---

---

---

---

---

---

---

---

---

---

---

---

Note 1 – Background, Organization, and Summary of Significant Accounting Policies

Nature of Operations. Southwest Gas Holdings, Inc. is a holding company, owning all of the shares of common stock of Southwest Gas Corporation (“Southwest” or the “natural gas operations” segment) and all of the shares of common stock of Centuri Group, Inc. (“Centuri,” or the “utility infrastructure services” segment).

Southwest is engaged in the business of purchasing, distributing, and transporting natural gas for customers in portions of Arizona, Nevada, and California. Public utility rates, practices, facilities, and service territories of Southwest are subject to regulatory oversight. The timing and amount of rate relief can materially impact results of operations. Natural gas purchases and the timing of related recoveries can materially impact liquidity. Results for the natural gas operations segment are higher during winter periods due to the seasonality incorporated in its regulatory rate structures.

Centuri is a comprehensive utility infrastructure services enterprise dedicated to delivering a diverse array of solutions to North America’s gas and electric providers. Centuri derives revenue from installation, replacement, repair, and maintenance of energy distribution systems, and developing industrial construction solutions. Centuri operations are generally conducted under the business names of NPL Construction Co. (“NPL”), NPL Canada Ltd. (“NPL Canada”), New England Utility Constructors, Inc. (“Neuco”), and Linetec Services, LLC (“Linetec”). Utility infrastructure services activity is seasonal in most of Centuri’s operating areas. Peak periods are the summer and fall months in colder climate areas, such as the northeastern and midwestern United States (“U.S.”) and in Canada. In warmer climate areas, such as the southwestern and southeastern U.S., utility infrastructure services activity continues year round.

Basis of Presentation. The condensed consolidated financial statements of Southwest Gas Holdings, Inc. and subsidiaries (the “Company”) and Southwest included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end condensed balance sheet data was derived from audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. No substantive change has occurred with regard to the Company’s business segments on the whole.

The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring items and estimates necessary for a fair depiction of results for the interim periods, have been made. Globally, the novel Coronavirus (“COVID-19”) pandemic has created volatility, uncertainty, and economic disruption. Utility operations have been deemed “essential services” and utility infrastructure services have, to a large extent, been similarly characterized by government officials. Management has considered the impact of the pandemic and adjusted certain estimates, where relevant, used in the preparation of the condensed consolidated financial statements.

It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the 2019 Annual Report to Stockholders, which is incorporated by reference into the 2019 Form 10-K.

Fair Value Measurements. Certain assets and liabilities are reported at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

U.S. GAAP states that a fair value measurement should be based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy that ranks the inputs used to measure fair value by their reliability. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to fair values derived from unobservable inputs (Level 3 measurements). Financial assets and liabilities are categorized in their entirety based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are as follows:

Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that a company has the ability to access at the measurement date.

Level 2 – inputs other than quoted prices included within Level 1 that are observable for similar assets or liabilities, either directly or indirectly.

Level 3 – unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

---

The Company primarily used quoted market prices and other observable market pricing information in valuing cash and cash equivalents, derivatives, long-term debt outstanding, and assets of the qualified pension plan and postretirement benefit plans required to be recorded and/or disclosed at fair value.

Other Property and Investments. Other property and investments on the Condensed Consolidated Balance Sheets includes:

(Thousands of dollars)	March 31, 2020				December 31, 2019
Southwest Gas Corporation:
Net cash surrender value of COLI policies	$	116,615			$	132,072
Other property	1,932				1,715
Total Southwest Gas Corporation	118,547				133,787
Centuri property, equipment, and intangibles	1,009,351				983,905
Centuri accumulated provision for depreciation and amortization	(363,074		)		(352,333		)
Other property	20,698				18,814
Total Southwest Gas Holdings, Inc.	$	785,522			$	784,173

Included in the table above are the net cash surrender values of company-owned life insurance (“COLI”) policies. These life insurance policies on members of management and other key employees are used by Southwest to indemnify itself against the loss of talent, expertise, and knowledge, as well as to provide indirect funding for certain nonqualified benefit plans. Balances reflect impacts of equity and fixed-income securities underlying the cash surrender values at each reporting date; however, ultimately, only the insurance proceeds are ever actually received, due to management’s intent to hold the policies to maturity.

Cash and Cash Equivalents.  For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and financial instruments with original maturities of three months or less. Such investments are carried at cost, which approximates market value. Cash and cash equivalents for Southwest and the Company also include money market fund investments totaling approximately $40,000 and $49,000, respectively, at March 31, 2020, and $23.5 million and $26.7 million, respectively, at December 31, 2019, which fall within Level 2 of the fair value hierarchy, due to the asset valuation methods used by money market funds.

