SEC Filing | Southwest Gas Holdings

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 24, 2019

SOUTHWEST GAS HOLDINGS, INC.

(Exact name of registrant as specified in its charter)



California	001-37976	81-3881866
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

5241 Spring Mountain Road
Post Office Box 98510
Las Vegas, Nevada		89193-8510
(Address of principal executive offices)		(Zip Code)

Registrant's telephone number, including area code: (702) 876‑7237

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

On April 24, 2019, Southwest Gas Holdings, Inc. (the “Company”) released summary statistical information for each of the ten years in the period ended December 31, 2018. A copy of this information is attached hereto as Exhibit 99.

This Form 8-K and the attached exhibit are provided under Item 7.01 of Form 8-K and are furnished to, but not filed with, the Securities and Exchange Commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SOUTHWEST GAS HOLDINGS, INC.

Date: April 24, 2019

/s/ LORI L. COLVIN

Lori L. Colvin

Vice President/Controller and Chief Accounting Officer

EXHIBIT INDEX

Exhibit

No. Description

99 Summary statistical information as of December 31, 2018 released on April 24, 2019.

Exhibit



RATEMAKING JURISDICTIONS AND REGULATORY AGENCIES

The Company is subject to regulation by the Arizona Corporation Commission (ACC), the Public Utilities Commission of Nevada (PUCN) and the California Public Utilities Commission (CPUC). These commissions regulate public utility rates, practices, facilities, and service territories in their respective states.


The Federal Energy Regulatory Commission (FERC) regulates a wholly owned subsidiary of the Company, Paiute Pipeline Company (Paiute), and the rates it charges for transportation of gas directly to certain end-users and the transportation and storage of gas to various local distribution companies for resale in northern Nevada and northern California.


Shown below is a list of Southwest's ratemaking jurisdictions and the corresponding regulatory agency having jurisdiction:

	Ratemaking Jurisdiction	Regulatory Agency
	Arizona:	Arizona Corporation Commission
		1200 West Washington	Web site:	www.azcc.gov
		Phoenix, AZ 85007-2996
		(602) 542-4251	FAX:	(602) 542-2129

	California:	California Public Utilities Commission
	Northern	505 Van Ness Avenue	Web site:	www.cpuc.ca.gov
	Southern	San Francisco, CA 94102-3298
	South Lake Tahoe	(415) 703-2782	FAX:	(415) 703-1758

	Nevada:	Public Utilities Commission of Nevada
	Northern	1150 East William Street	Web site:	http://puc.nv.gov
	Southern	Carson City, NV 89701-3109
		(775) 684-6101	FAX:	(775) 684-6110

	Nevada/California:	Federal Energy Regulatory Commission
	Paiute	888 First Street, N.E.	Web site:	www.ferc.gov
		Washington, DC 20426
		(202) 502-8400	FAX:	(202) 208-2268

A list of the commissioners appointed or elected to the various regulatory agencies follows this page.



