Southwest Gas Q1 2022 Earnings Report
Key Takeaways
Southwest Gas Holdings reported a net income of $96.2 million, or $1.58 per diluted share, for the first quarter of 2022. Adjusted net income was $106.2 million, or $1.74 per diluted share. The company reaffirmed its full-year 2022 guidance.
Adjusted consolidated earnings of $1.74 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, compared to consolidated net income of $117.2 million for the first quarter of 2021.
The company reaffirmed its full-year 2022 guidance.
Strategic Alternatives Process to review all strategic alternatives available to maximize value for Southwest Gas stockholders.
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Southwest Gas Revenue by Segment
Forward Guidance
Southwest Gas reaffirmed its financial guidance as recently updated.
Positive 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.
Challenges Ahead
- Global inflationary headwinds
- Seasonality
- Business volatility at infrastructure services business
- Higher fuel, equipment rental, and subcontractor costs impacted Centuri's performance
- Inclement weather in upper Midwest and Eastern U.S. delayed the start of certain large gas utility projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income