Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37976 | |
Entity Registrant Name | Southwest Gas Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-3881866 | |
Entity Address, Address Line One | 8360 S. Durango Drive | |
Entity Address, Address Line Two | Post Office Box 98510 | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89193-8510 | |
City Area Code | (702) | |
Local Phone Number | 876-7237 | |
Title of 12(b) Security | Southwest Gas Holdings, Inc. Common Stock, $1 Par Value | |
Trading Symbol | SWX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 71,336,035 | |
Entity Central Index Key | 0001692115 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Southwest Gas Corporation | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Entity File Number | 1-7850 | |
Entity Registrant Name | Southwest Gas Corporation | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 88-0085720 | |
Entity Address, Address Line One | 8360 S. Durango Drive | |
Entity Address, Address Line Two | Post Office Box 98510 | |
Entity Address, City or Town | Las Vegas, | |
Entity Address, State or Province | NV | |
Entity Address, Postal Zip Code | 89193-8510 | |
City Area Code | (702) | |
Local Phone Number | 876-7237 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Central Index Key | 0000092416 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Regulated operations plant: | ||
Gas plant | $ 9,583,630 | $ 9,453,907 |
Less: accumulated depreciation | (2,712,093) | (2,674,157) |
Construction work in progress | 250,892 | 244,750 |
Net regulated operations plant | 7,122,429 | 7,024,500 |
Other property and investments, net | 1,250,327 | 1,281,172 |
Current assets: | ||
Cash and cash equivalents | 82,085 | 123,078 |
Accounts receivable, net of allowance | 903,262 | 866,246 |
Accrued utility revenue | 56,900 | 88,100 |
Income taxes receivable, net | 8,136 | 8,738 |
Deferred purchased gas costs | 970,339 | 450,120 |
Prepaid and other current assets | 210,309 | 433,850 |
Current assets held for sale | 26,993 | 1,737,530 |
Total current assets | 2,258,024 | 3,707,662 |
Noncurrent assets: | ||
Goodwill | 787,334 | 787,250 |
Deferred income taxes | 115 | 82 |
Deferred charges and other assets | 391,944 | 395,948 |
Total noncurrent assets | 1,179,393 | 1,183,280 |
Total assets | 11,810,173 | 13,196,614 |
Capitalization: | ||
Common stock, $1 par (authorized - 120,000,000 shares; issued and outstanding - 71,330,991 and 67,119,143 shares) | 72,961 | 68,749 |
Additional paid-in capital | 2,524,631 | 2,287,183 |
Accumulated other comprehensive loss, net | (43,949) | (44,242) |
Retained earnings | 742,513 | 747,069 |
Total equity | 3,296,156 | 3,058,759 |
Redeemable noncontrolling interests | 127,026 | 159,349 |
Long-term debt, less current maturities | 4,577,600 | 4,403,299 |
Total capitalization | 8,000,782 | 7,621,407 |
Current liabilities: | ||
Current maturities of long-term debt | 41,907 | 44,557 |
Short-term debt | 467,500 | 1,542,806 |
Accounts payable | 310,748 | 662,090 |
Customer deposits | 50,350 | 51,182 |
Income taxes payable, net | 739 | 2,690 |
Accrued general taxes | 101,579 | 67,094 |
Accrued interest | 45,641 | 38,556 |
Other current liabilities | 592,022 | 369,743 |
Current liabilities held for sale | 0 | 644,245 |
Total current liabilities | 1,610,486 | 3,422,963 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 733,199 | 682,067 |
Accumulated removal costs | 450,000 | 445,000 |
Other deferred credits and other long-term liabilities | 1,015,706 | 1,025,177 |
Total deferred income taxes and other credits | 2,198,905 | 2,152,244 |
Total capitalization and liabilities | $ 11,810,173 | $ 13,196,614 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par (in USD per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, issued (in shares) | 71,330,991 | 67,119,143 |
Common stock, outstanding (in shares) | 71,330,991 | 67,119,143 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Operating revenues: | ||||
Regulated operations revenues | $ 950,011 | $ 743,532 | $ 2,406,161 | $ 1,743,390 |
Utility infrastructure services revenues | 653,293 | 523,877 | 2,889,743 | 2,318,563 |
Total operating revenues | 1,603,304 | 1,267,409 | 5,295,904 | 4,061,953 |
Operating expenses: | ||||
Net cost of gas sold | 507,537 | 298,918 | 1,007,679 | 573,804 |
Operations and maintenance | 148,908 | 149,303 | 636,371 | 515,759 |
Depreciation and amortization | 112,520 | 122,646 | 460,329 | 400,245 |
Taxes other than income taxes | 24,230 | 24,816 | 92,797 | 84,472 |
Utility infrastructure services expenses | 603,680 | 503,232 | 2,629,766 | 2,123,085 |
Goodwill impairment and loss on sale | 71,230 | 0 | 526,655 | 0 |
Total operating expenses | 1,468,105 | 1,098,915 | 5,353,597 | 3,697,365 |
Operating income | 135,199 | 168,494 | (57,693) | 364,588 |
Other income and (expenses): | ||||
Net interest deductions | (77,334) | (48,363) | (271,721) | (143,597) |
Other income (deductions) | 18,460 | 1,244 | 11,027 | (2,703) |
Total other income and (expenses) | (58,874) | (47,119) | (260,694) | (146,300) |
Income (loss) before income taxes | 76,325 | 121,375 | (318,387) | 218,288 |
Income tax expense | 28,675 | 24,125 | (71,103) | 32,681 |
Net income (loss) | 47,650 | 97,250 | (247,284) | 185,607 |
Net income attributable to noncontrolling interests | 1,739 | 1,072 | 6,273 | 5,943 |
Segment net income (loss) | $ 45,911 | $ 96,178 | $ (253,557) | $ 179,664 |
Earnings (loss) per share: | ||||
Basic (in USD per share) | $ 0.67 | $ 1.58 | $ (3.76) | $ 3 |
Diluted (in USD per share) | $ 0.67 | $ 1.58 | $ (3.76) | $ 2.99 |
Weighted average shares: | ||||
Basic (in shares) | 68,265 | 60,737 | 67,413 | 59,919 |
Diluted (in shares) | 68,419 | 60,854 | 67,413 | 60,044 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 47,650 | $ 97,250 | $ (247,284) | $ 185,607 |
Defined benefit pension plans: | ||||
Net actuarial gain (loss) | 0 | 0 | 3,099 | 44,974 |
Amortization of prior service cost | 33 | 33 | 133 | 580 |
Amortization of net actuarial loss | 253 | 6,616 | 20,098 | 32,036 |
Regulatory adjustment | (90) | (5,523) | (16,024) | (65,273) |
Net defined benefit pension plans | 196 | 1,126 | 7,306 | 12,317 |
Forward-starting interest rate swaps (“FSIRS”): | ||||
Amounts reclassified into net income | 0 | 416 | 0 | 1,655 |
Net forward-starting interest rate swaps | 0 | 416 | 0 | 1,655 |
Foreign currency translation adjustments | 97 | 1,247 | (7,283) | 444 |
Total other comprehensive income, net of tax | 293 | 2,789 | 23 | 14,416 |
Comprehensive income (loss) | 47,943 | 100,039 | (247,261) | 200,023 |
Comprehensive income attributable to noncontrolling interests | 1,739 | 1,072 | 6,273 | 5,943 |
Comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. | $ 46,204 | $ 98,967 | $ (253,534) | $ 194,080 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ 47,650 | $ 97,250 | $ (247,284) | $ 185,607 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 112,520 | 122,646 | 460,329 | 400,245 |
Impairment of assets and other charges | 71,230 | 0 | 526,655 | 0 |
Deferred income taxes | 36,712 | 32,346 | (67,682) | 70,232 |
Gains on sale of property and equipment | (661) | (1,916) | (6,610) | (7,313) |
Changes in undistributed stock compensation | 3,436 | 4,180 | 8,702 | 9,816 |
Equity AFUDC | (82) | (258) | (289) | 723 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowances | (40,185) | (44,971) | (188,989) | (139,417) |
Accrued utility revenue | 31,200 | 32,900 | (4,900) | (1,500) |
Deferred purchased gas costs | (535,224) | (82,248) | (600,191) | (134,507) |
Accounts payable | (305,272) | (82,952) | 71,589 | 8,621 |
Accrued taxes | 34,950 | 33,964 | 18,915 | (7,397) |
Other current assets and liabilities | 371,035 | 79,680 | 83,502 | (4,274) |
Changes in deferred charges and other assets | (1,565) | (297) | 15,618 | (3,459) |
Changes in other liabilities and deferred credits | (11,486) | (3,704) | (34,267) | (26,917) |
Net cash provided by (used in) operating activities | (185,742) | 186,620 | 35,098 | 350,460 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (219,124) | (162,796) | (915,749) | (725,713) |
Acquisition of businesses, net of cash acquired | 0 | 0 | (18,809) | (2,354,260) |
Proceeds from the sale of business, net of cash sold | 1,058,272 | 0 | 1,058,272 | 0 |
Changes in customer advances | (6,608) | 7,693 | 7,205 | 19,381 |
Other | 3,125 | 893 | 20,054 | 15,586 |
Net cash provided by (used in) investing activities | 835,665 | (154,210) | 150,973 | (3,045,006) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Issuance of common stock, net | 239,337 | 453,495 | 247,670 | 618,146 |
Centuri distribution to redeemable noncontrolling interest | 0 | (39,649) | 0 | (39,649) |
Dividends paid | (41,631) | (35,970) | (166,224) | (141,573) |
Issuance of long-term debt, net | 305,896 | 709,927 | 663,774 | 2,359,964 |
Retirement of long-term debt | (84,224) | (143,453) | (440,685) | (574,889) |
Change in credit facility and commercial paper | (50,000) | (130,000) | 0 | (150,000) |
Change in short-term debt | (1,527,746) | (435,000) | (1,458,939) | (686,000) |
Issuance of short-term debt | 450,000 | 0 | 450,000 | 1,850,000 |
Withholding remittance - share-based compensation | (1,506) | (1,978) | (2,190) | (2,000) |
Other, including principal payments on finance leases | (4,949) | (7,898) | (21,223) | (7,274) |
Net cash provided by (used in) financing activities | (714,823) | 369,474 | (727,817) | 3,226,725 |
Effects of currency translation on cash and cash equivalents | 104 | 85 | (835) | 142 |
Change in cash and cash equivalents | (64,796) | 401,969 | (542,581) | 532,321 |
Cash and cash equivalents included in current assets held for sale at beginning of period | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 123,078 | 222,697 | 624,666 | 92,345 |
Cash and cash equivalents at end of period | 82,085 | 624,666 | 82,085 | 624,666 |
SUPPLEMENTAL INFORMATION: | ||||
Interest paid, net of amounts capitalized | 68,018 | 35,262 | 252,581 | 131,311 |
Income taxes paid, net | $ 2,381 | $ 1,408 | $ 12,974 | $ 3,965 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common stock shares | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings | Southwest Gas Holdings, Inc. |
Beginning balance (in shares) at Dec. 31, 2021 | 60,422,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 62,052 | $ 1,824,216 | $ (46,761) | $ 1,114,313 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issuances (in shares) | 6,427,000 | |||||
Common stock issuances | $ 6,427 | 449,621 | ||||
Foreign currency exchange translation adjustment | 1,247 | |||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,126 | |||||
FSIRS amounts reclassified to net income, net of tax | $ 416 | 416 | ||||
Net income | 96,178 | |||||
Dividends declared | (41,909) | |||||
Redemption value adjustments | 22,156 | |||||
Ending balance (in shares) at Mar. 31, 2022 | 66,849,000 | |||||
Ending balance at Mar. 31, 2022 | $ 68,479 | 2,273,837 | (43,972) | 1,190,738 | $ 3,489,082 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in USD per share) | $ 0.62 | |||||
FSIRS amounts reclassified to net income, net of tax | $ 0 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 71,330,991 | 71,331,000 | ||||
Ending balance at Mar. 31, 2023 | $ 72,961 | 2,524,631 | (43,949) | 742,513 | 3,296,156 | |
Beginning balance (in shares) at Dec. 31, 2022 | 67,119,143 | 67,119,000 | ||||
Beginning balance at Dec. 31, 2022 | $ 68,749 | 2,287,183 | (44,242) | 747,069 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issuances (in shares) | 4,212,000 | |||||
Common stock issuances | $ 4,212 | 237,448 | ||||
Foreign currency exchange translation adjustment | 97 | |||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 196 | |||||
FSIRS amounts reclassified to net income, net of tax | $ 0 | 0 | ||||
Net income | 45,911 | |||||
Dividends declared | (44,635) | |||||
Redemption value adjustments | $ 5,832 | (5,832) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 71,330,991 | 71,331,000 | ||||
Ending balance at Mar. 31, 2023 | $ 72,961 | $ 2,524,631 | $ (43,949) | $ 742,513 | $ 3,296,156 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per common share (in USD per share) | $ 0.62 |
CONDENSED CONSOLIDATED BALANC_3
CONDENSED CONSOLIDATED BALANCE SHEETS - Southwest - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Regulated operations plant: | ||
Gas plant | $ 9,583,630 | $ 9,453,907 |
Less: accumulated depreciation | (2,712,093) | (2,674,157) |
Construction work in progress | 250,892 | 244,750 |
Net regulated operations plant | 7,122,429 | 7,024,500 |
Other property and investments, net | 1,250,327 | 1,281,172 |
Current assets: | ||
Cash and cash equivalents | 82,085 | 123,078 |
Accounts receivable, net of allowance | 903,262 | 866,246 |
Accrued utility revenue | 56,900 | 88,100 |
Income taxes receivable, net | 8,136 | 8,738 |
Deferred purchased gas costs | 970,339 | 450,120 |
Prepaid and other current assets | 210,309 | 433,850 |
Current assets held for sale | 26,993 | 1,737,530 |
Total current assets | 2,258,024 | 3,707,662 |
Noncurrent assets: | ||
Goodwill | 787,334 | 787,250 |
Deferred charges and other assets | 391,944 | 395,948 |
Total noncurrent assets | 1,179,393 | 1,183,280 |
Total assets | 11,810,173 | 13,196,614 |
Capitalization: | ||
Common stock | 72,961 | 68,749 |
Additional paid-in capital | 2,524,631 | 2,287,183 |
Accumulated other comprehensive loss, net | (43,949) | (44,242) |
Retained earnings | 742,513 | 747,069 |
Total equity | 3,296,156 | 3,058,759 |
Long-term debt, less current maturities | 4,577,600 | 4,403,299 |
Total capitalization | 8,000,782 | 7,621,407 |
Current liabilities: | ||
Short-term debt | 467,500 | 1,542,806 |
Accounts payable | 310,748 | 662,090 |
Customer deposits | 50,350 | 51,182 |
Accrued general taxes | 101,579 | 67,094 |
Accrued interest | 45,641 | 38,556 |
Other current liabilities | 592,022 | 369,743 |
Total current liabilities | 1,610,486 | 3,422,963 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 733,199 | 682,067 |
Accumulated removal costs | 450,000 | 445,000 |
Other deferred credits and other long-term liabilities | 1,015,706 | 1,025,177 |
Total deferred income taxes and other credits | 2,198,905 | 2,152,244 |
Total capitalization and liabilities | 11,810,173 | 13,196,614 |
Southwest Gas Corporation | ||
Regulated operations plant: | ||
Gas plant | 9,583,630 | 9,453,907 |
Less: accumulated depreciation | (2,712,093) | (2,674,157) |
Construction work in progress | 250,892 | 244,750 |
Net regulated operations plant | 7,122,429 | 7,024,500 |
Other property and investments, net | 144,586 | 169,397 |
Current assets: | ||
Cash and cash equivalents | 63,099 | 51,823 |
Accounts receivable, net of allowance | 300,897 | 234,081 |
Accrued utility revenue | 56,900 | 88,100 |
Income taxes receivable, net | 115 | 103 |
Deferred purchased gas costs | 970,339 | 450,120 |
Receivable from parent | 0 | 2,130 |
Prepaid and other current assets | 183,455 | 401,789 |
Current assets held for sale | 26,993 | 0 |
Total current assets | 1,601,798 | 1,228,146 |
Noncurrent assets: | ||
Goodwill | 11,155 | 11,155 |
Deferred charges and other assets | 369,495 | 370,483 |
Total noncurrent assets | 380,650 | 381,638 |
Total assets | 9,249,463 | 8,803,681 |
Capitalization: | ||
Common stock | 49,112 | 49,112 |
Additional paid-in capital | 1,624,919 | 1,622,969 |
Accumulated other comprehensive loss, net | (38,065) | (38,261) |
Retained earnings | 1,030,164 | 935,355 |
Total equity | 2,666,130 | 2,569,175 |
Long-term debt, less current maturities | 3,497,977 | 3,251,296 |
Total capitalization | 6,164,107 | 5,820,471 |
Current liabilities: | ||
Short-term debt | 450,000 | 225,000 |
Accounts payable | 176,682 | 497,046 |
Customer deposits | 50,350 | 51,182 |
Accrued general taxes | 101,579 | 67,094 |
Accrued interest | 38,489 | 29,569 |
Payable to parent | 993 | 0 |
Other current liabilities | 281,597 | 150,817 |
Total current liabilities | 1,099,690 | 1,020,708 |
Deferred income taxes and other credits: | ||
Deferred income taxes and investment tax credits, net | 723,205 | 683,948 |
Accumulated removal costs | 450,000 | 445,000 |
Other deferred credits and other long-term liabilities | 812,461 | 833,554 |
Total deferred income taxes and other credits | 1,985,666 | 1,962,502 |
Total capitalization and liabilities | $ 9,249,463 | $ 8,803,681 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - Southwest - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Regulated operations revenues | $ 950,011 | $ 743,532 | $ 2,406,161 | $ 1,743,390 |
Operating expenses: | ||||
Net cost of gas sold | 507,537 | 298,918 | 1,007,679 | 573,804 |
Operations and maintenance | 148,908 | 149,303 | 636,371 | 515,759 |
Depreciation and amortization | 112,520 | 122,646 | 460,329 | 400,245 |
Taxes other than income taxes | 24,230 | 24,816 | 92,797 | 84,472 |
Total operating expenses | 1,468,105 | 1,098,915 | 5,353,597 | 3,697,365 |
Operating income | 135,199 | 168,494 | (57,693) | 364,588 |
Other income and (expenses): | ||||
Net interest deductions | (77,334) | (48,363) | (271,721) | (143,597) |
Other income (deductions) | 18,460 | 1,244 | 11,027 | (2,703) |
Total other income and (expenses) | (58,874) | (47,119) | (260,694) | (146,300) |
Income (loss) before income taxes | 76,325 | 121,375 | (318,387) | 218,288 |
Income tax expense | 28,675 | 24,125 | (71,103) | 32,681 |
