2782

FAX:

(415) 703-1758

Nevada:

Public Utilities Commission of Nevada

Northern

1150 East William Street

Web site:

http://puc.nv.gov

Southern

Carson City, NV 89701-3109

(775) 684-6101

FAX:

(775) 684-6110

Nevada/California:

Federal Energy Regulatory Commission

Great Basin

888 First Street, N.E.

Web site:

www.ferc.gov

Washington, DC 20426

(202) 502-8400

FAX:

(202) 208-2268

A list of the commissioners appointed or elected to the various regulatory agencies follows this page.

SUMMARY OF COMMISSIONER STATUS BY JURISDICTION

April 2023

ARIZONA

Five members, elected statewide to four-year staggered terms. Governor appoints replacements, if position is vacated.

Chairman Jim O’Connor

Rep.

Term ends

01/01/2025

Commissioner Kevin Thompson

Rep.

Term ends

01/01/2027

Commissioner Nick Myers

Rep.

Term ends

01/01/2027

Commissioner Anna Tovar

Dem.

Term ends

01/01/2025

Commissioner Lea Márquez Peterson

Rep.

Term ends

01/01/2025

Executive Director Doug Clark

CALIFORNIA

Five members, appointed to six-year staggered terms by Governor and confirmed by Senate.

President Alice Bushing Reynolds

Dem.

Term ends

12/31/2026

Commissioner Genevieve A. Shiroma

Dem.

Term ends

12/31/2024

Commissioner Darcie Houck

Dem.

Term ends

12/31/2026

Commissioner John Reynolds

Dem.

Term ends

12/31/2028

Commissioner Karen Douglas

Dem.

Term ends

12/31/2028

Executive Director Rachel Peterson

NEVADA

Three members, appointed to four-year staggered terms by Governor; no confirmation required.

Chairwoman Hayley Williamson

Dem.

Term ends

04/29/2023

Commissioner Tammy Cordova

N.P.

Term ends

06/21/2024

Commissioner C.J. Manthe

Rep.

Term ends

09/30/2025

Executive Director Stephanie Mullen

FERC

Up to five members, appointed to five-year staggered terms by President and confirmed by U.S. Senate.

Chairman Willie L. Phillips

Dem.

Term ends

06/30/2026

Commissioner James Danly

Rep.

Term ends

06/30/2023

Commissioner Allison Clements

Dem.

Term ends

06/30/2024

Commissioner Mark C. Christie

Rep.

Term ends

06/30/2025

Secretary Kimberly D. Bose


NATURAL GAS DISTRIBUTION SEGMENT
SUMMARY OF KEY REGULATORY FILINGS

					ADDITIONAL	ADDITIONAL	PERCENT	OVERALL	RATE OF
					MARGIN	MARGIN	AUTHORIZED	RATE OF	RETURN ON	COMMON
	FILING	TEST	FILING	EFFECTIVE	REQUESTED	AUTHORIZED	OF REQUESTED	RETURN	COMMON EQUITY	EQUITY
JURISDICTION	TYPE [1]	PERIOD	DATE	DATE	($mm)	($mm) [2]	AMOUNTS	GRANTED	GRANTED	RATIO
NEVADA
Docket No. 20-05028 (SNV) [3]	VIER		05/27/19	01/01/21	(1.8)	(1.8)	100	6.52	9.25	49.26
Docket No. 21-09034 (SNV)	GIR		09/30/21	01/01/22	(1.7)	(1.7)	100	6.52	9.25	49.26
Docket No. 21-09034 (NNV)	GIR		09/30/21	01/01/22	(0.2)	(0.2)	100	6.75	9.25	49.26
Docket No. 21-09001 (SNV) [4]	GRC	05/31/21	09/01/21	04/01/22	21.3	12.8	60	6.30	9.40	50.00
Docket No. 21-09001 (NNV) [4]	GRC	05/31/21	09/01/21	04/01/22	2.5	1.3	53	6.56	9.40	50.00
Docket No. 22-11017 (SNV) [3]	VIER		11/15/22	TBD	1.1	TBD	TBD	TBD	TBD	TBD

