SEC Filing | Southwest Gas Holdings

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swx-20220513

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 13, 2022

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

Preferred Stock Purchase Rights

N/A

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 13, 2022 Southwest Gas Holdings, Inc. (the “Company”) released summary statistical information for each of the ten years in the period ended December 31, 2021. 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 13, 2022						/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, 2021 released on May 1 3, 202 2 .

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

March 2022

ARIZONA

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

Chairwoman Lea Márquez Peterson

Rep.

Term ends

01/01/2025

Commissioner Sandra Kennedy

Dem.

Term ends

01/01/2023

Commissioner Justin Olson

Rep.

Term ends

01/01/2023

Commissioner Anna Tovar

Dem.

Term ends

01/01/2025

Commissioner Jim O’Connor

Rep.

Term ends

01/01/2025

Executive Director Matt Neubert

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 John Reynolds

Dem.

Term ends

12/31/2022

Commissioner Clifford L. Rechtschaffen

Dem.

Term ends

12/31/2022

Commissioner Genevieve A. Shiroma

Dem.

Term ends

12/31/2024

Commissioner Darcie Houck

Dem.

Term ends

12/31/2026

Executive Director Rachel Peterson

NEVADA

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

Chair Hayley Williamson

Dem.

Term ends

04/29/2023

Commissioner C.J. Manthe

Rep.

Term ends

09/30/2025

Commissioner Tammy Cordova

N.P.

Term ends

06/21/2024

Executive Director Stephanie Mullen

FERC

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

Chairman Richard Glick

Dem.

Term ends

06/30/2022

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

Commissioner Willie L. Phillips

Dem.

Term ends

06/30/2026

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. 20-02023 (NNV)	GRC	11/30/19	02/26/20	10/07/20	2.7	0.6	22	6.75	9.25	49.26
Docket No. 20-02023 (SNV)	GRC	11/30/19	02/26/20	10/07/20	35.8	22.7	63	6.52	9.25	49.26
Docket No. 20-05028 (SNV) [3]	VIER		05/27/20	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

ARIZONA
Docket No. G-01551A-16-0107	GRC	11/30/15	05/02/16	04/01/17	32.0	16.0	50	7.42	9.50	51.70
Docket No. G-01551A-16-0107	COYL		02/28/18	09/01/18	2.4	1.7	71	7.42	9.50	51.70
Docket No. G-01551A-16-0107	VSP		02/28/18	09/01/18	3.0	2.4	80	5.71	9.50	51.70
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

CALIFORNIA
Advice Letter No. 1058 (SCA)	Attrition		11/30/17	01/01/18	2.0	2.0	100	6.83	10.10	55.00
Advice Letter No. 1058 (NCA/SLT)	Attrition		11/30/17	01/01/18	0.8	0.8	100	8.18	10.10	55.00
Advice Letter No. 1086 (SCA)	Attrition		11/30/18	01/01/19	2.0	2.0	100	6.83	10.10	55.00
Advice Letter No. 1086 (NCA/SLT)	Attrition		11/30/18	01/01/19	0.8	0.8	100	8.18	10.10	55.00
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

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. Additional Margin Authorized excludes $4.9MM 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)	2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
Results of Consolidated Operations
Contribution to net income - natural gas distribution	$	187,135	$	159,118	$	163,171	$	138,842	$	156,818	$	119,423	$	111,625	$	116,872	$	124,169	$	116,619
Contribution to net income - utility infrastructure services*	40,420		74,862		52,404		44,977		38,360		32,618		26,692		24,254		21,151		16,712
Contribution to net income - corporate and administrative*	(26,776)		(1,656)		(1,639)		(1,542)		(1,337)		—		—		—		—		—
Net income *	$	200,779	$	232,324	$	213,936	$	182,277	$	193,841	$	152,041	$	138,317	$	141,126	$	145,320	$	133,331