Segment net income (loss) | 45,911 | 96,178 | (253,557) | 179,664 |
Southwest Gas Corporation | ||||
Regulated operations revenues | 914,879 | 676,539 | 2,173,409 | 1,676,397 |
Operating expenses: | ||||
Net cost of gas sold | 501,169 | 297,121 | 993,264 | 572,007 |
Operations and maintenance | 131,188 | 119,636 | 503,480 | 452,051 |
Depreciation and amortization | 74,650 | 72,114 | 265,579 | 256,814 |
Taxes other than income taxes | 22,740 | 21,652 | 84,285 | 81,308 |
Total operating expenses | 729,747 | 510,523 | 1,846,608 | 1,362,180 |
Operating income | 185,132 | 166,016 | 326,801 | 314,217 |
Other income and (expenses): | ||||
Net interest deductions | (38,622) | (26,610) | (127,892) | (102,004) |
Other income (deductions) | 18,443 | 1,315 | 10,244 | (3,794) |
Total other income and (expenses) | (20,179) | (25,295) | (117,648) | (105,798) |
Income (loss) before income taxes | 164,953 | 140,721 | 209,153 | 208,419 |
Income tax expense | 30,257 | 28,926 | 31,872 | 28,204 |
Segment net income (loss) | $ 134,696 | $ 111,795 | $ 177,281 | $ 180,215 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Southwest - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net income | $ 47,650 | $ 97,250 | $ (247,284) | $ 185,607 |
Defined benefit pension plans: | ||||
Net actuarial gain (loss) | 0 | 0 | 3,099 | 44,974 |
Amortization of prior service cost | 33 | 33 | 133 | 580 |
Amortization of net actuarial loss | 253 | 6,616 | 20,098 | 32,036 |
Regulatory adjustment | (90) | (5,523) | (16,024) | (65,273) |
Net defined benefit pension plans | 196 | 1,126 | 7,306 | 12,317 |
Forward-starting interest rate swaps (“FSIRS”): | ||||
Amounts reclassified into net income (loss) | 0 | 416 | 0 | 1,655 |
Net forward-starting interest rate swaps | 0 | 416 | 0 | 1,655 |
Total other comprehensive income, net of tax | 293 | 2,789 | 23 | 14,416 |
Comprehensive income (loss) | 47,943 | 100,039 | (247,261) | 200,023 |
Southwest Gas Corporation | ||||
Net income | 134,696 | 111,795 | 177,281 | 180,215 |
Defined benefit pension plans: | ||||
Net actuarial gain (loss) | 0 | 0 | 3,099 | 44,974 |
Amortization of prior service cost | 33 | 33 | 133 | 580 |
Amortization of net actuarial loss | 253 | 6,616 | 20,098 | 32,036 |
Regulatory adjustment | (90) | (5,523) | (16,024) | (65,273) |
Net defined benefit pension plans | 196 | 1,126 | 7,306 | 12,317 |
Forward-starting interest rate swaps (“FSIRS”): | ||||
Amounts reclassified into net income (loss) | 0 | 416 | 0 | 1,655 |
Net forward-starting interest rate swaps | 0 | 416 | 0 | 1,655 |
Total other comprehensive income, net of tax | 196 | 1,542 | 7,306 | 13,972 |
Comprehensive income (loss) | $ 134,892 | $ 113,337 | $ 184,587 | $ 194,187 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Southwest - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income | $ 47,650 | $ 97,250 | $ (247,284) | $ 185,607 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 112,520 | 122,646 | 460,329 | 400,245 |
Deferred income taxes | 36,712 | 32,346 | (67,682) | 70,232 |
Gain on sale of property | (661) | (1,916) | (6,610) | (7,313) |
Changes in undistributed stock compensation | 3,436 | 4,180 | 8,702 | 9,816 |
Equity AFUDC | (82) | (258) | (289) | 723 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowance | (40,185) | (44,971) | (188,989) | (139,417) |
Accrued utility revenue | 31,200 | 32,900 | (4,900) | (1,500) |
Deferred purchased gas costs | (535,224) | (82,248) | (600,191) | (134,507) |
Accounts payable | (305,272) | (82,952) | 71,589 | 8,621 |
Accrued taxes | 34,950 | 33,964 | 18,915 | (7,397) |
Other current assets and liabilities | 371,035 | 79,680 | 83,502 | (4,274) |
Changes in deferred charges and other assets | (1,565) | (297) | 15,618 | (3,459) |
Changes in other liabilities and deferred credits | (11,486) | (3,704) | (34,267) | (26,917) |
Net cash provided by (used in) operating activities | (185,742) | 186,620 | 35,098 | 350,460 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (219,124) | (162,796) | (915,749) | (725,713) |
Changes in customer advances | (6,608) | 7,693 | 7,205 | 19,381 |
Other | 3,125 | 893 | 20,054 | 15,586 |
Net cash provided by (used in) investing activities | 835,665 | (154,210) | 150,973 | (3,045,006) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Dividends paid | (41,631) | (35,970) | (166,224) | (141,573) |
Issuance of long-term debt, net | 305,896 | 709,927 | 663,774 | 2,359,964 |
Retirement of long-term debt | (84,224) | (143,453) | (440,685) | (574,889) |
Change in credit facility and commercial paper | (50,000) | (130,000) | 0 | (150,000) |
Change in short-term debt | (1,527,746) | (435,000) | (1,458,939) | (686,000) |
Issuance of short-term debt | 450,000 | 0 | 450,000 | 1,850,000 |
Withholding remittance - share-based compensation | (1,506) | (1,978) | (2,190) | (2,000) |
Other | (4,949) | (7,898) | (21,223) | (7,274) |
Net cash provided by (used in) financing activities | (714,823) | 369,474 | (727,817) | 3,226,725 |
Change in cash and cash equivalents | (64,796) | 401,969 | (542,581) | 532,321 |
Cash and cash equivalents at beginning of period | 123,078 | 222,697 | 624,666 | 92,345 |
Cash and cash equivalents at end of period | 82,085 | 624,666 | 82,085 | 624,666 |
SUPPLEMENTAL INFORMATION: | ||||
Interest paid, net of amounts capitalized | 68,018 | 35,262 | 252,581 | 131,311 |
Income taxes paid (received), net | 2,381 | 1,408 | 12,974 | 3,965 |
Southwest Gas Corporation | ||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||
Net income | 134,696 | 111,795 | 177,281 | 180,215 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 74,650 | 72,114 | 265,579 | 256,814 |
Deferred income taxes | 39,194 | 34,560 | 47,021 | 72,845 |
Gain on sale of property | 0 | (1,503) | 0 | (1,503) |
Changes in undistributed stock compensation | 2,955 | 3,239 | 5,492 | 6,723 |
Equity AFUDC | 0 | (76) | 76 | 905 |
Changes in current assets and liabilities: | ||||
Accounts receivable, net of allowance | (66,816) | (55,219) | (76,011) | (50,394) |
Accrued utility revenue | 31,200 | 32,900 | (4,900) | (1,500) |
Deferred purchased gas costs | (520,219) | (76,809) | (602,385) | (129,068) |
Accounts payable | (286,164) | (67,584) | 24,696 | 23,256 |
Accrued taxes | 34,473 | 30,835 | 25,392 | (3,263) |
Other current assets and liabilities | 351,252 | 90,558 | 71,957 | (20,731) |
Changes in deferred charges and other assets | (12,891) | (6,439) | (8,146) | (21,647) |
Changes in other liabilities and deferred credits | (10,942) | (4,033) | (34,599) | (27,637) |
Net cash provided by (used in) operating activities | (228,612) | 164,338 | (108,547) | 285,015 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||||
Construction expenditures and property additions | (192,097) | (141,123) | (734,105) | (614,562) |
Changes in customer advances | (6,608) | 7,693 | 7,205 | 19,381 |
Other | 119 | (918) | 7,954 | (829) |
Net cash provided by (used in) investing activities | (198,586) | (134,348) | (718,946) | (596,010) |
CASH FLOW FROM FINANCING ACTIVITIES: | ||||
Contributions from parent | 0 | 0 | 0 | 156,599 |
Dividends paid | (32,000) | (29,200) | (125,000) | (114,600) |
Issuance of long-term debt, net | 297,759 | 593,862 | 595,560 | 891,180 |
Retirement of long-term debt | 0 | (25,000) | (250,000) | (25,000) |
Change in credit facility and commercial paper | (50,000) | (130,000) | 0 | (150,000) |
Change in short-term debt | (225,000) | 0 | (250,000) | (17,000) |
Issuance of short-term debt | 450,000 | 0 | 450,000 | 0 |
Withholding remittance - share-based compensation | (1,292) | (1,978) | (1,883) | (1,999) |
Other | (993) | (489) | (3,961) | (2,104) |
Net cash provided by (used in) financing activities | 438,474 | 407,195 | 414,716 | 737,076 |
Change in cash and cash equivalents | 11,276 | 437,185 | (412,777) | 426,081 |
Cash and cash equivalents at beginning of period | 51,823 | 38,691 | 475,876 | 49,795 |
Cash and cash equivalents at end of period | 63,099 | 475,876 | 63,099 | 475,876 |
SUPPLEMENTAL INFORMATION: | ||||
Interest paid, net of amounts capitalized | 29,007 | 15,757 | 121,230 | 99,045 |
Income taxes paid (received), net | $ 0 | $ 0 | $ 5 | $ (13,529) |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - Southwest - USD ($) $ in Thousands | Total | Southwest Gas Corporation | Common stock shares | Common stock shares Southwest Gas Corporation | Additional paid-in capital | Additional paid-in capital Southwest Gas Corporation | Accumulated other comprehensive loss | Accumulated other comprehensive loss Southwest Gas Corporation | Retained earnings | Retained earnings Southwest Gas Corporation |
Beginning balance (in shares) at Dec. 31, 2021 | 60,422,000 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 62,052 | $ 1,824,216 | $ 1,618,911 | $ (46,761) | $ (46,913) | $ 1,114,313 | $ 906,827 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 96,178 | 111,795 | ||||||||
Share-based compensation | 1,705 | (445) | ||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 1,126 | 1,126 | ||||||||
FSIRS amounts reclassified to net income, net of tax | $ 416 | $ 416 | 416 | 416 | ||||||
Dividends declared to Southwest Gas Holdings, Inc. | (41,909) | (31,000) | ||||||||
Ending balance (in shares) at Mar. 31, 2022 | 66,849,000 | 47,482,000 | ||||||||
Ending balance at Mar. 31, 2022 | 2,611,534 | $ 68,479 | $ 49,112 | 2,273,837 | 1,620,616 | (43,972) | (45,371) | 1,190,738 | 987,177 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
FSIRS amounts reclassified to net income, net of tax | $ 0 | 0 | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 71,330,991 | 71,331,000 | 47,482,000 | |||||||
Ending balance at Mar. 31, 2023 | 2,666,130 | $ 72,961 | $ 49,112 | 2,524,631 | 1,624,919 | (43,949) | (38,065) | 742,513 | 1,030,164 | |
Beginning balance (in shares) at Dec. 31, 2022 | 67,119,143 | 67,119,000 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 68,749 | 2,287,183 | 1,622,969 | (44,242) | (38,261) | 747,069 | 935,355 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 45,911 | 134,696 | ||||||||
Share-based compensation | 1,950 | (287) | ||||||||
Net actuarial gain arising during period, less amortization of unamortized benefit plan cost, net of tax | 196 | 196 | ||||||||
FSIRS amounts reclassified to net income, net of tax | $ 0 | 0 | 0 | 0 | ||||||
Dividends declared to Southwest Gas Holdings, Inc. | (44,635) | (39,600) | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 71,330,991 | 71,331,000 | 47,482,000 | |||||||
Ending balance at Mar. 31, 2023 | $ 2,666,130 | $ 72,961 | $ 49,112 | $ 2,524,631 | $ 1,624,919 | $ (43,949) | $ (38,065) | $ 742,513 | $ 1,030,164 |
Background, Organization, and S
Background, Organization, and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background, Organization, and Summary of Significant Accounting Policies | Note 1 – Background, Organization, and Summary of Significant Accounting Policies Nature of Operations. Southwest Gas Holdings, Inc. (together with its subsidiaries, the “Company”) is a holding company, owning all of the shares of common stock of Southwest Gas Corporation (“Southwest” or the “natural gas distribution” segment), all of the shares of common stock of Centuri Group, Inc. (“Centuri,” or the “utility infrastructure services” segment), and until February 14, 2023, all of the shares of common stock of MountainWest Pipelines Holding Company (“MountainWest” or the “pipeline and storage” segment). In December 2022, the Company announced that its Board of Directors (the “Board”) unanimously determined to take strategic actions to simplify the Company’s portfolio of businesses. These actions included entering into a definitive agreement to sell 100% of MountainWest to Williams Partners Operating LLC (“Williams”) for $1.5 billion in total enterprise value, subject to certain adjustments (collectively, the “MountainWest sale”). Additionally, the Company determined it will pursue a spin-off of Centuri (the “Centuri spin-off”), to form a new independent publicly traded utility infrastructure services company. The MountainWest sale closed on February 14, 2023. The Centuri spin-off is expected to be completed in the fourth quarter of 2023 or the first quarter of 2024 and to be tax free to the Company and its stockholders for U.S. federal income tax purposes. See Note 8 - Dispositions for more information. Southwest is engaged in the business of purchasing, distributing, and transporting natural gas for customers in portions of Arizona, Nevada, and California. Public utility rates, practices, facilities, and service territories of Southwest are subject to regulatory oversight. The timing and amount of rate relief can materially impact results of operations. Natural gas purchases and the timing of related recoveries can materially impact liquidity. Results for the natural gas distribution segment are higher during winter periods due to the seasonality incorporated in its regulatory rate structures. Centuri is a strategic utility infrastructure services company dedicated to partnering with North America’s gas and electric providers to build and maintain the energy network that powers millions of homes across the United States (“U.S.”) and Canada. Centuri derives revenue primarily from installation, replacement, repair, and maintenance of energy networks. Centuri operates in the U.S., primarily as NPL, Neuco, Linetec, and Riggs Distler, and in Canada, primarily as NPL Canada. Utility infrastructure services activity is seasonal in many of Centuri’s operating areas. Peak periods are the summer and fall months in colder climate areas, such as the northeastern and midwestern U.S. and in Canada. In warmer climate areas, such as the southwestern and southeastern U.S., utility infrastructure services activity continues year round. Basis of Presentation. The condensed consolidated financial statements of Southwest Gas Holdings, Inc. and subsidiaries and Southwest (with its subsidiaries) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end 2022 condensed balance sheet data was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. No substantive change has occurred with regard to the Company’s business segments on the whole during the recently completed quarter, other than the sale of MountainWest, discussed above. The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring items and estimates necessary for a fair statement of results for the interim periods, have been made. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2022 Annual Report to Stockholders, which is incorporated by reference into the 2022 Form 10-K. In the first quarter of 2023, management identified a misstatement related to its accounting for the cost of gas sold at Southwest, thereby determining that Net cost of gas sold was overstated in 2021 and 2022 by $2.3 million and $5.7 million, respectively. Southwest made an adjustment in the first quarter of 2023 to reduce Net cost of gas sold and to increase its asset balance for Deferred purchased gas cost by $8 million. Also in the first quarter of 2023, the Company identified an approximately $21 million misstatement related to its initial estimation of the loss recorded upon reclassifying MountainWest as an asset held for sale during the year ended December 31, 2022. Consequently, the impairment loss for the year ended December 31, 2022 was understated by approximately $21 million, which was corrected in the first quarter of 2023. The Company (and Southwest, with respect to Net cost of gas sold) assessed, both quantitatively and qualitatively, the impact of these items on previously issued financial statements, concluding they were not material to any prior period or the current period financial statements. Other Property and Investments. Other property and investments on Southwest’s and the Company’s Condensed Consolidated Balance Sheets includes: (Thousands of dollars) March 31, 2023 December 31, 2022 Net cash surrender value of COLI policies $ 138,689 $ 136,245 Other property 5,897 33,152 Total Southwest Gas Corporation 144,586 169,397 Non-regulated property, equipment, and intangibles 1,698,327 1,677,218 Non-regulated accumulated provision for depreciation and amortization (624,693) (596,518) Other property and investments 32,107 31,075 Total Southwest Gas Holdings, Inc. $ 1,250,327 $ 1,281,172 Included in the table above are the net cash surrender values of company-owned life insurance (“COLI”) policies. These life insurance policies on members of management and other key employees are used by Southwest to indemnify itself against the loss of talent, expertise, and knowledge, as well as to provide indirect funding for certain nonqualified benefit plans. The term non-regulated in regard to assets and related balances in the table above is in reference to the non-rate regulated operations of Centuri. Held for sale. The Company and Southwest have classified certain assets associated with its previous corporate headquarters as held for sale during the first quarter of 2023. An agreement for sale was signed in May 2023, subject to certain closing conditions, including possible extension periods. Amounts to be realized above the carrying value are not expected to be material to the financial statements overall. Management determined that the assets met the criteria to be classified as held for sale as of March 31, 2023. As a result, the Company and Southwest reclassified approximately $27 million from Other property and investments