Southwest Gas Holdings, Inc. (SWX): Modelo de Negocio Canvas [Actualizado en Ene-2025]

En el panorama dinámico de la distribución de energía, Southwest Gas Holdings, Inc. surge como un jugador fundamental que transforma los servicios de servicios públicos en todo el suroeste de los Estados Unidos. Esta empresa innovadora aprovecha un modelo de negocio sofisticado que integra perfectamente la infraestructura de gas natural confiable, tecnologías de vanguardia y un compromiso con soluciones de energía sostenible. Al equilibrar estratégicamente la excelencia operativa con enfoques centrados en el cliente, Southwest Gas Holdings se ha posicionado como un facilitador crítico de conectividad energética para los consumidores residenciales, comerciales e industriales, impulsando la eficiencia y la confiabilidad en un ecosistema de energía en constante evolución.

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: asociaciones clave

Reguladores de servicios públicos en Arizona, California y Nevada

Southwest Gas Holdings colabora con cuerpos regulatorios clave:

Agencia reguladora	Estado	Supervisión regulatoria
Comisión de la Corporación de Arizona	Arizona	Regulación de la tasa de gas natural
Comisión de servicios públicos de California	California	Territorio de servicio y aprobación de precios
Comisión de servicios públicos de Nevada	Nevada	Autorización de inversión de infraestructura

Infraestructura energética y empresas de construcción de tuberías

Las asociaciones clave de construcción e infraestructura incluyen:

• Michels Corporation - Contratista de construcción de tuberías
• Kinder Morgan, Inc. - Colaboración de infraestructura de tuberías
• Mastec, Inc. - Desarrollo de infraestructura de servicios públicos

Proveedores de equipos de distribución y transmisión de gas natural

Proveedor	Tipo de equipo	Valor anual del contrato
Sistemas de Mueller	Equipo de medición	$ 12.4 millones
McWane Ductil	Materiales de tubería	$ 8.7 millones
Emerson Electric	Sistemas de control	$ 6.2 millones

Gobiernos municipales locales y departamentos de planificación urbana

Las jurisdicciones colaborativas incluyen:

• Departamento de Planificación de la Ciudad de Phoenix
• Desarrollo urbano de Las Vegas
• División de Infraestructura Municipal de San José

Organizaciones de consultoría ambiental y de sostenibilidad

Organización	Área de enfoque	Alcance de colaboración
Fondo de Defensa Ambiental	Reducción de emisiones	Programas de detección de fugas de metano
Instituto Rocky Mountain	Integración de energía renovable	Estrategias de modernización de la cuadrícula
Instituto de Recursos Mundiales	Informes de sostenibilidad	Evaluación de huella de carbono

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: actividades clave

Distribución y transmisión de gas natural

Southwest Gas atiende a aproximadamente 2 millones de clientes en Arizona, Nevada y California. La compañía opera 71,700 millas de tuberías de distribución y transmisión de gas natural a partir de 2023.

Vía de Servício	Número de clientes	Millas de tubería
Arizona	643,000	26,700 millas
Nevada	775,000	22,300 millas
California	582,000	22,700 millas

Mantenimiento de infraestructura y gestión de tuberías

La inversión de infraestructura anual totaliza $ 510 millones en 2023. El programa de gestión de integridad de la tubería cubre:

• Sistemas de detección de fugas
• Prevención de corrosión
• Protocolos de inspección regulares
• Tecnologías de monitoreo avanzado

Servicio de energía y atención al cliente de servicios públicos

Las operaciones de servicio al cliente manejan aproximadamente 3.2 millones de interacciones de servicio anualmente. Los canales de soporte incluyen:

• Respuesta de emergencia 24/7
• Plataformas de clientes digitales
• Servicios de facturación y pago
• Programas de eficiencia energética

Integración y desarrollo de energía renovable

Southwest Gas comprometió $ 75 millones a proyectos de energía renovable en 2023. Las iniciativas renovables actuales incluyen:

Tipo de proyecto renovable	Monto de la inversión	Capacidad esperada
Mezcla de hidrógeno	$ 35 millones	5% de mezcla de hidrógeno
Gas natural renovable	$ 25 millones	3 millones de pies cúbicos/día
Integración solar	$ 15 millones	Capacidad de 15 MW

Cumplimiento regulatorio y gestión de seguridad

Los gastos de seguridad y cumplimiento alcanzaron $ 95 millones en 2023. Las métricas de cumplimiento clave incluyen:

• Cero incidentes de seguridad importantes
• 100% de cumplimiento regulatorio de PHMSA
• Capacitación anual de seguridad: 95,000 horas de empleado
• Inversiones de seguridad de infraestructura: $ 45 millones

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: recursos clave

Extensa red de tuberías de gas natural

Southwest Gas Holdings opera aproximadamente 71,000 millas de infraestructura de tuberías de gas natural en múltiples estados.

