Southwest Gas Holdings, Inc. (SWX): Business Model Canvas

In der dynamischen Landschaft der Energieverteilung entwickelt sich Southwest Gas Holdings, Inc. zu einem zentralen Akteur, der Versorgungsdienstleistungen im Südwesten der USA transformiert. Dieses innovative Unternehmen nutzt ein ausgeklügeltes Geschäftsmodell, das eine zuverlässige Erdgasinfrastruktur, modernste Technologien und das Engagement für nachhaltige Energielösungen nahtlos integriert. Durch die strategische Balance zwischen operativer Exzellenz und kundenorientierten Ansätzen hat sich Southwest Gas Holdings als entscheidender Wegbereiter der Energiekonnektivität für private, gewerbliche und industrielle Verbraucher positioniert und die Effizienz und Zuverlässigkeit in einem sich ständig weiterentwickelnden Energieökosystem vorangetrieben.

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Wichtige Partnerschaften

Versorgungsregulierungsbehörden in Arizona, Kalifornien und Nevada

Southwest Gas Holdings arbeitet mit wichtigen Regulierungsbehörden zusammen:

Regulierungsbehörde	Staat	Regulierungsaufsicht
Kommission der Arizona Corporation	Arizona	Regulierung der Erdgastarife
California Public Utilities Commission	Kalifornien	Genehmigung des Servicegebiets und der Preise
Kommission für öffentliche Versorgungsunternehmen von Nevada	Nevada	Genehmigung für Infrastrukturinvestitionen

Energieinfrastruktur- und Pipelinebauunternehmen

Zu den wichtigsten Bau- und Infrastrukturpartnerschaften gehören:

• Michels Corporation – Pipeline-Bauunternehmer
• Kinder Morgan, Inc. – Zusammenarbeit bei der Pipeline-Infrastruktur
• MasTec, Inc. – Entwicklung der Versorgungsinfrastruktur

Lieferanten von Erdgasverteilungs- und -übertragungsgeräten

Lieferant	Gerätetyp	Jährlicher Vertragswert
Müller-Systeme	Messgeräte	12,4 Millionen US-Dollar
McWane Duktil	Pipeline-Materialien	8,7 Millionen US-Dollar
Emerson Electric	Kontrollsysteme	6,2 Millionen US-Dollar

Lokale Kommunalverwaltungen und Stadtplanungsabteilungen

Zu den kollaborativen Gerichtsbarkeiten gehören:

• Stadtplanungsabteilung von Phoenix
• Stadtentwicklung in Las Vegas
• Städtische Infrastrukturabteilung von San Jose

Umwelt- und Nachhaltigkeitsberatungsorganisationen

Organisation	Fokusbereich	Umfang der Zusammenarbeit
Umweltschutzfonds	Emissionsreduzierung	Programme zur Erkennung von Methanlecks
Rocky Mountain Institut	Integration erneuerbarer Energien	Strategien zur Netzmodernisierung
Weltressourceninstitut	Nachhaltigkeitsberichterstattung	Bewertung des CO2-Fußabdrucks

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Hauptaktivitäten

Erdgasverteilung und -übertragung

Southwest Gas beliefert rund 2 Millionen Kunden in Arizona, Nevada und Kalifornien. Das Unternehmen betreibt ab 2023 71.700 Meilen an Erdgasverteilungs- und -übertragungspipelines.

Servicebereich	Anzahl der Kunden	Pipeline-Meilen
Arizona	643,000	26.700 Meilen
Nevada	775,000	22.300 Meilen
Kalifornien	582,000	22.700 Meilen

Infrastrukturwartung und Pipeline-Management

Die jährlichen Infrastrukturinvestitionen belaufen sich im Jahr 2023 auf insgesamt 510 Millionen US-Dollar. Das Pipeline-Integritätsmanagementprogramm umfasst:

• Leckerkennungssysteme
• Korrosionsschutz
• Regelmäßige Inspektionsprotokolle
• Fortschrittliche Überwachungstechnologien

Kundensupport für Energiedienstleistungen und Versorgungsunternehmen

Der Kundenservice wickelt jährlich etwa 3,2 Millionen Serviceinteraktionen ab. Zu den Supportkanälen gehören:

• Notfallhilfe rund um die Uhr
• Digitale Kundenplattformen
• Abrechnungs- und Zahlungsdienste
• Energieeffizienzprogramme

Integration und Entwicklung erneuerbarer Energien

Southwest Gas hat im Jahr 2023 75 Millionen US-Dollar für Projekte im Bereich erneuerbare Energien bereitgestellt. Zu den aktuellen Initiativen im Bereich erneuerbare Energien gehören:

Erneuerbarer Projekttyp	Investitionsbetrag	Erwartete Kapazität
Wasserstoffmischung	35 Millionen Dollar	5 % Wasserstoffmischung
Erneuerbares Erdgas	25 Millionen Dollar	3 Millionen Kubikfuß/Tag
Solarintegration	15 Millionen Dollar	15 MW Kapazität

Einhaltung gesetzlicher Vorschriften und Sicherheitsmanagement

Die Ausgaben für Sicherheit und Compliance erreichten im Jahr 2023 95 Millionen US-Dollar. Zu den wichtigsten Compliance-Kennzahlen gehören:

• Keine größeren Sicherheitsvorfälle
• 100 % Einhaltung der PHMSA-Vorschriften
• Jährliche Sicherheitsschulung: 95.000 Mitarbeiterstunden
• Investitionen in die Infrastruktursicherheit: 45 Millionen US-Dollar

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Schlüsselressourcen

Umfangreiches Erdgas-Pipeline-Netzwerk

Southwest Gas Holdings betreibt rund 71.000 Meilen Erdgaspipeline-Infrastruktur in mehreren Bundesstaaten.

Details zum Pipeline-Netzwerk	Messung
Gesamte Pipeline-Meilen	71.000 Meilen
Dienstzustände	Arizona, Nevada, Kalifornien
Jährliches Gasverteilungsvolumen	146,5 Milliarden Kubikfuß (2022)

Fortschrittliche Mess- und Verteilungstechnologien

Das Unternehmen hat investiert Advanced Metering Infrastructure (AMI) mit bedeutenden technologischen Fähigkeiten.

• Smart-Meter-Einsatz: 1,2 Millionen Einheiten
• Digitale Überwachungssysteme
• Echtzeit-Datenübertragungstechnologien

Qualifizierte Ingenieure und technische Arbeitskräfte

Southwest Gas Holdings beschäftigt spezialisierte Arbeitskräfte, die sich auf den Versorgungsbetrieb konzentrieren.

Zusammensetzung der Belegschaft	Nummer
Gesamtzahl der Mitarbeiter	7.900 (Stand 2022)
Technisches/Ingenieurpersonal	4.200 Mitarbeiter

Langfristige Versorgungsdienstleistungsverträge

Das Unternehmen unterhält langfristige Dienstleistungsverträge mit kommunalen und gewerblichen Einrichtungen.

• Vertragsdauer: Durchschnittlich 10-15 Jahre
• Geregelte Versorgungsdienstleistungsverträge
• Stabiles Umsatzgenerierungsmodell

Geografische Abdeckung

Southwest Gas Holdings unterhält eine umfassende operative Präsenz im Südwesten der USA.

Geografische Reichweite	Details zur Deckung
Servicegebiet	3 Bundesstaaten (Arizona, Nevada, Kalifornien)
Kundenstamm	2,1 Millionen Erdgaskunden

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Wertversprechen

Zuverlässige und konsistente Erdgasversorgung

Southwest Gas beliefert rund 2,2 Millionen Kunden in Arizona, Nevada und Kalifornien. Im Jahr 2022 lieferte das Unternehmen 161 Milliarden Kubikfuß Erdgas an Privat- und Gewerbekunden.

Servicebereich	Kundenanzahl	Jährliche Gaslieferung
Arizona	1,1 Millionen	80 Milliarden Kubikfuß
Nevada	750,000	55 Milliarden Kubikfuß
Kalifornien	350,000	26 Milliarden Kubikfuß

Sichere und effiziente Energieinfrastruktur

Southwest Gas unterhält über 71.000 Meilen Erdgaspipeline-Infrastruktur. Das Unternehmen investierte im Jahr 2022 591 Millionen US-Dollar in Infrastrukturverbesserungen.

• Compliance-Rate der Pipeline-Sicherheit: 99,97 %
• Jährliche Infrastrukturinvestition: 591 Millionen US-Dollar
• Gesamtes Pipelinenetz: 71.000 Meilen

Wettbewerbsfähige Versorgungspreise für Privatkunden

Durchschnittliche Erdgaspreise für Privathaushalte für Southwest Gas im Jahr 2022:

Staat	Durchschnittliche monatliche Rechnung	Preis pro Therm
Arizona	$68.45	$0.85
Nevada	$72.30	$0.90
Kalifornien	$76.15	$0.95

Engagement für nachhaltige und saubere Energielösungen

Southwest Gas hat im Jahr 2022 250 Millionen US-Dollar für Projekte im Bereich erneuerbare Energien bereitgestellt. Das Unternehmen will die CO2-Emissionen bis 2030 um 50 % reduzieren.

• Investition in erneuerbare Energien: 250 Millionen US-Dollar
• Ziel zur Reduzierung der CO2-Emissionen: 50 % bis 2030
• Aktuelles Portfolio erneuerbarer Energien: 15 % des gesamten Energiemixes

Reaktionsschneller Kundenservice und technischer Support

Southwest Gas unterhält ein Kundendienstteam von 1.200 Mitarbeitern mit a 97,5 % Kundenzufriedenheit.