Typical non-cash investing activities for Southwest include customer advances applied as contributions toward utility construction activity, capital expenditures that were not paid as of period end reporting dates but rather included in accounts payable, and right-of use assets obtained in exchange for lease liabilities, which are non-cash investing and financing activities. Amounts related to such activities were immaterial for the periods presented herein.

Intercompany Transactions. Centuri recognizes revenues generated from contracts with Southwest (see Note 7 – Segment Information). The accounts receivable balance, revenues, and associated profits are included in the condensed consolidated financial statements of the Company and Southwest and were not eliminated during consolidation in accordance with accounting treatment for rate-regulated entities.

Accounts Receivable, net of allowances. On January 2, 2020, the Company adopted the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Update (“ASU”) 2016-13 “Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss, or CECL, methodology. The Company adopted ASU 2016-13 using the modified retrospective method, and therefore, results for reporting periods beginning prior to January 1, 2020 are presented under previously accepted U.S. GAAP. See Recent Accounting Standards Updates below.

Business activity with respect to natural gas utility operations is conducted with customers located within the three-state region of Arizona, Nevada, and California. Southwest’s Accounts receivable are short-term in nature with no billing due dates customarily extending beyond one month, with customers’ credit worthiness assessed upon account creation by evaluation of other utility service and related payments history. Although Southwest seeks to minimize its credit risk related to utility operations by requiring security deposits from new customers, imposing late fees, and actively pursuing collection on overdue accounts, some accounts are ultimately not collected. Customer accounts are subject to collection procedures that vary by jurisdiction (late fee assessment, noticing requirements for disconnection of service, and procedures for actual disconnection and/or reestablishment of service). After disconnection of service, accounts are customarily written off approximately two months after inactivation. Dependent upon the jurisdiction, reestablishment of service requires both payment of previously unpaid balances and additional deposit requirements. Provisions for uncollectible accounts are recorded monthly based on experience, consideration of current and expected future conditions, customer and rate composition, and write-off processes. They are included in the ratemaking process as a cost of service. The Nevada jurisdictions have a regulatory mechanism associated with the gas cost-related portion of uncollectible accounts. Such amounts are deferred and collected through a surcharge in the ratemaking process. Due to the

---

COVID-19 pandemic, and as utility service is an essential service to the residents in the states in which Southwest operates, Southwest implemented a temporary moratorium on disconnection of natural gas service for non-payment and it also ceased charging late fees until further notice. Southwest is also actively working with customers experiencing financial hardship by means of flexible payment options. Management is monitoring expected credit losses in light of the evolving financial impact of COVID-19, and has adjusted the allowance for uncollectibles as of March 31, 2020 as a result of the anticipated impact on Southwest’s customers’ ability to pay amounts due both currently and when the moratorium is lifted. The adjustment was not material to the financial statements overall, and entering the summer season, during which time monthly billing amounts are substantially reduced, management does not expect a material increase to the allowance for uncollectibles.

Utility infrastructure services contracts receivable are recorded at face amounts less an allowance for doubtful accounts. Centuri’s customers are generally investment-grade gas and electric utility companies for which Centuri has historically recognized an insignificant amount of write-offs. Centuri’s trade accounts receivable balances carry standard payment terms of up to 60 days. Centuri maintains an allowance that is an estimate based on historical collection experience, current and forward-looking estimated economic and market conditions, and a review of the current status of each customer's trade accounts receivable balance. Account balances are monitored at least monthly, and are charged-off against the allowance when management determines it is probable the balance will not be recovered. Centuri has not been significantly impacted, nor does it anticipate it will experience significant difficulty in collecting amounts due as a result of COVID-19 given the nature of its customers.

Activity in the allowance for uncollectibles and the balances as of the periods presented within the Company’s and Southwest’s financial statements are not material to the condensed consolidated financial statements.

Income Taxes. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. The CARES Act provides a number of tax provisions and stimulus measures, including changes to prior and future limitations on interest deductions, the ability to accelerate refund of Alternative Minimum Tax credits, elective deferment of payment related to the employer portion of Social Security taxes, and the creation of certain refundable employee retention credits, among other things. Management does not anticipate the impacts, if any, related to the CARES Act to have a material effect on the Company’s or Southwest’s results of operations, financial position, or liquidity.

Prepaid and other current assets. Prepaid and other current assets includes gas pipe materials and operating supplies of $53 million at March 31, 2020 and $57 million at December 31, 2019 (carried at weighted average cost), in addition to $33 million at December 31, 2019 related to a regulatory asset associated with the Arizona decoupling mechanism (an alternative revenue program), with no corresponding asset balance at March 31, 2020.

