| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
Commission File Number | Exact name of registrant as specified in its charter and principal office address and telephone number | State of Incorporation | I.R.S. Employer Identification No. | |||||||||||||||||||||||
| 001-37976 | Southwest Gas Holdings, Inc. | Delaware | 81-3881866 | |||||||||||||||||||||||
| 8360 S. Durango Drive | ||||||||||||||||||||||||||
| Post Office Box 98510 | ||||||||||||||||||||||||||
| Las Vegas, | Nevada | 89193-8510 | ||||||||||||||||||||||||
| (702) | 876-7237 | |||||||||||||||||||||||||
| 1-7850 | Southwest Gas Corporation | California | 88-0085720 | |||||||||||||||||||||||
| 8360 S. Durango Drive | ||||||||||||||||||||||||||
| Post Office Box 98510 | ||||||||||||||||||||||||||
| Las Vegas, | Nevada | 89193-8510 | ||||||||||||||||||||||||
| (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 | ||||||||||||
| Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
| Emerging growth company | ☐ | |||||||||||||||||||
| Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||||||||||||||||
| Emerging growth company | ☐ | |||||||||||||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
2 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||
| ASSETS | ||||||||||||||
| Regulated operations plant: | ||||||||||||||
| Gas plant | $ | 11,049,050 | $ | 10,789,690 | ||||||||||
| Less: accumulated depreciation | (3,496,191) | (3,397,736) | ||||||||||||
| Construction work in progress | 218,638 | 202,068 | ||||||||||||
| Net regulated operations plant | 7,771,497 | 7,594,022 | ||||||||||||
| Other property and investments, net | 1,312,701 | 1,316,479 | ||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | 215,963 | 222,697 | ||||||||||||
| Accounts receivable, net of allowances | 750,794 | 707,127 | ||||||||||||
| Accrued utility revenue | 40,000 | 84,900 | ||||||||||||
| Income taxes receivable, net | 19,147 | 16,816 | ||||||||||||
| Deferred purchased gas costs | 354,571 | 291,145 | ||||||||||||
| Prepaid and other current assets | 263,363 | 292,082 | ||||||||||||
| Total current assets | 1,643,838 | 1,614,767 | ||||||||||||
| Noncurrent assets: | ||||||||||||||
| Goodwill | 1,750,472 | 1,781,332 | ||||||||||||
| Deferred income taxes | 168 | 121 | ||||||||||||
| Deferred charges and other assets | 444,332 | 458,536 | ||||||||||||
| Total noncurrent assets | 2,194,972 | 2,239,989 | ||||||||||||
| Total assets | $ | 12,923,008 | $ | 12,765,257 | ||||||||||
| CAPITALIZATION AND LIABILITIES | ||||||||||||||
| Capitalization: | ||||||||||||||
Common stock, $1 par (authorized - 120,000,000 shares; issued and outstanding - 67,003,792 and 60,422,081 shares) | $ | 68,634 | $ | 62,052 | ||||||||||
| Additional paid-in capital | 2,279,493 | 1,824,216 | ||||||||||||
| Accumulated other comprehensive loss, net | (45,528) | (46,761) | ||||||||||||
| Retained earnings | 1,156,253 | 1,114,313 | ||||||||||||
| Total equity | 3,458,852 | 2,953,820 | ||||||||||||
| Redeemable noncontrolling interests | 122,656 | 196,717 | ||||||||||||
| Long-term debt, less current maturities | 4,588,454 | 4,115,684 | ||||||||||||
| Total capitalization | 8,169,962 | 7,266,221 | ||||||||||||
| Current liabilities: | ||||||||||||||
| Current maturities of long-term debt | 41,276 | 297,324 | ||||||||||||
| Short-term debt | 1,462,747 | 1,909,000 | ||||||||||||
| Accounts payable | 306,753 | 353,365 | ||||||||||||
| Customer deposits | 53,991 | 59,327 | ||||||||||||
| Income taxes payable, net | 1,725 | 6,734 | ||||||||||||
| Accrued general taxes | 55,883 | 53,473 | ||||||||||||
| Accrued interest | 35,697 | 30,964 | ||||||||||||
| Deferred purchased gas costs | 4,986 | 5,736 | ||||||||||||
| Other current liabilities | 387,359 | 396,126 | ||||||||||||
| Total current liabilities | 2,350,417 | 3,112,049 | ||||||||||||
| Deferred income taxes and other credits: | ||||||||||||||
| Deferred income taxes and investment tax credits, net | 785,258 | 768,868 | ||||||||||||
| Accumulated removal costs | 494,554 | 480,583 | ||||||||||||
| Other deferred credits and other long-term liabilities | 1,122,817 | 1,137,536 | ||||||||||||
| Total deferred income taxes and other credits | 2,402,629 | 2,386,987 | ||||||||||||
| Total capitalization and liabilities | $ | 12,923,008 | $ | 12,765,257 | ||||||||||
3 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
| Operating revenues: | ||||||||||||||||||||||||||||||||||||||
| Regulated operations revenues | $ | 440,030 | $ | 292,796 | $ | 1,183,562 | $ | 814,728 | $ | 1,890,624 | $ | 1,400,052 | ||||||||||||||||||||||||||
| Utility infrastructure services revenues | 706,090 | 528,625 | 1,229,967 | 892,600 | 2,496,028 | 2,012,582 | ||||||||||||||||||||||||||||||||
| Total operating revenues | 1,146,120 | 821,421 | 2,413,529 | 1,707,328 | 4,386,652 | 3,412,634 | ||||||||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||
| Net cost of gas sold | 147,860 | 76,496 | 446,778 | 232,517 | 645,168 | 347,060 | ||||||||||||||||||||||||||||||||
| Operations and maintenance | 175,791 | 104,833 | 325,094 | 211,523 | 586,717 | 416,439 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 108,010 | 82,848 | 230,656 | 176,290 | 425,407 | 343,447 | ||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 22,606 | 19,338 | 47,422 | 40,025 | 87,740 | 71,765 | ||||||||||||||||||||||||||||||||
| Utility infrastructure services expenses | 646,193 | 478,640 | 1,149,425 | 814,254 | 2,290,638 | 1,794,145 | ||||||||||||||||||||||||||||||||
| Total operating expenses | 1,100,460 | 762,155 | 2,199,375 | 1,474,609 | 4,035,670 | 2,972,856 | ||||||||||||||||||||||||||||||||
| Operating income | 45,660 | 59,266 | 214,154 | 232,719 | 350,982 | 439,778 | ||||||||||||||||||||||||||||||||
| Other income and (expenses): | ||||||||||||||||||||||||||||||||||||||
| Net interest deductions | (53,206) | (25,939) | (101,569) | (49,903) | (170,864) | (106,550) | ||||||||||||||||||||||||||||||||
| Other income (deductions) | (2,835) | (1,311) | (1,591) | (863) | (4,227) | 5,193 | ||||||||||||||||||||||||||||||||
| Total other income and (expenses) | (56,041) | (27,250) | (103,160) | (50,766) | (175,091) | (101,357) | ||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (10,381) | 32,016 | 110,994 | 181,953 | 175,891 | 338,421 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (4,300) | 5,542 | 19,825 | 36,634 | 22,839 | 67,003 | ||||||||||||||||||||||||||||||||
| Net income (loss) | (6,081) | 26,474 | 91,169 | 145,319 | 153,052 | 271,418 | ||||||||||||||||||||||||||||||||
| Net income attributable to noncontrolling interests | 494 | 1,355 | 1,566 | 2,907 | 5,082 | 7,189 | ||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Southwest Gas Holdings, Inc. | $ | (6,575) | $ | 25,119 | $ | 89,603 | $ | 142,412 | $ | 147,970 | $ | 264,229 | ||||||||||||||||||||||||||
| Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||
| Basic | $ | (0.10) | $ | 0.43 | $ | 1.40 | $ | 2.45 | $ | 2.39 | $ | 4.61 | ||||||||||||||||||||||||||
| Diluted | $ | (0.10) | $ | 0.43 | $ | 1.40 | $ | 2.45 | $ | 2.38 | $ | 4.60 | ||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||||||||||||
| Basic | 67,045 | 58,607 | 63,909 | 58,106 | 62,022 | 57,348 | ||||||||||||||||||||||||||||||||
| Diluted | 67,190 | 58,710 | 64,041 | 58,197 | 62,157 | 57,440 | ||||||||||||||||||||||||||||||||
4 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (6,081) | $ | 26,474 | $ | 91,169 | $ | 145,319 | $ | 153,052 | $ | 271,418 | ||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||||||||||||||
| Defined benefit pension plans: | ||||||||||||||||||||||||||||||||||||||
| Net actuarial gain (loss) | — | — | — | — | 44,974 | (43,730) | ||||||||||||||||||||||||||||||||
| Amortization of prior service cost | 33 | 182 | 66 | 364 | 431 | 802 | ||||||||||||||||||||||||||||||||
| Amortization of net actuarial loss | 6,615 | 8,472 | 13,231 | 16,946 | 30,179 | 31,322 | ||||||||||||||||||||||||||||||||
| Regulatory adjustment | (5,524) | (7,277) | (11,047) | (14,554) | (63,520) | 3,856 | ||||||||||||||||||||||||||||||||
| Net defined benefit pension plans | 1,124 | 1,377 | 2,250 | 2,756 | 12,064 | (7,750) | ||||||||||||||||||||||||||||||||
| Forward-starting interest rate swaps (“FSIRS”): | ||||||||||||||||||||||||||||||||||||||
| Amounts reclassified into net income | — | 414 | 416 | 827 | 1,241 | 2,023 | ||||||||||||||||||||||||||||||||
