Southwest Gas Holdings, Inc. (SWX): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de la distribution d'énergie, Southwest Gas Holdings, Inc. apparaît comme un joueur pivot transformant des services de services publics dans le sud-ouest des États-Unis. Cette entreprise innovante tire parti d'un modèle commercial sophistiqué qui intègre de manière transparente une infrastructure de gaz naturel fiable, des technologies de pointe et un engagement envers des solutions énergétiques durables. En équilibrant stratégiquement l'excellence opérationnelle avec des approches centrées sur le client, Southwest Gas Holdings s'est positionné comme un catalyseur critique de la connectivité énergétique pour les consommateurs résidentiels, commerciaux et industriels, stimulant l'efficacité et la fiabilité dans un écosystème énergétique en constante évolution.

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: partenariats clés

Régulateurs des services publics en Arizona, en Californie et au Nevada

Southwest Gas Holdings collabore avec les principaux organismes de réglementation:

Agence de réglementation	État	Surveillance réglementaire
Arizona Corporation Commission	Arizona	Régulation du taux de gaz naturel
California Public Utilities Commission	Californie	Territoire de service et approbation des prix
Commission des services publics du Nevada	Nevada	Autorisation d'investissement des infrastructures

Infrastructures énergétiques et entreprises de construction de pipelines

Les principaux partenariats de construction et d'infrastructure comprennent:

• Michels Corporation - Entrepreneur en construction de pipeline
• Kinder Morgan, Inc. - collaboration sur les infrastructures de pipeline
• MASTEC, Inc. - Développement des infrastructures utilitaires

Fournisseurs d'équipements de distribution et de transmission du gaz naturel

Fournisseur	Type d'équipement	Valeur du contrat annuel
Systèmes Mueller	Équipement de mesure	12,4 millions de dollars
McWane Ductile	Pipeline	8,7 millions de dollars
Emerson Electric	Systèmes de contrôle	6,2 millions de dollars

Gouvernements municipaux locaux et services de planification urbaine

Les juridictions collaboratives comprennent:

• Département de l'urbanisme de Phoenix
• Développement urbain de Las Vegas
• Division des infrastructures municipales de San Jose

Organisations de conseil environnemental et de durabilité

Organisation	Domaine de mise au point	Portée de collaboration
Fonds de défense environnementale	Réduction des émissions	Programmes de détection de fuite de méthane
Rocky Mountain Institute	Intégration d'énergie renouvelable	Stratégies de modernisation de la grille
Institut des ressources mondiales	Reporting de durabilité	Évaluation de l'empreinte carbone

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: Activités clés

Distribution et transmission du gaz naturel

Southwest Gas dessert environ 2 millions de clients dans l'Arizona, le Nevada et la Californie. L'entreprise exploite 71 700 miles de pipelines de distribution et de transmission du gaz naturel en 2023.

Aire de service	Nombre de clients	Pipeline miles
Arizona	643,000	26 700 miles
Nevada	775,000	22 300 miles
Californie	582,000	22 700 miles

Maintenance des infrastructures et gestion des pipelines

Les investissements annuels des infrastructures totalisent 510 millions de dollars en 2023. Couvertures du programme de gestion de l'intégrité des pipelines:

• Systèmes de détection de fuite
• Prévention de la corrosion
• Protocoles d'inspection réguliers
• Technologies de surveillance avancées

Service énergétique et support client des services publics

Les opérations de service à la clientèle gèrent environ 3,2 millions d'interactions de service par an. Les canaux de support comprennent:

• Réaction d'urgence 24/7
• Plateformes de clients numériques
• Services de facturation et de paiement
• Programmes d'efficacité énergétique

Intégration et développement des énergies renouvelables

Southwest Gas a engagé 75 millions de dollars dans des projets d'énergie renouvelable en 2023. Les initiatives renouvelables actuelles comprennent:

Type de projet renouvelable	Montant d'investissement	Capacité attendue
Mélange d'hydrogène	35 millions de dollars	5% de mélange d'hydrogène
Gaz naturel renouvelable	25 millions de dollars	3 millions de pieds cubes / jour
Intégration solaire	15 millions de dollars	Capacité de 15 MW

Compliance réglementaire et gestion de la sécurité

Les dépenses de sécurité et de conformité ont atteint 95 millions de dollars en 2023. Les principales mesures de conformité comprennent:

• Zéro incidents de sécurité majeurs
• Compliance réglementaire à 100% PHMSA
• Formation annuelle en matière de sécurité: 95 000 heures d'employés
• Investissements en sécurité des infrastructures: 45 millions de dollars

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: Ressources clés

Réseau de gazoducs naturel

Southwest Gas Holdings exploite environ 71 000 miles d'infrastructures de gazoduc naturel dans plusieurs États.