Goodwill. Goodwill is assessed as of October 1st each year for impairment, or more frequently, if circumstances indicate an impairment to the carrying value of goodwill may have occurred. Management of the Company and Southwest considered its reporting units and segments and determined that its segments and reporting units remain consistent between periods presented below, and that no change was necessary with regard to the level at which goodwill is assessed for impairment. Since December 31, 2019, management also qualitatively assessed whether events during the 1st quarter of 2020 may have resulted in conditions whereby the carrying value of goodwill was higher than its fair value, which if the case, could be an indication of a permanent impairment. Through this assessment, no such condition was believed to have existed and therefore, no impairment was deemed to have occurred in the first three months of 2020.

(Thousands of dollars)		Natural Gas Operations				Utility Infrastructure Services				Total Company
December 31, 2019		$	10,095			$	332,928			$	343,023
Foreign currency translation adjustment		—				(9,080		)		(9,080		)
March 31, 2020		$	10,095			$	323,848			$	333,943

Other Current Liabilities. Management recognizes in its balance sheets various liabilities that are expected to be settled through future cash payment with the next twelve months, including amounts payable under regulatory mechanisms, customary accrued expenses for employee compensation and benefits, declared but unpaid dividends, and miscellaneous other accrued liabilities. Other current liabilities for Southwest include $25.9 million and $25.2 million of dividends declared by Southwest Gas Corporation, but not yet paid to Southwest Gas Holdings, Inc. as of March 31, 2020 and December 31, 2019, respectively.

---

Other Income (Deductions). The following table provides the composition of significant items included in Other income (deductions) in the Condensed Consolidated Statements of Income:

	Three Months ended March 31,								Twelve Months Ended March 31,
(Thousands of dollars)	2020				2019				2020				2019
Southwest Gas Corporation - natural gas operations segment:
Change in COLI policies	$	(15,500	)		$	7,600			$	(5,700	)		$	5,100
Interest income	1,388				1,597				6,147				6,199
Equity AFUDC	1,061				960				4,262				4,358
Other components of net periodic benefit cost	(5,005		)		(3,765		)		(16,299		)		(19,560		)
Miscellaneous income and (expense)	(2,480		)		(446		)		(5,375		)		(2,788		)
Southwest Gas Corporation - total other income (deductions)	(20,536		)		5,946				(16,965		)		(6,691		)
Utility infrastructure services segment:
Interest income	—				—				—				87
Foreign transaction gain (loss)	(10		)		531				5				162
Miscellaneous income and (expense)	(232		)		344				(656		)		125
Centuri - total other income (deductions)	(242		)		875				(651		)		374
Corporate and administrative	8				18				92				64
Consolidated Southwest Gas Holdings, Inc. - total other income (deductions)	$	(20,770	)		$	6,839			$	(17,524	)		$	(6,253	)

Included in the table above is the change in cash surrender values of COLI policies (including net death benefits recognized). Current tax regulations provide for tax-free treatment of life insurance (death benefit) proceeds. Therefore, changes in the cash surrender values of COLI policies, as they progress towards the ultimate death benefits, are also recorded without tax consequences. Refer to Other Property and Investments above and also to Note 2 – Components of Net Periodic Benefit Cost.

Derivatives. In managing its natural gas supply portfolios, Southwest has historically entered into fixed- and variable-price contracts, which qualify as derivatives. Additionally, Southwest has utilized fixed-for-floating swap contracts (“Swaps”) to supplement its fixed-price contracts. The fixed-price contracts, firm commitments to purchase a fixed amount of gas in the future at a fixed price, qualify for the normal purchases and normal sales exception that is allowed for contracts that are probable of delivery in the normal course of business, and are exempt from fair value reporting. The variable-price contracts qualify as derivative instruments; however, because the contract prices are the prevailing prices at the future transaction dates, the contracts have no determinable fair value. The Swap contract prices are determined at the beginning of each month to reflect that month’s published first of month index price and are recorded at fair value (Level 2). Southwest does not utilize derivative financial instruments for speculative purposes, nor does it have trading operations.

Management does not currently anticipate entering into new Swaps in the near term; the longest maturity date of the Swaps as of March 31, 2020 is October 2020.

Pursuant to regulatory deferral accounting treatment for rate-regulated entities, unrealized gains and losses in fair value of the Swaps are recorded as a regulatory asset and/or liability. When the Swaps mature, any prior positions held are reversed and the settled position is recorded as an increase or decrease of purchased gas under the related purchase gas adjustment (“PGA”) mechanism in determining the deferred PGA balances. Neither changes in fair value nor settled amounts of Swaps have a direct effect on earnings or other comprehensive income, since following settlement, amounts are reflected in Net cost of gas sold at the same time they are included in Gas operating revenues through updates to the PGA component of rates.

