Document

NATURAL GAS DISTRIBUTION SEGMENT

RATEMAKING JURISDICTIONS AND REGULATORY AGENCIES

Southwest Gas Corporation (Southwest Gas) 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 Southwest Gas, Great Basin Gas Transmission Company (Great Basin), 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 Gas' 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) 542-4100

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

Great Basin

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 2024

ARIZONA

Five members, elected statewide to four-year staggered terms. Governor appoints replacements, if position is vacated.

Chairman Jim O’Connor

Rep.

Term ends

01/01/2025

Commissioner Kevin Thompson

Rep.

Term ends

01/01/2027

Commissioner Nick Myers

Rep.

Term ends

01/01/2027

Commissioner Anna Tovar

Dem.

Term ends

01/01/2025

Commissioner Lea Márquez Peterson

Rep.

Term ends

01/01/2025

Executive Director Doug Clark

CALIFORNIA

Five members, appointed to six-year staggered terms by Governor and confirmed by Senate.

President Alice Bushing Reynolds

Dem.

Term ends

12/31/2026

Commissioner Matthew Baker

Dem.

Term ends

12/31/2024

Commissioner Darcie Houck

Dem.

Term ends

12/31/2026

Commissioner John Reynolds

Dem.

Term ends

12/31/2028

Commissioner Karen Douglas

Dem.

Term ends

12/31/2028

Executive Director Rachel Peterson

NEVADA

Three members, appointed to four-year staggered terms by Governor; no confirmation required.

Chairwoman Hayley Williamson

Dem.

Term ends

09/30/2027

Commissioner Tammy Cordova

N.P.

Term ends

09/30/2024

Commissioner Randy J. Brown

Rep.

Term ends

09/30/2025

Executive Director Stephanie Mullen

FERC

Up to five members, appointed to five-year staggered terms by President and confirmed by U.S. Senate.

Chairman Willie L. Phillips

Dem.

Term ends

06/30/2026

Commissioner Allison Clements

Dem.

Term ends

06/30/2024

Commissioner Mark C. Christie

Rep.

Term ends

06/30/2025

Acting Secretary Debbie-Anne Reese


NATURAL GAS DISTRIBUTION SEGMENT
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. 20-05028 (SNV) [3]	VIER		05/27/19	01/01/21	(1.8)	(1.8)	100	6.52	9.25	49.26
Docket No. 21-09034 (SNV)	GIR		09/30/21	01/01/22	(1.7)	(1.7)	100	6.52	9.25	49.26
Docket No. 21-09034 (NNV)	GIR		09/30/21	01/01/22	(0.2)	(0.2)	100	6.75	9.25	49.26
Docket No. 21-09001 (SNV) [4]	GRC	05/31/21	09/01/21	04/01/22	21.3	12.8	60	6.30	9.40	50.00
Docket No. 21-09001 (NNV) [4]	GRC	05/31/21	09/01/21	04/01/22	2.5	1.3	53	6.56	9.40	50.00
Docket No. 22-11017 (SNV) [3]	VIER		11/15/22	07/01/23	1.1	1.1	100	6.30	9.40	50.00
Docket No. 23-09012 (SNV)	GRC	05/31/23	09/11/23	04/15/24	63.5	50.4	79	7.00	9.50	50.00
Docket No. 23-09012 (NNV)	GRC	05/31/23	09/11/23	04/15/24	10.5	8.7	83	7.01	9.50	50.00

ARIZONA
Docket No. G-01551A-16-0107	COYL		02/27/19	11/07/19	3.2	0.0	50	7.42	9.50	51.70
Docket No. G-01551A-16-0107	VSP		02/27/19	11/07/19	9.5	0.0	30	5.71	9.50	51.70
Docket No. G-01551A-19-0055	GRC	01/31/19	05/01/19	01/01/21	80.7	36.8	46	7.03	9.10	51.10
Docket No. G-01551A-19-0055	COYL		05/28/21	11/09/21	13.7	13.7	100	7.42	9.50	51.70
Docket No. G-01551A-19-0055 [5]	VSP		05/28/21	11/09/21	59.9	59.9	100	5.71	9.50	51.70
Docket No. G-01551A-19-0055	COYL		02/28/22	06/01/22	3.4	3.4	100	7.03	9.10	51.10
Docket No. G-01551A-21-0368	GRC	08/31/21	12/03/21	02/01/23	90.7	54.3	60	6.73	9.30	50.00
Docket No. G-01551A-21-0368	COYL		02/28/23	06/01/23	4.3	4.3	100	6.73	9.30	50.00
Docket No. G-01551A-23-0341	GRC	10/31/23	02/02/24	TBD	125.6	TBD	TBD	TBD	TBD	TBD
Docket No. G-01551A-21-0368	COYL		02/28/24	TBD	1.8	TBD	TBD	6.73	9.30	50.00