Détails du réseau de pipelines	Mesures
Total des miles de pipeline	71 000 miles
États de service	Arizona, Nevada, Californie
Volume annuel de distribution de gaz	146,5 milliards de pieds cubes (2022)

Technologies de mesure et de distribution avancées

L'entreprise a investi dans Infrastructure de mesure avancée (AMI) avec des capacités technologiques importantes.

• Déploiement de compteur intelligent: 1,2 million d'unités
• Systèmes de surveillance numérique
• Technologies de transmission de données en temps réel

Ingénierie qualifiée et main-d'œuvre technique

Southwest Gas Holdings utilise une main-d'œuvre spécialisée dédiée aux opérations des services publics.

Composition de la main-d'œuvre	Nombre
Total des employés	7 900 (à partir de 2022)
Personnel technique / génie	4 200 employés

Contrats de services de services publics à long terme

La société maintient des accords de service à long terme avec des entités municipales et commerciales.

• Durée du contrat: moyenne de 10 à 15 ans
• Accords de services de services publics réglementés
• Modèle de génération de revenus stable

Couverture géographique

Southwest Gas Holdings maintient une grande présence opérationnelle dans le sud-ouest des États-Unis.

Portée géographique	Détails de la couverture
Territoire de service	3 États (Arizona, Nevada, Californie)
Clientèle	2,1 millions de clients de gaz naturel

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: propositions de valeur

Alimentation fiable et cohérente en gaz naturel

Southwest Gas dessert environ 2,2 millions de clients dans l'Arizona, le Nevada et la Californie. En 2022, la société a livré 161 milliards de pieds cubes de gaz naturel à des clients résidentiels et commerciaux.

Aire de service	Nombre de clients	Livraison de gaz annuelle
Arizona	1,1 million	80 milliards de pieds cubes
Nevada	750,000	55 milliards de pieds cubes
Californie	350,000	26 milliards de pieds cubes

Infrastructure énergétique sûre et efficace

Le gaz du sud-ouest maintient plus de 71 000 milles d'infrastructure de gazoduc naturel. La société a investi 591 millions de dollars dans l'amélioration des infrastructures en 2022.

• Taux de conformité de la sécurité des pipelines: 99,97%
• Investissement annuel sur les infrastructures: 591 millions de dollars
• Réseau total de pipeline: 71 000 miles

Tariot de services publics concurrentiel pour les clients résidentiels

Taux de gaz naturel résidentiel moyens pour le gaz du sud-ouest en 2022:

État	Facture mensuelle moyenne	Prix ​​par therme
Arizona	$68.45	$0.85
Nevada	$72.30	$0.90
Californie	$76.15	$0.95

Engagement envers des solutions d'énergie durable et propre

Southwest Gas a engagé 250 millions de dollars dans des projets d'énergie renouvelable en 2022. La société vise à réduire les émissions de carbone de 50% d'ici 2030.

• Investissement en énergies renouvelables: 250 millions de dollars
• Cible de réduction des émissions de carbone: 50% d'ici 2030
• Portfolio actuel des énergies renouvelables: 15% du mélange d'énergie total

Service client réactif et support technique

Southwest Gas maintient une équipe de service à la clientèle de 1 200 employés avec un Évaluation de satisfaction de 97,5%.

Métrique de service	Performance
Temps de réponse moyen	45 minutes
Évaluation de satisfaction du client	97.5%
Personnel de soutien technique	350 employés

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: relations avec les clients

Contrats de services à long terme avec des clients résidentiels

Southwest Gas Holdings dessert environ 2,1 millions de clients dans l'Arizona, le Nevada et la Californie à partir de 2023. La société maintient des contrats de service à long terme avec 98,6% des clients résidentiels dans ses territoires de service.