Master netting arrangements exist with each counterparty that provide for the net settlement (in the settlement month) of all contracts through a single payment. As applicable, management has elected to reflect the net amounts in its balance sheets, which were immaterial at March 31, 2020. There was no outstanding collateral associated with the Swaps during any period reflected on the Condensed Consolidated Balance Sheets.

Previously, Southwest entered into forward-starting interest rate swaps (“FSIRS”), the settled positions for which are immaterial and continue to be amortized from Accumulated other comprehensive income (loss) into interest expense.

Redeemable Noncontrolling Interest. In connection with the acquisition of Linetec in November 2018, the previous owner retained a 20% equity interest in Linetec, the reduction of which is subject to certain rights based on the passage of time or upon the occurrence of certain triggering events.

Significant changes in the value of the redeemable noncontrolling interest, above a floor established at the acquisition date, are recognized as they occur, and the carrying value is adjusted as necessary at each reporting date. The fair value is estimated using

---

a market approach that utilizes certain financial metrics from guideline public companies of similar industry and operating characteristics. However, the carrying value was greater than the fair value as of March 31, 2020, and no previous upward redemption value adjustments were made following the acquisition date. SEC guidance indicates that a redemption value adjustment would not be made under these circumstances. The following depicts the change to the balance of the redeemable noncontrolling interest:

(Thousands of dollars):	Redeemable Noncontrolling Interest
Balance, December 31, 2019	$	84,542
Net income attributable to redeemable noncontrolling interest	463
Balance, March 31, 2020	$	85,005

Earnings Per Share. Basic earnings per share (“EPS”) in each period of this report were calculated by dividing net income attributable to Southwest Gas Holdings, Inc. by the weighted-average number of shares during those periods. Diluted EPS includes additional weighted-average common stock equivalents (performance shares and restricted stock units). Unless otherwise noted, the term “Earnings Per Share” refers to Basic EPS. A reconciliation of the denominator used in the Basic and Diluted EPS calculations is shown in the following table:

		Three Months Ended March 31,						Twelve Months Ended March 31,
(In thousands)		2020			2019			2020			2019
Average basic shares		55,310			53,369			54,726			50,640
Effect of dilutive securities:
Management Incentive Plan shares		—			11			9			22
Restricted stock units (1)		53			44			57			39
Average diluted shares		55,363			53,424			54,792			50,701

(1) The number of securities granted included 50,000 and 40,000 performance shares during the three months ending March 31, 2020 and 2019 and 48,000 and 29,000 performance shares during the twelve months ending March 31, 2020 and 2019, respectively, the total of which was derived by assuming that target performance will be achieved during the relevant performance period.

Recent Accounting Standards Updates.

Accounting pronouncements adopted in 2020:

In June 2016, the FASB issued ASU 2016-13 update “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The update requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company and Southwest adopted the update in the first quarter of 2020, and concluded the impact was not material to the condensed consolidated financial statements of the Company or Southwest. See Accounts receivable, net of allowances above.

In January 2017, the FASB issued ASU 2017-04 “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Under the update, an entity will apply a one-step quantitative test as opposed to a two-step test as currently required, and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment. The Company and Southwest adopted the update in the first quarter of 2020 and will apply the update prospectively in any future goodwill impairment tests.

In August 2018, the FASB issued ASU 2018-15 “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” The update generally aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement (that is a service contract) with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, with the exception that such costs are to be included in the same line item in the balance sheet that a prepayment of the fees associated with the arrangement would be presented. Once capitalized, the update requires the entity to expense the amount capitalized over the term of the hosting arrangement, including reasonably certain renewal periods. The Company and Southwest adopted the update in the first quarter of 2020 using the prospective transition method. There were no material implementation costs related to cloud computing arrangements for the Company and Southwest in the first quarter of 2020.

---

Recently issued accounting pronouncements that will be effective after 2020:

In August 2018, the FASB issued ASU 2018-14 “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” This update removes disclosures that are no longer considered cost-beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. The update applies to all employers that sponsor defined benefit pension or other postretirement plans. The update is effective for fiscal years ending after December 15, 2020. Upon adoption, the Company and Southwest will modify their disclosures to conform to the requirements of the update.

In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The update simplifies the accounting for income taxes by removing certain exceptions to the general principles, as well as improving consistent application in Topic 740 by clarifying and amending existing guidance. The update is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted for periods for which financial statements have not yet been made available for issuance. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures.