| Net forward-starting interest rate swaps | — | 414 | 416 | 827 | 1,241 | 2,023 | ||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments | (2,680) | 909 | (1,433) | 1,732 | (3,145) | 5,656 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss), net of tax | (1,556) | 2,700 | 1,233 | 5,315 | 10,160 | (71) | ||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | (7,637) | 29,174 | 92,402 | 150,634 | 163,212 | 271,347 | ||||||||||||||||||||||||||||||||
| Comprehensive income attributable to noncontrolling interests | 494 | 1,355 | 1,566 | 2,907 | 5,082 | 7,189 | ||||||||||||||||||||||||||||||||
| Comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. | $ | (8,131) | $ | 27,819 | $ | 90,836 | $ | 147,727 | $ | 158,130 | $ | 264,158 | ||||||||||||||||||||||||||
5 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||||
| Net income | $ | 91,169 | $ | 145,319 | $ | 153,052 | $ | 271,418 | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
| Depreciation and amortization | 230,656 | 176,290 | 425,407 | 343,447 | ||||||||||||||||||||||
| Deferred income taxes | 30,163 | 44,178 | 47,197 | 63,774 | ||||||||||||||||||||||
| Changes in current assets and liabilities: | ||||||||||||||||||||||||||
| Accounts receivable, net of allowances | (42,212) | 10,005 | (103,771) | (29,021) | ||||||||||||||||||||||
| Accrued utility revenue | 44,900 | 43,900 | (1,500) | (2,700) | ||||||||||||||||||||||
| Deferred purchased gas costs | (64,176) | (287,687) | (120,217) | (305,043) | ||||||||||||||||||||||
| Accounts payable | (33,356) | (41,075) | 58,145 | (1,571) | ||||||||||||||||||||||
| Accrued taxes | (5,023) | (3,164) | (8,584) | 2,988 | ||||||||||||||||||||||
| Other current assets and liabilities | 16,480 | (31,928) | (40,801) | (3,039) | ||||||||||||||||||||||
| Gains on sale of property and equipment | (3,475) | (4,033) | (6,348) | (5,572) | ||||||||||||||||||||||
| Changes in undistributed stock compensation | 7,036 | 5,736 | 10,594 | 8,518 | ||||||||||||||||||||||
| Equity AFUDC | (575) | — | (575) | (2,543) | ||||||||||||||||||||||
| Changes in deferred charges and other assets | 13,736 | (11,171) | 11,366 | (35,494) | ||||||||||||||||||||||
| Changes in other liabilities and deferred credits | (21,705) | (45,013) | (50,321) | (52,865) | ||||||||||||||||||||||
| Net cash provided by operating activities | 263,618 | 1,357 | 373,644 | 252,297 | ||||||||||||||||||||||
| CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||
| Construction expenditures and property additions | (367,932) | (338,049) | (745,509) | (739,719) | ||||||||||||||||||||||
| Acquisition of businesses, net of cash acquired | (18,809) | — | (2,373,069) | — | ||||||||||||||||||||||
| Changes in customer advances | 17,051 | 7,507 | 25,518 | 17,442 | ||||||||||||||||||||||
| Other | 3,905 | 9,159 | 13,002 | 13,367 | ||||||||||||||||||||||
| Net cash used in investing activities | (365,785) | (321,383) | (3,080,058) | (708,910) | ||||||||||||||||||||||
| CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||
| Issuance of common stock, net | 456,280 | 121,302 | 548,619 | 205,049 | ||||||||||||||||||||||
| Centuri distribution to redeemable noncontrolling interest | (39,649) | — | (39,649) | — | ||||||||||||||||||||||
| Dividends paid | (77,419) | (67,130) | (148,511) | (131,189) | ||||||||||||||||||||||
| Issuance of long-term debt, net | 759,602 | 82,245 | 2,338,053 | 124,319 | ||||||||||||||||||||||
| Retirement of long-term debt | (412,263) | (60,500) | (804,427) | (299,370) | ||||||||||||||||||||||
| Change in credit facility and commercial paper | (130,000) | — | (150,000) | 150,000 | ||||||||||||||||||||||
| Change in short-term debt | (446,253) | 211,000 | (705,253) | 260,000 | ||||||||||||||||||||||
| Issuance of short-term debt | — | — | 1,850,000 | — | ||||||||||||||||||||||
| Withholding remittance - share-based compensation | (2,089) | (1,243) | (2,110) | (1,243) | ||||||||||||||||||||||
| Other | (12,811) | (1,623) | (11,917) | (3,565) | ||||||||||||||||||||||
| Net cash provided by financing activities | 95,398 | 284,051 | 2,874,805 | 304,001 | ||||||||||||||||||||||
| Effects of currency translation on cash and cash equivalents | 35 | 188 | 7 | 586 | ||||||||||||||||||||||
| Change in cash and cash equivalents | (6,734) | (35,787) | 168,398 | (152,026) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 222,697 | 83,352 | 47,565 | 199,591 | ||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 215,963 | $ | 47,565 | $ | 215,963 | $ | 47,565 | ||||||||||||||||||
| SUPPLEMENTAL INFORMATION: | ||||||||||||||||||||||||||
| Interest paid, net of amounts capitalized | $ | 92,297 | $ | 47,475 | $ | 149,174 | $ | 101,227 | ||||||||||||||||||
| Income taxes paid (received), net | $ | 8,300 | $ | 6,659 | $ | 5,849 | $ | 15,118 | ||||||||||||||||||
6 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
| Common stock shares | |||||||||||||||||||||||||||||
| Beginning balances | 66,849 | 57,995 | 60,422 | 57,193 | |||||||||||||||||||||||||
| Common stock issuances | 155 | 1,093 | 6,582 | 1,895 | |||||||||||||||||||||||||
| Ending balances | 67,004 | 59,088 | 67,004 | 59,088 | |||||||||||||||||||||||||
| Common stock amount | |||||||||||||||||||||||||||||
| Beginning balances | $ | 68,479 | $ | 59,625 | $ | 62,052 | $ | 58,823 | |||||||||||||||||||||
| Common stock issuances | 155 | 1,093 | 6,582 | 1,895 | |||||||||||||||||||||||||
| Ending balances | 68,634 | 60,718 | 68,634 | 60,718 | |||||||||||||||||||||||||
| Additional paid-in capital | |||||||||||||||||||||||||||||
| Beginning balances | 2,273,837 | 1,660,108 | 1,824,216 | 1,609,155 | |||||||||||||||||||||||||
| Common stock issuances | 5,656 | 73,464 | 455,277 | 124,417 | |||||||||||||||||||||||||
| Ending balances | 2,279,493 | 1,733,572 | 2,279,493 | 1,733,572 | |||||||||||||||||||||||||
| Accumulated other comprehensive loss | |||||||||||||||||||||||||||||
| Beginning balances | (43,972) | (58,388) | (46,761) | (61,003) | |||||||||||||||||||||||||
| Foreign currency exchange translation adjustment | (2,680) | 909 | (1,433) | 1,732 | |||||||||||||||||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,124 | 1,377 | 2,250 | 2,756 | |||||||||||||||||||||||||
| FSIRS amounts reclassified to net income, net of tax | — | 414 | 416 | 827 | |||||||||||||||||||||||||
| Ending balances | (45,528) | (55,688) | (45,528) | (55,688) | |||||||||||||||||||||||||
| Retained earnings | |||||||||||||||||||||||||||||
| Beginning balances | 1,190,738 | 1,112,377 | 1,114,313 | 1,067,978 | |||||||||||||||||||||||||
| Net income (loss) | (6,575) | 25,119 | 89,603 | 142,412 | |||||||||||||||||||||||||
| Dividends declared | (41,732) | (35,329) | (83,641) | (70,205) | |||||||||||||||||||||||||
| Redemption value adjustments | 13,822 | 6,112 | 35,978 | (31,906) | |||||||||||||||||||||||||
| Ending balances | 1,156,253 | 1,108,279 | 1,156,253 | 1,108,279 | |||||||||||||||||||||||||
| Total equity ending balances | $ | 3,458,852 | $ | 2,846,881 | $ | 3,458,852 | $ | 2,846,881 | |||||||||||||||||||||
| Dividends declared per common share | $ | 0.62 | $ | 0.595 | $ | 1.24 | $ | 1.19 | |||||||||||||||||||||
7 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||
| ASSETS | ||||||||||||||
| Regulated operations plant: | ||||||||||||||
| Gas plant | $ | 9,137,313 | $ | 8,901,575 | ||||||||||
| Less: accumulated depreciation | (2,613,096) | (2,538,508) | ||||||||||||
| Construction work in progress | 193,269 | 183,485 | ||||||||||||
| Net regulated operations plant | 6,717,486 | 6,546,552 | ||||||||||||
| Other property and investments, net | 146,599 | 153,093 | ||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | 102,143 | 38,691 | ||||||||||||
| Accounts receivable, net of allowance | 141,820 | 169,666 | ||||||||||||
| Accrued utility revenue | 40,000 | 84,900 | ||||||||||||
| Income taxes receivable, net | 6,665 | 7,826 | ||||||||||||
| Deferred purchased gas costs | 354,571 | 291,145 | ||||||||||||
| Receivable from parent | — | 1,031 | ||||||||||||
| Prepaid and other current assets | 207,545 | 242,243 | ||||||||||||
| Total current assets | 852,744 | 835,502 | ||||||||||||
| Noncurrent assets: | ||||||||||||||
| Goodwill | 10,095 | 10,095 | ||||||||||||
| Deferred charges and other assets | 388,054 | 405,021 | ||||||||||||
| Total noncurrent assets | 398,149 | 415,116 | ||||||||||||
| Total assets | $ | 8,114,978 | $ | 7,950,263 | ||||||||||
| CAPITALIZATION AND LIABILITIES | ||||||||||||||
| Capitalization: | ||||||||||||||
| Common stock | $ | 49,112 | $ | 49,112 | ||||||||||
| Additional paid-in capital | 1,622,006 | 1,618,911 | ||||||||||||