SUMMARY OF COMMISSIONER STATUS BY JURISDICTION
March 2019

ARIZONA
Five members, elected statewide to four-year staggered terms. Governor appoints replacements, if position is vacated.
	Chairman Bob Burns	Rep.	Term ends	01/01/2021
	Commissioner Boyd Dunn	Rep.	Term ends	01/01/2021
	Commissioner Andy Tobin	Rep.	Term ends	01/01/2021
	Commissioner Sandra Kennedy	Dem.	Term ends	01/01/2023
	Commissioner Justin Olson	Rep.	Term ends	01/01/2023
	Executive Director Matt Neubert
CALIFORNIA
Five members, appointed to six-year staggered terms by Governor and confirmed by Senate.
	President Michael Picker	Dem.	Term ends	12/31/2020
	Commissioner Liane M. Randolph	Dem.	Term ends	12/31/2020
	Commissioner Martha Guzman-Aceves	Dem.	Term ends	12/31/2022
	Commissioner Clifford L. Rechtschaffen	Dem.	Term ends	12/31/2022
	Commissioner Genevieve A. Shiroma	Dem.	Term ends	12/31/2024
	Executive Director Alice Stebbins
NEVADA
Three members, appointed to four-year staggered terms by Governor; no confirmation required.
	Chairman Ann Wilkinson	Rep.	Term ends	09/30/2020
	Commissioner Ann C. Pongracz	Dem.	Term ends	09/30/2019
	Commissioner C.J. Manthe	Rep.	Term ends	09/30/2021
	Executive Director Stephanie Mullen
FERC
Up to five members, appointed to five-year staggered terms by President and confirmed by U.S. Senate.
	Chairman Neil Chatterjee	Rep.	Term ends	06/30/2021
	Commissioner Cheryl A. LaFleur	Dem.	Term ends	06/30/2019
	Commissioner Bernard McNamee	Rep.	Term ends	06/30/2020
	Commissioner Richard Glick	Dem.	Term ends	06/30/2022
	Secretary Kimberly D. Bose



SUMMARY OF KEY REGULATORY FILINGS

					ADDITIONAL	ADDITIONAL	PERCENT	OVERALL	RATE OF
					MARGIN	MARGIN	AUTHORIZED	RATE OF	RETURN ON	COMMON
	FILING	TEST	FILING	EFFECTIVE	REQUESTED	AUTHORIZED	OF REQUESTED	RETURN	COMMON EQUITY	EQUITY
JURISDICTION	TYPE [1]	PERIOD	DATE	DATE	($mm)	($mm) [2]	AMOUNTS	GRANTED	GRANTED	RATIO
NEVADA
Docket No. 16-06003 (SNV) [3]	VIER		06/03/16	01/01/17	0.0	0.0	100	6.46	10.00	42.74
Docket No. 16-09022 (NNV)	GIR		09/30/16	01/01/17	0.1	0.1	100	7.88	9.30	59.06
Docket No. 16-09022 (SNV)	GIR		09/30/16	01/01/17	0.7	0.7	100	6.46	10.00	42.74
Docket No. 17-06002 (SNV) [3]	VIER		06/01/17	01/01/18	0.8	0.8	100	6.55	10.00	42.74
Docket No. 17-09029 (NNV)	GIR		09/29/17	01/01/18	(0.2)	(0.2)	100	7.88	9.30	59.06
Docket No. 17-09029 (SNV)	GIR		09/29/17	01/01/18	4.4	4.4	100	6.46	10.00	42.74
Docket No. 18-06005 (SNV) [3]	VIER		06/04/18	01/01/19	0.0	0.0	100	6.46	10.00	42.74
Docket No. 18-05031 (NNV)	GRC	01/31/18	05/29/18	03/04/19	1.4	(2.1)	NM	6.98	9.25	49.66
Docket No. 18-05031 (SNV)	GRC	01/31/18	05/29/18	03/04/19	28.3	9.2	33	6.65	9.25	49.66
Docket No. 18-05031 (NNV)	GIR	01/31/18	05/29/18	01/01/19	0.0	0.0	100	6.98	9.25	49.66
Docket No. 18-05031 (SNV)	GIR	01/31/18	05/29/18	01/01/19	6.0	6.0	100	6.65	9.25	49.66
ARIZONA
Docket No. G-0155A-16-0107	GRC	11/30/15	05/02/16	04/01/17	32.0	16.0	50.0	7.42	9.50	51.70
Docket No. G-0155A-16-0107	COYL		02/28/18	09/01/18	2.4	1.7	71.0	7.42	9.50	51.70
Docket No. G-0155A-16-0107	VSP		02/28/18	09/01/18	3.0	2.4	80.0	5.71	9.50	51.70
Docket No. G-0155A-16-0107 [4]	COYL		02/27/19	06/01/19	3.2	TBD	TBD	TBD	TBD	TBD
Docket No. G-0155A-16-0107 [5]	VSP		02/27/19	06/01/19	9.5	TBD	TBD	TBD	TBD	TBD

