Southwest Gas Holdings Inc (SWX) 2025 Q1 法說會逐字稿

Welcome to Southwest Gas Holdings' first-quarter 2025 earnings conference call. Today's call is being recorded, and our webcast is live. A replay will be available later today and for the next 12 months on the Southwest Gas Holdings website. (Operator Instructions)

歡迎參加西南瓦斯控股公司 2025 年第一季財報電話會議。今天的通話正在錄音，我們的網路直播正在直播。今天稍晚以及未來 12 個月內，重播將在西南天然氣控股公司網站上提供。（操作員指示）

I will now turn the call over to Justin Forsberg, Vice President of Investor Relations and General of Southwest Gas Holdings. Please go ahead.

現在我將電話轉給西南天然氣控股公司投資者關係副總裁兼總經理賈斯汀·福斯伯格 (Justin Forsberg)。請繼續。

Thanks, and hello, everyone. Thanks for joining the call today. This morning, we issued and posted to Southwest Gas Holdings website our first quarter 2025 earnings release and the associated Form 10-Q. The slides accompanying today's call are also available on Southwest Gas link's website. We'll refer to those slides by number throughout the call today.

謝謝，大家好。感謝您今天參加電話會議。今天上午，我們在西南燃氣控股網站上發布並公佈了 2025 年第一季財報和相關的 10-Q 表。今天電話會議的幻燈片也可在西南天然氣公司的網站上找到。在今天的整個通話過程中，我們將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 2025 earnings and discuss longer-term guidance. Information that will be discussed today contains forward-looking statements. These statements are based on management's assumptions and what the future holds that are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals.

請注意，在今天的電話會議上，我們將討論可能影響 2025 年收益的某些因素並討論長期指導。今天將要討論的資訊包含前瞻性陳述。這些聲明基於管理層的假設和未來情況，受多種風險和不確定性的影響，包括未來經濟狀況和監管部門批准的影響的不確定性。

This cautionary note as well as a note regarding non-GAAP measures is included on slides 2 and 3 of this presentation, in today's press release and in 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 stated today. We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statement.

此警告說明以及有關非 GAAP 指標的說明包含在本簡報的第 2 和第 3 張投影片、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中，我們鼓勵您閱讀。這些風險和不確定性可能會導致實際結果與今天所述的結果有重大差異。我們警告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; and Rob Stefani, Chief Financial Officer of Southwest Gas Holdings; as well as Justin Brown, President of Southwest Gas Corporation; and other members of the management team available to answer your questions during the Q&A portion of the call today.

如幻燈片 4 所示，在今天的電話會議上，我們邀請了西南天然氣控股公司總裁兼首席執行官 Karen Haller；以及西南天然氣控股公司首席財務官 Rob Stefani；以及西南天然氣公司總裁賈斯汀·布朗；以及管理團隊的其他成員將在今天電話會議的問答環節回答您的問題。

I'll now turn the call over to Karen.

我現在將電話轉給凱倫。

Thanks, Justin. Thank you for joining us today to discuss the Southwest Gas Holdings results and outlook. We want to briefly address the delay in the timing of our earnings announcement and call. Centuri has an issue arise late in the process of finalizing its financial statements for the quarter that caused a delay in the process of issuing the Centuri financial statements. That delay caused a corresponding delay for us as Centuri remains a consolidated subsidiary. The issue has now been resolved and do not intend to go into any further detail on this topic. We look forward to discussing our Q1 results with you today.

謝謝，賈斯汀。感謝您今天加入我們討論西南天然氣控股公司的業績和前景。我們想簡要談談我們的收益公告和電話會議時間的延遲。Centuri 在完成本季財務報表的過程中後期出現了一個問題，導致 Centuri 財務報表的發布過程延遲。由於 Centuri 仍然是合併子公司，這種延遲也為我們帶來了相應的延遲。這個問題現已解決，我們不再打算進一步討論該主題。我們期待今天與您討論我們的第一季業績。

Starting with slide 5. During the first quarter, we continued to make considerable progress positioning Southwest Gas for long-term success and growth. We advanced our regulatory strategy with constructive outcomes in our Arizona and Great Basin rate cases, and we continue to work collaboratively with our regulators to implement regulatory frameworks that support the significant growth we are experiencing in the communities we serve. We continue to see tangible benefits from our utility optimization strategy.

從投影片 5 開始。在第一季度，我們繼續取得長足進展，為西南天然氣的長期成功和成長奠定了基礎。我們在亞利桑那州和大盆地費率案件中取得了建設性成果，從而推進了我們的監管策略，並且我們繼續與監管機構合作，實施監管框架，以支持我們所服務社區所經歷的顯著增長。我們繼續從效用優化策略中看到切實的利益。

Southwest Gas finished the quarter with record net income and slightly lower quarter-over-quarter O&M expenses and remains committed to its culture of continuous improvement and optimization. With the Arizona rate case decision now behind us, we are confident in reaffirming each of Southwest Gas' previously communicated guidance ranges including our net income range of $265 million to $275 million for the full year. We continue to expect robust capital spending driven by need for safety and reliability as well as economic activity in our service territories. I will discuss guidance in more detail later.

西南天然氣公司本季的淨收入創歷史新高，營運和維護費用較上季略有下降，並持續致力於持續改善和優化的企業文化。現在，亞利桑那州利率案的判決已經塵埃落定，我們有信心重申西南天然氣公司先前公佈的各項指導範圍，包括全年淨收入 2.65 億美元至 2.75 億美元。我們繼續預計，受安全性和可靠性需求以及服務區域經濟活動的推動，資本支出將持續強勁成長。我稍後將更詳細地討論指導。

Following two consecutive years of a return on equity of over 8%, we finished the quarter with a trailing 12-month ROE of 8.2%. Southwest Gas Holdings continues to press forward on our transformational strategy of becoming a premier fully regulated natural gas utility. We continue to monitor market conditions with respect to our separation strategy options for Centuri and we remain focused on completing the separation in a manner that is beneficial to our stockholders.