In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The update provides optional guidance for a limited time to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The update applies only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made or entered into after December 31, 2022. Management is evaluating the impacts this update might have on the Company’s and Southwest’s consolidated financial statements and disclosures. See also LIBOR discussion in Note 5 – Debt.

---

Note 2 – Components of Net Periodic Benefit Cost

Southwest has a noncontributory qualified retirement plan with defined benefits covering substantially all employees and a separate unfunded supplemental retirement plan (“SERP”) which is limited to officers. Southwest also provides postretirement benefits other than pensions (“PBOP”) to its qualified retirees for health care, dental, and life insurance.

The service cost component of net periodic benefit costs included in the table below are components of an overhead loading process associated with the cost of labor. The overhead process ultimately results in allocation of that portion of overall net periodic benefit costs to the same accounts to which productive labor is charged. As a result, service costs become components of various accounts, primarily operations and maintenance expense, net utility plant, and deferred charges and other assets for both the Company and Southwest. The other components of net periodic benefit cost are reflected in Other income (deductions) on the Condensed Consolidated Statements of Income of each entity.

	Qualified Retirement Plan
	March 31,
	Three Months								Twelve Months
	2020				2019				2020				2019
(Thousands of dollars)
Service cost	$	8,574			$	6,466			$	27,972			$	27,882
Interest cost	11,388				12,252				48,142				45,383
Expected return on plan assets	(16,324		)		(15,061		)		(61,507		)		(59,127		)
Amortization of net actuarial loss	9,007				5,589				25,774				29,675
Net periodic benefit cost	$	12,645			$	9,246			$	40,381			$	43,813
	SERP
	March 31,
	Three Months								Twelve Months
	2020				2019				2020				2019
(Thousands of dollars)
Service cost	$	98			$	66			$	298			$	250
Interest cost	401				440				1,721				1,683
Amortization of net actuarial loss	451				255				1,216				1,382
Net periodic benefit cost	$	950			$	761			$	3,235			$	3,315
	PBOP
	March 31,
	Three Months								Twelve Months
	2020				2019				2020				2019
(Thousands of dollars)
Service cost	$	396			$	319			$	1,353			$	1,424
Interest cost	645				762				2,929				2,823
Expected return on plan assets	(852		)		(789		)		(3,219		)		(3,577		)
Amortization of prior service costs	289				317				1,243				1,318
Net periodic benefit cost	$	478			$	609			$	2,306			$	1,988

---

Note 3 – Revenue

The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas operations segment and Centuri encompasses the utility infrastructure services segment.

Natural Gas Operations Segment:

Gas operating revenues on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, and various categories of revenue:

	Three Months Ended March 31,								Twelve Months Ended March 31,
(Thousands of dollars)	2020				2019				2020				2019
Residential	$	378,555			$	417,228			$	934,115			$	959,837
Small commercial	82,463				89,610				241,970				256,750
Large commercial	12,667				13,962				47,640				51,714
Industrial/other	6,702				6,478				22,298				23,457
Transportation	24,406				24,902				91,884				87,838
Revenue from contracts with customers	504,793				552,180				1,337,907				1,379,596
Alternative revenue program revenues (deferrals)	(3,765		)		(34,545		)		5,668				(15,775		)
Other revenues	1,799				3,042				7,514				20,271
Total Gas operating revenues	$	502,827			$	520,677			$	1,351,089			$	1,384,092

Utility Infrastructure Services Segment:

The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types:

	Three Months Ended March 31,								Twelve Months Ended March 31,
(Thousands of dollars)	2020				2019				2020				2019
Service Types:
Gas infrastructure services	$	217,709			$	197,893			$	1,258,790			$	1,128,048
Electric power infrastructure services	72,320				52,301				267,736				79,528
Other	43,464				62,668				245,083				367,554
Total Utility infrastructure services revenues	$	333,493			$	312,862			$	1,771,609			$	1,575,130

	Three Months Ended March 31,								Twelve Months Ended March 31,
(Thousands of dollars)	2020				2019				2020				2019
Contract Types:
Master services agreement	$	263,545			$	235,655			$	1,411,267			$	1,143,603
Bid contract	69,948				77,207				360,342				431,527
Total Utility infrastructure services revenues	$	333,493			$	312,862			$	1,771,609			$	1,575,130
Unit price contracts	$	243,136			$	235,686			$	1,387,706			$	1,296,783
Fixed price contracts	27,545				38,538				101,931				130,295
Time and materials contracts	62,812				38,638				281,972				148,052
Total Utility infrastructure services revenues	$	333,493			$	312,862			$	1,771,609			$	1,575,130

