Slides
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EARNINGS CONFERENCE CALL Full Year 2025 Results F E B R U A R Y 2 5 , 2 0 2 6
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Safe Harbor Statement F E B R U A R Y 2 5 , 2 0 2 6 02 Forward-Looking Statements Unless context otherwise requires, in this presentation, references to “we”, “us” and “our” are to Southwest Gas Holdings, Inc. (NYSE: SWX) (“Southwest Gas Holdings” or the “Company” or “SWX”) together with its current consolidated subsidiaries, which include, among others, Southwest Gas Corporation ("Southwest Gas", “SWG”, “Utility” or “Natural Gas Distribution” segment), Great Basin Gas Transmission Company (“Great Basin”, “GB”, or “GBGTC”), and Corporate and Administrative (“HoldCo”). This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding the Company and the Company's expectations or intentions regarding the future and underlying assumptions. These forward-looking statements can often be identified by the use of words such as "will", "predict", "continue", "forecast", "expect", "believe", "anticipate", "outlook", "could", "target", "project", "intend", "plan", “pursue”, "seek", "estimate", "should", "may", “potential”, and "assume", as well as variations of such words and similar expressions referring to the future, and include (without limitation) statements regarding our expectations for our natural gas operations, estimated future capital expenditures, projected rate base growth, O&M per customer expectations, our 2026 financial guidance and expected value drivers, 2026 – 2030 financial guidance and expected value drivers, 2026 financing plan, credit metric targets, expectations with respect to future dividends, estimated timing of rate case filings, approvals and effectiveness of such rates, the potential 2028 Great Basin Expansion Project and the associated projected demand, capacity, capital expenditures, and investment opportunity, and the future performance of the Company, Southwest Gas Corporation, and Great Basin. A number of important factors affecting the business and financial results could cause actual results to differ materially from those stated in the forward-looking statements. These factors include, but are not limited to, the timing and amount of rate relief, changes in rate design, customer growth rates, the effects of regulation/deregulation, the timing and magnitude of utility optimization opportunities, tax reform and related regulatory decisions, the potential for, and the impact of, a credit rating downgrade, future earnings trends, inflation, increasing interest rates, sufficiency of labor markets and similar resources, seasonal patterns, current and future litigation, the costs and effect of stockholder activism, regulatory approvals for the 2028 Great Basin Expansion Project along with negotiation and execution of binding transportation service agreements and capital construction costs, and the impacts of stock market volatility. In addition, the Company can provide no assurance that its discussions about future operating margin, operating income, COLI earnings, interest expense, and capital expenditures of the natural gas distribution segment will occur. The Company does not assume any obligation to update the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise. Forward-looking statements are based on assumptions which we believe are reasonable, based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions are subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, those discussed under the heading “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Quantitative and Qualitative Disclosure about Market Risk” in the Company’s most recent Annual Report on Form 10-K and in the Company’s and Southwest Gas Corporation’s current and periodic reports, including our Quarterly Reports on Form 10-Q, filed from time to time with the SEC, and other reports that we file with the SEC from time to time. New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. The statements in this presentation are made as of the date hereof, even if subsequently made available on our website or otherwise. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
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Non-GAAP Measures 03 This presentation contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP measures include (i) Southwest Gas Holdings adjusted earnings (loss) per share, (ii) Southwest Gas Holdings adjusted net income (loss), (iii) Southwest Gas Holdings FFO to debt ratio, (iv) Corporate and Administrative adjusted earnings (loss) per share, (v) Natural Gas Distribution segment adjusted earnings (loss) per share, (vi) Natural Gas Distribution segment adjusted net income, (vii) Natural Gas Distribution FFO to debt ratio, and (viii) Natural Gas Distribution segment operating margin. Management uses these non-GAAP measures internally to evaluate performance and in making financial and operational decisions. Management believes that its presentation of these measures provides investors greater transparency with respect to its results of operations and that these measures are useful for a period-to-period comparison of results. Management also believes that providing these non-GAAP financial measures helps investors evaluate the Company’s operating performance, profitability, and business trends in a way that is consistent with how management evaluates such performance. We do not provide a reconciliation of forward-looking non-GAAP measures to the corresponding forward-looking GAAP measures due to our inability to project special charges and certain expenses. F E B R U A R Y 2 5 , 2 0 2 6
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Speakers and Agenda Karen Haller PRESIDENT AND CEO SOUTHWEST GAS HOLDINGS Justin Brown PRESIDENT SOUTHWEST GAS CORPORATION Justin Forsberg CFO AND TREASURER SOUTHWEST GAS HOLDINGS PRESENTATION AGENDA Strategic and Business Update Regulatory and Economic Update Financial Update Guidance and Outlook