在連續兩年實現超過 8% 的股本回報率之後，本季我們的過去 12 個月股本回報率達到 8.2%。西南天然氣控股公司繼續推進我們的轉型策略，成為一家首屈一指的、完全受監管的天然氣公用事業公司。我們將繼續監測與 Centuri 分離策略選擇有關的市場狀況，並繼續專注於以有利於股東的方式完成分離。

As you can see on slide 6, we remain on track with achieving our 2025 strategic priorities. As I mentioned earlier, we received final approval of our Great Basin rate case and a constructive decision in the Arizona rate case in March. Justin Brown will discuss our regulatory progress and strategy in more detail in a moment, but I will note that we feel confident in our regulatory strategy as we focus our efforts on the system improvement mechanism in Arizona, and on our outstanding California rate case proceeding.

正如您在第 6 張投影片上看到的，我們仍在按計劃實現 2025 年戰略重點。正如我之前提到的，我們在三月獲得了大盆地費率案的最終批准，並在亞利桑那州費率案中獲得了建設性裁決。賈斯汀布朗稍後將更詳細地討論我們的監管進展和策略，但我要指出的是，我們對我們的監管策略充滿信心，因為我們將精力集中在亞利桑那州的系統改進機制以及我們未決的加州利率案件程序上。

As it relates to plans for Centuri, we remain committed to separating Centuri, and we will provide further updates on timing and structure when available. Of the remaining separation options, we may ultimately separate the business through a series of taxable sell-downs or share exchanges or some combination thereof. We've also preserved the alternative of a tax-free spin-off of the remaining share position. However, if a taxable transaction is executed, the ability to execute a tax-free spend will no longer be possible. The successful execution of a sell-down or share exchange is continued on favorable market and other conditions.

就 Centuri 計劃而言，我們仍致力於分離 Centuri，並將在可用時提供有關時間和結構的進一步更新。在剩餘的分離選項中，我們最終可能會透過一系列應稅出售或股票交換或兩者結合的方式來分離業務。我們也保留了免稅分拆剩餘股份的選擇。然而，如果執行了應稅交易，則不再可能執行免稅支出。在市場和其他條件有利的情況下，減持或換股將繼續成功執行。

Now that we are more than a year past Centuri IPO, Centuri is eligible to file a Form S-3 to register our remaining Centuri shares, which we expect will shorten the process of executing the sale transaction in the market. We continue to gauge market conditions for executing on our possible separation options. Regardless of the form of an initial taxable transaction, whether it be a sell-down or share exchange, both of those options would remain on the table for further separation steps as we further exit our Centuri ownership position after the initial transaction.

現在 Centuri 首次公開募股已經過去了一年多，Centuri 有資格提交 S-3 表格來註冊我們剩餘的 Centuri 股份，我們預計這將縮短在市場上執行銷售交易的過程。我們將繼續評估市場狀況，以執行我們可能的分離選擇。無論初始應稅交易的形式為何，無論是出售或股票交換，當我們在初始交易後進一步退出 Centuri 所有權地位時，這兩個選項仍將保留在進一步分離步驟中。

Our 2025 financing plan continues to include the extension of the existing $550 million term loan facility at Southwest Gas Holdings and the issuance of less than $100 million of new equity under our existing ATM program. These capital markets efforts are contingent on, among other things, the successful execution of Centuri separation transactions. And all of our 2025 equity needs may be avoided depending on the timing and form of the Centuri separation.

我們的 2025 年融資計畫繼續包括延長西南天然氣控股公司現有的 5.5 億美元定期貸款額度，以及根據我們現有的 ATM 計畫發行不到 1 億美元的新股權。這些資本市場努力取決於 Centuri 分離交易的成功執行等因素。並且，根據 Centuri 分離的時間和形式，我們所有 2025 年的股權需求都可能得以避免。

As noted on slide 7, we have carried our strong balance sheet position into 2025, and it provides us with the flexibility to be thoughtful in our approach to capital investments and our efforts to deliver stockholder value. I'll highlight a few of our team's achievements on slide 7. At the utility, we continue to see robust growth because of strong economic activity in our service area which has led to about 40,000 additional new meter sets during the last 12 months. As of the first quarter of 2025, we had more than $400 million of cash on hand across the enterprise, with more than $1 billion of liquidity, which enables us to honor our commitments and execute the remainder of our 2025 strategy. We remain excited about the future of the company, now to Justin.

如投影片 7 所示，我們已將強勁的資產負債表狀況帶入 2025 年，這為我們提供了靈活性，讓我們能夠深思熟慮地採取資本投資方式並努力實現股東價值。我將在第 7 張投影片上重點介紹我們團隊的一些成就。在公用事業方面，我們繼續看到強勁的成長，因為在我們服務的區域內強勁的經濟活動導致在過去的 12 個月內增加了約 40,000 套新電錶。截至 2025 年第一季度，我們整個企業手頭上的現金超過 4 億美元，流動資金超過 10 億美元，這使我們能夠履行承諾並執行 2025 年策略的剩餘部分。我們仍然對公司的未來感到興奮，現在輪到賈斯汀了。

Thanks, Karen. On slide 9, you'll see an overview of the progress we've made on our regulatory strategy as well as what remains open for this year. Rates became effective in Nevada early in the second quarter last year after a positive outcome on our rate case. The commission authorized an increase of nearly $300 million in rate base and a revenue increase of approximately $59 million, which represented 98% of our request after consideration to proposals on depreciation expense and cost of capital.