CALIFORNIA
Application 12-12-024 (SCA)	GRC	12/31/14	12/20/12	06/12/14	5.6	1.9	34	6.83	10.10	55.00
Application 12-12-024 (NCA/SLT)	GRC	12/31/14	12/20/12	06/12/14	6.0	5.2	87	8.18	10.10	55.00
Advice Letter No. 960 (SCA)	Attrition		11/26/14	01/01/15	1.8	1.8	100	6.83	10.10	55.00
Advice Letter No. 960 (NCA/SLT)	Attrition		11/26/14	01/01/15	0.7	0.7	100	8.18	10.10	55.00
Advice Letter No. 995 (SCA)	Attrition		11/30/15	01/01/16	1.8	1.8	100	6.83	10.10	55.00
Advice Letter No. 995 (NCA/SLT)	Attrition		11/30/15	01/01/16	0.7	0.7	100	8.18	10.10	55.00
Advice Letter No. 996 (SCA)[6]	Attrition		11/30/15	01/01/16	1.7	1.7	100	6.83	10.10	55.00
Advice Letter No 1024 (SCA)	Attrition		11/30/16	01/01/17	1.9	1.9	100	6.83	10.10	55.00
Advice Letter No. 1024 (NCA/SLT)	Attrition		11/30/16	01/01/17	0.8	0.8	100	8.18	10.10	55.00
Advice Letter No. 1025 (SCA) [6]	Attrition		11/30/16	01/01/17	0.2	0.2	100	6.83	10.10	55.00
Advice Letter No. 1058 (SCA)	Attrition		11/30/17	01/01/18	2.0	2.0	100	6.83	10.10	55.00
Advice Letter No. 1058 (NCA/SLT)	Attrition		11/30/17	01/01/18	0.8	0.8	100	8.18	10.10	55.00
Advice Letter No. 1086 (SCA)	Attrition		11/30/18	01/01/19	2.0	2.0	100	6.83	10.10	55.00
Advice Letter No. 1086 (NCA/SLT)	Attrition		11/30/18	01/01/19	0.8	0.8	100	8.18	10.10	55.00
FERC
Docket No. RP14-540	GRC	08/31/14	02/28/14	09/01/14	9.0	2.4	27	[7]	[7]	[7]
Docket No. CP14-509 (2015 Elko Expansion)	Expansion		06/27/14	01/06/16	6.0	6.0	100	[8]	[8]	[8]
Docket No. CP17-471 (2018 Expansion)	Expansion		07/05/17	11/26/18	3.3	3.3	100	[8]	[8]	[8]

[1] GRC = General Rate Case; VIER = Variable Interest Expense Recovery Mechanism; GIR= Gas Infrastructure Replacement; COYL= Customer Owned Yard Lines;
Attrition = Annual Attrition Filing and Automatic Trigger Mechanism for Cost of Capital; VSP = Vintage Steel Pipe
[2] Authorized amounts do not include the effect of lower depreciation rates, which contribute to an increase in operating income
[3] Represents the net change in margin resulting from the Average Variable Interest Rate (AVIR)
[4] 2019 COYL margin pending ACC approval, expected May 2019
[5] 2019 VSP margin pending ACC approval, expected May 2019
[6] Adjustments to 2016 (AL 996) and 2017 (AL 1025) Attrition to recover the revenue requirement associated with the Victor Valley transmission replacement
[7] Stipulation - Not Identified in Order
[8] Stipulation in Docket No. RP14-540 authorized a pre-tax rate of return of 11.50 percent



SUMMARY OPERATING RESULTS	YEAR ENDED DECEMBER 31,
(In thousands, except per share amounts)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Results of Consolidated Operations
Contribution to net income - gas operations	$	138,842		$	156,818		$	119,423		$	111,625		$	116,872		$	124,169		$	116,619		$	91,420		$	91,382		$	79,420
Contribution to net income - utility infrastructure services	44,977			38,360			32,618			26,692			24,254			21,151			16,712			20,867			12,495			8,062
Contribution to net income - corporate and administrative	(1,542		)	(1,337		)	—			—			—			—			—			—			—			—
Net income	$	182,277		$	193,841		$	152,041		$	138,317		$	141,126		$	145,320		$	133,331		$	112,287		$	103,877		$	87,482

