EX-99 2 exhibit99.htm FINANCIAL STATEMENTS EXHIBIT 99

SOUTHWEST GAS CORPORATION
SUMMARY UNAUDITED OPERATING RESULTS
(In thousands, except per share amounts)


THREE MONTHS ENDED
SEPTEMBER 30,
 NINE MONTHS ENDED
SEPTEMBER 30,
 TWELVE MONTHS ENDED
SEPTEMBER 30,
2004
 2003
 2004
 2003
 2004
 2003
Results of Consolidated Operations                            
   Contribution to net income (loss) - gas operations     $ (18,954 ) $ (18,590 ) $ 10,992   $ 991   $ 44,212   $ 37,665  
   Contribution to net income - construction services    2,601    1,183    5,337    3,037    6,591    4,178  
   Net income (loss)   $ (16,353 ) $ (17,407 ) $ 16,329   $ 4,028   $ 50,803   $ 41,843  
   Earnings (loss) per share - gas operations   $ (0.53 ) $ (0.55 ) $ 0.32   $ 0.03   $ 1.28   $ 1.12  
   Earnings per share - construction services    0.07    0.04    0.15    0.09    0.19    0.13  
   Basic earnings (loss) per share   $ (0.46 ) $ (0.51 ) $ 0.47   $ 0.12   $ 1.47   $ 1.25  
   Diluted earnings (loss) per share   $ (0.46 ) $ (0.51 ) $ 0.47   $ 0.12   $ 1.45   $ 1.24  
   Average outstanding common shares    35,412    33,852    34,857    33,653    34,661    33,545  
   Average shares outstanding (assuming dilution)       --     --     35,116     33,911     34,942     33,816  
                             
                             
Results of Natural Gas Operations  
   Gas operating revenues   $ 206,459   $ 167,827   $ 866,999   $ 733,192   $ 1,168,160   $ 1,014,275  
   Net cost of gas sold    102,978    72,398    450,690    358,908    574,285    472,942  
   Operating margin    103,481    95,429    416,309    374,284    593,875    541,333  
   Operations and maintenance expense    74,289    66,012    214,957    196,502    285,317    264,431  
   Depreciation and amortization    32,844    30,517    97,396    89,372    128,815    119,567  
   Taxes other than income taxes    9,528    9,075    29,026    27,530    37,406    35,613  
   Operating income (loss)    (13,180 )  (10,175 )  74,930    60,880    142,337    121,722  
   Other income (expense)    1,566    658    1,627    1,509    3,073    16,344  
   Net interest deductions    19,814    18,779    57,122    57,991    75,382    77,949  
   Net interest deductions on subordinated debentures    1,930    750    5,791    750    7,721    750  
   Preferred securities distributions    --    1,442    --    4,180    --    5,549  
   Income (loss) before income taxes    (33,358 )  (30,488 )  13,644    (532 )  62,307    53,818  
   Income tax expense (benefit)    (14,404 )  (11,898 )  2,652    (1,523 )  18,095    16,153  
   Contribution to net income (loss) - gas operations   $ (18,954 ) $ (18,590 ) $ 10,992   $ 991   $ 44,212   $ 37,665  



SOUTHWEST GAS CORPORATION
SELECTED STATISTICAL DATA
SEPTEMBER 30, 2004


FINANCIAL STATISTICS
Market value to book value per share at quarter end   130%
Twelve months to date return on equity -- total company  7.9%
                                                                       -- gas segment  7.2%
Common stock dividend yield at quarter end  3.4%


GAS OPERATIONS SEGMENT


Rate Jurisdiction Authorized
Rate Base
(In thousands)		 Authorized
Rate of
Return		 Authorized
Return on
Common
Equity
Arizona     $ 688,202   9.20 % 11.00 %
Southern Nevada       574,285   7.45 10.50
Northern Nevada       110,309   8.56 10.50
Southern California       102,703   9.17 10.90
Northern California       45,487   9.17 10.90
Paiute Pipeline Company (1)       75,059   9.69 11.60

    (1)        Estimated amounts based on rate case settlements.



SYSTEM THROUGHPUT BY CUSTOMER CLASS NINE MONTHS ENDED
SEPTEMBER 30,
 TWELVE MONTHS ENDED
SEPTEMBER 30,
(In dekatherms) 2004 2003 2004 2003
Residential   48,453,997   43,993,792   63,765,008   57,147,646  
Small commercial  22,224,904   20,592,944   29,547,361   27,470,030  
Large commercial  7,782,869   7,647,453   10,193,613   9,996,796  
Industrial / Other  12,163,748   12,487,797   15,390,493   16,954,080  
Transportation  91,793,113   100,582,342   124,900,851   137,352,205  
Total system throughput  182,418,631   185,304,328   243,797,326   248,920,757  

HEATING DEGREE DAY COMPARISON
Actual   1,328   1,216   1,876   1,715  
Ten-year average  1,368   1,371   1,921   1,930