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) February 28, 2011

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 February 28, 2011, 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 and twelve months ended December 31, 2010. 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: February 28, 2011
	/s/ GREGORY J. PETERSON
	Gregory J. Peterson
	Vice President/Controller and
	Chief Accounting Officer

EXHIBIT INDEX

Exhibit
No.	Description
99	Press Release and summary financial information dated February 28, 2011.

EX-99

February 28, 2011

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

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

For Immediate Release

SOUTHWEST GAS CORPORATION ANNOUNCES 2010 EARNINGS

Las Vegas, Nev. – Southwest Gas Corporation (NYSE: SWX) reported consolidated earnings of $2.29 per basic share for 2010, a $0.34 per share increase from the $1.95 per basic share earned in 2009.  Consolidated net income for 2010 was $103.9 million, compared to $87.5 million during 2009.

According to Jeffrey W. Shaw, Chief Executive Officer, “We are pleased to report earnings of $2.29 per share, a marked increase over the prior year.  Net income from the natural gas segment increased by $12 million between years.  Operating margin grew by over $27 million aided by rate relief in Nevada and California and improved weather conditions over the prior year.  By investing in technology and improving our operational processes, we were able to hold total gas segment operating costs to a modest 2 percent increase over 2009.  Additionally, operating results from our construction services subsidiary improved $4.4 million between years primarily due to successes in procuring incremental infrastructure maintenance and replacement work.”

Shaw concluded by saying, “Our liquidity has remained strong throughout these challenging economic times, and our improved earnings and cash flows have helped to strengthen our financial position.  We have successfully worked with our regulators in California and Nevada to bring stability to our rates and earnings and in November 2010, we filed a general rate case in Arizona requesting an increase in revenues of

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$73 million.  We included a request for a decoupled rate structure and a number of programs to help customers achieve greater energy efficiency.  We believe margin decoupling in Arizona, along with our operating cost containment efforts, are crucial elements of our goal to earn our authorized rate of return.”

During the fourth quarter of 2010, consolidated net income was $45 million, or $0.99 per basic share, versus $46.4 million, or $1.03 per basic share, for the fourth quarter of 2009.

Natural Gas Operations Segment Results

Full Year 2010

Operating margin, defined as operating revenues less the net cost of gas sold, increased more than $27 million between years.  Rate relief provided $18 million toward the operating margin increase, consisting of $15 million in Nevada and $3 million in California.  Differences in heating demand caused primarily by weather variations between years resulted in an $8 million operating margin increase as warmer-than-normal temperatures were experienced in both years (during 2010, operating margin was negatively impacted by $10 million, while the negative impact in 2009 was $18 million).  Customer growth contributed $1 million of the operating margin increase.

Operating expenses rose $11.2 million, or two percent, between years principally due to higher employee-related benefit costs, general cost increases, and an increase in depreciation expense resulting from additional plant in service.  The increase was

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mitigated by cost containment efforts including lower staffing levels, a decline in uncollectible expense, and lower depreciation rates in the Nevada rate jurisdictions.

Other income, which principally includes changes in cash surrender values of company-owned life insurance(“COLI”) policies and non-utility expenses, declined $2.6 million between years primarily due to higher costs associated with certain Arizona non-recoverable pipe replacement work, partially offset by an increase in the cash surrender values of COLI policies.  The current year includes a $9.8 million ($0.22 per share) increase in the cash surrender values (and net death benefits) of COLI policies.  The prior year included an $8.5 million ($0.19 per share) increase in COLI cash surrender values.  COLI income in both periods was very high due to strong equity-mark et returns on investments underlying the policies.

Net financing costs decreased $4.8 million between years due to the redemption of $100 million of subordinated debentures in March 2010.

Fourth Quarter

Operating margin decreased $6 million, or three percent, in the fourth quarter of 2010 compared to the fourth quarter of 2009.  Rate relief of $3 million (consisting of $2 million in Nevada and $1 million in California) was more than offset by a $9 million weather-related operating margin decrease, as Arizona experienced one of its warmest Decembers on record.  Weather conditions were near normal during last year’s fourth quarter.

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Operating expenses for the quarter increased $4.7 million, or three percent, when compared to the fourth quarter of 2009 principally due to higher employee-related benefit costs and increased depreciation expense resulting from additional plant in service.

