8-K
Southwest Gas Holdings, Inc. (SWX)
8-K
2022-05-13
For: 2022-05-13
View Original
Added on
April 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 13, 2022
SOUTHWEST GAS HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-37976 | 81-3881866 |
|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
8360 S. Durango Drive
Post Office Box 98510
Las Vegas, Nevada 89193-8510
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702) 876‑7237
| Securities registered pursuant to Section 12(b) of the Act: | ||
|---|---|---|
| Title of each class | Trading Symbol | Name of each exchange on which registered |
| Southwest Gas Holdings, Inc. Common Stock, $1 Par Value | SWX | New York Stock Exchange |
| Preferred Stock Purchase Rights | N/A | New York Stock Exchange |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure.
On May 13, 2022 Southwest Gas Holdings, Inc. (the “Company”) released summary statistical information for each of the ten years in the period ended December 31, 2021. A copy of this information is attached hereto as Exhibit 99.
This Form 8-K and the attached exhibit are provided under Item 7.01 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SOUTHWEST GAS HOLDINGS, INC. | |
|---|---|
| Date: May 13, 2022 | /s/ LORI L. COLVIN |
| Lori L. Colvin | |
| Vice President/Controller/Chief Accounting Officer |
EXHIBIT INDEX
Exhibit
No. Description
99 Summary statistical information as of December 31,2021released on May 13,2022.
Document
| NATURAL GAS DISTRIBUTION SEGMENT | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| RATEMAKING JURISDICTIONS AND REGULATORY AGENCIES | |||||||||
| Southwest Gas Corporation (Southwest Gas) is subject to regulation by the Arizona Corporation Commission (ACC), the Public Utilities Commission of Nevada (PUCN), and the California Public Utilities Commission (CPUC). These commissions regulate public utility rates, practices, facilities, and service territories in their respective states. | |||||||||
| The Federal Energy Regulatory Commission (FERC) regulates a wholly owned subsidiary of Southwest Gas, Great Basin Gas Transmission Company (Great Basin), and the rates it charges for transportation of gas directly to certain end-users and the transportation and storage of gas to various local distribution companies for resale in northern Nevada and northern California. | |||||||||
| Shown below is a list of Southwest Gas' ratemaking jurisdictions and the corresponding regulatory agency having jurisdiction: | |||||||||
| Ratemaking Jurisdiction | Regulatory Agency | ||||||||
| Arizona: | Arizona Corporation Commission | ||||||||
| 1200 West Washington | Web site: | www.azcc.gov | |||||||
| Phoenix, AZ 85007-2996 | |||||||||
| (602) 542-4251 | FAX: | (602) 542-4100 | |||||||
| California: | California Public Utilities Commission | ||||||||
| Northern | 505 Van Ness Avenue | Web site: | www.cpuc.ca.gov | ||||||
| Southern | San Francisco, CA 94102-3298 | ||||||||
| South Lake Tahoe | (415) 703-2782 | FAX: | (415) 703-1758 | ||||||
| Nevada: | Public Utilities Commission of Nevada | ||||||||
| Northern | 1150 East William Street | Web site: | http://puc.nv.gov | ||||||
| Southern | Carson City, NV 89701-3109 | ||||||||
| (775) 684-6101 | FAX: | (775) 684-6110 | |||||||
| Nevada/California: | Federal Energy Regulatory Commission | ||||||||
| Great Basin | 888 First Street, N.E. | Web site: | www.ferc.gov | ||||||
| Washington, DC 20426 | |||||||||
| (202) 502-8400 | FAX: | (202) 208-2268 | |||||||
| A list of the commissioners appointed or elected to the various regulatory agencies follows this page. | |||||||||
| SUMMARY OF COMMISSIONER STATUS BY JURISDICTION | |||||||||
| --- | --- | --- | --- | --- | |||||
| March 2022 | |||||||||
| ARIZONA | |||||||||
| Five members, elected statewide to four-year staggered terms. Governor appoints replacements, if position is vacated. | |||||||||
| Chairwoman Lea Márquez Peterson | Rep. | Term ends | 01/01/2025 | ||||||
| Commissioner Sandra Kennedy | Dem. | Term ends | 01/01/2023 | ||||||
| Commissioner Justin Olson | Rep. | Term ends | 01/01/2023 | ||||||
| Commissioner Anna Tovar | Dem. | Term ends | 01/01/2025 | ||||||
| Commissioner Jim O’Connor | Rep. | Term ends | 01/01/2025 | ||||||