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Key Messages 05 A PURE PLAY FULLY REGULATED NATURAL GAS BUSINESS POSITIONED FOR GROWTH AND COMMITTED TO DELIVERING LONG-TERM VALUE • Safe, reliable, and affordable natural gas service anchored by a strong safety culture, pursuit of operational excellence, and commitment to continuous improvement • Constructive regulatory compact that supports predictable, long-term organic rate base growth and timely recovery of prudent investments • Exceptional balance sheet and financial flexibility creating optionality to execute strategic opportunities • Strong and predictable earnings growth, improving ROEs, and stable cash flows underpinned by growth opportunities, constructive regulatory outcomes, and disciplined cost management and execution • Competitive and sustainable dividend reflecting confidence in long-term cash generation and commitment to delivering stockholder returns • Partnership-driven approach with stakeholders to advance emerging energy technologies and innovative natural gas solutions 2025 Key Results Initiated 2026 and Long-term EPS Guidance $4.17 - $4.32 ($ per share) 2026 SWX adj. EPS from continuing ops 12.0% - 14.0% 2025-2030 SWX adj. EPS growth $3.65 ($ per share) 2025 SWX adj. EPS from continuing ops1 $283.9 million 2025 SWG adj. net income1 $855 million 2025 SWG capital expenditures2 Notes: 1. Adjusted SWX EPS from continuing operations and adjusted SWG net income for the twelve months ended December 31, 2025, adjusted for state income tax apportionment associated with certain one-time events. See “Non-GAAP Measures” for more information and for full reconciliations of our non-GAAP financial measures 2. Includes approximately $15 million that was recorded in Deferred charges and other assets F E B R U A R Y 2 5 , 2 0 2 6
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SWX’s Strategic Priorities 06 COMPLETED 2025 STRATEGIC PRIORITIES 2025 Utility and Regulatory Strategy AZ Rate Case Approval 1Q 2025 GBGTC Rate Case Approval 1Q 2025 NV Senate Bill 417 (“SB 417”) Alternative Ratemaking Approval 2Q 2025 AZ SIM1 Capital Tracker Approval 3Q 2025 NV Triennial Resource Planning Filing 3Q 2025 Achieved Utility 2025 Guidance Metrics FY 2025 Potential Great Basin Expansion Opportunity Closed 2028 Expansion Project Binding Open Season 2Q 2025 Execution of Precedent Agreements with Shippers 4Q 2025 2025 Financing Plan2 SWX $300M Revolving Credit Facility Extension 2Q 2025 SWX $550M Term Loan Extension and Payoff 3Q 2025 No Equity Issued FY 2025 Centuri3 Separation Completed Full Separation 3Q 2025 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Notes: Checkmark denotes items that have been completed 1. System Integrity Mechanism (“SIM”) 2. 2025 Financing Plan originally included less than $100 million equity issuance under At-the-Market Program, proceeds from follow- on offerings of CTRI common stock eliminated 2025 equity needs, paid off the term loan and the revolving credit facility in full 3. Centuri Holdings Inc. (“Centuri” or “CTRI”) 4. Federal Energy Regulatory Commission (“FERC”) INITIATING 2026 STRATEGIC PRIORITIES 2026 Utility and Regulatory Strategy CA Rate Case Approval 1Q 2026 AZ Rate Case Filing (requesting formula rates) 1Q 2026 AZ SIM Filing ($50 million capital tracker) 1Q 2026 NV Rate Case Filing 1Q 2026 NV Triennial Resource Planning Approval 2Q 2026 NV Rate Case Approval 4Q 2026 Potential Great Basin Expansion Opportunity Receive FERC4 Pre-File Approval 1Q 2026 File FERC CPCN5 4Q 2026 Environmental Assessment 1Q – 4Q 2026 2026 Financing Plan Extension of Existing Shelf Registration 4Q 2026 SWG Bond Issuance 2H 2026 No Anticipated Equity Issuances6 1Q – 4Q 2026 ✓ ✓ 5. Certificate of Public Convenience and Necessity (“CPCN”) 6. Excluding equity issuances via Dividend Reinvestment Plan, SWX expects to fully fund dividend with no SWG support, ~$200 million equity infusion from SWX to SWG expected F E B R U A R Y 2 5 , 2 0 2 6
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Delivering Strong Results 07 Adj. net income2 of ~$284 million, a $22.8 million improvement over 20243; beating utility net income guidance range of $265 - $275 million ~37,000 new meter sets added during the last 12 months (1.6% customer growth rate over the same period) AZ regulatory strategy: ~$80.2 million revenue increase approved in March 2025, SIM approved in July 2025, rate case filing expected February 2026 requesting formula rates NV regulatory strategy: SB 417 signed in June 2025, accelerated return of PGA4 approved July 2025, resource planning filing September 2025, rate case filing expected March 2026 CA regulatory strategy: CA rates effective January 1, 20265 Operations and maintenance (“O&M”) expense increased by 1.9%6 in 2025 compared with the same period in 2024, in line with our guidance Great Basin executed binding precedent agreements for natural gas expansion in Northern NV Best in Customer Satisfaction with Residential Natural Gas Service in the West among Large Utilities 6 years in a row.7 Completed the full separation of CTRI with four follow-on offerings and three concurrent private placements in 2025 that generated ~$1.35 billion net1 sales proceeds On September 22, 2025, S&P upgraded SWX and Southwest Gas credit ratings to BBB+ (previously BBB- and BBB respectively) No equity issued in 2025; finished the year with nearly $600 million in consolidated cash and nearly $1.3 billion in available liquidity Corporate and administrative expenses for the year reflects ~$23 million lower interest expense related to lower borrowings outstanding compared to 2024. ~$710 million of debt repaid with CTRI proceeds. Notes: 1. Net of transaction costs 2. Adjusted Southwest Gas net income for the twelve months ended December 31, 2025, adjusts for state income tax apportionment associated with certain one-time events. See “Non-GAAP Measures” for more information and for full reconciliations of our non-GAAP financial measures 3. Historically, Natural Gas Distribution segment operating results have corresponded to the operating results of Southwest Gas Corporation. However, for 2024 the amounts reported differ from Southwest Gas Corporation due to the revision described in the 2025 annual report on Form 10-K 4. Purchased Gas Cost Adjustment (“PGA”) 5. Pending final California Public Utilities Commission (“CPUC”) approval 6. Excludes the impact of incentive compensation expense > target 7. For J.D. Power 2025 award information, visit jdpower.com/awards F E B R U A R Y 2 5 , 2 0 2 6
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Regulatory and Economic Update