Detalles de la red de tuberías	Medición
Millas de tuberías totales	71,000 millas
Estados de servicio	Arizona, Nevada, California
Volumen anual de distribución de gas	146.5 mil millones de pies cúbicos (2022)

Tecnologías avanzadas de medición y distribución

La compañía ha invertido en Infraestructura de medición avanzada (AMI) con capacidades tecnológicas significativas.

• Implementación del medidor inteligente: 1.2 millones de unidades
• Sistemas de monitoreo digital
• Tecnologías de transmisión de datos en tiempo real

Ingeniería especializada y fuerza laboral técnica

Southwest Gas Holdings emplea una fuerza laboral especializada dedicada a las operaciones de servicios públicos.

Composición de la fuerza laboral	Número
Total de empleados	7,900 (a partir de 2022)
Personal técnico/de ingeniería	4.200 empleados

Contratos de servicio de servicios públicos a largo plazo

La Compañía mantiene acuerdos de servicio a largo plazo con entidades municipales y comerciales.

• Duración del contrato: promedio de 10 a 15 años
• Acuerdos de servicio de servicios públicos regulados
• Modelo de generación de ingresos estables

Cobertura geográfica

Southwest Gas Holdings mantiene una amplia presencia operativa en el suroeste de los Estados Unidos.

Alcance geográfico	Detalles de cobertura
Territorio de servicio	3 estados (Arizona, Nevada, California)
Base de clientes	2.1 millones de clientes de gas natural

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: propuestas de valor

Suministro de gas natural confiable y consistente

Southwest Gas atiende a aproximadamente 2.2 millones de clientes en Arizona, Nevada y California. En 2022, la compañía entregó 161 mil millones de pies cúbicos de gas natural a clientes residenciales y comerciales.

Vía de Servício	Conteo de clientes	Entrega anual de gas
Arizona	1.1 millones	80 mil millones de pies cúbicos
Nevada	750,000	55 mil millones de pies cúbicos
California	350,000	26 mil millones de pies cúbicos

Infraestructura energética segura y eficiente

Southwest Gas mantiene más de 71,000 millas de infraestructura de tuberías de gas natural. La compañía invirtió $ 591 millones en mejoras de infraestructura en 2022.

• Tasa de cumplimiento de seguridad de la tubería: 99.97%
• Inversión anual de infraestructura: $ 591 millones
• Red total de tuberías: 71,000 millas

Precios de servicios públicos competitivos para clientes residenciales

Tasas promedio de gas natural residencial para gas suroeste en 2022:

Estado	Factura mensual promedio	Precio por térm que
Arizona	$68.45	$0.85
Nevada	$72.30	$0.90
California	$76.15	$0.95

Compromiso con soluciones de energía sostenible y limpia

Southwest Gas comprometió $ 250 millones a proyectos de energía renovable en 2022. La compañía tiene como objetivo reducir las emisiones de carbono en un 50% para 2030.

• Inversión de energía renovable: $ 250 millones
• Objetivo de reducción de emisiones de carbono: 50% para 2030
• Cartera actual de energía renovable: 15% de la combinación de energía total

Servicio al cliente y soporte técnico receptivo

Southwest Gas mantiene un equipo de servicio al cliente de 1.200 empleados con un 97.5% Calificación de satisfacción del cliente.

Métrico de servicio	Actuación
Tiempo de respuesta promedio	45 minutos
Calificación de satisfacción del cliente	97.5%
Personal de apoyo técnico	350 empleados

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocios: relaciones con los clientes

Contratos de servicio a largo plazo con clientes residenciales

Southwest Gas Holdings atiende a aproximadamente 2.1 millones de clientes en Arizona, Nevada y California a partir de 2023. La compañía mantiene contratos de servicio a largo plazo con el 98.6% de los clientes residenciales en sus territorios de servicio.

