Southwest Gas Holdings, Inc. Reports First Quarter 2023 Financial Results.

LAS VEGAS: Southwest Gas Holdings, Inc. (NYSE: SWX) ("Southwest Gas" or the "Company") today reported first quarter 2023 financial results.

"We delivered strong financial results at both the utility and Centuri during the quarter, with constructive new rates in place for Arizona utility customers and exciting new offshore wind and natural gas contracts at Centuri," said Karen S. Haller, President and Chief Executive Officer of Southwest Gas. "We have now completed our 2023 financing plan and going forward, we expect to maintain an investment grade profile and enhance balance sheet flexibility. We are making significant progress on our transformation strategy through the recent close of the sale of MountainWest and advancing the Centuri spin with IRS and Arizona Corporation Commission filings, and we are excited about Southwest Gas' future as a pure-play natural gas leader as we focus on delivering continued earnings growth. We remain committed to executing our strategic plan as we address the needs of our customers, deliver safe and affordable energy, and invest in the communities we serve and our employees, while maximizing value for our stockholders."

Southwest Gas Holdings Financial Highlights

Utility earnings up $23 million Q1 2023 over Q1 2022 and Centuri results up approximately $12 million over same period.

Consolidated net earnings of $0.67 per diluted share (and adjusted consolidated net earnings of $1.69 per diluted share) for the first quarter of 2023, compared to consolidated net earnings of $1.58 per diluted share (and adjusted consolidated earnings of $1.74 per diluted share) for the first quarter of 2022.

Adjustments to first quarter 2023 earnings included $70 million of collective nonrecurring after-tax items, largely driven by incremental loss on sale of MountainWest ($66.5 million after-tax), other costs associated with the sale, residual MountainWest stand-up/integration costs leading up to the sale date, as well as costs incurred to facilitate a spin-off of Centuri.

Completed sale of MountainWest and proceeds used to pay off $1.1 billion of total debt.

Advanced Centuri spin with Internal Revenue Service ("IRS") private letter ruling ("PLR") and Arizona Corporation Commission ("ACC") filings.

Completed $247 million equity raise on March 10, 2023 and $550 million term loan issuance on April 17, 2023.

SOUTHWEST GAS HOLDINGS, INC.

SUMMARY UNAUDITED OPERATING RESULTS

(In thousands, except per share items)

Three Months Ended

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