Basic earnings per share	$	3.39	$	4.15	$	3.94	$	3.69	$	4.04	$	3.20	$	2.94	$	3.04	$	3.14	$	2.89
Diluted earnings per share	$	3.39	$	4.14	$	3.94	$	3.68	$	4.04	$	3.18	$	2.92	$	3.01	$	3.11	$	2.86

Average common shares	59,145		55,998		54,245		49,419		47,965		47,469		46,992		46,494		46,318		46,115
Average shares (assuming dilution)	59,259		56,076		54,312		49,476		47,991		47,814		47,383		46,944		46,758		46,555

Results of Natural Gas Distribution
Gas operating revenues	$	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	$	1,321,728
Net cost of gas sold	430,907		342,837		385,164		419,388		355,045		397,121		563,809		505,356		436,001		479,602
Operating margin	1,090,883		1,007,748		983,775		938,340		947,263		924,291		890,830		876,731		864,153		842,126
Operations and maintenance expense **	438,550		406,382		422,174		404,813		391,321		381,964		369,832		368,313		361,422		349,257
Depreciation and amortization	253,398		235,295		215,620		191,816		201,922		233,463		213,455		204,144		193,848		186,035
Taxes other than income taxes	80,343		63,460		62,328		59,898		57,946		52,376		49,393		47,252		45,551		41,728
Operating income	318,592		302,611		283,653		281,813		296,074		256,488		258,150		257,022		263,332		265,106
Other income (deductions)**	(4,559)		(6,590)		9,517		(17,240)		(6,388)		(11,484)		(21,075)		(8,254)		(11,231)		(16,557)
Net interest deductions	97,560		101,148		95,026		81,740		69,733		66,997		64,095		68,299		62,555		66,957

Income before income taxes	216,473		194,873		198,144		182,833		219,953		178,007		172,980		180,469		189,546		181,592
Income tax expense	29,338		35,755		34,973		43,991		63,135		58,584		61,355		63,597		65,377		64,973
Contribution to consolidated net income	$	187,135	$	159,118	$	163,171	$	138,842	$	156,818	$	119,423	$	111,625	$	116,872	$	124,169	$	116,619

* Reflects acquisition-related deal and financing costs associated with Questar Pipelines and Riggs Distler acquisitions in 2021.

** 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 this line item (as a practical expedient) to Other income (deductions) for 2012-2017, with no impact to earnings overall.


SUMMARY CONSOLIDATED BALANCE SHEET	AT DECEMBER 31,
(In thousands)	2021*		2020		2019		2018		2017		2016		2015		2014		2013		2012
ASSETS
Net regulated operations plant	$	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	$	3,343,794
Other property and investments	1,316,479		834,245		784,173		623,551		428,180		342,343		313,531		326,743		260,871		242,096
Restricted cash	—		—		—		—		—		—		—		821		—		—
Current assets	1,614,767		871,013		859,856		839,769		657,032		533,307		558,174		606,611		494,672		458,417
Noncurrent assets	2,239,989		854,514		840,822		801,171		628,204		573,505		595,895		615,739		323,523		443,750
Total assets	$	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	$	4,488,057
CAPITALIZATION
Common stock equity	$	1,886,268	$	1,667,978	$	1,523,574	$	1,360,425	$	1,005,052	$	952,235	$	945,455	$	899,534	$	888,507	$	876,555
Accumulated other comprehensive income (loss), net	(46,761)		(61,003)		(56,732)		(52,668)		(47,682)		(48,008)		(50,268)		(50,175)		(41,698)		(50,745)
Retained earnings	1,114,313		1,067,978		1,039,072		944,285		857,398		759,263		699,221		639,164		567,714		484,369
Noncontrolling interests	—		—		—		(452)		(2,365)		(2,217)		(2,083)		(2,257)		(2,128)		(1,681)