---

The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract asset), which are both included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liability), which are included in Other current liabilities as of March 31, 2020 and December 31, 2019 on the Company’s Condensed Consolidated Balance Sheets:

(Thousands of dollars)	March 31, 2020				December 31, 2019
Contracts receivable, net	$	174,228			$	223,904
Revenue earned on contracts in progress in excess of billings	99,967				99,399
Amounts billed in excess of revenue earned on contracts	4,716				4,525

The revenue earned on contracts in progress in excess of billings (contract asset) primarily relates to Centuri’s rights to consideration for work completed but not billed and/or approved for billing at the reporting date. These contract assets are transferred to contracts receivable when the rights become unconditional. The amounts billed in excess of revenue earned (contract liability) primarily relate to the advance consideration received from customers for which work has not yet been completed. The change in this contract liability balance from December 31, 2019 to March 31, 2020 is due to revenue recognized of $4.5 million that was included in this item as of January 1, 2020, after which time it became earned and the balance was reduced, and to increases due to cash received, net of revenue recognized during the period related to contracts that commenced during the period.

For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Further, because of the short duration of these contracts, Centuri has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue.

As of March 31, 2020, Centuri had 23 contracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of March 31, 2020 was $68.2 million. Centuri expects to recognize the remaining performance obligations over approximately the next two years; however, the timing of that recognition is largely within the control of the customer, including when the necessary equipment and materials required to complete the work are provided by the customer.

Utility infrastructure services contracts receivable consists of the following:

(Thousands of dollars)	March 31, 2020				December 31, 2019
Billed on completed contracts and contracts in progress	$	169,023			$	216,268
Other receivables	5,644				8,456
Contracts receivable, gross	174,667				224,724
Allowance for doubtful accounts	(439		)		(820		)
Contracts receivable, net	$	174,228			$	223,904

---

Note 4 – Common Stock

Only shares of the Company’s common stock are publicly traded on the New York Stock Exchange, under the ticker symbol “SWX.” Share-based compensation related to Southwest and Centuri is based on stock awards to be issued in shares of Southwest Gas Holdings, Inc.

On May 8, 2019, the Company filed with the SEC an automatic shelf registration statement on Form S-3 (File No. 333-231297), which became effective upon filing, for the offer and sale of up to $300 million of common stock from time to time in at-the-market offerings under the prospectus included therein and in accordance with the Sales Agency Agreement, dated May 8, 2019, between the Company and BNY Mellon Capital Markets, LLC (the “Equity Shelf Program”). The Company sold no shares under the Equity Shelf Program during the three months ended March 31, 2020. The following table provides the activity under the Equity Shelf Program for the life-to-date period ended March 31, 2020:

	Life-To-Date Ended
	March 31, 2020
Gross proceeds	$	124,337,247
Less: agent commissions	(1,243,372		)
Net proceeds	$	123,093,875
Number of shares sold	1,478,945
Weighted average price per share	$	84.07

As of March 31, 2020, the Company had up to $175,662,753 of common stock available for sale under the program. Net proceeds from the sale of shares of common stock under the Equity Shelf Program are intended for general corporate purposes, including the acquisition of property for the construction, completion, extension, or improvement of pipeline systems and facilities located in and around the communities served by Southwest.

During the three months ended March 31, 2020, the Company issued approximately 72,000 shares of common stock through the Restricted Stock/Unit Plan and Management Incentive Plan.

Additionally, during the three months ended March 31, 2020, the Company issued 47,000 shares of common stock through the Dividend Reinvestment and Stock Purchase Plan, raising approximately $3.1 million.

Note 5 – Debt

Long-Term Debt

Long-term debt is recognized in the Company’s and Southwest’s Condensed Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. However, details surrounding the fair value and individual carrying values of instruments are discussed below or provided in the table that follows.

Southwest’s revolving credit facility (including commercial paper) and the variable-rate Industrial Development Revenue Bonds (“IDRBs”) approximate their carrying values. The fair values of the revolving credit facility and IDRBs are categorized as Level 1 based on the FASB’s fair value hierarchy, due to Southwest’s ability to access similar debt arrangements at measurement dates with comparable terms, including variable/market rates. Additionally, the borrowings by Southwest under its revolving credit facility are generally repaid quickly and the IDRBs have interest rates that reset frequently.

The fair values of Southwest’s debentures (which include senior and medium-term notes) were determined utilizing a market-based valuation approach, where fair values are determined based on evaluated pricing data, such as broker quotes and yields for similar securities adjusted for observable differences. Significant inputs used in the valuation generally include benchmark yield curves, credit ratings, and issuer spreads. The external credit rating, coupon rate, and maturity of each security are considered in the valuation, as applicable. The fair values of debentures are categorized as Level 2. 

