8-K

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) November 5, 2009

SOUTHWEST GAS CORPORATION

(Exact name of registrant as specified in its charter)

California	1-7850	88-0085720
(State or other jurisdiction of	(Commission	(I.R.S. Employer
incorporation or organization)	File Number)	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))

Item 2.02              Results of Operations and Financial Condition.

On November 5, 2009, Southwest Gas Corporation (the Company) released summary financial information to the general public, including the investment community, regarding the Company’s operating performance for the quarter, nine, and twelve months ended September 30, 2009. A copy of the Company’s press release and summary financial information is attached hereto as Exhibit 99.

This Form 8-K and the attached exhibit are provided under Item 2.02 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 CORPORATION
Date: November 5, 2009
	/s/ ROY R. CENTRELLA
	Roy R. Centrella
	Vice President/Controller and
	Chief Accounting Officer

EXHIBIT INDEX

Exhibit
No.	Description
99	Press Release and summary financial information dated November 5, 2009.

EX-99

November 5, 2009

Media Contact:  Cynthia Messina, NV (702) 876-7132

Shareholder Contact:  Ken Kenny, Las Vegas, NV (702) 876-7237

For Immediate Release

SOUTHWEST GAS CORPORATION

REPORTS THIRD QUARTER 2009 RESULTS

Las Vegas, Nev. – Southwest Gas Corporation (NYSE: SWX) recorded a net loss of $0.18 per share for the third quarter of 2009, compared to a loss of $0.38 per share recorded during the third quarter of 2008.  Consolidated net loss was $8.3 million, compared to a loss of $16.7 million in the prior-year quarter.  Due to the seasonal nature of the business, net losses during the second and third quarters are normal and not generally indicative of earnings for a complete twelve-month period.

According to Jeffrey W. Shaw, Chief Executive Officer, “Third quarter results improved compared to the same period last year primarily due to positive returns on investments this quarter versus negative returns in the corresponding prior-year quarter.  In addition, we have successfully minimized cost increases through the effective use of technology and selectively filling employee vacancies.  We have also reduced capital expenditures due to the current low-growth environment, but we continue to upgrade and expand the distribution system as necessary.”

Regarding regulatory matters, Shaw added, “We recently received a $17.1 million annualized general rate increase in Nevada effective November 2009.  Factoring in other aspects of the rate case decision, we estimate the operating income benefit to be

-more-

$19.1 million.  We also received authorization to establish a margin tracking (decoupling) mechanism.  This change is designed to encourage conservation efforts while insulating the Company from the effects on operating margin of lower usage (including volumes associated with unusual weather).  We now have decoupled rate designs in two of the three states that we serve.  We continue to participate in a productive rulemaking proceeding in Arizona that deals with energy efficiency standards and alternatives for a decoupled rate design.”

For the twelve months ended September 30, 2009, consolidated net income was $72.3 million, or $1.63 per basic share, compared to $72.9 million, or $1.69 per basic share, during the twelve-month period ended September 30, 2008.

Natural Gas Operations Segment Results

Third Quarter

Operating margin, defined as operating revenues less the cost of gas sold, decreased by approximately $4 million in the third quarter of 2009 compared to the third quarter of 2008.  The decline resulted from a $9 million decrease related to the return to a seasonal margin methodology in California, partially offset by rate relief of $5 million in Arizona.  This completes the seasonal adjustment impacts to margin in California.  Customer growth was not a factor, as only 1,000 net new customers (on a comparative seasonally adjusted basis) were added during the last twelve months.

-more-

Operating expenses for the quarter decreased $1.8 million, or one percent, compared to the third quarter of 2008 primarily due to lower depreciation rates in California and Nevada and cost containment efforts.  Other income increased $8.5 million between quarters as the cash surrender values of company-owned life insurance (“COLI”) policies increased by $4.9 million in the third quarter of 2009 compared to a reduction of $3.7 million in the prior-year quarter.  Net financing costs decreased $1.6 million due principally to a reduction in outstanding debt and lower interest rates on variable-rate debt.

Twelve Months to Date

Operating margin decreased a net $9 million between periods.  Rate relief provided $24 million of operating margin, consisting of $22 million in Arizona and $2 million in California.  Customer growth contributed $1 million in operating margin.  Differences in heating demand caused primarily by weather variations between periods resulted in a $22 million operating margin decrease as warmer-than-normal temperatures were experienced during both periods (during the twelve-month period of 2009, operating margin was negatively impacted by $29 million, while the negative impact in the twelve-month period of 2008 was $7 million).  Conservation resulting from current economic conditions and energy efficiency negatively impacted operating margin by an estimated $12 million.

Operating expenses increased $7.6 million, or one percent, between periods due to incremental operating costs (including depreciation) associated with facilities upgrades

-more-

and general cost increases.  The increase was mitigated by lower staffing levels and labor efficiencies associated with the conversion to electronic meter reading.

Other income, which principally includes interest income, changes in cash surrender values of COLI policies, and non-utility expenses, increased $5.2 million between periods.  This was primarily due to an $8.5 million incremental increase in the cash surrender values of COLI policies between periods partially offset by lower interest income.  Net financing costs decreased $8.9 million due to a reduction in outstanding debt and lower interest rates on variable-rate debt.

Southwest Gas Corporation provides natural gas service to 1,803,000 customers in Arizona, Nevada, and California.

This press release may contain statements which constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (Reform Act).  All such forward-looking statements are intended to be subject to the safe harbor protection provided by the Reform Act.  A number of important factors affecting the business and financial results of the Company could cause actual results to differ materially from those stated in the forward-looking statements.  These factors include, but are not limited to, the impact of weather variations on customer usage, customer growth rates, conditions in the housing market, the effects of regulation/deregulation, the timing and amount of rate relief, changes in rate design, and the impacts of stock market volatility.