Redeemable noncontrolling interests	196,717		165,716		84,542		81,831		—		22,590		16,108		20,042		—		—
Long-term debt, less current maturities	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		1,268,373
Total capitalization	$	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	$	2,576,871
LIABILITIES
Current maturities of long-term debt	$	297,324	$	40,433	$	163,512	$	33,060	$	25,346	$	50,101	$	19,475	$	19,192	$	11,105	$	50,137
Current liabilities	2,814,725		871,534		916,349		905,585		790,535		578,274		515,570		450,925		423,059		484,992
Deferred income taxes and investment tax credits	768,868		647,453		599,840		529,201		476,960		840,653		769,445		723,688		674,411		616,184
Other deferred credits and other long-term liabilities	1,618,119		1,603,564		1,599,409		1,449,204		1,333,246		878,252		894,558		876,810		662,877		759,873
Total liabilities	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		1,911,186
Total capitalization and liabilities	$	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	$	4,488,057
*Reflects the acquisition of Dominion Energy Questar Pipeline, LLC 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)	2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
From operating activities	$	25,245	$	424,061	$	367,794	$	382,502	$	309,216	$	507,224	$	497,500	$	288,534	$	265,290	$	344,441
From investing activities	(586,042)		(677,412)		(759,842)		(669,392)		(557,384)		(446,238)		(416,727)		(328,645)		(304,189)		(296,886)
From financing activities	558,418		253,932		400,575		280,906		267,090		(63,339)		(74,159)		23,413		44,947		(43,453)
Net change in cash	$	(2,379)	$	581	$	8,527	$	(5,984)	$	18,922	$	(2,353)	$	6,614	$	(16,698)	$	6,048	$	4,102


NATURAL GAS DISTRIBUTION SEGMENT
REGULATED OPERATIONS PLANT	AT DECEMBER 31,
(In thousands)	2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
Distribution	$	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	$	4,224,560
General	496,643		515,879		467,274		416,643		396,252		382,084		365,865		356,072		324,490		310,936
Transmission	397,590		400,657		391,864		386,159		363,396		349,981		312,996		312,300		313,306		301,505
Intangible	383,307		273,811		259,097		243,694		232,566		226,754		205,782		198,457		171,193		150,396
Construction work in progress	183,485		211,429		185,026		193,028		125,248		111,177		119,805		74,332		101,413		74,178
Other	117,546		114,997		113,943		38,363		36,661		36,410		34,914		34,680		33,612		33,014
Accumulated depreciation & amortization	(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)		(1,750,795)
Net regulated operations plant	$	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	$	3,343,794

OPERATIONS & MAINTENANCE EXPENSES	YEAR ENDED DECEMBER 31,
(In thousands)	2021		2020		2019		2018		2017		2016		2015		2014		2013		2012
Distribution	$	184,674	$	175,408	$	184,193	$	185,176	$	186,860	$	188,064	$	181,249	$	170,377	$	174,129	$	166,356
Administrative and general*	171,390		162,659		167,553		151,157		135,569		123,246		114,501		122,532		107,874		104,152
Customer accounts	60,050		48,466		49,057		47,719		48,937		51,024		51,071		50,200		53,809		55,894
Transmission	14,054		12,599		15,938		15,020		13,744		13,666		14,779		15,792		15,864		14,207
Production and storage expenses	7,247		6,642		4,869		4,885		5,256		4,889		5,052		4,960		5,054		4,500
Customer service and informational	1,076		575		516		827		935		1,050		3,165		4,440		4,677		4,142
Sales	59		33		48		29		20		25		15		12		15		6
Total operations and maintenance expenses*	$	438,550	$	406,382	$	422,174	$	404,813	$	391,321	$	381,964	$	369,832	$	368,313	$	361,422	$	349,257
* 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 post-retirement benefit cost. For 2012-2017, these costs have been reclassified from Administrative and general expense (as a practical expedient) to Other income (deductions). Non-service cost in periods prior to 2018 were 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	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
Residential	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			1,796,929
Small commercial	83,242			82,036			81,603			80,676			80,047			79,437			78,833			78,230			77,848			76,800
Large commercial	977			990			987			992			1,016			1,042			1,043			1,086			1,076			1,118
Industrial / Other	373			342			336			329			332			318			318			341			333			308
Transportation	1,038			989			958			955			929			905			879			833			812			739
Total customers*	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			1,875,894
Annual customer growth rate*	1.7		%	1.8		%	1.7		%	1.6		%	1.5		%	1.4		%	1.3		%	1.4		%	1.5		%	0.9		%