ARIZONA
Docket No. G-01551A-16-0107	COYL		02/27/19	11/07/19	3.2	0.0	50	7.42	9.50	51.70
Docket No. G-01551A-16-0107	VSP		02/27/19	11/07/19	9.5	0.0	30	5.71	9.50	51.70
Docket No. G-01551A-19-0055	GRC	01/31/19	05/01/19	01/01/21	80.7	36.8	46	7.03	9.10	51.10
Docket No. G-01551A-19-0055	COYL		05/28/21	11/09/21	13.7	13.7	100	7.42	9.50	51.70
Docket No. G-01551A-19-0055 [5]	VSP		05/28/21	11/09/21	59.9	59.9	100	5.71	9.50	51.70
Docket No. G-01551A-19-0055	COYL		02/28/22	06/01/22	3.4	3.4	100	7.03	9.10	51.10
Docket No. G-01551A-21-0368	GRC	08/31/21	12/03/21	02/01/23	90.7	54.28	60	6.73	9.30	50.00
Docket No. G-01551A-21-0368	COYL		02/28/23	TBD	4.3	TBD	TBD	TBD	TBD	TBD

CALIFORNIA
Application 19-08-015 (SCA)	GRC	12/31/21	08/30/19	04/01/21	6.8	3.0	44	7.11	10.00	52.00
Application 19-08-015 (NCA/SLT)	GRC	12/31/21	08/30/19	04/01/21	6.0	3.4	57	7.44	10.00	52.00
Advice Letter No. 1117 (SCA)	Attrition		11/27/19	01/01/20	2.1	2.1	100	6.83	10.10	55.00
Advice Letter No. 1117 (NCA/SLT)	Attrition		11/27/19	01/01/20	0.8	0.8	100	8.18	10.10	55.00
Advice Letter No. 1191 (SCA)	Attrition		11/24/21	01/01/22	2.2	2.2	100	7.11	10.00	52.00
Advice Letter No. 1191 (NCA/SLT)	Attrition		11/24/21	01/01/22	0.9	0.9	100	7.44	10.00	52.00
Advice Letter No. 1195 (NCA)	Attrition		12/22/21	02/01/22	0.1	0.1	100	7.44	10.00	52.00
Advice Letter No. 1235 (SCA)	Attrition		11/24/21	01/01/23	1.9	1.9	100	7.11	10.00	52.00
Advice Letter No. 1235 (NCA/SLT)	Attrition		11/24/21	01/01/23	0.3	0.3	100	7.44	10.00	52.00
Advice Letter No. 1241 (NCA)	Attrition		12/22/21	02/01/23	1.3	1.3	100	7.44	10.00	52.00

FERC
Docket No. RP14-540	GRC	08/31/14	02/28/14	09/01/14	9.0	2.4	27	[6]	[6]	[6]
Docket No. CP14-509 (2015 Elko Expansion)	Expansion		06/27/14	01/06/16	6.0	6.0	100	[7]	[7]	[7]
Docket No. CP17-471 (2018 Expansion)	Expansion		07/05/17	11/26/18	3.3	3.3	100	[7]	[7]	[7]
Docket No. RP19-1291	GRC	11/30/19	05/31/19	12/01/19	7.1	(0.7)	NM	[8]	[8]	[8]

[1] GRC = General Rate Case; VIER = Variable Interest Expense Recovery Mechanism; GIR=Gas Infrastructure Replacement; COYL=Customer Owned Yard Lines;
Attrition = Annual Attrition Filing and Automatic Trigger Mechanism for Cost of Capital; VSP = Vintage Steel Pipe.
[2] Authorized amounts do not include the effect of lower depreciation rates, which contribute to an increase in operating income.
[3] Represents the net change in margin resulting from the Average Variable Interest Rate (AVIR).
[4] Additional margin requested reflects amounts requested at certification, excluding $4.9M associated with non cost-of-service COVID regulatory asset and contract revenues adjustment.
[5] Effective 11/1/2021, rate to recover revenue begins 3/1/2022 with recovery over 3 years.
[6] Stipulation - Not Identified in Order. Decision authorized a pre-tax rate of return of 11.50 percent.
[7] Stipulation in Docket No. RP14-540 authorized a pre-tax rate of return of 11.50 percent.
[8] Stipulation - Not Identified in Order. Stipulation authorized pre-tax rate of return of 9.90 percent.


