Page 1

Southwest Gas HOLDINGS Southwest Gas Holdings , Inc. Reports Third Quarter 2021 Results November 9 , 2021 Third Quarter Natural Gas Operating Margin Increased $ 18 Million and Increased $ 72 Million Twelve Months to Date Third Quarter Utility Infrastructure Revenues Increased $ 52.5 million and Increased $ 187.8 Million Twelve Months to Date Acquisition of Riggs Distler Completed -- Expected To Deliver Greater Scale , Increased Profit Margins , and Growth Opportunities LAS VEGAS , Nov. 9 , 2021 / PRNewswire / -- Southwest Gas Holdings , Inc. ( NYSE : SWX ) reported a consolidated loss of $ 0.19 per diluted share and adjusted consolidated earnings of $ 0.05 per diluted share for the third quarter of 2021 , compared to consolidated and adjusted consolidated earnings of $ 0.32 per diluted share for the third quarter of 2020. Consolidated net loss and adjusted net income were $ 11.6 million and $ 3.1 million , respectively , for the third quarter of 2021 , compared to consolidated net income and adjusted consolidated net income of $ 18.3 million for the third quarter of 2020 . The adjustments for the third quarter of 2021 consist of a $ 5 million ( $ 0.06 per share ) legal reserve at the utility and Centuri's transaction costs for the Riggs Distler acquisition of $ 13 million ( $ 0.18 per share ) . The natural gas segment had a net loss of $ 27.5 million and an adjusted net loss of $ 23.7 million for the third quarter of 2021 compared to a net loss and adjusted net loss of $ 16 million for the third quarter of 2020. The current quarter does not reflect any change in company - owned life insurance ( " COLI " ) cash surrender values while the prior - year quarter reflects a $ 4.5 million increase . The utility infrastructure services segment delivered net income of $ 18.5 million and adjusted net income of $ 29.5 million in the third quarter of 2021 , compared to net income and adjusted net income of $ 34.9 million in the third quarter of 2020. Due to the seasonal nature of the Company's businesses , results for quarterly periods are not generally indicative of earnings for a complete twelve - month period . Commenting on the performance and outlook of Southwest Gas Holdings , John P. Hester , President and Chief Executive Officer , said : " In the third quarter , we continued executing on our strategy to create a higher performing , stronger company , while taking actions to enhance our financial flexibility and capital allocation to pursue value - creating , accretive opportunities . While our financial results for the reported quarter reflect one - time transaction costs and other non - recurring expenses , we are excited about the longer - term strategic and financial opportunities opening up to our company . Drawn by robust economies , job growth , attractive business climates , and excellent quality of life , thousands of residents and businesses like Intel , Lucid Motors , and Taiwan Semiconductor have been moving into Southwest's service territories of Arizona , Nevada , and California . We are well positioned for meaningful earnings growth in 2022 as we execute our longer - term strategy and focus on providing growing returns to our investors , excellent service to our customers , and opportunities to our employees . " " With the acquisition of Riggs Distler , we believe Centuri is well positioned for continued growth and significant upside as investments in energy infrastructure are made nationwide to address the needs of a low - carbon energy future . In early October , we also announced an agreement to acquire Questar Pipelines , a compelling collection of assets that aligns with our long - term value creation goals . The combination of FERC - regulated pipelines and accompanying storage facilities will significantly increase and expand our regulated business mix , as it provides a robust stream of steady earnings and cash flows . We look forward to benefiting from the extremely attractive energy transition opportunities in RNG / RSG , hydrogen and CO2 transportation following closing the transaction . We plan to leverage the strong portfolio of assets we've built to continue driving an attractive , risk - adjusted total return for our stockholders , based on earnings growth and a meaningful dividend to increase long - term stockholder value . " For the twelve months ended September 30 , 2021 , consolidated net income was $ 234.4 million , or $ 4.02 per diluted share , and adjusted consolidated net income was $ 249.8 million , or $ 4.28 per diluted share , compared to consolidated net income and adjusted consolidated net income of $ 220.5 million , or $ 3.97 per diluted share , for the twelve - month period ended September 30 , 2020. The current twelve - month period includes a $ 14 million , or $ 0.24 per share , increase in the cash surrender values of COLI policies , while the prior - year period included COLI - related income of $ 7.2 million , or $ 0.13 per share . Natural gas segment net income and adjusted net income were $ 182.1 million and $ 185.9 million , respectively , in the current twelve - month period compared to net income and adjusted net income of $ 156 million in the prior - year period . Utility infrastructure services segment net income and adjusted net income were $ 56.7 million and $ 68.4 million , respectively , in the current twelve - month period compared to net income and adjusted net income of $ 66.6 million in the prior - year period . The adjustments for the twelve months ended September 30 , 2021 consist of a $ 5 million ( $ 0.07 per share ) legal reserve at the utility and Centuri's cumulative transaction costs for the Riggs Distler acquisition of $ 14 million ( $ 0.18 per share ) . Third Quarter Natural Gas Operations Segment Results Operating margin increased $ 18 million compared to the prior - year quarter . Approximately $ 2 million of incremental margin was attributable to customer growth from 37,000 first - time meter sets during the last twelve months . Rate relief in Arizona , Nevada , and California added approximately $ 13 million of margin . Also contributing to the increase were late fees that were $ 1.5 million greater in the current quarter due to lifting the moratorium on such fees that had been in place since March 2020. Amounts collected from and returned to customers associated with regulatory account balances , as well as differences in miscellaneous revenue and margin from customers outside the decoupling mechanisms , also impacted the variance between quarters . Operations and maintenance expense increased $ 18.5 million compared to the prior - year quarter reflecting a $ 5 million legal reserve , a $ 1.7 million