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Opportunities for Alternative Ratemaking in Nevada and Arizona 09 Arizona and Nevada Anticipated Rate Case Roadmap File general rate case Expected March 2026 File general rate case Expected February 2026 NV AZ 1Q’26 2Q’26 3Q’26 Rates effective – 210-day statutory process 4Q’26 General rate case completion expected ~13-15 months after filing Potential alternative ratemaking opportunity following approval of GRC 2027 AZ Policy Statement In December of 2024, the ACC voted to adopt a Policy Statement allowing regulated utilities to propose a formula rate plan in future rate cases for the ACC’s consideration NV SB 417 In June of 2025, Governor Lombardo signed Senate Bill 417 (“SB 417”), allowing alternative ratemaking plans in Nevada Potential formula rate opportunity following approval of GRC 2028 * Formal rulemaking workshops to implement SB 417 began in Nevada in October 2025 Defined terms: GRC: General Rate Case ACC: Arizona Corporation Commission F E B R U A R Y 2 5 , 2 0 2 6
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Anticipated AZ Rate Case 10 Anticipated Arizona Rate Case Detail Southwest Gas expects to file its general rate case with the ACC in February 2026, with new rates anticipated to go in effect in April 2027. Expected SWG Proposal Equity Ratio 50.08% ROE 10.25% Fair Value Return on Rate Base 0.20% Rate Base $3.9 billion (~$705 million increase) Post-Test Year1 (“PTY”) Rate Base Adjustments 12 months (~$366 million) Revenue Increase ~$101 million Expected Bill Impact ~$5.00 / month Rates Effective April 1, 2027 Notes: 1. Test year date: twelve months ended 11/30/2025; Post-test-year date: twelve months ended 11/30/2026 F E B R U A R Y 2 5 , 2 0 2 6
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11 5-Year SWG Capital Plan 5-Year Rate Base Growth1 (in billions) $6.3 billion five-year capital plan supports rate base growth through 2030 with 73% of investment expected at SWG and 27% expected at Great Basin 2026 Capital Plan1,2 (in millions) General Plant $175 New Business $275 Safety $475 2028 GB Expansion Project $325 Total $1,250 $6.7 $7.3 $9.4 $1.8 2025A 2026E 2027E 2028E 2029E 2030E Southwest Gas 2028 GB Expansion Project Incremental Rate Base4 $11.2 Notes: May not add due to rounding 1. Amounts broken out below are approximate and could change based on business needs and underlying project timing 2. Includes approximately $30 million that would be recorded in Deferred charges and other assets 3. Includes approximately $190 million that would be recorded in deferred charges and other assets 4. Great Basin’s rate case approved in 2025 included $191 million of total rate base at the entity 5. 2020A – 2025A historical 5-year rate base CAGR 6. 2025A – 2030E 5-year rate base CAGR 5-Year Capital Plan1,3 (in billions) General Plant $0.9 New Business $1.4 Safety $2.3 2028 GB Expansion $1.7 $6.3B 2026 - 2030 8.3% Historical 5-year Rate Base CAGR5 9.5% – 11.5% Expected 5-year Rate Base CAGR6 F E B R U A R Y 2 5 , 2 0 2 6
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12 2028 Great Basin Expansion Project Overview Notes: 2028 Great Basin Expansion Press Release 1. Million cubic feet (“mcf”) 2. Expected Allowance for Funds Used During Construction (“AFUDC”) rate: ~7% 3. National Environmental Policy Act (“NEPA”) Expected Project Schedule 2026 2027 2028 FERC CPCN Application Perform Environmental & Cultural Field Surveys FERC NEPA3 Environmental Review Process CPCN Approval Expected Construction Target In-service Expansion Project Highlights: • Expansion and upsizing of current pipeline in or adjacent to current pipeline right of way • Expansion driven by growing demand in Northern Nevada • Executed binding precedent agreements in December 2025 • Open season results & potential impacts: • Incremental capacity subscribed: nearly 800mcf1/day • Estimated incremental capital investment: ~$1.7B • Estimated incremental margin: ~$215M – ~$245M annually (following in-service) Anticipated Capital Shaping & Financing 2026E 2027E 2028E ~20% ~25% ~55% Capital expenditures for the 2028 Expansion Project are expected to be deployed over time. IDAHO Northwest Pipeline NEVADA OREGON CALIFORNIA Ruby Pipeline Existing GBGTC Pipeline Existing GBGTC Compressor StationLake Tahoe Proposed Expansion Route (~90% within existing right of way) Proposed GBGTC Compressor Station LNG Plant Interconnecting Pipelines Reno Carson City Accrual of AFUDC2 expected throughout the construction period Targeted 50 / 50 debt to equity ratio Debt funded by SWG bond issuances Equity needs funded by mix of modest equity issuances utilizing SWX ATM and leverage capacity $1.7 billion 4Q 4Q 4Q F E B R U A R Y 2 5 , 2 0 2 6
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Financial Update
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$3.07 $3.65 CONTINUING OPS 2024 SWG HOLDCO CONTINUING OPS 2025 FAVORABLE UNFAVORABLE 2025 SWX Adjusted EPS Walk 14 CONTINUING OPERATIONS ADJUSTED EARNINGS PER DILUTED SHARE RELATED TO CONTINUING OPS1 FINANCIAL HIGHLIGHTS • SWG benefited from rate relief and customer growth partially offset by modestly higher O&M, higher D&A3, higher interest expense, and lower other income • HoldCo earnings impacted by lower overall operating expenses and interest expense, due to repayment of 100% of previous HoldCo debt – previously amounted to ~$710M • Discontinued operations contributed an additional $2.83 per diluted share to consolidated GAAP earnings per diluted share, the most significant portion of which constitutes the net gain on this sale of ~$260 million, which is offset by the year-over-year changes in Centuri’s operations. On September 5, 2025, the Company completed the sale of all of its remaining shares of Centuri stock. The Company’s sale represents an exit from Centuri and qualifies for reporting as discontinued operations. See slide 32 in the appendix for consolidated earnings, including discontinued operations4 Notes: Amounts in chart may not add due to rounding 1. Adjusted SWX income and adjusted EPS for the twelve months ended December 31, 2025, adjusts for state income tax apportionment associated with certain one-time events. See “Non-GAAP Measures” for more information and for full reconciliations of our non-GAAP financial measures 2. Historically, Natural Gas Distribution segment operating results have corresponded to the operating results of Southwest Gas Corporation. However, for 2024 the amounts reported differ from Southwest Gas Corporation due to the revision described in the 2025 annual report on Form 10-K $0.30 $0.28 2 3. Depreciation & Amortization (“D&A”) 4. Discontinued operations include the impacts of noncontrolling interests F E B R U A R Y 2 5 , 2 0 2 6