| Executive Director Matt Neubert | |||||||||
| CALIFORNIA | |||||||||
| Five members, appointed to six-year staggered terms by Governor and confirmed by Senate. | |||||||||
| President Alice Bushing Reynolds | Dem. | Term ends | 12/31/2026 | ||||||
| Commissioner John Reynolds | Dem. | Term ends | 12/31/2022 | ||||||
| Commissioner Clifford L. Rechtschaffen | Dem. | Term ends | 12/31/2022 | ||||||
| Commissioner Genevieve A. Shiroma | Dem. | Term ends | 12/31/2024 | ||||||
| Commissioner Darcie Houck | Dem. | Term ends | 12/31/2026 | ||||||
| Executive Director Rachel Peterson | |||||||||
| NEVADA | |||||||||
| Three members, appointed to four-year staggered terms by Governor; no confirmation required. | |||||||||
| Chair Hayley Williamson | Dem. | Term ends | 04/29/2023 | ||||||
| Commissioner C.J. Manthe | Rep. | Term ends | 09/30/2025 | ||||||
| Commissioner Tammy Cordova | N.P. | Term ends | 06/21/2024 | ||||||
| Executive Director Stephanie Mullen | |||||||||
| FERC | |||||||||
| Up to five members, appointed to five-year staggered terms by President and confirmed by U.S. Senate. | |||||||||
| Chairman Richard Glick | Dem. | Term ends | 06/30/2022 | ||||||
| Commissioner James Danly | Rep. | Term ends | 06/30/2023 | ||||||
| Commissioner Allison Clements | Dem. | Term ends | 06/30/2024 | ||||||
| Commissioner Mark C. Christie | Rep. | Term ends | 06/30/2025 | ||||||
| Commissioner Willie L. Phillips | Dem. | Term ends | 06/30/2026 | ||||||
| Secretary Kimberly D. Bose | |||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| SUMMARY OF KEY REGULATORY FILINGS | |||||||||
| ADDITIONAL | ADDITIONAL | PERCENT | OVERALL | RATE OF | |||||
| MARGIN | MARGIN | AUTHORIZED | RATE OF | RETURN ON | COMMON | ||||
| TEST | FILING | EFFECTIVE | REQUESTED | AUTHORIZED | OF REQUESTED | RETURN | COMMON EQUITY | EQUITY | |
| JURISDICTION | PERIOD | DATE | DATE | ($mm) | ($mm) [2] | AMOUNTS | GRANTED | GRANTED | RATIO |
| NEVADA | |||||||||
| Docket No. 20-02023 (NNV) | 11/30/19 | 02/26/20 | 10/07/20 | 2.7 | 0.6 | 22 | 6.75 | 9.25 | 49.26 |
| Docket No. 20-02023 (SNV) | 11/30/19 | 02/26/20 | 10/07/20 | 35.8 | 22.7 | 63 | 6.52 | 9.25 | 49.26 |
| Docket No. 20-05028 (SNV) [3] | 05/27/20 | 01/01/21 | (1.8) | (1.8) | 100 | 6.52 | 9.25 | 49.26 | |
| Docket No. 21-09034 (SNV) | 09/30/21 | 01/01/22 | (1.7) | (1.7) | 100 | 6.52 | 9.25 | 49.26 | |
| Docket No. 21-09034 (NNV) | 09/30/21 | 01/01/22 | (0.2) | (0.2) | 100 | 6.75 | 9.25 | 49.26 | |
| Docket No. 21-09001 (SNV) [4] | 05/31/21 | 09/01/21 | 04/01/22 | 21.3 | 12.8 | 60 | 6.30 | 9.40 | 50.00 |
| Docket No. 21-09001 (NNV) [4] | 05/31/21 | 09/01/21 | 04/01/22 | 2.5 | 1.3 | 53 | 6.56 | 9.40 | 50.00 |
| ARIZONA | |||||||||
| Docket No. G-01551A-16-0107 | 11/30/15 | 05/02/16 | 04/01/17 | 32.0 | 16.0 | 50 | 7.42 | 9.50 | 51.70 |
| Docket No. G-01551A-16-0107 | 02/28/18 | 09/01/18 | 2.4 | 1.7 | 71 | 7.42 | 9.50 | 51.70 | |
| Docket No. G-01551A-16-0107 | 02/28/18 | 09/01/18 | 3.0 | 2.4 | 80 | 5.71 | 9.50 | 51.70 | |
| Docket No. G-01551A-16-0107 | 02/27/19 | 11/07/19 | 3.2 | 0.0 | 50 | 7.42 | 9.50 | 51.70 | |
| Docket No. G-01551A-16-0107 | 02/27/19 | 11/07/19 | 9.5 | 0.0 | 30 | 5.71 | 9.50 | 51.70 | |
| Docket No. G-01551A-19-0055 | 01/31/19 | 05/01/19 | 01/01/21 | 80.7 | 36.8 | 46 | 7.03 | 9.10 | 51.10 |
| Docket No. G-01551A-19-0055 | 05/28/21 | 11/09/21 | 13.7 | 13.7 | 100 | 7.42 | 9.50 | 51.70 | |
| Docket No. G-01551A-19-0055 [5] | 05/28/21 | 11/09/21 | 59.9 | 59.9 | 100 | 5.71 | 9.50 | 51.70 | |
| CALIFORNIA | |||||||||
| Advice Letter No. 1058 (SCA) | 11/30/17 | 01/01/18 | 2.0 | 2.0 | 100 | 6.83 | 10.10 | 55.00 | |
| Advice Letter No. 1058 (NCA/SLT) | 11/30/17 | 01/01/18 | 0.8 | 0.8 | 100 | 8.18 | 10.10 | 55.00 | |
| Advice Letter No. 1086 (SCA) | 11/30/18 | 01/01/19 | 2.0 | 2.0 | 100 | 6.83 | 10.10 | 55.00 | |
| Advice Letter No. 1086 (NCA/SLT) | 11/30/18 | 01/01/19 | 0.8 | 0.8 | 100 | 8.18 | 10.10 | 55.00 | |
| Application 19-08-015 (SCA) | 12/31/21 | 08/30/19 | 04/01/21 | 6.8 | 3.0 | 44 | 7.11 | 10.00 | 52.00 |
| Application 19-08-015 (NCA/SLT) | 12/31/21 | 08/30/19 | 04/01/21 | 6.0 | 3.4 | 57 | 7.44 | 10.00 | 52.00 |
| Advice Letter No. 1117 (SCA) | 11/27/19 | 01/01/20 | 2.1 | 2.1 | 100 | 6.83 | 10.10 | 55.00 | |