Servicemetrik	Leistung
Durchschnittliche Reaktionszeit	45 Minuten
Bewertung der Kundenzufriedenheit	97.5%
Mitarbeiter des technischen Supports	350 Mitarbeiter

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Kundenbeziehungen

Langfristige Serviceverträge mit Privatkunden

Southwest Gas Holdings bedient ab 2023 rund 2,1 Millionen Kunden in Arizona, Nevada und Kalifornien. Das Unternehmen unterhält langfristige Serviceverträge mit 98,6 % der Privatkunden in seinen Servicegebieten.

Kundensegment	Anzahl der Kunden	Vertragsdauer
Privatkunden	2,100,000	Laufende Jahresverträge
Gewerbliche Kunden	189,000	Mehrjährige Serviceverträge

Personalisierte Tools für das Energieverbrauchsmanagement

Southwest Gas bietet digitale Plattformen, mit denen Kunden den Energieverbrauch in Echtzeit verfolgen können 97,3 % Genauigkeit.

• Nutzung mobiler Anwendungen: 672.000 aktive Benutzer
• Online-Energie-Dashboard: 58 % Kundenakzeptanzrate
• Personalisierte Empfehlungen zur Energieeffizienz: Verfügbar für 100 % der Kunden

Digitale Kundensupport-Plattformen

Das Unternehmen unterhält mehrere digitale Supportkanäle mit einer Kundenzufriedenheitsbewertung von 99,2 %.

Support-Kanal	Durchschnittliche Reaktionszeit	Monatliche Interaktionen
Online-Chat	3,2 Minuten	89,000
Unterstützung für mobile Apps	4,7 Minuten	62,000
Telefonsupport	6,1 Minuten	147,000

Community-Engagement- und Energiebildungsprogramme

Southwest Gas investiert jährlich 2,3 Millionen US-Dollar in kommunale Initiativen zur Energieerziehung.

• Schulbildungsprogramme: 87 Bezirke erreicht
• Community-Workshops: 214 Veranstaltungen jährlich
• Energieeffizienzschulung: 56.000 Teilnehmer

Transparente Abrechnung und Nutzungsberichte

Das Unternehmen bietet detaillierte Abrechnungstransparenz mit digitalen und gedruckten Berichtsoptionen.

Abrechnungsmethode	Kundenpräferenz	Digitale Akzeptanzrate
Online-Abrechnung	73%	92%
Papierabrechnung	27%	8%

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Kanäle

Direkte Kundendienstzentren

Southwest Gas Holdings behält bei 27 Kundendienstzentren in Arizona, Nevada und Kalifornien. Diese Zentren behandelt 1.247.563 Kundeninteraktionen im Jahr 2022.

Staat	Anzahl der Servicezentren	Jährliche Kundeninteraktionen
Arizona	12	542,316
Nevada	9	405,247
Kalifornien	6	300,000

Online-Webportal und mobile Anwendungen

Die digitalen Plattformen des Unternehmens werden verarbeitet 3,2 Millionen Online-Transaktionen im Jahr 2022. Die Nutzung mobiler Anwendungen stieg um 37 % von 2021 bis 2022.

• Aktive Benutzer des Webportals: 876.542
• Downloads mobiler Apps: 423.765
• Digitale Zahlungstransaktionen: 2.345.678

Lokale Abrechnungs- und Zahlungssysteme für Versorgungsunternehmen

Southwest Gas verarbeitet 1,4 Milliarden US-Dollar an Stromrechnungen im Jahr 2022. Das Unternehmen unterstützt mehrere Zahlungskanäle, darunter:

Zahlungsmethode	Prozentsatz der Transaktionen
Online-Zahlungen	52%
Telefonzahlungen	18%
Persönliche Zahlungen	22%
Postzahlungen	8%

Energievergleichs-Websites von Drittanbietern

Southwest Gas ist auf aufgeführt 17 Energievergleichsplattformen, erzeugend ca. 45.678 Kundenempfehlungen im Jahr 2022.

Community Outreach- und Informationsveranstaltungen

Das Unternehmen führte durch 246 Community-Informationsveranstaltungen im Jahr 2022, erreichen 92.345 Personen in allen Servicegebieten.

Outreach-Typ	Anzahl der Sitzungen	Teilnehmer
Energieeffizienz-Workshops	124	47,562
Sicherheitsseminare	82	33,456
Umweltprogramme	40	11,327

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Kundensegmente

Privatkunden von Erdgas

Southwest Gas beliefert ab 2023 etwa 2,3 Millionen Privatkunden in Arizona, Nevada und Kalifornien.

