Breaking News

EU Adds 8 People, 3 Entities to Sanctions Over Ukraine Crisis
Tweet TWEET

Southwest Gas Corporation Announces Second Quarter 2013 Earnings

       Southwest Gas Corporation Announces Second Quarter 2013 Earnings

PR Newswire

LAS VEGAS, Aug. 7, 2013

LAS VEGAS, Aug. 7, 2013 /PRNewswire/ -- Southwest Gas Corporation (NYSE: SWX)
reported consolidated earnings of $0.22per basic share for the second quarter
of 2013, compared to a net loss of $0.08per share for the second quarter of
2012. Consolidated net income was $10.1million for the second quarter of
2013, compared to a consolidated net loss of $3.7million for the prior-year
quarter. Prior-year results reflected a nonrecurring contract loss at the
Company's construction subsidiary. Due to the seasonal nature of the
Company's businesses, results for quarterly periods are not generally
indicative of earnings for a complete twelve-month period.

(Logo: http://photos.prnewswire.com/prnh/20110222/LA52548LOGO)

According to Jeffrey W. Shaw, President and Chief Executive Officer, "We are
pleased with our second quarter 2013 earnings of $0.22 per share. This
reflects solid performances by both the natural gas and construction services
segments. NPL contributed $8.1 million to the bottom line this quarter, a
significant turnaround from the prior-year quarter's net loss. The natural
gas segment's higher contribution to net income was driven by improved
COLI-related income and lower interest deductions, coupled with stable
operating results." Shaw concluded by saying "In May, Fitch Ratings upgraded
our senior unsecured debt rating to A from A-, citing stronger credit metrics
and an improved business risk profile."

For the twelve months ended June 30, 2013, consolidated net income was
$149million, or $3.22per basic share, compared to $114.9million, or
$2.50per basic share, during the twelve-month period ended June 30, 2012.
The current twelve-month period reflects an $8.9 million ($0.19 per share)
increase in income related to company-owned life insurance ("COLI") policies
including recognized net death benefits. The prior twelve-month period
included a $13million pretax loss on an NPL fixed-price contract and an
$800,000 decline in COLI cash surrender values.

Natural Gas Operations Segment Results

Second Quarter
Operating margin, defined as operating revenues less the cost of gas sold,
increased nearly $6million in the second quarter of 2013 compared to the
second quarter of 2012. Rate relief in Nevada and California provided $2
million of the increase in operating margin. New customers contributed an
incremental $2 million in operating margin, as approximately 24,000 net new
customers were added during the last twelve months. Incremental margin from
customers outside the decoupling mechanisms and other miscellaneous revenues
contributed the remainder of the increase. 

Operating expenses for the quarter rose $5.8million, or 4%, compared to the
second quarter of 2012, primarily due to increases in general costs and
employee-related benefit costs (including pension expense), depreciation
expense on additional plant in service, amortization of regulatory assets
(including new conservation and energy efficiency programs in Nevada), and
higher property and other general taxes.

Other income, which principally includes changes in the cash surrender values
of COLI policies and non-utility expenses, increased $4.2million between
quarters. The current quarter reflects COLI-related income (including net
death benefits recognized) of $1.8million ($0.04per share), while in the
prior-year quarter, cash surrender values of COLI policies declined
$1.9million ($0.04per share). Net interest deductions decreased
$3.1million between quarters, primarily due to cost savings from debt
refinancing and early debt redemptions.

Twelve Months to Date
Operating margin increased $37million between periods primarily due to $23
million of combined rate relief in Arizona, Nevada, and California. Customer
growth contributed $7 million toward the increase. The remaining operating
margin improvement primarily relates to an increase in other miscellaneous
revenues in the current period and the impact of an unfavorable $4 million
margin adjustment recognized in the third quarter of 2011.

Operating expenses increased $19.4million, or 3%, between periods primarily
due to higher amortization of regulatory assets (including new conservation
and energy efficiency programs in Nevada) and incremental depreciation expense
associated with plant additions. Higher general costs and employee-related
costs including pension expense, as well as higher property and other general
taxes, contributed to the increase.

Other income rose $11million between periods. The current twelve-month
period reflects an $8.9 million increase in COLI-related income including
recognized net death benefits, while the prior year twelve-month period
reflected an $800,000 decline in COLI policy cash surrender values (net of
death benefits recognized). Net interest deductions declined $6.3 million
between the twelve-month periods, primarily due to cost savings from debt
refinancing and early debt redemptions.

Southwest Gas Corporation provides natural gas service to 1,882,000 customers
in Arizona, Nevada, and California.

This press release may contain statements which constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (Reform Act). All such forward-looking statements are intended to be
subject to the safe harbor protection provided by the Reform Act. A number of
important factors affecting the business and financial results of the Company
could cause actual results to differ materially from those stated in the
forward-looking statements. These factors include, but are not limited to,
customer growth rates, the effects of regulation/deregulation, the timing and
amount of rate relief, changes in rate design, results of NPL fixed-price
contracts, and the impacts of stock market volatility.



SOUTHWEST GAS CONSOLIDATED EARNINGS DIGEST
(In thousands, except per share amounts)
QUARTER ENDED JUNE 30,                   2013             2012
Consolidated Operating Revenues          $   411,574   $     409,768
Net Income (Loss)                        $    10,108  $      (3,676)
Average Number of Common Shares          46,331           46,114
Outstanding
Basic Earnings (Loss) Per Share          $      0.22 $       (0.08)
Diluted Earnings (Loss) Per Share        $      0.22 $       (0.08)
SIX MONTHS ENDED JUNE 30,                2013             2012
Consolidated Operating Revenues          $  1,025,079   $   1,067,413
Net Income                               $    90,881  $     75,243
Average Number of Common Shares          46,291           46,091
Outstanding
Basic Earnings Per Share                 $      1.96 $       1.63
Diluted Earnings Per Share               $      1.95 $       1.62
TWELVE MONTHS ENDED JUNE 30,             2013             2012
Consolidated Operating Revenues          $  1,885,444    $   1,937,656
Net Income                               $   148,969   $    114,926
Average Number of Common Shares          46,214           45,996
Outstanding
Basic Earnings Per Share                 $      3.22 $       2.50
Diluted Earnings Per Share               $      3.19 $       2.48

SOURCE Southwest Gas Corporation

Website: http://www.swgas.com
Contact: Media Contact: Sonya Headen, Las Vegas, NV (702) 364-3411,
Shareholder Contact: Ken Kenny, Las Vegas, NV (702) 876-7237