Southwest Gas Holdings Inc (SWX) 2023 Q3 法說會逐字稿

Welcome to Southwest Gas Holdings Third Quarter 2023 Earnings Conference Call. Today's call is being recorded and our webcast is live. A replay will be available later today for the next 12 months on the Southwest Gas Holdings website. (Operator Instructions) I will now turn the call over to Justin Forsberg, Vice President of Investor Relations of Southwest Gas Holdings.

歡迎參加西南瓦斯控股 2023 年第三季財報電話會議。今天的通話正在錄音，我們的網路廣播正在進行中。今天晚些時候，西南天然氣控股公司網站上將提供未來 12 個月的重播。 （操作員指示）我現在將電話轉給西南天然氣控股公司投資者關係副總裁 Justin Forsberg。

Thank you, [MJ], and hello, everyone. We appreciate you joining our call. This morning, we issued and posted a Southwest Gas Holdings website, our third quarter 2023 earnings release and the associated Form 10-Q. The slides accompanying today's call are also available on Southwest Gas Holdings' website. We'll refer to those slides by number throughout the call today.

謝謝你，[MJ]，大家好。我們感謝您加入我們的通話。今天早上，我們發布並發布了西南天然氣控股網站、我們的 2023 年第三季收益報告以及相關的 10-Q 表格。今天電話會議附帶的幻燈片也可以在西南天然氣控股公司的網站上找到。我們將在今天的電話會議中按編號引用這些投影片。

Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer-term guidance. Some of the information that will be discussed today contains forward-looking statements. These statements are based on management's assumptions on what the future holds, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals. This cautionary note as well as a note regarding non-GAAP measures is included on Slides 2 and 3 of this presentation.

請注意，在今天的電話會議上，我們將討論可能影響今年收益的某些因素，並提供一些長期指導。今天將討論的一些資訊包含前瞻性陳述。這些陳述是基於管理層對未來的假設，但受到多種風險和不確定性的影響，包括圍繞未來經濟狀況和監管審批影響的不確定性。本簡報的投影片 2 和投影片 3 中包含此警告說明以及有關非 GAAP 措施的說明。

Today's press release and our filings with the Securities and Exchange Commission, which we encourage you to review. These risks and uncertainties may cause actual results to differ materially from statements made today. We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statement.

今天的新聞稿以及我們向美國證券交易委員會提交的文件，我們鼓勵您查看。這些風險和不確定性可能導致實際結果與今天的聲明有重大差異。我們告誡不要過度依賴任何前瞻性陳述，並且我們不承擔更新任何此類陳述的義務。

As shown on Slide 4, on today's call, we have Karen Haller, President and CEO of Southwest Gas Holdings; Rob Stefani, Chief Financial Officer of Southwest Gas Holdings; Justin Brown, President of Southwest Gas Corporation; and Paul Daily, President and CEO of Centuri Group, along with other members of the management team available to answer your questions during the Q&A portion of the call today. I'll now turn the call over to Karen.

如幻燈片 4 所示，參加今天的電話會議的有西南天然氣控股公司總裁兼首席執行官凱倫·哈勒 (Karen Haller)； Rob Stefani，西南天然氣控股公司財務長；賈斯汀‧布朗，西南天然氣公司總裁； Centuri 集團總裁兼執行長 Paul Daily 以及管理團隊的其他成員將在今天的電話問答部分回答您的問題。我現在將電話轉給凱倫。

Thanks, Justin. Thank you for joining us today to discuss the Southwest Gas Holdings third quarter results. Turning to Slide 5. We are happy with our progress on our transformational strategy of returning Southwest Gas to its core foundation as a premier fully regulated natural gas utility. We achieved significant milestones this quarter, building on our progress in the first half of the year, which continues to position the utility for strength and success while also advancing the separation of Centuri into a stand-alone infrastructure services leader.

謝謝，賈斯汀。感謝您今天加入我們討論西南燃氣控股公司第三季業績。轉向幻燈片 5。我們對西南天然氣公司轉型策略的進展感到高興，該策略使西南天然氣公司回歸其作為首屈一指的全面監管天然氣公用事業公司的核心基礎。在上半年取得的進展的基礎上，我們本季度實現了重要的里程碑，這繼續使公用事業公司保持實力和成功，同時也推動 Centuri 成為獨立的基礎設施服務領導者。

Notably, we made progress on the regulatory strategy at the utility during the quarter and delivered improved third quarter results. Customer growth and demand remains strong, and the Southwest Gas team is acutely focused on safely addressing the needs of our customers, investing in the communities we serve and delivering value for our shareholders. We are strategically deploying capital and investing in our operations so that we can meet the demand for safe, reliable and affordable energy solutions, while also working constructively with our regulators and legislators to complement our strong organic rate base growth. We are confident in our momentum. We remain on track to deliver 5% to 7% CAGR in rate base growth over the next 3 years and to maintain a strong investment-grade balance sheet and a competitive dividend.

值得注意的是，我們在本季在公用事業公司的監管策略方面取得了進展，並取得了更好的第三季業績。客戶成長和需求仍然強勁，西南天然氣團隊專注於安全滿足客戶的需求、投資我們服務的社區並為股東創造價值。我們正在策略性地部署資本並投資於我們的運營，以便滿足對安全、可靠和負擔得起的能源解決方案的需求，同時還與我們的監管機構和立法機構進行建設性合作，以補充我們強勁的有機利率基礎成長。我們對我們的勢頭充滿信心。我們仍有望在未來 3 年實現 5% 至 7% 的複合年增長率，並保持強勁的投資級資產負債表和有競爭力的股息。

Additionally, Centuri has continued to see improved margins during the first 9 months of the year as they execute on their core utility infrastructure services and overcome much of the previous cost and supply chain headwinds that have been faced during 2022. Turning to Slide 6. I'll touch on a couple of important points related to our strategic priorities. At Centuri, the separation remains well on track. We confidentially submitted a draft Form S-1 with the SEC on September 22 to facilitate a potential IPO. The ultimate timing of the separation will be affected by the form of transaction structure. As you can appreciate, we are in a quiet period with respect to a potential IPO. And we are not in a position to provide specific details on our process. However, we are continuing to make progress. If we execute an IPO, Southwest Gas Holdings may ultimately separate the business through a series of sell-down, share exchanges or distribute the balance of Centuri shares to Southwest Gas Holdings shareholders through a spin following any required lockup period associated with an IPO.

此外，Centuri 在今年前 9 個月的利潤率繼續提高，因為他們執行了核心公用事業基礎設施服務，並克服了 2022 年期間面臨的大部分成本和供應鏈阻力。轉向幻燈片 6。我們將討論與我們的策略優先事項相關的幾個要點。在 Centuri，分離工作進展順利。我們於 9 月 22 日向 SEC 秘密提交了一份 S-1 表格草案，以促進潛在的 IPO。最終分拆的時間將受到交易結構形式的影響。如您所知，對於潛在的首次公開募股，我們正處於安靜期。我們無法提供有關我們流程的具體細節。然而，我們正在繼續取得進展。如果我們執行首次公開募股，西南天然氣控股公司可能最終透過一系列拋售、換股或透過與首次公開發行相關的任何所需禁售期後的旋轉將Centuri 股份的餘額分配給西南天然氣控股公司股東來分離業務。

As we disclosed in our press release from November 6, we announced that our Board adopted a tax-free spin protection plan to help preserve the company's ability to effectuate a tax-free spin. We continue to consider additional taxable separation alternatives to form a new independent publicly traded utility infrastructure services company. We remain committed to separating Centuri, and we believe we have taken the appropriate steps and actions that will benefit all shareholders. We announced in that same press release that the IRS has decided to exercise its discretion not to rule on certain tax questions relating to the proposed Centuri separation based on the fact, intensive nature of the questions presented.

