Southwest Gas(NYSE) SWX

Southwest Gas Holdings, Inc. delivers natural gas to homes. It serves people in Arizona, Nevada, and California. These services help families cook food and heat water.

Where the Gas Goes

• Natural Gas Distribution: Delivers and transports energy to 2,293,000 residential and commercial customers across three states.
• Arizona Operations: Represents the largest market with 1,231,000 customers; accounted for 52% of operating margin for the 12 months ended June 30, 2026.
• Nevada Operations: Serves 854,000 customers in southern and northern regions; contributed 34% of operating margin for the 12 months ended June 30, 2026.
• California Operations: Reaches 208,000 customers in specific portions of the state; provided 14% of operating margin for the 12 months ended June 30, 2026.
• Great Basin Pipeline: Operates regulated interstate pipelines; provides transport services for gas shippers in Nevada and California.

Building for the Future

• Completed the separation of its Centuri utility infrastructure business in August 2025.
• Executed agreements for the Great Basin 2028 expansion project to add capacity of nearly 1 billion cubic feet per day.
• Received approval for a $39.5 million annual revenue increase in California effective July 2026.
• Filed a request in Arizona during February 2026 for a $101.0 million increase in annual revenue.
• Implemented its first safety-focused infrastructure surcharge in Arizona during June 2026 to recover investment costs.

Stability Through Smart Regulation

The company uses decoupled rate structures that separate its revenue from the actual volume of gas sold. This mechanism helps stabilize earnings and allows the utility to support energy conservation efforts without financial loss.

Tracking the Recent Numbers

• Operating margin reached $796.7 million during the six-month period ended June 30, 2026.
• Net income from continuing operations was $180.5 million for the first six months of 2026.
• Capital investments for infrastructure and safety projects totaled $506.9 million year-to-date as of June 30, 2026.
• Available liquidity stood at nearly $1.0 billion with $270.5 million in cash as of June 30, 2026.

The Evolution of Southwest Gas

Southwest Gas has transitioned into a dedicated natural gas utility following the divestiture of its infrastructure services unit. The company now focuses on regulated pipe replacement and expanding its pipeline network to meet growing energy demand in the Western U.S.