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$261.2 $283.9 $119.6 ($16.8) ($27.6) ($1.9) ($19.4) ($5.1) ($26.0) 2024 OPERATING MARGIN O&M D&A OTHER INCOME NET INTEREST DEDUCTIONS OTHER INCOME TAX 2025 Adjusted Net Income1 ($ in millions) Favorable Unfavorable 2025 SWG Adjusted Net Income 15 Operating Margin • $95.2 million – Combined rate relief (primarily in Arizona) • $11.5 million – Customer growth • $8.0 million – Increases in recovery/return offset in D&A • $5.9 million – Variable interest expense adj. mechanism in NV associated with IDRB3 offset in interest expense Year-over-year net income key drivers include: (parentheses indicate unfavorablenet income drivers) O&M • ($5.8 million) – Increases in incentive compensation costs greater than target • ($4.8 million) – Higher outside services costs • ($4.4 million) – Higher cloud-computing costs • ($4.3 million) – Higher employee-related labor costs • Partially offset by reductions in leak survey and line locating expenses Favorable impact Unfavorable impact Notes: Chart may not add due to rounding 1. Adjusted Natural Gas Distribution net income for the twelve months ended December 31, 2025, adjusts for state income tax apportionment associated with certain one-time events. See “Non-GAAP Measures” for more information and for full reconciliations of our non-GAAP financial measures 2. Historically, Natural Gas Distribution segment operating results have corresponded to the operating results of Southwest Gas Corporation. However, for 2024 the amounts reported differ from Southwest Gas Corporation due to the revision described in the 2025 annual report on Form 10-K 3. Industrial Development Revenue Bonds (“IDRB”) 4. Increase in plant was attributable to pipeline capacity reinforcement work, franchise requirements, scheduled pipe replacement activities, and new infrastructure 5. Company Owned Life Insurance (“COLI”) • Increase in depreciation reflective of a 6% increase in gas plant in service in 20254 • ($8.0 million) – Higher amortization related to regulatory account balances offset in margin D&A • ($12.6 million) – Decline in interest income related to carrying charges associated with the elevated deferred PGA balance • Partially offset by the combined impacts of a $1.9 million increase in values associated with COLI5 policies, $1.6 million gain on sale of certain misc. assets, and timing differences in contributions to SWG Foundation in 2025 compared to 2024 Other Income • Driven by amounts incurred on the over -collected PGA balance • Higher variable interest expense adjusted mechanism in NV associated with IDRBs3 offset in margin Interest Expense • Higher income taxes due to higher pre -tax net income • $26.0 million reduction includes $16.4 million adjustment for non -GAAP presentation to reflect state income tax apportionment benefit associated with certain one-time events Income Taxes 2 NATURAL GAS DISTRIBUTION SEGMENT F E B R U A R Y 2 5 , 2 0 2 6
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2026 Expected Sources & Uses 16 $1.1 $1.3 $0.6 $0.2 $0.1 $0.1 $1.7 $1.7 Sources Uses Sources & Uses ($ in billions)1 CapEx3 $0.6 $1.3 $0.6 $0.1 $0.2 $1.4 $1.4 Sources Uses Sources & Uses ($ in billions)1 Beg. Cash & Cash Flow from Operations Dividend to stockholders Beg. Cash & Cash Flow from Operations CapEx3 SWG Bond Issuance & Revolver Usage SWG Bond Issuances & Revolver Usage Available for future investment Notes: 1. Amounts may not add, due to rounding 2. Excluding equity issuances via Dividend Reinvestment Plan, SWX expects to fully fund dividend with no SWG support, ~$200 million equity infusion from SWX to SWG 3. Includes approximately $30 million that would be recorded in Deferred charges and other assets PLAN HIGHLIGHTS & ASSUMPTIONS • Significant beginning cash balance (nearly $600 million), primarily a result of remaining proceeds from CTRI separation in September 2025 • Expecting ~$325 million net SWG debt issuance, and ~$175 million SWG revolver usage • $1.25 billion capital plan driven by ~$925 million of expected Utility expenditures and ~$325 million of spending to support Great Basin’s expected 2028 Expansion Project • No anticipated equity issuances2 SWX Equity Infusion SWG Bond Retirement SWG Bond Retirement F E B R U A R Y 2 5 , 2 0 2 6
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Strong Credit Profile Enables Efficient and Flexible Financing of SWX’s Capital Plan 17 18.6% 13.0% SWG 2025 S&P Adjusted FFO / Debt1 BBB+ (stable) 19.7% 13.0% SWX BBB+ (stable) Downgrade Threshold Positioned to achieve long-term S&P Adjusted FFO / Debt targets of >17% while maintaining a balanced 50/50 capital structure at SWG Preserving a >300 basis point cushion above S&P downgrade thresholds to absorb weather and commodity volatility while preserving strategic flexibility Strategic credit strength allows the Company to potentially forego high-volume equity issuances, utilizing the SWX ATM2 for modest equity needs and leverage capacity as financing levers Credit profile provides efficient access to capital markets to fund SWG’s capital plan Committed to consistent annual dividend growth, with potential larger increases influenced by anticipated regulatory improvements and the projected 2028 Great Basin expansion project Notes: 1. See “Non-GAAP Measures” for more information and for full reconciliations of our non-GAAP financial measures 2. At-the-market (“ATM”) F E B R U A R Y 2 5 , 2 0 2 6