SUMMARY OPERATING RESULTS	YEAR ENDED DECEMBER 31,
(In thousands, except per share amounts)	2022		2021		2020		2019		2018		2017		2016		2015		2014		2013
Results of Consolidated Operations
Contribution to net income - natural gas distribution	$	154,380	$	187,135	$	159,118	$	163,171	$	138,842	$	156,818	$	119,423	$	111,625	$	116,872	$	124,169
Contribution to net income - utility infrastructure services*	2,065		40,420		74,862		52,404		44,977		38,360		32,618		26,692		24,254		21,151
Contribution to net income (loss) - pipeline and storage***	(283,733)		—		—		—		—		—		—		—		—		—
Contribution to net income (loss) - corporate and administrative*	(76,002)		(26,776)		(1,656)		(1,639)		(1,542)		(1,337)		—		—		—		—
Net income (loss)*	$	(203,290)	$	200,779	$	232,324	$	213,936	$	182,277	$	193,841	$	152,041	$	138,317	$	141,126	$	145,320

Basic earnings (loss) per share	$	(3.10)	$	3.39	$	4.15	$	3.94	$	3.69	$	4.04	$	3.20	$	2.94	$	3.04	$	3.14
Diluted earnings (loss) per share	$	(3.10)	$	3.39	$	4.14	$	3.94	$	3.68	$	4.04	$	3.18	$	2.92	$	3.01	$	3.11

Average common shares	65,558		59,145		55,998		54,245		49,419		47,965		47,469		46,992		46,494		46,318
Average shares (assuming dilution)	65,558		59,259		56,076		54,312		49,476		47,991		47,814		47,383		46,944		46,758

Results of Natural Gas Distribution
Gas operating revenues	$	1,935,069	$	1,521,790	$	1,350,585	$	1,368,939	$	1,357,728	$	1,302,308	$	1,321,412	$	1,454,639	$	1,382,087	$	1,300,154
Net cost of gas sold	789,216		430,907		342,837		385,164		419,388		355,045		397,121		563,809		505,356		436,001
Operating margin	1,145,853		1,090,883		1,007,748		983,775		938,340		947,263		924,291		890,830		876,731		864,153
Operations and maintenance expense **	491,928		438,550		406,382		422,174		404,813		391,321		381,964		369,832		368,313		361,422
Depreciation and amortization	263,043		253,398		235,295		215,620		191,816		201,922		233,463		213,455		204,144		193,848
Taxes other than income taxes	83,197		80,343		63,460		62,328		59,898		57,946		52,376		49,393		47,252		45,551
Operating income	307,685		318,592		302,611		283,653		281,813		296,074		256,488		258,150		257,022		263,332
Other income (deductions)**	(6,884)		(4,559)		(6,590)		9,517		(17,240)		(6,388)		(11,484)		(21,075)		(8,254)		(11,231)
Net interest deductions	115,880		97,560		101,148		95,026		81,740		69,733		66,997		64,095		68,299		62,555

Income before income taxes	184,921		216,473		194,873		198,144		182,833		219,953		178,007		172,980		180,469		189,546
Income tax expense	30,541		29,338		35,755		34,973		43,991		63,135		58,584		61,355		63,597		65,377
Contribution to consolidated net income	$	154,380	$	187,135	$	159,118	$	163,171	$	138,842	$	156,818	$	119,423	$	111,625	$	116,872	$	124,169

*Reflects transaction-related deal and financing costs associated with MountainWest and Riggs Distler acquisitions in 2021, as well as stockholder activism/settlement and strategic review costs in 2022. To a lesser extent, acquisition and related financing costs were reflected in utility infrastructure services results in earlier periods.

**To reflect the impacts of the Company's 2018 adoption of the Financial Accounting Standards Board ("FASB") update, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost," non-service components of these costs have been reclassified from Operations and maintenance expense to Other income (deductions) for 2013-2017, with no impact to earnings overall.