| Advice Letter No. 1117 (NCA/SLT) | 11/27/19 | 01/01/20 | 0.8 | 0.8 | 100 | 8.18 | 10.10 | 55.00 | |
| Advice Letter No. 1191 (SCA) | 11/24/21 | 01/01/22 | 2.2 | 2.2 | 100 | 7.11 | 10.00 | 52.00 | |
| Advice Letter No. 1191 (NCA/SLT) | 11/24/21 | 01/01/22 | 0.9 | 0.9 | 100 | 7.44 | 10.00 | 52.00 | |
| Advice Letter No. 1195 (NCA) | 12/22/21 | 02/01/22 | 0.1 | 0.1 | 100 | 7.44 | 10.00 | 52.00 | |
| FERC | |||||||||
| Docket No. RP14-540 | 08/31/14 | 02/28/14 | 09/01/14 | 9.0 | 2.4 | 27 | [6] | [6] | [6] |
| Docket No. CP14-509 (2015 Elko Expansion) | 06/27/14 | 01/06/16 | 6.0 | 6.0 | 100 | [7] | [7] | [7] | |
| Docket No. CP17-471 (2018 Expansion) | 07/05/17 | 11/26/18 | 3.3 | 3.3 | 100 | [7] | [7] | [7] | |
| Docket No. RP19-1291 | 11/30/19 | 05/31/19 | 12/01/19 | 7.1 | (0.7) | NM | [8] | [8] | [8] |
| [1] GRC = General Rate Case; VIER = Variable Interest Expense Recovery Mechanism; GIR=Gas Infrastructure Replacement; COYL=Customer Owned Yard Lines; | |||||||||
| Attrition = Annual Attrition Filing and Automatic Trigger Mechanism for Cost of Capital; VSP = Vintage Steel Pipe. | |||||||||
| [2] Authorized amounts do not include the effect of lower depreciation rates, which contribute to an increase in operating income. | |||||||||
| [3] Represents the net change in margin resulting from the Average Variable Interest Rate (AVIR). | |||||||||
| [4] Additional Margin Requested reflects amounts requested at certification. Additional Margin Authorized excludes 4.9MM associated with non cost-of-service COVID regulatory asset and contract revenues adjustment. | |||||||||
| [5] Effective 11/1/2021, rate to recover revenue begins 3/1/2022 with recovery over 3 years. | |||||||||
| [6] Stipulation - Not Identified in Order. Decision authorized a pre-tax rate of return of 11.50 percent. | |||||||||
| [7] Stipulation in Docket No. RP14-540 authorized a pre-tax rate of return of 11.50 percent. | |||||||||
| [8] Stipulation - Not Identified in Order. Stipulation authorized pre-tax rate of return of 9.90 percent. |
All values are in US Dollars.
| SUMMARY OPERATING RESULTS | YEAR ENDED DECEMBER 31, | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands, except per share amounts) | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||
| Results of Consolidated Operations | ||||||||||||||||||||
| Contribution to net income - natural gas distribution | $ | 187,135 | $ | 159,118 | $ | 163,171 | $ | 138,842 | $ | 156,818 | $ | 119,423 | $ | 111,625 | $ | 116,872 | $ | 124,169 | $ | 116,619 |
| Contribution to net income - utility infrastructure services* | 40,420 | 74,862 | 52,404 | 44,977 | 38,360 | 32,618 | 26,692 | 24,254 | 21,151 | 16,712 | ||||||||||
| Contribution to net income - corporate and administrative* | (26,776) | (1,656) | (1,639) | (1,542) | (1,337) | — | — | — | — | — | ||||||||||
| Net income * | $ | 200,779 | $ | 232,324 | $ | 213,936 | $ | 182,277 | $ | 193,841 | $ | 152,041 | $ | 138,317 | $ | 141,126 | $ | 145,320 | $ | 133,331 |
| Basic earnings per share | $ | 3.39 | $ | 4.15 | $ | 3.94 | $ | 3.69 | $ | 4.04 | $ | 3.20 | $ | 2.94 | $ | 3.04 | $ | 3.14 | $ | 2.89 |
| Diluted earnings per share | $ | 3.39 | $ | 4.14 | $ | 3.94 | $ | 3.68 | $ | 4.04 | $ | 3.18 | $ | 2.92 | $ | 3.01 | $ | 3.11 | $ | 2.86 |
| Average common shares | 59,145 | 55,998 | 54,245 | 49,419 | 47,965 | 47,469 | 46,992 | 46,494 | 46,318 | 46,115 | ||||||||||
| Average shares (assuming dilution) | 59,259 | 56,076 | 54,312 | 49,476 | 47,991 | 47,814 | 47,383 | 46,944 | 46,758 | 46,555 | ||||||||||
| Results of Natural Gas Distribution | ||||||||||||||||||||
| Gas operating revenues | $ | 1,521,790 | $ | 1,350,585 | $ | 1,368,939 | $ | 1,357,728 | $ | 1,302,308 | $ | 1,321,412 | $ | 1,454,639 | $ | 1,382,087 | $ | 1,300,154 | $ | 1,321,728 |
| Net cost of gas sold | 430,907 | 342,837 | 385,164 | 419,388 | 355,045 | 397,121 | 563,809 | 505,356 | 436,001 | 479,602 | ||||||||||
| Operating margin | 1,090,883 | 1,007,748 | 983,775 | 938,340 | 947,263 | 924,291 | 890,830 | 876,731 | 864,153 | 842,126 | ||||||||||
| Operations and maintenance expense ** | 438,550 | 406,382 | 422,174 | 404,813 | 391,321 | 381,964 | 369,832 | 368,313 | 361,422 | 349,257 | ||||||||||