Basic earnings per share	$	3.69		$	4.04		$	3.20		$	2.94		$	3.04		$	3.14		$	2.89		$	2.45		$	2.29		$	1.95
Diluted earnings per share	$	3.68		$	4.04		$	3.18		$	2.92		$	3.01		$	3.11		$	2.86		$	2.43		$	2.27		$	1.94

Average common shares	49,419			47,965			47,469			46,992			46,494			46,318			46,115			45,858			45,405			44,752
Average shares (assuming dilution)	49,476			47,991			47,814			47,383			46,944			46,758			46,555			46,291			45,823			45,062

Results of Natural Gas Operations
Gas operating revenues	$	1,357,728		$	1,302,308		$	1,321,412		$	1,454,639		$	1,382,087		$	1,300,154		$	1,321,728		$	1,403,366		$	1,511,907		$	1,614,843
Net cost of gas sold	419,388			355,045			397,121			563,809			505,356			436,001			479,602			613,489			736,175			866,630
Operating margin	938,340			947,263			924,291			890,830			876,731			864,153			842,126			789,877			775,732			748,213
Operations and maintenance expense *	404,813			391,321			381,964			369,832			368,313			361,422			349,257			342,882			340,435			340,343
Depreciation and amortization	191,816			201,922			233,463			213,455			204,144			193,848			186,035			175,253			170,456			166,850
Taxes other than income taxes	59,898			57,946			52,376			49,393			47,252			45,551			41,728			40,949			38,869			37,318
Operating income	281,813			296,074			256,488			258,150			257,022			263,332			265,106			230,793			225,972			203,702
Other income (deductions)*	(17,240		)	(6,388		)	(11,484		)	(21,075		)	(8,254		)	(11,231		)	(16,557		)	(21,020		)	(10,492		)	(2,009		)
Net interest deductions	81,740			69,733			66,997			64,095			68,299			62,555			66,957			68,777			75,113			74,091
Net interest deductions on subordinated debentures	—			—			—			—			—			—			—			—			1,912			7,731
Income before income taxes	182,833			219,953			178,007			172,980			180,469			189,546			181,592			140,996			138,455			119,871
Income tax expense	43,991			63,135			58,584			61,355			63,597			65,377			64,973			49,576			47,073			40,451
Contribution to consolidated net income	$	138,842		$	156,818		$	119,423		$	111,625		$	116,872		$	124,169		$	116,619		$	91,420		$	91,382		$	79,420

* To reflect the impacts of the Company's adoption of the Financial Accounting Standard Board ("FASB") update, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost", non-service components of these costs have been presented as reclassified to Other income (deductions) for all periods presented, with no impact to earnings overall.



