Page 7 - SWGas Annual Report 2015
P. 7

net income of $112 million. The impressive performance
from this segment was driven by the Company’s focus on

tives, and continued organic customer growth.


United States  0.77%

Tucson, AZ                        1.18%

Las Vegas-Henderson-Paradise, NV         1.51%

Victorville-Barstow-Big Bear, CA                  1.74%

Phoenix-Mesa-Scottsdale, AZ                       1.81%

                                         Source: IHS Global Insight

To deliver on the Company’s commitment to safety, service,           To better position the Company to serve growing markets
and reliability, Southwest Gas continued its aggressive cap-         in the U.S. and Canada through our multiple lines of busi-
ital expenditure plan with an investment of $438 million in          ness, Southwest Gas recently filed regulatory applications
our gas distribution system during 2015. Over the next three         in Arizona, Nevada, and California requesting authority to
years, we plan to invest up to $1.6 billion to ensure the Com-       establish a holding company. We believe that this structure
pany’s readiness to safely and reliably serve today’s custom-        will enhance the existing legal and financial separation be-
ers and meet tomorrow’s growth.                                      tween our two business segments and provide greater flex-
                                                                     ibility in Southwest Gas’ future corporate financing activities.
CAPITAL EXPENDITURES                                                 This proactive step will help position the Company to better
                                                                     serve its two distinct business segments well into the future.
                           $438          $460     $500
                                                  $450               TRUSTED PARTNER: REGULATORY COLLABORATION
$350                                              $400               Just as Southwest Gas works daily to earn and keep the
                                                  $350               trust of its customers and shareholders, we also take
2014                       2015   2016 Estimated  $300               pride in fostering and maintaining trusting relationships
                                                  $250               with regulators who are among our most important part-
                                                  $200               ners. Partnering with state regulatory bodies in Arizona,
                                                  $150               Nevada, and California, as well as federal regulators,
                                                  $100               Southwest Gas continues to pursue projects that en-
                                                                     hance safety and reliability and mitigate regulatory lag
                                                   $50               by achieving timely cost recovery.
                                                                     The Company currently has infrastructure recovery mech-
2016-2018 Estimate: Up to $1.6 billion                               anisms in each of its states. These are the product of our

The level of capital expenditures will necessitate that we           opportunities to enhance pipeline safety and reliability for
raise both debt and equity capital in the coming years. All          our customers, and also allow us to recover our costs in a
three rating agencies maintain investment grade unse-                timely manner.
cured credit ratings for the Company with Fitch, Moody’s,
and S&P assigning Southwest Gas credit ratings of A, A3,
and BBB+, respectively. These investment grade credit
ratings place us in a strong position to access the debt
capital markets on relatively favorable terms. We also

amounts of equity as needed.

Southwest Gas Corporation
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