to current assets held for sale on their respective Condensed Consolidated Balance Sheets at March 31, 2023. Cash and Cash Equivalents. Cash and cash equivalents of the Company include $32.7 million and $30 million of money market fund investments at March 31, 2023 and December 31, 2022, respectively. The money market fund investments for Southwest were $29.6 million at March 31, 2023 and $17.6 million at December 31, 2022, respectively. These investments fall within Level 2 of the fair value hierarchy, due to the asset valuation methods used by money market funds. Noncash investing activities for the Company and Southwest include capital expenditures that were not yet paid, thereby remaining in accounts payable, the amounts related to which declined by approximately $37.3 million and $34.2 million during the three months ended March 31, 2023, respectively, and increased $5.5 million and $5.7 million during the twelve months ended March 31, 2023, respectively. Accounts Receivable, net of allowances. Following an earlier moratorium on account disconnections amidst the COVID-19 environment, account collection efforts resumed in 2021 in all jurisdictions in which Southwest operates. Ultimately, some accounts that are receivable at the end of any reporting date may not be collected, and if collection is unsuccessful, such accounts are written off. Estimates as to collectibility are made on an ongoing basis. However, Southwest continues to actively work with customers experiencing financial hardship by means of flexible payment options and partnering with assistance agencies. The cost of gas included in customer rates also influences account balances at each reporting date. Deferred Purchased Gas Costs. The various regulatory commissions have established procedures to enable rate-regulated companies to adjust billing rates for changes in the cost of natural gas purchased. The difference between the current cost of gas purchased and the cost of gas recovered in billed rates is deferred. Generally, these deferred amounts are recovered or refunded within one year. Prepaid and other current assets. Prepaid and other current assets for Southwest include, among other things, materials and operating supplies of $79 million at March 31, 2023 and $77.3 million at December 31, 2022 (carried at weighted average cost). Also included in the balance was $207 million as of December 31, 2022 in accrued purchased gas cost, with no corresponding asset balance as of March 31, 2023. Goodwill. Goodwill is assessed as of October 1 st each year for impairment, or more frequently, if circumstances indicate it may be more likely than not that the fair value of a reporting unit is less than its carrying value. The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. Since December 31, 2022, management qualitatively assessed whether events during the first three months of 2023 indicated it was more likely than not that the fair value of our reporting units was less than their carrying value, which if the case, could be an indication of a goodwill impairment. Through management’s assessments during first quarter of 2023, no impairment was deemed to have occurred in the continuing segments of the Company. However, there can be no assurances that future assessments of goodwill will not result in an impairment, and various factors, including changes in the business, strategic initiatives, economic conditions, governmental monetary policies, interest rates, or others, on their own or in combination with each other, could result in the fair value of reporting units being lower than their carrying values. Goodwill in the Natural Gas Distribution and Utility Infrastructure Services segments is included in their respective Condensed Consolidated Balance Sheets as follows: (Thousands of dollars) Natural Gas Utility Infrastructure Total Company December 31, 2022 $ 11,155 $ 776,095 $ 787,250 Foreign currency translation adjustment — 84 84 March 31, 2023 $ 11,155 $ 776,179 $ 787,334 Other Current Liabilities . Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment within the next twelve months, including amounts payable under regulatory mechanisms, customary accrued expenses for employee compensation and benefits, declared but unpaid dividends, and miscellaneous other accrued liabilities. Other current liabilities for the Company include $44.2 million and $41.6 million of dividends declared as of March 31, 2023 and December 31, 2022, respectively. Also included in the balance was $68 million as of March 31, 2023 in accrued purchased gas cost, with no corresponding liability balance as of December 31, 2022. Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in Southwest’s and the Company’s Condensed Consolidated Statements of Income: Three Months Ended March 31, Twelve Months Ended (Thousands of dollars) 2023 2022 2023 2022 Southwest Gas Corporation: Change in COLI policies $ 2,400 $ (2,000) $ (1,000) $ 4,100 Interest income 12,471 2,801 25,853 7,198 Equity AFUDC — 76 (76) (905) Other components of net periodic benefit cost 4,959 (188) 4,396 (10,704) Miscellaneous income and (expense) (1,387) 626 (18,929) (3,483) Southwest Gas Corporation - total other income (deductions) 18,443 1,315 10,244 (3,794) Centuri, MountainWest, and Southwest Gas Holdings, Inc.: Foreign transaction gain (loss) (690) 3 284 (16) Equity AFUDC 82 182 365 182 Equity in earnings of unconsolidated investments 360 515 2,474 749 Miscellaneous income and (expense) (5) (651) (2,467) 303 Corporate and administrative 270 (120) 127 (127) Southwest Gas Holdings, Inc. - total other income (deductions) $ 18,460 $ 1,244 $ 11,027 $ (2,703) Included in the table above is the change in cash surrender values of COLI policies (including net death benefits recognized). Current tax regulations provide for tax-free treatment of life insurance (death benefit) proceeds. Therefore, changes in the cash surrender values of COLI policies, as they progress towards the ultimate death benefits, are also recorded without tax consequences. Interest income primarily relates to Southwest’s regulatory asset balances, including its deferred purchased gas cost mechanisms. Interest income includes carrying charges on regulatory account balances, including deferred purchased gas cost balances, which increased from $368 million as of March 31, 2022 to $970 million as of March 31, 2023. Refer also to Note 2 – Components of Net Periodic Benefit Cost . Redeemable Noncontrolling Interests. In connection with the acquisition of Linetec in November 2018, the previous owner initially retained a 20% equity interest in that entity, with redemption being subject to certain rights based on the passage of time or upon the occurrence of certain triggering events. Effective in 2022, the Company, through Centuri, had the right, but not the obligation, to purchase at fair value (subject to a floor) a portion of the interest held by the previous owner, and in incremental amounts each year thereafter. In March 2022, the parties agreed to a partial redemption, reducing the noncontrolling interest to 15%, and in March 2023, agreeing once again to a 5% redemption (of the 15% then remaining), and to thereby reduce the noncontrolling interest to 10% under the terms of the original agreement. As a result of this most recent election, Centuri accrued $39.9 million as of March 31, 2023, which was paid to the previous owner of Linetec in April 2023. The impact of this transaction has been excluded from the Company’s Condensed Consolidated Statement of Cash Flows for 2023 due to its noncash nature in advance of the April 2023 payment. The remaining balance continuing to be redeemable as of March 31, 2023 is 10% under the terms of the original agreement, with Centuri now owning a 90% stake in Linetec . Certain members of Riggs Distler management have a 1.42% interest in Drum, which is redeemable, subject to certain rights based on the passage of time or upon the occurrence of certain triggering events. Significant changes in the value of the redeemable noncontrolling interests, above a floor determined at the establishment date, are recognized as they occur, and the carrying value is adjusted as necessary at each reporting date. The fair value is estimated using a market approach that utilizes certain financial metrics from guideline public companies of similar industry and operating characteristics. Based on the fair value model employed, the estimated redemption value of the Linetec redeemable noncontrolling interest increased approximately $5.8 million during the three months ended March 31, 2023, notwithstanding the change resulting from the partial redemption noted above. Valuation adjustments also impact retained earnings, as reflected in the Company’s Condensed Consolidated Statement of Equity, but do not impact net income. The following depicts changes to the balances of the redeemable noncontrolling interests: (Thousands of dollars): Linetec Drum Total Balance, December 31, 2022 $ 146,765 $ 12,584 $ 159,349 Net income attributable to redeemable noncontrolling interests 1,683 56 1,739 Redemption value adjustments 5,832 — 5,832 Redemption of equity interest from noncontrolling party (39,894) — (39,894) Balance, March 31, 2023 $ 114,386 $ 12,640 $ 127,026 Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. A reconciliation of the denominator used in Basic and Diluted EPS calculations is shown in the following table: Three Months Ended Twelve Months Ended (In thousands) 2023 2022 2023 2022 Weighted average basic shares 68,265 60,737 67,413 59,919 Effect of dilutive securities: Restricted stock units (1)(2) 154 117 — 125 Weighted average diluted shares 68,419 60,854 67,413 60,044 (1) The number of anti-dilutive restricted stock units excluded from the calculation of diluted shares during the twelve months ended March 31, 2023 is 166,000. (2) The number of securities included 132,000 and 112,000 performance shares during the three months ended March 31, 2023 and 2022, and 149,000 and 114,000 performance shares during the twelve months en ded March 31, 2023 and 2022, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance period. Income Taxes. The Company’s effective tax rate was 37.6% for the three months ended March 31, 2023, compared to 19.9% for the corresponding period in 2022. The effective tax rate increase was primarily due to the MountainWest sale, and includes the impact of book versus tax basis differences related to the transaction (See Note 8 - Dispositions ). Southwest’s effective tax rate was 18.3% for the three months ended March 31, 2023, compared to 20.6% in the prior year quarter. These amounts varied from the statutory rate primarily as the result of the amortization of excess deferred income taxes. In April 2023, the Internal Revenue Service (“IRS”) issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenditures to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. The Company and Southwest are currently reviewing this revenue procedure to determine the potential impact on their financial position, results of operations, and cash flows. Recent Accounting Standards Updates. Accounting pronouncements effective or adopted in 2023: In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting, including when modifying a contract (during the eligibility period covered by the update to the topic) to replace a reference rate affected by reference rate reform. The update applies only to contracts and hedging relationships that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. In December 2022, the FASB issued ASU 2022-06 “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” The update provides deferral of the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. Management will continue to monitor the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures, and will reflect such appropriately, in the event that the optional guidance is elected. See also LIBOR discussion in Note 5 – Debt . |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Note 2 – Components of Net Periodic Benefit Cost Southwest has a noncontributory qualified retirement plan with defined benefits covering substantially all employees for employees hired before 2022 and a separate unfunded supplemental retirement plan (“SERP”), which is limited to officers also hired before 2022. Southwest also provides limited postretirement benefits other than pensions (“PBOP”) to its qualified retirees for health care, dental, and life insurance. The service cost component of net periodic benefit costs included in the table below is a component of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of service cost to the same accounts to which productive labor is charged. As a result, service costs become components of various accounts, primarily operations and maintenance expense, net regulated operations plant, and deferred charges and other assets for both the Company and Southwest. The other components of net periodic benefit cost are reflected in Other income (deductions) on the Condensed Consolidated Statements of Income of each entity. Variability in total net periodic benefit cost between periods, especially with regard to the Qualified Retirement Plan, is subject to changes in underlying actuarial assumptions between periods, notably the discount rate. Qualified Retirement Plan March 31, Three Months Twelve Months 2023 2022 2023 2022 (Thousands of dollars) Service cost $ 6,460 $ 11,028 $ 39,542 $ 41,897 Interest cost 14,791 11,251 48,546 41,575 Expected return on plan assets (21,015) (19,978) (80,950) (74,242) Amortization of net actuarial loss 84 8,117 24,435 39,583 Net periodic benefit cost $ 320 $ 10,418 $ 31,573 $ 48,813 SERP March 31, Three Months Twelve Months 2023 2022 2023 2022 (Thousands of dollars) Service cost $ 62 $ 106 $ 380 $ 501 Interest cost 531 360 1,612 1,433 Amortization of net actuarial loss 249 588 2,011 2,570 Net periodic benefit cost $ 842 $ 1,054 $ 4,003 $ 4,504 PBOP March 31, Three Months Twelve Months 2023 2022 2023 2022 (Thousands of dollars) Service cost $ 317 $ 485 $ 1,773 $ 1,753 Interest cost 825 613 2,664 2,258 Expected return on plan assets (606) (807) (3,027) (3,236) Amortization of prior service costs 44 44 175 763 Net periodic benefit cost $ 580 $ 335 $ 1,585 $ 1,538 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 3 – Revenue The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas distribution segment. Centuri encompasses the utility infrastructure services segment. MountainWest, commencing January 2022 (following its acquisition) and until its sale in mid-February 2023, encompassed the pipeline and storage segment. Natural Gas Distribution Segment : Southwest’s operating revenues included on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, in addition to other categories of revenue: Three Months Ended Twelve Months Ended March 31, (Thousands of dollars) 2023 2022 2023 2022 Residential $ 739,313 $ 514,586 $ 1,549,521 $ 1,147,055 Small commercial 174,184 123,984 428,720 312,800 Large commercial 31,091 20,161 96,164 64,859 Industrial/other 21,114 9,972 62,036 38,515 Transportation 30,543 26,632 104,553 94,336 Revenue from contracts with customers 996,245 695,335 2,240,994 1,657,565 Alternative revenue program revenues (deferrals) (86,204) (23,499) (81,183) 6,055 Other revenues (1) 4,838 4,703 13,598 12,777 Total Regulated operations revenues $ 914,879 $ 676,539 $ 2,173,409 $ 1,676,397 (1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms. Also includes the impacts of a temporary moratorium on late fees and disconnection for nonpayment during the COVID-19 pandemic. Utility Infrastructure Services Segment : The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types: Three Months Ended Twelve Months Ended March 31, (Thousands of dollars) 2023 2022 2023 2022 Service Types: Gas infrastructure services $ 297,408 $ 260,682 $ 1,568,544 $ 1,341,185 Electric power infrastructure services 233,640 181,968 829,796 613,209 Other 122,245 81,227 491,403 364,169 Total Utility infrastructure services revenues $ 653,293 $ 523,877 $ 2,889,743 $ 2,318,563 Three Months Ended Twelve Months Ended March 31, (Thousands of dollars) 2023 2022 * 2023 2022* Contract Types: Master services agreement $ 547,606 $ 445,345 $ 2,444,481 $ 1,804,643 Bid contract 105,687 78,532 445,262 513,920 Total Utility infrastructure services revenues $ 653,293 $ 523,877 $ 2,889,743 $ 2,318,563 Unit price contracts $ 328,527 $ 302,523 $ 1,634,135 $ 1,437,156 Fixed price contracts 166,915 86,537 578,417 319,685 Time and materials contracts 157,851 134,817 677,191 561,722 Total Utility infrastructure services revenues $ 653,293 $ 523,877 $ 2,889,743 $ 2,318,563 *The Company identified a misstatement in the first quarter 2022 disclosure which resulted in an understatement of $88.8 million in the master services agreement category and an overstatement by the same amount in the bid contract category. Management concluded this item was not material to the previously issued financial statements and revised the disclosures for the three- and twelve- months ended March 31, 2022. The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), both of which are included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liabilities), which are included in Other current liabilities as of March 31, 2023 and December 31, 2022 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) March 