1. The **PG&E of natural gas**, delivering natural gas to homes and businesses across parts of Arizona, Nevada, and California.

2. Like **Con Edison, but focused on natural gas delivery** for the Southwest US.

3. An **American Water Works (AWK) for natural gas**, providing essential utility services in the Southwest.

• Natural Gas Distribution and Sales: Provides regulated natural gas service to residential, commercial, and industrial customers across Arizona, Nevada, and parts of California.
• Utility Infrastructure Services: Offers comprehensive construction, maintenance, and repair services for natural gas and electric utility infrastructure to other utility companies across North America.

Southwest Gas Holdings, Inc. (SWX) is a natural gas utility company that sells natural gas primarily to individuals and businesses directly within its service territories in Arizona, Nevada, and California. It does not primarily sell to other companies that then resell the gas.

The company serves the following categories of customers:

1. Residential Customers: These include individual homeowners and renters who use natural gas for heating, cooking, water heating, and other household appliances.
2. Commercial Customers: This category encompasses various businesses, such as offices, retail stores, restaurants, hospitals, schools, and other non-industrial enterprises that use natural gas for space heating, water heating, and various business operations.
3. Industrial Customers: These are larger manufacturing facilities and other industrial operations that utilize natural gas as a fuel source for processes, heating, and power generation.

• Kinder Morgan, Inc. (KMI)
• Energy Transfer LP (ET)
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Karen S. Haller, President and Chief Executive Officer

Karen S. Haller has served as President and Chief Executive Officer of Southwest Gas Holdings, Inc. since May 2022. She has over 27 years of experience with Southwest Gas, holding various leadership positions, including Executive Vice President and Chief Legal and Administrative Officer. In her role as CEO, she leads Southwest Gas Holdings' regulated and unregulated businesses, which include Southwest Gas Corporation and Centuri, an energy infrastructure services company. Prior to joining Southwest Gas, Ms. Haller worked as a private practice lawyer.

Robert J. (Rob) Stefani, Senior Vice President/Chief Financial Officer

Robert J. Stefani serves as the Senior Vice President/Chief Financial Officer for Southwest Gas. He is scheduled to leave Southwest Gas Holdings, Inc. and Southwest Gas Corporation effective December 1, 2025. Earlier in his career, Mr. Stefani served as an officer in the United States Navy from 1996 to 2003. He holds a bachelor's degree in accounting from the University of Notre Dame and an MBA from the University of Texas at Austin.

Justin Lee Brown, President (Southwest Gas Corporation)

Justin Lee Brown is the President of Southwest Gas Corporation, the utility subsidiary of Southwest Gas Holdings, a role he assumed in 2022. He joined Southwest Gas in 2004 as Senior Counsel in Legal Affairs and has held various leadership roles, including Associate General Counsel, Vice President/Pricing, Vice President/Regulatory Affairs, and Senior Vice President/General Counsel. Before joining Southwest Gas, he worked in commercial litigation at Smith Larsen and Wixom and in public accounting at Deloitte and Touche. He also had a brief tenure with PacifiCorp, a Berkshire Hathaway Energy company.

Julie M. Williams, Senior Vice President/Continuous Improvement and Optimization

Julie M. Williams is the Senior Vice President/Continuous Improvement and Optimization at Southwest Gas Corporation. She began her career with Southwest Gas in 1997, serving in various engineering and operations management positions. Her previous roles include Vice President/Northern Nevada Division (2010), Vice President/Southern Arizona Division (2014), and Chief Operating Officer (2022).

Amy Timperley, Senior Vice President/Chief Regulatory, Public Affairs & Gas Resources Officer

Amy Timperley holds the position of Senior Vice President/Chief Regulatory, Public Affairs & Gas Resources Officer for Southwest Gas Corporation.

The key risks to Southwest Gas (SWX) are primarily centered around the evolving energy landscape and regulatory environment, operational and infrastructure challenges, and broader economic and financial pressures.

1. Regulatory and Environmental Transition Risks: As a natural gas distributor, Southwest Gas faces substantial risks due to increasing environmental concerns and the global push towards cleaner energy sources and decarbonization. Changes in energy policies, rate structures, and compliance requirements could significantly increase costs and limit revenue potential. Regulators are increasingly scrutinizing natural gas expansions in light of net-zero emission goals, potentially leading to stranded costs if new infrastructure conflicts with long-term climate policies. This includes changing customer demand for natural gas and strengthening emissions regulations at both state and federal levels, which could lead to a decline in core revenue streams due to electrification and competition from alternative energy.
2. Operational and Infrastructure Integrity Risks: The integrity and reliability of its extensive pipeline network represent a critical operational risk. Southwest Gas has faced issues such as degrading polyethylene pipes in high-heat areas, leading to leaks, explosions, and significant civil penalties. The company has also been cited for failing to accurately map the location of such defective piping, necessitating costly replacement programs. Additionally, the company's performance is susceptible to seasonal demand fluctuations, which can introduce volatility in earnings. There are also physical risks to critical assets from extreme weather events like wildfires and extreme heat.
3. Economic and Financial Performance Risks: Southwest Gas is exposed to economic fluctuations, including inflation and changes in interest rates, which can impact its cost structure and capital expenditure plans. The company operates in a competitive market, where pricing and service offerings are key differentiators. Recent reports have highlighted concerns regarding slowing revenue growth despite planned infrastructure investments, and execution delays on major projects could lead to future write-downs and downward pressure on financial returns. The company has also experienced shortfalls in revenue and earnings per share in recent quarters.