***Reflects results at MountainWest including impairment loss.


SUMMARY CONSOLIDATED BALANCE SHEET	AT DECEMBER 31,
(In thousands)	2022*		2021**		2020		2019		2018		2017		2016		2015		2014		2013
ASSETS
Net regulated operations plant	$	7,024,500	$	7,594,022	$	6,176,081	$	5,685,197	$	5,093,238	$	4,523,650	$	4,131,971	$	3,891,085	$	3,658,383	$	3,486,108
Other property and investments	1,281,172		1,316,479		834,245		784,173		623,551		428,180		342,343		313,531		326,743		260,871
Restricted cash	—		—		—		—		—		—		—		—		821		—
Current assets	3,707,662		1,614,767		871,013		859,856		839,769		657,032		533,307		558,174		606,611		494,672
Noncurrent assets	1,183,280		2,239,989		854,514		840,822		801,171		628,204		573,505		595,895		615,739		323,523
Total assets	$	13,196,614	$	12,765,257	$	8,735,853	$	8,170,048	$	7,357,729	$	6,237,066	$	5,581,126	$	5,358,685	$	5,208,297	$	4,565,174
CAPITALIZATION
Common stock equity	$	2,355,932	$	1,886,268	$	1,667,978	$	1,523,574	$	1,360,425	$	1,005,052	$	952,235	$	945,455	$	899,534	$	888,507
Accumulated other comprehensive income (loss), net	(44,242)		(46,761)		(61,003)		(56,732)		(52,668)		(47,682)		(48,008)		(50,268)		(50,175)		(41,698)
Retained earnings	747,069		1,114,313		1,067,978		1,039,072		944,285		857,398		759,263		699,221		639,164		567,714
Noncontrolling interests	—		—		—		—		(452)		(2,365)		(2,217)		(2,083)		(2,257)		(2,128)

Redeemable noncontrolling interests	159,349		196,717		165,716		84,542		81,831		—		22,590		16,108		20,042		—
Long-term debt, less current maturities	4,403,299		4,115,684		2,732,200		2,300,482		2,107,258		1,798,576		1,549,983		1,551,204		1,631,374		1,381,327
Total capitalization	$	7,621,407	$	7,266,221	$	5,572,869	$	4,890,938	$	4,440,679	$	3,610,979	$	3,233,846	$	3,159,637	$	3,137,682	$	2,793,722
LIABILITIES
Current maturities of long-term debt	$	44,557	$	297,324	$	40,433	$	163,512	$	33,060	$	25,346	$	50,101	$	19,475	$	19,192	$	11,105
Current liabilities	3,378,406		2,814,725		871,534		916,349		905,585		790,535		578,274		515,570		450,925		423,059
Deferred income taxes and investment tax credits	682,067		768,868		647,453		599,840		529,201		476,960		840,653		769,445		723,688		674,411
Other deferred credits and other long-term liabilities	1,470,177		1,618,119		1,603,564		1,599,409		1,449,204		1,333,246		878,252		894,558		876,810		662,877
Total liabilities	5,575,207		5,499,036		3,162,984		3,279,110		2,917,050		2,626,087		2,347,280		2,199,048		2,070,615		1,771,452
Total capitalization and liabilities	$	13,196,614	$	12,765,257	$	8,735,853	$	8,170,048	$	7,357,729	$	6,237,066	$	5,581,126	$	5,358,685	$	5,208,297	$	4,565,174
Reflects MountainWest and related companies' assets/liabilities overall classified as current assets and liabilities held for sale. A Purchase and Sale Agreement was entered on December 14, 2022, and the sale closed on February 14, 2023. *Reflects the acquisition of MountainWest and related entities, and the parent company of Riggs Distler, Inc., which closed on December 31, 2021 and August 27, 2021, respectively. Other smaller acquisitions are reflected, where relevant, in earlier periods.

NATURAL GAS DISTRIBUTION SEGMENT CASH FLOWS	YEAR ENDED DECEMBER 31,
(In thousands)	2022		2021		2020		2019		2018		2017		2016		2015		2014		2013
From operating activities	$	284,403	$	25,245	$	424,061	$	367,794	$	382,502	$	309,216	$	507,224	$	497,500	$	288,534	$	265,290
From investing activities	(654,708)		(586,042)		(677,412)		(759,842)		(669,392)		(557,384)		(446,238)		(416,727)		(328,645)		(304,189)
From financing activities	383,437		558,418		253,932		400,575		280,906		267,090		(63,339)		(74,159)		23,413		44,947
Net change in cash	$	13,132	$	(2,379)	$	581	$	8,527	$	(5,984)	$	18,922	$	(2,353)	$	6,614	$	(16,698)	$	6,048