31, 2023 December 31, 2022 Contracts receivable, net $ 322,558 $ 394,022 Revenue earned on contracts in progress in excess of billings 279,624 238,059 Amounts billed in excess of revenue earned on contracts 39,595 35,769 The revenue earned on contracts in progress in excess of billings (contract asset) primarily relates to Centuri’s right to consideration for work completed but not billed and/or approved for billing at the reporting date. These contract assets are transferred to contracts receivable when the rights become unconditional. The amounts billed in excess of revenue earned (contract liability) primarily relate to the advance consideration received from customers for which work has not yet been completed. The change in this contract liability balance from December 31, 2022 to March 31, 2023 increased due to amounts received for services not yet performed, net of revenue recognized. For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Furthermore, because of the short duration of these contracts, Centuri has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue. As of March 31, 2023, Centuri had 62 fixed price contracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of March 31, 2023 was $458.2 million. Centuri expects to recognize the remaining performance obligations over approximately the next two years; however, the timing of that recognition is largely within the control of the customer, including when the necessary materials required to complete the work are provided by the customer. Utility infrastructure services contracts receivable consists of the following: (Thousands of dollars) March 31, 2023 December 31, 2022 Billed on completed contracts and contracts in progress $ 325,528 $ 395,771 Other receivables 1,738 2,569 Contracts receivable, gross 327,266 398,340 Allowance for doubtful accounts (4,708) (4,318) Contracts receivable, net $ 322,558 $ 394,022 Pipeline and Storage Segment: MountainWest Regulated operations revenues on the Condensed Consolidated Statements of Income of the Company include revenue from contracts with customers, which is shown below, disaggregated by categories of sales and service activities. The information for 2023 reflects activity from January 1, 2023 through February 13, 2023 (the last full day of ownership). Three Months Ended (Thousands of dollars) 2023 2022 Regulated gas transportation and storage revenues $ 34,225 $ 61,977 NGL revenues 441 1,493 Other revenues 466 3,479 Revenue from contracts with customers 35,132 66,949 Other revenues — 44 Total Regulated operations revenues $ 35,132 $ 66,993 |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Common Stock | Note 4 – Common Stock Shares of the Company’s common stock are publicly traded on the New York Stock Exchange, under the ticker symbol “SWX.” Share-based compensation related to Southwest and Centuri is based on stock awards to be issued in shares of Southwest Gas Holdings, Inc. On April 8, 2021, the Company entered into a Sales Agency Agreement between the Company and BNY Mellon Capital Markets, LLC and J.P. Morgan Securities LLC (the “Equity Shelf Program”) for the offer and sale of up to $500 million of common stock from time to time in an at-the-market offering program. The shares are issued pursuant to the Company’s automatic shelf registration statement on Form S-3 (File No. 333-251074), or “the Universal Shelf.” There wa s no activity under the Equity Shelf Program during the quarter ended March 31, 2023. The following table provides the life-to-date activity under that program through March 31, 2023: Gross proceeds $ 158,180,343 Less: agent commissions (1,581,803) Net proceeds $ 156,598,540 Number of shares sold 2,302,407 Weighted average price per share $ 68.70 As of March 31, 2023, the Company had approximately $342 million in common stock available for sale under the program. In March 2023, the Company issued, through a separate prospectus supplement under the Universal Shelf, an aggregate of 4.1 million shares of common stock, at an underwritten public offering price of $60.12 per share, resulting in net proceeds to the Company of $238.4 million, net of an underwriter’s discount of $8.3 million and estimated expenses of the offering. Approximately $140 million (2.3 million shares) of the offering was purchased by certain funds affiliated with Carl C. Icahn, a significant stockholder beneficially owning more that 10% of the outstanding stock of the Company. The Company used the net proceeds to repay outstanding amounts under the Company’s credit facility, with the remaining proceeds used to pay off residual amounts outstanding under the loan entered into in November 2021 in connection with the acquisition of MountainWest and the remainder, for working capital and general corporate purposes. During the three months ended March 31, 2023, the Company issued approximately 54,000 shares of common stock through the Restricted Stock/Unit Plan and Omnibus Incentive Plan. Additionally, during the three months ended March 31, 2023, the Company issued 46,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan, raising approximately $2.7 million . |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 – Debt Long-Term Debt Long-term debt is recognized in the Company’s and Southwest’s Condensed Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. Details surrounding the fair value and individual carrying values of instruments are provided in the table that follows. March 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 6.1%, due 2041 $ 125,000 $ 125,376 $ 125,000 $ 113,184 Notes, 4.05%, due 2032 600,000 552,972 600,000 527,052 Notes, 4.875%, due 2043 250,000 210,990 250,000 195,703 Notes, 3.8%, due 2046 300,000 229,644 300,000 209,169 Notes, 3.7%, due 2028 300,000 282,960 300,000 275,043 Notes, 5.45%, due 2028 300,000 303,159 — — Notes, 4.15%, due 2049 300,000 238,821 300,000 218,712 Notes, 2.2%, due 2030 450,000 372,380 450,000 353,763 Notes, 3.18%, due 2051 300,000 198,390 300,000 185,523 Notes, 5.8%, due 2027 300,000 310,653 300,000 305,913 8% Series, due 2026 75,000 80,121 75,000 80,027 Medium-term notes, 7.92% series, due 2027 25,000 27,069 25,000 26,840 Medium-term notes, 6.76% series, due 2027 7,500 7,803 7,500 7,662 Unamortized discount and debt issuance costs (32,893) (29,471) 3,299,607 3,003,029 Revolving credit facility and commercial paper — — 50,000 50,000 Industrial development revenue bonds: Tax-exempt Series A, due 2028 50,000 50,000 50,000 50,000 2003 Series A, due 2038 50,000 50,000 50,000 50,000 2008 Series A, due 2038 50,000 50,000 50,000 50,000 2009 Series A, due 2039 50,000 50,000 50,000 50,000 Unamortized discount and debt issuance costs (1,630) (1,733) 198,370 198,267 Less: current maturities — — Southwest Gas Corporation total long-term debt, less current maturities $ 3,497,977 $ 3,251,296 Southwest Gas Holdings, Inc.: Centuri secured term loan facility $ 1,002,825 $ 997,832 $ 1,008,550 $ 995,852 Centuri secured revolving credit facility 19,212 19,297 81,955 82,315 Other debt obligations 119,362 112,863 126,844 118,314 Unamortized discount and debt issuance costs (19,869) (20,789) Less: current maturities (41,907) (44,557) Southwest Gas Holdings, Inc. total long-term debt, less current maturities $ 4,577,600 $ 4,403,299 Southwest has a $400 million credit facility that is scheduled to expire in April 2025. Southwest designates $150 million of associated capacity as long-term debt and the remaining $250 million for working capital purposes. Interest rates for the credit facility are calculated at either the Secured Overnight Financing Rate (“SOFR”) or an “alternate base rate,” plus in each case an applicable margin that is determined based on Southwest’s senior unsecured debt rating. At March 31, 2023, the applicable margi n is 1.125% for loans bearing interest with reference to SOFR and 0.125% for loans bearing interest with reference to the alternative base rate. At March 31, 2023, no borrowings were outstanding on the long-te rm portion (including under the commercial paper program), nor under the short-term portion of the facility. Centuri has a $1.545 billion secured revolving credit and term loan multi-currency facility. Amounts can be borrowed in either Canadian or U.S. dollars. The revolving credit facility matures on August 27, 2026 and the term loan facility matures on August 27, 2028. Interest rates for the revolving credit facility are based on SOFR, plus an applicable margin; the term loan facility is based on LIBOR, plus an applicable margin. The capacity of the line of credit portion of the facility is $400 million; related amounts borrowed and repaid are available to be re-borrowed. The term loan portion of the facility has a limit of $1.145 billion. The obligations under the credit agreement are secured by present and future ownership interests in substantially all direct and indirect subsidiaries of Centuri, substantially all of the tangible and intangible personal property of each borrower, certain of their direct and indirect subsidiaries, and all products, profits, and proceeds of the foregoing. Centuri’s assets securing the facility at March 31, 2023 totaled $2.4 billion. At March 31, 2023, $1.022 billion in borrowings were outstanding under Centuri’s combined secured revolving credit and term loan facility. In March 2023, Southwest issued $300 million aggregate principal amount of 5.450% Senior Notes (the “March 2023 Notes”). The notes will mature in March 2028. Southwest used the net proceeds to repay amounts outstanding under its credit facility and the remainder for general corporate purposes. In April 2023, Southwest Gas Holdings, Inc. entered into a $550 million Term Loan Credit Agreement that matures in October 2024. Southwest Gas Holdings, Inc. utilized a majority of the proceeds to make an equity contribution to Southwest. On April 17, 2023, Southwest utilized the equity contribution to repay, in full, amounts outstanding under its $450 million 364-day term loan entered into in January 2023 (discussed below), with the remainder of the equity contribution used for working capital and general corporate purposes. Short-Term Debt Southwest Gas Holdings, Inc. has a $300 million credit facility that is scheduled to expire in December 2026 and is primarily used for short-term financing needs. Interest rates for the credit facility are calculated at either SOFR or the “alternate base rate,” plus in each case an applicable margin. There was $18 million outstanding under this credit facility as of March 31, 2023. As indicated above, under Southwest’s $400 million credit facility, no short-term borrowings were outstanding at March 31, 2023. In March 2022, Southwest amended it s $250 million Term Loan (the “March 2021 Term Loan”), extending the maturity date to March 21, 2023 and replacing LIBOR interest rate benchmarks with SOFR interest rate benchmarks. The proceeds were originally used to fund the increased cost of natural gas supply during the month of February 2021, caused by extreme weather conditions in the central U.S. During the first quarter of 2023, the March 2021 Term Loan was repaid in full by use of Southwest’s credit facility, prior to the issuance of the March 2023 Notes, proceeds from which were used to pay down indebtedness then outstanding under the credit facility, as indicated. On September 26, 2022, Southwest Gas Holdings, Inc. entered into Amendment No. 1 to the 364-day Term Loan Credit Agreement, initially borrowed to fund the acquisition of the equity interests in MountainWest, of which $1.147 billion was outstanding as of December 31, 2022 . The Credit Agreement initially provided for a $1.6 billion delayed-draw term loan (the “Term Loan Facility”). In connection with the close of the MountainWest sale on February 14, 2023, $1.075 billion of the proceeds were used to pay down the Term Loan Facility. During the first quarter of 2023, the Company paid down the remaining balance of the Term Loan Facility of approximately $72 million. In January 2023, Southwest entered into a 364-day $450 million term loan agreement. Southwest initially used the proceeds to fund higher than expected natural gas costs for the November 2022 through March 2023 winter period, caused by numerous market forces, including historically low storage levels, unexpected upstream pipeline maintenance events, and cold weather conditions across the western region. As indicated above, the term loan was repaid in full on April 17, 2023. |
Other Comprehensive Income and
Other Comprehensive Income and Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income and Accumulated Other Comprehensive Income | Note 6 – Other Comprehensive Income and Accumulated Other Comprehensive Income The following information presents the Company’s Other comprehensive income (loss), both before and after-tax impacts, within the Condensed Consolidated Statements of Comprehensive Income, which also impact Accumulated other comprehensive income (“AOCI”) in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Equity. Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) Three Months Ended Three Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 44 $ (11) $ 33 $ 44 $ (11) $ 33 Amortization of net actuarial (gain)/loss 333 (80) 253 8,705 (2,089) 6,616 Regulatory adjustment (119) 29 (90) (7,268) 1,745 (5,523) Pension plans other comprehensive income (loss) 258 (62) 196 1,481 (355) 1,126 FSIRS (designated hedging activities): Amounts reclassified into net income — — — 545 (129) 416 FSIRS other comprehensive income (loss) — — — 545 (129) 416 Total other comprehensive income (loss) - Southwest Gas Corporation 258 (62) 196 2,026 (484) 1,542 Foreign currency translation adjustments: Translation adjustments 97 — 97 1,247 — 1,247 Foreign currency other comprehensive income (loss) 97 — 97 1,247 — 1,247 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 355 $ (62) $ 293 $ 3,273 $ (484) $ 2,789 Twelve Months Ended Twelve Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Net actuarial gain/(loss) $ 4,079 $ (980) $ 3,099 $ 59,176 $ (14,202) $ 44,974 Amortization of prior service cost 175 (42) 133 763 (183) 580 Amortization of net actuarial (gain)/loss 26,446 (6,348) 20,098 42,153 (10,117) 32,036 Regulatory adjustment (21,083) 5,059 (16,024) (85,887) 20,614 (65,273) Pension plans other comprehensive income (loss) 9,617 (2,311) 7,306 16,205 (3,888) 12,317 FSIRS (designated hedging activities): Amounts reclassified into net income — — — 2,175 (520) 1,655 FSIRS other comprehensive income (loss) — — — 2,175 (520) 1,655 Total other comprehensive income (loss) - Southwest Gas Corporation 9,617 (2,311) 7,306 18,380 (4,408) 13,972 Foreign currency translation adjustments: Translation adjustments (7,283) — (7,283) 444 — 444 Foreign currency other comprehensive income (loss) (7,283) — (7,283) 444 — 444 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 2,334 $ (2,311) $ 23 $ 18,824 $ (4,408) $ 14,416 (1) Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest, in Canada, the earnings of Centuri’s Canadian subsidiaries, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss). The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets and its Condensed Consolidated Statements of Equity: Defined Benefit Plans Foreign Currency Items (Thousands of dollars) Before-Tax Tax After-Tax Before-Tax Tax After-Tax AOCI Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) $ (5,981) $ — $ (5,981) $ (44,242) Translation adjustments — — — 97 — 97 97 Other comprehensive income (loss) before reclassifications — — — 97 — 97 97 Amortization of prior service cost (1) 44 (11) 33 — — — 33 Amortization of net actuarial loss (1) 333 (80) 253 — — — 253 Regulatory adjustment (2) (119) 29 (90) — — — (90) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. 258 (62) 196 97 — 97 293 Ending Balance AOCI March 31, 2023 $ (50,084) $ 12,019 $ (38,065) $ (5,884) $ — $ (5,884) $ (43,949) (1) These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details). (2) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets). (3) Tax amounts are calculated using a 24% rate. The following table represents a rollforward of AOCI, presented on Southwest’s Condensed Consolidated Balance Sheets: Defined Benefit Plans (Thousands of dollars) Before-Tax Tax After-Tax Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) Amortization of prior service cost (4) 44 (11) 33 Amortization of net actuarial loss (4) 333 (80) 253 Regulatory adjustment (5) (119) 29 (90) Net current period other comprehensive income attributable to Southwest Gas Corporation 258 (62) 196 Ending Balance AOCI March 31, 2023 $ (50,084) $ 12,019 $ (38,065) (4) These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details). (5) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on Southwest’s Condensed Consolidated Balance Sheets). (6) Tax amounts are calculated using a 24% rate. The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost: (Thousands of dollars) March 31, 2023 December 31, 2022 Net actuarial loss $ (359,780) $ (360,113) Prior service cost (1,309) (1,353) Less: amount recognized in regulatory assets 311,005 311,124 Recognized in AOCI $ (50,084) $ (50,342) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 7 – Segment Information The Company had three reportable segments during the first quarter, prior to the MountainWest sale. Southwest comprises the natural gas distribution segment, Centuri comprises the utility infrastructure services segment, and MountainWest comprised the pipeline and storage segment. As a result of the MountainWest sale in February 2023, the information for 2023 presented below for MountainWest reflects activity from January 1, 2023 through February 13, 2023 (the last full day of its ownership by the Company). Centuri accounts for services provided to Southwest at contractual prices. Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: (Thousands of dollars) March 31, 2023 December 31, 2022 Centuri accounts receivable for services provided to Southwest $ 14,966 $ 18,067 In order to reconcile (below) to net income (loss) as disclosed in the Condensed Consolidated Statements of Income, an Other column is included associated with impacts of corporate and administrative activities related to Southwest Gas Holdings, Inc. The financial information pertaining to the natural gas distribution, utility infrastructure services, and pipeline and storage segments are as follows: (Thousands of dollars) Natural Gas Utility Infrastructure Pipeline and Storage Other Total Three Months Ended March 31, 2023 Revenues from external customers $ 914,879 $ 624,489 $ 35,132 $ — $ 1,574,500 Intersegment revenues — 28,804 — — 28,804 Total $ 914,879 $ 653,293 $ 35,132 $ — $ 1,603,304 Segment net income (loss) $ 134,696 $ (11,872) $ (16,288) $ (60,625) $ 45,911 Three Months Ended March 31, 2022 Revenues from external customers $ 676,539 $ 495,544 $ 66,993 $ — $ 1,239,076 Intersegment revenues — 28,333 — — 28,333 Total $ 676,539 $ 523,877 $ 66,993 $ — $ 1,267,409 Segment net income (loss) $ 111,795 $ (23,486) $ 16,930 $ (9,061) $ 96,178 (Thousands of dollars) Natural Gas Utility Infrastructure Pipeline and Storage Other Total Twelve Months Ended March 31, 2023 Revenues from external customers $ 2,173,409 $ 2,754,614 $ 232,752 $ — $ 5,160,775 Intersegment revenues — 135,129 — — 135,129 Total $ 2,173,409 $ 2,889,743 $ 232,752 $ — $ 5,295,904 Segment net income (loss) $ 177,281 $ 13,679 $ (316,951) $ (127,566) $ (253,557) Twelve Months Ended March 31, 2022 Revenues from external customers $ 1,676,397 $ 2,212,087 $ 66,993 $ — $ 3,955,477 Intersegment revenues — 106,476 — — 106,476 Total $ 1,676,397 $ 2,318,563 $ 66,993 $ — $ 4,061,953 Segment net income (loss) $ 180,215 $ 17,793 $ 16,930 $ (35,274) $ 179,664 The corporate and administrative activities for Southwest Gas Holdings, Inc. in the three-month period ended March 31, 2023 include, among other things, additional amounts related to commitments under the sale agreement with Williams in regard to MountainWest, including a charge of $28.4 million from the post-closing rate case settlement agreement for MountainWest Overthrust Pipeline (pending Federal Energy Regulatory Commission (the “FERC” approval)); and an additional $21 million |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Note 8 - Dispositions Dispositions In December 2022, the Company announced that the Board unanimously determined to take strategic actions to simplify the Company’s portfolio of businesses. These actions included entering into a definitive agreement to sell 100% of MountainWest to Williams for $1.5 billion in total enterprise value, subject to certain adjustments. The MountainWest sale closed on February 14, 2023. The Company is expected to provide certain services to Williams under a transition services agreement for a brief period, generally not beyond six months from the sale closing date. Additionally, the Company determined it will pursue a spin-off of Centuri to form a new independent publicly traded utility infrastructure services company. The Centuri spin-off is currently expected to be completed by the fourth quarter of 2023 or the end of the first quarter of 2024 and to be tax free to the Company and its stockholders for U.S. federal income tax purposes. The separation of Centuri will be subject to, among other things, finalizing the transaction structure, final approval by the Board, approval by the Arizona Corporation Commission (the “ACC”), the receipt of a favorable private letter ruling by the IRS relating to the tax-free nature of the transaction, and the effectiveness of a registration statement to be filed with the SEC. The application for the private letter ruling was filed with the IRS in March 2023 and the application to the ACC was filed in April 2023. The fair value of the MountainWest assets held-for-sale was previously estimated based on the preliminary closing statement and subject to certain adjustments, including a post-closing payment between the parties related to final working capital balances. The amount of the post-closing payment was finalized in May 2023, prior to the issuance of these financial statements. The Company recognized an additional loss on sale of approximately $21 million during the quarter ended March 31, 2023. This reflects the accrued post-closing payment of $7.4 million related to cash and net working capital balances above/below a contractual benchmark, with the remaining charge associated with other changes in the assets and liabilities that were not subject to post-closing payment true-up provisions. The post-closing payment of $7.4 million will effectively return approximately the same amount initially paid by Williams to the Company at closing. As referred to in Note 7 – Segment Information |
Background, Organization, and_2
Background, Organization, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations. Southwest Gas Holdings, Inc. (together with its subsidiaries, the “Company”) is a holding company, owning all of the shares of common stock of Southwest Gas Corporation (“Southwest” or the “natural gas distribution” segment), all of the shares of common stock of Centuri Group, Inc. (“Centuri,” or the “utility infrastructure services” segment), and until February 14, 2023, all of the shares of common stock of MountainWest Pipelines Holding Company (“MountainWest” or the “pipeline and storage” segment). |
Basis of Presentation | Basis of Presentation. The condensed consolidated financial statements of Southwest Gas Holdings, Inc. and subsidiaries and Southwest (with its subsidiaries) included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end 2022 condensed balance sheet data was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. No substantive change has occurred with regard to the Company’s business segments on the whole during the recently completed quarter, other than the sale of MountainWest, discussed above. The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring items and estimates necessary for a fair statement of results for the interim periods, have been made. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the 2022 Annual Report to Stockholders, which is incorporated by reference into the 2022 Form 10-K. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents of the Company include $32.7 million and $30 million of money market fund investments at March 31, 2023 and December 31, 2022, respectively. The money market fund investments for Southwest were $29.6 million at March 31, 2023 and $17.6 million at December 31, 2022, respectively. These investments fall within Level 2 of the fair value hierarchy, due to the asset valuation methods used by money market funds. Noncash investing activities for the Company and Southwest include capital expenditures that were not yet paid, thereby remaining in accounts payable, the amounts related to which declined by approximately $37.3 million and $34.2 million during the three months ended March 31, 2023, respectively, and increased $5.5 million and $5.7 million during the twelve months ended March 31, 2023, respectively. |
Accounts Receivable, net of allowances | Accounts Receivable, net of allowances. Following an earlier moratorium on account disconnections amidst the COVID-19 environment, account collection efforts resumed in 2021 in all jurisdictions in which Southwest operates. Ultimately, some accounts that are receivable at the end of any reporting date may not be collected, and if collection is unsuccessful, such accounts are written off. Estimates as to collectibility are made on an ongoing basis. However, |
Deferred Purchased Gas Costs | Deferred Purchased Gas Costs. The various regulatory commissions have established procedures to enable rate-regulated companies to adjust billing rates for changes in the cost of natural gas purchased. The difference between the current cost of gas purchased and the cost of gas recovered in billed rates is deferred. Generally, these deferred amounts are recovered or refunded within one year. |
Prepaid and other current assets | Prepaid and other current assets. Prepaid and other current assets for Southwest include, among other things, materials and operating supplies of $79 million at March 31, 2023 and $77.3 million |
Goodwill | Goodwill. Goodwill is assessed as of October 1 st each year for impairment, or more frequently, if circumstances indicate it may be more likely than not that the fair value of a reporting unit is less than its carrying value. The Company’s reporting units for goodwill are its operating segments, which are also its reportable segments. Since December 31, 2022, management qualitatively assessed whether events during the first three months of 2023 indicated it was more likely than not that the fair value of our reporting units was less than their carrying value, which if the case, could be an indication of a goodwill impairment. Through management’s assessments during first quarter of 2023, no impairment was deemed to have occurred in the continuing segments of the Company. However, there can be no assurances that future assessments of goodwill will not |
Other Current Liabilities | Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment within the next twelve months, including amounts payable under regulatory mechanisms, customary accrued expenses for employee compensation and benefits, declared but unpaid dividends, and miscellaneous other accrued liabilities. |
Earnings Per Share | Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. |
Recent Accounting Standards Updates | Recent Accounting Standards Updates. Accounting pronouncements effective or adopted in 2023: |
Background, Organization, and_3
Background, Organization, and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Property and Investments | Other property and investments on Southwest’s and the Company’s Condensed Consolidated Balance Sheets includes: (Thousands of dollars) March 31, 2023 December 31, 2022 Net cash surrender value of COLI policies $ 138,689 $ 136,245 Other property 5,897 33,152 Total Southwest Gas Corporation 144,586 169,397 Non-regulated property, equipment, and intangibles 1,698,327 1,677,218 Non-regulated accumulated provision for depreciation and amortization (624,693) (596,518) Other property and investments 32,107 31,075 Total Southwest Gas Holdings, Inc. $ 1,250,327 $ 1,281,172 |
Schedule of Goodwill | Goodwill in the Natural Gas Distribution and Utility Infrastructure Services segments is included in their respective Condensed Consolidated Balance Sheets as follows: (Thousands of dollars) Natural Gas Utility Infrastructure Total Company December 31, 2022 $ 11,155 $ 776,095 $ 787,250 Foreign currency translation adjustment — 84 84 March 31, 2023 $ 11,155 $ 776,179 $ 787,334 |
Schedule of Significant Items Included in Other Income (Deductions) | The following table provides the composition of significant items included in Other income (deductions) in Southwest’s and the Company’s Condensed Consolidated Statements of Income: Three Months Ended March 31, Twelve Months Ended (Thousands of dollars) 2023 2022 2023 2022 Southwest Gas Corporation: Change in COLI policies $ 2,400 $ (2,000) $ (1,000) $ 4,100 Interest income 12,471 2,801 25,853 7,198 Equity AFUDC — 76 (76) (905) Other components of net periodic benefit cost 4,959 (188) 4,396 (10,704) Miscellaneous income and (expense) (1,387) 626 (18,929) (3,483) Southwest Gas Corporation - total other income (deductions) 18,443 1,315 10,244 (3,794) Centuri, MountainWest, and Southwest Gas Holdings, Inc.: Foreign transaction gain (loss) (690) 3 284 (16) Equity AFUDC 82 182 365 182 Equity in earnings of unconsolidated investments 360 515 2,474 749 Miscellaneous income and (expense) (5) (651) (2,467) 303 Corporate and administrative 270 (120) 127 (127) Southwest Gas Holdings, Inc. - total other income (deductions) $ 18,460 $ 1,244 $ 11,027 $ (2,703) |
Summary of Redeemable Noncontrolling Interest | The following depicts changes to the balances of the redeemable noncontrolling interests: (Thousands of dollars): Linetec Drum Total Balance, December 31, 2022 $ 146,765 $ 12,584 $ 159,349 Net income attributable to redeemable noncontrolling interests 1,683 56 1,739 Redemption value adjustments 5,832 — 5,832 Redemption of equity interest from noncontrolling party (39,894) — (39,894) Balance, March 31, 2023 $ 114,386 $ 12,640 $ 127,026 |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in Basic and Diluted EPS calculations is shown in the following table: Three Months Ended Twelve Months Ended (In thousands) 2023 2022 2023 2022 Weighted average basic shares 68,265 60,737 67,413 59,919 Effect of dilutive securities: Restricted stock units (1)(2) 154 117 — 125 Weighted average diluted shares 68,419 60,854 67,413 60,044 (1) The number of anti-dilutive restricted stock units excluded from the calculation of diluted shares during the twelve months ended March 31, 2023 is 166,000. (2) The number of securities included 132,000 and 112,000 performance shares during the three months ended March 31, 2023 and 2022, and 149,000 and 114,000 performance shares during the twelve months en ded March 31, 2023 and 2022, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance |
Components of Net Periodic Be_2
Components of Net Periodic Benefit Cost (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The service cost component of net periodic benefit costs included in the table below is a component of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of service cost to the same accounts to which productive labor is charged. As a result, service costs become components of various accounts, primarily operations and maintenance expense, net regulated operations plant, and deferred charges and other assets for both the Company and Southwest. The other components of net periodic benefit cost are reflected in Other income (deductions) on the Condensed Consolidated Statements of Income of each entity. Variability in total net periodic benefit cost between periods, especially with regard to the Qualified Retirement Plan, is subject to changes in underlying actuarial assumptions between periods, notably the discount rate. Qualified Retirement Plan March 31, Three Months Twelve Months 2023 2022 2023 2022 (Thousands of dollars) Service cost $ 6,460 $ 11,028 $ 39,542 $ 41,897 Interest cost 14,791 11,251 48,546 41,575 Expected return on plan assets (21,015) (19,978) (80,950) (74,242) Amortization of net actuarial loss 84 8,117 24,435 39,583 Net periodic benefit cost $ 320 $ 10,418 $ 31,573 $ 48,813 SERP March 31, Three Months Twelve Months 2023 2022 2023 2022 (Thousands of dollars) Service cost $ 62 $ 106 $ 380 $ 501 Interest cost 531 360 1,612 1,433 Amortization of net actuarial loss 249 588 2,011 2,570 Net periodic benefit cost $ 842 $ 1,054 $ 4,003 $ 4,504 PBOP March 31, Three Months Twelve Months 2023 2022 2023 2022 (Thousands of dollars) Service cost $ 317 $ 485 $ 1,773 $ 1,753 Interest cost 825 613 2,664 2,258 Expected return on plan assets (606) (807) (3,027) (3,236) Amortization of prior service costs 44 44 175 763 Net periodic benefit cost $ 580 $ 335 $ 1,585 $ 1,538 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Service Type and Contract Type | Southwest’s operating revenues included on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, in addition to other categories of revenue: Three Months Ended Twelve Months Ended March 31, (Thousands of dollars) 2023 2022 2023 2022 Residential $ 739,313 $ 514,586 $ 1,549,521 $ 1,147,055 Small commercial 174,184 123,984 428,720 312,800 Large commercial 31,091 20,161 96,164 64,859 Industrial/other 21,114 9,972 62,036 38,515 Transportation 30,543 26,632 104,553 94,336 Revenue from contracts with customers 996,245 695,335 2,240,994 1,657,565 Alternative revenue program revenues (deferrals) (86,204) (23,499) (81,183) 6,055 Other revenues (1) 4,838 4,703 13,598 12,777 Total Regulated operations revenues $ 914,879 $ 676,539 $ 2,173,409 $ 1,676,397 (1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms. Also includes the impacts of a temporary moratorium on late fees and disconnection for nonpayment during the COVID-19 pandemic. The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types: Three Months Ended Twelve Months Ended March 31, (Thousands of dollars) 2023 2022 2023 2022 Service Types: Gas infrastructure services $ 297,408 $ 260,682 $ 1,568,544 $ 1,341,185 Electric power infrastructure services 233,640 181,968 829,796 613,209 Other 122,245 81,227 491,403 364,169 Total Utility infrastructure services revenues $ 653,293 $ 523,877 $ 2,889,743 $ 2,318,563 Three Months Ended Twelve Months Ended March 31, (Thousands of dollars) 2023 2022 * 2023 2022* Contract Types: Master services agreement $ 547,606 $ 445,345 $ 2,444,481 $ 1,804,643 Bid contract 105,687 78,532 445,262 513,920 Total Utility infrastructure services revenues $ 653,293 $ 523,877 $ 2,889,743 $ 2,318,563 Unit price contracts $ 328,527 $ 302,523 $ 1,634,135 $ 1,437,156 Fixed price contracts 166,915 86,537 578,417 319,685 Time and materials contracts 157,851 134,817 677,191 561,722 Total Utility infrastructure services revenues $ 653,293 $ 523,877 $ 2,889,743 $ 2,318,563 *The Company identified a misstatement in the first quarter 2022 disclosure which resulted in an understatement of $88.8 million in the master services agreement category and an overstatement by the same amount in the bid contract category. Management concluded this MountainWest Regulated operations revenues on the Condensed Consolidated Statements of Income of the Company include revenue from contracts with customers, which is shown below, disaggregated by categories of sales and service activities. The information for 2023 reflects activity from January 1, 2023 through February 13, 2023 (the last full day of ownership). Three Months Ended (Thousands of dollars) 2023 2022 Regulated gas transportation and storage revenues $ 34,225 $ 61,977 NGL revenues 441 1,493 Other revenues 466 3,479 Revenue from contracts with customers 35,132 66,949 Other revenues — 44 Total Regulated operations revenues $ 35,132 $ 66,993 |