謝謝，凱倫。在第 9 張投影片上，您將看到我們在監管策略方面取得的進展概述，以及今年仍未解決的問題。在我們的利率案例取得積極成果後，內華達州的利率於去年第二季初開始生效。委員會批准將費率基數增加近 3 億美元，並將收入增加約 5,900 萬美元，在考慮了折舊費用和資本成本的提案後，這占我們要求的 98%。

At Great Basin, refresh rates that went into effect last September were later adjusted in November to reflect settlement rates and a final decision was issued this past March. I'll discuss our completed Arizona general rate case and our pending California rate case in more detail on the next few slides. But I'm pleased with the progress we've made on refreshing rates and minimizing regulatory lag in each of our jurisdictions as we remain steadfast in our commitment to working collaboratively with our regulators on constructive outcomes that benefit all parties.

在大盆地，去年 9 月生效的更新率後來在 11 月進行了調整，以反映結算率，並於今年 3 月發布了最終決定。我將在接下來的幾張幻燈片中更詳細地討論我們已完成的亞利桑那州一般費率案件和未決的加州費率案件。但我對我們在更新利率和減少每個司法管轄區的監管滯後方面所取得的進展感到滿意，因為我們堅定不移地致力於與監管機構合作，取得有利於各方的建設性成果。

Before moving to slide 10, I wanted to mention a couple of other noteworthy initiatives that we're currently pursuing in Nevada. First, at Great Basin in response to inquiries about available capacity and the increased demand for natural gas, Great Basin posted a notice of binding open season for potential 2028 system expansion. This open season will remain open through May 28, so we can determine the level of interest of existing and potential new shippers.

在翻到第 10 張投影片之前，我想提一下我們目前正在內華達州推行的其他幾個值得注意的舉措。首先，在大盆地，為了回應有關可用容量和天然氣需求增加的詢問，大盆地發布了一份具有約束力的開放期通知，以應對潛在的 2028 年系統擴建。此次開放期將持續到 5 月 28 日，以便我們確定現有和潛在的新托運人的興趣程度。

At Southwest Gas, we are working with policymakers on legislation that supports the use of alternative forms of ratemaking that would allow the use of formula rates, multiyear rate plans or performance-based rates. This bill referred to as SB 417 was recently passed out of the Senate unanimously and will now be considered by the assembly. The session ends on June 2, so we should know the outcome of the legislation within the next 30 days.

在西南天然氣公司，我們正在與政策制定者合作制定立法，以支持使用替代形式的費率制定方式，允許使用公式費率、多年期費率計劃或基於績效的費率。這項被稱為 SB 417 的法案最近已在參議院獲得一致通過，現在將由議會審議。會議將於 6 月 2 日結束，因此我們應該會在接下來的 30 天內知道立法結果。

Lastly, we also made a filing last Friday, requesting to accelerate the refund of the over-collected PGA balance in Nevada, which was approximately $240 million at the end of the first quarter. We've requested the rate reduction become effective in July of this year.

最後，我們還在上週五提交了一份文件，要求加速退還內華達州多收的 PGA 餘額，該餘額在第一季末約為 2.4 億美元。我們已要求降息於今年七月生效。

Turning to slide 10. The final decision in our Arizona rate case included a $600 million increase in authorized rate base, which includes a full 12 months of post-test year plan consisting of assets placed in service as of the end of last October. This resulted in an $80 million revenue increase and an authorized ROE of 9.84% with no fair value increment.

翻到第 10 張投影片。我們在亞利桑那州利率案中的最終判決包括將授權利率基數增加 6 億美元，其中包括為期 12 個月的測試後年度計劃，其中包括截至去年 10 月底投入使用的資產。這導致收入增加了 8000 萬美元，授權 ROE 達到 9.84%，而公允價值沒有增加。

Rates became effective in March and similar to Nevada after consideration to updating our cost of service to reflect actuals versus proposed and proposals on cost of capital, this outcome reflects nearly 90% of our ask. We believe that the outcome was constructive, and we are especially pleased with the collaboration of the commission staff throughout the process with who we have had -- with who we stipulated to on a number of issues.

利率於 3 月生效，與內華達州類似，在考慮更新我們的服務成本以反映實際情況與資本成本的提議和提案之後，這一結果反映了我們要求的近 90%。我們相信結果是建設性的，我們對委員會工作人員在整個過程中與我們在許多問題上達成一致的合作感到特別高興。

Moving to slide 11. As Karen previously mentioned, our application in Arizona included a proposal to implement a capital tracker program referred to as our System Integrity Mechanism, or SIM. We successfully collaborated on a settlement proposal that included the commission staff and the residential utility consumer office. This agreement was presented to the ALJ at the previously scheduled May 1 hearing and no other parties opposed the settlement.

移至投影片 11。正如凱倫之前提到的，我們在亞利桑那州的申請包括一項實施資本追蹤計畫的提案，該計畫被稱為系統完整性機制（SIM）。我們成功地與委員會工作人員和住宅公用事業消費者辦公室合作制定了和解方案。該協議已在原定於 5 月 1 日舉行的聽證會上提交給 ALJ，並且沒有其他方反對和解。

As described on slide 11, the proposal will allow us to implement a surcharge each year to recover the qualifying nonrevenue-producing investments we make in our system. These qualifying investments primarily relate to the safety and reliability of our system, which represents approximately 40% of the company's annual infrastructure-related capital investments in Arizona. We currently expect a final decision on the SIM within the next 90 days. If approved, the mechanism will become effective immediately, helping to reduce regulatory lag by allowing us to make our first rate filing in March of 2026 to adjust rates effective April 1 to reflect the qualifying investments that we are currently making in calendar year 2025 and to help reduce regulatory lag.