NATURAL GAS DISTRIBUTION SEGMENT
REGULATED OPERATIONS PLANT	AT DECEMBER 31,
(In thousands)	2022		2021		2020		2019		2018		2017		2016		2015		2014		2013
Distribution	$	8,039,793	$	7,506,489	$	7,078,656	$	6,581,043	$	6,049,380	$	5,600,769	$	5,198,531	$	4,935,730	$	4,655,640	$	4,410,598
General	505,109		496,643		515,879		467,274		416,643		396,252		382,084		365,865		356,072		324,490
Transmission	399,357		397,590		400,657		391,864		386,159		363,396		349,981		312,996		312,300		313,306
Intangible	392,459		383,307		273,811		259,097		243,694		232,566		226,754		205,782		198,457		171,193
Construction work in progress	244,750		183,485		211,429		185,026		193,028		125,248		111,177		119,805		74,332		101,413
Other	117,189		117,546		114,997		113,943		38,363		36,661		36,410		34,914		34,680		33,612
Accumulated depreciation & amortization	(2,674,157)		(2,538,508)		(2,419,348)		(2,313,050)		(2,234,029)		(2,231,242)		(2,172,966)		(2,084,007)		(1,973,098)		(1,868,504)
Net regulated operations plant	$	7,024,500	$	6,546,552	$	6,176,081	$	5,685,197	$	5,093,238	$	4,523,650	$	4,131,971	$	3,891,085	$	3,658,383	$	3,486,108

OPERATIONS & MAINTENANCE EXPENSES	YEAR ENDED DECEMBER 31,
(In thousands)	2022		2021		2020		2019		2018		2017		2016		2015		2014		2013
Distribution	$	212,077	$	184,674	$	175,408	$	184,193	$	185,176	$	186,860	$	188,064	$	181,249	$	170,377	$	174,129
Administrative and general*	180,858		171,390		162,659		167,553		151,157		135,569		123,246		114,501		122,532		107,874
Customer accounts	73,598		60,050		48,466		49,057		47,719		48,937		51,024		51,071		50,200		53,809
Transmission	17,188		14,054		12,599		15,938		15,020		13,744		13,666		14,779		15,792		15,864
Production and storage expenses	7,513		7,247		6,642		4,869		4,885		5,256		4,889		5,052		4,960		5,054
Customer service and informational	654		1,076		575		516		827		935		1,050		3,165		4,440		4,677
Sales	40		59		33		48		29		20		25		15		12		15
Total operations and maintenance expenses*	$	491,928	$	438,550	$	406,382	$	422,174	$	404,813	$	391,321	$	381,964	$	369,832	$	368,313	$	361,422
* To reflect the impacts of the Company's 2018 adoption of the update to FASB Topic 715, all periods presented exclude non-service components of net periodic pension and other postretirement benefit cost. For 2013-2017, these costs have been reclassified from Administrative and general expense (as a practical expedient), as if initially reflected there, to Other income (deductions). Non-service cost in periods prior to 2018 were actually initially recognized in a number of categories of expense, and to a more limited extent, in regulated operations plant on the balance sheet, through an overhead loading process.


NATURAL GAS DISTRIBUTION SEGMENT
	AT DECEMBER 31,
CUSTOMERS BY CLASS	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
Residential	2,109,902			2,072,889			2,039,226			1,997,418			1,964,355			1,932,332			1,902,227			1,874,852			1,849,555			1,824,008
Small commercial	84,431			83,242			82,036			81,603			80,676			80,047			79,437			78,833			78,230			77,848
Large commercial	976			977			990			987			992			1,016			1,042			1,043			1,086			1,076
Industrial / Other	392			373			342			336			329			332			318			318			341			333
Transportation	1,069			1,038			989			958			955			929			905			879			833			812
Total customers	2,196,770			2,158,519			2,123,583			2,081,302			2,047,307			2,014,656			1,983,929			1,955,925			1,930,045			1,904,077
Annual customer growth rate	1.8		%	1.7		%	1.8		%	1.7		%	1.6		%	1.5		%	1.4		%	1.3		%	1.4		%	1.5		%