| Accumulated other comprehensive loss, net | (44,247) | (46,913) | ||||||||||||
| Retained earnings | 952,725 | 906,827 | ||||||||||||
| Total equity | 2,579,596 | 2,527,937 | ||||||||||||
| Long-term debt, less current maturities | 2,904,099 | 2,440,603 | ||||||||||||
| Total capitalization | 5,483,695 | 4,968,540 | ||||||||||||
| Current liabilities: | ||||||||||||||
| Current maturities of long-term debt | — | 275,000 | ||||||||||||
| Short-term debt | 225,000 | 250,000 | ||||||||||||
| Accounts payable | 143,569 | 234,070 | ||||||||||||
| Customer deposits | 50,925 | 56,127 | ||||||||||||
| Accrued general taxes | 51,722 | 53,064 | ||||||||||||
| Accrued interest | 26,942 | 22,926 | ||||||||||||
| Payable to parent | 330 | — | ||||||||||||
| Other current liabilities | 162,151 | 146,422 | ||||||||||||
| Total current liabilities | 660,639 | 1,037,609 | ||||||||||||
| Deferred income taxes and other credits: | ||||||||||||||
| Deferred income taxes and investment tax credits, net | 676,294 | 638,828 | ||||||||||||
| Accumulated removal costs | 437,000 | 424,000 | ||||||||||||
| Other deferred credits and other long-term liabilities | 857,350 | 881,286 | ||||||||||||
| Total deferred income taxes and other credits | 1,970,644 | 1,944,114 | ||||||||||||
| Total capitalization and liabilities | $ | 8,114,978 | $ | 7,950,263 | ||||||||||
8 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
| Regulated operations revenues | $ | 377,942 | $ | 292,796 | $ | 1,054,481 | $ | 814,728 | $ | 1,761,543 | $ | 1,400,052 | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||||||||
| Net cost of gas sold | 146,654 | 76,496 | 443,775 | 232,517 | 642,165 | 347,060 | ||||||||||||||||||||||||||||||||
| Operations and maintenance | 127,811 | 103,137 | 247,447 | 209,272 | 476,725 | 413,246 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 55,930 | 57,631 | 128,044 | 126,329 | 255,113 | 243,701 | ||||||||||||||||||||||||||||||||
| Taxes other than income taxes | 20,098 | 19,338 | 41,750 | 40,025 | 82,068 | 71,765 | ||||||||||||||||||||||||||||||||
| Total operating expenses | 350,493 | 256,602 | 861,016 | 608,143 | 1,456,071 | 1,075,772 | ||||||||||||||||||||||||||||||||
| Operating income | 27,449 | 36,194 | 193,465 | 206,585 | 305,472 | 324,280 | ||||||||||||||||||||||||||||||||
| Other income and (expenses): | ||||||||||||||||||||||||||||||||||||||
| Net interest deductions | (28,633) | (24,175) | (55,243) | (46,341) | (106,462) | (98,440) | ||||||||||||||||||||||||||||||||
| Other income (deductions) | (3,433) | (1,165) | (2,118) | (615) | (6,062) | 5,493 | ||||||||||||||||||||||||||||||||
| Total other income and (expenses) | (32,066) | (25,340) | (57,361) | (46,956) | (112,524) | (92,947) | ||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | (4,617) | 10,854 | 136,104 | 159,629 | 192,948 | 231,333 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | (2,351) | (559) | 26,575 | 29,501 | 26,412 | 37,628 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (2,266) | $ | 11,413 | $ | 109,529 | $ | 130,128 | $ | 166,536 | $ | 193,705 | ||||||||||||||||||||||||||
9 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (2,266) | $ | 11,413 | $ | 109,529 | $ | 130,128 | $ | 166,536 | $ | 193,705 | ||||||||||||||||||||||||||
| Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||||||||||||||
| Defined benefit pension plans: | ||||||||||||||||||||||||||||||||||||||
| Net actuarial gain (loss) | — | — | — | — | 44,974 | (43,730) | ||||||||||||||||||||||||||||||||
| Amortization of prior service cost | 33 | 182 | 66 | 364 | 431 | 802 | ||||||||||||||||||||||||||||||||
| Amortization of net actuarial loss | 6,615 | 8,472 | 13,231 | 16,946 | 30,179 | 31,322 | ||||||||||||||||||||||||||||||||
| Regulatory adjustment | (5,524) | (7,277) | (11,047) | (14,554) | (63,520) | 3,856 | ||||||||||||||||||||||||||||||||
| Net defined benefit pension plans | 1,124 | 1,377 | 2,250 | 2,756 | 12,064 | (7,750) | ||||||||||||||||||||||||||||||||
| Forward-starting interest rate swaps (“FSIRS”): | ||||||||||||||||||||||||||||||||||||||
| Amounts reclassified into net income | — | 414 | 416 | 827 | 1,241 | 2,023 | ||||||||||||||||||||||||||||||||
| Net forward-starting interest rate swaps | — | 414 | 416 | 827 | 1,241 | 2,023 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss), net of tax | 1,124 | 1,791 | 2,666 | 3,583 | 13,305 | (5,727) | ||||||||||||||||||||||||||||||||
| Comprehensive income (loss) | $ | (1,142) | $ | 13,204 | $ | 112,195 | $ | 133,711 | $ | 179,841 | $ | 187,978 | ||||||||||||||||||||||||||
10 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
| CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||||
| Net income | $ | 109,529 | $ | 130,128 | $ | 166,536 | $ | 193,705 | ||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||||||||
| Depreciation and amortization | 128,044 | 126,329 | 255,113 | 243,701 | ||||||||||||||||||||||
| Deferred income taxes | 36,624 | 38,178 | 51,683 | 64,989 | ||||||||||||||||||||||
| Changes in current assets and liabilities: | ||||||||||||||||||||||||||
| Accounts receivable, net of allowance | 27,846 | 28,018 | (22,978) | (25,096) | ||||||||||||||||||||||
| Accrued utility revenue | 44,900 | 43,900 | (1,500) | (2,700) | ||||||||||||||||||||||
| Deferred purchased gas costs | (63,426) | (287,687) | (119,467) | (305,043) | ||||||||||||||||||||||
| Accounts payable | (72,201) | (56,518) | 42,081 | 6,812 | ||||||||||||||||||||||
| Accrued taxes | (181) | 2,401 | 5,171 | (16,872) | ||||||||||||||||||||||
| Other current assets and liabilities | 46,730 | 4,549 | (28,090) | (18,418) | ||||||||||||||||||||||
| Gain on sale of property | (1,503) | — | (1,503) | — | ||||||||||||||||||||||
| Changes in undistributed stock compensation | 4,459 | 4,159 | 6,692 | 5,959 | ||||||||||||||||||||||
| Equity AFUDC | (157) | — | (157) | (2,543) | ||||||||||||||||||||||
| Changes in deferred charges and other assets | 2,529 | (17,540) | (8,674) | (48,142) | ||||||||||||||||||||||
| Changes in other liabilities and deferred credits | (22,230) | (45,309) | (49,307) | (55,272) | ||||||||||||||||||||||
| Net cash provided by (used in) operating activities | 240,963 | (29,392) | 295,600 | 41,080 | ||||||||||||||||||||||
| CASH FLOW FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||||
| Construction expenditures and property additions | (293,197) | (276,109) | (619,071) | (613,824) | ||||||||||||||||||||||
| Changes in customer advances | 17,051 | 7,507 | 25,517 | 17,442 | ||||||||||||||||||||||
| Other | (896) | 6 | (934) | 677 | ||||||||||||||||||||||
| Net cash used in investing activities | (277,042) | (268,596) | (594,488) | (595,705) | ||||||||||||||||||||||
| CASH FLOW FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||||
| Contributions from parent | — | 115,641 | 86,942 | 194,063 | ||||||||||||||||||||||
| Dividends paid | (60,200) | (53,500) | (118,100) | (106,900) | ||||||||||||||||||||||
| Issuance of long-term debt, net | 593,862 | — | 891,180 | — | ||||||||||||||||||||||
| Retirement of long-term debt | (275,000) | — | (275,000) | (125,000) | ||||||||||||||||||||||
| Change in credit facility and commercial paper | (130,000) | — | (150,000) | 150,000 | ||||||||||||||||||||||
| Change in short-term debt | (25,000) | 234,000 | (66,000) | 291,000 | ||||||||||||||||||||||
| Withholding remittance - share-based compensation | (1,996) | (1,242) | (2,017) | (1,242) | ||||||||||||||||||||||
| Other | (2,135) | (263) | (3,692) | (362) | ||||||||||||||||||||||
| Net cash provided by financing activities | 99,531 | 294,636 | 363,313 | 401,559 | ||||||||||||||||||||||
| Change in cash and cash equivalents | 63,452 | (3,352) | 64,425 | (153,066) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 38,691 | 41,070 | 37,718 | 190,784 | ||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 102,143 | $ | 37,718 | $ | 102,143 | $ | 37,718 | ||||||||||||||||||
| SUPPLEMENTAL INFORMATION: | ||||||||||||||||||||||||||
| Interest paid, net of amounts capitalized | $ | 51,312 | $ | 44,834 | $ | 96,718 | $ | 94,984 | ||||||||||||||||||
| Income taxes paid (received), net | $ | 5 | $ | — | $ | (13,524) | $ | 3,359 | ||||||||||||||||||
11 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
| Common stock shares | ||||||||||||||||||||||||||||||||
| Beginning and ending balances | 47,482 | 47,482 | 47,482 | 47,482 | ||||||||||||||||||||||||||||
| Common stock amount | ||||||||||||||||||||||||||||||||
| Beginning and ending balances | $ | 49,112 | $ | 49,112 | $ | 49,112 | $ | 49,112 | ||||||||||||||||||||||||