Segment de clientèle	Nombre de clients	Durée du contrat
Clients résidentiels	2,100,000	Contrats annuels en cours
Clients commerciaux	189,000	Accords de service pluriannuels

Outils de gestion de la consommation d'énergie personnalisés

Southwest Gas fournit des plates-formes numériques permettant aux clients de suivre la consommation d'énergie en temps réel avec 97,3% de précision.

• Utilisation des applications mobiles: 672 000 utilisateurs actifs
• Tableau de bord énergétique en ligne: taux d'adoption des clients à 58%
• Recommandations personnalisées de l'efficacité énergétique: Disponible pour 100% des clients

Plates-formes de support client numérique

La société maintient plusieurs canaux de support numériques avec une cote de satisfaction client de 99,2%.

Canal de support	Temps de réponse moyen	Interactions mensuelles
Chat en ligne	3,2 minutes	89,000
Prise en charge de l'application mobile	4,7 minutes	62,000
Support téléphonique	6,1 minutes	147,000

Programmes d'engagement communautaire et d'éducation énergétique

Southwest Gas investit 2,3 millions de dollars par an dans les initiatives d'éducation énergétique communautaire.

• Programmes d'enseignement scolaire: 87 districts atteints
• Ateliers communautaires: 214 événements par an
• Formation à l'efficacité énergétique: 56 000 participants

Facturation transparente et rapport d'utilisation

La société fournit une transparence de facturation détaillée avec des options de rapports numériques et imprimées.

Méthode de facturation	Préférence du client	Taux d'adoption numérique
Facture en ligne	73%	92%
Facturation de papier	27%	8%

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: canaux

Centres de service à la clientèle directs

Southwest Gas Holdings maintient 27 centres de service à la clientèle à travers l'Arizona, le Nevada et la Californie. Ces centres manipulés 1 247 563 interactions client en 2022.

État	Nombre de centres de service	Interactions annuelles du client
Arizona	12	542,316
Nevada	9	405,247
Californie	6	300,000

Portail Web en ligne et applications mobiles

Les plateformes numériques de l'entreprise traitées 3,2 millions de transactions en ligne en 2022. L'utilisation des applications mobiles a augmenté de 37% de 2021 à 2022.

• Portail Web Utilisateurs actifs: 876 542
• Téléchargements d'applications mobiles: 423 765
• Transactions de paiement numérique: 2 345 678

Systèmes locaux de facturation des services publics et de paiement

Gas du sud-ouest transformé 1,4 milliard de dollars en facturation des services publics en 2022. La société prend en charge plusieurs canaux de paiement, notamment:

Mode de paiement	Pourcentage de transactions
Paiements en ligne	52%
Paiements de téléphone	18%
Paiements en personne	22%
Paiements par courrier	8%

Sites Web de comparaison d'énergie tiers

Le gaz du sud-ouest est répertorié sur 17 plates-formes de comparaison d'énergie, générant Environ 45 678 références clients en 2022.

Séances de sensibilisation et d'information communautaires

La société a dirigé 246 Sessions d'information communautaire en 2022, atteignant 92 345 personnes à travers les territoires de service.

Type de sensibilisation	Nombre de sessions	Participants
Ateliers d'efficacité énergétique	124	47,562
Séminaires de sécurité	82	33,456
Programmes environnementaux	40	11,327

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: segments de clients

Consommateurs de gaz naturel résidentiel

Southwest Gas dessert environ 2,3 millions de clients résidentiels de l'Arizona, du Nevada et de la Californie en 2023.

État	Clients résidentiels	Consommation annuelle moyenne
Arizona	1,050,000	750 therms / an
Nevada	780,000	650 therms / an
Californie	470,000	600 therms / an

Utilisateurs d'énergie commerciale et industrielle

Le segment commercial et industriel représente 35% de la clientèle totale du Gas du Sud-Ouest.

• Clients commerciaux totaux: 135 000
• Total des clients industriels: 22 000
• Consommation annuelle moyenne par client commercial: 3 500 therms
• Consommation annuelle moyenne par client industriel: 25 000 therms

Clients municipaux et des services publics du gouvernement

Southwest Gas fournit des services de distribution de gaz naturel à 70 juridictions municipales.