正如第 11 張投影片所述，該提案將允許我們每年徵收附加費，以收回我們在系統中進行的符合條件的非創收投資。這些合格投資主要與我們系統的安全性和可靠性有關，約佔該公司在亞利桑那州年度基礎設施相關資本投資的 40%。我們目前預計將在未來 90 天內對 SIM 做出最終決定。如果獲得批准，該機制將立即生效，允許我們在 2026 年 3 月進行首次利率申報，以調整 4 月 1 日起生效的利率，從而有助於減少監管滯後，以反映我們目前在 2025 日曆年進行的合格投資，並有助於減少監管滯後。

Slide 12 provides an overview of our filed California rate case, which is progressing on schedule and as expected. We received testimony from the public advocate's office, and they are recommending a $26 million revenue increase relative to a return on equity of 9.5% and an equity ratio of 48%. The primary differences between our request and the public advocates office relates to cost of capital and the amount of investment we can make annually through our various tracker programs.

投影片 12 概述了我們提交的加州利率案件，該案件正在按計劃和預期進行。我們收到了公眾辯護辦公室的證詞，他們建議將收入增加 2,600 萬美元，股本回報率為 9.5%，股本比率為 48%。我們的請求與公眾倡導辦公室之間的主要區別在於資本成本以及我們每年可以透過各種追蹤計畫進行的投資金額。

While the POA supports the continuation of our various tracker programs and the new damage prevention tracker that we proposed, they did take exception to the amount of investment that we should be allowed to make each year. We filed Rebuttal Testimony last week and are actively engaged in discussions with the POA in hopes of reaching a mutually acceptable resolution. But if we're unable to reach an agreement, a hearing is scheduled for early June. We expect new rates to become effective in January of 2026.

雖然 POA 支持我們繼續執行各種追蹤計劃和我們提出的新的損害預防追蹤計劃，但他們確實對我們每年應允許進行的投資金額提出了異議。我們上週提交了反駁證詞，並積極與 POA 進行討論，希望達成雙方都可以接受的解決方案。但如果我們無法達成協議，聽證會將於六月初舉行。我們預計新利率將於 2026 年 1 月生效。

Lastly, turning to slide 13. As Karen noted, economic activity and demand for natural gas service remains strong throughout our service territory and we continue to invest in the communities in which we operate. I've highlighted for you on previous calls the activity in Arizona in the advanced manufacturing space, as well as the potential throughout our service territories for additional data center growth in both Arizona and Nevada.

最後，翻到第 13 張投影片。正如凱倫所指出的，在我們的服務區域內，經濟活動和對天然氣服務的需求仍然強勁，我們將繼續對我們營運所在的社區進行投資。我在先前的電話會議中向您強調了亞利桑那州在先進製造領域的活動，以及在我們的服務區域內在亞利桑那州和內華達州增加資料中心的潛力。

The growth in Arizona in these sectors drove the Arizona Commission earlier this year to open a docket to address resource adequacy of natural gas infrastructure and storage in the state. These along with the continued growth in the entertainment, hospitality, manufacturing, warehouse and logistics and mining sectors continue to drive significant in-migration throughout our service territories as evidenced by the additions of 40,000 new meter sets over the past 12 months highlighted on the slide.

亞利桑那州在這些領域的成長促使亞利桑那州委員會在今年稍早開啟了一個議程，以解決該州天然氣基礎設施和儲存資源的充足性問題。這些以及娛樂、酒店、製造、倉儲和物流以及採礦業的持續增長繼續推動我們服務區域的大量人口遷入，幻燈片中突出顯示的過去 12 個月內新增的 40,000 組電錶就是明證。

You'll see on slide 13, the population growth projections for Arizona and Nevada from S&P Global are expected to continue to outpace the national average over the next five years. For Southwest Gas, we believe this economic development and population growth will result in more meter sets and more residential and small commercial customers, which currently represents about 85% of our existing customer mix.

您將在第 13 張投影片上看到，標準普爾全球對亞利桑那州和內華達州的人口成長預測預計在未來五年內將繼續超過全國平均水平。對於西南天然氣而言，我們相信經濟發展和人口成長將帶來更多的儀表組和更多的住宅和小型商業客戶，目前這些客戶約占我們現有客戶組合的 85%。

We continue to see greater than 90% of all new construction built in our service territories, becoming Southwest Gas customers. With that growth comes the need for increased infrastructure investments to support new and existing customers as we respond to requests for new gas service and work to ensure the safety and integrity of our entire distribution system.

我們繼續看到在我們的服務區域內建造的所有新建築中超過 90% 都成為西南天然氣的客戶。隨著這種成長，我們需要增加基礎設施投資來支援新舊客戶，因為我們要回應新的天然氣服務請求，並努力確保整個配送系統的安全和完整性。

As was noted when we refreshed guidance in February, we expect to invest about $4.3 billion over the next five years to support safety, reliability, and economic development across our service territory. We currently expect this capital investment to translate to a compound annual growth rate and rate base of 6% to 8% over that same time period. About 50% of this planned spending is needed for safety and reliability and approximately 30% of the projected plan relates to economic development and new business growth.

正如我們在二月更新指引時所指出的那樣，我們預計在未來五年內投資約 43 億美元來支持我們服務區域的安全、可靠性和經濟發展。我們目前預計，在同一時期內，這項資本投資將轉化為 6% 至 8% 的複合年增長率和利率基數。其中約 50% 的計劃支出用於安全性和可靠性，約 30% 的預期支出與經濟發展和新業務成長有關。

With that, I'll turn the call over to Rob, who will review our financial performance for the first quarter.