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Balance Sheet Strength 18 Net Debt1 ($ in billions) Total Debt Cash Net Debt PGA2 Balance Net Debt less PGA $3.5 $0.6 $2.9 $(0.3) $3.2 Corporate & Administrative $0.0 $0.5 $(0.5) n/a $(0.5) $3.5 $0.1 $3.4 $(0.3) $3.7 SWX and SWG are positioned to maintain an investment grade profile, targeting FFO/Debt >17% over time Credit Ratings and Outlook3 Moody’s Standard and Poor’s Fitch Ratings Outlook Ratings Outlook Ratings Outlook Baa2 Stable BBB+ Stable BBB Stable Baa1 Stable BBB+ Stable A- Stable (consolidated) Notes: 1. As of 12/31/2025 2. PGA Balances include purchased gas costs net of amounts received / refunded to or from customers 3. Issuer ratings shown for Southwest Gas Holdings; Senior unsecured long-term debt ratings shown for Southwest Gas Corporation F E B R U A R Y 2 5 , 2 0 2 6
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Committed to Delivering Value Through Continuous Dividend Growth 19 $1.18 $1.32 $1.46 $1.62 $1.80 $1.98 $2.08 $2.18 $2.28 $2.38 $2.48 $2.48 $2.48 $2.48 $2.58 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025A 2026E • Southwest Gas Holdings has paid a dividend every year since 1956 • February 25, 2026: Southwest Gas Holdings Board of Directors announced an increase in its annual dividend to stockholders of 4% • Management currently plans to recommend to the board future annual dividend increases1 • Southwest Gas Holdings expects to continue to pay its regular quarterly dividend1 • Potential for larger dividend increases following the completion of key regulatory initiatives and the projected 2028 Great Basin expansion project1 Notes: 1. All future dividends will be subject to review of the Company’s financial position each quarter and approval by the Board of Directors SWX ANNUAL DIVIDEND PER SHARE 4% Increase F E B R U A R Y 2 5 , 2 0 2 6
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Guidance and Outlook
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2026 and Forward-Looking Financial Guidance 21 ADJ. SWX EPS GUIDE ($ / share) Initiating 2026 and long-term SWX EPS from continuing operations guidance. SWX CAPEX GUIDE2 ($ in billions) Long-term capital plan driven by safety, maintenance, and new business spending at the Utility; as well as the projected incremental 2028 Great Basin Expansion project (expected in-service late 2028). RATE BASE GUIDE ($ in billions) 5-year rate base CAGR includes 2028 Great Basin Expansion Project, run-rate Utility rate base growth expected to be about 7% over the same period. 2025A 2026E 2027E 2028E 2029E 2030E Notes: Illustrative charts not to scale 1. 2025 base year: earnings per share from continuing operations ($3.65 per share) and rate base ($6.7 billion) 2. 2025A and 2026E include approximately $15 million and $30 million that would be recorded in Deferred charges and other assets respectively. 12.0% – 14.0% 5-year Adj. EPS CAGR1 $0.855 $1.250 2025A 2026E $6.7 $7.3 2025A 2026E 2027E 2028E 2029E 2030E Initiating 2026 and long-term guidance metrics including assumptions for alternative rate making in AZ and NV, and the 2028 Great Basin Expansion Project $3.65 $4.17 – $4.32 9.5% – 11.5% 5-year Rate Base CAGR1 $6.3 Billion 5-Year Capital Plan (2026E – 2030E) F E B R U A R Y 2 5 , 2 0 2 6
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2026 2027 2028 2029 2030 Net Income Drivers Margin AZ and NV Filings Potential AZ and NV Tracking Periods FERC Filing CA Filing Assuming rate case outcomes in line with historical experience ~1.4% Annual Customer Growth O&M Targeting flat O&M on a per customer basis (excluding non-service pension costs) Other Income ~$6-7 million COLI; assumes normal natural gas price fluctuations using current forward pricing curves Income Taxes Expect NOL1 utilization to minimize cash tax payments (expected effective tax rate in the high teens) Interest Expense Expect future bond issuances using forward corporate debt curves Financing Assumptions Debt / Equity Assumptions Assumes modest equity issuance utilizing ATM program combined with utilizing HoldCo leverage capacity to fund the 2028 Great Basin Expansion Project, targeting 50%/50% equity/debt ratio at SWG, while targeting >300bps of threshold above current SWX downgrade threshold, in conjunction with currently communicated dividend policy Financial Guidance Drivers and Assumptions 22 AZ & NV Formula Rate Adjustments Notes: 1. Net Operating Loss (“NOL”) F E B R U A R Y 2 5 , 2 0 2 6
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Closing Remarks 23 1 2 3 4 5 100% regulated natural gas utility earnings growth driven by customer growth and improving regulatory frameworks supporting timely recovery of prudent investments Balance sheet strength and credit profile offer strategic financing options with limited equity issuance needs Returning capital to stockholders with healthy, disciplined dividend growth Committed to disciplined cost management and the pursuit of excellence to ensure we safely, reliably, and affordably meet the needs of our customers Enhanced earnings profile with clear growth visibility driven by ~7% core utility rate base growth and ~$1.7 billion of incremental investment opportunity through the 2028 Great Basin Expansion Project F E B R U A R Y 2 5 , 2 0 2 6
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Contact Tyler Franek INVESTORS & ANALYSTS: MANAGER, INVESTOR RELATIONS (702) 876-7263 tyler.franek@swgas.com Sean Corbett MEDIA: MANAGER, CORPORATE COMMUNICATIONS (702) 364-3310 sean.corbett@swgas.com
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Appendices
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Summary of Gas Cost Balances and Recovery Mechanisms 26 State Sept. 20252 Receivable (Payable) Balance ($ in millions) Dec. 20252 Receivable (Payable) Balance ($ in millions) Carrying Cost Rate Gas Cost Rate Adjustment Frequency AZ $(73.7) $(68.4) 1-Year Treasury Rate Monthly3 NV $(282.7) $(241.7) Weighted Average Cost of Capital Quarterly3 CA $0.1 $5.2 Commercial Paper Rate Monthly4 Total $(356.4) $(304.9) PGA1 Balance and Recovery Mechanism Summary Return of Nevada PGA Balance » Southwest Gas received approval, for rates effective July 1, 2025, to accelerate the return to Nevada customers the amount of purchased gas costs over- collected under its purchase gas cost recovery mechanism in the state » Per therm credit as follows: » Northern Nevada: 25 cents per therm » Southern Nevada: 20 cents per therm » Expected reduction in near-term interest expense » Expected impact to near-term liquidity Notes: 1. PGA refers to FERC Acct. 191 2. Includes accrued purchased gas costs 3. Using a 12-month rolling average, to account for changes in the cost of gas SWG purchased on behalf of its customers, with no profit to SWG 4. The gas cost rate is adjusted monthly based on a one-month forecast cost of gas plus the difference in the prior month’s over or under recovery of the PGA balance F E B R U A R Y 2 5 , 2 0 2 6