正如我們在 11 月 6 日的新聞稿中所揭露的那樣，我們宣布董事會通過了一項免稅分拆保護計劃，以幫助維持公司實現免稅分拆的能力。我們繼續考慮其他應稅分離替代方案，以組建一家新的獨立上市公用事業基礎設施服務公司。我們仍然致力於分離 Centuri，我們相信我們已經採取了適當的步驟和行動，將使所有股東受益。我們在同一份新聞稿中宣布，基於所提出問題的密集性這一事實，美國國稅局 (IRS) 決定行使其自由裁量權，不對與 Centuri 擬議分拆相關的某些稅務問題做出裁決。

Again, we are committed to separating Centuri and continue to assess the value of a potential tax-free spin-off of Centuri either following or in lieu of a potential initial public offering by Centuri as well as other transaction alternatives. As you can see on Slide 7, we are making excellent progress on our 2023 strategic priorities, completing some more key strategic milestones during the third quarter. At the utility, we continue to execute on our business plan. We filed our Nevada rate case mid-September with the expectation of a resulting rate increase in April 2024. And as previously announced, we received ACC approval of the PGA surcharge in Arizona and remain on track with our expected Arizona rate case filing in the first quarter of 2024.

再次，我們致力於分離 Centuri，並繼續評估 Centuri 潛在的免稅分拆的價值，無論是在 Centuri 進行潛在的首次公開募股之後，還是代替 Centuri 的潛在首次公開募股以及其他交易方案。正如您在投影片 7 中看到的，我們在 2023 年策略重點方面取得了巨大進展，在第三季完成了一些更關鍵的策略里程碑。在公用事業公司，我們繼續執行我們的業務計劃。我們在9 月中旬提交了內華達州費率案件，預計將在2024 年4 月提高費率。正如先前宣布的，我們收到了ACC 對亞利桑那州PGA 附加費的批准，並繼續按計劃在第一時間提交亞利桑那州費率案件。2024 年第四季。

Additionally, we are focused on completing the utility optimization review and prioritizing our identified initiatives, as I will cover in more detail in a moment. We are very pleased with our continued progress and our strategic plan is on track. On Slide 8, we highlight a strong third quarter performance at Southwest and at Centuri. We are proud to announce that at the utility, we delivered the best third quarter performance on record. We experienced another quarter of strong customer growth, adding more than 41,000 new meter sets over the last 12 months, while continuing to make additional investments to ensure our system remains safe and reliable for the benefit of our customers. We also benefited from several constructive regulatory outcomes that have occurred during the year.

此外，我們的重點是完成效用優化審查並確定我們已確定的計劃的優先級，我稍後將對此進行更詳細的介紹。我們對我們的持續進展感到非常高興，我們的策略計劃正在步入正軌。在幻燈片 8 中，我們重點介紹了西南航空和 Centuri 第三季的強勁表現。我們很自豪地宣布，在公用事業公司，我們實現了有史以來最好的第三季業績。我們經歷了另一個季度的強勁客戶成長，在過去 12 個月內增加了 41,000 多套新儀表，同時繼續進行額外投資，以確保我們的系統保持安全可靠，為客戶帶來利益。我們也受惠於這一年中出現的一些建設性監管成果。

At Centuri, we announced record-setting third quarter revenue and EBITDA, which resulted in last 12-month adjusted EBITDA of approximately $299 million. This strong third quarter performance was driven by an increase in electric infrastructure services revenues and sustainable energy projects. As Paul will discuss, Centuri continues to win new business, based on the strength of its relationships and capabilities and is well positioned to play a critical role in the continuing energy transition.

在 Centuri，我們宣布了創紀錄的第三季營收和 EBITDA，這使得過去 12 個月的調整後 EBITDA 約為 2.99 億美元。第三季的強勁業績是由電力基礎設施服務收入和永續能源項目的成長所推動的。正如保羅將討論的那樣，Centuri 憑藉其強大的關係和能力，繼續贏得新業務，並處於有利位置，可以在持續的能源轉型中發揮關鍵作用。

Turning to Slide 9. We are laser-focused on evaluating and prioritizing a cross-functional collection of suggested initiatives that were identified by our employees this year. Our employees have been highly engaged in the process alongside our consultants and have provided productive feedback to help us to prioritize our optimization efforts. Our leadership team is developing specific initiatives that we believe will help us accomplish our goals of optimizing utility performance and accelerating our pursuit of operational excellence. Identifying cost savings and efficiency opportunities for us to execute over the next couple of years.

轉向投影片 9。我們專注於評估員工今年確定的一系列跨職能建議措施並確定其優先順序。我們的員工與我們的顧問一起高度參與了這個過程，並提供了富有成效的回饋，幫助我們確定優化工作的優先順序。我們的領導團隊正在製定具體舉措，我們相信這些舉措將有助於我們實現優化公用事業績效和加速追求卓越營運的目標。確定我們在未來幾年內執行的節省成本和提高效率的機會。

Further, these initiatives will help support the tremendous growth we have across our service territory, help pass on realized savings to our customers, improve ROEs and result in positive returns for our stockholders. We are excited to share our expected returns and provide you our plans in the near future. But what I can say now is we are well positioned to begin execution of our plans in 2024 to drive long-term positive change across the organization, and we are delighted with our employees' response to this collective effort. I will now turn the call over to Rob, who will review our financial performance for the quarter.

此外，這些措施將有助於支持我們在整個服務領域的巨大成長，幫助將實現的節省轉嫁給我們的客戶，提高股本回報率，並為我們的股東帶來積極的回報。我們很高興與您分享我們的預期回報並為您提供我們在不久的將來的計劃。但我現在可以說的是，我們已做好準備，可以在 2024 年開始執行我們的計劃，以推動整個組織的長期積極變革，我們對員工對這一集體努力的反應感到高興。我現在將把電話轉給 Rob，他將審查我們本季的財務表現。

Thanks, Karen. On Slide 11, we outlined our earnings per share performance for the third quarter. The company's consolidated GAAP and adjusted EPS are shown by each operating company. As Karen mentioned earlier, the utility in Centuri each had a record-setting third quarter. The utility recorded its lowest seasonal third quarter net loss on record. The business is seasonal and the spring summer months are the low points. Centuri recorded its highest ever third quarter revenue and EBITDA on record. On an adjusted basis, Southwest Gas Holdings finished the third quarter of 2023 with EPS of $0.10, a $0.15 per share improvement when compared to the same period of the year prior, which had included a full 3 months of Mountain West. The utility's performance during the quarter is a product of our disciplined O&M management, regular pursuit of constructive regulatory outcomes and an increase in interest income from the PGS. At Centuri, we continue to see significant quarter-over-quarter improvement in GAAP and adjusted earnings.

謝謝，凱倫。在投影片 11 中，我們概述了第三季的每股盈餘表現。本公司的綜合公認會計準則和調整後每股收益按每個營運公司顯示。正如凱倫之前提到的，Centuri 的公用事業公司第三季的業績都創下了紀錄。該公用事業公司第三季淨虧損創下歷史新低。業務有季節性，春夏季節是低點。 Centuri 創下了有史以來最高的第三季營收和 EBITDA 記錄。經過調整後，西南天然氣控股公司 2023 年第三季的每股收益為 0.10 美元，與去年同期（包括 Mountain West 整整 3 個月）相比，每股收益提高了 0.15 美元。該公用事業公司本季的業績是我們嚴格的營運和維護管理、定期追求建設性監管成果以及 PGS 利息收入增加的結果。在 Centuri，我們繼續看到 GAAP 和調整後收益環比顯著改善。

Centuri increased its core electric infrastructure services revenues and continued its work on in construction offshore wind projects. In the appendix, we provide a reconciliation of adjustments by operating company. The vast majority of the second quarter adjustments relate to Centuri separation costs and consulting fees related to utility optimization. Now I'll provide a walk-through on the performance of each operating company.