說完這些，我將把電話轉給 Rob，他將回顧我們第一季的財務表現。

Thanks, Justin. On slide 15, we provide an adjusted consolidated earnings walk. During the first quarter, the utility Southwest Gas benefited from rate relief in each of our jurisdictions. Nevada rates, as you'll recall, went into effect in April 2024 and Arizona rates went into effect in March 2025. We also saw continued customer growth, along with slightly lower O&M expense, all of which contributed to higher net income. These benefits were partially offset by increased depreciation and amortization as a result of investment in our system as well as higher interest expense and lower other income, both of which were primarily driven by changes in regulatory balances associated with the PGA mechanism and separately COLI.

謝謝，賈斯汀。在第 15 張投影片上，我們提供了調整後的合併獲利預測。在第一季度，西南天然氣公司在我們每個管轄區域內都享受到了費率減免。您可能還記得，內華達州的稅率於 2024 年 4 月生效，亞利桑那州的稅率於 2025 年 3 月生效。我們也看到客戶數量持續成長，同時營運和維護費用略有下降，所有這些都促進了淨收入的成長。這些收益被我們系統投資導致的折舊和攤銷增加以及利息支出增加和其他收入減少部分抵消，這兩者主要受到與 PGA 機制和單獨的 COLI 相關的監管餘額變化的影響。

I'll provide more detail on Southwest Gas in a moment. Centuri's results for the quarter benefited from a higher volume of work under Master Services Agreements, increased bid work, and storm-related activity. Additionally, lower interest expense contributed positively to the quarter. These improvements were partially offset by a reduction in offshore wind project revenues compared to the prior year.

我稍後將提供有關西南天然氣的更多詳細資訊。Centuri 本季的業績受益於主服務協議下工作量的增加、投標工作的增加以及風暴相關活動的增加。此外，較低的利息支出對本季產生了積極貢獻。與前一年相比，這些改進被離岸風電專案收入的減少部分抵消。

Centuri's net income results for the quarter at the consolidated Southwest Gas Holdings level differ from Centuri's reported standalone net income results on an interim basis, primarily due to the impacts of noncontrolling interest. Southwest Gas Holdings standalone results for the quarter also reflect lower overall operating expenses and reduced interest expense on outstanding borrowings.

Centuri 本季在合併西南天然氣控股層面的淨收入結果與 Centuri 報告的臨時獨立淨收入結果不同，這主要是由於非控股權益的影響。西南燃氣控股公司本季的獨立業績也反映出整體營運費用的下降以及未償還借款利息費用的減少。

Moving on to slide 16, we provide a bridge of quarter-over-quarter performance drivers for Southwest Gas. In the first quarter of 2025, utility operating margin increased by $38.9 million, this improvement was primarily driven by the benefits of $27 million of combined rate relief throughout our service jurisdictions. Customer growth drove an additional $5 million of margin as approximately 40,000 new meter sets were added over the past 12 months.

轉到第 16 張投影片，我們為西南天然氣公司提供了季度環比業績驅動因素的橋樑。2025 年第一季度，公用事業營業利潤率增加了 3,890 萬美元，這一增長主要得益於我們服務轄區內 2,700 萬美元的綜合費率減免。由於過去 12 個月增加了約 40,000 組新電錶，客戶成長帶來了額外的 500 萬美元利潤。

The variable interest expense adjustment mechanism in Nevada added approximately $3 million of margin, but has offset dollar for dollar in interest expense, while the regulatory account balance collections contributed nearly $5 million, and that amount is offset in amortization. O&M decreased $1.5 million compared to the prior year quarter. This decline was largely the result of reduced spending on contractor and professional services, partially offset by increases in insurance costs.

內華達州的浮動利息費用調整機制增加了約 300 萬美元的保證金，但已按美元抵消了利息費用，而監管帳戶餘額收款貢獻了近 500 萬美元，該金額在攤銷中被抵消。與去年同期相比，O&M 減少了 150 萬美元。這種下降主要是由於承包商和專業服務支出的減少，但保險成本的增加部分抵消了這種影響。

We remain confident that we will be able to achieve our goal of keeping O&M costs nearly flat on a per customer basis throughout the forecast period, although we expect these results to be nonlinear. The nearly $10 million increase in depreciation and amortization plus general taxes was associated with the 7% increase in average gas plant in service compared to the first quarter of 2024, reflecting continued investment for the benefit of our customers in pipeline reinforcement, pipe replacement, and new infrastructure as well as the offsetting impacts of higher amortization of regulatory account balances, which I've mentioned as a driver of margin a moment ago.

我們仍然有信心實現我們的目標，即在整個預測期內保持每個客戶的 O&M 成本基本持平，儘管我們預計這些結果將是非線性的。折舊和攤銷加上一般稅增加了近 1000 萬美元，這與與 2024 年第一季度相比，投入使用的天然氣廠平均數量增加了 7% 有關，這反映了我們為了客戶的利益在管道加固、管道更換和新基礎設施方面繼續進行投資，以及監管賬戶餘額攤銷增加的抵消影響，我剛提到這是利潤的驅動因素。

Other income decreased $8.8 million, primarily due to a roughly $5 million decrease in values associated with COLI policies and a $4 million reduction in interest income related to lower carrying charges associated with lower regulatory account balances, notably deferred purchased gas cost balances. Deferred purchase gas cost flipped from a receivable balance for customers of nearly $200 million in March of 2024 to a net liability balance of over $280 million at the end of March 2025.