| Additional paid-in capital | ||||||||||||||||||||||||||||||||
| Beginning balances | 1,620,616 | 1,458,344 | 1,618,911 | 1,410,345 | ||||||||||||||||||||||||||||
| Share-based compensation | 1,390 | 1,418 | 3,095 | 3,433 | ||||||||||||||||||||||||||||
| Contributions from Southwest Gas Holdings, Inc. | — | 69,657 | — | 115,641 | ||||||||||||||||||||||||||||
| Ending balances | 1,622,006 | 1,529,419 | 1,622,006 | 1,529,419 | ||||||||||||||||||||||||||||
| Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
| Beginning balances | (45,371) | (59,343) | (46,913) | (61,135) | ||||||||||||||||||||||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,124 | 1,377 | 2,250 | 2,756 | ||||||||||||||||||||||||||||
| FSIRS amounts reclassified to net income, net of tax | — | 414 | 416 | 827 | ||||||||||||||||||||||||||||
| Ending balances | (44,247) | (57,552) | (44,247) | (57,552) | ||||||||||||||||||||||||||||
| Retained earnings | ||||||||||||||||||||||||||||||||
| Beginning balances | 987,177 | 926,011 | 906,827 | 835,146 | ||||||||||||||||||||||||||||
| Net income (loss) | (2,266) | 11,413 | 109,529 | 130,128 | ||||||||||||||||||||||||||||
| Share-based compensation | (186) | (167) | (631) | (517) | ||||||||||||||||||||||||||||
| Dividends declared to Southwest Gas Holdings, Inc. | (32,000) | (28,500) | (63,000) | (56,000) | ||||||||||||||||||||||||||||
| Ending balances | 952,725 | 908,757 | 952,725 | 908,757 | ||||||||||||||||||||||||||||
| Total Southwest Gas Corporation equity ending balances | $ | 2,579,596 | $ | 2,429,736 | $ | 2,579,596 | $ | 2,429,736 | ||||||||||||||||||||||||
12 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
13 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| (Thousands of dollars) | June 30, 2022 | December 31, 2021 | |||||||||
| Net cash surrender value of COLI policies | $ | 142,819 | $ | 149,947 | |||||||
| Other property | 3,780 | 3,146 | |||||||||
| Total Southwest Gas Corporation | 146,599 | 153,093 | |||||||||
| Non-regulated property, equipment, and intangibles | 1,678,683 | 1,616,392 | |||||||||
| Non-regulated accumulated provision for depreciation and amortization | (569,630) | (512,343) | |||||||||
| Other property and investments | 57,049 | 59,337 | |||||||||
| Total Southwest Gas Holdings, Inc. | $ | 1,312,701 | $ | 1,316,479 | |||||||
14 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| (Thousands of dollars) | Natural Gas Distribution | Utility Infrastructure Services | Pipeline and Storage | Total Company | ||||||||||||||||||||||
| December 31, 2021 | $ | 10,095 | $ | 785,058 | $ | 986,179 | $ | 1,781,332 | ||||||||||||||||||
| Measurement-period adjustments from Riggs Distler acquisition (a) | — | (906) | (906) | |||||||||||||||||||||||
| Measurement-period adjustments from MountainWest acquisition (a) | — | — | (28,178) | (28,178) | ||||||||||||||||||||||
| Foreign currency translation adjustment | — | (1,776) | — | (1,776) | ||||||||||||||||||||||
| June 30, 2022 | $ | 10,095 | $ | 782,376 | $ | 958,001 | $ | 1,750,472 | ||||||||||||||||||
15 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||||||||||
(Thousands of dollars) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
| Southwest Gas Corporation: | |||||||||||||||||||||||||||||||||||
| Change in COLI policies | $ | (5,200) | $ | 3,100 | $ | (7,200) | $ | 5,800 | $ | (4,200) | $ | 18,500 | |||||||||||||||||||||||
| Interest income | 3,198 | 1,231 | 5,999 | 1,947 | 9,165 | 4,160 | |||||||||||||||||||||||||||||
| Equity AFUDC | 81 | (981) | 157 | — | 157 | 2,543 | |||||||||||||||||||||||||||||
| Other components of net periodic benefit cost | (187) | (3,505) | (375) | (7,010) | (7,386) | (17,021) | |||||||||||||||||||||||||||||
| Miscellaneous income and (expense) | (1,325) | (1,010) | (699) | (1,352) | (3,798) | (2,689) | |||||||||||||||||||||||||||||
| Southwest Gas Corporation - total other income (deductions) | (3,433) | (1,165) | (2,118) | (615) | (6,062) | 5,493 | |||||||||||||||||||||||||||||
| Centuri, MountainWest, and Southwest Gas Holdings, Inc.: | |||||||||||||||||||||||||||||||||||
| Foreign transaction gain (loss) | 214 | (9) | 217 | (12) | 207 | (12) | |||||||||||||||||||||||||||||
| Equity AFUDC | 236 | — | 418 | — | 418 | — | |||||||||||||||||||||||||||||
| Equity in earnings of unconsolidated investments | 728 | 109 | 1,243 | 101 | 1,368 | 156 | |||||||||||||||||||||||||||||
| Miscellaneous income and (expense) | (580) | (246) | (1,351) | (337) | (158) | (444) | |||||||||||||||||||||||||||||
| Southwest Gas Holdings, Inc. - total other income (deductions) | $ | (2,835) | $ | (1,311) | $ | (1,591) | $ | (863) | $ | (4,227) | $ | 5,193 | |||||||||||||||||||||||
16 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| (Thousands of dollars): | Linetec | Drum | Total | |||||||||||||||||
Balance, December 31, 2021 | $ | 184,148 | $ | 12,569 | $ | 196,717 | ||||||||||||||
| Net income (loss) attributable to redeemable noncontrolling interests | 1,576 | (10) | 1,566 | |||||||||||||||||
| Redemption value adjustments | (35,978) | — | (35,978) | |||||||||||||||||
| Redemption of equity interest from noncontrolling party | (39,649) | — | (39,649) | |||||||||||||||||
Balance, June 30, 2022 | $ | 110,097 | $ | 12,559 | $ | 122,656 | ||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | ||||||||||||||||||||||||||||||||||||
| (In thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
| Weighted average basic shares | 67,045 | 58,607 | 63,909 | 58,106 | 62,022 | 57,348 | ||||||||||||||||||||||||||||||||
| Effect of dilutive securities: | ||||||||||||||||||||||||||||||||||||||
| Restricted stock units (1) | 145 | 103 | 132 | 91 | 135 | 92 | ||||||||||||||||||||||||||||||||
| Weighted average diluted shares | 67,190 | 58,710 | 64,041 | 58,197 | 62,157 | 57,440 | ||||||||||||||||||||||||||||||||
17 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
18 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Qualified Retirement Plan | |||||||||||||||||||||||||||||||||||
| June 30, | |||||||||||||||||||||||||||||||||||
| Three Months | Six Months | Twelve Months | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
| (Thousands of dollars) | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 11,028 | $ | 10,290 | $ | 22,056 | $ | 20,580 | $ | 42,635 | $ | 37,730 | |||||||||||||||||||||||
| Interest cost | 11,251 | 10,108 | 22,502 | 20,216 | 42,718 | 42,994 | |||||||||||||||||||||||||||||
| Expected return on plan assets | (19,978) | (18,088) | (39,956) | (36,176) | (76,132) | (68,824) | |||||||||||||||||||||||||||||
| Amortization of net actuarial loss | 8,117 | 10,489 | 16,234 | 20,978 | 37,211 | 38,990 | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | 10,418 | $ | 12,799 | $ | 20,836 | $ | 25,598 | $ | 46,432 | $ | 50,890 | |||||||||||||||||||||||
| SERP | |||||||||||||||||||||||||||||||||||
| June 30, | |||||||||||||||||||||||||||||||||||
| Three Months | Six Months | Twelve Months | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
| (Thousands of dollars) | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 106 | $ | 132 | $ | 212 | $ | 263 | $ | 475 | $ | 457 | |||||||||||||||||||||||
| Interest cost | 360 | 358 | 720 | 716 | 1,435 | 1,517 | |||||||||||||||||||||||||||||
| Amortization of net actuarial loss | 587 | 660 | 1,175 | 1,320 | 2,497 | 2,223 | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | 1,053 | $ | 1,150 | $ | 2,107 | $ | 2,299 | $ | 4,407 | $ | 4,197 | |||||||||||||||||||||||
| PBOP | |||||||||||||||||||||||||||||||||||
| June 30, | |||||||||||||||||||||||||||||||||||
| Three Months | Six Months | Twelve Months | |||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||
| (Thousands of dollars) | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 485 | $ | 423 | $ | 970 | $ | 846 | $ | 1,815 | $ | 1,636 | |||||||||||||||||||||||
| Interest cost | 613 | 548 | 1,226 | 1,096 | 2,323 | 2,388 | |||||||||||||||||||||||||||||
| Expected return on plan assets | (807) | (810) | (1,614) | (1,620) | (3,233) | (3,324) | |||||||||||||||||||||||||||||
| Amortization of prior service costs | 44 | 240 | 88 | 480 | 567 | 1,057 | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | 335 | $ | 401 | $ | 670 | $ | 802 | $ | 1,472 | $ | 1,757 | |||||||||||||||||||||||
19 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
| Residential | $ | 228,573 | $ | 193,322 | $ | 743,159 | $ | 596,465 | $ | 1,182,306 | $ | 995,132 | |||||||||||||||||||||||