| Depreciation and amortization | 253,398 | 235,295 | 215,620 | 191,816 | 201,922 | 233,463 | 213,455 | 204,144 | 193,848 | 186,035 | ||||||||||
| Taxes other than income taxes | 80,343 | 63,460 | 62,328 | 59,898 | 57,946 | 52,376 | 49,393 | 47,252 | 45,551 | 41,728 | ||||||||||
| Operating income | 318,592 | 302,611 | 283,653 | 281,813 | 296,074 | 256,488 | 258,150 | 257,022 | 263,332 | 265,106 | ||||||||||
| Other income (deductions)** | (4,559) | (6,590) | 9,517 | (17,240) | (6,388) | (11,484) | (21,075) | (8,254) | (11,231) | (16,557) | ||||||||||
| Net interest deductions | 97,560 | 101,148 | 95,026 | 81,740 | 69,733 | 66,997 | 64,095 | 68,299 | 62,555 | 66,957 | ||||||||||
| Income before income taxes | 216,473 | 194,873 | 198,144 | 182,833 | 219,953 | 178,007 | 172,980 | 180,469 | 189,546 | 181,592 | ||||||||||
| Income tax expense | 29,338 | 35,755 | 34,973 | 43,991 | 63,135 | 58,584 | 61,355 | 63,597 | 65,377 | 64,973 | ||||||||||
| Contribution to consolidated net income | $ | 187,135 | $ | 159,118 | $ | 163,171 | $ | 138,842 | $ | 156,818 | $ | 119,423 | $ | 111,625 | $ | 116,872 | $ | 124,169 | $ | 116,619 |
* Reflects acquisition-related deal and financing costs associated with Questar Pipelines and Riggs Distler acquisitions in 2021.
** To reflect the impacts of the Company's 2018 adoption of the Financial Accounting Standards Board ("FASB") update, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost," non-service components of these costs have been reclassified from this line item (as a practical expedient) to Other income (deductions) for 2012-2017, with no impact to earnings overall.
| SUMMARY CONSOLIDATED BALANCE SHEET | AT DECEMBER 31, | |||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In thousands) | 2021* | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||
| Net regulated operations plant | $ | 7,594,022 | $ | 6,176,081 | $ | 5,685,197 | $ | 5,093,238 | $ | 4,523,650 | $ | 4,131,971 | $ | 3,891,085 | $ | 3,658,383 | $ | 3,486,108 | $ | 3,343,794 | ||||||||||
| Other property and investments | 1,316,479 | 834,245 | 784,173 | 623,551 | 428,180 | 342,343 | 313,531 | 326,743 | 260,871 | 242,096 | ||||||||||||||||||||
| Restricted cash | — | — | — | — | — | — | — | 821 | — | — | ||||||||||||||||||||
| Current assets | 1,614,767 | 871,013 | 859,856 | 839,769 | 657,032 | 533,307 | 558,174 | 606,611 | 494,672 | 458,417 | ||||||||||||||||||||
| Noncurrent assets | 2,239,989 | 854,514 | 840,822 | 801,171 | 628,204 | 573,505 | 595,895 | 615,739 | 323,523 | 443,750 | ||||||||||||||||||||
| Total assets | $ | 12,765,257 | $ | 8,735,853 | $ | 8,170,048 | $ | 7,357,729 | $ | 6,237,066 | $ | 5,581,126 | $ | 5,358,685 | $ | 5,208,297 | $ | 4,565,174 | $ | 4,488,057 | ||||||||||
| CAPITALIZATION | ||||||||||||||||||||||||||||||
| Common stock equity | $ | 1,886,268 | $ | 1,667,978 | $ | 1,523,574 | $ | 1,360,425 | $ | 1,005,052 | $ | 952,235 | $ | 945,455 | $ | 899,534 | $ | 888,507 | $ | 876,555 | ||||||||||
| Accumulated other comprehensive income (loss), net | (46,761) | (61,003) | (56,732) | (52,668) | (47,682) | (48,008) | (50,268) | (50,175) | (41,698) | (50,745) | ||||||||||||||||||||
| Retained earnings | 1,114,313 | 1,067,978 | 1,039,072 | 944,285 | 857,398 | 759,263 | 699,221 | 639,164 | 567,714 | 484,369 | ||||||||||||||||||||
| Noncontrolling interests | — | — | — | (452) | (2,365) | (2,217) | (2,083) | (2,257) | (2,128) | (1,681) | ||||||||||||||||||||
| Redeemable noncontrolling interests | 196,717 | 165,716 | 84,542 | 81,831 | — | 22,590 | 16,108 | 20,042 | — | — | ||||||||||||||||||||
| Long-term debt, less current maturities | 4,115,684 | 2,732,200 | 2,300,482 | 2,107,258 | 1,798,576 | 1,549,983 | 1,551,204 | 1,631,374 | 1,381,327 | 1,268,373 | ||||||||||||||||||||
| Total capitalization | $ | 7,266,221 | $ | 5,572,869 | $ | 4,890,938 | $ | 4,440,679 | $ | 3,610,979 | $ | 3,233,846 | $ | 3,159,637 | $ | 3,137,682 | $ | 2,793,722 | $ | 2,576,871 | ||||||||||
| LIABILITIES | ||||||||||||||||||||||||||||||
| Current maturities of long-term debt | $ | 297,324 | $ | 40,433 | $ | 163,512 | $ | 33,060 | $ | 25,346 | $ | 50,101 | $ | 19,475 | $ | 19,192 | $ | 11,105 | $ | 50,137 | ||||||||||
| Current liabilities | 2,814,725 | 871,534 | 916,349 | 905,585 | 790,535 | 578,274 | 515,570 | 450,925 | 423,059 | 484,992 | ||||||||||||||||||||