SUMMARY CONSOLIDATED BALANCE SHEET	AT DECEMBER 31,
(In thousands)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
ASSETS
Net utility plant	$	5,093,238		$	4,523,650		$	4,131,971		$	3,891,085		$	3,658,383		$	3,486,108		$	3,343,794		$	3,218,944		$	3,072,436		$	3,034,503
Other property and investments	623,551			428,180			342,343			313,531			326,743			260,871			242,096			192,004			134,648			115,860
Restricted cash	—			—			—			—			821			—			—			12,785			37,781			49,769
Current assets	839,769			657,032			533,307			558,174			606,611			494,672			458,417			461,632			445,894			417,632
Noncurrent assets	801,171			628,204			573,505			595,895			615,739			323,523			443,750			390,642			293,434			288,528
Total assets	$	7,357,729		$	6,237,066		$	5,581,126		$	5,358,685		$	5,208,297		$	4,565,174		$	4,488,057		$	4,276,007		$	3,984,193		$	3,906,292
CAPITALIZATION
Common stock equity	$	1,360,425		$	1,005,052		$	952,235		$	945,455		$	899,534		$	888,507		$	876,555		$	869,226		$	855,114		$	839,061
Accumulated other comprehensive income (loss), net	(52,668		)	(47,682		)	(48,008		)	(50,268		)	(50,175		)	(41,698		)	(50,745		)	(49,331		)	(30,784		)	(22,250		)
Retained earnings	944,285			857,398			759,263			699,221			639,164			567,714			484,369			406,125			343,131			285,316
Noncontrolling interest	(452		)	(2,365		)	(2,217		)	(2,083		)	(2,257		)	(2,128		)	(1,681		)	(989		)	(465		)	(41		)
Subordinated debentures	—			—			—			—			—			—			—			—			—			100,000
Redeemable noncontrolling interest	81,831			—			22,590			16,108			20,042			—			—			—			—			—
Long-term debt, less current maturities	2,107,258			1,798,576			1,549,983			1,551,204			1,631,374			1,381,327			1,268,373			930,858			1,124,681			1,169,357
Total capitalization	$	4,440,679		$	3,610,979		$	3,233,846		$	3,159,637		$	3,137,682		$	2,793,722		$	2,576,871		$	2,155,889		$	2,291,677		$	2,371,443
LIABILITIES
Current maturities of long-term debt	$	33,060		$	25,346		$	50,101		$	19,475		$	19,192		$	11,105		$	50,137		$	322,618		$	75,080		$	1,327
Current liabilities	905,585			790,535			578,274			515,570			450,925			423,059			484,992			524,950			521,881			472,903
Deferred income taxes and investment tax credits	529,201			476,960			840,653			769,445			723,688			674,411			616,184			557,118			466,628			436,113
Other deferred credits and other long-term liabilities	1,449,204			1,333,246			878,252			894,558			876,810			662,877			759,873			715,432			628,927			624,506
Total liabilities	2,917,050			2,626,087			2,347,280			2,199,048			2,070,615			1,771,452			1,911,186			2,120,118			1,692,516			1,534,849
Total capitalization and liabilities	$	7,357,729		$	6,237,066		$	5,581,126		$	5,358,685		$	5,208,297		$	4,565,174		$	4,488,057		$	4,276,007		$	3,984,193		$	3,906,292



GAS SEGMENT CASH FLOWS	YEAR ENDED DECEMBER 31,
(In thousands)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
From operating activities	$	382,502		$	309,216		$	507,224		$	497,500		$	288,534		$	265,290		$	344,441		$	216,745		$	342,522		$	371,416
From investing activities	(669,392		)	(557,384		)	(446,238		)	(416,727		)	(328,645		)	(304,189		)	(296,886		)	(289,234		)	(178,685		)	(265,850		)
From financing activities	280,906			267,090			(63,339		)	(74,159		)	23,413			44,947			(43,453		)	(2,327		)	(107,779		)	(81,744		)
Net change in cash	$	(5,984	)	$	18,922		$	(2,353	)	$	6,614		$	(16,698	)	$	6,048		$	4,102		$	(74,816	)	$	56,058		$	23,822



GAS OPERATIONS SEGMENT
UTILITY PLANT	AT DECEMBER 31,
(In thousands)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Distribution	$	6,049,380		$	5,600,769		$	5,198,531		$	4,935,730		$	4,655,640		$	4,410,598		$	4,224,560		$	4,048,078		$	3,847,731		$	3,716,881
General	416,643			396,252			382,084			365,865			356,072			324,490			310,936			291,639			279,402			270,825
Transmission	386,159			363,396			349,981			312,996			312,300			313,306			301,505			295,103			274,646			271,467
Intangible	243,694			232,566			226,754			205,782			198,457			171,193			150,396			144,135			135,330			127,188
Construction work in progress	193,028			125,248			111,177			119,805			74,332			101,413			74,178			44,894			37,489			45,872
Other	38,363			36,661			36,410			34,914			34,680			33,612			33,014			33,186			33,267			33,376
Accumulated depreciation & amortization	(2,234,029		)	(2,231,242		)	(2,172,966		)	(2,084,007		)	(1,973,098		)	(1,868,504		)	(1,750,795		)	(1,638,091		)	(1,535,429		)	(1,431,106		)
Net utility plant	$	5,093,238		$	4,523,650		$	4,131,971		$	3,891,085		$	3,658,383		$	3,486,108		$	3,343,794		$	3,218,944		$	3,072,436		$	3,034,503