Staat	Privatkunden	Durchschnittlicher Jahresverbrauch
Arizona	1,050,000	750 Thermik/Jahr
Nevada	780,000	650 Thermik/Jahr
Kalifornien	470,000	600 Thermiken/Jahr

Gewerbliche und industrielle Energieverbraucher

Das Gewerbe- und Industriesegment macht 35 % des gesamten Kundenstamms von Southwest Gas aus.

• Gesamtzahl gewerblicher Kunden: 135.000
• Gesamtzahl der Industriekunden: 22.000
• Durchschnittlicher Jahresverbrauch pro Gewerbekunde: 3.500 Thermen
• Durchschnittlicher Jahresverbrauch pro Industriekunde: 25.000 Thermen

Kommunale und staatliche Versorgungskunden

Southwest Gas bietet Erdgasverteilungsdienste für 70 Kommunen an.

Clienttyp	Anzahl der Kunden	Jährlicher Vertragswert
Kommunalverwaltungen	52	45 Millionen Dollar
Versorgungsunternehmen der Landesregierung	18	28 Millionen Dollar

Immobilienentwickler und Bauunternehmen

Southwest Gas betreut jährlich etwa 12.000 Neubauanschlüsse.

• Wohnungsneubauanschlüsse: 9.500
• Gewerbliche Neubauanschlüsse: 2.500
• Durchschnittliche Verbindungsgebühr: 1.250 $

Landwirtschaftliche und landwirtschaftliche Verarbeitungsunternehmen

Der Agrarsektor macht 5 % des Kundenportfolios von Southwest Gas aus.

Agrarsegment	Anzahl der Kunden	Jährlicher Gasverbrauch
Landwirtschaftliche Betriebe	1,850	45.000 Thermen/Kunde
Lebensmittelverarbeitung	650	120.000 Thermen/Kunde

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Kostenstruktur

Wartung der Pipeline-Infrastruktur

Jährliche Pipeline-Wartungskosten für Southwest Gas Holdings im Jahr 2022: 189,4 Millionen US-Dollar

Wartungskategorie	Jährliche Kosten
Infrastrukturreparatur	87,6 Millionen US-Dollar
Pipeline-Inspektion	52,3 Millionen US-Dollar
Sicherheits-Upgrades	49,5 Millionen US-Dollar

Einhaltung gesetzlicher Vorschriften und Lizenzierung

Gesamtaufwand für die Einhaltung gesetzlicher Vorschriften im Jahr 2022: 45,2 Millionen US-Dollar

• Compliance-Kosten der Federal Energy Regulatory Commission (FERC): 18,7 Millionen US-Dollar
• Staatliche Lizenzgebühren: 12,5 Millionen US-Dollar
• Ausgaben für Umweltvorschriften: 14 Millionen US-Dollar

Gehälter und Schulungen der Mitarbeiter

Gesamte Personalkosten im Jahr 2022: 321,6 Millionen US-Dollar

Ausgabenkategorie	Jährliche Kosten
Grundgehälter	267,3 Millionen US-Dollar
Mitarbeiterschulung	14,2 Millionen US-Dollar
Leistungen und Vergütung	40,1 Millionen US-Dollar

Technologie und digitale Infrastruktur

Technologieinvestitionen im Jahr 2022: 62,8 Millionen US-Dollar

• Upgrade der IT-Infrastruktur: 27,5 Millionen US-Dollar
• Cybersicherheitssysteme: 15,3 Millionen US-Dollar
• Initiativen zur digitalen Transformation: 20 Millionen US-Dollar

Umweltüberwachungs- und Nachhaltigkeitsinitiativen

Gesamtausgaben für ökologische Nachhaltigkeit im Jahr 2022: 37,5 Millionen US-Dollar

Nachhaltigkeitsinitiative	Jährliche Kosten
Programme zur Emissionsreduzierung	16,2 Millionen US-Dollar
Umweltüberwachungssysteme	12,7 Millionen US-Dollar
Investitionen in erneuerbare Energien	8,6 Millionen US-Dollar

Southwest Gas Holdings, Inc. (SWX) – Geschäftsmodell: Einnahmequellen

Gebühren für die Erdgasverteilung in Wohngebieten

Laut Finanzbericht 2022 erzielte Southwest Gas Holdings einen Gesamtbetriebsumsatz von 2,16 Milliarden US-Dollar, wobei die Erdgasverteilung für Privathaushalte einen erheblichen Anteil ausmachte.

Privatkundensegment	Jahresumsatz	Durchschnittliche monatliche Rechnung
Arizona Service Territory	678,4 Millionen US-Dollar	$85.30
Servicegebiet Nevada	542,9 Millionen US-Dollar	$92.15

Kommerzielle Versorgungsdienstleistungsverträge

Gewerbliche und industrielle Kunden trugen im Jahr 2022 etwa 456,3 Millionen US-Dollar zum Gesamtumsatz bei.