| Deferred income taxes and investment tax credits | 768,868 | 647,453 | 599,840 | 529,201 | 476,960 | 840,653 | 769,445 | 723,688 | 674,411 | 616,184 | ||||||||||||||||||||
| Other deferred credits and other long-term liabilities | 1,618,119 | 1,603,564 | 1,599,409 | 1,449,204 | 1,333,246 | 878,252 | 894,558 | 876,810 | 662,877 | 759,873 | ||||||||||||||||||||
| Total liabilities | 5,499,036 | 3,162,984 | 3,279,110 | 2,917,050 | 2,626,087 | 2,347,280 | 2,199,048 | 2,070,615 | 1,771,452 | 1,911,186 | ||||||||||||||||||||
| Total capitalization and liabilities | $ | 12,765,257 | $ | 8,735,853 | $ | 8,170,048 | $ | 7,357,729 | $ | 6,237,066 | $ | 5,581,126 | $ | 5,358,685 | $ | 5,208,297 | $ | 4,565,174 | $ | 4,488,057 | ||||||||||
| *Reflects the acquisition of Dominion Energy Questar Pipeline, LLC and related entities, and the parent company of Riggs Distler, Inc., which closed on December 31, 2021 and August 27, 2021, respectively. Other smaller acquisitions are reflected, where relevant, in earlier periods. | ||||||||||||||||||||||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT CASH FLOWS | YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||
| (In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| From operating activities | $ | 25,245 | $ | 424,061 | $ | 367,794 | $ | 382,502 | $ | 309,216 | $ | 507,224 | $ | 497,500 | $ | 288,534 | $ | 265,290 | $ | 344,441 | ||||||||||
| From investing activities | (586,042) | (677,412) | (759,842) | (669,392) | (557,384) | (446,238) | (416,727) | (328,645) | (304,189) | (296,886) | ||||||||||||||||||||
| From financing activities | 558,418 | 253,932 | 400,575 | 280,906 | 267,090 | (63,339) | (74,159) | 23,413 | 44,947 | (43,453) | ||||||||||||||||||||
| Net change in cash | $ | (2,379) | $ | 581 | $ | 8,527 | $ | (5,984) | $ | 18,922 | $ | (2,353) | $ | 6,614 | $ | (16,698) | $ | 6,048 | $ | 4,102 | ||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| REGULATED OPERATIONS PLANT | AT DECEMBER 31, | |||||||||||||||||||||||||||||
| (In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| Distribution | $ | 7,506,489 | $ | 7,078,656 | $ | 6,581,043 | $ | 6,049,380 | $ | 5,600,769 | $ | 5,198,531 | $ | 4,935,730 | $ | 4,655,640 | $ | 4,410,598 | $ | 4,224,560 | ||||||||||
| General | 496,643 | 515,879 | 467,274 | 416,643 | 396,252 | 382,084 | 365,865 | 356,072 | 324,490 | 310,936 | ||||||||||||||||||||
| Transmission | 397,590 | 400,657 | 391,864 | 386,159 | 363,396 | 349,981 | 312,996 | 312,300 | 313,306 | 301,505 | ||||||||||||||||||||
| Intangible | 383,307 | 273,811 | 259,097 | 243,694 | 232,566 | 226,754 | 205,782 | 198,457 | 171,193 | 150,396 | ||||||||||||||||||||
| Construction work in progress | 183,485 | 211,429 | 185,026 | 193,028 | 125,248 | 111,177 | 119,805 | 74,332 | 101,413 | 74,178 | ||||||||||||||||||||
| Other | 117,546 | 114,997 | 113,943 | 38,363 | 36,661 | 36,410 | 34,914 | 34,680 | 33,612 | 33,014 | ||||||||||||||||||||
| Accumulated depreciation & amortization | (2,538,508) | (2,419,348) | (2,313,050) | (2,234,029) | (2,231,242) | (2,172,966) | (2,084,007) | (1,973,098) | (1,868,504) | (1,750,795) | ||||||||||||||||||||
| Net regulated operations plant | $ | 6,546,552 | $ | 6,176,081 | $ | 5,685,197 | $ | 5,093,238 | $ | 4,523,650 | $ | 4,131,971 | $ | 3,891,085 | $ | 3,658,383 | $ | 3,486,108 | $ | 3,343,794 | ||||||||||
| OPERATIONS & MAINTENANCE EXPENSES | YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||
| (In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| Distribution | $ | 184,674 | $ | 175,408 | $ | 184,193 | $ | 185,176 | $ | 186,860 | $ | 188,064 | $ | 181,249 | $ | 170,377 | $ | 174,129 | $ | 166,356 | ||||||||||
| Administrative and general* | 171,390 | 162,659 | 167,553 | 151,157 | 135,569 | 123,246 | 114,501 | 122,532 | 107,874 | 104,152 | ||||||||||||||||||||
| Customer accounts | 60,050 | 48,466 | 49,057 | 47,719 | 48,937 | 51,024 | 51,071 | 50,200 | 53,809 | 55,894 | ||||||||||||||||||||
| Transmission | 14,054 | 12,599 | 15,938 | 15,020 | 13,744 | 13,666 | 14,779 | 15,792 | 15,864 | 14,207 | ||||||||||||||||||||
| Production and storage expenses | 7,247 | 6,642 | 4,869 | 4,885 | 5,256 | 4,889 | 5,052 | 4,960 | 5,054 | 4,500 | ||||||||||||||||||||