SYSTEM THROUGHPUT BY CLASS	YEAR ENDED DECEMBER 31,
(In thousands of dekatherms)	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
Residential	76,811			80,068			81,839			69,702			67,427			68,463			65,542			61,738			74,133			65,505
Small commercial	31,051			29,316			33,322			30,534			29,767			29,452			28,512			27,658			29,804			27,067
Large commercial	9,490			9,124			9,933			9,255			9,256			9,095			9,228			9,439			10,276			11,658
Industrial / Other	5,104			5,316			4,255			3,775			3,382			3,028			3,097			3,238			5,021			4,783
Transportation	94,955			98,328			100,799			105,055			97,441			97,056			103,571			90,669			103,792			99,809
Total system throughput	217,411			222,152			230,148			218,321			207,273			207,094			209,950			192,742			223,026			208,822


OPERATING MARGIN BY CLASS**	YEAR ENDED DECEMBER 31,
(In thousands)	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
Residential	$	774,716		$	717,581		$	686,886		$	647,209		$	657,574		$	640,157		$	623,828		$	612,641		$	601,076		$	582,619
Small commercial	153,492			138,272			142,798			145,250			144,096			142,490			136,344			136,272			133,474			132,964
Large commercial	26,021			23,618			23,138			22,822			22,232			22,450			22,249			23,412			25,171			26,421
Industrial / Other	14,703			10,293			8,464			8,251			7,495			7,177			6,937			6,477			7,735			8,706
Transportation	121,951			117,984			122,489			114,808			115,866			112,017			101,472			97,929			96,697			91,416
Total operating margin	$	1,090,883		$	1,007,748		$	983,775		$	938,340		$	947,263		$	924,291		$	890,830		$	876,731		$	864,153		$	842,126
*Growth rate for 2021 and 2020 each reflect approximately 37,000 new meter sets. Customer counts during these years were impacted by a moratorium on disconnections during the COVID-19 pandemic.
**Includes allocations of miscellaneous, unbilled, and other operating revenues.



MARKET PRICE PER SHARE	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
High	$	73.54		$	81.62		$	92.94		$	85.97		$	86.87		$	79.58		$	63.68		$	64.20		$	56.03		$	46.08
Low	57.00			45.68			73.27			62.54			72.32			53.51			50.78			47.21			42.02			39.01
Close [1]	70.05			60.75			75.97			76.50			80.48			76.62			55.16			61.81			55.91			42.41

	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
Common shares outstanding (in thousands) [1]	60,422			57,193			55,007			53,026			48,090			47,482			47,378			46,523			46,356			46,148
Dividend yield [1]	3.4		%	3.8		%	2.9		%	2.7		%	2.5		%	2.3		%	2.9		%	2.4		%	2.4		%	2.8		%
Dividends declared per share [2]	$	2.38		$	2.28		$	2.18		$	2.08		$	1.98		$	1.80		$	1.62		$	1.46		$	1.32		$	1.18
Price / Earnings ratio [1]	20.66			14.64			19.28			20.73			19.92			23.94			18.76			20.33			17.81			14.67
Return on equity - total company [2]	7.1		%	9.0		%	9.0		%	9.3		%	11.2		%	9.3		%	8.9		%	9.7		%	10.6		%	10.4		%
Return on equity - gas distribution segment only [2]	7.8		%	7.5		%	8.5		%	8.2		%	10.0		%	7.7		%	7.6		%	8.5		%	9.6		%	9.6		%
Book value per share [1]	$	48.89		$	46.77		$	45.56		$	42.63		$	37.74		$	35.03		$	33.65		$	32.03		$	30.51		$	28.39