Type de client	Nombre de clients	Valeur du contrat annuel
Gouvernements municipaux	52	45 millions de dollars
Services publics du gouvernement de l'État	18	28 millions de dollars

Promoteurs immobiliers et entreprises de construction

Southwest Gas prend en charge environ 12 000 nouvelles connexions de construction par an.

• Connexions résidentielles de la construction: 9 500
• Connexions commerciales de nouvelles constructions: 2 500
• Frais de connexion moyens: 1 250 $

Entreprises de transformation agricole et agricole

Le secteur agricole représente 5% du portefeuille de clients du gaz du sud-ouest.

Segment agricole	Nombre de clients	Consommation de gaz annuelle
Opérations agricoles	1,850	45 000 therms / client
Transformation des aliments	650	120 000 therms / client

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: Structure des coûts

Maintenance des infrastructures de pipeline

Coûts de maintenance annuelle des pipelines pour Southwest Gas Holdings en 2022: 189,4 millions de dollars

Catégorie de maintenance	Coût annuel
Réparation des infrastructures	87,6 millions de dollars
Inspection des pipelines	52,3 millions de dollars
Mises à niveau de la sécurité	49,5 millions de dollars

Conformité réglementaire et licence

Total des dépenses de conformité réglementaire en 2022: 45,2 millions de dollars

• Federal Energy Regulatory Commission (FERC) Coûts de conformité: 18,7 millions de dollars
• Frais de licence d'État: 12,5 millions de dollars
• Dépenses réglementaires environnementales: 14 millions de dollars

Salaires et formation des employés

Total des dépenses liées au personnel en 2022: 321,6 millions de dollars

Catégorie de dépenses	Coût annuel
Salaires de base	267,3 millions de dollars
Formation des employés	14,2 millions de dollars
Avantages et compensation	40,1 millions de dollars

Technologie et infrastructure numérique

Investissement technologique en 2022: 62,8 millions de dollars

• Mise à niveau des infrastructures informatiques: 27,5 millions de dollars
• Systèmes de cybersécurité: 15,3 millions de dollars
• Initiatives de transformation numérique: 20 millions de dollars

Initiatives de surveillance environnementale et de durabilité

Total des frais de durabilité environnementale en 2022: 37,5 millions de dollars

Initiative de durabilité	Coût annuel
Programmes de réduction des émissions	16,2 millions de dollars
Systèmes de surveillance environnementale	12,7 millions de dollars
Investissements en énergie renouvelable	8,6 millions de dollars

Southwest Gas Holdings, Inc. (SWX) - Modèle d'entreprise: Strots de revenus

Frais de distribution du gaz naturel résidentiel

En 2022, les rapports financiers, Southwest Gas Holdings a généré 2,16 milliards de dollars de revenus d'exploitation totaux, la distribution résidentielle du gaz naturel représentant une partie importante.

Segment de clientèle résidentiel	Revenus annuels	Facture mensuelle moyenne
Territoire de service de l'Arizona	678,4 millions de dollars	$85.30
Territoire de service du Nevada	542,9 millions de dollars	$92.15

Contrats de services utilitaires commerciaux

Les clients commerciaux et industriels ont contribué environ 456,3 millions de dollars aux revenus totaux en 2022.

• Grands contrats commerciaux: 287,6 millions de dollars
• Accords de services industriels: 168,7 millions de dollars

Services de développement et d'installation des infrastructures

Les services d'infrastructure ont généré 124,5 millions de dollars en 2022, y compris les nouveaux frais de connexion et l'installation de pipeline.

Type de service	Revenu	Nombre de projets
Nouvelles connexions de conduite de gaz	76,2 millions de dollars	8 345 connexions
Infrastructure de pipeline	48,3 millions de dollars	42 projets majeurs

Conseil d'efficacité énergétique

Les revenus du programme d'efficacité énergétique ont totalisé 18,7 millions de dollars en 2022.

Investissements du projet d'énergie renouvelable

Les investissements en énergies renouvelables ont contribué 35,6 millions de dollars à des sources de revenus diversifiées en 2022.

Segment d'énergie renouvelable	Revenus d'investissement	Capacité
Investissements du projet solaire	22,4 millions de dollars	45 MW
Projets d'énergie éolienne	13,2 millions de dollars	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.