Segmento de clientes	Número de clientes	Duración del contrato
Clientes residenciales	2,100,000	Contratos anuales en curso
Clientes comerciales	189,000	Acuerdos de servicio de varios años

Herramientas personalizadas de gestión del consumo de energía

Southwest Gas proporciona plataformas digitales que permiten a los clientes rastrear el consumo de energía en tiempo real con 97.3% de precisión.

• Uso de aplicaciones móviles: 672,000 usuarios activos
• Panel de energía en línea: 58% de tasa de adopción del cliente
• Recomendaciones personalizadas de eficiencia energética: disponible para el 100% de los clientes

Plataformas de atención al cliente digital

La compañía mantiene múltiples canales de soporte digital con una calificación de satisfacción del cliente 99.2%.

Canal de soporte	Tiempo de respuesta promedio	Interacciones mensuales
Chat en línea	3.2 minutos	89,000
Soporte de aplicaciones móviles	4.7 minutos	62,000
Soporte telefónico	6.1 minutos	147,000

Programas de participación comunitaria y educación energética

Southwest Gas invierte $ 2.3 millones anuales en iniciativas de educación energética comunitaria.

• Programas de educación escolar: 87 distritos llegaron
• Talleres de la comunidad: 214 eventos anualmente
• Entrenamiento de eficiencia energética: 56,000 participantes

Facturación transparente e informes de uso

La compañía proporciona transparencia de facturación detallada con opciones de informes digitales e impresos.

Método de facturación	Preferencia del cliente	Tasa de adopción digital
Facturación en línea	73%	92%
Facturación en papel	27%	8%

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: canales

Centros directos de servicio al cliente

Southwest Gas Holdings mantiene 27 centros de servicio al cliente En Arizona, Nevada y California. Estos centros manejados 1,247,563 interacciones con el cliente en 2022.

Estado	Número de centros de servicio	Interacciones anuales del cliente
Arizona	12	542,316
Nevada	9	405,247
California	6	300,000

Portal web en línea y aplicaciones móviles

Las plataformas digitales de la compañía procesadas 3.2 millones de transacciones en línea en 2022. El uso de la aplicación móvil aumentó por 37% de 2021 a 2022.

• Usuarios activos del portal web: 876,542
• Descargas de aplicaciones móviles: 423,765
• Transacciones de pago digital: 2,345,678

Sistemas de facturación y pago de servicios públicos locales

Southwest Gas procesado $ 1.4 mil millones en facturaciones de servicios públicos durante 2022. La compañía admite múltiples canales de pago que incluyen:

Método de pago	Porcentaje de transacciones
Pagos en línea	52%
Pagos telefónicos	18%
Pagos en persona	22%
Pagos por correo	8%

Sitios web de comparación de energía de terceros

Southwest Gas se enumera en 17 plataformas de comparación de energía, generando Aproximadamente 45,678 referencias de clientes en 2022.

Sesiones de divulgación y información comunitaria

La empresa realizada 246 Sesiones de información comunitaria en 2022, llegando 92,345 personas en territorios de servicio.

Tipo de divulgación	Número de sesiones	Participantes
Talleres de eficiencia energética	124	47,562
Seminarios de seguridad	82	33,456
Programas ambientales	40	11,327

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: segmentos de clientes

Consumidores de gas natural residencial

Southwest Gas atiende a aproximadamente 2.3 millones de clientes residenciales en Arizona, Nevada y California a partir de 2023.

Estado	Clientes residenciales	Consumo anual promedio
Arizona	1,050,000	750 Terms/Año
Nevada	780,000	650 Terms/Año
California	470,000	600 Terms/Año

Usuarios de energía comercial e industrial

El segmento comercial e industrial representa el 35% de la base de clientes totales de gas suroeste.

• Total de clientes comerciales: 135,000
• Total de clientes industriales: 22,000
• Consumo anual promedio por cliente comercial: 3,500 Terms
• Consumo anual promedio por cliente industrial: 25,000 Terms

Clientes de servicios públicos municipales y gubernamentales

Southwest Gas brinda servicios de distribución de gas natural a 70 jurisdicciones municipales.