Summary of Information about Receivables, Revenue Earned on Contracts in Progress in Excess of Billings, Which are Included Within Accounts Receivable, Net of Allowances, and Amounts Billed in Excess of Revenue Earned on Contracts | The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), both of which are included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liabilities), which are included in Other current liabilities as of March 31, 2023 and December 31, 2022 on the Company’s Condensed Consolidated Balance Sheets: (Thousands of dollars) March 31, 2023 December 31, 2022 Contracts receivable, net $ 322,558 $ 394,022 Revenue earned on contracts in progress in excess of billings 279,624 238,059 Amounts billed in excess of revenue earned on contracts 39,595 35,769 |
Schedule of Utility Infrastructure Services Contracts Receivable | Utility infrastructure services contracts receivable consists of the following: (Thousands of dollars) March 31, 2023 December 31, 2022 Billed on completed contracts and contracts in progress $ 325,528 $ 395,771 Other receivables 1,738 2,569 Contracts receivable, gross 327,266 398,340 Allowance for doubtful accounts (4,708) (4,318) Contracts receivable, net $ 322,558 $ 394,022 |
Common Stock (Tables)
Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Activity | The following table provides the life-to-date activity under that program through March 31, 2023: Gross proceeds $ 158,180,343 Less: agent commissions (1,581,803) Net proceeds $ 156,598,540 Number of shares sold 2,302,407 Weighted average price per share $ 68.70 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt | Details surrounding the fair value and individual carrying values of instruments are provided in the table that follows. March 31, 2023 December 31, 2022 Carrying Fair Carrying Fair (Thousands of dollars) Southwest Gas Corporation: Debentures: Notes, 6.1%, due 2041 $ 125,000 $ 125,376 $ 125,000 $ 113,184 Notes, 4.05%, due 2032 600,000 552,972 600,000 527,052 Notes, 4.875%, due 2043 250,000 210,990 250,000 195,703 Notes, 3.8%, due 2046 300,000 229,644 300,000 209,169 Notes, 3.7%, due 2028 300,000 282,960 300,000 275,043 Notes, 5.45%, due 2028 300,000 303,159 — — Notes, 4.15%, due 2049 300,000 238,821 300,000 218,712 Notes, 2.2%, due 2030 450,000 372,380 450,000 353,763 Notes, 3.18%, due 2051 300,000 198,390 300,000 185,523 Notes, 5.8%, due 2027 300,000 310,653 300,000 305,913 8% Series, due 2026 75,000 80,121 75,000 80,027 Medium-term notes, 7.92% series, due 2027 25,000 27,069 25,000 26,840 Medium-term notes, 6.76% series, due 2027 7,500 7,803 7,500 7,662 Unamortized discount and debt issuance costs (32,893) (29,471) 3,299,607 3,003,029 Revolving credit facility and commercial paper — — 50,000 50,000 Industrial development revenue bonds: Tax-exempt Series A, due 2028 50,000 50,000 50,000 50,000 2003 Series A, due 2038 50,000 50,000 50,000 50,000 2008 Series A, due 2038 50,000 50,000 50,000 50,000 2009 Series A, due 2039 50,000 50,000 50,000 50,000 Unamortized discount and debt issuance costs (1,630) (1,733) 198,370 198,267 Less: current maturities — — Southwest Gas Corporation total long-term debt, less current maturities $ 3,497,977 $ 3,251,296 Southwest Gas Holdings, Inc.: Centuri secured term loan facility $ 1,002,825 $ 997,832 $ 1,008,550 $ 995,852 Centuri secured revolving credit facility 19,212 19,297 81,955 82,315 Other debt obligations 119,362 112,863 126,844 118,314 Unamortized discount and debt issuance costs (19,869) (20,789) Less: current maturities (41,907) (44,557) Southwest Gas Holdings, Inc. total long-term debt, less current maturities $ 4,577,600 $ 4,403,299 |
Other Comprehensive Income an_2
Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) | Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) Three Months Ended Three Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Amortization of prior service cost $ 44 $ (11) $ 33 $ 44 $ (11) $ 33 Amortization of net actuarial (gain)/loss 333 (80) 253 8,705 (2,089) 6,616 Regulatory adjustment (119) 29 (90) (7,268) 1,745 (5,523) Pension plans other comprehensive income (loss) 258 (62) 196 1,481 (355) 1,126 FSIRS (designated hedging activities): Amounts reclassified into net income — — — 545 (129) 416 FSIRS other comprehensive income (loss) — — — 545 (129) 416 Total other comprehensive income (loss) - Southwest Gas Corporation 258 (62) 196 2,026 (484) 1,542 Foreign currency translation adjustments: Translation adjustments 97 — 97 1,247 — 1,247 Foreign currency other comprehensive income (loss) 97 — 97 1,247 — 1,247 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 355 $ (62) $ 293 $ 3,273 $ (484) $ 2,789 Twelve Months Ended Twelve Months Ended (Thousands of dollars) Before- Tax Net-of- Before- Tax Net-of- Defined benefit pension plans: Net actuarial gain/(loss) $ 4,079 $ (980) $ 3,099 $ 59,176 $ (14,202) $ 44,974 Amortization of prior service cost 175 (42) 133 763 (183) 580 Amortization of net actuarial (gain)/loss 26,446 (6,348) 20,098 42,153 (10,117) 32,036 Regulatory adjustment (21,083) 5,059 (16,024) (85,887) 20,614 (65,273) Pension plans other comprehensive income (loss) 9,617 (2,311) 7,306 16,205 (3,888) 12,317 FSIRS (designated hedging activities): Amounts reclassified into net income — — — 2,175 (520) 1,655 FSIRS other comprehensive income (loss) — — — 2,175 (520) 1,655 Total other comprehensive income (loss) - Southwest Gas Corporation 9,617 (2,311) 7,306 18,380 (4,408) 13,972 Foreign currency translation adjustments: Translation adjustments (7,283) — (7,283) 444 — 444 Foreign currency other comprehensive income (loss) (7,283) — (7,283) 444 — 444 Total other comprehensive income (loss) - Southwest Gas Holdings, Inc. $ 2,334 $ (2,311) $ 23 $ 18,824 $ (4,408) $ 14,416 (1) Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest, in Canada, the earnings of Centuri’s Canadian subsidiaries, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss). |
Schedule of Rollforward of Accumulated Other Comprehensive Income | The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets and its Condensed Consolidated Statements of Equity: Defined Benefit Plans Foreign Currency Items (Thousands of dollars) Before-Tax Tax After-Tax Before-Tax Tax After-Tax AOCI Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) $ (5,981) $ — $ (5,981) $ (44,242) Translation adjustments — — — 97 — 97 97 Other comprehensive income (loss) before reclassifications — — — 97 — 97 97 Amortization of prior service cost (1) 44 (11) 33 — — — 33 Amortization of net actuarial loss (1) 333 (80) 253 — — — 253 Regulatory adjustment (2) (119) 29 (90) — — — (90) Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc. 258 (62) 196 97 — 97 293 Ending Balance AOCI March 31, 2023 $ (50,084) $ 12,019 $ (38,065) $ (5,884) $ — $ (5,884) $ (43,949) (1) These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details). (2) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets). (3) Tax amounts are calculated using a 24% rate. The following table represents a rollforward of AOCI, presented on Southwest’s Condensed Consolidated Balance Sheets: Defined Benefit Plans (Thousands of dollars) Before-Tax Tax After-Tax Beginning Balance AOCI December 31, 2022 $ (50,342) $ 12,081 $ (38,261) Amortization of prior service cost (4) 44 (11) 33 Amortization of net actuarial loss (4) 333 (80) 253 Regulatory adjustment (5) (119) 29 (90) Net current period other comprehensive income attributable to Southwest Gas Corporation 258 (62) 196 Ending Balance AOCI March 31, 2023 $ (50,084) $ 12,019 $ (38,065) (4) These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details). (5) The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on Southwest’s Condensed Consolidated Balance Sheets). (6) Tax amounts are calculated using a 24% rate. |
Schedule of Amount Recognized Before Income Tax in Accumulated Other Comprehensive Income | The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost: (Thousands of dollars) March 31, 2023 December 31, 2022 Net actuarial loss $ (359,780) $ (360,113) Prior service cost (1,309) (1,353) Less: amount recognized in regulatory assets 311,005 311,124 Recognized in AOCI $ (50,084) $ (50,342) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule Of Accounts Receivable Not Eliminated During Consolidation | Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below: (Thousands of dollars) March 31, 2023 December 31, 2022 Centuri accounts receivable for services provided to Southwest $ 14,966 $ 18,067 |
Schedule of Segment Reporting Information | The financial information pertaining to the natural gas distribution, utility infrastructure services, and pipeline and storage segments are as follows: (Thousands of dollars) Natural Gas Utility Infrastructure Pipeline and Storage Other Total Three Months Ended March 31, 2023 Revenues from external customers $ 914,879 $ 624,489 $ 35,132 $ — $ 1,574,500 Intersegment revenues — 28,804 — — 28,804 Total $ 914,879 $ 653,293 $ 35,132 $ — $ 1,603,304 Segment net income (loss) $ 134,696 $ (11,872) $ (16,288) $ (60,625) $ 45,911 Three Months Ended March 31, 2022 Revenues from external customers $ 676,539 $ 495,544 $ 66,993 $ — $ 1,239,076 Intersegment revenues — 28,333 — — 28,333 Total $ 676,539 $ 523,877 $ 66,993 $ — $ 1,267,409 Segment net income (loss) $ 111,795 $ (23,486) $ 16,930 $ (9,061) $ 96,178 (Thousands of dollars) Natural Gas Utility Infrastructure Pipeline and Storage Other Total Twelve Months Ended March 31, 2023 Revenues from external customers $ 2,173,409 $ 2,754,614 $ 232,752 $ — $ 5,160,775 Intersegment revenues — 135,129 — — 135,129 Total $ 2,173,409 $ 2,889,743 $ 232,752 $ — $ 5,295,904 Segment net income (loss) $ 177,281 $ 13,679 $ (316,951) $ (127,566) $ (253,557) Twelve Months Ended March 31, 2022 Revenues from external customers $ 1,676,397 $ 2,212,087 $ 66,993 $ — $ 3,955,477 Intersegment revenues — 106,476 — — 106,476 Total $ 1,676,397 $ 2,318,563 $ 66,993 $ — $ 4,061,953 Segment net income (loss) $ 180,215 $ 17,793 $ 16,930 $ (35,274) $ 179,664 |
Background, Organization, and_4
Background, Organization, and Summary of Significant Accounting Policies - Narratives (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||||||
Decrease of net cost of gas sold | $ (507,537,000) | $ (298,918,000) | $ (1,007,679,000) | $ (573,804,000) | ||||
Increase in deferred purchased gas costs | 535,224,000 | 82,248,000 | 600,191,000 | 134,507,000 | ||||
Other property and investments adjustment | $ (1,250,327,000) | (1,250,327,000) | (1,250,327,000) | $ (1,281,172,000) | ||||
Current assets held for sale adjustment | 26,993,000 | 26,993,000 | 26,993,000 | 1,737,530,000 | ||||
Capital expenditures incurred but not yet paid, increase (decrease) | $ (37,300,000) | 5,500,000 | ||||||
Deferred purchased gas costs recovered or refunded period | 1 year | |||||||
Accrued purchased gas cost | 0 | $ 0 | 0 | 207,000,000 | ||||
Goodwill impairment loss | 0 | |||||||
Dividends declared but not yet paid | 44,200,000 | 44,200,000 | 44,200,000 | 41,600,000 | ||||
Accrued purchased gas cost | 68,000,000 | 68,000,000 | 68,000,000 | 0 | ||||
Deferred purchased gas costs | $ 970,339,000 | 970,339,000 | $ 368,000,000 | 970,339,000 | 450,120,000 | 368,000,000 | ||
Percentage of redeemable noncontrolling interest redeemed | 5% | |||||||
Accrual for repurchase of redeemable noncontrolling interest | $ 39,900,000 | 39,900,000 | 39,900,000 | |||||
Redemption value adjustments | $ (5,832,000) | |||||||
Effective income tax rate | 37.60% | 19.90% | ||||||
Linetec | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Redemption value adjustments | $ (5,832,000) | |||||||
Drum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Redemption value adjustments | 0 | |||||||
Southwest Gas Corporation | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Decrease of net cost of gas sold | (501,169,000) | $ (297,121,000) | (993,264,000) | (572,007,000) | ||||
Increase in deferred purchased gas costs | 520,219,000 | $ 76,809,000 | 602,385,000 | $ 129,068,000 | ||||
Other property and investments adjustment | (144,586,000) | (144,586,000) | (144,586,000) | (169,397,000) | ||||
Current assets held for sale adjustment | 26,993,000 | 26,993,000 | 26,993,000 | 0 | ||||
Capital expenditures incurred but not yet paid, increase (decrease) | (34,200,000) | 5,700,000 | ||||||
Gas pipe materials and operating supplies | 79,000,000 | 79,000,000 | 79,000,000 | 77,300,000 | ||||
Deferred purchased gas costs | $ 970,339,000 | $ 970,339,000 | $ 970,339,000 | 450,120,000 | ||||
Effective income tax rate | 18.30% | 20.60% | ||||||
Previous Owner Of Linetec | Linetec | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage by noncontrolling owners | 10% | 10% | 15% | 10% | 15% | 20% | ||
Centuri | Linetec | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage by Parent | 90% | 90% | 90% | |||||
Certain Members Of Riggs Distler Management | Drum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage by noncontrolling owners | 1.42% | 1.42% | 1.42% | |||||
Money Market Funds | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Money market fund investments | $ 32,700,000 | $ 32,700,000 | $ 32,700,000 | 30,000,000 | ||||
Money Market Funds | Southwest Gas Corporation | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Money market fund investments | 29,600,000 | 29,600,000 | 29,600,000 | 17,600,000 | ||||
Revision of Prior Period, Error Correction, Adjustment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Decrease of net cost of gas sold | $ 5,700,000 | $ 2,300,000 | ||||||
Increase in deferred purchased gas costs | 8,000,000 | |||||||
Loss on disposal adjustment | 21,000,000 | |||||||
Impairment of asset held for sale adjustment | 21,000,000 | |||||||
Revision of Prior Period, Adjustment | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Other property and investments adjustment | 27,000,000 | 27,000,000 | 27,000,000 | |||||
Current assets held for sale adjustment | $ 27,000,000 | $ 27,000,000 | $ 27,000,000 | |||||
Discontinued Operations, Disposed of by Sale | MountainWest | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Ownership percentage disposed | 100% | |||||||
Discontinued operation, consideration | $ 1,500,000,000 |
Background, Organization, and_5
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Other Property and Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Other property and investments | $ 32,107 | $ 31,075 |
Total | (1,250,327) | (1,281,172) |
Non-regulated property, equipment, and intangibles | 1,698,327 | 1,677,218 |
Non-regulated accumulated provision for depreciation and amortization | (624,693) | (596,518) |
Southwest Gas Corporation | ||
Property, Plant and Equipment [Line Items] | ||
Net cash surrender value of COLI policies | 138,689 | 136,245 |
Other property and investments | 5,897 | 33,152 |
Total | $ (144,586) | $ (169,397) |
Background, Organization, and_6
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 787,250 |
Foreign currency translation adjustment | 84 |
Goodwill, ending balance | 787,334 |
Natural Gas Distribution | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 11,155 |
Foreign currency translation adjustment | 0 |
Goodwill, ending balance | 11,155 |
Utility Infrastructure Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 776,095 |
Foreign currency translation adjustment | 84 |
Goodwill, ending balance | $ 776,179 |
Background, Organization, and_7
Background, Organization, and Summary of Significant Accounting Policies - Other Income (Deductions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Other income (deductions) | ||||
Total other income (deductions) | $ 18,460 | $ 1,244 | $ 11,027 | $ (2,703) |
Corporate and administrative | ||||
Other income (deductions) | ||||
Total other income (deductions) | 270 | (120) | 127 | (127) |
Southwest Gas Corporation | ||||
Other income (deductions) | ||||
Change in COLI policies | 2,400 | (2,000) | (1,000) | 4,100 |
Interest income | 12,471 | 2,801 | 25,853 | 7,198 |
Equity AFUDC | 0 | 76 | (76) | (905) |