| Customer service and informational | 1,076 | 575 | 516 | 827 | 935 | 1,050 | 3,165 | 4,440 | 4,677 | 4,142 | ||||||||||||||||||||
| Sales | 59 | 33 | 48 | 29 | 20 | 25 | 15 | 12 | 15 | 6 | ||||||||||||||||||||
| Total operations and maintenance expenses* | $ | 438,550 | $ | 406,382 | $ | 422,174 | $ | 404,813 | $ | 391,321 | $ | 381,964 | $ | 369,832 | $ | 368,313 | $ | 361,422 | $ | 349,257 | ||||||||||
| * To reflect the impacts of the Company's 2018 adoption of the update to FASB Topic 715, all periods presented exclude non-service components of net periodic pension and other post-retirement benefit cost. For 2012-2017, these costs have been reclassified from Administrative and general expense (as a practical expedient) to Other income (deductions). Non-service cost in periods prior to 2018 were initially recognized in a number of categories of expense, and to a more limited extent, in regulated operations plant on the balance sheet, through an overhead loading process. | ||||||||||||||||||||||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| AT DECEMBER 31, | ||||||||||||||||||||||||||||||
| CUSTOMERS BY CLASS | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| Residential | 2,072,889 | 2,039,226 | 1,997,418 | 1,964,355 | 1,932,332 | 1,902,227 | 1,874,852 | 1,849,555 | 1,824,008 | 1,796,929 | ||||||||||||||||||||
| Small commercial | 83,242 | 82,036 | 81,603 | 80,676 | 80,047 | 79,437 | 78,833 | 78,230 | 77,848 | 76,800 | ||||||||||||||||||||
| Large commercial | 977 | 990 | 987 | 992 | 1,016 | 1,042 | 1,043 | 1,086 | 1,076 | 1,118 | ||||||||||||||||||||
| Industrial / Other | 373 | 342 | 336 | 329 | 332 | 318 | 318 | 341 | 333 | 308 | ||||||||||||||||||||
| Transportation | 1,038 | 989 | 958 | 955 | 929 | 905 | 879 | 833 | 812 | 739 | ||||||||||||||||||||
| Total customers* | 2,158,519 | 2,123,583 | 2,081,302 | 2,047,307 | 2,014,656 | 1,983,929 | 1,955,925 | 1,930,045 | 1,904,077 | 1,875,894 | ||||||||||||||||||||
| Annual customer growth rate* | 1.7 | % | 1.8 | % | 1.7 | % | 1.6 | % | 1.5 | % | 1.4 | % | 1.3 | % | 1.4 | % | 1.5 | % | 0.9 | % | ||||||||||
| SYSTEM THROUGHPUT BY CLASS | YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||
| (In thousands of dekatherms) | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| Residential | 76,811 | 80,068 | 81,839 | 69,702 | 67,427 | 68,463 | 65,542 | 61,738 | 74,133 | 65,505 | ||||||||||||||||||||
| Small commercial | 31,051 | 29,316 | 33,322 | 30,534 | 29,767 | 29,452 | 28,512 | 27,658 | 29,804 | 27,067 | ||||||||||||||||||||
| Large commercial | 9,490 | 9,124 | 9,933 | 9,255 | 9,256 | 9,095 | 9,228 | 9,439 | 10,276 | 11,658 | ||||||||||||||||||||
| Industrial / Other | 5,104 | 5,316 | 4,255 | 3,775 | 3,382 | 3,028 | 3,097 | 3,238 | 5,021 | 4,783 | ||||||||||||||||||||
| Transportation | 94,955 | 98,328 | 100,799 | 105,055 | 97,441 | 97,056 | 103,571 | 90,669 | 103,792 | 99,809 | ||||||||||||||||||||
| Total system throughput | 217,411 | 222,152 | 230,148 | 218,321 | 207,273 | 207,094 | 209,950 | 192,742 | 223,026 | 208,822 | ||||||||||||||||||||
| OPERATING MARGIN BY CLASS** | YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||
| (In thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| Residential | $ | 774,716 | $ | 717,581 | $ | 686,886 | $ | 647,209 | $ | 657,574 | $ | 640,157 | $ | 623,828 | $ | 612,641 | $ | 601,076 | $ | 582,619 | ||||||||||
| Small commercial | 153,492 | 138,272 | 142,798 | 145,250 | 144,096 | 142,490 | 136,344 | 136,272 | 133,474 | 132,964 | ||||||||||||||||||||
| Large commercial | 26,021 | 23,618 | 23,138 | 22,822 | 22,232 | 22,450 | 22,249 | 23,412 | 25,171 | 26,421 | ||||||||||||||||||||
| Industrial / Other | 14,703 | 10,293 | 8,464 | 8,251 | 7,495 | 7,177 | 6,937 | 6,477 | 7,735 | 8,706 | ||||||||||||||||||||
| Transportation | 121,951 | 117,984 | 122,489 | 114,808 | 115,866 | 112,017 | 101,472 | 97,929 | 96,697 | 91,416 | ||||||||||||||||||||
| Total operating margin | $ | 1,090,883 | $ | 1,007,748 | $ | 983,775 | $ | 938,340 | $ | 947,263 | $ | 924,291 | $ | 890,830 | $ | 876,731 | $ | 864,153 | $ | 842,126 | ||||||||||
| *Growth rate for 2021 and 2020 each reflect approximately 37,000 new meter sets. Customer counts during these years were impacted by a moratorium on disconnections during the COVID-19 pandemic. | ||||||||||||||||||||||||||||||
| **Includes allocations of miscellaneous, unbilled, and other operating revenues. | ||||||||||||||||||||||||||||||
| MARKET PRICE PER SHARE | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| High | $ | 73.54 | $ | 81.62 | $ | 92.94 | $ | 85.97 | $ | 86.87 | $ | 79.58 | $ | 63.68 | $ | 64.20 | $ | 56.03 | $ | 46.08 | ||||||||||
| Low | 57.00 | 45.68 | 73.27 | 62.54 | 72.32 | 53.51 | 50.78 | 47.21 | 42.02 | 39.01 | ||||||||||||||||||||
| Close [1] | 70.05 | 60.75 | 75.97 | 76.50 | 80.48 | 76.62 | 55.16 | 61.81 | 55.91 | 42.41 | ||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
| Common shares outstanding (in thousands) [1] | 60,422 | 57,193 | 55,007 | 53,026 | 48,090 | 47,482 | 47,378 | 46,523 | 46,356 | 46,148 | ||||||||||||||||||||
| Dividend yield [1] | 3.4 | % | 3.8 | % | 2.9 | % | 2.7 | % | 2.5 | % | 2.3 | % | 2.9 | % | 2.4 | % | 2.4 | % | 2.8 | % | ||||||||||
| Dividends declared per share [2] | $ | 2.38 | $ | 2.28 | $ | 2.18 | $ | 2.08 | $ | 1.98 | $ | 1.80 | $ | 1.62 | $ | 1.46 | $ | 1.32 | $ | 1.18 | ||||||||||
| Price / Earnings ratio [1] | 20.66 | 14.64 | 19.28 | 20.73 | 19.92 | 23.94 | 18.76 | 20.33 | 17.81 | 14.67 | ||||||||||||||||||||
| Return on equity - total company [2] | 7.1 | % | 9.0 | % | 9.0 | % | 9.3 | % | 11.2 | % | 9.3 | % | 8.9 | % | 9.7 | % | 10.6 | % | 10.4 | % | ||||||||||
| Return on equity - gas distribution segment only [2] | 7.8 | % | 7.5 | % | 8.5 | % | 8.2 | % | 10.0 | % | 7.7 | % | 7.6 | % | 8.5 | % | 9.6 | % | 9.6 | % | ||||||||||
| Book value per share [1] | $ | 48.89 | $ | 46.77 | $ | 45.56 | $ | 42.63 | $ | 37.74 | $ | 35.03 | $ | 33.65 | $ | 32.03 | $ | 30.51 | $ | 28.39 | ||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | ||||||||||||||||||||||||||||||
| YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||||||||
| HEATING DEGREE DAY COMPARISON | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
| Actual | 1,627 | 1,767 | 1,917 | 1,531 | 1,478 | 1,613 | 1,512 | 1,416 | 1,918 | 1,740 | ||||||||||||||||||||
| Ten-year average | 1,637 | 1,676 | 1,701 | 1,694 | 1,733 | 1,771 | 1,792 | 1,816 | 1,876 | 1,866 | ||||||||||||||||||||
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
| Number of gas distribution segment employees [1] | 2,286 | 2,272 | 2,295 | 2,312 | 2,285 | 2,247 | 2,219 | 2,196 | 2,220 | 2,245 | ||||||||||||||||||||
| Customers / Employee [1] | 945 | 935 | 907 | 886 | 882 | 883 | 881 | 879 | 858 | 836 | ||||||||||||||||||||
| Operations & maintenance expense / Customer [2,3] | $ | 212 | $ | 204 | $ | 213 | $ | 211 | $ | 207 | $ | 206 | $ | 204 | $ | 202 | $ | 206 | $ | 200 | ||||||||||
| Weighted average cost of gas (per therm) [2,4] | $ | 0.64 | $ | 0.28 | $ | 0.36 | $ | 0.31 | $ | 0.44 | $ | 0.37 | $ | 0.44 | $ | 0.55 | $ | 0.42 | $ | 0.42 | ||||||||||
| Construction expenditures (in thousands) [2] | $ | 601,983 | $ | 692,216 | $ | 778,748 | $ | 682,869 | $ | 560,448 | $ | 457,120 | $ | 438,289 | $ | 350,025 | $ | 314,578 | $ | 308,951 | ||||||||||
| [1] At December 31, | ||||||||||||||||||||||||||||||
| [2] For the year ended December 31, | ||||||||||||||||||||||||||||||
| [3] Includes non-service components of net periodic pension and other post-retirement benefit cost in calculation. | ||||||||||||||||||||||||||||||
| [4] Gas cost in 2021 includes impacts of the significant price runup during Winter Storm Uri. | ||||||||||||||||||||||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||||||
| Transportation Volumes and Operating Margin | ||||||||||||||||||||||||||||||
| DEKATHERMS | OPERATING | DEKATHERMS | OPERATING | |||||||||||||||||||||||||||
| DIVISION/CUSTOMER TYPE | TRANSPORTED | MARGIN | TRANSPORTED | MARGIN | ||||||||||||||||||||||||||
| Twelve Months Ended 12-31-21 | Twelve Months Ended 12-31-20 | |||||||||||||||||||||||||||||
| Southern Nevada | ||||||||||||||||||||||||||||||
| Commercial | 8,699,485 | $ | 9,868,220 | 7,577,377 | $ | 11,233,406 | ||||||||||||||||||||||||
| Industrial | 5,248,141 | 4,098,538 | 5,476,590 | 5,132,201 | ||||||||||||||||||||||||||
| Power Generation | 38,590,851 | 15,543,361 | 41,887,476 | 15,273,379 | ||||||||||||||||||||||||||