SYSTEM THROUGHPUT BY CLASS	YEAR ENDED DECEMBER 31,
(In thousands of dekatherms)	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
Residential	81,392			76,811			80,068			81,839			69,702			67,427			68,463			65,542			61,738			74,133
Small commercial	33,499			31,051			29,316			33,322			30,534			29,767			29,452			28,512			27,658			29,804
Large commercial	10,004			9,490			9,124			9,933			9,255			9,256			9,095			9,228			9,439			10,276
Industrial / Other	5,005			5,104			5,316			4,255			3,775			3,382			3,028			3,097			3,238			5,021
Transportation	92,519			94,955			98,328			100,799			105,055			97,441			97,056			103,571			90,669			103,792
Total system throughput	222,419			217,411			222,152			230,148			218,321			207,273			207,094			209,950			192,742			223,026


OPERATING MARGIN BY CLASS*	YEAR ENDED DECEMBER 31,
(In thousands)	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
Residential	$	808,910		$	774,716		$	717,581		$	686,886		$	647,209		$	657,574		$	640,157		$	623,828		$	612,641		$	601,076
Small commercial	162,692			153,492			138,272			142,798			145,250			144,096			142,490			136,344			136,272			133,474
Large commercial	29,303			26,021			23,618			23,138			22,822			22,232			22,450			22,249			23,412			25,171
Industrial / Other	14,889			14,703			10,293			8,464			8,251			7,495			7,177			6,937			6,477			7,735
Transportation	130,059			121,951			117,984			122,489			114,808			115,866			112,017			101,472			97,929			96,697
Total operating margin	$	1,145,853		$	1,090,883		$	1,007,748		$	983,775		$	938,340		$	947,263		$	924,291		$	890,830		$	876,731		$	864,153
*Includes allocations of miscellaneous, unbilled, and other operating revenues.



MARKET PRICE PER SHARE	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
High	$	95.62		$	73.54		$	81.62		$	92.94		$	85.97		$	86.87		$	79.58		$	63.68		$	64.20		$	56.03
Low	59.51			57.00			45.68			73.27			62.54			72.32			53.51			50.78			47.21			42.02
Close [1]	61.88			70.05			60.75			75.97			76.50			80.48			76.62			55.16			61.81			55.91

	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
Common shares outstanding (in thousands) [1]	67,119			60,422			57,193			55,007			53,026			48,090			47,482			47,378			46,523			46,356
Dividend yield [1]	4.0		%	3.4		%	3.8		%	2.9		%	2.7		%	2.5		%	2.3		%	2.9		%	2.4		%	2.4		%
Dividends declared per share [2]	$	2.48		$	2.38		$	2.28		$	2.18		$	2.08		$	1.98		$	1.80		$	1.62		$	1.46		$	1.32
Price / Earnings ratio [1,5]	(19.96)			20.66			14.64			19.28			20.73			19.92			23.94			18.76			20.33			17.81
Return on equity - total company [2,5]	(6.2)		%	7.1		%	9.0		%	9.0		%	9.3		%	11.2		%	9.3		%	8.9		%	9.7		%	10.6		%
Return on equity - gas distribution segment only [2]	6.0		%	7.8		%	7.5		%	8.5		%	8.2		%	10.0		%	7.7		%	7.6		%	8.5		%	9.6		%
Book value per share [1]	$	45.57		$	48.89		$	46.77		$	45.56		$	42.63		$	37.74		$	35.03		$	33.65		$	32.03		$	30.51

NATURAL GAS DISTRIBUTION SEGMENT
	YEAR ENDED DECEMBER 31,
HEATING DEGREE DAY COMPARISON	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
Actual	1,835			1,627			1,767			1,917			1,531			1,478			1,613			1,512			1,416			1,918
Ten-year average	1,645			1,637			1,676			1,701			1,694			1,733			1,771			1,792			1,816			1,876

	2022			2021			2020			2019			2018			2017			2016			2015			2014			2013
Number of gas distribution segment employees [1]	2,351			2,286			2,272			2,295			2,312			2,285			2,247			2,219			2,196			2,220
Customers / Employee [1]	934			945			935			907			886			882			883			881			879			858
Operations & maintenance expense / Customer [2,3,6]	$	228		$	212		$	204		$	213		$	211		$	207		$	206		$	204		$	202		$	206
Weighted average cost of gas (per therm) [2,4]	$	0.68		$	0.64		$	0.28		$	0.36		$	0.31		$	0.44		$	0.37		$	0.44		$	0.55		$	0.42
Construction expenditures (in thousands) [2]	$	683,131		$	601,983		$	692,216		$	778,748		$	682,869		$	560,448		$	457,120		$	438,289		$	350,025		$	314,578
[1] At December 31,
[2] For the year ended December 31,
[3] Includes non-service components of net periodic pension and other postretirement benefit cost in calculation.
[4] Gas cost in 2021 includes impacts of the significant price runup during Winter Storm Uri. Gas cost in 2022 spiked due to numerous market forces including historically low storage levels, unexpected upstream pipeline maintenance events, and cold weather conditions across the western region in the latter part of 2022.
[5] In 2022, includes the impact of a goodwill impairment and cost to sell MountainWest-related entities.
[6] As throughout this report, information for the natural gas distribution segment includes information (to the extent relevant) of the interstate pipeline operations of its subsidiaries, having a very small number of customers in relation to expenses incurred in related operations.