Other components of net periodic benefit cost | 4,959 | (188) | 4,396 | (10,704) |
Miscellaneous income and (expense) | (1,387) | 626 | (18,929) | (3,483) |
Total other income (deductions) | 18,443 | 1,315 | 10,244 | (3,794) |
Centuri, MountainWest, and Southwest Gas Holdings, Inc. | ||||
Other income (deductions) | ||||
Equity AFUDC | 82 | 182 | 365 | 182 |
Miscellaneous income and (expense) | (5) | (651) | (2,467) | 303 |
Foreign transaction gain (loss) | (690) | 3 | 284 | (16) |
Equity in earnings of unconsolidated investments | $ 360 | $ 515 | $ 2,474 | $ 749 |
Background, Organization, and_8
Background, Organization, and Summary of Significant Accounting Policies - Summary of Redeemable Noncontrolling Interest (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | |
Redeemable noncontrolling interest, beginning balance | $ 159,349 |
Net income attributable to redeemable noncontrolling interests | 1,739 |
Redemption value adjustments | 5,832 |
Redemption of equity interest from noncontrolling party | (39,894) |
Redeemable noncontrolling interest, ending balance | 127,026 |
Linetec | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | |
Redeemable noncontrolling interest, beginning balance | 146,765 |
Net income attributable to redeemable noncontrolling interests | 1,683 |
Redemption value adjustments | 5,832 |
Redemption of equity interest from noncontrolling party | (39,894) |
Redeemable noncontrolling interest, ending balance | 114,386 |
Drum | |
Movement In Redeemable Noncontrolling Interest [Roll Forward] | |
Redeemable noncontrolling interest, beginning balance | 12,584 |
Net income attributable to redeemable noncontrolling interests | 56 |
Redemption value adjustments | 0 |
Redemption of equity interest from noncontrolling party | 0 |
Redeemable noncontrolling interest, ending balance | $ 12,640 |
Background, Organization, and_9
Background, Organization, and Summary of Significant Accounting Policies - Schedule of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Weighted average basic shares (in shares) | 68,265 | 60,737 | 67,413 | 59,919 |
Effect of dilutive securities: | ||||
Restricted stock units (in shares) | 154 | 117 | 0 | 125 |
Weighted average diluted shares (in shares) | 68,419 | 60,854 | 67,413 | 60,044 |
Number of performance share units granted (in shares) | 132 | 112 | 149 | 114 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 166 |
Components of Net Periodic Be_3
Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Qualified Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 6,460 | $ 11,028 | $ 39,542 | $ 41,897 |
Interest cost | 14,791 | 11,251 | 48,546 | 41,575 |
Expected return on plan assets | (21,015) | (19,978) | (80,950) | (74,242) |
Amortization of net actuarial loss | 84 | 8,117 | 24,435 | 39,583 |
Net periodic benefit cost | 320 | 10,418 | 31,573 | 48,813 |
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 62 | 106 | 380 | 501 |
Interest cost | 531 | 360 | 1,612 | 1,433 |
Amortization of net actuarial loss | 249 | 588 | 2,011 | 2,570 |
Net periodic benefit cost | 842 | 1,054 | 4,003 | 4,504 |
PBOP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 317 | 485 | 1,773 | 1,753 |
Interest cost | 825 | 613 | 2,664 | 2,258 |
Expected return on plan assets | (606) | (807) | (3,027) | (3,236) |
Amortization of prior service costs | 44 | 44 | 175 | 763 |
Net periodic benefit cost | $ 580 | $ 335 | $ 1,585 | $ 1,538 |
Revenue - Schedule of Regulated
Revenue - Schedule of Regulated Operations Revenues: Natural Gas Distribution Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Regulated operations revenues | $ 950,011 | $ 743,532 | $ 2,406,161 | $ 1,743,390 |
Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 996,245 | 695,335 | 2,240,994 | 1,657,565 |
Alternative revenue program revenues (deferrals) | (86,204) | (23,499) | (81,183) | 6,055 |
Other revenues | 4,838 | 4,703 | 13,598 | 12,777 |
Total Regulated operations revenues | 914,879 | 676,539 | 2,173,409 | 1,676,397 |
Residential | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 739,313 | 514,586 | 1,549,521 | 1,147,055 |
Small commercial | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 174,184 | 123,984 | 428,720 | 312,800 |
Large commercial | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 31,091 | 20,161 | 96,164 | 64,859 |
Industrial/other | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 21,114 | 9,972 | 62,036 | 38,515 |
Transportation | Natural Gas Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 30,543 | $ 26,632 | $ 104,553 | $ 94,336 |
Revenue - Schedule of Regulat_2
Revenue - Schedule of Regulated Operations Revenues: Utility Infrastructure Services Segment (Details) - Centuri - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 653,293 | $ 523,877 | $ 2,889,743 | $ 2,318,563 |
Master services agreement | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 547,606 | 445,345 | 2,444,481 | 1,804,643 |
Master services agreement | Revision of Prior Period, Error Correction, Adjustment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 88,800 | |||
Bid contract | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 105,687 | 78,532 | 445,262 | 513,920 |
Bid contract | Revision of Prior Period, Error Correction, Adjustment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (88,800) | |||
Unit price contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 328,527 | 302,523 | 1,634,135 | 1,437,156 |
Fixed price contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 166,915 | 86,537 | 578,417 | 319,685 |
Time and materials contracts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 157,851 | 134,817 | 677,191 | 561,722 |
Gas infrastructure services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 297,408 | 260,682 | 1,568,544 | 1,341,185 |
Electric power infrastructure services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 233,640 | 181,968 | 829,796 | 613,209 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 122,245 | $ 81,227 | $ 491,403 | $ 364,169 |
Revenue - Summary of Informatio
Revenue - Summary of Information about Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contracts receivable, net | $ 322,558 | $ 394,022 |
Revenue earned on contracts in progress in excess of billings | 279,624 | 238,059 |
Amounts billed in excess of revenue earned on contracts | $ 39,595 | $ 35,769 |
Revenue - Narratives (Details)
Revenue - Narratives (Details) - Centuri $ in Millions | Mar. 31, 2023 USD ($) contract |
Segment Reporting Information [Line Items] | |
Number of contracts with original duration more than one year | contract | 62 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Segment Reporting Information [Line Items] | |
Transaction price allocated to unsatisfied performance obligations of contracts | $ | $ 458.2 |
Transaction price allocated to unsatisfied performance obligations of contracts, period | 2 years |
Revenue - Schedule of Utility I
Revenue - Schedule of Utility Infrastructure Services Contracts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, net | $ 322,558 | $ 394,022 |
Utility Infrastructure Services | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | 327,266 | 398,340 |
Allowance for doubtful accounts | (4,708) | (4,318) |
Contracts receivable, net | 322,558 | 394,022 |
Utility Infrastructure Services | Billed on completed contracts and contracts in progress | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | 325,528 | 395,771 |
Utility Infrastructure Services | Other receivables | ||
Disaggregation of Revenue [Line Items] | ||
Contracts receivable, gross | $ 1,738 | $ 2,569 |
Revenue - Schedule of Regulat_3
Revenue - Schedule of Regulated Operations Revenues: Pipeline and Storage Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Regulated operations revenues | $ 950,011 | $ 743,532 | $ 2,406,161 | $ 1,743,390 |
Pipeline and Storage | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 35,132 | 66,949 | ||
Other revenues | 0 | 44 | ||
Total Regulated operations revenues | 35,132 | 66,993 | ||
Pipeline and Storage | Regulated gas transportation and storage revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 34,225 | 61,977 | ||
Pipeline and Storage | NGL revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | 441 | 1,493 | ||
Pipeline and Storage | Other revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue from contracts with customers | $ 466 | $ 3,479 |
Common Stock - Narratives (Deta
Common Stock - Narratives (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Apr. 08, 2021 | |
Class of Stock [Line Items] | |||
Sale of stock, number of shares | 4,100 | ||
Sale of stock, price per share (in USD per share) | $ 60.12 | $ 60.12 | |
Net proceeds from sale of stock | $ 238,400,000 | ||
Sale of stock, underwriters' discount | $ 8,300,000 | ||
Certain Funds Affiliated With Carl C. Icahn | |||
Class of Stock [Line Items] | |||
Sale of stock, number of shares | 2,300 | ||
Net proceeds from sale of stock | $ 140,000,000 | ||
Restricted Stock/Unit Plan, and Management Incentive Plan | |||
Class of Stock [Line Items] | |||
Common stock issued (in shares) | 54 | ||
Dividend Reinvestment and Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Common stock issued (in shares) | 46 | ||
Common stock issued, amount | $ 2,700,000 | ||
Equity Shelf Program | |||
Class of Stock [Line Items] | |||
Sale of stock, amount of common stock offered for sale | $ 500,000,000 | ||
Sale of stock, amount of common stock available for sale | $ 342,000,000 | $ 342,000,000 |
Common Stock - Activity of Equi
Common Stock - Activity of Equity Shelf Program (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | |
Class of Stock [Line Items] | |||||
Net proceeds | $ 239,337,000 | $ 453,495,000 | $ 247,670,000 | $ 618,146,000 | |
Equity Shelf Program | |||||
Class of Stock [Line Items] | |||||
Gross proceeds | $ 158,180,343 | ||||
Less: agent commissions | (1,581,803) | ||||
Net proceeds | $ 156,598,540 | ||||
Number of shares sold (in shares) | 2,302,407 | ||||
Weighted average price per share (in USD per share) | $ 68.70 |
Debt - Schedule of Carrying Amo
Debt - Schedule of Carrying Amounts and Estimated Fair Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less: current maturities | $ (41,907) | $ (44,557) |
Long-term debt, less current maturities | 4,577,600 | 4,403,299 |
Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, less current maturities | $ 3,497,977 | 3,251,296 |
Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.10% | |
Debentures | Notes, 4.05%, due 2032 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.05% | |
Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.875% | |
Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.80% | |
Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.70% | |
Debentures | Notes, 5.45%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.45% | |
Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.15% | |
Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.20% | |
Debentures | Notes, 3.18%, due 2051 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.18% | |
Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 8% | |
Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.92% | |
Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 6.76% | |
Debentures | Debentures Notes Five Point Eight Percentage, Due Two Thousand And Twenty Seven | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.80% | |
Secured Debt | Centuri secured term loan facility | Centuri | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,003,000 | |
Carrying Amount | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | (19,869) | (20,789) |
Less: current maturities | (41,907) | (44,557) |
Long-term debt, less current maturities | 4,577,600 | 4,403,299 |
Carrying Amount | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Less: current maturities | 0 | 0 |
Long-term debt, less current maturities | 3,497,977 | 3,251,296 |
Carrying Amount | Centuri | Centuri secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 19,212 | 81,955 |
Carrying Amount | Debentures | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | (32,893) | (29,471) |
Long-term debt | 3,299,607 | 3,003,029 |
Carrying Amount | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 125,000 | 125,000 |
Carrying Amount | Debentures | Notes, 4.05%, due 2032 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 600,000 | 600,000 |
Carrying Amount | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 250,000 | 250,000 |
Carrying Amount | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Carrying Amount | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Carrying Amount | Debentures | Notes, 5.45%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 0 |
Carrying Amount | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Carrying Amount | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 450,000 | 450,000 |
Carrying Amount | Debentures | Notes, 3.18%, due 2051 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Carrying Amount | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 75,000 | 75,000 |
Carrying Amount | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 25,000 | 25,000 |
Carrying Amount | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 7,500 | 7,500 |
Carrying Amount | Debentures | Debentures Notes Five Point Eight Percentage, Due Two Thousand And Twenty Seven | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Carrying Amount | Revolving credit facility and commercial paper | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 50,000 |
Carrying Amount | Industrial development revenue bonds | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Unamortized discount and debt issuance costs | (1,630) | (1,733) |
Long-term debt | 198,370 | 198,267 |
Carrying Amount | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Carrying Amount | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Carrying Amount | Industrial development revenue bonds | 2008 Series A, due 2038 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Carrying Amount | Industrial development revenue bonds | 2009 Series A, due 2039 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Carrying Amount | Secured Debt | Centuri secured term loan facility | Centuri | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 1,002,825 | 1,008,550 |
Carrying Amount | Other debt obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 119,362 | 126,844 |
Fair Value | Centuri | Centuri secured revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 19,297 | 82,315 |
Fair Value | Debentures | Notes, 6.1%, due 2041 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 125,376 | 113,184 |
Fair Value | Debentures | Notes, 4.05%, due 2032 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 552,972 | 527,052 |
Fair Value | Debentures | Notes, 4.875%, due 2043 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 210,990 | 195,703 |
Fair Value | Debentures | Notes, 3.8%, due 2046 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 229,644 | 209,169 |
Fair Value | Debentures | Notes, 3.7%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 282,960 | 275,043 |
Fair Value | Debentures | Notes, 5.45%, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 303,159 | 0 |
Fair Value | Debentures | Notes, 4.15%, due 2049 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 238,821 | 218,712 |
Fair Value | Debentures | Notes, 2.2%, due 2030 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 372,380 | 353,763 |
Fair Value | Debentures | Notes, 3.18%, due 2051 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 198,390 | 185,523 |
Fair Value | Debentures | 8% Series, due 2026 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 80,121 | 80,027 |
Fair Value | Debentures | Medium-term notes, 7.92% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 27,069 | 26,840 |
Fair Value | Debentures | Medium-term notes, 6.76% series, due 2027 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 7,803 | 7,662 |
Fair Value | Debentures | Debentures Notes Five Point Eight Percentage, Due Two Thousand And Twenty Seven | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 310,653 | 305,913 |
Fair Value | Revolving credit facility and commercial paper | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 50,000 |
Fair Value | Industrial development revenue bonds | Tax-exempt Series A, due 2028 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Fair Value | Industrial development revenue bonds | 2003 Series A, due 2038 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Fair Value | Industrial development revenue bonds | 2008 Series A, due 2038 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Fair Value | Industrial development revenue bonds | 2009 Series A, due 2039 | Southwest Gas Corporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Fair Value | Secured Debt | Centuri secured term loan facility | Centuri | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 997,832 | 995,852 |
Fair Value | Other debt obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 112,863 | $ 118,314 |
Debt - Narratives (Details)
Debt - Narratives (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||
Jan. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2021 | Mar. 31, 2023 | Apr. 30, 2023 | Sep. 26, 2022 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||||||
Short-term debt | $ 1,542,806,000 | $ 467,500,000 | |||||
