Page 4 - SWGas Annual Report 2015

In Nevada, we were able to collaborate with various key CONSTRUCTION SERVICES MARKETS
stakeholders to develop legislation (Senate Bill 151) and
new regulations that authorize natural gas utilities to expand
their infrastructure to provide service to unserved and
underserved areas in Nevada with an investment cost
recovery mechanism. Southwest Gas is actively working
with business and government organizations on identifying
areas for possible infrastructure expansion projects. We
anticipate that future expansions into unserved and
underserved areas will support economic development
in these areas and will pair perfectly with the Company’s
continuous goal to serve our communities by safely and
reliably delivering natural gas.

2015 also marked the successful integration of the Link-
Line group of companies, which the Company acquired
in October 2014, with NPL to form Centuri Construction
Group, Inc. (Centuri). Centuri now operates as one of North
America’s largest full-service underground pipeline con-
tractors and serves markets across the U.S. and Canada.
The results of Centuri’s expanded operations are reflected
in the record revenues and earnings achieved for 2015.

TRUSTED LEADER: STRONG FINANCIAL RESULTS
The positive financial impacts of customer trust, bolstered
by prudent management of Company operations, are
apparent in our continued solid financial performance.
Both the natural gas operations and construction segments
of the Company experienced favorable results in 2015,
contributing a total net income of $138 million.

We are especially pleased with the financial performance
of Centuri, which reached a significant milestone by
achieving $1 billion in revenues and $26.7 million in net
income in 2015. These records are impressive achieve-
ments that show great promise for the future given that
Centuri has just completed its first full year as an inte-
grated unit. With a vast footprint in the U.S. and Cana-
da, along with Centuri’s record of excellence in serving
utility customers, we believe that this business segment
is poised to capitalize on growing infrastructure opportu-
nities for years to come.

The natural gas operations business segment also contrib-
uted a solid performance in 2015, with operating margin of
$891 million, an increase of 1.6 percent over 2014, and

Southwest Gas Corporation