| Small commercial | 78,730 | 56,093 | 202,714 | 137,491 | 335,437 | 235,114 | |||||||||||||||||||||||||||||
| Large commercial | 20,989 | 13,158 | 41,150 | 25,831 | 72,690 | 47,818 | |||||||||||||||||||||||||||||
| Industrial/other | 10,773 | 6,974 | 20,745 | 20,744 | 42,314 | 33,785 | |||||||||||||||||||||||||||||
| Transportation | 24,466 | 21,797 | 51,098 | 46,333 | 97,005 | 90,307 | |||||||||||||||||||||||||||||
| Revenue from contracts with customers | 363,531 | 291,344 | 1,058,866 | 826,864 | 1,729,752 | 1,402,156 | |||||||||||||||||||||||||||||
| Alternative revenue program revenues (deferrals) | 11,022 | (1,531) | (12,477) | (17,904) | 18,608 | (6,110) | |||||||||||||||||||||||||||||
| Other revenues (1) | 3,389 | 2,983 | 8,092 | 5,768 | 13,183 | 4,006 | |||||||||||||||||||||||||||||
| Total Regulated operations revenues | $ | 377,942 | $ | 292,796 | $ | 1,054,481 | $ | 814,728 | $ | 1,761,543 | $ | 1,400,052 | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
| Service Types: | |||||||||||||||||||||||||||||||||||
| Gas infrastructure services | $ | 418,869 | $ | 346,877 | $ | 679,551 | $ | 568,714 | $ | 1,413,177 | $ | 1,282,008 | |||||||||||||||||||||||
| Electric power infrastructure services | 179,749 | 97,644 | 361,717 | 191,605 | 695,314 | 435,825 | |||||||||||||||||||||||||||||
| Other | 107,472 | 84,104 | 188,699 | 132,281 | 387,537 | 294,749 | |||||||||||||||||||||||||||||
Total Utility infrastructure services revenues | $ | 706,090 | $ | 528,625 | $ | 1,229,967 | $ | 892,600 | $ | 2,496,028 | $ | 2,012,582 | |||||||||||||||||||||||
20 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||||||||||||||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
| Contract Types: | |||||||||||||||||||||||||||||||||||
| Master services agreement | $ | 617,489 | $ | 398,650 | $ | 1,062,834 | * | $ | 692,330 | $ | 2,023,482 | * | $ | 1,543,292 | |||||||||||||||||||||
| Bid contract | 88,601 | 129,975 | 167,133 | * | 200,270 | 472,546 | * | 469,290 | |||||||||||||||||||||||||||
Total Utility infrastructure services revenues | $ | 706,090 | $ | 528,625 | $ | 1,229,967 | $ | 892,600 | $ | 2,496,028 | $ | 2,012,582 | |||||||||||||||||||||||
| Unit price contracts | $ | 421,927 | $ | 361,926 | $ | 724,450 | $ | 596,375 | $ | 1,497,157 | $ | 1,344,626 | |||||||||||||||||||||||
| Fixed price contracts | 128,793 | 50,455 | 215,330 | 85,049 | 398,023 | 179,194 | |||||||||||||||||||||||||||||
| Time and materials contracts | 155,370 | 116,244 | 290,187 | 211,176 | 600,848 | 488,762 | |||||||||||||||||||||||||||||
Total Utility infrastructure services revenues | $ | 706,090 | $ | 528,625 | $ | 1,229,967 | $ | 892,600 | $ | 2,496,028 | $ | 2,012,582 | |||||||||||||||||||||||
| (Thousands of dollars) | June 30, 2022 | December 31, 2021 | |||||||||
| Contracts receivable, net | $ | 332,433 | $ | 296,005 | |||||||
| Revenue earned on contracts in progress in excess of billings | 254,259 | 214,774 | |||||||||
| Amounts billed in excess of revenue earned on contracts | 13,738 | 11,860 | |||||||||
| (Thousands of dollars) | June 30, 2022 | December 31, 2021 | |||||||||
| Billed on completed contracts and contracts in progress | $ | 331,173 | $ | 292,770 | |||||||
| Other receivables | 1,408 | 3,492 | |||||||||
| Contracts receivable, gross | 332,581 | 296,262 | |||||||||
| Allowance for doubtful accounts | (148) | (257) | |||||||||
| Contracts receivable, net | $ | 332,433 | $ | 296,005 | |||||||
21 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (Thousands of dollars) | 2022 | ||||||||||
| Regulated gas transportation and storage revenues | $ | 57,786 | 119,763 | ||||||||
| NGL revenues | 1,876 | 3,369 | |||||||||
| Other revenues | 2,380 | 5,859 | |||||||||
| Revenue from contracts with customers | 62,042 | 128,991 | |||||||||
| Other revenues | 46 | 90 | |||||||||
| Total Regulated operations revenues | $ | 62,088 | 129,081 | ||||||||
22 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Gross proceeds | $ | 158,180,343 | ||||||
| Less: agent commissions | (1,581,803) | |||||||
| Net proceeds | $ | 156,598,540 | ||||||
| Number of shares sold | 2,302,407 | |||||||
| Weighted average price per share | $ | 68.70 | ||||||
23 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||
| (Thousands of dollars) | ||||||||||||||||||||||||||
| Southwest Gas Corporation: | ||||||||||||||||||||||||||
| Debentures: | ||||||||||||||||||||||||||
Notes, 6.1%, due 2041 | $ | 125,000 | $ | 126,410 | $ | 125,000 | $ | 166,380 | ||||||||||||||||||
Notes, 4.05%, due 2032 | 600,000 | 549,396 | — | — | ||||||||||||||||||||||
Notes, 3.875%, due 2022 | — | — | 250,000 | 250,603 | ||||||||||||||||||||||
Notes, 4.875%, due 2043 | 250,000 | 230,653 | 250,000 | 307,538 | ||||||||||||||||||||||
Notes, 3.8%, due 2046 | 300,000 | 235,140 | 300,000 | 329,055 | ||||||||||||||||||||||
Notes, 3.7%, due 2028 | 300,000 | 283,260 | 300,000 | 325,191 | ||||||||||||||||||||||
Notes, 4.15%, due 2049 | 300,000 | 250,461 | 300,000 | 342,030 | ||||||||||||||||||||||
Notes, 2.2%, due 2030 | 450,000 | 365,054 | 450,000 | 440,838 | ||||||||||||||||||||||
Notes, 3.18%, due 2051 | 300,000 | 211,326 | 300,000 | 292,116 | ||||||||||||||||||||||
8% Series, due 2026 | 75,000 | 84,078 | 75,000 | 92,623 | ||||||||||||||||||||||
Medium-term notes, 7.78% series, due 2022 | — | — | 25,000 | 25,122 | ||||||||||||||||||||||
Medium-term notes, 7.92% series, due 2027 | 25,000 | 27,821 | 25,000 | 31,555 | ||||||||||||||||||||||
Medium-term notes, 6.76% series, due 2027 | 7,500 | 7,839 | 7,500 | 8,949 | ||||||||||||||||||||||
| Unamortized discount and debt issuance costs | (26,627) | (19,959) | ||||||||||||||||||||||||
| 2,705,873 | 2,387,541 | |||||||||||||||||||||||||
| Revolving credit facility and commercial paper | — | — | 130,000 | 130,000 | ||||||||||||||||||||||
| Industrial development revenue bonds: | ||||||||||||||||||||||||||
| Tax-exempt Series A, due 2028 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||||||||
| 2003 Series A, due 2038 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||||||||
| 2008 Series A, due 2038 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||||||||
| 2009 Series A, due 2039 | 50,000 | 50,000 | 50,000 | 50,000 | ||||||||||||||||||||||
| Unamortized discount and debt issuance costs | (1,774) | (1,938) | ||||||||||||||||||||||||
| 198,226 | 198,062 | |||||||||||||||||||||||||
| Less: current maturities | — | (275,000) | ||||||||||||||||||||||||
| Southwest Gas Corporation total long-term debt, less current maturities | $ | 2,904,099 | $ | 2,440,603 | ||||||||||||||||||||||
| Southwest Gas Holdings, Inc.: | ||||||||||||||||||||||||||
| Centuri secured term loan facility | $ | 1,011,413 | $ | 970,329 | $ | 1,117,138 | $ | 1,117,841 | ||||||||||||||||||
| Centuri secured revolving credit facility | 145,885 | 145,759 | 103,329 | 103,749 | ||||||||||||||||||||||
MountainWest unsecured senior notes, 3.53%, due in 2028 | 101,922 | 90,430 | 102,078 | 102,078 | ||||||||||||||||||||||
MountainWest unsecured senior notes, 4.875%, due in 2041 | 199,599 | 157,894 | 199,926 | 199,926 | ||||||||||||||||||||||
MountainWest unsecured senior notes, 3.91%, due in 2038 | 147,786 | 113,703 | 147,735 | 147,735 | ||||||||||||||||||||||
| Other debt obligations | 141,653 | 129,810 | 51,665 | 50,003 | ||||||||||||||||||||||
| Unamortized discount and debt issuance costs | (22,627) | (24,466) | ||||||||||||||||||||||||
| Less: current maturities | (41,276) | (22,324) | ||||||||||||||||||||||||
| Southwest Gas Holdings, Inc. total long-term debt, less current maturities | $ | 4,588,454 | $ | 4,115,684 | ||||||||||||||||||||||
24 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
25 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
26 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | Before- Tax Amount | Tax (Expense) or Benefit (1) | Net-of- Tax Amount | Before- Tax Amount | Tax (Expense) or Benefit (1) | Net-of- Tax Amount | ||||||||||||||||||||||||||||||||
| Defined benefit pension plans: | ||||||||||||||||||||||||||||||||||||||
| Amortization of prior service cost | $ | 44 | $ | (11) | $ | 33 | $ | 240 | $ | (58) | $ | 182 | ||||||||||||||||||||||||||
| Amortization of net actuarial (gain)/loss | 8,704 | (2,089) | 6,615 | 11,148 | (2,676) | 8,472 | ||||||||||||||||||||||||||||||||
| Regulatory adjustment | (7,268) | 1,744 | (5,524) | (9,575) | 2,298 | (7,277) | ||||||||||||||||||||||||||||||||
| Pension plans other comprehensive income (loss) | 1,480 | (356) | 1,124 | 1,813 | (436) | 1,377 | ||||||||||||||||||||||||||||||||