Term Loan Facility Due December 30, 2022 | Loans Payable | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 364 days | ||||||
Term Loan Facility Due December 30, 2023 | Loans Payable | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under facility | 1,147,000,000 | ||||||
Debt instrument face amount | $ 1,600,000,000 | ||||||
Repayments of debt | 1,075,000,000 | 72,000,000 | |||||
$550 Million Term Loan Credit Agreement Due October 2024 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 550,000,000 | ||||||
Variable Rate Debt Agreements With Reference To LIBOR | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 0 | ||||||
Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Short-term debt | $ 225,000,000 | 450,000,000 | |||||
Southwest Gas Corporation | Notes, 5.45%, due 2028 | Debentures | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 300,000,000 | ||||||
Debt instrument interest rate | 5.45% | ||||||
Southwest Gas Corporation | $450 Million Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 450,000,000 | ||||||
Debt instrument, term | 364 days | ||||||
Southwest Gas Corporation | $250 Million Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 250,000,000 | ||||||
Southwest Gas Corporation | Variable Rate Debt Agreements With Reference To LIBOR | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | $ 0 | ||||||
Centuri | Centuri Secured Term Loan Facility And Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 1,545,000,000 | ||||||
Borrowings outstanding under facility | 1,022,000,000 | ||||||
Debt secured by assets | 2,400,000,000 | ||||||
Centuri | Centuri secured term loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 1,145,000,000 | ||||||
Centuri | Centuri secured term loan facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, gross | 1,003,000,000 | ||||||
$400 Million Credit Facility | Southwest Gas Corporation | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 400,000,000 | ||||||
Line of credit designated as long term debt | 150,000,000 | ||||||
Line of credit designated for working capital purposes | 250,000,000 | ||||||
Long-term debt outstanding | 0 | ||||||
Short-term debt | $ 0 | ||||||
$400 Million Credit Facility | Southwest Gas Corporation | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt, basis spread on variable rate | 1.125% | ||||||
$400 Million Credit Facility | Southwest Gas Corporation | Alternative base rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt, basis spread on variable rate | 0.125% | ||||||
Centuri secured revolving credit facility | Centuri | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 400,000,000 | ||||||
$300 Million Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 300,000,000 | ||||||
Borrowings outstanding under facility | $ 18,000,000 |
Other Comprehensive Income an_3
Other Comprehensive Income and Accumulated Other Comprehensive Income - Related Tax Effects Allocated to OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | $ 355 | $ 3,273 | $ 2,334 | $ 18,824 |
Other comprehensive income (loss), tax | (62) | (484) | (2,311) | (4,408) |
Total other comprehensive income, net of tax | 293 | $ 2,789 | $ 23 | $ 14,416 |
Other comprehensive income (loss) before reclassifications, net of tax | $ 97 | |||
Statutory income tax rate | 24% | 24% | 24% | 24% |
Southwest Gas Corporation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | $ 258 | $ 2,026 | $ 9,617 | $ 18,380 |
Other comprehensive income (loss), tax | (62) | (484) | (2,311) | (4,408) |
Total other comprehensive income, net of tax | 196 | 1,542 | 7,306 | 13,972 |
Pension plans other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | 258 | |||
Other comprehensive income (loss), tax | (62) | |||
Total other comprehensive income, net of tax | 196 | |||
Pension plans other comprehensive income (loss) | Southwest Gas Corporation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | 258 | 1,481 | 9,617 | 16,205 |
Other comprehensive income (loss), tax | (62) | (355) | (2,311) | (3,888) |
Total other comprehensive income, net of tax | 196 | 1,126 | 7,306 | 12,317 |
Amortization of prior service cost | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | 44 | |||
Other comprehensive income (loss), tax | (11) | |||
Total other comprehensive income, net of tax | 33 | |||
Amortization of prior service cost | Southwest Gas Corporation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before Tax | 44 | 44 | 175 | 763 |
Reclassification from AOCI, tax | (11) | (11) | (42) | (183) |
Reclassification from AOCI, net of tax | 33 | 33 | 133 | 580 |
Other comprehensive income (loss), before tax | 44 | |||
Other comprehensive income (loss), tax | (11) | |||
Total other comprehensive income, net of tax | 33 | |||
Amortization of net actuarial (gain)/loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | 333 | |||
Other comprehensive income (loss), tax | (80) | |||
Total other comprehensive income, net of tax | 253 | |||
Amortization of net actuarial (gain)/loss | Southwest Gas Corporation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before Tax | 333 | 8,705 | 26,446 | 42,153 |
Reclassification from AOCI, tax | (80) | (2,089) | (6,348) | (10,117) |
Reclassification from AOCI, net of tax | 253 | 6,616 | 20,098 | 32,036 |
Other comprehensive income (loss), before tax | 333 | |||
Other comprehensive income (loss), tax | (80) | |||
Total other comprehensive income, net of tax | 253 | |||
Other comprehensive income (loss) before reclassifications, before tax | 4,079 | 59,176 | ||
Other comprehensive income (loss) before reclassifications, tax | (980) | (14,202) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 3,099 | 44,974 | ||
Regulatory adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss), before tax | (119) | |||
Other comprehensive income (loss), tax | 29 | |||
Total other comprehensive income, net of tax | (90) | |||
Regulatory adjustment | Southwest Gas Corporation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before Tax | (119) | (7,268) | (21,083) | (85,887) |
Reclassification from AOCI, tax | 29 | 1,745 | 5,059 | 20,614 |
Reclassification from AOCI, net of tax | (90) | (5,523) | (16,024) | (65,273) |
Other comprehensive income (loss), before tax | (119) | |||
Other comprehensive income (loss), tax | 29 | |||
Total other comprehensive income, net of tax | (90) | |||
FSIRS | Southwest Gas Corporation | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from AOCI, before Tax | 0 | 545 | 0 | 2,175 |
Reclassification from AOCI, tax | 0 | (129) | 0 | (520) |
Reclassification from AOCI, net of tax | 0 | 416 | 0 | 1,655 |
Other comprehensive income (loss), before tax | 0 | 545 | 0 | 2,175 |
Other comprehensive income (loss), tax | 0 | (129) | 0 | (520) |
Total other comprehensive income, net of tax | 0 | 416 | 0 | 1,655 |
Foreign currency items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other comprehensive income (loss) before reclassifications, before tax | 97 | 1,247 | (7,283) | 444 |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of tax | $ 97 | $ 1,247 | $ (7,283) | $ 444 |
Other Comprehensive Income an_4
Other Comprehensive Income and Accumulated Other Comprehensive Income - AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, attributable to parent | $ 3,058,759 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 97 | |||
Other comprehensive income (loss), before tax | 355 | $ 3,273 | $ 2,334 | $ 18,824 |
Other comprehensive income (loss), tax | (62) | (484) | (2,311) | (4,408) |
Total other comprehensive income, net of tax | 293 | $ 2,789 | 23 | 14,416 |
Ending balance, attributable to parent | $ 3,296,156 | 3,296,156 | ||
Effective income tax rate | 37.60% | 19.90% | ||
Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 2,611,534 | |||
Beginning balance, attributable to parent | $ 2,569,175 | |||
Other comprehensive income (loss), before tax | 258 | $ 2,026 | 9,617 | 18,380 |
Other comprehensive income (loss), tax | (62) | (484) | (2,311) | (4,408) |
Total other comprehensive income, net of tax | 196 | 1,542 | 7,306 | 13,972 |
Ending balance | 2,666,130 | $ 2,611,534 | 2,666,130 | 2,611,534 |
Ending balance, attributable to parent | $ 2,666,130 | 2,666,130 | ||
Effective income tax rate | 18.30% | 20.60% | ||
Defined Benefit Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, before tax | $ (50,342) | |||
Beginning balance, tax | 12,081 | |||
Beginning balance | (38,261) | |||
Other comprehensive income (loss), before tax | 258 | |||
Other comprehensive income (loss), tax | (62) | |||
Total other comprehensive income, net of tax | 196 | |||
Ending balance, before tax | (50,084) | (50,084) | ||
Ending balance, tax | 12,019 | 12,019 | ||
Ending balance | (38,065) | (38,065) | ||
Defined Benefit Plans | Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, attributable to parent, before tax | (50,342) | |||
Beginning balance, attributable to parent, tax | 12,081 | |||
Beginning balance, attributable to parent | (38,261) | |||
Other comprehensive income (loss), before tax | 258 | $ 1,481 | 9,617 | 16,205 |
Other comprehensive income (loss), tax | (62) | (355) | (2,311) | (3,888) |
Total other comprehensive income, net of tax | 196 | 1,126 | 7,306 | 12,317 |
Ending balance, attributable to parent, before tax | (50,084) | (50,084) | ||
Ending balance, attributable to parent, tax | 12,019 | 12,019 | ||
Ending balance, attributable to parent | (38,065) | (38,065) | ||
Amortization of prior service cost | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss), before tax | 44 | |||
Other comprehensive income (loss), tax | (11) | |||
Total other comprehensive income, net of tax | 33 | |||
Amortization of prior service cost | Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification from AOCI, before Tax | 44 | 44 | 175 | 763 |
Reclassification from AOCI, tax | (11) | (11) | (42) | (183) |
Reclassification from AOCI, net of tax | 33 | 33 | 133 | 580 |
Other comprehensive income (loss), before tax | 44 | |||
Other comprehensive income (loss), tax | (11) | |||
Total other comprehensive income, net of tax | 33 | |||
Amortization of net actuarial loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss), before tax | 333 | |||
Other comprehensive income (loss), tax | (80) | |||
Total other comprehensive income, net of tax | 253 | |||
Amortization of net actuarial loss | Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications, before tax | 4,079 | 59,176 | ||
Other comprehensive income (loss) before reclassifications, net of tax | 3,099 | 44,974 | ||
Reclassification from AOCI, before Tax | 333 | 8,705 | 26,446 | 42,153 |
Reclassification from AOCI, tax | (80) | (2,089) | (6,348) | (10,117) |
Reclassification from AOCI, net of tax | 253 | 6,616 | 20,098 | 32,036 |
Other comprehensive income (loss), before tax | 333 | |||
Other comprehensive income (loss), tax | (80) | |||
Total other comprehensive income, net of tax | 253 | |||
Regulatory adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss), before tax | (119) | |||
Other comprehensive income (loss), tax | 29 | |||
Total other comprehensive income, net of tax | (90) | |||
Regulatory adjustment | Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification from AOCI, before Tax | (119) | (7,268) | (21,083) | (85,887) |
Reclassification from AOCI, tax | 29 | 1,745 | 5,059 | 20,614 |
Reclassification from AOCI, net of tax | (90) | (5,523) | (16,024) | (65,273) |
Other comprehensive income (loss), before tax | (119) | |||
Other comprehensive income (loss), tax | 29 | |||
Total other comprehensive income, net of tax | (90) | |||
FSIRS | Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification from AOCI, before Tax | 0 | 545 | 0 | 2,175 |
Reclassification from AOCI, tax | 0 | (129) | 0 | (520) |
Reclassification from AOCI, net of tax | 0 | 416 | 0 | 1,655 |
Other comprehensive income (loss), before tax | 0 | 545 | 0 | 2,175 |
Other comprehensive income (loss), tax | 0 | (129) | 0 | (520) |
Total other comprehensive income, net of tax | 0 | 416 | 0 | 1,655 |
Foreign Currency Items | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance, before tax | (5,981) | |||
Beginning balance, tax | 0 | |||
Beginning balance | (5,981) | |||
Other comprehensive income (loss) before reclassifications, before tax | 97 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 97 | |||
Ending balance, before tax | (5,884) | (5,884) | ||
Ending balance, tax | 0 | 0 | ||
Ending balance | (5,884) | (5,884) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other comprehensive income (loss) before reclassifications, net of tax | 293 | |||
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (44,242) | (46,761) | (43,972) | |
Ending balance | (43,949) | (43,972) | (43,949) | (43,972) |
AOCI Attributable to Parent | Southwest Gas Corporation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (38,261) | (46,913) | (45,371) | |
Ending balance | $ (38,065) | $ (45,371) | $ (38,065) | $ (45,371) |
Other Comprehensive Income an_5
Other Comprehensive Income and Accumulated Other Comprehensive Income - Amounts Recognized Before Tax, Defined Benefit Plans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Net actuarial loss | $ (359,780) | $ (360,113) |
Prior service cost | (1,309) | (1,353) |
Less: amount recognized in regulatory assets | 311,005 | 311,124 |
Recognized in AOCI | $ (50,084) | $ (50,342) |
Segment Information - Narrative
Segment Information - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 USD ($) | Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 3 | ||||
Segment Reporting Information [Line Items] | |||||
Interest expense | $ 77,334 | $ 48,363 | $ 271,721 | $ 143,597 | |
Corporate and administrative | |||||
Segment Reporting Information [Line Items] | |||||
Other costs | 35,000 | ||||
Corporate and administrative | MountainWest Acquisition Loan | |||||
Segment Reporting Information [Line Items] | |||||
Interest expense | $ 12,000 | $ 47,000 | |||
Debt issuance costs written off | $ 2,500 | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations | MountainWest | |||||
Segment Reporting Information [Line Items] | |||||
Disposition consideration adjustment | 28,400 | ||||
Loss on disposal adjustment | 21,000 | ||||
Accrued post-closing payment | $ 7,400 |
Segment Information - Accounts
Segment Information - Accounts Receivable Not Eliminated During Consolidation (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Centuri | ||
Segment Reporting Information [Line Items] | ||
Centuri accounts receivable for services provided to Southwest | $ 14,966 | $ 18,067 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,603,304 | $ 1,267,409 | $ 5,295,904 | $ 4,061,953 |
Segment net income (loss) | 45,911 | 96,178 | (253,557) | 179,664 |
Revenues from external customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,574,500 | 1,239,076 | 5,160,775 | 3,955,477 |
Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 28,804 | 28,333 | 135,129 | 106,476 |
Segment net income (loss) | (60,625) | (9,061) | (127,566) | (35,274) |
Natural Gas Distribution | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 914,879 | 676,539 | 2,173,409 | 1,676,397 |
Segment net income (loss) | 134,696 | 111,795 | 177,281 | 180,215 |
Natural Gas Distribution | Revenues from external customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 914,879 | 676,539 | 2,173,409 | 1,676,397 |
Natural Gas Distribution | Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Utility Infrastructure Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 653,293 | 523,877 | 2,889,743 | 2,318,563 |
Segment net income (loss) | (11,872) | (23,486) | 13,679 | 17,793 |
Utility Infrastructure Services | Revenues from external customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 624,489 | 495,544 | 2,754,614 | 2,212,087 |
Utility Infrastructure Services | Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 28,804 | 28,333 | 135,129 | 106,476 |
Pipeline and Storage | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 35,132 | 66,993 | 232,752 | 66,993 |
Segment net income (loss) | (16,288) | 16,930 | (316,951) | 16,930 |
Pipeline and Storage | Revenues from external customers | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 35,132 | 66,993 | 232,752 | 66,993 |
Pipeline and Storage | Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Dispositions (Details)
Dispositions (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - MountainWest - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Sep. 22, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Ownership percentage disposed | 100% | ||
Discontinued operation, consideration | $ 1,500 | ||
Transition services agreement, period | 6 months | ||
Loss on disposal adjustment | $ 21 | ||
Accrued post-closing payment | 7.4 | ||
Loss contingency, damages sought period | 4 years | ||
Loss contingency, damages sought value (up to) | $ 75 | ||
Disposition consideration adjustment | $ 28.4 |
Uncategorized Items - swx-20230
Label | Element | Value |
Cash And Cash Equivalents Included In Current Assets Held For Sale | swx_CashAndCashEquivalentsIncludedInCurrentAssetsHeldForSale | $ 23,803,000 |
Cash And Cash Equivalents Included In Current Assets Held For Sale | swx_CashAndCashEquivalentsIncludedInCurrentAssetsHeldForSale | 0 |
Cash And Cash Equivalents Included In Current Assets Held For Sale | swx_CashAndCashEquivalentsIncludedInCurrentAssetsHeldForSale | $ 0 |