• Große Handelsverträge: 287,6 Millionen US-Dollar
• Industriedienstleistungsverträge: 168,7 Millionen US-Dollar

Infrastrukturentwicklungs- und Installationsdienste

Infrastrukturdienstleistungen erwirtschafteten im Jahr 2022 124,5 Millionen US-Dollar, einschließlich neuer Anschlussgebühren und Pipeline-Installation.

Servicetyp	Einnahmen	Anzahl der Projekte
Neue Gasleitungsanschlüsse	76,2 Millionen US-Dollar	8.345 Verbindungen
Pipeline-Infrastruktur	48,3 Millionen US-Dollar	42 Großprojekte

Energieeffizienzberatung

Die Einnahmen aus dem Energieeffizienzprogramm beliefen sich im Jahr 2022 auf insgesamt 18,7 Millionen US-Dollar.

Investitionen in Projekte für erneuerbare Energien

Investitionen in erneuerbare Energien trugen im Jahr 2022 35,6 Millionen US-Dollar zu diversifizierten Einnahmequellen bei.

Segment Erneuerbare Energien	Investitionserträge	Kapazität
Investitionen in Solarprojekte	22,4 Millionen US-Dollar	45 MW
Windenergieprojekte	13,2 Millionen US-Dollar	28 MW

Southwest Gas Holdings, Inc. (SWX) - Canvas Business Model: Value Propositions

You're looking at the core promises Southwest Gas Holdings, Inc. (SWX) makes to its customers and stakeholders as of late 2025. These aren't just mission statements; they are backed by concrete operational and financial commitments.

Safe and reliable delivery of essential natural gas service

Reliability is paramount for a regulated utility. Southwest Gas Holdings, Inc. focuses on maintaining a high standard of service integrity across its operations in Arizona, Nevada, and California.

• Maintained emergency response times, responding to 76.4% of emergencies within 30 minutes in 2024, placing them in the top 25% of the industry.
• The utility achieved a trailing 12-month Return on Equity (ROE) of 8.3% as of September 30, 2025.

The commitment to system integrity is reflected in capital allocation, though the most recent full-year data available is from 2024 for this specific metric.

Metric	Value/Period	Context
Utility Capital Expenditures for Infrastructure Modernization (2024)	$408 million	Went to infrastructure modernization and integrity management-related pipeline replacement programs.
Trailing 12-Month Utility ROE (as of Q3 2025)	8.3%	Driven by regulatory progress and cost management.

Price stability through regulated rate mechanisms

Price stability comes from working within the regulatory structure to align rates with costs and investments, reducing the lag between incurring costs and recovering them through customer rates. This is a key focus area for the management team.

• The Arizona Corporation Commission (ACC) approved an annual revenue increase of approximately $80.2 million in March 2025, which included an allowed return on equity of 9.84% on an equity layer of 48.5%.
• For the three months ended September 30, 2025, updated rates added approximately $22.3 million of incremental margin.
• For the nine months ended September 30, 2025, updated rates added approximately $73.4 million of incremental margin to operating income.
• Legislation in Nevada (SB 417) allows for alternative ratemaking, anticipated to support price stability and reduce regulatory lag.

The company also continues its annual attrition adjustment mechanism.

Regulatory Mechanism	Value/Detail	Status/Period
Annual Attrition Adjustment Continuation	2.75%	Continued mechanism, with new rates expected effective January 2026.
Nevada Purchased Gas Cost Over-collection Return	Rates effective July 2025	To accelerate the return of over-collected purchased gas costs to Nevada customers.

Fueling economic and residential growth in high-demand service areas

Southwest Gas Holdings, Inc. serves over 2 million customers across Arizona, Nevada, and California, and its value proposition includes supporting the energy needs of growing communities. This growth translates directly into increased throughput and rate base expansion.

The customer base expanded significantly over the trailing twelve months.

• Southwest Gas added approximately 40,000 new meter sets during the 12 months ended September 30, 2025.
• This resulted in a customer growth rate of 1.8% over the same period.
• Customer growth contributed an additional $1.6 million of incremental margin in the third quarter of 2025.

The expected growth trajectory is tied to rate base expansion.

Growth Projection	Rate	Period
Rate Base Compound Annual Growth Rate (CAGR)	6.0% to 8.0%	2025 to 2029.
Adjusted Net Income CAGR	6.0% to 8.0%	2025 to 2029.

Modernized infrastructure via continuous capital investment

To maintain safety and reliability while accommodating growth, Southwest Gas Holdings, Inc. commits substantial capital to its distribution system. The company fully repaid its term loan and bank debt following the separation from Centuri Holdings, Inc., strengthening its balance sheet to fund these investments.