The clear emerging threat for Southwest Gas (SWX) is the accelerating push for the electrification of buildings and infrastructure, driven by decarbonization policies and advancements in electric alternatives such as heat pumps. This trend directly threatens the long-term demand for natural gas and the viability of new gas infrastructure investments within its service territories, particularly in California and potentially spreading to Nevada and Arizona, by incentivizing consumers and developers away from natural gas connections.

Southwest Gas Holdings (NYSE: SWX) primarily engages in the purchasing, distribution, and transportation of natural gas for residential, commercial, and industrial customers. The company serves over 2 million customers across parts of Arizona, Nevada, and California.

Following the full separation from its subsidiary Centuri Construction Group, Southwest Gas is now solely focused on its regulated natural gas operations.

Due to the specific and localized nature of natural gas distribution markets, a single, aggregated "addressable market size" for Southwest Gas's operating regions (parts of Arizona, Nevada, and California) is not readily available as a direct market value. The addressable market for Southwest Gas is best understood by the number of customers it can serve and the regulated revenue opportunities within its franchised service territories in these states, rather than a single total market valuation figure.

Therefore, it is not possible to size the markets for Southwest Gas's main products. null

Here are 5 expected drivers of future revenue growth for Southwest Gas (SWX) over the next 2-3 years:

1. Consistent Customer Growth: Southwest Gas anticipates continued expansion of its customer base across its service territories in Arizona, Nevada, and California. The company added approximately 40,000 to 41,000 new meter sets over the past 12 months, reflecting a 1.8% growth rate, and projects an annual customer growth rate of 1.6%. This consistent increase in customer connections directly drives demand for natural gas services and, consequently, revenue.
2. Significant Capital Expenditures and Infrastructure Investment: The company plans substantial capital investments, with projected expenditures of $880 million for fiscal year 2025 and $4.3 billion over the 2025-2029 period. These investments are strategically directed towards enhancing customer growth, upgrading existing systems, pipe replacement initiatives, and improving overall safety and reliability of its natural gas distribution network. Such capital deployment is expected to lead to rate base growth, a key mechanism for regulated utilities to increase revenue through approved rates.
3. Rate Adjustments and Regulatory Outcomes: Southwest Gas is actively pursuing rate adjustments in its jurisdictions. The company plans to file rate cases in Arizona and Nevada early next year to seek approval for new rates and alternative forms of ratemaking. Additionally, updated rates are expected to become effective in California in January 2026. Past rate relief has already contributed to increased utility operating margins.
4. Great Basin Pipeline Expansion Project: There is a significant opportunity for incremental growth through the potential expansion of the Great Basin interstate pipeline asset in Northern Nevada. Southwest Gas is exploring a 2028 expansion project that could involve an incremental capital investment of approximately $1.2 billion to $1.6 billion, indicating a substantial future revenue generation opportunity.
5. Strategic Focus on Regulated Natural Gas Business: With the complete separation from its Centuri infrastructure services segment, Southwest Gas is now a pure-play, fully regulated natural gas utility. This strategic streamlining allows the company to concentrate its resources and investments solely on its core natural gas distribution business, which is anticipated to improve operational and financial performance, enabling more effective execution of growth initiatives within its regulated territories.

[1] Share Repurchases

No significant information available regarding share repurchases of Southwest Gas (SWX) common stock over the last 3-5 years. A 3-year average share buyback ratio of -5.9 suggests net issuance rather than repurchases.

[2] Share Issuance

• In March 2023, Southwest Gas announced an underwritten public offering of $215 million in common stock, with net proceeds of approximately $207.7 million used primarily to repay outstanding borrowings related to the MountainWest Pipelines acquisition.
• The company does not expect to issue new equity in 2025 following the successful divestitures of Centuri Holdings.

[3] Inbound Investments

No significant information available regarding large inbound investments made in Southwest Gas by third parties (e.g., strategic partners or private equity firms) over the last 3-5 years.

[4] Outbound Investments

• Southwest Gas completed the acquisition of Dominion Energy Questar Pipeline, LLC (rebranded as MountainWest Pipelines Holding Company) for $1.545 billion in cash, assuming $430 million of its debt, effective December 31, 2021.
• In June 2021, Centuri Group, Inc., a wholly-owned subsidiary of Southwest Gas, acquired Riggs Distler & Company, Inc. through an all-cash purchase funded by new Centuri debt.
• Southwest Gas completed the full separation of Centuri Holdings, Inc., divesting its remaining shares for approximately $525 million in net proceeds by September 2025, contributing to total net proceeds of approximately $879 million from the Centuri sell-downs.

[5] Capital Expenditures

• Southwest Gas projects approximately $880 million in capital expenditures for fiscal year 2025.
• The company plans capital investments of approximately $4.3 billion over the 2025-2029 period.
• The primary focus of these expenditures is on customer growth, infrastructure upgrades, and pipe replacement initiatives to ensure system integrity and reliability, with a potential $1.2 to $1.6 billion Great Basin expansion project slated for late 2028.