CALIFORNIA
Application 19-08-015 (SCA)	GRC	12/31/21	08/30/19	04/01/21	6.8	3.0	44	7.11	10.00	52.00
Application 19-08-015 (NCA/SLT)	GRC	12/31/21	08/30/19	04/01/21	6.0	3.4	57	7.44	10.00	52.00
Advice Letter No. 1191 (SCA)	Attrition		11/24/21	01/01/22	2.2	2.2	100	7.11	10.00	52.00
Advice Letter No. 1191 (NCA/SLT)	Attrition		11/24/21	01/01/22	0.9	0.9	100	7.44	10.00	52.00
Advice Letter No. 1195 (NCA) [9]	Attrition		12/22/21	02/01/22	0.1	0.1	100	7.44	10.00	52.00
Advice Letter No. 1235 (SCA)	Attrition		11/28/22	01/01/23	1.9	1.9	100	7.11	10.00	52.00
Advice Letter No. 1235 (NCA/SLT)	Attrition		11/28/22	01/01/23	0.3	0.3	100	7.44	10.00	52.00
Advice Letter No. 1241 (NCA) [9]	Attrition		12/19/22	02/01/23	1.3	1.3	100	7.44	10.00	52.00
Advice Letter No. 1275 (SCA)	Attrition		11/03/23	01/01/24	5.0	5.0	100	8.02	11.16	52.00
Advice Letter No. 1275 (NCA/SLT)	Attrition		11/03/23	01/01/24	1.9	1.9	100	7.91	11.16	52.00
Advice Letter No. 1280 (NCA) [9]	Attrition		12/21/23	02/01/24	4.7	4.7	100	7.91	11.16	52.00

FERC
Docket No. RP14-540	GRC	08/31/14	02/28/14	09/01/14	9.0	2.4	27	[6]	[6]	[6]
Docket No. CP14-509 (2015 Elko Expansion)	Expansion		06/27/14	01/06/16	6.0	6.0	100	[7]	[7]	[7]
Docket No. CP17-471 (2018 Expansion)	Expansion		07/05/17	11/26/18	3.3	3.3	100	[7]	[7]	[7]
Docket No. RP19-1291	GRC	11/30/19	05/31/19	12/01/19	7.1	(0.7)	NM	[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 (in 2024) 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] Additional margin requested reflects amounts requested at certification, excluding $4.9M associated with non cost-of-service COVID regulatory asset and contract revenues adjustment.
[5] Effective 11/1/2021, rate to recover revenue begins 3/1/2022 with recovery over 3 years.
[6] Stipulation - Not Identified in Order. Decision authorized a pre-tax rate of return of 11.50 percent.
[7] Stipulation in Docket No. RP14-540 authorized a pre-tax rate of return of 11.50 percent.
[8] Stipulation - Not Identified in Order. Stipulation authorized pre-tax rate of return of 9.90 percent.
[9] Adjustments to 2022 (AL 1195), 2023 (AL 1241) and 2024 (AL 1280) attrition to recover the revenue requirement associated with the North Lake Tahoe Lateral replacement.