Other income improved $1 million between periods primarily due to a $4.2 million increase in the cash surrender values of COLI policies in the fourth quarter of 2010 compared to an increase of $1.6 million in the fourth quarter of 2009, partially offset by increased costs associated with certain Arizona non-recoverable pipe replacement work.

Net financing costs decreased $1.3 million primarily due to the redemption of the $100 million subordinated debentures in March 2010.

Southwest Gas Corporation provides natural gas service to 1,837,000 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 impac ts of stock market volatility.

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SOUTHWEST GAS CORPORATION CONSOLIDATED EARNINGS DIGEST

(In thousands, except per share amounts)

YEAR ENDED DECEMBER 31,	2010		2009
Consolidated Operating Revenues	$	1,830,371	$	1,893,824
Net Income	$	103,877	$	87,482
Average Number of Common Shares Outstanding		45,405		44,752
Basic Earnings Per Share	$	2.29	$	1.95
Diluted Earnings Per Share	$	2.27	$	1.94
QUARTER ENDED DECEMBER 31,
Consolidated Operating Revenues	$	468,112	$	498,805
Net Income	$	44,985	$	46,392
Average Number of Common Shares Outstanding		45,555		44,990
Basic Earnings Per Share	$	0.99	$	1.03
Diluted Earnings Per Share	$	0.98	$	1.02

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SOUTHWEST GAS CORPORATION
SUMMARY UNAUDITED OPERATING RESULTS
(In thousands, except per share amounts)
	THREE MONTHS ENDED				YEAR ENDED
	DECEMBER 31,				DECEMBER 31,
	2010		2009		2010		2009
Results of Consolidated Operations
Contribution to net income - gas operations	$	38,979	$	43,671	$	91,382	$	79,420
Contribution to net income - construction services		6,006		2,721		12,495		8,062
Net income	$	44,985	$	46,392	$	103,877	$	87,482
Basic earnings per share	$	0.99	$	1.03	$	2.29	$	1.95
Diluted earnings per share	$	0.98	$	1.02	$	2.27	$	1.94
Average outstanding common shares		45,555		44,990		45,405		44,752
Average shares outstanding (assuming dilution)		46,020		45,362		45,823		45,062
Results of Natural Gas Operations
Gas operating revenues	$	378,236	$	427,973	$	1,511,907	$	1,614,843
Net cost of gas sold		154,881		198,617		736,175		866,630
Operating margin		223,355		229,356		775,732		748,213
Operations and maintenance expense		94,557		91,661		354,943		348,942
Depreciation and amortization		43,040		41,237		170,456		166,850
Taxes other than income taxes		9,481		9,438		38,869		37,318
Operating income		76,277		87,020		211,464		195,103
Other income (deductions)		3,019		2,001		4,016		6,590
Net interest deductions		19,112		18,474		75,113		74,091
Net interest deductions on subordinated debentures		-		1,933		1,912		7,731
Income before income taxes		60,184		68,614		138,455		119,871
Income tax expense		21,205		24,943		47,073		40,451
Contribution to net income - gas operations	$	38,979	$	43,671	$	91,382	$	79,420

SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
DECEMBER 31, 2010
FINANCIAL STATISTICS
Market value to book value per share at year end		143	%
Twelve months to date return on equity  -- total company		9.1	%
-- gas segment		8.5	%
Common stock dividend yield at year end		2.7	%
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		819,717			7.40			10.15
Northern Nevada		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 (1)		84,717			9.47			12.00
(1) Estimated amounts based on rate case settlement.
SYSTEM THROUGHPUT BY CUSTOMER CLASS
	YEAR ENDED DECEMBER 31,
(In dekatherms)		2010			2009			2008
Residential		70,469,300			66,973,593			70,498,622
Small commercial		30,094,001			29,422,425			31,455,477
Large commercial		11,183,295			11,724,121			12,512,144
Industrial / Other		5,892,213			7,262,348			9,770,147
Transportation		99,859,949			104,389,391			116,418,981
Total system throughput		217,498,758			219,771,878			240,655,371
HEATING DEGREE DAY COMPARISON
Actual		1,998			1,822			1,901
Ten-year average		1,876			1,881			1,893
Heating degree days for prior periods have been recalculated using the current period customer mix.