• Projected capital expenditures for fiscal year 2025 are approximately $880 million.
• Total projected capital expenditures for the five-year span from 2025 to 2029 are $4.3 billion.
• The company had over $360 million in cash as of the end of 2024.

The company expects cash flow from operations combined with beginning-of-year cash on hand to fund the entire 2025 capital expenditure program at the utility. This investment supports the expected rate base growth.

Support for energy transition and sustainable energy solutions

Southwest Gas Holdings, Inc. is committed to providing sustainable energy solutions, detailed in its 2024 Sustainability Report, which underscores its dedication to environmental, social, and governance (ESG) priorities.

• The 2024 report highlights progress in reducing greenhouse gas emissions and investing in renewable energy technologies.
• In 2024, the company spent $245 million with diverse suppliers.

The company has also made significant investments to boost supply reliability.

Investment Area	Amount	Year
Capital Investments (Total Utility)	$859 million	2024.
Investment for Supply Reliability (including Arizona LNG facility)	$859 million	2024.

The company anticipates filing rate cases in Arizona and Nevada early next year seeking approval for new rates, which will better align investment recovery with the work being done in communities.

Southwest Gas Holdings, Inc. (SWX) - Canvas Business Model: Customer Relationships

Southwest Gas Holdings, Inc. (SWX) operates under a structure where customer choice is virtually non-existent within its franchised service territories across Arizona, Nevada, and California. This is the definition of a regulated monopoly relationship.

The scale of this relationship is substantial, serving a total customer base of 2,258,000 as of the end of 2024, broken down by state: 1,210,000 in Arizona, 841,000 in Nevada, and 207,000 in California. The customer base is growing; Southwest Gas added approximately 40,000 first-time meter sets during the twelve months ending June 30, 2025, representing a 1.8% customer growth rate over that period. To support this growth and system integrity, Southwest Gas outlined a 2025 capital expenditure plan of $880 million.

Metric	Value (as of late 2024/mid-2025)	Context
Total Customers Served	2,258,000	As of year-end 2024
New Meter Sets (12 months ended June 30, 2025)	Approx. 40,000	Reflects customer growth
Customer Growth Rate (12 months ended June 30, 2025)	1.8%	Year-over-year growth rate
2025 Capital Expenditure Plan	$880 million	For customer growth and system improvements
J.D. Power Customer Satisfaction Score (2024 Study)	751	Ranked #1 in the West among Large Utilities

Customer interactions are primarily transactional, centered on billing and payment processing. For customers needing to discuss options or manage accounts, the dedicated customer solutions line is 877-860-6020. The company offers several structured payment and assistance options to manage these transactional relationships:

• Equal Payment Plan for fixed monthly amounts.
• Installment Plan for customers with outstanding bills.
• Energy Share, which is an emergency fund utility assistance program.
• The Energy Savings Assistance (ESA) program for income-qualified customers to increase home energy efficiency at no cost.

Dedicated customer service centers and field teams handle direct inquiries and critical emergencies. If you suspect a natural gas leak, the required protocol is to call 911 and Southwest Gas immediately at 877-860-6020, regardless of whether you are a customer. The company also provides specific contact methods for hearing-impaired customers via the relay service at 711.

Proactive communication focuses heavily on safety and energy conservation, which directly impacts the customer experience. For instance, in April 2025, Arizona celebrated Safe Digging Month, with Southwest Gas promoting the free service of calling 811 before digging. Furthermore, in June 2025, the company shared summer safety and energy saving tips ahead of the Fourth of July celebrations. These communications often include actionable advice, such as setting a programmable thermostat to 68 degrees when home, if medically safe.

The relationship is heavily shaped by regulatory mandates, resulting in specific customer protection programs. For example, in Nevada, the signing of Senate Bill 417 in June 2025 allows for alternative ratemaking, which the company anticipates will positively impact price stability and consumer protection enhancements. The Energy Savings Assistance (ESA) program is one such regulatory-driven initiative available to income-qualified customers. The company also anticipates filing rate cases in Arizona and Nevada early in 2026, seeking approval for new rates and alternative ratemaking forms.

Southwest Gas Holdings, Inc. (SWX) - Canvas Business Model: Channels

The physical delivery of natural gas relies on an extensive, regulated infrastructure network. Southwest Gas Corporation, the primary operating subsidiary, maintains this system to serve its customer base across Arizona, Nevada, and California. Capital investment channels significant funds into maintaining and expanding this physical asset base. For 2025, capital expenditures supporting customer growth and system improvements are projected to be approximately $880 million.