其他收入減少 880 萬美元，主要原因是與 COLI 保單相關的價值減少約 500 萬美元，以及與監管帳戶餘額減少（特別是遞延購買天然氣成本餘額）相關的持有費用降低導致的利息收入減少 400 萬美元。遞延購買天然氣成本從 2024 年 3 月近 2 億美元的客戶應收餘額轉變為 2025 年 3 月底超過 2.8 億美元的淨負債餘額。

Interest expense at the utility increased by $8.2 million, primarily due to interest incurred on the now over-collected balance of the PGA. Additionally, regulatory treatment related to the utilities industrial development revenue bonds via the Nevada VIER mechanism, I noted as an offsetting driver margin contributed to the increase. Overall, we have seen a strong start to 2025 at the utility, with net income coming in just over $7 million or 5.2% higher compared to the last year's first quarter. Before the impact of COLI, the quarter-over-quarter improvement would be 9.4%.

公用事業的利息支出增加了 820 萬美元，主要是由於 PGA 現在超額收取的餘額產生了利息。此外，我注意到，透過內華達州 VIER 機制對公用事業工業發展收入債券的監管處理，作為抵銷驅動因素的利潤率也促進了利潤率的成長。總體而言，我們看到該公用事業公司在 2025 年取得了強勁開局，淨收入與去年第一季相比略高於 700 萬美元，成長 5.2%。在剔除中國海外發展的影響前，季增將達到 9.4%。

On slide 17, we show our 2025 financing plan for both Southwest Gas Holdings and Southwest Gas Corporation, which for simplicity of presentation assumes consolidation of Centuri for the entirety of the year. To the extent, Centuri ceases to be consolidated in 2025, we plan to adjust our financing plan as needed depending on the timing and successful execution of further separation market events. We highlight that Southwest Gas Holdings balance sheet and liquidity position could improve further if additional divestiture of Centuri shares were to result in increased cash at Southwest Gas Holdings. We expect the beginning of the year, cash on hand balance combined with cash flow from operations to fund the entire capital expenditure program forecasted in 2025.

在第 17 張投影片上，我們展示了西南天然氣控股公司和西南天然氣公司的 2025 年融資計劃，為方便展示，假設 Centuri 全年合併。如果 Centuri 於 2025 年停止合併，我們計劃根據進一步分離市場事件的時間和成功執行情況，根據需要調整我們的融資計劃。我們強調，如果進一步剝離 Centuri 股份能夠增加西南燃氣控股公司的現金，那麼西南燃氣控股公司的資產負債表和流動性狀況可能會進一步改善。我們預計，年初庫存現金餘額加上營運活動現金流將足以支持 2025 年預測的整個資本支出計畫。

In addition, the only capital markets need throughout 2025, depending on the timing and form of Centuri separation transactions relates to less than $100 million of equity, which we would expect to be covered through the ATM program. We also plan to extend the Southwest Gas Holdings $550 million term loan facility to beyond the July 31, 2025, maturity date and to amend and extend Holdings revolving credit facility sometime during the second half of 2025 ahead of the December 2026 maturity date. We still do not currently foresee the need for any significant debt capital markets, new issuance activity at the utility until the spring of 2026.

此外，根據 Centuri 分離交易的時間和形式，2025 年全年唯一的資本市場需求涉及不到 1 億美元的股權，我們預計將透過 ATM 計畫來涵蓋。我們還計劃將西南天然氣控股公司的 5.5 億美元定期貸款期限延長至 2025 年 7 月 31 日到期日之後，並在 2025 年下半年某個時間修改和延長控股公司的循環信貸額度，即 2026 年 12 月到期日之前。我們目前仍然預計，直到 2026 年春季，公用事業公司還不需要任何重大的債務資本市場和新的發行活動。

Southwest Gas Holdings remains committed to paying a competitive dividend to our stockholders. Our planned dividend payouts in 2025 are expected to result in a competitive payout ratio. We plan to continue to balance factors such as projected capital requirements, impacts to credit ratings, the competitiveness of the dividend yield, economic conditions, and other factors, and we'll review the dividend policy for any changes post the separation and deconsolidation of Centuri.

西南天然氣控股公司仍然致力於向股東支付有競爭力的股利。我們計劃在 2025 年派息，預計派息率將具有競爭力。我們計劃繼續平衡預計資本要求、對信用評級的影響、股息收益率的競爭力、經濟狀況和其他因素，並且我們將在 Centuri 分離和拆分後審查股息政策的任何變化。

Moving to slide 18, we take a look at the balance sheet strength and our commitment to maintaining an investment-grade profile at Southwest Gas and the holding company. On the left-hand side of the slide, we walk through net debt by operating company. We finished the quarter with $386 million of cash at Southwest Gas. As I mentioned, at the utility, the PGA balance has now flipped to a liability balance of about $280 million. We have a more than offsetting amount of cash on the books at the end of the quarter, which is clearly related to the collection of the PGA.

轉到第 18 張投影片，我們來看看資產負債表的實力以及我們對維持西南天然氣和控股公司的投資等級形象的承諾。在投影片的左側，我們按營運公司介紹了淨債務。本季結束時，西南天然氣公司的現金為 3.86 億美元。正如我所提到的，在公用事業公司，PGA 餘額現已轉變為約 2.8 億美元的負債餘額。截至本季末，我們的帳面現金餘額超過了抵銷金額，這顯然與 PGA 的收取有關。

In the appendix on slide 26, additional details are provided on the PGA balance. Net debt levels are generally in line with where we finished 2024 across the enterprise. We reiterate our plan to target a solid investment-grade balance sheet. And by our estimates, at the end of the first quarter, we have achieved our prior guidance of greater than 14% FFO to debt on an LTM basis at Southwest Gas Holdings by 2025.

投影片 26 上的附錄提供了有關 PGA 餘額的更多詳細資訊。整個企業的淨債務水準大致上與我們 2024 年底的水準一致。我們重申我們的計劃，目標是實現穩健的投資等級資產負債表。根據我們的估計，到第一季末，我們已經實現了先前的預期，到 2025 年，西南天然氣控股公司的 FFO 與 LTM 債務之比將超過 14%。

Back to you, Karen.