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


		DEKATHERMS	OPERATING		DEKATHERMS	OPERATING
DIVISION/CUSTOMER TYPE		TRANSPORTED	MARGIN		TRANSPORTED	MARGIN

		Twelve Months Ended 12-31-22			Twelve Months Ended 12-31-21
Southern Nevada
	Commercial	9,271,761	$	9,982,123	8,699,485	$	9,868,220
	Industrial	5,509,169	3,987,516		5,248,141	4,098,538
	Power Generation	33,544,695	16,207,518		38,590,851	15,543,361
Southern Nevada Totals		48,325,625	$	30,177,157	52,538,477	$	29,510,119



Northern Nevada (1)
	Commercial	1,796,983	$	1,663,135	1,738,886	$	1,765,041
	Industrial	7,098,616	3,460,869		7,485,521	3,940,960
	Power Generation	7,220,549	3,927,002		6,559,848	3,539,804
	Resale	9,654,227	29,945,701		9,099,326	30,338,023
Northern Nevada Totals		25,770,375	$	38,996,707	24,883,581	$	39,583,828

(1)	Includes transportation customers of Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation.


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


		DEKATHERMS	OPERATING		DEKATHERMS	OPERATING
DIVISION/CUSTOMER TYPE		TRANSPORTED	MARGIN		TRANSPORTED	MARGIN

		Twelve Months Ended 12-31-22			Twelve Months Ended 12-31-21
Southern Arizona
	Commercial	1,663,227	$	4,819,498	1,533,975	$	4,136,228
	Industrial	1,004,626	1,930,588		952,717	2,389,799
	Power Generation	1,632,235	4,187,566		1,613,186	3,626,466
	Irrigation	455,344	1,606,239		505,717	1,809,212
Southern Arizona Totals		4,755,432	$	12,543,891	4,605,595	$	11,961,705



Central Arizona
	Commercial	5,294,661	$	15,321,824	4,921,949	$	13,204,737
	Industrial	5,363,545	15,844,208		4,969,795	12,613,073
	Power Generation	1,205,797	1,461,189		1,160,352	1,406,969
	Irrigation	1,438,776	3,431,656		1,489,147	3,092,292
Central Arizona Totals		13,302,779	$	36,058,877	12,541,243	$	30,317,071


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


		DEKATHERMS	OPERATING		DEKATHERMS	OPERATING
DIVISION/CUSTOMER TYPE		TRANSPORTED	MARGIN		TRANSPORTED	MARGIN

		Twelve Months Ended 12-31-22			Twelve Months Ended 12-31-21
Southern California
	Commercial	346,293	$	1,758,785	352,690	$	1,206,169
	Industrial (1)	—	—		(1,761)	32,094
	Power Generation (1)	18,230	146,750		35,375	207,589
Southern California Totals		364,523	$	1,905,535	386,304	$	1,445,852



Total Company (2)
	Commercial	18,372,925	$	33,545,365	17,246,985	$	30,180,395
	Industrial	18,975,956	25,223,181		18,654,413	23,074,464
	Power Generation	43,621,506	25,930,025		47,959,612	24,324,189
	Resale	9,654,227	29,945,701		9,099,326	30,338,023
	Irrigation	1,894,120	5,037,895		1,994,864	4,901,504
TOTAL COMPANY		92,518,734	$	119,682,167	94,955,200	$	112,818,575

(1)	California Industrial transportation customer, moving to sales service at the end of 2020, had a volumetric imbalance on Southwest’s system at that time, which it traded in January 2021. Additionally, multiple California Power Generation customers moved to sales service during 2021.
(2)	Includes transportation customers of Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation.