Southwest Gas Holdings, Inc. Reports Second Quarter 2023 Financial Results
- Utility net income increased by $21 million in Q2 2023 compared to Q2 2022.
- Centuri revenue increased by approximately $14 million in Q2 2023 compared to Q2 2022.
- Consolidated net earnings were $0.40 per diluted share in Q2 2023, compared to $(0.10) per diluted share in Q2 2022.
- Southwest Gas executed its business plan and made progress on its transformational strategy towards becoming a pure-play natural gas leader.
- The company received approval for the Centuri separation and submitted a draft Registration Statement on Form 10 with the SEC.
- Southwest Gas anticipates a decision from the IRS on the tax-free nature of the separation in Q4 2023.
- The company achieved the highest second-quarter utility net income and Centuri revenue on record.
- None.
Delivering Strong Second Quarter for Utility Net Income and Centuri Revenue
Reaffirming 2023 Utility Earnings Guidance and 2023 Centuri Revenue and EBITDA Margin Guidance
"I am pleased with our strong financial results across the utility and Centuri, and the progress we made on our strategic priorities," said Karen S. Haller, President and Chief Executive Officer of Southwest Gas. "During the quarter, we executed on our business plan and made progress on our transformational strategy towards becoming a pure-play natural gas leader. We also achieved significant regulatory milestones, including receiving Arizona Corporation Commission approval for the Centuri separation and implementing an increase in the Gas Cost Balancing Account rate to facilitate timely recovery of purchased gas costs. At the federal level, we confidentially submitted a draft Registration Statement on Form 10 with the
Ms. Haller continued, "Our commitment to executing our strategic plan is as strong as ever. We continue to be there for our customers, delivering safe, reliable, and affordable energy, and investing in our communities and employees. As always, we are focused on maximizing value for our stockholders, which is reflected by our year to date performance."
Southwest Gas Holdings Financial Highlights
- Southwest Gas Corporation ("Utility") earnings up
in the second quarter of 2023 over the second quarter of 2022 and Centuri Group, Inc. ("Centuri") results up approximately$21 million $14 million over the same period. - Consolidated net earnings of
per diluted share (and adjusted consolidated net earnings of$0.40 per diluted share) for the second quarter of 2023, compared to consolidated net earnings of$0.47 per diluted share (and adjusted consolidated earnings of$(0.10) per diluted share) for the second quarter of 2022.$0.23 - Adjustments to second quarter 2023 earnings included
~ of collective after-tax items, largely driven by costs incurred to facilitate the spin-off of Centuri as well as consulting fees related to Utility optimization.$5 million - Advanced Centuri spin by confidentially submitting a draft Registration Statement on Form 10 with the
U.S. Securities and Exchange Commission ("SEC") and receiving Arizona Corporation Commission ("ACC") approval of the Centuri separation.
SOUTHWEST GAS HOLDINGS, INC. SUMMARY UNAUDITED OPERATING RESULTS (In thousands, except per share items) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Twelve Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||
Results of Consolidated Operations | |||||||||||
Contribution to net income (loss) - natural gas distribution | $ 19,120 | $ (2,266) | $ 198,667 | ||||||||
Contribution to net income (loss)- utility infrastructure services | 18,818 | 4,741 | 6,946 | (18,745) | 27,756 | 7,418 | |||||
Contribution to net income (loss) - pipeline and storage | — | 15,076 | (16,288) | 32,006 | (332,027) | 32,006 | |||||
Contribution to net income (loss) - corporate and administrative | (9,060) | (24,126) | (69,685) | (33,187) | (112,500) | (57,990) | |||||
Net income (loss) | $ 28,878 | $ (6,575) | $ 74,789 | $ 89,603 | |||||||
Non-GAAP adjustments – consolidated | 4,899 | 22,308 | 74,911 | 32,303 | 442,498 | 67,766 | |||||
Adjusted net income | $ 33,777 | $ 15,733 | $ 224,394 | ||||||||
Diluted earnings (loss) per share* | $ 0.40 | $ (0.10) | $ 1.07 | $ 1.40 | $ (3.18) | $ 2.38 | |||||
Diluted adjusted earnings per share | $ 0.47 | $ 0.23 | $ 2.14 | $ 1.90 | $ 3.27 | $ 3.47 | |||||
Weighted average diluted shares | 71,722 | 67,045 | 70,072 | 64,041 | 68,542 | 62,157 |
*In periods in which losses occur, diluted and basic loss per share are the same, and the same shares are used for Adjusted results. |
Business Segment Highlights
Natural Gas Distribution
The natural gas distribution segment recorded net income of
Key operational highlights include:
- Record twelve-month operating margin of
;$1.2 billion - Approximately 42,000 new meter sets added during the last 12 months;
- Received ACC approval to implement an increase in the Gas Cost Balancing Account rate to facilitate timely recovery of
~ in purchased gas costs effective August 1, 2023;$358 million - Rate case filings on-track – expecting 3Q 2023 Nevada filing and 1Q 2024 Arizona filing; and
- The Company retired
term loan associated with purchased gas cost from the first quarter of 2023.$450 million
Key drivers of the second quarter performance in 2023 as compared to second quarter performance in 2022 include:
- Increased operating margin of
compared to the second quarter of 2022, including an increase in recoveries/return associated with regulatory account balances, system investments, and customer growth;$26 million - Decoupling mechanisms in our high-growth territories are designed based on per-customer margin benchmarks, and provide incremental margin in support of net customer additions;
- Recovery of increased investments to provide safe and reliable service to our customers, including additions included as part of
Arizona rate base approved in our most recently concluded rate case (effective February 2023); - Operations and maintenance expense decreased
between quarters, including an$3.1 million decrease in legal claim-related costs, partially offset by an increase in external services/contractor costs (including a consulting arrangement for business optimization efforts), leak survey and line locating costs, and bad debt expense;$8 million - Other income increased
reflecting higher interest income related primarily to an increase in deferred purchased gas cost balances, and lower non-service components of pension costs; and$22.2 million - Company-owned Life Insurance ("COLI") policy cash surrender value results (included in other income) increased
.1 million (includes death benefits of$9 ) compared to the second quarter of 2022.$1.6 million
Natural Gas Distribution Segment Guidance and Outlook:
- 2023 net income guidance of
-$205 (assumes$215 million -$3 of COLI earnings);$5 million - Increasing 2023 capital expenditures guidance to
-$700 in support of customer growth, system improvements, and pipe replacement programs;$720 million - 3 - Year capital expenditures of approximately
; and$2.0 billion - 3 - Year utility rate base compound annual growth rate of
5% -7% .
Centuri / Utility Infrastructure Services
The utility infrastructure services segment had net income of
Key operational highlights include:
- Record second quarter revenues of
, an increase of$806 million 14% compared to the second quarter of 2022; year over year increase in second quarter net income;$14 million storm restoration services revenue earned in the first half of 2023, an increase of$65 million over the first half of 2022;$46 million ~ sustainable wind energy project revenues during the first half of 2023, with a projected$100 million for the full year, which is a realization of the significant offshore wind growth opportunity sought after in the acquisition of Riggs Distler in 2021;$250 million - Record twelve-month adjusted EBITDA of
, an increase of approximately$285 million 30% compared to the second quarter of 2022; and - Completed contracted work with customer acceptance of advanced foundation components for first offshore wind project (Southfork in
Rhode Island ).
Key drivers of Centuri's second quarter performance in 2023 as compared to second quarter performance in 2022 include:
increase in electric revenues and$54.7 million increase in offshore wind revenues;$26 million revenue increase in higher-profit storm restoration services;$29.0 million - Improved mix of work, increased operating efficiencies, lower fuel prices, and weather; and
- Increased interest expense (
) due to higher interest rates on variable-rate borrowings.$11.9 million
Centuri / Utility Infrastructure Services Segment Guidance and Outlook:
- 2023 revenues of
to$2.8 billion ;$3.0 billion - 2023 adjusted EBITDA margin of
9.5% -11.0% ; and - 2023 - 2026 adjusted EBITDA CAGR
9% -11% (adjusted EBITDA excludes noncontrolling interest, costs of strategic review, one-time acquisition costs and non-cash stock-based compensation expense).
Centuri Separation Update
In the second quarter, Southwest Gas continued to pursue its previously announced plan to simplify the Company's business portfolio and position Southwest Gas as a pure-play utility.
On June 21, 2023, the Company announced that it had received approval from the ACC to divest its financial interest in and separate from Centuri. Additionally, the Company confidentially submitted a draft Registration Statement on Form 10 with the SEC.
The Company anticipates completion of the spin-off of Centuri towards the end of the first quarter of 2024, subject to, among other things, the receipt of a favorable Internal Revenue Service private letter ruling relating to the tax-free nature of the transaction, SEC review and Form 10 effectiveness, and final approval by the Southwest Gas Board of Directors. Further details related to capital structure, board composition and other elements of the transaction will be announced at a later date.
Conference Call and Webcast
Southwest Gas will host a conference call on Wednesday, August 9, 2023 at 11:00 a.m. ET to discuss its second quarter 2023 results. The associated press releases and presentation slides are available at https://investors.swgasholdings.com.
The call will be webcast live on the Company's website at www.swgasholdings.com. The telephone dial-in numbers in the
Southwest Gas Holdings currently has two business segments:
Southwest Gas Corporation is a dynamic energy company committed to exceeding the expectations of over 2 million customers throughout
Centuri Group, Inc. is a strategic infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the
Non-GAAP Measures. This earnings release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the
Management also uses the non-GAAP measure operating margin related to its natural gas distribution operations. Southwest recognizes operating revenues from the distribution and transportation of natural gas (and related services) to customers. Gas cost is a tracked cost, which is passed through to customers without markup under purchased gas adjustment ("PGA") mechanisms, impacting revenues and net cost of gas sold on a dollar-for-dollar basis, thereby having no impact on Southwest's profitability. Therefore, management routinely uses operating margin, defined by management as regulated operations revenues less the net cost of gas sold, in its analysis of Southwest's financial performance. Operating margin also forms a basis for Southwest's various regulatory decoupling mechanisms. Management believes supplying information regarding operating margin provides investors and other interested parties with useful and relevant information to analyze Southwest's financial performance in a rate-regulated environment. (The Southwest Gas Holdings, Inc. Consolidated Earnings Digest included herein provides reconciliations for these non-GAAP measures.)
Management also uses the non-GAAP measure EBITDA and Adjusted EBITDA related to its utility infrastructure services operations. EBITDA and Adjusted EBITDA, when used in connection with net income attributable to utility infrastructure services, is intended to provide useful information to investors and analysts as they evaluate Centuri's performance. EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA adjusted for certain other items as described below. These measures should not be considered as an alternative to net income or other measures of performance that are derived in accordance with GAAP. Management believes that the exclusion of these items from net income attributable to Centuri provides an effective evaluation of Centuri's operations period over period and identifies operating trends that might not be apparent when including the excluded items. As to certain of the items in the EBITDA and Adjusted EBITDA reconciliation table below, (i) the nonrecurring write-off of deferred financing fees relates to Centuri's amended and restated credit facility, (ii) acquisition costs vary from period to period depending on the level of Centuri's acquisition activity, (iii) non-recurring strategic review costs relate to a potential sale or spin-off of Centuri, and (iv) non-cash share-based compensation varies from period to period due to amounts granted in a given year. Because EBITDA and Adjusted EBITDA, as defined, exclude some, but not all, items that affect net income attributable to Centuri, such measures may not be comparable to similarly titled measures of other companies. The most comparable GAAP financial measure, net income attributable to Centuri, and information reconciling the GAAP and non-GAAP financial measures, are included in the utility infrastructure services EBITDA and Adjusted EBITDA reconciliation chart below.
We do not provide a reconciliation of forward-looking Non-GAAP Measures to the corresponding forward-looking GAAP measure due to our inability to project special charges and certain expenses.
SOUTHWEST GAS HOLDINGS, INC. CONSOLIDATED EARNINGS DIGEST (In thousands, except per share amounts) | ||||
QUARTER ENDED JUNE 30, | 2023 | 2022 | ||
Consolidated Operating Revenues | $ 1,293,645 | $ 1,146,120 | ||
Net income (Loss) applicable to Southwest Gas Holdings | $ 28,878 | $ (6,575) | ||
Weighted Average Common Shares | 71,536 | 67,045 | ||
Basic Earnings (Loss) Per Share | $ 0.40 | $ (0.10) | ||
Diluted Earnings (Loss) Per Share | $ 0.40 | $ (0.10) | ||
Reconciliation of Gross margin to Operating Margin (non-GAAP measure) | ||||
Utility Gross Margin | $ 102,789 | $ 99,637 | ||
Plus: | ||||
Operations and maintenance (excluding Admin & General) expense | 79,179 | 75,721 | ||
Depreciation and amortization expense | 74,845 | 55,930 | ||
Operating Margin | $ 256,813 | $ 231,288 |
SIX MONTHS ENDED JUNE 30, | 2023 | 2022 | ||
Consolidated Operating Revenues | $ 2,896,949 | $ 2,413,529 | ||
Net income applicable to Southwest Gas Holdings | $ 74,789 | $ 89,603 | ||
Weighted Average Common Shares | 69,901 | 63,909 | ||
Basic Earnings Per Share | $ 1.07 | $ 1.40 | ||
Diluted Earnings Per Share | $ 1.07 | $ 1.40 | ||
Reconciliation of Gross margin to Operating Margin (non-GAAP measure) | ||||
Utility Gross Margin | $ 362,153 | $ 333,519 | ||
Plus: | ||||
Operations and maintenance (excluding Admin & General) expense | 158,875 | 149,143 | ||
Depreciation and amortization expense | 149,495 | 128,044 | ||
Operating Margin | $ 670,523 | $ 610,706 |
TWELVE MONTHS ENDED JUNE 30, | 2023 | 2022 | ||
Consolidated Operating Revenues | $ 5,443,429 | $ 4,386,652 | ||
Net Income (Loss) applicable to Southwest Gas Holdings | $ (218,104) | $ 147,970 | ||
Weighted Average Common Shares | 68,542 | 62,022 | ||
Basic Earnings (Loss) Per Share | $ (3.18) | $ 2.39 | ||
Diluted Earnings (Loss) Per Share | $ (3.18) | $ 2.38 | ||
Reconciliation of Gross margin to Operating Margin (non-GAAP measure) | ||||
Utility Gross Margin | $ 603,168 | $ 574,335 | ||
Plus: | ||||
Operations and maintenance (excluding Admin & General) expense | 318,008 | 289,930 | ||
Depreciation and amortization expense | 284,494 | 255,113 | ||
Operating Margin | $ 1,205,670 | $ 1,119,378 |
Reconciliation of non-GAAP financial measures of Adjusted net income (loss) and Adjusted diluted earnings per share and their comparable GAAP measures of Net income (loss) and Diluted earnings (loss) per share. Note that the comparable GAAP measures are also included in Note 7 - Segment Information in the Company's June 30, 2023 Form 10-Q.
Amounts in thousands, except per share amounts | ||||||||||||
Three Months Ended | Six Months Ended | Twelve Months Ended June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||
Reconciliation of Net income (loss) to non-GAAP measure of Adjusted net income (loss) | ||||||||||||
Net income (loss) applicable to Natural Gas Distribution (GAAP) | $ 19,120 | $ (2,266) | $ 198,667 | |||||||||
Plus: | ||||||||||||
Legal reserve | — | — | — | — | — | 5,000 | ||||||
Income tax effect of adjustment above (1) | — | — | — | — | — | (1,200) | ||||||
Consulting fees related to optimization opportunity identification, benchmarking, and assessment | 2,036 | — | 2,036 | — | 2,036 | — | ||||||
Income tax effect of adjustment above (1) | (489) | — | (489) | — | (489) | — | ||||||
Adjusted net income (loss) applicable to Natural Gas Distribution | $ 20,667 | $ (2,266) | $ 200,214 | |||||||||
Net income (loss) applicable to Utility Infrastructure Services (GAAP) | $ 18,818 | $ 4,741 | $ 6,946 | $ 27,756 | $ 7,418 | |||||||
Plus: | ||||||||||||
Riggs Distler transaction costs | — | — | — | — | — | 13,000 | ||||||
Income tax effect of adjustment above (1) | — | — | — | — | — | (2,087) | ||||||
Strategic review, including Centuri spin | 1,137 | 2,248 | 1,228 | 2,248 | 833 | 2,248 | ||||||
Income tax effect of adjustment above (1) | (284) | (562) | (307) | (562) | (199) | (562) | ||||||
Adjusted net income (loss) applicable to Utility Infrastructure Services | $ 19,671 | $ 6,427 | $ 7,867 | $ 28,390 | $ 20,017 | |||||||
Net income (loss) applicable to Pipeline and Storage (GAAP) (2) | $ — | $ 15,076 | $ 32,006 | $ (332,027) | $ 32,006 | |||||||
Plus: | ||||||||||||
Goodwill impairment and loss on sale | — | — | 21,215 | — | 470,821 | — | ||||||
Income tax effect of adjustment above (1) | — | — | 6,196 | — | (99,311) | — | ||||||
Nonrecurring stand-up costs associated with integrating MountainWest | — | 4,573 | 2,565 | 13,231 | 15,530 | 13,231 | ||||||
Income tax effect of adjustment above (1) | — | (1,098) | (616) | (3,176) | (3,728) | (3,176) | ||||||
Adjusted net income applicable to Pipeline and Storage | $ — | $ 18,551 | $ 13,072 | $ 42,061 | $ 51,285 | $ 42,061 | ||||||
Three Months Ended | Six Months Ended | Twelve Months Ended June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||
Net loss - Corporate and administrative (GAAP) | $ (9,060) | $ (24,126) | $ (112,500) | |||||||||
Plus: | ||||||||||||
Goodwill impairment and loss on sale and sale- related expenses (3) | 397 | — | 51,870 | — | 57,689 | — | ||||||
Income tax effect of adjustment above (1) | (95) | — | (12,449) | — | (13,846) | — | ||||||
MountainWest stand-up, integration, and transaction-related costs | — | — | 291 | 700 | 291 | 23,501 | ||||||
Income tax effect of adjustment above (1) | — | — | (70) | (168) | (70) | (5,640) | ||||||
Proxy contest, Stockholder litigation, Settlement agreement, and Strategic review | — | 22,063 | — | 25,857 | 12,500 | 30,358 | ||||||
Consulting fees related to optimization opportunity identification, benchmarking, and assessment | 359 | — | 359 | — | 359 | — | ||||||
Income tax effect of adjustment above (1) | (86) | — | (86) | — | (86) | — | ||||||
Centuri spin cost | 2,532 | — | 4,169 | — | 4,169 | — | ||||||
Income tax effect of adjustment above (1) | (608) | (4,916) | (1,001) | (5,827) | (4,001) | (6,907) | ||||||
Adjusted net loss applicable to Corporate and administrative | $ (6,561) | $ (6,979) | $ (55,495) | |||||||||
Net income (loss) applicable to Southwest Gas Holdings (GAAP) | $ 28,878 | $ (6,575) | $ 74,789 | $ 89,603 | ||||||||
Plus: | ||||||||||||
Legal reserve | — | — | — | — | — | 5,000 | ||||||
Riggs Distler transaction costs | — | — | — | — | — | 13,000 | ||||||
Goodwill impairment and loss on sale and sale- related expenses (3) | 397 | — | 73,085 | — | 528,510 | — | ||||||
Nonrecurring stand-up cost associated with integrating MountainWest | — | 4,573 | 2,856 | 13,931 | 15,821 | 36,732 | ||||||
Consulting fees related to optimization opportunity identification, benchmarking, and assessment | 2,395 | — | 2,395 | — | 2,395 | — | ||||||
Proxy contest, Stockholder litigation, Settlement agreement, Strategic review, and Centuri spin | 3,669 | 24,311 | 5,397 | 28,105 | 17,502 | 32,606 | ||||||
Income tax effect of adjustment above (1) | (1,562) | (6,576) | (8,822) | (9,733) | (121,730) | (19,572) | ||||||
Adjusted net income applicable to Southwest Gas Holdings | $ 33,777 | $ 15,733 | $ 224,394 | |||||||||
Weighted average shares - diluted | 71,722 | 67,045 | 70,072 | 64,041 | 68,542 | 62,157 | ||||||
Earnings (loss) per share: | ||||||||||||
Diluted earnings (loss) per share | $ 0.40 | $ (0.10) | $ 1.07 | $ 1.40 | $ (3.18) | $ 2.38 | ||||||
Adjusted consolidated earnings per diluted share | $ 0.47 | $ 0.23 | $ 2.14 | $ 1.90 | $ 3.27 | $ 3.47 | ||||||
(1) | Calculated using the Company's blended statutory tax rate of |
(2) | The information for 2023 reflects activity from January 1, 2023 to February 13, 2023 (the last full day of ownership). |
(3) | Amount includes approximately |
Reconciliation of non-GAAP financial measures of EBITDA and Adjusted EBITDA and their comparable GAAP measures of Net income. Note that the comparable GAAP measures are also included in Note 7 - Segment Information in the Company's June 30, 2023 Form 10-Q.
Amounts in thousands, except per share amounts | ||||||||||||
Twelve Months Ended June 30, | ||||||||||||
2023 | 2022 | |||||||||||
Reconciliation of Net income to non-GAAP measure of EBITDA | ||||||||||||
Net income applicable to Utility Infrastructure Services (GAAP) | $ 27,756 | $ 7,418 | ||||||||||
Plus: | ||||||||||||
Net interest deductions | 84,543 | 41,474 | ||||||||||
Income tax expense | 17,024 | 7,941 | ||||||||||
Depreciation and amortization | 153,608 | 144,157 | ||||||||||
EBITDA applicable to Utility Infrastructure Services (Non-GAAP) | 282,931 | 200,990 | ||||||||||
Plus: | ||||||||||||
Write-off of deferred financing fees | — | 673 | ||||||||||
Acquisition costs | — | 13,000 | ||||||||||
Strategic review costs, including Centuri spin | 833 | 2,248 | ||||||||||
Non-cash share-based compensation expense | 818 | 2,407 | ||||||||||
Adjusted EBITDA applicable to Utility Infrastructure Services (Non-GAAP) | $ 284,582 |
SOUTHWEST GAS HOLDINGS, INC. SUMMARY UNAUDITED OPERATING RESULTS (In thousands, except per share amounts) | |||||||||||
Three Months Ended June 30, | Six Months Ended | Twelve Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||
Results of Consolidated Operations | |||||||||||
Contribution to net income (loss) - natural gas distribution | $ 19,120 | $ (2,266) | $ 153,816 | $ 109,529 | $ 198,667 | $ 166,536 | |||||
Contribution to net income (loss) - utility infrastructure services | 18,818 | 4,741 | 6,946 | (18,745) | 27,756 | 7,418 | |||||
Contribution to net income (loss) - pipeline and storage | — | 15,076 | (16,288) | 32,006 | (332,027) | 32,006 | |||||
Corporate and administrative | (9,060) | (24,126) | (69,685) | (33,187) | (112,500) | (57,990) | |||||
Net income (loss) | $ 28,878 | $ (6,575) | $ 74,789 | $ 89,603 | $ (218,104) | $ 147,970 | |||||
Basic earnings (loss) per share | $ 0.40 | $ (0.10) | $ 1.07 | $ 1.40 | $ (3.18) | $ 2.39 | |||||
Diluted earnings (loss) per share | $ 0.40 | $ (0.10) | $ 1.07 | $ 1.40 | $ (3.18) | $ 2.38 | |||||
Weighted average common shares | 71,536 | 67,045 | 69,901 | 63,909 | 68,542 | 62,022 | |||||
Weighted average diluted shares | 71,722 | 67,045 | 70,072 | 64,041 | 68,542 | 62,157 | |||||
Results of Natural Gas Distribution | |||||||||||
Regulated operations revenues | $ 377,942 | $ 2,283,333 | |||||||||
Net cost of gas sold | 231,053 | 146,654 | 732,222 | 443,775 | 1,077,663 | 642,165 | |||||
Operating margin | 256,813 | 231,288 | 670,523 | 610,706 | 1,205,670 | 1,119,378 | |||||
Operations and maintenance expense | 124,731 | 127,811 | 255,919 | 247,447 | 500,400 | 476,725 | |||||
Depreciation and amortization | 74,845 | 55,930 | 149,495 | 128,044 | 284,494 | 255,113 | |||||
Taxes other than income taxes | 21,604 | 20,098 | 44,344 | 41,750 | 85,791 | 82,068 | |||||
Operating income | 35,633 | 27,449 | 220,765 | 193,465 | 334,985 | 305,472 | |||||
Other income (deductions) | 18,742 | (3,433) | 37,185 | (2,118) | 32,419 | (6,062) | |||||
Net interest deductions | 37,104 | 28,633 | 75,726 | 55,243 | 136,363 | 106,462 | |||||
Income (loss) before income taxes | 17,271 | (4,617) | 182,224 | 136,104 | 231,041 | 192,948 | |||||
Income tax expense (benefit) | (1,849) | (2,351) | 28,408 | 26,575 | 32,374 | 26,412 | |||||
Contribution to net income (loss) - natural gas distribution | $ 19,120 | $ (2,266) | $ 153,816 | $ 109,529 | $ 198,667 | $ 166,536 | |||||
Three Months Ended June 30, | Six Months Ended | Twelve Months Ended June 30, | |||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||
Results of Utility Infrastructure Services | |||||||||||
Utility infrastructure services revenues | $ 2,989,432 | ||||||||||
Operating expenses: | |||||||||||
Utility infrastructure services expenses | 715,717 | 646,193 | 1,319,397 | 1,149,425 | 2,699,290 | 2,290,638 | |||||
Depreciation and amortization | 36,860 | 38,863 | 74,730 | 76,475 | 153,608 | 144,157 | |||||
Operating income | 53,202 | 21,034 | 64,945 | 4,067 | 136,534 | 61,233 | |||||
Other income (deductions) | 883 | (147) | 203 | (633) | (51) | 682 | |||||
Net interest deductions | 24,525 | 12,598 | 46,901 | 23,729 | 84,543 | 41,474 | |||||
Income (loss) before income taxes | 29,560 | 8,289 | 18,247 | (20,295) | 51,940 | 20,441 | |||||
Income tax expense (benefit) | 9,361 | 3,054 | 8,181 | (3,116) | 17,024 | 7,941 | |||||
Net income (loss) | 20,199 | 5,235 | 10,066 | (17,179) | 34,916 | 12,500 | |||||
Net income attributable to noncontrolling interests | 1,381 | 494 | 3,120 | 1,566 | 7,160 | 5,082 | |||||
Contribution to consolidated results attributable to Centuri | $ 18,818 | $ 4,741 | $ 6,946 | $ (18,745) | $ 27,756 | $ 7,418 |
FINANCIAL STATISTICS | |||
Market value to book value per share at quarter end | 139 % | ||
Twelve months to date return on equity | -- total company | (6.6) % | |
-- gas segment | 7.3 % | ||
Common stock dividend yield at quarter end | 3.9 % | ||
Customer to employee ratio at quarter end (gas segment) | 939 to 1 |
GAS DISTRIBUTION SEGMENT | ||||||
Authorized Rate Base | Authorized Rate of Return | Authorized Return on Common Equity | ||||
Rate Jurisdiction | ||||||
$ 2,607,568 | 6.73 % | 9.30 % | ||||
1,535,593 | 6.30 | 9.40 | ||||
174,965 | 6.56 | 9.40 | ||||
285,691 | 7.11 | 10.00 | ||||
92,983 | 7.44 | 10.00 | ||||
56,818 | 7.44 | 10.00 | ||||
Great Basin Gas Transmission Company (1) | 135,460 | 8.30 | 11.80 |
(1) Estimated amounts based on 2019/2020 rate case settlement. |
SYSTEM THROUGHPUT BY CUSTOMER CLASS | ||||||||
Six Months Ended | Twelve Months Ended June 30, | |||||||
(In dekatherms) | 2023 | 2022 | 2023 | 2022 | ||||
Residential | 62,078,658 | 52,249,416 | 91,221,136 | 75,873,167 | ||||
Small commercial | 21,951,575 | 19,812,618 | 35,637,746 | 32,152,624 | ||||
Large commercial | 5,800,396 | 5,264,251 | 10,540,621 | 9,657,367 | ||||
Industrial / Other | 3,277,448 | 2,284,061 | 5,998,108 | 5,129,961 | ||||
Transportation | 41,660,804 | 44,594,511 | 89,585,027 | 93,157,967 | ||||
Total system throughput | 134,768,881 | 124,204,857 | 232,982,638 | 215,971,086 | ||||
HEATING DEGREE DAY COMPARISON | ||||||||
Actual | 1,548 | 1,207 | 2,173 | 1,599 | ||||
Ten-year average | 1,172 | 1,151 | 1,664 | 1,625 |
Heating degree days for prior periods have been recalculated using the current period customer mix. |
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SOURCE Southwest Gas Holdings, Inc.
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