回到你身邊，凱倫。

Thanks, Rob. We are pleased with our first quarter results and aim to carry this momentum through the rest of 2025. On slide 20, we reaffirm our 2025 utility net income guidance range of $265 million to $275 million with the completion of the Arizona rate case and strong regional economic outlook in our service area, we remain confident in our previously stated range.

謝謝，羅布。我們對第一季的業績感到滿意，並計劃在 2025 年剩餘時間內保持這一勢頭。在第 20 張投影片上，我們重申 2025 年公用事業淨收入指引範圍為 2.65 億美元至 2.75 億美元，隨著亞利桑那州利率案例的完成和我們服務區域強勁的區域經濟前景，我們仍然對先前所述的範圍充滿信心。

Additionally, for 2025 and further out, we reaffirm all of our other guidance metrics. While we continue to expect impacts from the regulatory cycle to result in nonlinear net income growth over the forecast period, our regulatory strategy and our plan to achieve a flat O&M per customer trend over the same period are expected to be important components of our growth story going forward. You can find additional long-term drivers in the appendix of our presentation on slide 27.

此外，對於 2025 年及以後的目標，我們重申所有其他指導指標。雖然我們仍然預期監管週期的影響將導致預測期內淨收入非線性成長，但我們的監管策略以及在同一時期實現每位客戶運維平穩趨勢的計畫預計將成為我們未來成長故事的重要組成部分。您可以在我們的簡報第 27 頁的附錄中找到其他長期驅動因素。

As a reminder, each of our forward-looking forecasts, compounded annual growth rates are calculated off a 2025 base year. Before we open the call up to Q&A, I want to point to slide 21 and emphasize that our team is focused on executing our strategic priorities, delivering strong financial results and providing exceptional service to our customers.

提醒一下，我們的每個前瞻性預測、複合年增長率都是以 2025 年為基準年計算的。在我們開始問答環節之前，我想指出第 21 張投影片並強調我們的團隊專注於執行我們的策略重點，提供強勁的財務業績並為我們的客戶提供卓越的服務。

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'll continue to execute the next steps to fully separate Centuri to create a more attractive value proposition for stockholders.

在西南天然氣控股公司，我們對成為首屈一指的純天然氣公用事業公司的未來充滿信心。我們計劃透過強勁的區域需求動態持續實現穩定的有機費率基礎成長，並透過財務紀律、卓越營運和建設性監管關係實現獲利成長。我們將繼續執行下一步措施，徹底分離 Centuri，為股東創造更具吸引力的價值主張。

With that, I'd like to open the call for questions.

現在，我想開始提問。

(Operator Instructions) Ryan Levine, Citi.

（操作員指示）Ryan Levine，花旗銀行。

What's the current status of your plans to exit Centuri? And more specifically, has there been any change to interest levels from potential investors in the recent weeks?

您退出 Centuri 的計劃目前進展如何？更具體地說，最近幾週潛在投資者的興趣程度有任何變化嗎？

With respect to Centuri, I think that our plan continues to be what we've indicated before. We're committed to the separation of Centuri. We have several options there. I think as I noted, earlier, we have the ability to file an S-3 now that we're a year past the IPO, which allows us -- will allow us to execute in the market without the delays, previously we would have had. So we will continue to monitor those conditions and look at our options, whether that be a sell-down or exchange or some combination thereof.

關於 Centuri，我認為我們的計劃仍與我們之前所表明的一致。我們致力於 Centuri 的分離。我們有幾種選擇。我想，正如我之前提到的，我們現在有能力提交 S-3 文件，因為我們已經完成了 IPO 一年，這使我們能夠在市場上執行，而不會出現以前的延遲。因此，我們將繼續監測這些情況並研究我們的選擇，無論是拋售還是交換，還是兩者兼而有之。

Okay. And then what are the financial implications of the SIM if the settlement is approved relative to your longer-term EPS growth target?

好的。那麼，如果該協議獲得批准，相對於您的長期 EPS 成長目標，SIM 的財務影響是什麼？

Ryan, it's Justin. I think part of it is we need to wait until it's actually approved. What we've proposed and what the settlement parties agreed to is basically, as we've indicated, represents about 40% of our non-revenue producing infrastructure investment in the state each year. And so once we get that approved, we'll have better clarity around kind of the timing and what projects are actually approved for '25 and we can probably provide future guidance at that time or as part of our annual earnings guidance that we do in February as well because as we've indicated previously, our current plan does not include anything associated with approval of the SIM.

瑞安，我是賈斯汀。我認為部分原因是我們需要等到它真正獲得批准。正如我們所指出的，我們所提出的以及和解雙方同意的內容基本上占我們每年在該州非創收基礎設施投資的 40% 左右。因此，一旦獲得批准，我們將更清楚地了解時間表以及 25 年實際批准的項目，我們可能會在那時提供未來指導，或者作為我們在 2 月份制定的年度盈利指導的一部分，因為正如我們之前所指出的，我們目前的計劃不包括與 SIM 批准相關的任何內容。

Okay. And then on the PGA, the balance has moved around pretty substantially in recent quarters. And you highlighted in the prepared remarks, the opportunity in Nevada to return some of that capital. Is there any meaningful impact to your ATM issuance need as a result of the outcome of that Nevada proceeding or the faster recovery of the PGA balance?

