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Mar 31, 2024

Southwest Gas Q1 2024 Earnings Report

Southwest Gas Holdings reported strong first quarter utility earnings and successfully executed Centuri IPO, using net proceeds to reduce Centuri debt.

Key Takeaways

Southwest Gas Holdings reported a consolidated net income of $87.7 million, or $1.22 per diluted share, for Q1 2024, compared to $45.9 million, or $0.67 per diluted share, for Q1 2023. Adjusted consolidated net income was $98.5 million, or $1.37 per diluted share, compared to $121 million, or $1.77 per diluted share for the same period last year. The company also completed the Centuri IPO and is focused on becoming a pure-play natural gas utility.

Completed the Centuri IPO at $21.00 per share, using net proceeds of approximately $329.3 million to reduce Centuri's debt.

Received a positive outcome in the Nevada rate case and expects to benefit from refreshed customer rates in Q2 2024.

Operations and maintenance expenses were relatively flat compared to the prior year's first quarter, reflecting cost discipline.

Affirmed 2024 Southwest net income guidance of $228 - $238 million and capital expenditures of $830 million.

Total Revenue
$1.58B
Previous year: $915M
+72.8%
EPS
$1.37
Previous year: $1.69
-18.9%
Gross Profit
$300M
Previous year: $343M
-12.5%
Cash and Equivalents
$458M
Previous year: $82.1M
+457.9%
Free Cash Flow
$323M
Previous year: -$881M
-136.6%
Total Assets
$11.9B
Previous year: $11.8B
+0.7%

Southwest Gas

Southwest Gas

Southwest Gas Revenue by Segment

Forward Guidance

The Company has affirmed the following forward-looking guidance for Southwest Gas.

Positive Outlook

  • 2024 Southwest net income guidance: $228 - $238 million
  • 2024 Capital expenditures in support of customer growth, system improvements, and pipe replacement programs: $830 million
  • 2024 - 2026 Southwest adjusted net income compound annual growth rate: 10% - 12%
  • 2024 - 2026 Capital expenditures: $2,400 million
  • 2024 - 2026 Southwest rate base compound annual growth rate: 6.5% - 7.5%