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2025 Regulatory Updates - Arizona 27 Southwest Gas and Staff Stipulation1 ACC Final Decision Target Equity Ratio 48.5% 48.5% ROE 9.65% 9.84% Fair Value Return on Rate Base 0.73% 0.0% Rate Base $3.3 billion $3.2 billion Post-Test Year Rate Base Adjustments 12 months 12 months Revenue Increase ~$95.9 million ~$80.2 million System Integrity Mechanism Notes » Continuation of full revenue decoupling,2 Tax Expense Adjustor Mechanism, Property Tax Deferral Mechanism » ~$33 million increase in O&M » Test year from 11/1/22 – 10/31/23 with $229 million of rate base requested in the post test year period of 11/1/23 – 10/31/24 » No significant changes to rate design » Discontinuation of the current Customer- Owned Yard Line program Rate Case Highlights » The $80.2M revenue increase represents 64% of the original request » Adjusted for FVI3 exclusion, the $80.2M increase equates to 74% of the original ask » No disallowance on rate base or O&M » Full 12-month post-test year rate base adjustment Before March 2025 Effective March 2025 Equity Ratio 50% 48.5% Return on Equity 9.30% 9.84% Fair Value Increment 0 0 Rate Base ~$2.6B ~$3.2B AZ SIM Decision » On July 9, 2025, the ACC approved the SIM, reducing the cap on annual SIM capital to $50 million per year, down from the requested $150 million per year cap ✓ ✓ Arizona Rate Case Outcome On March 27, 2025, the ACC approved an increase in rates effective on approval. Notes: 1. Docket Number: G-01551A-23-0341, which can be viewed on the Arizona Corporation Commission website 2. Decoupled rate schedules consistent with those currently authorized 3. Fair Value Increment (“FVI”) F E B R U A R Y 2 5 , 2 0 2 6
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Last General Rate Case - Nevada 28 Nevada Rate Case1 Outcome Summary Dollars in millions Proposed Revenue Increase2 $73.9 Depreciation Expense ($6.8) Cost of Service Adjustment ($1.6) Stipulated Revenue Increase ~$65.6 Cost of Capital Adjustment ($6.5) Authorized Revenue Increase $59.1 ~98% of request after depreciation adjustment and before adjustments to cost of capital ~$297 million increase in rate base Cost of Capital Requested at Certification Authorized Target Equity Ratio 50% 50% Return on Equity 10.00% 9.5% Cost of Debt 4.51% NNV 4.50% SNV Approved as requested SWG Nevada3 $191.95 Peer Group4 $254.43 Authorized $59 million revenue increase in Nevada; rates became effective in April 2024 O&M per customer Notes: 1. Docket 23-09012, which can be viewed on the Public Utilities Commission of Nevada website 2. As of November 30, 2023, Certification. Request at test year was $69.8M 3. Weighted average of Southern and Northern Nevada, based on application as filed 4. As of December 31, 2022, utilizing average of peer group natural gas utilities (ATO, NJR, NWN, OGS, SR, & NI) F E B R U A R Y 2 5 , 2 0 2 6
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Regulatory Update - California 29 » ~$16 million increase in O&M » Proposed consolidation of its Northern CA and South Lake Tahoe rate jurisdictions » Damage Prevention Costs tracker » No significant changes to rate design » Infrastructure Reliability and Replacement Adjustment Mechanism (“IRRAM”) California Rate Case Filing Summary In September 2024, SWG filed a rate case1 requesting a revenue increase of ~$50 million, updated to ~$44 million as of February 2025. Target Equity Ratio 50% 48.0% TBD Return on Equity 11.35% 9.5% TBD Rate Base $720 million $709 million ~$714 million5 Proposed Revenue Increase ~$43.7 million ~$26 million ~$39.5 million5 Procedural Schedule Intervenor Testimony April 4, 2025 Rebuttal Testimony May 9, 2025 Hearing July 29, 2025 Requested ~$285 million increase in rate base, or 65% IRRAM Programs totaling ~$200 million over 5-year rate case cycle • Targeted Pipe Replacement • School COYL4 Replacement • Meter Protection • Annual Leak Survey with Advance Mobile Leak Detection Notes » 2026 Test Year » 2.75% PTYM2, with adjustments for excess accumulated deferred income taxes and major pipeline replacements (~$40 million) » Continuation of the automatic trigger mechanism Rates Effective6 January 1, 2026 Southwest Gas Public Advocate’s Office Partial settlement in principle reached by parties, with cost of capital as only remaining unsettled issue3 As Settled Notes: 1. Application 24-09-001, which can be viewed on the California Public Utilities Commission website 2. Post-test Year Margin (“PTYM”) adjustment for 2027-2030 3. Any settlement must be approved by the California Public Utilities Commission 4. Customer-owned yard line 5. Modest rate base adjustments relate to differences in forecasting methodology, not a disallowance of any investments. Proposed revenue increase is reflected prior to cost-of-capital adjustments, if any. 6. Received approval of memorandum to track recovery of any differences between currently effective rates and the new rates in the event of any delay in the issuance of an order. F E B R U A R Y 2 5 , 2 0 2 6
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2025 Regulatory Update - GBGTC 30 Requested Approved Target Equity Ratio 56% 50% Return on Equity 13.05% 11.95%3 Pre-Tax Rate of Return 11.18% 9.76%4 Rate Base $206 million (~$99 million increase) $191 million (~$55 million increase) Proposed Test Year Revenue Increase ~$13 million2 ~$9.6 Million Notes » An all-party black-box settlement was filed December 26, 2024 » Estimated annual margin increase of approximately $9.6 million and a pre-tax rate of return of 9.76%3 » Presiding Administrative Law Judge filed a Certification of Uncontested Settlement January 20, 2025 recommending approval without modification GBGTC Rate Case Outcome1 On March 3, 2025, FERC approved an increase in rates. Notes: 1. Application RP24-514-000, which can be viewed on the Federal Energy Regulatory Commission website 2. Updated to reflect actual costs as of August 2024; original revenue increase requested was $16 million 3. Blackbox settlement – as calculated by GBGTC 4. Compared to 9.90% pre-tax rate of return previously authorized F E B R U A R Y 2 5 , 2 0 2 6