Centuri 增加了其核心電力基礎設施服務收入，並繼續致力於建造離岸風電項目。在附錄中，我們提供了營運公司的調整調節表。第二季的調整絕大多數與 Centuri 分離成本和與公用事業優化相關的諮詢費有關。現在我將概述每個營運公司的表現。

Moving on to Slide 12, you will see the year-over-year performance drivers for our utility, Southwest Gas Corporation. In the third quarter of 2023, utility operating margin increased by approximately $21 million compared to the same time last year. This improvement was driven primarily by the increased recovery on prior investments in our Arizona utility infrastructure and other associated regulatory account balances as well as continued customer growth throughout our service areas. Items offsetting these increases include comparably lower Arizona vintage steel pipe and customer-owned yard line revenue, miscellaneous revenue and revenue from customers outside of the decoupling mechanism. O&M remained relatively flat between quarters despite an increase in external contractor and professional services costs that was primarily related to utility optimization.

轉到投影片 12，您將看到我們的公用事業公司西南天然氣公司的逐年績效驅動因素。 2023年第三季度，公用事業營運利潤率與去年同期相比增加了約2,100萬美元。這項改善主要是由於我們亞利桑那州公用事業基礎設施和其他相關監管帳戶餘額的先前投資回收率的提高以及整個服務領域客戶的持續成長所推動的。抵消這些成長的項目包括相對較低的亞利桑那州老式鋼管和客戶擁有的堆場線收入、雜項收入以及脫鉤機制之外的客戶收入。儘管主要與公用事業優化相關的外部承包商和專業服務成本有所增加，但營運和維護在季度之間保持相對穩定。

The approximate $5 million increase in depreciation and amortization between quarters was primarily due to the corresponding 6% increase in average gas plant in service compared to 2022. Other income increased $13 million compared with last year. This was driven by increased interest income related to carrying costs associated with regulatory account balances, largely related to the purchased gas cost recovery mechanisms. This higher interest income earned on the elevated PGA balances offset the $10 million of higher third quarter interest expense at Southwest Gas Holdings.

各季度之間的折舊和攤銷增加了約 500 萬美元，主要是由於與 2022 年相比，在役天然氣廠平均數量相應增加了 6%。其他收入與去年相比增加了 1300 萬美元。這是由於與監管帳戶餘額相關的持有成本相關的利息收入增加，很大程度上與購買的天然氣成本回收機制有關。 PGA 餘額增加帶來的利息收入增加抵消了西南天然氣控股公司第三季利息支出增加的 1000 萬美元。

In addition, favorable quarter-over-quarter changes in non-service related components of employee post-retirement benefits, benefit other income. Interest expense increased by approximately $6 million from the prior year, primarily due to interest associated with senior notes issued since the third quarter of 2022 as well as $450 million Southwest Gas Corporation PGA related term loan issued in January of this year to support gas purchases, which was repaid in March of 2023. Overall, this was significantly improved quarter for the utility.

此外，員工退休後福利的非服務相關部分的環比有利變化也有利於其他收入。利息支出較上年增加約600 萬美元，主要是由於與2022 年第三季以來發行的優先票據相關的利息，以及今年1 月為支持天然氣採購而發行的西南天然氣公司PGA 相關定期貸款4.5 億美元，已於 2023 年 3 月償還。總體而言，公用事業公司的季度業績顯著改善。

Moving on to Centuri's results this past quarter. Slide 13 reviews the drivers behind Centuri's third quarter GAAP net income results. Centuri's third quarter revenues increased by approximately $16 million compared with the prior year. This increase was driven by an increase in core electric infrastructure services work and progress on offshore wind projects. Centuri's revenues were partially offset by corresponding increases in operating expenses driven by the higher volume and infrastructure services provided to customers, higher incentive compensation and increased subcontractor costs on offshore wind projects.

接下來看看 Centuri 上個季度的業績。幻燈片 13 回顧了 Centuri 第三季 GAAP 淨利潤結果背後的驅動因素。 Centuri 第三季營收較前一年增加約 1,600 萬美元。這一增長是由核心電力基礎設施服務工作的增加和海上風電項目的進展所推動的。 Centuri 的收入被營運費用的相應增加所部分抵消，該營運費用是由於向客戶提供的數量和基礎設施服務增加、激勵補償增加以及離岸風電項目分包商成本增加而導致的。

Additionally, Centuri saw increased interest expense primarily due to higher interest rates on approximately $1.2 billion of outstanding variable rate borrowings largely associated with the Riggs Distler acquisition. Overall, we continue to be encouraged by improved EBITDA margins at Centuri over the first 9 months of this year, as Paul will touch on later.

此外，Centuri 的利息支出增加主要是由於約 12 億美元的未償還浮動利率借款利率上升，這些借款主要與收購 Riggs Distler 有關。總體而言，今年前 9 個月 Centuri 的 EBITDA 利潤率有所提高，我們繼續受到鼓舞，保羅將在稍後談到。

On Slide 14, we again highlight our 2023 financing plan for Southwest Gas Holdings and Southwest Gas Corporation, which has been completed. Because of our strength in balance sheet and successful regulatory and financing efforts earlier this year, we continue to not anticipate meaningful additional near-term equity needs. Through 2025, we expect that any potential equity needs to be addressed under our ATM program. At Holdings, we reiterate that we plan to target a solid investment-grade balance sheet. It's important to note that in addition to our limited equity needs, we have very limited refinancing needs at the utility through the end of 2026 outside of our $550 million Southwest Holdings term loan.

在投影片 14 上，我們再次強調了已經完成的西南天然氣控股公司和西南天然氣公司的 2023 年融資計畫。由於我們在資產負債表方面的實力以及今年稍早成功的監管和融資努力，我們仍然預計短期內不會出現有意義的額外股權需求。到 2025 年，我們預計任何潛在的股權都需要在我們的 ATM 計劃下解決。在控股公司，我們重申計劃以穩健的投資等級資產負債表為目標。值得注意的是，除了我們有限的股本需求之外，到 2026 年底，除了西南控股公司的 5.5 億美元定期貸款外，我們對公用事業公司的再融資需求也非常有限。

Moving to Slide 15, we take a look at our balance sheet strength and our commitment to investment-grade profile. On the left-hand side, we walked through net debt by operating company. When looking at the utility debt levels, we continue to highlight the PGA balance, which represents working capital at Southwest is spent for prior commodity purchases and which is owed by customers to Southwest. We expect a timely recovery of this PGA balance and earn a carrying cost on these balances as reflected in the chart in the appendix on Slide 27, which provides additional detail. Earlier in the third quarter, in Arizona, we announced the Arizona Corporation Commission approval of a surcharge that will continue to reduce the time to recovery of the remaining balance in that jurisdiction.

前往投影片 15，我們來看看我們的資產負債表實力以及我們對投資等級概況的承諾。在左側，我們按營運公司瀏覽了淨債務。在檢視公用事業債務水準時，我們繼續強調 PGA 餘額，這代表西南航空的營運資金用於先前的商品購買，並且是客戶欠西南航空的。我們期望及時收回該 PGA 餘額，並賺取這些餘額的帳面成本，如幻燈片 27 附錄中的圖表所示，該圖表提供了更多詳細資訊。第三季早些時候，在亞利桑那州，我們宣布亞利桑那州公司委員會批准徵收附加費，這將繼續縮短該司法管轄區恢復剩餘餘額的時間。

On the right-hand side of Slide 15, we note that we had no changes to our credit ratings or outlook from the three rating agencies with the exception of the downgrade by Fitch at Southwest Gas Corporation's long-term issuer rating to BBB+ from A- in which they also removed the negative watch, reflecting leverage at the utility in excess of Fitch's downgrade threshold throughout the forecast period. The updated rating did not come a surprise to us as it was aligned with the rating at Moody's. I'll now turn the call over to Justin Brown and Slide 17 to discuss the utility.