SUMMARY OPERATING RESULTS	YEAR ENDED DECEMBER 31,
(In thousands, except per share amounts)	2023		2022		2021		2020		2019		2018		2017		2016		2015		2014
Results of Consolidated Operations
Contribution to net income - natural gas distribution	$	242,226	$	154,380	$	187,135	$	159,118	$	163,171	$	138,842	$	156,818	$	119,423	$	111,625	$	116,872
Contribution to net income - utility infrastructure services*	19,652		2,065		40,420		74,862		52,404		44,977		38,360		32,618		26,692		24,254
Contribution to net income (loss) - pipeline and storage***	(16,288)		(283,733)		—		—		—		—		—		—		—		—
Contribution to net income (loss) - corporate and administrative*	(94,701)		(76,002)		(26,776)		(1,656)		(1,639)		(1,542)		(1,337)		—		—		—
Net income (loss)*	$	150,889	$	(203,290)	$	200,779	$	232,324	$	213,936	$	182,277	$	193,841	$	152,041	$	138,317	$	141,126

Basic earnings (loss) per share	$	2.13	$	(3.10)	$	3.39	$	4.15	$	3.94	$	3.69	$	4.04	$	3.20	$	2.94	$	3.04
Diluted earnings (loss) per share	$	2.13	$	(3.10)	$	3.39	$	4.14	$	3.94	$	3.68	$	4.04	$	3.18	$	2.92	$	3.01

Average common shares	70,787		65,558		59,145		55,998		54,245		49,419		47,965		47,469		46,992		46,494
Average shares (assuming dilution)	70,990		65,558		59,259		56,076		54,312		49,476		47,991		47,814		47,383		46,944

Results of Natural Gas Distribution
Gas operating revenues	$	2,499,564	$	1,935,069	$	1,521,790	$	1,350,585	$	1,368,939	$	1,357,728	$	1,302,308	$	1,321,412	$	1,454,639	$	1,382,087
Net cost of gas sold	1,246,901		789,216		430,907		342,837		385,164		419,388		355,045		397,121		563,809		505,356
Operating margin	1,252,663		1,145,853		1,090,883		1,007,748		983,775		938,340		947,263		924,291		890,830		876,731
Operations and maintenance expense **	511,646		491,928		438,550		406,382		422,174		404,813		391,321		381,964		369,832		368,313
Depreciation and amortization	295,462		263,043		253,398		235,295		215,620		191,816		201,922		233,463		213,455		204,144
Taxes other than income taxes	87,261		83,197		80,343		63,460		62,328		59,898		57,946		52,376		49,393		47,252
Operating income	358,294		307,685		318,592		302,611		283,653		281,813		296,074		256,488		258,150		257,022
Other income (deductions)**	70,661		(6,884)		(4,559)		(6,590)		9,517		(17,240)		(6,388)		(11,484)		(21,075)		(8,254)
Net interest deductions	149,830		115,880		97,560		101,148		95,026		81,740		69,733		66,997		64,095		68,299

Income before income taxes	279,125		184,921		216,473		194,873		198,144		182,833		219,953		178,007		172,980		180,469
Income tax expense	36,899		30,541		29,338		35,755		34,973		43,991		63,135		58,584		61,355		63,597
Contribution to consolidated net income	$	242,226	$	154,380	$	187,135	$	159,118	$	163,171	$	138,842	$	156,818	$	119,423	$	111,625	$	116,872

*Reflects (as applicable) transaction-related deal and financing costs associated with MountainWest and Riggs Distler acquisitions in 2021, as well as stockholder activism/settlement and strategic review costs in 2022. Costs related to the Centuri separation and public registrant readiness are included in 2023, as well as impairment/loss on sale not separately recognized at MountainWest. To a lesser extent, acquisition and related financing costs were reflected in utility infrastructure services results in earlier periods.

**To reflect the impacts of the Company's 2018 adoption of the Financial Accounting Standards Board ("FASB") update, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," non-service components of these costs have been reclassified from Operations and maintenance expense to Other income (deductions) for 2014-2017, with no impact to earnings overall.

