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Debt
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Debt
Note 5 – Debt
Long-Term Debt
Long-term debt is recognized in the Company’s and Southwest’s Condensed Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. Details surrounding the fair value and individual carrying values of instruments are provided in the table that follows.
 March 31, 2024December 31, 2023
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
(Thousands of dollars)
Southwest Gas Corporation:
Debentures:
8% Series, due 2026
$75,000 $78,087 $75,000 $79,502 
Medium-term notes, 7.92% series, due 2027
25,000 26,470 25,000 26,883 
Medium-term notes, 6.76% series, due 2027
7,500 7,703 7,500 7,800 
Notes, 5.8%, due 2027
300,000 306,630 300,000 309,180 
Notes, 3.7%, due 2028
300,000 285,690 300,000 285,300 
Notes, 5.45%, due 2028
300,000 304,920 300,000 307,170 
Notes, 2.2%, due 2030
450,000 381,555 450,000 382,635 
Notes, 4.05%, due 2032
600,000 549,840 600,000 563,940 
Notes, 6.1%, due 2041
125,000 129,113 125,000 126,238 
Notes, 4.875%, due 2043
250,000 215,200 250,000 214,050 
Notes, 3.8%, due 2046
300,000 224,970 300,000 225,240 
Notes, 4.15%, due 2049
300,000 232,860 300,000 236,370 
Notes, 3.18%, due 2051
300,000 196,110 300,000 197,760 
Unamortized discount and debt issuance costs(28,828)(29,594)
3,303,672 3,302,906 
Revolving credit facility and commercial paper— — — — 
Industrial development revenue bonds:
Tax-exempt Series A, due 202850,000 50,000 50,000 50,000 
2003 Series A, due 203850,000 50,000 50,000 50,000 
2008 Series A, due 203850,000 50,000 50,000 50,000 
2009 Series A, due 203950,000 50,000 50,000 50,000 
Unamortized discount and debt issuance costs(1,261)(1,363)
198,739 198,637 
Less: current maturities— — 
Southwest Gas Corporation total long-term debt, less current maturities3,502,411 3,501,543 
Southwest Gas Holdings, Inc.:
Centuri secured term loan facility991,375 991,375 994,238 996,723 
Centuri secured revolving credit facility125,229 125,324 77,121 77,205 
Other debt obligations88,905 85,024 96,599 92,209 
Unamortized discount and debt issuance costs(16,192)(17,111)
Less: current maturities(42,770)(42,552)
Southwest Gas Holdings, Inc. total long-term debt, less current maturities$4,648,958 $4,609,838 
Southwest has a $400 million credit facility that is scheduled to expire in April 2025. Southwest designates $150 million of associated capacity as long-term debt and the remaining $250 million for working capital purposes. Interest rates for the credit facility are calculated at either the Secured Overnight Financing Rate (“SOFR”) or an “alternate base rate,” plus in each case an applicable margin that is determined based on Southwest’s senior unsecured debt rating. At March 31, 2024, the applicable margin is 1.125% for loans bearing interest with reference to SOFR and 0.125% for loans bearing interest with reference to the alternative base rate. At March 31, 2024, no borrowings were outstanding on the long-term portion (including under the commercial paper program), nor under the short-term portion of the facility.
Centuri has a $1.545 billion secured revolving credit and term loan multi-currency facility. Amounts can be borrowed in either Canadian or U.S. dollars. The revolving credit facility matures on August 27, 2026 and the term loan facility matures on August 27, 2028. Interest rates for the revolving credit facility and term loan facility are based on either a “base rate,” SOFR or the Canadian Dollar Offered Rate (“CDOR”), plus an applicable margin. The capacity of the line of credit portion of the facility is $400 million; related amounts borrowed and repaid are available to be re-borrowed. The term loan portion of the facility has a limit of $1.145 billion. The obligations under the credit agreement are secured by present and future ownership interests in substantially all direct and indirect subsidiaries of Centuri, substantially all of the tangible and intangible personal property of each borrower, certain of their direct and indirect subsidiaries, and all products, profits, and proceeds of the foregoing. Centuri’s assets securing the facility at March 31, 2024 totaled $2.4 billion. At March 31, 2024, $1.1 billion in borrowings were outstanding under Centuri’s combined secured revolving credit and term loan facility.
On March 22, 2024, Centuri amended the financial covenants of its revolving credit facility to increase the maximum total net leverage ratio for the fiscal quarter ending March 31, 2024 to a ratio of 5.75 to 1.00, for the fiscal quarter ending June 30, 2024 to a ratio of 6.00 to 1.00, and for the fiscal quarter ending September 30, 2024 to a ratio of 5.75 to 1.00. In addition, this amendment increased the adjusted maximum total net leverage ratio financial covenants, which are applicable in the event that a “Qualified IPO” (as defined in the amendment) is consummated, for each of the fiscal quarters ending March 31, 2024, June 30, 2024, and September 30, 2024. The terms of the Centuri credit facility otherwise remain unchanged. Following the IPO and private placement, Centuri used approximately $316 million of proceeds to pay down $156 million of debt under the existing line of credit and $160 million of debt under the term loan portion of the facility, with the remainder intended for general corporate purposes.
Short-Term Debt
Southwest Gas Holdings, Inc. has a $300 million credit facility that is scheduled to expire in December 2026 and is primarily used for short-term financing needs. Interest rates for the credit facility are calculated at either SOFR or the “alternate base rate,” plus in each case an applicable margin. There was $94 million outstanding under this credit facility as of March 31, 2024.
In April 2023, Southwest Gas Holdings, Inc. entered into a $550 million Term Loan Credit Agreement (the “Term Loan”) that matures in October 2024. Southwest Gas Holdings, Inc. utilized a majority of the proceeds to make an equity contribution to Southwest.
As indicated above, under Southwest’s $400 million credit facility, no short-term borrowings were outstanding at March 31, 2024.