The Centuri secured revolving credit and term loan facility and Centuri’s other debt obligations (not actively traded) are categorized as Level 3. Because Centuri’s debt is not publicly traded, fair values for its secured revolving credit and term loan facility and other debt obligations were based on a conventional discounted cash flow methodology utilizing current market pricing yield curves, across Centuri’s debt maturity spectrum, of other industrial bonds with an assumed credit rating comparable to the Company’s.

---

		March 31, 2020								December 31, 2019
		Carrying Amount				Market Value				Carrying Amount				Market Value
(Thousands of dollars)
Southwest Gas Corporation:
Debentures:
Notes, 4.45%, due 2020		$	125,000			$	125,975			$	125,000			$	126,673
Notes, 6.1%, due 2041		125,000				178,950				125,000				162,666
Notes, 3.875%, due 2022		250,000				252,688				250,000				258,550
Notes, 4.875%, due 2043		250,000				290,645				250,000				291,928
Notes, 3.8%, due 2046		300,000				278,106				300,000				308,307
Notes, 3.7%, due 2028		300,000				311,565				300,000				320,685
Notes, 4.15%, due 2049		300,000				297,987				300,000				330,138
8% Series, due 2026		75,000				96,435				75,000				96,905
Medium-term notes, 7.78% series, due 2022		25,000				27,293				25,000				27,500
Medium-term notes, 7.92% series, due 2027		25,000				32,621				25,000				32,543
Medium-term notes, 6.76% series, due 2027		7,500				9,185				7,500				9,156
Unamortized discount and debt issuance costs		(14,220		)						(14,450		)
		1,768,280								1,768,050
Revolving credit facility and commercial paper		150,000				150,000				150,000				150,000
Industrial development revenue bonds:
Variable-rate bonds:
Tax-exempt Series A, due 2028		50,000				50,000				50,000				50,000
2003 Series A, due 2038		50,000				50,000				50,000				50,000
2008 Series A, due 2038		50,000				50,000				50,000				50,000
2009 Series A, due 2039		50,000				50,000				50,000				50,000
Unamortized discount and debt issuance costs		(1,656		)						(1,717		)
		198,344								198,283
Less: current maturities		(125,000		)						(125,000		)
Long-term debt, less current maturities - Southwest Gas Corporation		$	1,991,624							$	1,991,333
Centuri:
Centuri term loan facility		$	232,642			$	228,304			$	244,812			$	252,182
Unamortized debt issuance costs		(1,031		)						(1,101		)
		231,611								243,711
Centuri secured revolving credit facility		42,666				42,658				60,021				60,057
Centuri other debt obligations		88,757				87,758				43,929				44,787
Less: current maturities		(44,574		)						(38,512		)
Long-term debt, less current maturities - Centuri		$	318,460							$	309,149
Consolidated Southwest Gas Holdings, Inc.:
Southwest Gas Corporation long-term debt		$	2,116,624							$	2,116,333
Centuri long-term debt		363,034								347,661
Less: current maturities		(169,574		)						(163,512		)
Long-term debt, less current maturities - Southwest Gas Holdings, Inc.		$	2,310,084							$	2,300,482

Southwest has a $400 million credit facility, for which it has designated $150 million of associated capacity as long-term debt and the remaining $250 million, for working capital purposes. Interest rates for the credit facility are calculated at either the London Interbank Offered Rate (“LIBOR”) or an “alternate base rate,” plus in each case an applicable margin that is determined based on Southwest’s senior unsecured debt rating. At March 31, 2020, the applicable margin is 1% for loans bearing interest with reference to LIBOR and 0% for loans bearing interest with reference to the alternative base rate. At March 31, 2020, the full $150 million was outstanding on the long-term portion of the facility.

---

On April 10, 2020, Southwest amended its credit facility agreement; total borrowing capacity under the amended agreement remains $400 million. The amended agreement extends the maturity date from March 2022 to April 2025. Interest rates for the facility are calculated at either LIBOR or an “alternate base rate,” plus in each case an applicable margin determined based on Southwest’s senior unsecured long-term debt rating. The applicable margin ranges from 0.750% to 1.500% for loans bearing interest with reference to LIBOR and from 0.000% to 0.500% for loans bearing interest with reference to an alternate base rate. Upon the occurrence of certain events providing for a transition away from LIBOR, or if LIBOR is no longer a widely recognized benchmark rate, Southwest may amend the credit facility with a replacement rate as set forth in the amended agreement. Southwest is also required to pay a commitment fee on the unfunded portion of the commitments based on its senior unsecured long-term debt rating. The commitment fee ranges from 0.075% to 0.200% per annum. The amended agreement contains certain representations and warranties and affirmative and negative covenants similar to those contained in the previous agreement. In addition, the amended agreement contains a financial covenant requiring Southwest to maintain a ratio of funded debt to total capitalization not to exceed 0.70 to 1.00 as of the end of any quarter of any fiscal year.