OPERATIONS & MAINTENANCE EXPENSES	YEAR ENDED DECEMBER 31,
(In thousands)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Distribution	$	185,176		$	186,860		$	188,064		$	181,249		$	170,377		$	174,129		$	166,356		$	157,855		$	157,220		$	159,282
Administrative and general*	151,157			135,569			123,246			114,501			122,532			107,874			104,152			107,741			106,434			103,927
Customer accounts	47,719			48,937			51,024			51,071			50,200			53,809			55,894			57,414			60,187			60,896
Transmission	15,020			13,744			13,666			14,779			15,792			15,864			14,207			12,353			9,622			9,338
Production and storage expenses	4,885			5,256			4,889			5,052			4,960			5,054			4,500			4,492			4,215			3,985
Customer service and informational	827			935			1,050			3,165			4,440			4,677			4,142			2,962			2,646			2,484
Sales	29			20			25			15			12			15			6			65			111			431
Total operations and maintenance expenses*	$	404,813		$	391,321		$	381,964		$	369,832		$	368,313		$	361,422		$	349,257		$	342,882		$	340,435		$	340,343

* To reflect the impacts of the Company's adoption of the update to FASB Topic 715, all periods are presented to exclude non-service components of net periodic pension and other post-retirement benefit cost, which have been reclassified to Other income (deductions) for purposes of this report.



GAS OPERATIONS SEGMENT
	AT DECEMBER 31,
CUSTOMERS BY CLASS	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Residential	1,964,355			1,932,332			1,902,227			1,874,852			1,849,555			1,824,008			1,796,929			1,780,155			1,758,557			1,744,481
Small commercial	80,676			80,047			79,437			78,833			78,230			77,848			76,800			76,633			76,746			77,416
Large commercial	992			1,016			1,042			1,043			1,086			1,076			1,118			1,433			1,185			1,263
Industrial / Other	329			332			318			318			341			333			308			320			328			320
Transportation	955			929			905			879			833			812			739			715			643			646
Total customers	2,047,307			2,014,656			1,983,929			1,955,925			1,930,045			1,904,077			1,875,894			1,859,256			1,837,459			1,824,126

ANNUAL CUSTOMER GROWTH RATE	1.6		%	1.5		%	1.4		%	1.3		%	1.4		%	1.5		%	0.9		%	1.2		%	0.7		%	0.3		%

SYSTEM THROUGHPUT BY CLASS	YEAR ENDED DECEMBER 31,
(In thousands of dekatherms)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Residential	69,702			67,427			68,463			65,542			61,738			74,133			65,505			71,877			70,470			66,974
Small commercial	30,534			29,767			29,452			28,512			27,658			29,804			27,067			30,392			30,094			29,423
Large commercial	9,255			9,256			9,095			9,228			9,439			10,276			11,658			11,226			11,183			11,724
Industrial / Other	3,775			3,382			3,028			3,097			3,238			5,021			4,783			5,021			5,892			7,262
Transportation	105,055			97,441			97,056			103,571			90,669			103,792			99,809			94,154			99,860			104,389
Total system throughput	218,321			207,273			207,094			209,950			192,742			223,026			208,822			212,670			217,499			219,772