NATURAL GAS DISTRIBUTION SEGMENT
	YEAR ENDED DECEMBER 31,
HEATING DEGREE DAY COMPARISON	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
Actual	1,627			1,767			1,917			1,531			1,478			1,613			1,512			1,416			1,918			1,740
Ten-year average	1,637			1,676			1,701			1,694			1,733			1,771			1,792			1,816			1,876			1,866

	2021			2020			2019			2018			2017			2016			2015			2014			2013			2012
Number of gas distribution segment employees [1]	2,286			2,272			2,295			2,312			2,285			2,247			2,219			2,196			2,220			2,245
Customers / Employee [1]	945			935			907			886			882			883			881			879			858			836
Operations & maintenance expense / Customer [2,3]	$	212		$	204		$	213		$	211		$	207		$	206		$	204		$	202		$	206		$	200
Weighted average cost of gas (per therm) [2,4]	$	0.64		$	0.28		$	0.36		$	0.31		$	0.44		$	0.37		$	0.44		$	0.55		$	0.42		$	0.42
Construction expenditures (in thousands) [2]	$	601,983		$	692,216		$	778,748		$	682,869		$	560,448		$	457,120		$	438,289		$	350,025		$	314,578		$	308,951
[1] At December 31,
[2] For the year ended December 31,
[3] Includes non-service components of net periodic pension and other post-retirement benefit cost in calculation.
[4] Gas cost in 2021 includes impacts of the significant price runup during Winter Storm Uri.


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


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

		Twelve Months Ended 12-31-21			Twelve Months Ended 12-31-20
Southern Nevada
	Commercial	8,699,485	$	9,868,220	7,577,377	$	11,233,406
	Industrial	5,248,141	4,098,538		5,476,590	5,132,201
	Power Generation	38,590,851	15,543,361		41,887,476	15,273,379
Southern Nevada Totals		52,538,477	$	29,510,119	54,941,443	$	31,638,986



Northern Nevada (1)
	Commercial	1,738,886	$	1,765,041	1,492,741	$	1,580,736
	Industrial	7,485,521	3,940,960		7,199,615	3,725,604
	Power Generation	6,559,848	3,539,804		8,374,128	4,258,335
	Resale	9,099,326	30,338,023		9,047,822	29,480,741
Northern Nevada Totals		24,883,581	$	39,583,828	26,114,306	$	39,045,416

(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 12-31-21			Twelve Months Ended 12-31-20
Southern Arizona
	Commercial	1,533,975	$	4,136,228	1,556,754	$	3,989,804
	Industrial	952,717	2,389,799		1,139,154	2,088,079
	Power Generation	1,613,186	3,626,466		1,636,466	3,567,043
	Irrigation	505,717	1,809,212		628,040	2,412,566
Southern Arizona Totals		4,605,595	$	11,961,705	4,960,414	$	12,057,492



Central Arizona
	Commercial	4,921,949	$	13,204,737	4,182,026	$	12,252,836
	Industrial	4,969,795	12,613,073		4,545,668	11,115,407
	Power Generation	1,160,352	1,406,969		1,119,034	1,224,993
	Irrigation	1,489,147	3,092,292		1,459,942	3,003,153
Central Arizona Totals		12,541,243	$	30,317,071	11,306,670	$	27,596,389


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


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

		Twelve Months Ended 12-31-21			Twelve Months Ended 12-31-20
Southern California
	Commercial	352,690	$	1,206,169	502,742	$	1,364,321
	Industrial (1)	(1,761)	32,094		105,033	190,970
	Power Generation (1)	35,375	207,589		397,000	554,786
Southern California Totals		386,304	$	1,445,852	1,004,775	$	2,110,077



Total Company (2)
	Commercial	17,246,985	$	30,180,395	15,311,640	$	30,421,103
	Industrial	18,654,413	23,074,464		18,466,060	22,252,261
	Power Generation	47,959,612	24,324,189		53,414,104	24,878,536
	Resale	9,099,326	30,338,023		9,047,822	29,480,741
	Irrigation	1,994,864	4,901,504		2,087,982	5,415,719
TOTAL COMPANY		94,955,200	$	112,818,575	98,327,608	$	112,448,360

(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.