***Reflects results at MountainWest including impairment losses and adjustments thereto.


SUMMARY CONSOLIDATED BALANCE SHEET	AT DECEMBER 31,
(In thousands)	2023		2022*		2021**		2020		2019		2018		2017		2016		2015		2014
ASSETS
Net regulated operations plant	$	7,518,242	$	7,024,500	$	7,594,022	$	6,176,081	$	5,685,197	$	5,093,238	$	4,523,650	$	4,131,971	$	3,891,085	$	3,658,383
Other property and investments	1,266,340		1,281,172		1,316,479		834,245		784,173		623,551		428,180		342,343		313,531		326,743
Restricted cash	—		—		—		—		—		—		—		—		—		821
Current assets	1,881,114		3,707,662		1,614,767		871,013		859,856		839,769		657,032		533,307		558,174		606,611
Noncurrent assets	1,204,200		1,183,280		2,239,989		854,514		840,822		801,171		628,204		573,505		595,895		615,739
Total assets	$	11,869,896	$	13,196,614	$	12,765,257	$	8,735,853	$	8,170,048	$	7,357,729	$	6,237,066	$	5,581,126	$	5,358,685	$	5,208,297
CAPITALIZATION
Common stock equity	$	2,614,984	$	2,355,932	$	1,886,268	$	1,667,978	$	1,523,574	$	1,360,425	$	1,005,052	$	952,235	$	945,455	$	899,534
Accumulated other comprehensive income (loss), net	(43,787)		(44,242)		(46,761)		(61,003)		(56,732)		(52,668)		(47,682)		(48,008)		(50,268)		(50,175)
Retained earnings	738,839		747,069		1,114,313		1,067,978		1,039,072		944,285		857,398		759,263		699,221		639,164
Noncontrolling interests	—		—		—		—		—		(452)		(2,365)		(2,217)		(2,083)		(2,257)

Redeemable noncontrolling interests	104,667		159,349		196,717		165,716		84,542		81,831		—		22,590		16,108		20,042
Long-term debt, less current maturities	4,609,838		4,403,299		4,115,684		2,732,200		2,300,482		2,107,258		1,798,576		1,549,983		1,551,204		1,631,374
Total capitalization	$	8,024,541	$	7,621,407	$	7,266,221	$	5,572,869	$	4,890,938	$	4,440,679	$	3,610,979	$	3,233,846	$	3,159,637	$	3,137,682
LIABILITIES
Current maturities of long-term debt	$	42,552	$	44,557	$	297,324	$	40,433	$	163,512	$	33,060	$	25,346	$	50,101	$	19,475	$	19,192
Current liabilities	1,642,295		3,378,406		2,814,725		871,534		916,349		905,585		790,535		578,274		515,570		450,925
Deferred income taxes and investment tax credits	752,997		682,067		768,868		647,453		599,840		529,201		476,960		840,653		769,445		723,688
Other deferred credits and other long-term liabilities	1,407,511		1,470,177		1,618,119		1,603,564		1,599,409		1,449,204		1,333,246		878,252		894,558		876,810
Total liabilities	3,845,355		5,575,207		5,499,036		3,162,984		3,279,110		2,917,050		2,626,087		2,347,280		2,199,048		2,070,615
Total capitalization and liabilities	$	11,869,896	$	13,196,614	$	12,765,257	$	8,735,853	$	8,170,048	$	7,357,729	$	6,237,066	$	5,581,126	$	5,358,685	$	5,208,297
Reflects MountainWest and related companies' assets/liabilities overall classified as current assets and liabilities held for sale. A Purchase and Sale Agreement was entered into on December 14, 2022, and the sale closed on February 14, 2023. *Reflects the acquisition of MountainWest and related entities, and the parent company of Riggs Distler, Inc., which closed on December 31, 2021 and August 27, 2021, respectively. Other smaller acquisitions are reflected, where relevant, in earlier periods.

NATURAL GAS DISTRIBUTION SEGMENT CASH FLOWS	YEAR ENDED DECEMBER 31,
(In thousands)	2023		2022		2021		2020		2019		2018		2017		2016		2015		2014
From operating activities	$	391,545	$	284,403	$	25,245	$	424,061	$	367,794	$	382,502	$	309,216	$	507,224	$	497,500	$	288,534
From investing activities	(770,572)		(654,708)		(586,042)		(677,412)		(759,842)		(669,392)		(557,384)		(446,238)		(416,727)		(328,645)
From financing activities	398,358		383,437		558,418		253,932		400,575		280,906		267,090		(63,339)		(74,159)		23,413
Net change in cash	$	19,331	$	13,132	$	(2,379)	$	581	$	8,527	$	(5,984)	$	18,922	$	(2,353)	$	6,614	$	(16,698)