OPERATING MARGIN BY CLASS*	YEAR ENDED DECEMBER 31,
(In thousands)	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Residential	$	647,209		$	657,574		$	640,157		$	623,828		$	612,641		$	601,076		$	582,619		$	549,844		$	537,980		$	513,299
Small commercial	145,250			144,096			142,490			136,344			136,272			133,474			132,964			129,946			127,802			129,103
Large commercial	22,822			22,232			22,450			22,249			23,412			25,171			26,421			20,248			20,936			21,879
Industrial / Other	8,251			7,495			7,177			6,937			6,477			7,735			8,706			8,772			9,515			10,302
Transportation	114,808			115,866			112,017			101,472			97,929			96,697			91,416			81,067			79,499			73,630
Total operating margin	$	938,340		$	947,263		$	924,291		$	890,830		$	876,731		$	864,153		$	842,126		$	789,877		$	775,732		$	748,213

* Includes allocations of miscellaneous, unbilled, and other operating revenues.




MARKET PRICE PER SHARE	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
High	$	85.97		$	86.87		$	79.58		$	63.68		$	64.20		$	56.03		$	46.08		$	43.20		$	37.25		$	29.48
Low	62.54			72.32			53.51			50.78			47.21			42.02			39.01			32.12			26.28			17.08
Close [1]	76.50			80.48			76.62			55.16			61.81			55.91			42.41			42.49			36.67			28.53

	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
COMMON SHARES OUTSTANDING (in thousands) [1]	53,026			48,090			47,482			47,378			46,523			46,356			46,148			45,956			45,599			45,092
DIVIDEND YIELD [1]	2.7		%	2.5		%	2.3		%	2.9		%	2.4		%	2.4		%	2.8		%	2.5		%	2.7		%	3.3		%
DIVIDENDS DECLARED PER SHARE [2]	$	2.08		$	1.98		$	1.80		$	1.62		$	1.46		$	1.32		$	1.18		$	1.06		$	1.00		$	0.95
PRICE / EARNINGS RATIO [1]	20.73			19.92			23.94			18.76			20.33			17.81			14.67			17.34			16.01			14.63
RETURN ON EQUITY - TOTAL COMPANY [2]	9.3		%	11.2		%	9.3		%	8.9		%	9.7		%	10.6		%	10.4		%	9.3		%	9.1		%	8.1		%
RETURN ON EQUITY - GAS SEGMENT ONLY [2]	8.2		%	10.0		%	7.7		%	7.6		%	8.5		%	9.6		%	9.6		%	8.0		%	8.5		%	7.8		%
BOOK VALUE PER SHARE [1]	$	42.63		$	37.74		$	35.03		$	33.65		$	32.03		$	30.51		$	28.39		$	26.68		$	25.60		$	24.44

GAS OPERATIONS SEGMENT
	YEAR ENDED DECEMBER 31,
HEATING DEGREE DAY COMPARISON	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
Actual	1,531			1,478			1,613			1,512			1,416			1,918			1,740			2,002			1,998			1,824
Ten-year average	1,694			1,733			1,771			1,792			1,816			1,876			1,866			1,888			1,876			1,882

	2018			2017			2016			2015			2014			2013			2012			2011			2010			2009
NUMBER OF GAS SEGMENT EMPLOYEES [1]	2,312			2,285			2,247			2,219			2,196			2,220			2,245			2,298			2,349			2,423
CUSTOMERS / EMPLOYEE [1]	886			882			883			881			879			858			836			809			782			753
OPERATIONS & MAINTENANCE EXPENSE / CUSTOMER [2,3]	$	211		$	207		$	206		$	204		$	202		$	206		$	200		$	196		$	196		$	194
WEIGHTED AVERAGE COST OF GAS (per therm) [2]	$	0.31		$	0.44		$	0.37		$	0.44		$	0.55		$	0.42		$	0.42		$	0.58		$	0.62		$	0.71
CONSTRUCTION EXPENDITURES (in thousands) [2]	$	682,869		$	560,448		$	457,120		$	438,289		$	350,025		$	314,578		$	308,951		$	305,542		$	188,379		$	212,919
[1] At December 31,
[2] For the year ended December 31,
[3] Includes non-service components of net periodic pension and other post-retirement benefit cost in calculation.