在幻燈片 15 的右側，我們注意到，除了惠譽將西南天然氣公司的長期發行人評級從 A- 下調至 BBB+ 外，三大評級機構對我們的信用評級或前景沒有任何變化。其中，他們也取消了負面觀察，反映出該公用事業公司的槓桿率在整個預測期內超過了惠譽的降級閾值。更新後的評級並不令我們感到意外，因為它與穆迪的評級一致。現在我將把電話轉給 Justin Brown 和 Slide 17 來討論該實用程式。

Thanks, Rob. New customer growth and pipeline replacement activities associated with our Safety and integrity management programs are the cornerstones of our $2 billion 3-year capital expenditure program. The investments we've made to ensure safe and reliable energy service to our customers has translated to double-digit rate base growth since 2017. With our current capital investment plan, we expect to continue to grow our rate base at a compound annual growth rate of 5% to 7% through 2025. We continue to see strong growth across our service areas as we added more than 41,000 first-time meter sets during the past 12 months was approximately 34,000 year-to-date.

謝謝，羅布。與我們的安全和完整性管理計劃相關的新客戶成長和管道更換活動是我們 20 億美元的 3 年資本支出計劃的基石。自2017 年以來，我們為確保為客戶提供安全可靠的能源服務而進行的投資已實現兩位數的費率基礎增長。根據我們當前的資本投資計劃，我們預計將繼續以複合年增長率增長我們的費率基礎到 2025 年，我們將繼續看到整個服務領域的強勁增長，因為我們在過去 12 個月內增加了超過 41,000 套首次儀表組，今年迄今約為 34,000 套。

We expect to continue to benefit from a strong demographic and economic growth in the Southwest part of the United States as Phoenix and Las Vegas continue to be among the top destinations for relocation. S&P Global projects population growth in Arizona and Nevada to be nearly 4% over the next 5 years. There are several exciting things happening in Las Vegas, Phoenix and other parts of our service area, which are driving expansion in both core and new business sectors. We've likely seen the excitement that the new entertainment venue, the Sphere Las Vegas as well as the upcoming Formula One Las Vegas Grand Prix event are causing in Las Vegas. Not to mention the city will also be playing host to Super Bowl 58 in early 2024.

由於鳳凰城和拉斯維加斯仍然是首選的搬遷目的地之一，我們預計將繼續受益於美國西南部強勁的人口和經濟成長。標準普爾全球預計未來 5 年內亞利桑那州和內華達州的人口成長率將接近 4%。拉斯維加斯、鳳凰城和我們服務區域的其他地區正在發生一些令人興奮的事情，這些事情正在推動核心業務領域和新業務領域的擴張。我們可能已經看到了新的娛樂場所拉斯維加斯球館以及即將舉行的一級方程式拉斯維加斯大獎賽在拉斯維加斯引起的興奮。更不用說該市還將在 2024 年初主辦第 58 屆超級盃。

Also, earlier this year, the Oakland Days announced their plans to relocate and build a new stadium in Las Vegas that is projected to open in 2028. These and other expansions continue to strengthen the core of the Las Vegas sports, entertainment and hospitality industries and drive job growth in the area. In Arizona, particularly in Phoenix, jobs are back to pre-pandemic trends. And according to the Arizona Commerce Authority expansions are occurring throughout the state. We are proud to partner with several of these large new customers, including TSMC and other semiconductor manufacturers that continue to make significant investments in Arizona. We are also supporting economic growth in new business sectors like battery and electric vehicle manufacturing.

此外，今年早些時候，奧克蘭日宣布計劃在拉斯維加斯搬遷並建造一座新體育場，預計將於2028 年開放。這些和其他擴建項目將繼續加強拉斯維加斯體育、娛樂和酒店業的核心，推動該地區的就業成長。在亞利桑那州，特別是在鳳凰城，就業崗位回到了大流行前的趨勢。據亞利桑那州商務局稱，整個州都在進行擴張。我們很榮幸能與其中幾家大型新客戶合作，包括台積電和其他繼續在亞利桑那州進行重大投資的半導體製造商。我們也支持電池和電動車製造等新業務領域的經濟成長。

We've also seen expansions among several core businesses like agriculture and farming. We're committed to working collaboratively with our regulators and our customers to safely meet these growing demands and to continue to support the economic development to which we're responding. This includes prioritizing constructive dialogues with our regulators around the importance of capital tracker programs and timeliness of recovery of investments. We look forward to continuing these dialogues and working with all stakeholders to develop mutually acceptable outcomes to support the timely recovery of the investments that we make to ensure the safety of our gas delivery system for the benefit of all our customers and the communities we serve.

我們也看到農業和種植業等幾個核心業務的擴張。我們致力於與監管機構和客戶合作，安全地滿足這些不斷增長的需求，並繼續支持我們所應對的經濟發展。這包括優先與監管機構圍繞資本追蹤計畫的重要性和投資回收的及時性進行建設性對話。我們期待繼續這些對話，並與所有利益相關者合作，制定雙方都能接受的結果，以支持我們及時收回投資，以確保我們的天然氣輸送系統的安全，造福我們所有的客戶和我們所服務的社區。

On Slide 18, we provide an overview of our Nevada rate case filing, which was filed in September. Our nearly $70 million request is primarily driven by the need to update rates to reflect the recent impact inflation has had on our cost to provide safe and reliable service. Two of the largest components of the case are comprised of $27 million for changes in O&M since our last case and $20 million for changes in the cost of capital to fund our infrastructure investments. We also need to start recovering the more than $250 million of capital investments we've made in Nevada since our last rate case. Our filing also includes the recovery of $4 million for the annual leak survey program we partnered on with the Public Utilities Commission of Nevada. The Commission Safety division expressed the desire to move towards an annual league survey, and we work collaboratively on developing an approach to accomplish this objective, including the ability to track and recover the incremental costs so we could help enhance safety and reduce fugitive emissions across the state.

在投影片 18 中，我們概述了 9 月提交的內華達州費率案件備案情況。我們近 7000 萬美元的請求主要是因為需要更新費率，以反映近期通貨膨脹對我們提供安全可靠服務的成本的影響。該案例的兩個最大組成部分包括自上一個案例以來運營和維護方面的 2700 萬美元變化以及為基礎設施投資提供資金的資本成本變化 2000 萬美元。我們還需要開始收回自上次利率案例以來我們在內華達州進行的超過 2.5 億美元的資本投資。我們的備案還包括為我們與內華達州公用事業委員會合作的年度洩漏調查計劃追回 400 萬美元。委員會安全部門表示希望進行年度聯盟調查，我們合作開發一種方法來實現這一目標，包括追蹤和收回增量成本的能力，以便我們可以幫助提高安全性並減少整個聯盟的無組織排放。狀態。

We're proposing to recover this $4 million over a 2-year period. We are confident in our request, and we believe we've made prudent investments in the system in response to growth as well as important investments to enhance safety and integrity of the system throughout the Nevada service areas. We anticipate a 210-day procedural schedule for the case. We're currently scheduled to receive testimony from the interveners on February 2, and the hearing begins February 26, with new rates expected to be in place in April. We're also well underway in preparing for several other upcoming rate case filings, we anticipate early 2024 rate case filings for both Arizona and at FERC for our interstate pipeline affiliate, Great Basin Gas Transmission Company. We also anticipate a California rate case in the third quarter of 2024.

我們建議在 2 年內收回這 400 萬美元。我們對我們的要求充滿信心，我們相信我們已經對該系統進行了審慎的投資，以應對成長，並進行了重要投資，以增強整個內華達州服務區域的系統的安全性和完整性。我們預計該案的程序時間表為 210 天。我們目前計劃於 2 月 2 日收到干預者的證詞，聽證會於 2 月 26 日開始，新費率預計將於 4 月實施。我們也正在順利準備其他幾項即將到來的費率案件備案，我們預計 2024 年初亞利桑那州和 FERC 的州際管道附屬公司大盆地天然氣傳輸公司將提交費率案件備案。我們也預計 2024 年第三季將出現加州利率案件。

You'll also see on this slide, we've highlighted a metric we're proud of. Our O&M per customer in Nevada is well below our peer group. We believe this is another metric that demonstrates we work hard to ensure we're delivering affordable service to our customers while maintaining a safe and reliable system. I'll now turn the call over to Paul Daily, President and CEO of Centuri Group for an update on the Infrastructure Services business.

您還將在這張投影片上看到，我們突出顯示了一個令我們引以為傲的指標。我們在內華達州的每個客戶的營運和維護成本遠低於我們的同行。我們相信，這是另一個指標，表明我們努力確保為客戶提供負擔得起的服務，同時維護安全可靠的系統。現在我將把電話轉給 Centuri Group 總裁兼執行長 Paul Daily，以了解基礎設施服務業務的最新情況。

Thanks, Justin. Turning to Slide 19. I'm very proud of the performance delivered by the Centuri team in the quarter. With more than 12,000 employees in 43 states and provinces, operating in 82 locations across the United States and Canada, Centuri has a broad geographic reach and works with the most of the largest blue-chip investor-owned utilities and their 100-plus million customers across the U.S. and Canada. These strengths means Centuri is well positioned to be a stand-alone strategic utility infrastructure services leader with the scale and capabilities to meet the evolving needs of utilities and utility holding companies. As Karen mentioned, we filed a draft S-1 with the SEC on September 22 to facilitate a potential IPO, and we continue to make progress towards Centuri separation.

謝謝，賈斯汀。轉向幻燈片 19。我對 Centuri 團隊在本季的表現感到非常自豪。 Centuri 在 43 個州和省份擁有超過 12,000 名員工，在美國和加拿大的 82 個地點開展業務，覆蓋範圍廣泛，與大多數最大的藍籌投資者擁有的公用事業公司及其 1 億多客戶合作橫跨美國和加拿大。這些優勢意味著 Centuri 完全有能力成為獨立的策略公用事業基礎設施服務領導者，其規模和能力可以滿足公用事業和公用事業控股公司不斷變化的需求。正如 Karen 所提到的，我們在 9 月 22 日向 SEC 提交了一份 S-1 草案，以促進潛在的 IPO，並且我們將繼續在 Centuri 分離方面取得進展。

Importantly, as we work towards our pending separation, we have the resources, capabilities and business structure to continue to deliver on our growth opportunities. On Slide 20, we've detailed Centuri's proven track record of strong financial performance. As Karen and Rob both mentioned, Centuri had record-setting third quarter revenue and EBITDA driven by strong continued execution and project wins from our long-tenured client engagements. We have successfully managed through the inflationary pressures that we faced at this time last year, and we believe we are in a much better position as evidenced by our last 12 months adjusted EBITDA of $299 million, representing $82 million year-over-year growth in LTM adjusted EBITDA. While certain of our costs remain at or above the elevated levels experienced during 2022. As we noted during previous earnings calls, we took proactive measures to negotiate more than $24 million of annualized incremental revenue increases on customer contracts and implemented $21 million of annualized cost savings to offset certain of these inflationary cost increases.

重要的是，在我們努力實現即將到來的分離時，我們擁有資源、能力和業務結構來繼續實現我們的成長機會。在投影片 20 上，我們詳細介紹了 Centuri 良好的財務表現記錄。正如 Karen 和 Rob 都提到的那樣，Centuri 第三季的營收和 EBITDA 創下了紀錄，這得益於我們長期與客戶合作的強勁持續執行力和專案勝利。我們已經成功應對了去年此時面臨的通膨壓力，我們相信我們處於更好的位置，過去 12 個月調整後 EBITDA 為 2.99 億美元，相當於同比增長 8200 萬美元。LTM 調整後的 EBITDA。雖然我們的某些成本仍保持在或高於2022 年期間的較高水平。正如我們在先前的財報電話會議中指出的那樣，我們採取了積極措施，就客戶合約進行了超過2400 萬美元的年度增量收入成長談判，並實現了2,100 萬美元的年度成本節約以抵消某些通貨膨脹成本的增加。

We are continuing to deliver growth across our operations both through expanding our core electric and gas operations while realizing more utility focused work and it's support of system modernization and energy transition. We have performed a limited amount of offshore wind work in the last 2 years, which accounts for approximately 7% of our revenues. We recently completed component assembly for the South Fork Wind project and we have three other projects in backlog. Ocean Wind 1, Sunrise Wind and Revolution Wind. Last week, our client announced the cancellation of Ocean Wind 1, where we currently have work underway.

我們透過擴大核心電力和天然氣業務，同時實現更多以公用事業為重點的工作及其對系統現代化和能源轉型的支持，繼續實現業務成長。過去兩年，我們進行了少量的離岸風電工作，約占我們收入的 7%。我們最近完成了南福克風電計畫的組件組裝，還有其他三個項目處於積壓狀態。海風1、日出風、革命風。上週，我們的客戶宣布取消我們目前正在進行的海洋風 1 號計畫。

As a result of the Ocean Wind 1 cancellation, we are in discussions with our client about impacts to our 2023 budget and 2024 forecast and are proceeding prudently with additional cost commitments until a path is determined. As you can see on the right-hand side, we have remained committed to our core portfolio of small scale, recurring work tied to long-standing utility customer MSAs and we continue to diversify our portfolio to have a balance between electric and gas. We also remain diversified geographically with no one geography representing more than 11% on of revenues. With that, I'll turn it back to Karen.

由於 Ocean Wind 1 取消，我們正在與客戶討論 2023 年預算和 2024 年預測的影響，並謹慎地進行額外成本承諾，直到確定路徑。正如您在右側所看到的，我們仍然致力於與長期公用事業客戶MSA 相關的小規模、經常性工作的核心投資組合，並且我們繼續使我們的投資組合多樣化，以在電力和天然氣之間取得平衡。我們也維持地理多元化，沒有一個地域佔收入的比例超過 11%。這樣，我會把它轉回給凱倫。

Thanks, Paul. Our year-to-date results are evidence of our ongoing efforts, and we look to finishing the year strong. On Slide 22, we are increasing our 2023 utility net income guidance to now be in the range of $215 million to $225 million. And we are reaffirming our 2023 Centuri revenue and adjusted EBITDA margin guidance. We are confident that each business has strong performance to date will drive full year results within these updated and reaffirmed guidance ranges.

謝謝，保羅。我們今年迄今的成果證明了我們持續努力的成果，我們希望以強勁的勢頭結束這一年。在投影片 22 中，我們將 2023 年公用事業淨利指引值提高到目前的 2.15 億美元至 2.25 億美元之間。我們重申 2023 年 Centuri 收入和調整後 EBITDA 利潤率指引。我們相信，迄今為止每項業務的強勁業績都將推動全年業績保持在這些更新和重申的指導範圍內。

Additionally, we are again making an upward revision to 2023 utility CapEx guidance now $720 million to $740 million. This update is the result of the responsibility we have to invest in our infrastructure, to meet the better-than-expected customer growth and favorable new business trends across our service territories. And of course, all of this while ensuring we maintain a safe and reliable distribution system for the benefit of all of our customers. At Centuri, based on the first 9-month performance of 2023, we continue to expect revenue to fall towards the higher end of the range, where the final adjusted EBITDA margin at Centuri ends up will depend on the mix of work and the level of storm activity for the remainder of the year, but we feel heartened that we continue to see improved margins over the last 12 months at our utility services business.

此外，我們再次將 2023 年公用事業資本支出指引上調至 7.2 億美元至 7.4 億美元。此次更新是我們有責任投資基礎設施的結果，以滿足我們服務領域超出預期的客戶成長和有利的新業務趨勢。當然，所有這一切同時確保我們維護一個安全可靠的分銷系統，以造福所有客戶。在 Centuri，根據 2023 年前 9 個月的業績，我們繼續預計收入將下降至該範圍的高端，其中 Centuri 最終調整後的 EBITDA 利潤率最終將取決於工作組合和工作水平今年剩餘時間裡，風暴活動仍然存在，但令我們感到振奮的是，我們的公用事業服務業務在過去12 個月中繼續看到利潤率的提高。

A brief note on the long-term guidance at Centuri. Due to pending S-1 restrictions related to providing forward-looking guidance, we have removed for now our long-term guidance at Centuri. Before we open the call up to Q&A, I want to point to Slide 23 and emphasize that our teams are focused on executing our strategic priorities, delivering strong financial results and providing exceptional service to our customers. At Southwest Gas Holdings, we are confident in our path forward as a premier pure-play natural gas utility. We plan to continue delivering steady organic rate base growth through strong regional demand dynamics as well as earnings growth through financial discipline, operational excellence and constructive regulatory relationships. We're advancing towards the planned separation of Centuri, putting the company in a better position to align with stockholders and to delever the business organically with healthy cash flow generation. With that, I'd like to open the call for questions.

關於 Centuri 長期指導的簡要說明。由於與提供前瞻性指導相關的 S-1 限制懸而未決，我們暫時取消了 Centuri 的長期指導。在我們開始問答之前，我想指出幻燈片 23 並強調我們的團隊專注於執行我們的策略重點、交付強勁的財務業績並為我們的客戶提供卓越的服務。在西南天然氣控股公司，我們對作為一流的純天然氣公用事業公司的前進道路充滿信心。我們計劃繼續透過強勁的區域需求動態實現穩定的有機利率基礎成長，並透過財務紀律、卓越營運和建設性的監管關係實現獲利成長。我們正在推進 Centuri 的計劃分離，使公司能夠更好地與股東保持一致，並透過健康的現金流生成來有機地去槓桿化業務。至此，我想開始提問。

(Operator Instructions) We'll take our first question from Richard Sunderland with JPMorgan.

（操作員說明）我們將接受摩根大通的 Richard Sunderland 提出的第一個問題。

I appreciate that you can't speak to the IPO, but are you able to outline when the market should expect a definitive path on separation announcement or at least what the next hurdles are in the process now that you have the PLR.

我很高興您不能就 IPO 發表講話，但您能否概述一下市場何時應該預期分拆公告的明確路徑，或者至少在您擁有 PLR 後，該過程中的下一個障礙是什麼。

Rich, it's Rob Stefani. So as you highlighted, we are no longer waiting on the private letter ruling given the IRS' decision not to rule. We continue to monitor the markets and any decision on timing will be subject to, among other things, new Board approval of the form of the transaction as well as any type of regulatory approval of filings. I think to the extent that we proceed on a path to do something like a straight spend than the prior guidance that we highlighted would remain intact.

里奇，我是羅布史蒂芬尼。因此，正如您所強調的，鑑於國稅局決定不做出裁決，我們不再等待私訊裁決。我們將繼續監控市場，任何時間決定都將受到新董事會對交易形式的批准以及任何類型的監管機構對備案文件的批准等因素的影響。我認為，如果我們繼續走直接支出之類的道路，那麼我們先前強調的指導將保持不變。

Understood. And when you're saying prior guidance, you're saying 1Q '24?

明白了。當您說事先指導時，您是說 24 年 1 季？

That's correct.

這是正確的。

Great. Very helpful. Turning to the Centuri side with this offshore wind update, can you speak more to the potential '23, '24 impacts, particularly given Centuri's overall revenue guidance was reiterated with that high-end language as well? And then what is the backlog impact overall of these cancellations?

偉大的。很有幫助。轉向 Centuri 方面的離岸風電更新，您能否更多地談談“23”、“24”的潛在影響，特別是考慮到 Centuri 的總體收入指導也以這種高端語言重申？那麼這些取消的總體積壓影響是什麼呢？

Rich, I'm going to turn the question -- your question over to Chad Van Sweden, our CFO at Centuri to respond to that.

Rich，我將把你的問題轉交給我們 Centuri 的財務長 Chad Van Swweden 來回答。

Yes, Rich, we have not received formal cancellation from our customer on Ocean Wind 1. As of yet, we do expect that, that will likely be forthcoming. Our offshore wind revenue is a relatively modest part of our overall revenue, representing less than 7%. As we indicated in the earnings slides, our total offshore wind revenue for this year is expected to be approximately $200 million. That's down from approximately $220 million previously, reflecting a reduction as a result of the cancellation.

是的，Rich，我們還沒有收到客戶對 Ocean Wind 1 的正式取消。到目前為止，我們確實預計這種情況很可能很快就會發生。我們的離岸風電收入占我們總收入的比例相對較小，不到 7%。正如我們在收益幻燈片中指出的那樣，我們今年的離岸風電總收入預計約為 2 億美元。這比之前的約 2.2 億美元有所下降，反映出取消導致的減少。

Great. And maybe one final one for me, just sticking with the Centuri side. Could you speak to the trends on the gas infrastructure revenues in terms of the downward trajectory in 3Q and the overall outlook in the '24. Any color on MSA work overall would be helpful.

偉大的。也許對我來說最後一個就是堅持百人隊一邊。您能否談談天然氣基礎設施收入的趨勢，即第三季的下降軌跡和 24 世紀的整體前景。 MSA 工作整體上的任何顏色都會有所幫助。

Sure. So we had record revenues in Canada in 2022. Those have normalized this year, which is really the decline that you're seeing in the numbers. Overall, the business continues to sort of track the market and grow. We just had an extraordinary year in 2022 in Canada, where our revenues in Canadian dollars were up almost $100 million. So they've normalized a bit this year, masking the growth in the overall sort of gas business, which continues to track the growth in the market.

當然。因此，2022 年我們在加拿大的收入創下了紀錄。今年這些收入已經正常化，這實際上是您在數字中看到的下降。總體而言，該業務繼續追蹤市場並成長。 2022 年，我們在加拿大度過了不平凡的一年，我們的加元收入成長了近 1 億美元。因此，今年它們已經正常化了一些，掩蓋了整體天然氣業務的成長，而天然氣業務繼續追蹤市場的成長。

The next question is from Christopher Ellinghaus with Siebert Williams Shank.

下一個問題是 Christopher Ellinghaus 和 Siebert Williams Shank 提出的。

Maybe for Justin or Karen, the better-than-expected customer growth and the increase in the CapEx, is this something that you expect to continue on trend? And does this change your expected rate base growth at all?

也許對賈斯汀或凱倫來說，超出預期的客戶成長和資本支出的增加，是您期望繼續保持的趨勢嗎？這是否會改變您預期的利率基礎成長？

Chris, it's Justin. Yes. I mean I think it's more just reflective of this last year. We'll look at guidance in February for the future. But right now, we're kind of just focused on this year and it's -- from where we started at the year, it's better this year than what we had originally anticipated.

克里斯，這是賈斯汀。是的。我的意思是，我認為這更能反映去年的情況。我們將在二月研究未來的指導。但現在，我們只關註今年，從今年開始的情況來看，今年比我們最初預期的要好。

Okay. And Rob, given your guidance and the really phenomenal quarter in the third quarter for the LDC sort of suggests a lower fourth quarter year-over-year. Can you talk about what might be some of the headwinds there?

好的。羅布，考慮到您的指導以及最不發達國家第三季度真正驚人的季度，這表明第四季度的同比情況較低。您能談談那裡可能存在的一些不利因素嗎？

Yes. I think, Chris, as you know, within our guidance, we have a COLI forecast of $3 million to $5 million. Obviously, that's always less predictable as well as there are several timing-related items that we would expect to come through. And so we've updated guidance, we're confident in that new guidance range, but continue to monitor early performance and whatnot.

是的。克里斯，我想，正如你所知，在我們的指導下，我們對 COLI 的預測為 300 萬至 500 萬美元。顯然，這總是難以預測，而且我們預計會遇到一些與時間相關的項目。因此，我們更新了指導意見，我們對新的指導範圍充滿信心，但會繼續監控早期表現等。

The next question is from Ryan Levine with Citi.

下一個問題來自花旗集團的 Ryan Levine。

just clarify a couple of things on offshore wind. To the extent, I think you highlighted it less than 7% from a top line standpoint. Is there any color you could share around the margin profile of those projects relative to the rest of the Centuri business. And to the extent that Sunrise or something else were to be canceled, is there a certain cost that would be borne by the company on a go-forward basis?

只是澄清一些有關海上風電的事情。某種程度上，我認為從營收的角度來看，你強調這一點的比例還不到 7%。關於這些項目相對於 Centuri 其餘業務的利潤狀況，您有什麼可以分享的嗎？如果 Sunrise 或其他項目被取消，公司是否需要承擔一定的成本？

Yes. Sure. Ryan, this is Chad Van Sweden. Our offshore wind revenue, the margins are roughly in line with the margins we see on our electric segment. So there's nothing particularly extraordinary about those margins. There isn't a lot of overhead that goes along with that offshore wind work, and it's generally we're building units or components. So whether we do 10 or 100, it doesn't significantly change the margins that much. There are some wind down costs if we mobilize a project and then have to demobilize on a project, but we do have the ability to seek recovery of those costs from our customer. Our overhead is relatively modest in the sense that all this work is performed by union labor. So if a project does not continue forward, we send the labor back to the hall. We do not own or rent any facilities. Those are provided to us by the customer, and we generally don't have much equipment cost for this type of work. So relatively modest overhead costs, whatever cost we do incur to demo, we are able to recover those from our customers.

是的。當然。瑞安，我是瑞典查德‧範。我們的離岸風電收入、利潤率與我們在電力領域看到的利潤率大致一致。因此，這些利潤並沒有什麼特別之處。離岸風電工作並沒有太多的管理費用，通常我們都在建造單位或組件。因此，無論我們做 10 個還是 100 個，利潤率的變化都不會那麼大。如果我們動員一個項目然後不得不撤消一個項目，則會產生一些逐步減少的成本，但我們確實有能力從客戶那裡尋求收回這些成本。我們的管理費用相對較低，因為所有這些工作都是由工會勞工完成的。因此，如果專案無法繼續推進，我們會將勞動力送回大廳。我們不擁有或租用任何設施。這些是客戶提供給我們的，我們通常沒有太多的設備成本來完成此類工作。因此，管理費用相對較低，無論我們在演示中花費多少費用，我們都能夠從客戶那裡收回這些費用。

Okay and then a financing question in terms of the PGA proceeds expected to come to the holding company in the next -- or the company within the next few months. What's the use of that cash?

好的，然後是關於 PGA 收益的融資問題，預計未來幾個月內將流向控股公司或公司。那些現金有什麼用？

Yes. So that -- the cash is obviously will be redeployed back into the utility in large part. I think that return of the cash and -- and obviously, a lot depends on where commodity costs end up in the fourth quarter. But we continue to anticipate that as the PGA unwinds, that will help limit our financing costs at the utility, which is reflected in the fact that we're putting out there that we have very limited equity needs through 2025 to the return of that PGA and then we have very limited debt financing through to 2026.

是的。因此，現金顯然將大部分重新部署回公用事業公司。我認為現金的回報——顯然，很大程度上取決於第四季度商品成本的最終結果。但我們仍然預計，隨著 PGA 的解除，這將有助於限制我們在公用事業公司的融資成本，這反映在我們提出的事實中，即到 2025 年我們對 PGA 回報的股權需求非常有限到2026年，我們的債務融資非常有限。

And then last question for me. In terms of the potential separation time line, in your slide deck, you have a check mark or a box to be checked around Q1, '24. Are you reaffirming that date? Or is that much more uncertain given potential path that the company could go down?

然後是我的最後一個問題。就潛在的分離時間軸而言，在您的幻燈片中，您可以在 24 年第一季左右勾選一個複選標記或一個方塊。您是否重申該日期？或者考慮到公司可能走下坡路，這是否更不確定？

Yes, Ryan, the way I think we can answer that is, obviously, the former transaction will, to a certain extent, dictate timing. So to the extent that the timing of an IPO occurs, then we would be subject to lockup periods, which are typically 4 to 6 months. So any transaction following an IPO would be subject to potential restrictions under lockups. To the extent that we proceed with a different form of transaction, which we continue to evaluate alternatives like a tax-free spin, then we remain on track for the first quarter.

是的，瑞安，我認為我們可以回答的方式是，顯然，前一筆交易將在某種程度上決定時機。因此，如果 IPO 發生，我們將受到鎖定期的限制，通常為 4 至 6 個月。因此，首次公開發行後的任何交易都將受到禁售期的潛在限制。如果我們繼續進行不同形式的交易，並繼續評估免稅旋轉等替代方案，那麼我們將在第一季保持在正軌上。

The next question is from Tanner James with Bank of America.

下一個問題來自美國銀行的坦納詹姆斯。

Just coming back to kind of higher level comments on the balance sheet here. You commented in the remarks on your metrics and sustaining them through, I think you said '25 just with the ATM. What does that position you on an FFO to debt basis through your period -- through the forecast period here. If you could be a little bit more granular and specific. And then if you can update us in tandem on your financing plan as it pertains to the spinout and just how you think about that impacting the consolidated FFO to debt metrics on a pro forma basis?

只是回到這裡對資產負債表的更高級別的評論。您在評論中評論了您的指標並維持它們，我想您只是用 ATM 說了“25”。這對您在整個期間（即此處的預測期間）的 FFO 債務基礎上有何影響。如果你能說得更細粒度和具體一點的話。然後，您能否向我們同步介紹您與分拆相關的融資計劃以及您如何看待這對預估的合併 FFO 與債務指標的影響？

Yes, Julien, I think clearly, the form of the transaction, again, will, to a large extent, dictate the FFO to debt type metrics. Certainly, at the utility, which usually remains strong. We expect FFO to debt above the S&P FFO to debt kind of target metrics for our credit rating. I think the -- at the holding company level, as you can imagine, if we were to consider transactional alternatives like an IPO with sell-down that has different leverage impacts than an IPO with -- followed by a tax-free or other spin. And so I think for now, kind of as far as pro forma leverage metrics at the holding company, we'll have to defer commenting on that until the form of the transaction is decided.

是的，Julien，我清楚地認為，交易的形式將在很大程度上決定 FFO 的債務類型指標。當然，在實用性方面，它通常仍然很強大。我們預計 FFO 的債務會高於標準普爾 FFO 的債務，這是我們信用評級的目標指標。我認為，正如你可以想像的那樣，在控股公司層面，如果我們考慮交易替代方案，例如進行拋售的 IPO，其槓桿影響與隨後進行免稅或其他剝離的 IPO 不同。 。因此，我認為目前就控股公司的備考槓桿指標而言，我們必須推遲對此發表評論，直到決定交易形式。

Got it. And just to clarify here, I think you guys have talked about this 14% FFO to debt through '25 or by '25 before. I mean can you elaborate where you stand kind of status quo? I mean, is there any way to kind of frame the puts and takes around potentially raising proceeds whatever you can do? I know it's complicated.