| Southern Nevada Totals | 52,538,477 | $ | 29,510,119 | 54,941,443 | $ | 31,638,986 | ||||||||||||||||||||||||
| Northern Nevada (1) | ||||||||||||||||||||||||||||||
| Commercial | 1,738,886 | $ | 1,765,041 | 1,492,741 | $ | 1,580,736 | ||||||||||||||||||||||||
| Industrial | 7,485,521 | 3,940,960 | 7,199,615 | 3,725,604 | ||||||||||||||||||||||||||
| Power Generation | 6,559,848 | 3,539,804 | 8,374,128 | 4,258,335 | ||||||||||||||||||||||||||
| Resale | 9,099,326 | 30,338,023 | 9,047,822 | 29,480,741 | ||||||||||||||||||||||||||
| Northern Nevada Totals | 24,883,581 | $ | 39,583,828 | 26,114,306 | $ | 39,045,416 | ||||||||||||||||||||||||
| (1) | Includes transportation customers of Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation. | |||||||||||||||||||||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||||||
| Transportation Volumes and Operating Margin | ||||||||||||||||||||||||||||||
| DEKATHERMS | OPERATING | DEKATHERMS | OPERATING | |||||||||||||||||||||||||||
| DIVISION/CUSTOMER TYPE | TRANSPORTED | MARGIN | TRANSPORTED | MARGIN | ||||||||||||||||||||||||||
| Twelve Months Ended 12-31-21 | Twelve Months Ended 12-31-20 | |||||||||||||||||||||||||||||
| Southern Arizona | ||||||||||||||||||||||||||||||
| Commercial | 1,533,975 | $ | 4,136,228 | 1,556,754 | $ | 3,989,804 | ||||||||||||||||||||||||
| Industrial | 952,717 | 2,389,799 | 1,139,154 | 2,088,079 | ||||||||||||||||||||||||||
| Power Generation | 1,613,186 | 3,626,466 | 1,636,466 | 3,567,043 | ||||||||||||||||||||||||||
| Irrigation | 505,717 | 1,809,212 | 628,040 | 2,412,566 | ||||||||||||||||||||||||||
| Southern Arizona Totals | 4,605,595 | $ | 11,961,705 | 4,960,414 | $ | 12,057,492 | ||||||||||||||||||||||||
| Central Arizona | ||||||||||||||||||||||||||||||
| Commercial | 4,921,949 | $ | 13,204,737 | 4,182,026 | $ | 12,252,836 | ||||||||||||||||||||||||
| Industrial | 4,969,795 | 12,613,073 | 4,545,668 | 11,115,407 | ||||||||||||||||||||||||||
| Power Generation | 1,160,352 | 1,406,969 | 1,119,034 | 1,224,993 | ||||||||||||||||||||||||||
| Irrigation | 1,489,147 | 3,092,292 | 1,459,942 | 3,003,153 | ||||||||||||||||||||||||||
| Central Arizona Totals | 12,541,243 | $ | 30,317,071 | 11,306,670 | $ | 27,596,389 | ||||||||||||||||||||||||
| NATURAL GAS DISTRIBUTION SEGMENT | ||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||||||
| Transportation Volumes and Operating Margin | ||||||||||||||||||||||||||||||
| DEKATHERMS | OPERATING | DEKATHERMS | OPERATING | |||||||||||||||||||||||||||
| DIVISION/CUSTOMER TYPE | TRANSPORTED | MARGIN | TRANSPORTED | MARGIN | ||||||||||||||||||||||||||
| Twelve Months Ended 12-31-21 | Twelve Months Ended 12-31-20 | |||||||||||||||||||||||||||||
| Southern California | ||||||||||||||||||||||||||||||
| Commercial | 352,690 | $ | 1,206,169 | 502,742 | $ | 1,364,321 | ||||||||||||||||||||||||
| Industrial (1) | (1,761) | 32,094 | 105,033 | 190,970 | ||||||||||||||||||||||||||
| Power Generation (1) | 35,375 | 207,589 | 397,000 | 554,786 | ||||||||||||||||||||||||||
| Southern California Totals | 386,304 | $ | 1,445,852 | 1,004,775 | $ | 2,110,077 | ||||||||||||||||||||||||
| Total Company (2) | ||||||||||||||||||||||||||||||
| Commercial | 17,246,985 | $ | 30,180,395 | 15,311,640 | $ | 30,421,103 | ||||||||||||||||||||||||
| Industrial | 18,654,413 | 23,074,464 | 18,466,060 | 22,252,261 | ||||||||||||||||||||||||||
| Power Generation | 47,959,612 | 24,324,189 | 53,414,104 | 24,878,536 | ||||||||||||||||||||||||||
| Resale | 9,099,326 | 30,338,023 | 9,047,822 | 29,480,741 | ||||||||||||||||||||||||||
| Irrigation | 1,994,864 | 4,901,504 | 2,087,982 | 5,415,719 | ||||||||||||||||||||||||||
| TOTAL COMPANY | 94,955,200 | $ | 112,818,575 | 98,327,608 | $ | 112,448,360 | ||||||||||||||||||||||||
| (1) | California Industrial transportation customer, moving to sales service at the end of 2020, had a volumetric imbalance on Southwest’s system at that time, which it traded in January 2021. Additionally, multiple California Power Generation customers moved to sales service during 2021. | |||||||||||||||||||||||||||||
| (2) | Includes transportation customers of Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation. |