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SWG Regulatory Update – Other Regulatory Activity 31 Arizona Gas Cost Balancing Account (GCBA) In response to lower purchased gas costs, Southwest Gas filed an application in Jan. 2025 to return an over-collected GCBA balance of ~$46 million to customers. The ACC approved the request in March, with rates effective April 2025. California Fort Irwin Expansion Project CPUC approved the expansion of service territory in Southern California to accommodate the construction of an ~21-mile pipeline to extend service to the Army’s National Training Center at Fort Irwin. California Hydrogen Demonstration Project Application pending before California Public Utilities Commission for approval of a hydrogen-blending demonstration project in Northern California. A public forum regarding the Company’s application was held in Truckee, California in August 2025. Arizona Natural Gas Infrastructure and Storage Docket In February of 2025, the ACC opened a docket to inquire into the expansion of natural gas infrastructure and storage in Arizona to address resource adequacy of natural gas infrastructure needed to meet growing demand. A workshop was held August 26, 2025. Great Basin 2026 Expansion Project In April 2025, GBGTC filed an application with the FERC seeking approval to abandon and replace certain pipeline facilities and grant a CPCN to construct and operate certain facilities to increase firm transportation capacity on its Carson, North Tahoe and South Tahoe Laterals. The current project estimate is ~$19 million and is expected to be placed in service in 2026. Nevada Annual Rate Adjustment Filing Southwest Gas filed its 2025 Annual Rate Adjustment Application in November requesting a statewide increase of ~$13 million. Rates are expected to become effective July 1, 2026. Arizona Customer-Owned Yard Line (COYL) Application Southwest Gas filed an application with the ACC in June 2025, to adjust the COYL surcharge to recover approximately $5.2 million for COYL program work completed through March 2025.2 The Company proposed to recover this amount over three years beginning October 1, 2025. The ACC approved the recovery of the $5.2 million over three years. Nevada Deferred Energy Account (DEAA) Adjustment Southwest Gas filed an application in May 2025, seeking approval to return an over-collected DEAA balance of ~$240 million to customers by adjusting rates beyond the maximum allowable adjustment of 2.5 cents per therm4 to reduce customer gas costs and mitigate the increase from the Annual Rate Adjustment. The Commission approved an all-party settlement with rates effective July 1, 2025. Notes: 1. Certificate of Public Convenience and Necessity (“CPCN”) 2. The ACC discontinued the legacy COYL program in the Company’s recent general rate case (Decision No. 80326) 3. Pursuant to Decision No. 80326 4. Pursuant to Nevada Revised Statutes 704.110(8) Arizona Application for Limited Waiver of Affiliate Interest Rules Southwest Gas filed an application with the ACC in February 2026 requesting a limited waiver of the Affiliate Interest Rules to engage in a series of two-part transactions to facilitate the funding for the Great Basin 2028 Expansion Project, which will have no impact, financial or otherwise,on Southwest Gas’ utility operations in Arizona.The 2028 Expansion Project Financing will allow for the use of existing pathways for funds that are either currently available at Southwest Gas’ parent company, Southwest Gas Holdings, Inc. (HoldCo), or that will be pursued in the capital markets by HoldCo and Southwest Gas, and that will pass through Southwest Gas to Great Basin. Great Basin 2024 Expansion Project In April 2024, the FERC issued the order approving GBGTC’s application to abandon and replace certain pipeline facilities and grant a CPCN1 to construct and operate certain facilities to expand the transportation capacity of the system. The pipeline segments contemplated were placed in service by November 2025 with related work on the boring under the Truckee River expected to be completed in 2026. Nevada General Rate Case Notice of Intent Southwest Gas filed a Notice of Intent to file a general rate case in March 2026 for an adjustment in rates to reflect its current cost of providing service, including updating the cost of capital, along with a request to continue the general revenue decoupling methodology. F E B R U A R Y 2 5 , 2 0 2 6 Arizona SIM Fling In March 2026, consistent with the approved Plan of Administration, the Company will be filing its first System Integrity Mechanism application with the ACC to establish a rate effective April 1, 2026, subject to refund, to recover the revenue requirement associated with $50 million of SIM-eligible capital investments for 2025 SIM projects. CPUC Financing Application Southwest Gas filed an application with the CPUC in February seeking incremental financing authority to issue or obtain additional debt securities in an amount not to exceed approximately $1.15B, and the application of such proceeds through the five-year period ending December 31, 2030, to facilitate funding for the Great Basin 2028 Expansion Project. The Company anticipates the issuance of a decision by the end of 2026.
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Three Months Ended Twelve Months Ended Results of Consolidated Operations December 31, December 31, (in millions, except per share items) 2025 2024 2025 2024 Natural gas distribution income 105.7$ 97.2$ 300.3$ 261.2$ Corporate and administrative loss (0.8) (10.3) (65.5) (40.2) Income from continuing operations 104.9 86.8 234.8 221.0 Income (loss) from discontinued operations (1.5) 5.6 205.0 (22.2) Net income attributable to SWX 103.5$ 92.5$ 439.8$ 198.8$ Income from continuing operations 104.9$ 86.8$ 234.8$ 221.0$ Non-GAAP adjustments - continuing operations (6.2) - 28.9 - Adjusted net income from continuing operations 98.8 86.8 263.8 221.0 Basic earnings per share 1.43$ 1.29$ 6.09$ 2.77$ Diluted earnings per share 1.43$ 1.28$ 6.08$ 2.76$ Basic earnings per share from continuing operations 1.45$ 1.21$ 3.25$ 3.08$ Diluted earnings per share from continuing operations 1.45$ 1.20$ 3.25$ 3.07$ Basic adj. earnings per share from continuing operations 1.37$ 1.21$ 3.66$ 3.08$ Diluted adj. earnings per share from continuing operations 1.36$ 1.20$ 3.65$ 3.07$ Weighted average common shares 72.337 71.916 72.162 71.841 Weighted average diluted shares 72.550 72.141 72.337 72.032 4Q and FY 2025 Financial Results 32 Notes: 1. Historically, Natural Gas Distribution segment operating results have corresponded to the operating results of Southwest Gas Corporation. However, for 2024 the amounts reported differ from Southwest Gas Corporation due to the revision described in the 2025 annual report on Form 10-K 2. Adjusted net income from continuing operations and adjusted EPS from continuing operations for the three and twelve months ended December 31, 2025, adjust for state income tax apportionment associated with certain one-time events. See “Non-GAAP Measures” for more information and for full reconciliations of our non-GAAP financial measures CONSOLIDATED 1 2 F E B R U A R Y 2 5 , 2 0 2 6
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Three Months Ended Twelve Months Ended Results of Natural Gas Distribution December 31, December 31, (in thousands of dollars) 2025 2024 2025 2024 Regulated operations revenues 480,735$ 553,059$ 1,942,480$ 2,475,216$ Net cost of gas sold 68,238 165,817 497,636 1,150,005 Operating margin 412,497 387,242 1,444,844 1,325,211 Operations and maintenance expense 137,777 130,591 537,644 520,820 Depreciation and amortization 89,021 82,432 330,724 303,095 Taxes other than income taxes 23,691 22,551 94,070 88,965 Operating income 162,008 151,668 482,406 412,331 Other income 12,017 5,300 52,402 54,276 Net interest deductions 46,153 43,662 181,677 162,257 Income before income taxes 127,872 113,306 353,131 304,350 Income tax expense 22,148 16,121 52,823 43,174 Segment net income 105,724$ 97,185$ 300,308$ 261,176$ Reconciliation of gross margin to operating margin (non-GAAP Measure) Utility Gross Margin 237,513$ 225,729$ 785,619$ 696,964$ Operations and maintenance (excluding Admin & General) expense 85,963 79,081 328,501 325,152 Depreciation and amortization expense 89,021 82,432 330,724 303,095 Operating Margin 412,497$ 387,242$ 1,444,844$ 1,325,211$ Summary of Operating Results 33 NATURAL GAS DISTRIBUTION SEGMENT Notes: 1. Historically, Natural Gas Distribution segment operating results have corresponded to the operating results of Southwest Gas Corporation. However, for 2024 the amounts reported differ from Southwest Gas Corporation due to the revision described in the 2025 annual report on Form 10-K 1 F E B R U A R Y 2 5 , 2 0 2 6
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Three months ended Twelve months ended December 31, December 31, Adjusted Net Income and Adjusted EPS from Continuing Operations 2025 2024 2025 2024 Net income from continuing operations 104,946$ 86,837$ 234,836$ 220,979$ State income tax apportionment associated with certain one-time events (6,182) - 28,931 - Adjusted Net Income from Continuing Operations 98,764$ 86,837$ 263,767$ 220,979$ Weighted average adjusted diluted shares 72,550 72,141 72,337 72,032 Adjusted EPS from Continuing Operations 1.36$ 1.20$ 3.65$ 3.07$ Corporate & Admin. Adjusted Net Loss and Adjusted EPS Corporate and Admin. net loss (778)$ (10,348)$ (65,472)$ (40,197)$ State income tax apportionment associated with certain one-time events (669) - 45,293 - Corporate and Admin. adjusted net loss (1,447)$ (10,348)$ (20,179)$ (40,197)$ Weighted average adjusted diluted shares 72,550 72,141 72,337 72,032 Corporate and Admin. adjusted EPS (0.02)$ (0.14)$ (0.28)$ (0.56)$ Natural Gas Distribution Segment Adjusted Net Income and Adjusted EPS Natural Gas Distribution Segment net income 105,724$ 97,185$ 300,308$ 261,176$ State income tax apportionment associated with certain one-time events (5,513) - (16,362) - Natural Gas Distribution Segment adjusted net income 100,211$ 97,185$ 283,946$ 261,176$ Weighted average adjusted diluted shares 72,550 72,141 72,337 72,032 Natural Gas Distribution Segment Adjusted EPS 1.38$ 1.35$ 3.93$ 3.63$ Non-GAAP Measures 34 Adjusted income and adjusted EPS from continuing operations, Corporate & Administrative adjusted net loss and adjusted EPS, and Southwest Gas adjusted net income and adjusted EPS for the three and twelve months ended December 31, 2025, adjusts for state income tax apportionment associated with certain one-time events. We do not provide a reconciliation of forward- looking Non-GAAP Measures to the corresponding forward-looking GAAP measures due to our inability to project special charges and certain expenses. Notes: 1. Historically, Natural Gas Distribution segment operating results have corresponded to the operating results of Southwest Gas Corporation. However, for 2024 the amounts reported differ from Southwest Gas Corporation due to the revision described in the 2025 annual report on Form 10-K 1 F E B R U A R Y 2 5 , 2 0 2 6
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SWX S&P FFO Calculation 2025 Revenue 1,940.4$ Cost of Goods Sold (497.6) Operating Expenses (544.1) General Taxes (94.1) EBITDA 804.6$ S&P EBITDA Adjustments 1 14.6 S&P Adjusted EBITDA 819.2$ S&P FFO Adjustments 2 (238.4) S&P FFO 580.8$ SWX S&P Adjusted Debt Calculation Total Debt 3,508.0$ Lease Liabilities - Pension & Other Debt / Deferred Comp. 18.5 Ending Cash (576.6) S&P Adjusted Debt 2,949.9$ SWX S&P FFO / Debt Calculation S&P FFO 580.8$ S&P Adjusted Debt 2,949.9 S&P FFO / Debt 19.7% Non-GAAP Measures (continued) 35 Notes: S&P metrics reflect the Companies’ estimates of how S&P calculates FFO/Debt. Tables may not add due to rounding, $ in millions 1. EBITDA Adjustments: stock compensation expense 2. S&P FFO Adjustments: cash interest paid, debt portion of AFUDC, cash taxes paid SWG S&P FFO Calculation 2025 Revenue 1,942.5$ Net Cost of Gas Sold (497.6) Operations and Maintenance (537.6) Taxes Other than Income Taxes (94.1) EBITDA 813.1$ S&P EBITDA Adjustments 1 13.0 S&P Adjusted EBITDA 826.1$ S&P FFO Adjustments 2 (180.7) S&P FFO 645.4$ SWG S&P Adjusted Debt Calculation Total Debt 3,508.0$ Lease Liabilities - Pension & Other Debt / Deferred Comp. 18.5 Ending Cash (56.4) S&P Adjusted Debt 3,470.1$ SWG S&P FFO / Debt Calculation S&P FFO 645.4$ S&P Adjusted Debt 3,470.1 S&P FFO / Debt 18.6% F E B R U A R Y 2 5 , 2 0 2 6