NATURAL GAS DISTRIBUTION SEGMENT
REGULATED OPERATIONS PLANT	AT DECEMBER 31,
(In thousands)	2023		2022		2021		2020		2019		2018		2017		2016		2015		2014
Distribution	$	8,684,949	$	8,039,793	$	7,506,489	$	7,078,656	$	6,581,043	$	6,049,380	$	5,600,769	$	5,198,531	$	4,935,730	$	4,655,640
General	539,188		505,109		496,643		515,879		467,274		416,643		396,252		382,084		365,865		356,072
Transmission	402,591		399,357		397,590		400,657		391,864		386,159		363,396		349,981		312,996		312,300
Intangible	396,585		392,459		383,307		273,811		259,097		243,694		232,566		226,754		205,782		198,457
Construction work in progress	200,549		244,750		183,485		211,429		185,026		193,028		125,248		111,177		119,805		74,332
Other	117,049		117,189		117,546		114,997		113,943		38,363		36,661		36,410		34,914		34,680
Accumulated depreciation & amortization	(2,822,669)		(2,674,157)		(2,538,508)		(2,419,348)		(2,313,050)		(2,234,029)		(2,231,242)		(2,172,966)		(2,084,007)		(1,973,098)
Net regulated operations plant	$	7,518,242	$	7,024,500	$	6,546,552	$	6,176,081	$	5,685,197	$	5,093,238	$	4,523,650	$	4,131,971	$	3,891,085	$	3,658,383

OPERATIONS & MAINTENANCE EXPENSES	YEAR ENDED DECEMBER 31,
(In thousands)	2023		2022		2021		2020		2019		2018		2017		2016		2015		2014
Distribution	$	216,279	$	212,077	$	184,674	$	175,408	$	184,193	$	185,176	$	186,860	$	188,064	$	181,249	$	170,377
Administrative and general*	195,400		180,858		171,390		162,659		167,553		151,157		135,569		123,246		114,501		122,532
Customer accounts	73,053		73,598		60,050		48,466		49,057		47,719		48,937		51,024		51,071		50,200
Transmission	18,179		17,188		14,054		12,599		15,938		15,020		13,744		13,666		14,779		15,792
Production and storage expenses	7,790		7,513		7,247		6,642		4,869		4,885		5,256		4,889		5,052		4,960
Customer service and informational	911		654		1,076		575		516		827		935		1,050		3,165		4,440
Sales	34		40		59		33		48		29		20		25		15		12
Total operations and maintenance expenses*	$	511,646	$	491,928	$	438,550	$	406,382	$	422,174	$	404,813	$	391,321	$	381,964	$	369,832	$	368,313
* To reflect the impacts of the Company's 2018 adoption of the update to FASB Topic 715, all periods presented exclude non-service components of net periodic pension and other postretirement benefit cost. For 2014-2017, these costs have been reclassified from Administrative and general expense (as a practical expedient), as if initially reflected there, to Other income (deductions). Non-service cost in periods prior to 2018 were actually initially recognized in a number of categories of expense, and to a more limited extent, in regulated operations plant on the balance sheet, through an overhead loading process.


NATURAL GAS DISTRIBUTION SEGMENT
	AT DECEMBER 31,
CUSTOMERS BY CLASS	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
Residential	2,139,014			2,109,902			2,072,889			2,039,226			1,997,418			1,964,355			1,932,332			1,902,227			1,874,852			1,849,555
Small commercial	85,068			84,431			83,242			82,036			81,603			80,676			80,047			79,437			78,833			78,230
Large commercial	994			976			977			990			987			992			1,016			1,042			1,043			1,086
Industrial / Other	388			392			373			342			336			329			332			318			318			341
Transportation	1,025			1,069			1,038			989			958			955			929			905			879			833
Total customers	2,226,489			2,196,770			2,158,519			2,123,583			2,081,302			2,047,307			2,014,656			1,983,929			1,955,925			1,930,045
Annual customer growth rate	1.4		%	1.8		%	1.7		%	1.8		%	1.7		%	1.6		%	1.5		%	1.4		%	1.3		%	1.4		%