| FSIRS (designated hedging activities): | ||||||||||||||||||||||||||||||||||||||
| Amounts reclassified into net income | — | — | — | 544 | (130) | 414 | ||||||||||||||||||||||||||||||||
| FSIRS other comprehensive income (loss) | — | — | — | 544 | (130) | 414 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) - Southwest Gas Corporation | 1,480 | (356) | 1,124 | 2,357 | (566) | 1,791 | ||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments: | ||||||||||||||||||||||||||||||||||||||
| Translation adjustments | (2,680) | — | (2,680) | 909 | — | 909 | ||||||||||||||||||||||||||||||||
| Foreign currency other comprehensive income (loss) | (2,680) | — | (2,680) | 909 | — | 909 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. | $ | (1,200) | $ | (356) | $ | (1,556) | $ | 3,266 | $ | (566) | $ | 2,700 | ||||||||||||||||||||||||||
| Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | Before- Tax Amount | Tax (Expense) or Benefit (1) | Net-of- Tax Amount | Before- Tax Amount | Tax (Expense) or Benefit (1) | Net-of- Tax Amount | ||||||||||||||||||||||||||||||||
| Defined benefit pension plans: | ||||||||||||||||||||||||||||||||||||||
| Amortization of prior service cost | $ | 88 | $ | (22) | $ | 66 | $ | 480 | $ | (116) | $ | 364 | ||||||||||||||||||||||||||
| Amortization of net actuarial (gain)/loss | 17,409 | (4,178) | 13,231 | 22,297 | (5,351) | 16,946 | ||||||||||||||||||||||||||||||||
| Regulatory adjustment | (14,536) | 3,489 | (11,047) | (19,150) | 4,596 | (14,554) | ||||||||||||||||||||||||||||||||
| Pension plans other comprehensive income (loss) | 2,961 | (711) | 2,250 | 3,627 | (871) | 2,756 | ||||||||||||||||||||||||||||||||
| FSIRS (designated hedging activities): | ||||||||||||||||||||||||||||||||||||||
| Amounts reclassified into net income | 545 | (129) | 416 | 1,088 | (261) | 827 | ||||||||||||||||||||||||||||||||
| FSIRS other comprehensive income (loss) | 545 | (129) | 416 | 1,088 | (261) | 827 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) - Southwest Gas Corporation | 3,506 | (840) | 2,666 | 4,715 | (1,132) | 3,583 | ||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments: | ||||||||||||||||||||||||||||||||||||||
| Translation adjustments | (1,433) | — | (1,433) | 1,732 | — | 1,732 | ||||||||||||||||||||||||||||||||
| Foreign currency other comprehensive income (loss) | (1,433) | — | (1,433) | 1,732 | — | 1,732 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. | $ | 2,073 | $ | (840) | $ | 1,233 | $ | 6,447 | $ | (1,132) | $ | 5,315 | ||||||||||||||||||||||||||
27 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Twelve Months Ended June 30, 2022 | Twelve Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | Before- Tax Amount | Tax (Expense) or Benefit (1) | Net-of- Tax Amount | Before- Tax Amount | Tax (Expense) or Benefit (1) | Net-of- Tax Amount | ||||||||||||||||||||||||||||||||
| Defined benefit pension plans: | ||||||||||||||||||||||||||||||||||||||
| Net actuarial gain/(loss) | $ | 59,176 | $ | (14,202) | $ | 44,974 | $ | (57,539) | $ | 13,809 | $ | (43,730) | ||||||||||||||||||||||||||
| Amortization of prior service cost | 567 | (136) | 431 | 1,057 | (255) | 802 | ||||||||||||||||||||||||||||||||
| Amortization of net actuarial (gain)/loss | 39,709 | (9,530) | 30,179 | 41,212 | (9,890) | 31,322 | ||||||||||||||||||||||||||||||||
| Regulatory adjustment | (83,580) | 20,060 | (63,520) | 5,075 | (1,219) | 3,856 | ||||||||||||||||||||||||||||||||
| Pension plans other comprehensive income (loss) | 15,872 | (3,808) | 12,064 | (10,195) | 2,445 | (7,750) | ||||||||||||||||||||||||||||||||
| FSIRS (designated hedging activities): | ||||||||||||||||||||||||||||||||||||||
| Amounts reclassified into net income | 1,631 | (390) | 1,241 | 2,662 | (639) | 2,023 | ||||||||||||||||||||||||||||||||
| FSIRS other comprehensive income (loss) | 1,631 | (390) | 1,241 | 2,662 | (639) | 2,023 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) - Southwest Gas Corporation | 17,503 | (4,198) | 13,305 | (7,533) | 1,806 | (5,727) | ||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments: | ||||||||||||||||||||||||||||||||||||||
| Translation adjustments | (3,145) | — | (3,145) | 5,656 | — | 5,656 | ||||||||||||||||||||||||||||||||
| Foreign currency other comprehensive income (loss) | (3,145) | — | (3,145) | 5,656 | — | 5,656 | ||||||||||||||||||||||||||||||||
| Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. | $ | 14,358 | $ | (4,198) | $ | 10,160 | $ | (1,877) | $ | 1,806 | $ | (71) | ||||||||||||||||||||||||||
| Defined Benefit Plans | FSIRS | Foreign Currency Items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Thousands of dollars) | Before-Tax | Tax (Expense) Benefit (4) | After-Tax | Before-Tax | Tax (Expense) Benefit (4) | After-Tax | Before-Tax | Tax (Expense) Benefit | After-Tax | AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance AOCI December 31, 2021 | $ | (61,182) | $ | 14,685 | $ | (46,497) | $ | (545) | $ | 129 | $ | (416) | $ | 152 | $ | — | $ | 152 | $ | (46,761) | ||||||||||||||||||||||||||||||||||||||||||
| Translation adjustments | — | — | — | — | — | — | (1,433) | — | (1,433) | (1,433) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | — | — | — | — | — | — | (1,433) | — | (1,433) | (1,433) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| FSIRS amount reclassified from AOCI (1) | — | — | — | 545 | (129) | 416 | — | — | — | 416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of prior service cost (2) | 88 | (22) | 66 | — | — | — | — | — | — | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of net actuarial loss (2) | 17,409 | (4,178) | 13,231 | — | — | — | — | — | — | 13,231 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Regulatory adjustment (3) | (14,536) | 3,489 | (11,047) | — | — | — | — | — | — | (11,047) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. | 2,961 | (711) | 2,250 | 545 | (129) | 416 | (1,433) | — | (1,433) | 1,233 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance AOCI June 30, 2022 | $ | (58,221) | $ | 13,974 | $ | (44,247) | $ | — | $ | — | $ | — | $ | (1,281) | $ | — | $ | (1,281) | $ | (45,528) | ||||||||||||||||||||||||||||||||||||||||||
28 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Defined Benefit Plans | FSIRS | |||||||||||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | Before-Tax | Tax (Expense) Benefit (8) | After-Tax | Before-Tax | Tax (Expense) Benefit (8) | After-Tax | AOCI | |||||||||||||||||||||||||||||||||||||
Beginning Balance AOCI December 31, 2021 | $ | (61,182) | $ | 14,685 | $ | (46,497) | $ | (545) | $ | 129 | $ | (416) | $ | (46,913) | ||||||||||||||||||||||||||||||
| FSIRS amount reclassified from AOCI (5) | — | — | — | 545 | (129) | 416 | 416 | |||||||||||||||||||||||||||||||||||||
| Amortization of prior service cost (6) | 88 | (22) | 66 | — | — | — | 66 | |||||||||||||||||||||||||||||||||||||
| Amortization of net actuarial loss (6) | 17,409 | (4,178) | 13,231 | — | — | — | 13,231 | |||||||||||||||||||||||||||||||||||||
| Regulatory adjustment (7) | (14,536) | 3,489 | (11,047) | — | — | — | (11,047) | |||||||||||||||||||||||||||||||||||||
| Net current period other comprehensive income attributable to Southwest Gas Corporation | 2,961 | (711) | 2,250 | 545 | (129) | 416 | 2,666 | |||||||||||||||||||||||||||||||||||||
Ending Balance AOCI June 30, 2022 | $ | (58,221) | $ | 13,974 | $ | (44,247) | $ | — | $ | — | $ | — | $ | (44,247) | ||||||||||||||||||||||||||||||
(Thousands of dollars) | June 30, 2022 | December 31, 2021 | ||||||||||||
| Net actuarial loss | $ | (381,601) | $ | (399,010) | ||||||||||
| Prior service cost | (1,440) | (1,528) | ||||||||||||
| Less: amount recognized in regulatory assets | 324,820 | 339,356 | ||||||||||||
| Recognized in AOCI | $ | (58,221) | $ | (61,182) | ||||||||||
(Thousands of dollars) | June 30, 2022 | December 31, 2021 | |||||||||
| Centuri accounts receivable for services provided to Southwest | $ | 16,915 | $ | 15,166 | |||||||
29 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
(Thousands of dollars) | Natural Gas Distribution | Utility Infrastructure Services | Pipeline and Storage | Other | Total | ||||||||||||||||||||||||
| Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 377,942 | $ | 672,119 | $ | 62,088 | $ | — | $ | 1,112,149 | |||||||||||||||||||
| Intersegment revenues | — | 33,971 | — | — | 33,971 | ||||||||||||||||||||||||