-more-

SOUTHWEST GAS CONSOLIDATED EARNINGS DIGEST

(In thousands, except per share amounts)

QUARTER ENDED SEPTEMBER 30,	2009		2008
Consolidated Operating Revenues	$	317,509	$	374,422
Net Loss	$	8,297	$	16,686
Average Number of Common Shares Outstanding		44,855		43,581
Loss Per Share	$	0.18	$	0.38
NINE MONTHS ENDED SEPTEMBER 30,		2009		2008
Consolidated Operating Revenues	$	1,395,019	$	1,635,333
Net Income	$	41,090	$	29,741
Average Number of Common Shares Outstanding		44,671		43,307
Basic Earnings Per Share	$	0.92	$	0.69
Diluted Earnings Per Share	$	0.91	$	0.68
TWELVE MONTHS ENDED SEPTEMBER 30,		2009		2008
Consolidated Operating Revenues	$	1,904,429	$	2,195,644
Net Income	$	72,322	$	72,878
Average Number of Common Shares Outstanding		44,497		43,150
Basic Earnings Per Share	$	1.63	$	1.69
Diluted Earnings Per Share	$	1.61	$	1.68

-end-

 

SOUTHWEST GAS CORPORATION
SUMMARY UNAUDITED OPERATING RESULTS
(In thousands, except per share amounts)
	THREE MONTHS ENDED						NINE MONTHS ENDED					TWELVE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,					SEPTEMBER 30,
	2009			2008			2009		2008			2009			2008
Results of Consolidated Operations
Contribution to net income (loss) - gas operations	$	(11,367	)	$	(19,678	)	$	35,749	$	24,748		$	64,748		$	64,332
Contribution to net income - construction services		3,070			2,992			5,341		4,993			7,574			8,546
Net income (loss)	$	(8,297	)	$	(16,686	)	$	41,090	$	29,741		$	72,322		$	72,878
Basic earnings (loss) per share	$	(0.18	)	$	(0.38	)	$	0.92	$	0.69		$	1.63		$	1.69
Diluted earnings (loss) per share	$	(0.18	)	$	(0.38	)	$	0.91	$	0.68		$	1.61		$	1.68
Average outstanding common shares		44,855			43,581			44,671		43,307			44,497			43,150
Average shares outstanding (assuming dilution)		-			-			44,960		43,610			44,785			43,464
Results of Natural Gas Operations
Gas operating revenues	$	235,020		$	268,450		$	1,186,870	$	1,362,753		$	1,615,512		$	1,831,523
Net cost of gas sold		104,518			134,030			668,013		839,309			884,681			1,091,050
Operating margin		130,502			134,420			518,857		523,444			730,831			740,473
Operations and maintenance expense		85,773			87,489			257,281		256,298			339,643			336,659
Depreciation and amortization		41,401			41,623			125,613		123,565			168,385			163,275
Taxes other than income taxes		8,265			8,103			27,880		27,913			36,747			37,213
Operating income (loss)		(4,937	)		(2,795	)		108,083		115,668			186,056			203,326
Other income (expense)		3,952			(4,548	)		4,589		(6,710	)		(2,170	)		(7,362	)
Net interest deductions		18,904			20,521			55,617		62,811			75,902			84,781
Net interest deductions on subordinated debentures		1,933			1,933			5,798		5,797			7,730			7,729
Income (loss) before income taxes		(21,822	)		(29,797	)		51,257		40,350			100,254			103,454
Income tax expense (benefit)		(10,455	)		(10,119	)		15,508		15,602			35,506			39,122
Contribution to net income (loss) - gas operations	$	(11,367	)	$	(19,678	)	$	35,749	$	24,748		$	64,748		$	64,332

SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
SEPTEMBER 30, 2009
FINANCIAL STATISTICS
Market value to book value per share at quarter end		108	%
Twelve months to date return on equity  -- total company		6.8	%
- -- gas segment		6.5	%
Common stock dividend yield at quarter end		3.7	%
GAS OPERATIONS SEGMENT
							Authorized
	Authorized			Authorized			Return on
	Rate Base			Rate of			Common
Rate Jurisdiction	(In thousands)			Return			Equity
Arizona	$	1,066,108			8.86	%		10.00	%
Southern Nevada (1)		819,719			7.40			10.15
Northern Nevada (1)		116,584			8.29			10.15
Southern California		143,851			7.87			10.50
Northern California		52,285			8.99			10.50
South Lake Tahoe		11,815			8.99			10.50
Paiute Pipeline Company (2)		82,853			9.44			11.80
(1) Effective November 1, 2009.
(2) Estimated amounts based on rate case settlements.
SYSTEM THROUGHPUT BY CUSTOMER CLASS
	NINE MONTHS ENDED						TWELVE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
(In dekatherms)		2009			2008			2009		2008
Residential		50,147,858			56,165,408			64,481,072		72,030,225
Small commercial		21,852,502			24,173,970			29,134,009		31,861,258
Large commercial		9,007,018			9,505,802			12,013,360		12,745,478
Industrial / Other		5,632,449			7,189,719			8,212,877		9,722,168
Transportation		81,307,527			89,208,081			108,518,427		112,731,940
Total system throughput		167,947,354			186,242,980			222,359,745		239,091,069
HEATING DEGREE DAY COMPARISON
Actual		1,279			1,447			1,734		1,933
Ten-year average		1,347			1,367			1,874		1,905
Heating degree days for prior periods have been recalculated using the current period customer mix.