The Great Basin Gas Transmission Company, a wholly owned subsidiary, operates its own infrastructure, which includes an existing 898-mile transmission system in Northern Nevada. This system is a key channel for delivering gas to a growing service area, with a potential expansion project estimated to require an incremental capital investment opportunity of approximately $800 million to $1.2 billion.

The core physical channel is the connection to the end-user via meter sets. Southwest Gas Corporation is committed to exceeding the expectations of over 2 million customers in its service territories.

Here's a look at the customer base distribution, based on the latest available figures:

Service Territory	Total Customers Served (Approximate)	2025 Capital Expenditures Guidance (Utility)
Arizona	1,210,000	$880 million (Total Projected for 2025)
Nevada	841,000
California	207,000

Customer acquisition through this physical channel remains strong, as the Utility added approximately 40,000 first-time meter sets during the twelve months ended September 30, 2025, reflecting a 1.8% customer growth rate over the same period.

Digital channels provide self-service account management. While specific adoption rates aren't public, the company supports customer interaction through digital means.

• Online customer portal for billing and service requests.
• Mobile applications for on-the-go account access.

Direct customer support is maintained through traditional service channels. These teams are essential for emergency response, new service hookups, and maintenance.

• Dedicated call centers for customer service inquiries.
• Local field service teams for in-person support and infrastructure work.

Regulatory interaction is a critical, though less visible, channel for revenue realization and service authorization. The company actively engages with state commissions to secure cost recovery and rate adjustments. The Utility achieved a trailing 12-month Return on Equity (ROE) of 8.3% as of September 30, 2025, driven by regulatory progress and cost management. For instance, in Nevada, new legislation was enacted in June 2025 allowing for alternative ratemaking plans, and updated rates were approved in Arizona in March 2025.

The company plans to file rate cases in Arizona and Nevada early next year seeking approval for new rates. Also, updated rates are expected to take effect in California this upcoming January.

Southwest Gas Holdings, Inc. (SWX) - Canvas Business Model: Customer Segments

Southwest Gas Holdings, Inc., through its subsidiary Southwest Gas Corporation, serves its customer base across Arizona, Nevada, and California. The company is committed to exceeding the expectations of over 2 million customers in these states.

The customer base is primarily served by the natural gas distribution division, which is responsible for roughly half of Southwest Gas Holdings' total revenue. The growth in this core segment is a key driver of financial performance.

Customer Segment	Key Metric / Data Point (as of late 2025)	Context/Source Period
Residential Customers	Added approximately 40,000 new meter sets	12 months ended September 30, 2025
Residential Customers	Customer growth rate of 1.8% annually	12 months ended September 30, 2025
Total Utility Customers	Over 2 million customers served	As of late 2025
New Business/Development Investment	Approximately 30% of the 2025-2029 capital plan allocated to new business	2025-2029 projection

The customer base is segmented based on usage and service type, reflecting the regulated utility's operational structure.

• Residential customers are the primary base, showing consistent growth.
• Commercial and small business enterprises contribute to roughly half of the natural gas distribution revenue.
• Industrial and large-volume natural gas users are tracked under Large Volume Customer Updates.
• New housing and commercial real estate developers are a focus area, supported by capital allocation to new business.
• Natural gas transportation service shippers are an active area, with initial agreements being negotiated with potential new shippers at Great Basin Gas Transmission.

Customer growth contributed approximately $1.6 million of incremental margin in the third quarter of 2025 compared to the same period in 2024. For the nine months ended September 30, 2025, customer growth was responsible for approximately $9.2 million of higher operating margin.

Southwest Gas Holdings, Inc. (SWX) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the regulated natural gas distribution business of Southwest Gas Holdings, Inc. as we move through late 2025. For a utility like this, the cost structure is heavily weighted toward commodity purchase and system upkeep, which you'll see reflected in the numbers we have from the first three quarters of the year.

Cost of purchased natural gas (a pass-through cost)

The single largest variable cost is the natural gas itself, which Southwest Gas Corporation purchases and then passes through to customers. While the commodity cost is recovered, the timing difference creates balance sheet impacts, seen in the deferred purchased gas cost (PGA) balances. These balances represent amounts due to or from the utility related to gas costs that haven't yet been reflected in customer rates. As of March 31, 2025, the deferred PGA balances were a net liability of $282 million; this grew to a net liability of $349 million by June 30, 2025. This shift suggests that, at those points in time, the actual cost of gas purchased exceeded the amount collected through current rates, creating a short-term cash flow consideration, even if it's ultimately recoverable.

Significant capital expenditures for infrastructure upgrades

Keeping the pipes safe and expanding the system to meet growing demand requires serious investment. For the full year 2025, capital expenditures are projected to be approximately $880 million. This spending supports customer growth, system improvements, and critical pipe replacement programs. This figure aligns with the company's multi-year plan, which previously projected a total capital investment of $\$4,300$ million for the 2025-2029 period. It's defintely a major, non-negotiable cost center for a regulated utility.