GAS OPERATIONS SEGMENT
Transportation Volumes and Operating Margin


		DEKATHERMS	OPERATING		DEKATHERMS	OPERATING
DIVISION/CUSTOMER TYPE		TRANSPORTED	MARGIN		TRANSPORTED	MARGIN

		Twelve Months Ended 12-31-18			Twelve Months Ended 12-31-17
Southern Nevada
	Commercial	9,907,541	$	10,445,785	9,580,642	$	10,986,943
	Industrial	5,379,474	4,530,144		5,176,130	4,674,822
	Power Generation	45,807,455	14,988,240		40,529,032	15,504,665
Southern Nevada Totals		61,094,470	$	29,964,169	55,285,804	$	31,166,430



Northern Nevada (1)
	Commercial	1,957,306	$	1,477,370	2,007,146	$	1,450,850
	Industrial	6,838,353	3,010,433		6,756,991	3,019,937
	Power Generation	6,602,686	3,293,423		4,526,184	2,767,807
	Resale	9,747,072	29,403,399		10,141,671	29,552,987
Northern Nevada Totals		25,145,417	$	37,184,625	23,431,992	$	36,791,581






(1)	Includes transportation customers of Paiute Pipeline Company, a wholly owned subsidiary of Southwest Gas Corporation.



GAS OPERATIONS SEGMENT
Transportation Volumes and Operating Margin


		DEKATHERMS	OPERATING		DEKATHERMS	OPERATING
DIVISION/CUSTOMER TYPE		TRANSPORTED	MARGIN		TRANSPORTED	MARGIN

		Twelve Months Ended 12-31-18			Twelve Months Ended 12-31-17
Southern Arizona
	Commercial	1,458,500	$	3,937,823	1,376,307	$	3,811,908
	Industrial	1,680,790	1,487,490		1,820,390	1,360,157
	Power Generation	1,652,109	3,546,246		1,716,488	3,706,291
	Irrigation	791,242	2,073,329		858,689	2,086,022
Southern Arizona Totals		5,582,641	$	11,044,888	5,771,874	$	10,964,378



Central Arizona
	Commercial	4,419,333	$	12,478,553	4,641,724	$	12,513,797
	Industrial	4,275,060	10,371,284		4,076,645	9,844,410
	Power Generation	846,351	1,208,851		394,842	746,871
	Irrigation	2,353,179	5,070,181		2,459,152	4,239,177
Central Arizona Totals		11,893,923	$	29,128,869	11,572,363	$	27,344,255



GAS OPERATIONS SEGMENT
Transportation Volumes and Operating Margin


		DEKATHERMS	OPERATING		DEKATHERMS	OPERATING
DIVISION/CUSTOMER TYPE		TRANSPORTED	MARGIN		TRANSPORTED	MARGIN

		Twelve Months Ended 12-31-18			Twelve Months Ended 12-31-17
Southern California
	Commercial	576,103	$	1,053,074	481,364	$	698,011
	Industrial	295,628	571,135		249,678	345,558
	Power Generation	466,923	654,417		647,589	661,747
Southern California Totals		1,338,654	$	2,278,626	1,378,631	$	1,705,316




Total Company (1)
	Commercial	18,318,783	$	29,392,605	18,087,183	$	29,461,509
	Industrial	18,469,305	19,970,486		18,079,834	19,244,884
	Power Generation	55,375,524	23,691,177		47,814,135	23,387,381
	Resale	9,747,072	29,403,399		10,141,671	29,552,987
	Irrigation	3,144,421	7,143,510		3,317,841	6,325,199
TOTAL COMPANY		105,055,105	$	109,601,177	97,440,664	$	107,971,960






(1)	Includes transportation customers of Paiute Pipeline Company, a wholly owned subsidiary of Southwest Gas Corporation.