| Total | $ | 377,942 | $ | 706,090 | $ | 62,088 | $ | — | $ | 1,146,120 | |||||||||||||||||||
| Segment net income (loss) | $ | (2,266) | $ | 4,741 | $ | 15,076 | $ | (24,126) | $ | (6,575) | |||||||||||||||||||
| Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 292,796 | $ | 504,941 | $ | — | $ | — | $ | 797,737 | |||||||||||||||||||
| Intersegment revenues | — | 23,684 | — | — | 23,684 | ||||||||||||||||||||||||
| Total | $ | 292,796 | $ | 528,625 | $ | — | $ | — | $ | 821,421 | |||||||||||||||||||
| Segment net income (loss) | $ | 11,413 | $ | 15,116 | $ | — | $ | (1,410) | $ | 25,119 | |||||||||||||||||||
(Thousands of dollars) | Natural Gas Operations | Utility Infrastructure Services | Pipeline and Storage | Other | Total | ||||||||||||||||||||||||
| Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 1,054,481 | $ | 1,167,663 | $ | 129,081 | $ | — | $ | 2,351,225 | |||||||||||||||||||
| Intersegment revenues | — | 62,304 | — | — | 62,304 | ||||||||||||||||||||||||
| Total | $ | 1,054,481 | $ | 1,229,967 | $ | 129,081 | $ | — | $ | 2,413,529 | |||||||||||||||||||
| Segment net income (loss) | $ | 109,529 | $ | (18,745) | $ | 32,006 | $ | (33,187) | $ | 89,603 | |||||||||||||||||||
| Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 814,728 | $ | 844,713 | $ | — | $ | — | $ | 1,659,441 | |||||||||||||||||||
| Intersegment revenues | — | 47,887 | — | — | 47,887 | ||||||||||||||||||||||||
| Total | $ | 814,728 | $ | 892,600 | $ | — | $ | — | $ | 1,707,328 | |||||||||||||||||||
| Segment net income (loss) | $ | 130,128 | $ | 14,257 | $ | — | $ | (1,973) | $ | 142,412 | |||||||||||||||||||
(Thousands of dollars) | Natural Gas Distribution | Utility Infrastructure Services | Pipeline and Storage | Other | Total | ||||||||||||||||||||||||
| Twelve Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 1,761,543 | $ | 2,379,265 | $ | 129,081 | $ | — | $ | 4,269,889 | |||||||||||||||||||
| Intersegment revenues | — | 116,763 | — | — | 116,763 | ||||||||||||||||||||||||
| Total | $ | 1,761,543 | $ | 2,496,028 | $ | 129,081 | $ | — | $ | 4,386,652 | |||||||||||||||||||
| Segment net income (loss) | $ | 166,536 | $ | 7,418 | $ | 32,006 | $ | (57,990) | $ | 147,970 | |||||||||||||||||||
| Twelve Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
| Revenues from external customers | $ | 1,400,052 | $ | 1,899,961 | $ | — | $ | — | $ | 3,300,013 | |||||||||||||||||||
| Intersegment revenues | — | 112,621 | — | — | 112,621 | ||||||||||||||||||||||||
| Total | $ | 1,400,052 | $ | 2,012,582 | $ | — | $ | — | $ | 3,412,634 | |||||||||||||||||||
| Segment net income (loss) | $ | 193,705 | $ | 73,056 | $ | — | $ | (2,532) | $ | 264,229 | |||||||||||||||||||
30 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| (Millions of dollars) | Acquisition Date | Measurement Period Adjustments | Revised Acquisition Date | |||||||||||||||||
| Cash and cash equivalents | $ | 1.9 | $ | — | $ | 1.9 | ||||||||||||||
| Accounts receivable | 69.1 | (8.6) | 60.5 | |||||||||||||||||
| Contract assets | 40.1 | 7.4 | 47.5 | |||||||||||||||||
| Income taxes receivable, net | 0.7 | — | 0.7 | |||||||||||||||||
| Right of use assets under operating leases | 1.5 | — | 1.5 | |||||||||||||||||
| Prepaid expenses | 5.2 | — | 5.2 | |||||||||||||||||
| Property and equipment | 118.1 | 1.2 | 119.3 | |||||||||||||||||
| Intangible assets | 335.0 | (31.5) | 303.5 | |||||||||||||||||
| Goodwill | 446.8 | 1.8 | 448.6 | |||||||||||||||||
| Total assets acquired | 1,018.4 | $ | (29.7) | $ | 988.7 | |||||||||||||||
| Trade and other payables | 46.2 | — | 46.2 | |||||||||||||||||
| Finance lease obligations | 27.5 | 1.2 | 28.7 | |||||||||||||||||
| Contract liabilities | 12.7 | — | 12.7 | |||||||||||||||||
| Operating lease obligations | 1.5 | — | 1.5 | |||||||||||||||||
| Other liabilities | 5.3 | (1.2) | 4.1 | |||||||||||||||||
| Deferred tax liabilities | 94.8 | (23.4) | 71.4 | |||||||||||||||||
| Total liabilities assumed and noncontrolling interest | 188.0 | (23.4) | 164.6 | |||||||||||||||||
| Net assets acquired | $ | 830.4 | $ | (6.3) | $ | 824.1 | ||||||||||||||
31 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| (Millions of dollars) | Acquisition Date | Measurement Period Adjustments | Revised Acquisition Date | |||||||||||||||||
| Gas plant, net | $ | 1,047.4 | $ | — | $ | 1,047.4 | ||||||||||||||
| Other property and investments | 51.3 | — | 51.3 | |||||||||||||||||
| Cash and cash equivalents | 17.6 | — | 17.6 | |||||||||||||||||
| Accounts receivable, net of allowances | 26.6 | 2.9 | 29.5 | |||||||||||||||||
| Prepaid and other current assets | 27.4 | — | 27.4 | |||||||||||||||||
| Deferred charges and other assets | 31.1 | — | 31.1 | |||||||||||||||||
| Goodwill | 986.2 | (28.2) | 958.0 | |||||||||||||||||
| Deferred income taxes, net | 15.4 | 20.9 | 36.3 | |||||||||||||||||
| Total assets acquired | 2,203.0 | (4.4) | 2,198.6 | |||||||||||||||||
| Long-term debt | 449.7 | — | 449.7 | |||||||||||||||||
| Accounts payable | 7.0 | — | 7.0 | |||||||||||||||||
| Deferred purchased gas costs | 5.7 | — | 5.7 | |||||||||||||||||
| Customer deposits | 3.2 | — | 3.2 | |||||||||||||||||
| Accrued general taxes | 0.4 | — | 0.4 | |||||||||||||||||
| Accrued interest | 4.7 | — | 4.7 | |||||||||||||||||
| Other current liabilities | 14.5 | — | 14.5 | |||||||||||||||||
| Accumulated removal costs | 56.6 | — | 56.6 | |||||||||||||||||
| Other deferred credits | 85.6 | — | 85.6 | |||||||||||||||||
| Total liabilities assumed | 627.4 | — | 627.4 | |||||||||||||||||
| Net assets acquired | $ | 1,575.6 | $ | (4.4) | $ | 1,571.2 | ||||||||||||||
32 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
33 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
34 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Period Ended June 30, | ||||||||||||||||||||||||||||||||||||||
| Three Months | Six Months | Twelve Months | ||||||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
| Contribution to net income | ||||||||||||||||||||||||||||||||||||||
| Natural gas distribution | $ | (2,266) | $ | 11,413 | $ | 109,529 | $ | 130,128 | $ | 166,536 | $ | 193,705 | ||||||||||||||||||||||||||
| Utility infrastructure services | 4,741 | 15,116 | (18,745) | 14,257 | 7,418 | 73,056 | ||||||||||||||||||||||||||||||||
| Pipeline and storage | 15,076 | — | 32,006 | — | 32,006 | — | ||||||||||||||||||||||||||||||||
| Corporate and administrative | (24,126) | (1,410) | (33,187) | (1,973) | (57,990) | (2,532) | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | (6,575) | $ | 25,119 | $ | 89,603 | $ | 142,412 | $ | 147,970 | $ | 264,229 | ||||||||||||||||||||||||||
| Weighted average common shares | 67,045 | 58,607 | 63,909 | 58,106 | 62,022 | 57,348 | ||||||||||||||||||||||||||||||||
| Basic earnings (loss) per share | ||||||||||||||||||||||||||||||||||||||
| Consolidated | $ | (0.10) | $ | 0.43 | $ | 1.40 | $ | 2.45 | $ | 2.39 | $ | 4.61 | ||||||||||||||||||||||||||
| Natural Gas Distribution | ||||||||||||||||||||||||||||||||||||||
| Reconciliation of Gross Margin to Operating Margin (Non-GAAP measure) | ||||||||||||||||||||||||||||||||||||||
| Utility Gross Margin | $ | 99,637 | $ | 96,353 | $ | 333,519 | $ | 329,509 | $ | 574,335 | $ | 560,572 | ||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||||||||
| Operations and maintenance (excluding Admin. & General) expense | 75,721 | 62,316 | 149,143 | 126,373 | 289,930 | 248,719 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | 55,930 | 57,631 | 128,044 | 126,329 | 255,113 | 243,701 | ||||||||||||||||||||||||||||||||
| Operating margin | $ | 231,288 | $ | 216,300 | $ | 610,706 | $ | 582,211 | $ | 1,119,378 | $ | 1,052,992 | ||||||||||||||||||||||||||
35 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | ||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | ||||||||||||
| Regulated operations revenues | $ | 377,942 | $ | 292,796 | ||||||||||
| Net cost of gas sold | 146,654 | 76,496 | ||||||||||||
| Operating margin | 231,288 | 216,300 | ||||||||||||
| Operations and maintenance expense | 127,811 | 103,137 | ||||||||||||
| Depreciation and amortization | 55,930 | 57,631 | ||||||||||||
| Taxes other than income taxes | 20,098 | 19,338 | ||||||||||||
| Operating income | 27,449 | 36,194 | ||||||||||||
| Other income (deductions) | (3,433) | (1,165) | ||||||||||||
| Net interest deductions | 28,633 | 24,175 | ||||||||||||
| Income before income taxes | (4,617) | 10,854 | ||||||||||||
| Income tax benefit | (2,351) | (559) | ||||||||||||
| Contribution to consolidated results | $ | (2,266) | $ | 11,413 | ||||||||||