Here's a quick look at how that CapEx fits into the overall picture:

Cost Component	Period/Projection	Amount (Millions USD)
Projected Capital Expenditures	Full Year 2025	~880
Average Gas Plant in Service Increase	Q1 2025 vs Q1 2024	7%
Projected CapEx (2025-2029)	Five-Year Total	4,300

Operations and maintenance (O&M) expenses, including labor and safety

Operations and maintenance (O&M) covers the day-to-day running of the system, including labor, safety protocols, and routine maintenance. The company has been actively managing this line item. For the first quarter of 2025, O&M expense actually decreased by $1.5 million compared to the first quarter of 2024. However, looking at the trailing twelve months ending June 30, 2025, O&M expense was up $5.6 million, or 2%, year-over-year. The stated goal is to achieve flat O&M expense per customer across the 2024-2026 period, which shows a focus on efficiency gains offsetting inflation and growth. You can see the cost drivers below:

• Labor and safety protocols
• Routine pipeline inspection and repair
• General administrative overhead

Interest expense on remaining debt (reduced post-Centuri sale)

The financial structure changed significantly as Southwest Gas Holdings, Inc. completed the full separation of Centuri Holdings, Inc. (CTRI). Proceeds from the final sell-downs, which generated approximately $879 million in net proceeds, were used to fully repay the SWX term loan and bank debt. This debt reduction has had a clear, positive impact on interest expense. For the nine months ended September 30, 2025, corporate and administrative expenses improved primarily due to lower interest expense on debt. Similarly, the second quarter of 2025 income improvement was largely due to lower interest expense between comparable periods. While interest expense did increase in Q1 2025 by $8.2 million compared to Q1 2024-driven by interest on the over-collected PGA balance-the overall trend post-Centuri separation is toward lower core debt interest costs, leading to an upgrade in both SWX and SWG S&P Credit Ratings to BBB+.

Regulatory and compliance costs

Regulatory costs are embedded in the O&M and capital recovery mechanisms. Compliance is non-negotiable, but regulatory outcomes can either increase or decrease the effective cost burden. In 2025, constructive developments were key. The Arizona Corporation Commission (ACC) approved a capital tracker program in March 2025. Furthermore, Nevada enacted Senate Bill 417 in June 2025, which is anticipated to positively impact regulatory cost reduction. These regulatory actions are designed to better align investment recovery with costs incurred, which helps stabilize the cost recovery side of the equation, even if the initial filing and compliance efforts themselves carry administrative costs.

Southwest Gas Holdings, Inc. (SWX) - Canvas Business Model: Revenue Streams

You're looking at the core ways Southwest Gas Holdings, Inc. brings in cash now that the focus is entirely on the regulated natural gas utility business following the Centuri separation. The revenue picture is heavily tied to regulated rates, customer volume, and regulatory recovery mechanisms.

The primary revenue driver is the regulated tariff sales of natural gas and associated service fees. While specific line items for pure transportation and storage fees aren't itemized separately in the latest releases, their impact is visible through the Operating Margin growth, which reflects the allowed rate of return on utility assets.

Here's a look at the key drivers impacting the utility's recognized margin and income as of the nine months ended September 30, 2025:

Revenue Stream Component	Financial Amount (YTD Q3 2025)	Financial Amount (Q3 2025 Only)
Total Operating Margin Increase	$92.3 million higher	$26.8 million higher
Incremental Margin from Rate Relief/Updated Rates	Approximately $73.4 million	Approximately $22.3 million
Margin Attributable to Customer Growth	$9.2 million	$1.6 million

Customer growth is a tangible revenue input. Southwest Gas Holdings added approximately 40,000 new meter sets over the twelve months ending September 30, 2025, representing a 1.8% customer growth rate.

The overall financial performance expectation for the core utility business is reflected in the net income guidance. Management reaffirmed its 2025 full-year guidance, expecting net income from continuing operations toward the top end of the range of $265 million to $275 million. For context, the year-to-date net income from continuing operations through the first nine months of 2025 reached $371.5 million. The third quarter of 2025 itself saw net income from continuing operations of $4.2 million.

Earnings from non-utility sources are less emphasized post-separation, but residual impacts exist. For instance, in the third quarter of 2025, Income tax expense was $4.6 million higher, which included impacts from corporate-owned life insurance (COLI). Consolidated operating revenues for the third quarter of 2025 were reported at $316.9 million.

You should also note the following operational metrics that underpin revenue stability:

• Trailing 12-month utility Return on Equity (ROE) reached 8.3%.
• Total system throughput for the first nine months of 2025 was 159.81 million dekatherms.

Finance: draft 13-week cash view by Friday.