好的。然後在 PGA 上，最近幾季的平衡發生了相當大的變化。您在準備好的發言中強調了內華達州返還部分資本的機會。內華達州訴訟的結果或 PGA 餘額的更快恢復是否會對您的 ATM 發行需求產生任何重大影響？

Ryan, this is Rob. As we talked about, I think if we end up returning that cash more rapidly, we have the cash balances on hand right now to support that. The -- and just with respect to the ATM usage, that would just continue to reiterate any ATM usage would be impacted by kind of the form of the next separation step that we take at Centuri. Obviously, if we execute a sell-down, and we're bringing cash into the company and that may obviate the need for the ATM usage.

瑞安，這是羅布。正如我們所討論的，我認為如果我們最終能夠更快地返還現金，我們現在就有足夠的現金餘額來支持這一點。關於 ATM 的使用情況，我們將繼續重申，任何 ATM 的使用情況都會受到我們在 Centuri 採取的下一步分離措施的影響。顯然，如果我們進行拋售，我們將為公司帶來現金，這可能會消除使用 ATM 的需要。

Okay. And then last question for me. I appreciate the comment about the accounting issue. To the extent you're able to answer, has there been any change to Southwest Gas internal controls or accounting processes in recent quarters or anything to highlight? Because I think it was the first time that the company is over -- had a delay in earnings call in decades.

好的。這是我的最後一個問題。我很欣賞有關會計問題的評論。就您能夠回答的範圍內而言，西南天然氣公司內部控製或會計流程在最近幾季是否有任何變化，或者有什麼需要強調的嗎？因為我認為這是該公司幾十年來第一次推遲財報電話會議。

Yes, Ryan, as I mentioned before, an issue arose late in the process at Centuri, which impacted Southwest Gas as well since we are consolidated. But there have been no changes in controls with Southwest Gas that were related to that or need for those as a result.

是的，瑞安，正如我之前提到的，Centuri 在流程後期出現了一個問題，由於我們已經合併，這也對西南天然氣公司產生了影響。但西南天然氣的控制權並未發生與此相關的變化，也不需要因此而有任何變化。

(Operator Instructions) Dylan Lipner, Ladenburg.

（操作員指示） 迪倫·利普納，拉登堡。

Hey, good morning team. Congrats on a great quarter. So with the continued influx of data centers and semiconductor manufacturing into Arizona, can you guys speak to the incremental CapEx investment opportunities, demand presence and potentially how you're engaging with regulators to ensure timely recovery and alignment with long-term rate base growth?

嘿，大家早安。恭喜本季取得優異成績。那麼，隨著資料中心和半導體製造業不斷湧入亞利桑那州，你們能否談談增量資本支出投資機會、需求存在以及如何與監管機構合作以確保及時復甦並與長期利率基準增長保持一致？

Dylan, it's Justin. Yeah, I think from our perspective, we have kind of structures in place to deal with these options, whether it's with Great Basin and kind of the open season process or at the state level we have line extension policies and practices that the commissions have supported that we believe would address anything.

迪倫，我是賈斯汀。是的，我認為從我們的角度來看，我們已經建立了某種結構來處理這些選擇，無論是大盆地和開放季節流程，還是在州一級，我們都有委員會支持的線路延伸政策和實踐，我們相信這些政策和實踐可以解決任何問題。

I think a lot of the stuff that we're seeing right now isn't necessarily built into our guidance as we haven't had any kind of material changes to what we were forecasting in terms of our rate base and CapEx spend and rate base growth over our guidance period, but we'll continue to monitor that. And as we get greater interest or kind of firm commitments, we'll obviously note that and make those adjustments as well.

我認為我們現在看到的很多東西不一定都包含在我們的指導中，因為在我們的指導期內，我們對利率基數、資本支出和利率基數增長的預測沒有任何實質性的變化，但我們會繼續監控這一點。當我們獲得更大的興趣或堅定的承諾時，我們顯然會注意到這一點並做出調整。

Richard Sunderland, JPMorgan.

摩根大通的理查桑德蘭。

Hey, good morning. Thanks for the time today. Just apologies if you just hit this because that's cutting out for a minute. The Great Basin open season, is that binding? And then how much CapEx would be associated with that and over what timeframe? Thank you.

嘿，早安。感謝您今天抽出時間。如果您碰到此問題，請原諒，因為需要暫停一分鐘。大盆地開放季節有約束力嗎？那麼，與此相關的資本支出有多少以及在什麼時間範圍內？謝謝。

Yeah, Rich, it's Justin. Yeah. So that is a binding open season. It's open through the end of the month. So at that point in time, we'll have a better indication of what to expect in terms of kind of future CapEx changes to the guidance that we've already provided.

是的，里奇，我是賈斯汀。是的。所以這是一個具有約束力的開放季節。開放至月底。因此，在那個時間點，我們將更了解未來資本支出在我們已經提供的指導方面將會發生哪些變化。

Okay. Got it. So no sense at this point of how much incremental capital could flow through Great Basin?

好的。知道了。那麼，目前還不清楚有多少增量資本可以流經大盆地嗎？

No, that's a confidential process until that open season closes.

不，這是一個保密過程，直到開放期結束為止。

(Operator Instructions) There are no further questions at this time. I would now hand the call back to Mr. Justin Forsberg for any closing remarks.

（操作員指示）目前沒有其他問題。現在我將把發言權交還給賈斯汀·福斯伯格先生，請他做最後發言。

Thanks, and thanks, everyone, for joining us today and for your questions. This concludes our conference call. We appreciate your interest in Southwest Gas Holdings, and we'll see many of you soon at the AGA Financial Conferences and other conferences.

謝謝，也謝謝大家今天的參與與提問。我們的電話會議到此結束。感謝您對西南天然氣控股公司的關注，我們很快就會在 AGA 金融會議和其他會議上見到您。

Thank you. And this concludes today's call. Thank you for participating. You may all disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。你們都可以斷開連線。