SYSTEM THROUGHPUT BY CLASS	YEAR ENDED DECEMBER 31,
(In thousands of dekatherms)	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
Residential	86,965			81,392			76,811			80,068			81,839			69,702			67,427			68,463			65,542			61,738
Small commercial	35,092			33,499			31,051			29,316			33,322			30,534			29,767			29,452			28,512			27,658
Large commercial	11,092			10,004			9,490			9,124			9,933			9,255			9,256			9,095			9,228			9,439
Industrial / Other	7,760			5,005			5,104			5,316			4,255			3,775			3,382			3,028			3,097			3,238
Transportation	85,685			92,519			94,955			98,328			100,799			105,055			97,441			97,056			103,571			90,669
Total system throughput	226,594			222,419			217,411			222,152			230,148			218,321			207,273			207,094			209,950			192,742


OPERATING MARGIN BY CLASS*	YEAR ENDED DECEMBER 31,
(In thousands)	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
Residential	$	881,873		$	808,910		$	774,716		$	717,581		$	686,886		$	647,209		$	657,574		$	640,157		$	623,828		$	612,641
Small commercial	182,159			162,692			153,492			138,272			142,798			145,250			144,096			142,490			136,344			136,272
Large commercial	23,395			29,303			26,021			23,618			23,138			22,822			22,232			22,450			22,249			23,412
Industrial / Other	30,917			14,889			14,703			10,293			8,464			8,251			7,495			7,177			6,937			6,477
Transportation	134,319			130,059			121,951			117,984			122,489			114,808			115,866			112,017			101,472			97,929
Total operating margin	$	1,252,663		$	1,145,853		$	1,090,883		$	1,007,748		$	983,775		$	938,340		$	947,263		$	924,291		$	890,830		$	876,731
*Includes allocations of miscellaneous, unbilled, and other operating revenues.



MARKET PRICE PER SHARE	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
High	$	68.03		$	95.62		$	73.54		$	81.62		$	92.94		$	85.97		$	86.87		$	79.58		$	63.68		$	64.20
Low	53.79			59.51			57.00			45.68			73.27			62.54			72.32			53.51			50.78			47.21
Close [1]	63.35			61.88			70.05			60.75			75.97			76.50			80.48			76.62			55.16			61.81

	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
Common shares outstanding (in thousands) [1]	71,564			67,119			60,422			57,193			55,007			53,026			48,090			47,482			47,378			46,523
Dividend yield [1]	3.9		%	4.0		%	3.4		%	3.8		%	2.9		%	2.7		%	2.5		%	2.3		%	2.9		%	2.4		%
Dividends declared per share [2]	$	2.48		$	2.48		$	2.38		$	2.28		$	2.18		$	2.08		$	1.98		$	1.80		$	1.62		$	1.46
Price / Earnings ratio [1,5]	29.74			(19.96)			20.66			14.64			19.28			20.73			19.92			23.94			18.76			20.33
Return on equity - total company [2,5]	4.7		%	(6.2)		%	7.1		%	9.0		%	9.0		%	9.3		%	11.2		%	9.3		%	8.9		%	9.7		%
Return on equity - gas distribution segment only [2]	8.2		%	6.0		%	7.8		%	7.5		%	8.5		%	8.2		%	10.0		%	7.7		%	7.6		%	8.5		%
Book value per share [1]	$	46.25		$	45.57		$	48.89		$	46.77		$	45.56		$	42.63		$	37.74		$	35.03		$	33.65		$	32.03

NATURAL GAS DISTRIBUTION SEGMENT
	YEAR ENDED DECEMBER 31,
HEATING DEGREE DAY COMPARISON	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
Actual	1,954			1,835			1,627			1,767			1,917			1,531			1,478			1,613			1,512			1,416
Ten-year average	1,649			1,645			1,637			1,676			1,701			1,694			1,733			1,771			1,792			1,816