Tipo de cliente	Número de clientes	Valor anual del contrato
Gobiernos municipales	52	$ 45 millones
Servicios públicos del gobierno estatal	18	$ 28 millones

Desarrolladores inmobiliarios y empresas de construcción

Southwest Gas admite aproximadamente 12,000 nuevas conexiones de construcción anualmente.

• Conexiones residenciales de nueva construcción: 9,500
• Conexiones comerciales de nuevas construcciones: 2.500
• Tarifa de conexión promedio: $ 1,250

Empresas de procesamiento agrícola y agrícola

El sector agrícola representa el 5% de la cartera de clientes de Southwest Gas.

Segmento agrícola	Número de clientes	Consumo anual de gas
Operaciones agrícolas	1,850	45,000 Terms/Cliente
Procesamiento de alimentos	650	120,000 Terms/Cliente

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: Estructura de costos

Mantenimiento de infraestructura de tuberías

Costos anuales de mantenimiento de la tubería para Southwest Gas Holdings en 2022: $ 189.4 millones

Categoría de mantenimiento	Costo anual
Reparación de infraestructura	$ 87.6 millones
Inspección de la tubería	$ 52.3 millones
Actualizaciones de seguridad	$ 49.5 millones

Cumplimiento regulatorio y licencias

Gastos de cumplimiento regulatorio total en 2022: $ 45.2 millones

• Costos de cumplimiento de la Comisión Reguladora de Energía Federal (FERC): $ 18.7 millones
• Tarifas estatales de licencia: $ 12.5 millones
• Gastos regulatorios ambientales: $ 14 millones

Salarios y capacitación de los empleados

Gastos totales relacionados con el personal en 2022: $ 321.6 millones

Categoría de gastos	Costo anual
Salarios base	$ 267.3 millones
Capacitación de empleados	$ 14.2 millones
Beneficios y compensación	$ 40.1 millones

Tecnología e infraestructura digital

Inversión tecnológica en 2022: $ 62.8 millones

• Actualización de infraestructura de TI: $ 27.5 millones
• Sistemas de ciberseguridad: $ 15.3 millones
• Iniciativas de transformación digital: $ 20 millones

Iniciativas de monitoreo ambiental y sostenibilidad

Gastos totales de sostenibilidad ambiental en 2022: $ 37.5 millones

Iniciativa de sostenibilidad	Costo anual
Programas de reducción de emisiones	$ 16.2 millones
Sistemas de monitoreo ambiental	$ 12.7 millones
Inversiones de energía renovable	$ 8.6 millones

Southwest Gas Holdings, Inc. (SWX) - Modelo de negocio: flujos de ingresos

Tarifas de distribución de gas natural residencial

A partir de la información financiera de 2022, Southwest Gas Holdings generó $ 2.16 mil millones en ingresos operativos totales, con una distribución residencial de gas natural que representa una porción significativa.

Segmento de clientes residenciales	Ingresos anuales	Factura mensual promedio
Territorio de servicio de Arizona	$ 678.4 millones	$85.30
Territorio de servicio de Nevada	$ 542.9 millones	$92.15

Contratos de servicio comercial

Los clientes comerciales e industriales contribuyeron aproximadamente $ 456.3 millones a los ingresos totales en 2022.

• Grandes contratos comerciales: $ 287.6 millones
• Acuerdos de servicio industrial: $ 168.7 millones

Servicios de desarrollo e instalación de infraestructura

Los servicios de infraestructura generaron $ 124.5 millones en 2022, incluidas las nuevas tarifas de conexión y la instalación de tuberías.

Tipo de servicio	Ganancia	Número de proyectos
Nuevas conexiones de línea de gas	$ 76.2 millones	8,345 conexiones
Infraestructura de tuberías	$ 48.3 millones	42 proyectos importantes

Consultoría de eficiencia energética

Los ingresos del programa de eficiencia energética totalizaron $ 18.7 millones en 2022.

Inversiones de proyectos de energía renovable

Las inversiones de energía renovable contribuyeron con $ 35.6 millones a fuentes de ingresos diversificados en 2022.

Segmento de energía renovable	Ingresos por inversiones	Capacidad
Inversiones de proyectos solares	$ 22.4 millones	45 MW
Proyectos de energía eólica	$ 13.2 millones	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.