知道了。在這裡澄清一下，我想你們已經討論過 25 年前或 25 年前的 14% FFO 債務。我的意思是你能詳細說明一下你的現況嗎？我的意思是，有沒有什麼方法可以建立看跌期權並規避可能籌集的收益，無論你能做什麼？我知道這很複雜。

Yes. The guidance on the FFO to debt, again, like as we look at those metrics at the holding company level, it depends -- we plan to separate Centuri. And so the timing of the Centuri separation will obviously impact those credit metrics and especially the forum. And so as far as if it's status quo, and you were running forward with Centuri continuing to be in our financials, then we do recover, obviously, Centuri is recovered, their EBITDA has recovered. The utility continues to have success on rate case outcomes and with customer growth. And so our credit metrics continue to improve through that '24, '25 period.

是的。關於 FFO 債務的指導，就像我們在控股公司層面查看這些指標一樣，這取決於我們計劃分離 Centuri。因此，Centuri 分離的時間顯然會影響這些信用指標，尤其是論壇。就現狀而言，如果 Centuri 繼續在我們的財務狀況中前進，那麼我們確實會恢復，顯然，Centuri 恢復了，他們的 EBITDA 也恢復了。該公用事業公司在費率個案結果和客戶成長方面繼續取得成功。因此，我們的信用指標在「24」、「25」期間持續改善。

Got it. Excellent. And then just -- sorry, just pivoting back to the Centuri side real quickly. Obviously, a lot of comments here on offshore here, but just separately, even independent of offshore, just -- can you comment a little bit on what's going on the core business ex-OSW and what's driving some of the declines there? And how are you seeing that outlook here? I know that you can't comment too much on forward-looking guidance at this point. But -- any commentary around on the ex-offshore business and prospects would be appreciated here, just given previous commentary about forward-looking.

知道了。出色的。然後——抱歉，很快就回到百人隊一側。顯然，這裡有很多關於離岸的評論，但只是分開的，甚至獨立於離岸，只是——你能評論一下 OSW 之外的核心業務的情況以及是什麼導致了那裡的一些下降嗎？您如何看待這種前景？我知道您目前不能對前瞻性指引發表太多評論。但是，只要考慮到先前有關前瞻性的評論，任何有關離岸業務和前景的評論都會在這裡受到讚賞。

I don't think we -- we commented only in the slide deck about projects in the backlog and total in the backlog. And what we've provided here today as far as revenues realized against that backlog. But I don't think we've provided other guidance there.

我不認為我們——我們只在幻燈片中評論了待辦事項中的項目和待辦事項中的總數。我們今天在這裡提供了針對積壓訂單實現的收入。但我認為我們沒有提供其他指導。

Maybe to make this a little bit more possible to answer. Just it seems like it was like down year-over-year ex offshore wind. Maybe you could speak to what drove that, for instance, and how you think about that fitting into the plan.

也許是為了讓這個問題更有可能得到答案。看起來就像是離岸風電較去年同期下降。例如，也許您可以談談是什麼推動了這一點，以及您如何看待將其納入計劃。

Yes. We talked a little bit about that the gas business was down a small amount and that was driven by an extraordinary year in Canada, which is -- we're seeing a more normalized year in Canada this year. So -- the decline in Canada is masking the growth in the overall business. On the gas side, the electric business is growing. And so I guess I'm having a little bit of hard time tracking your comments around the business decline.

是的。我們談到了天然氣業務小幅下降，這是由加拿大不平凡的一年推動的，也就是說，今年我們在加拿大看到了更正常的一年。因此，加拿大的下滑掩蓋了整體業務的成長。在天然氣方面，電力業務正在成長。因此，我想我很難跟踪您對業務下滑的評論。

No. Got it. Yes. It's clearly the gas piece there. I appreciate it. I know it's difficult to comment too much in this powerpoint. Best the luck, speak to you guys soon.

不，明白了。是的。顯然是那裡的氣體部件。我很感激。我知道在這個幻燈片中很難評論太多。祝你好運，盡快與你們交談。

The next question is from Stephen D'Ambrisi with Granite Lake.

下一個問題來自 Stephen D'Ambrisi 和 Granite Lake。

I just had two quick ones. Last quarter, I think in the slides, there was a disclosure of Sunrise contract size, I think, $170 million. Do you have a similar number for what Ocean Wind 1 is?

我剛吃了兩個快的。上個季度，我認為在幻燈片中披露了 Sunrise 合約規模，我認為是 1.7 億美元。你有類似的海風 1 號嗎？

Just given kind of where we're at, we're not going to disclose that information, we can follow up.

鑑於我們目前的情況，我們不會透露該信息，我們可以跟進。

That's fine. And then just on the Sunrise process from here. Like -- so it appears like Orsted and Eversource want to rebid the project and accelerated RFP. Are you guys still doing work for them in the meantime? Or what's the plan there?

沒關係。然後就從這裡開始日出過程。就像——看來 Orsted 和 Eversource 希望重新投標該項目並加速 RFP。同時你們還在為他們工作嗎？或那裡有什麼計劃？

Sorry, could you repeat the question? Sorry, Stephen, I didn't hear the question on Sunrise?

抱歉，您能重複這個問題嗎？抱歉，史蒂芬，我沒有聽到關於日出的問題？

Sorry, I was on mute. Just in terms of Sunrise, it sounds like Eversource and Orsted want to rebid into the NYSERDA accelerated RFP. And so just in the meantime, are you guys still doing work for them? Or like what is -- have you -- is it pencils down and you wait until you see what happens? Or just tell us a little bit about the process there.

抱歉，我當時處於靜音狀態。就 Sunrise 而言，聽起來 Eversource 和 Orsted 想要重新競標 NYSERDA 加速 RFP。同時，你們還在為他們工作嗎？或者就像什麼——你有嗎——是用鉛筆寫下來，然後你等著看會發生什麼嗎？或者只是告訴我們一些有關那裡的流程的資訊。

No. We're continuing -- we've started and we continue to perform work for Sunrise and there's no indication from our customers that we should expect any delays or slowdown in that work. They're rebidding the PPA, at least as far as I understand, doesn't have any impact on the overall timing of that project.

不。我們正在繼續——我們已經開始並繼續為 Sunrise 開展工作，我們的客戶沒有跡象表明我們應該預計這項工作會出現任何延遲或放緩。他們正在重新招標購電協議，至少據我所知，不會對該專案的整體時間表產生任何影響。

This concludes the Q&A portion of today's conference. I would now like to turn the call back over to Justin Forsberg for closing remarks.

今天會議的問答部分到此結束。我現在想將電話轉回給賈斯汀·福斯伯格，讓其致閉幕詞。

Thanks, MJ, and thank you all for joining us today and for your questions. This concludes our conference call, and we look forward to seeing many of you as we participate in the Utility Week activity in New York in early December, such as the Wells Fargo and Wolfe Utility Conferences along with Bank of America's upcoming natural gas conference among other events. You will see on Slide 24, my updated contact information. Mal is a member of the Southwest Gas Holdings team. Feel free to reach out at any time, and thank you for your interest in Southwest Gas Holdings. Have a good day.

謝謝 MJ，也謝謝大家今天加入我們並提出問題。我們的電話會議到此結束，我們期待在 12 月初參加紐約公用事業週活動時見到你們中的許多人，例如富國銀行和沃爾夫公用事業會議以及美國銀行即將舉行的天然氣會議等事件。您將在投影片 24 上看到我更新的聯絡資訊。 Mal 是西南天然氣控股團隊的成員。歡迎隨時與我們聯繫，感謝您對西南瓦斯控股的關注。祝你有美好的一天。

This concludes today's Southwest Gas Holdings Third Quarter 2023 Earnings Call and Webcast. You may disconnect your line at this time. Have a wonderful day.

今天的西南天然氣控股公司 2023 年第三季財報電話會議和網路廣播到此結束。此時您可以斷開線路。祝你有美好的一天。