	2023			2022			2021			2020			2019			2018			2017			2016			2015			2014
Number of gas distribution segment employees [1]	2,372			2,351			2,286			2,272			2,295			2,312			2,285			2,247			2,219			2,196
Customers / Employee [1]	939			934			945			935			907			886			882			883			881			879
Operations & maintenance expense / Customer [2,3,6]	$	223		$	228		$	212		$	204		$	213		$	211		$	207		$	206		$	204		$	202
Weighted average cost of gas (per therm) [2,4]	$	0.94		$	0.68		$	0.64		$	0.28		$	0.36		$	0.31		$	0.44		$	0.37		$	0.44		$	0.55
Construction expenditures (in thousands) [2]	$	762,081		$	683,131		$	601,983		$	692,216		$	778,748		$	682,869		$	560,448		$	457,120		$	438,289		$	350,025
[1] At December 31,
[2] For the year ended December 31,
[3] Includes non-service components of net periodic pension and other postretirement benefit cost in calculation.
[4] Gas cost in 2021 includes impacts of the significant price runup during Winter Storm Uri. Gas cost in 2022 spiked due to numerous market forces including historically low storage levels, unexpected upstream pipeline maintenance events, and cold weather conditions across the western region in the latter part of 2022. Gas cost continued to spike in 2023 as these market forces continued to cause record prices for natural gas.
[5] In 2022 and 2023, includes the impact of a goodwill impairment and cost to sell MountainWest-related entities.
[6] As throughout this report, information for the natural gas distribution segment includes information (to the extent relevant) of the interstate pipeline operations of its subsidiaries, having a very small number of customers in relation to expenses incurred in related operations.


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


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

		Twelve Months Ended 12-31-23			Twelve Months Ended 12-31-22
Southern Nevada
	Commercial	9,390,173	$	10,732,483	9,271,761	$	9,982,123
	Industrial	5,880,113	4,546,214		5,509,169	3,987,516
	Power Generation	27,802,754	15,267,317		33,544,695	16,207,518
Southern Nevada Totals		43,073,040	$	30,546,014	48,325,625	$	30,177,157



Northern Nevada (1)
	Commercial	1,790,379	$	1,865,244	1,796,983	$	1,663,135
	Industrial	6,922,621	3,521,081		7,098,616	3,460,869
	Power Generation	5,497,212	3,513,006		7,220,549	3,927,002
	Resale	9,769,230	30,368,120		9,654,227	29,945,701
Northern Nevada Totals		23,979,442	$	39,267,451	25,770,375	$	38,996,707

(1)	Includes transportation customers of Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation.


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


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

		Twelve Months Ended 12-31-23			Twelve Months Ended 12-31-22
Southern Arizona
	Commercial	1,756,099	$	5,528,404	1,663,227	$	4,819,498
	Industrial	1,543,533	2,313,355		1,004,626	1,930,588
	Power Generation	1,574,513	4,269,429		1,632,235	4,187,566
	Irrigation	349,061	1,143,672		455,344	1,606,239
Southern Arizona Totals		5,223,206	$	13,254,860	4,755,432	$	12,543,891



Central Arizona
	Commercial	5,192,746	$	15,015,895	5,294,661	$	15,321,824
	Industrial	5,384,339	15,331,140		5,363,545	15,844,208
	Power Generation	1,218,097	1,542,160		1,205,797	1,461,189
	Irrigation	1,272,188	3,192,690		1,438,776	3,431,656
Central Arizona Totals		13,067,370	$	35,081,885	13,302,779	$	36,058,877


NATURAL GAS DISTRIBUTION SEGMENT
Transportation Volumes and Operating Margin


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

		Twelve Months Ended 12-31-23			Twelve Months Ended 12-31-22
Southern California
	Commercial	335,689	$	3,656,664	346,293	$	1,758,785
	Power Generation	6,700	61,075		18,230	146,750
Southern California Totals		342,389	$	3,717,739	364,523	$	1,905,535



Total Company (1)
	Commercial	18,465,086	$	36,798,690	18,372,925	$	33,545,365
	Industrial	19,730,606	25,711,790		18,975,956	25,223,181
	Power Generation	36,099,276	24,652,987		43,621,506	25,930,025
	Resale	9,769,230	30,368,120		9,654,227	29,945,701
	Irrigation	1,621,249	4,336,362		1,894,120	5,037,895
TOTAL COMPANY		85,685,447	$	121,867,949	92,518,734	$	119,682,167

(1)	Includes transportation customers of Great Basin Gas Transmission Company, a wholly owned subsidiary of Southwest Gas Corporation.