36 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Six Months Ended June 30, | ||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | ||||||||||||
| Gas operating revenues | $ | 1,054,481 | $ | 814,728 | ||||||||||
| Net cost of gas sold | 443,775 | 232,517 | ||||||||||||
| Operating margin | 610,706 | 582,211 | ||||||||||||
| Operations and maintenance expense | 247,447 | 209,272 | ||||||||||||
| Depreciation and amortization | 128,044 | 126,329 | ||||||||||||
| Taxes other than income taxes | 41,750 | 40,025 | ||||||||||||
| Operating income | 193,465 | 206,585 | ||||||||||||
| Other income (deductions) | (2,118) | (615) | ||||||||||||
| Net interest deductions | 55,243 | 46,341 | ||||||||||||
| Income before income taxes | 136,104 | 159,629 | ||||||||||||
| Income tax expense | 26,575 | 29,501 | ||||||||||||
| Contribution to consolidated results | $ | 109,529 | $ | 130,128 | ||||||||||
37 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Twelve Months Ended June 30, | ||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | ||||||||||||
| Regulated operations revenues | $ | 1,761,543 | $ | 1,400,052 | ||||||||||
| Net cost of gas sold | 642,165 | 347,060 | ||||||||||||
| Operating margin | 1,119,378 | 1,052,992 | ||||||||||||
| Operations and maintenance expense | 476,725 | 413,246 | ||||||||||||
| Depreciation and amortization | 255,113 | 243,701 | ||||||||||||
| Taxes other than income taxes | 82,068 | 71,765 | ||||||||||||
| Operating income | 305,472 | 324,280 | ||||||||||||
| Other income (deductions) | (6,062) | 5,493 | ||||||||||||
| Net interest deductions | 106,462 | 98,440 | ||||||||||||
| Income before income taxes | 192,948 | 231,333 | ||||||||||||
| Income tax expense | 26,412 | 37,628 | ||||||||||||
| Contribution to consolidated results | $ | 166,536 | $ | 193,705 | ||||||||||
38 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | ||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | ||||||||||||
| Utility infrastructure services revenues | $ | 706,090 | $ | 528,625 | ||||||||||
| Operating expenses: | ||||||||||||||
| Utility infrastructure services expenses | 646,193 | 478,640 | ||||||||||||
| Depreciation and amortization | 38,863 | 25,217 | ||||||||||||
| Operating income | 21,034 | 24,768 | ||||||||||||
| Other income (deductions) | (147) | (146) | ||||||||||||
| Net interest deductions | 12,598 | 1,632 | ||||||||||||
| Income before income taxes | 8,289 | 22,990 | ||||||||||||
| Income tax expense | 3,054 | 6,519 | ||||||||||||
| Net income | 5,235 | 16,471 | ||||||||||||
| Net income attributable to noncontrolling interests | 494 | 1,355 | ||||||||||||
| Contribution to consolidated results | $ | 4,741 | $ | 15,116 | ||||||||||
39 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Six Months Ended June 30, | ||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | ||||||||||||
| Utility infrastructure services revenues | $ | 1,229,967 | $ | 892,600 | ||||||||||
| Operating expenses: | ||||||||||||||
| Utility infrastructure services expenses | 1,149,425 | 814,254 | ||||||||||||
| Depreciation and amortization | 76,475 | 49,961 | ||||||||||||
| Operating income | 4,067 | 28,385 | ||||||||||||
| Other income (deductions) | (633) | (248) | ||||||||||||
| Net interest deductions | 23,729 | 3,254 | ||||||||||||
| Income (loss) before income taxes | (20,295) | 24,883 | ||||||||||||
| Income tax expense (benefit) | (3,116) | 7,719 | ||||||||||||
| Net income (loss) | (17,179) | 17,164 | ||||||||||||
| Net income attributable to noncontrolling interest | 1,566 | 2,907 | ||||||||||||
| Contribution to consolidated results | $ | (18,745) | $ | 14,257 | ||||||||||
40 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Twelve Months Ended June 30, | ||||||||||||||
| (Thousands of dollars) | 2022 | 2021 | ||||||||||||
| Utility infrastructure services revenues | $ | 2,496,028 | $ | 2,012,582 | ||||||||||
| Operating expenses: | ||||||||||||||
| Utility infrastructure services expenses | 2,290,638 | 1,794,145 | ||||||||||||
| Depreciation and amortization | 144,157 | 99,746 | ||||||||||||
| Operating income | 61,233 | 118,691 | ||||||||||||
| Other income (deductions) | 682 | (300) | ||||||||||||
| Net interest deductions | 41,474 | 7,384 | ||||||||||||
| Income before income taxes | 20,441 | 111,007 | ||||||||||||
| Income tax expense | 7,941 | 30,762 | ||||||||||||
| Net income | 12,500 | 80,245 | ||||||||||||
| Net income attributable to noncontrolling interests | 5,082 | 7,189 | ||||||||||||
| Contribution to consolidated results | $ | 7,418 | $ | 73,056 | ||||||||||
41 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (Thousands of dollars) | 2022 | |||||||||||||
| Regulated operations revenues | $ | 62,088 | $ | 129,081 | ||||||||||
| Operating expenses: | ||||||||||||||
| Net cost of gas sold | 1,206 | 3,003 | ||||||||||||
| Operations and maintenance expense | 24,741 | 49,053 | ||||||||||||
| Depreciation and amortization | 13,217 | 26,137 | ||||||||||||
| Taxes other than income taxes | 2,508 | 5,672 | ||||||||||||
| Operating income | 20,416 | 45,216 | ||||||||||||
| Other income (deductions) | 795 | 1,338 | ||||||||||||
| Net interest deductions | 4,514 | 8,896 | ||||||||||||
| Income before income taxes | 16,697 | 37,658 | ||||||||||||
| Income tax expense | 1,621 | 5,652 | ||||||||||||
| Contribution to consolidated results | $ | 15,076 | $ | 32,006 | ||||||||||
42 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
43 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
44 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
45 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| (Thousands of dollars) | June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||||||||||
| Arizona | $ | 254,319 | $ | 214,387 | $ | 194,107 | ||||||||||||||
| Northern Nevada | 10,488 | 12,632 | 417 | |||||||||||||||||
| Southern Nevada | 89,426 | 55,967 | 35,865 | |||||||||||||||||
| California | 338 | 8,159 | 4,715 | |||||||||||||||||
| $ | 354,571 | $ | 291,145 | $ | 235,104 | |||||||||||||||
46 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
47 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
48 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
49 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
50 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
51 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
52 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
53 | ||||||||
| SOUTHWEST GAS HOLDINGS, INC. | Form 10-Q | |||||||
| SOUTHWEST GAS CORPORATION | June 30, 2022 | |||||||
| Southwest Gas Holdings, Inc. | ||
| (Registrant) | ||
| /s/ LORI L. COLVIN | ||
| Lori L. Colvin | ||
| Vice President/Controller and Chief Accounting Officer | ||
| Southwest Gas Corporation | ||
| (Registrant) | ||
| /s/ LORI L. COLVIN | ||
| Lori L. Colvin | ||
| Vice President/Controller and Chief Accounting Officer | ||
54 | ||||||||
| EXECUTIVE | SOUTHWEST GAS CORPORATION | ||||
/s/ John Hester____________ | By:_/s/ Sharon Braddy-McKoy______ | ||||
| John Hester | Sharon Braddy-McKoy | ||||
| Chief Human Resources Officer | |||||
| June 3, 2022 | June 6, 2022______________________ | ||||
| Date | Date | ||||
| SOUTHWEST GAS HOLDINGS, INC. | |||||
By:_/s/ Karen S. Haller__________ | |||||
| Karen S. Haller | |||||
| President/Chief Executive Officer | |||||
June 6, 2022___________________ | |||||
| Date | |||||
| 6. | Forfeiture of Shares. | ||||
| 7. | Removal of Restrictions. | ||||
| 8. | Credit of Dividend Equivalents. | ||||
| /s/ KAREN S. HALLER | |||||
| Karen S. Haller | |||||
| President and Chief Executive Officer | |||||
| Southwest Gas Holdings, Inc. | |||||
| /s/ GREGORY J. PETERSON | |||||
| Gregory J. Peterson | |||||
| Senior Vice President/Chief Financial Officer | |||||
| Southwest Gas Holdings, Inc. | |||||
| /s/ KAREN S. HALLER | |||||
| Karen S. Haller | |||||
| Chief Executive Officer | |||||
| Southwest Gas Corporation | |||||
| /s/ GREGORY J. PETERSON | |||||
| Gregory J. Peterson | |||||
| Senior Vice President/Chief Financial Officer | |||||
| Southwest Gas Corporation | |||||
| /s/ Karen S. Haller | |||||
| Karen S. Haller President and Chief Executive Officer | |||||
| /s/ Gregory J. Peterson | |||||
| Gregory J. Peterson Senior Vice President/Chief Financial Officer | |||||
| /s/ Karen S. Haller | |||||
| Karen S. Haller Chief Executive Officer | |||||
| /s/ Gregory J. Peterson | |||||
| Gregory J. Peterson Senior Vice President/Chief Financial Officer | |||||