Southwest has a $50 million commercial paper program. Issuances under the commercial paper program are supported by Southwest’s revolving credit facility and, therefore, do not represent additional borrowing capacity under the credit facility. Borrowings under the commercial paper program are designated as long-term debt. Interest rates for the program are calculated at the then current commercial paper rate. At March 31, 2020, no borrowings were outstanding under the commercial paper program.

Centuri has a $590 million senior secured revolving credit and term loan facility, scheduled to expire in November 2023. The capacity of the line of credit portion of the facility is $325 million; amounts borrowed and repaid are available to be re-borrowed. The term loan portion of the facility has a limit of approximately $265 million. The $590 million facility is secured by substantially all of Centuri’s assets except those explicitly excluded under the terms of the agreement (including owned real estate and certain certificated vehicles). Centuri’s assets securing the facility at March 31, 2020 totaled $1.2 billion. At March 31, 2020, $275 million in borrowings were outstanding under the Centuri’s combined secured revolving credit and term loan facility. Centuri also received proceeds of $50 million in equipment loans in 2020, which were used for repayment of outstanding borrowings on the line of credit.

Short-Term Debt

Southwest Gas Holdings, Inc. has a $100 million credit facility that is primarily used for short-term financing needs. There was $60 million outstanding under this credit facility as of March 31, 2020.

On April 10, 2020, Southwest Gas Holdings, Inc. amended its existing credit facility, extending the maturity date to April 2025. The revolving borrowing capacity under the amended agreement remains at $100 million. Interest rates for the amended facility are calculated at either LIBOR or an “alternate base rate,” plus in each case an applicable margin that is determined based on Southwest Gas Holdings, Inc.’s senior unsecured long-term debt rating. The applicable margin ranges from 0.750% to 1.500% for loans bearing interest with reference to LIBOR and from 0.000% to 0.500% for loans bearing interest with reference to the alternate base rate. Upon the occurrence of certain events providing for a transition away from LIBOR, or if LIBOR is no longer a widely recognized benchmark rate, Southwest Gas Holdings, Inc. may amend the credit facility agreement with a replacement rate, as set forth in the amended agreement. Southwest Gas Holdings, Inc. is also required to pay a commitment fee on the unfunded portion of the commitments based on its senior unsecured long-term debt rating. The commitment fee ranges from 0.075% to 0.200% per annum. The amended agreement contains certain representations and warranties and affirmative and negative covenants similar to those contained in the previous agreement. In addition, the amended agreement contains a financial covenant requiring Southwest Gas Holdings, Inc. to maintain a ratio of funded debt to total capitalization not to exceed 0.70 to 1.00 as of the end of any quarter of any fiscal year.

As discussed previously, under Southwest’s $400 million credit facility, $250 million has been designated by management for working capital purposes. Southwest had $97 million of short-term borrowings outstanding at March 31, 2020 under this facility.

LIBOR

It is currently anticipated that LIBOR may be discontinued as a benchmark or reference rate after 2021. As of March 31, 2020, $60 million, $247 million, and $177 million, respectively, for the holding company, Southwest, and Centuri was outstanding under their credit facilities whereby interest was with reference to LIBOR and for which maturity dates extend beyond 2021. These amounts reflect approximately 11% of Southwest’s total debt, and 18% of total debt (including current maturities) for the Company overall. Southwest and Southwest Gas Holdings, Inc. (see above) in amending their respective facilities in April 2020 may make further amendments with replacement rates if LIBOR is discontinued. However, replacement rates are not currently determinable. In order to mitigate the impact of a discontinuance on the Company’s and Southwest’s financial condition and results of operations, management will continue to monitor developments and work with lenders to determine the appropriate replacement/alternative reference rate for variable rate debt. At this time the Company and Southwest can provide no assurances as to the impact a LIBOR

---

discontinuance will have on their financial condition or results of operations. Any alternative rate may be less predicable or less attractive than LIBOR.

Note 6 – Other Comprehensive Income and Accumulated Other Comprehensive Income

The following information provides insight into amounts impacting the Company’s Other comprehensive income (loss), both before and after-tax impacts, within the Condensed Consolidated Statements of Comprehensive Income, which also impact Accumulated other comprehensive income (“AOCI”) in the Condensed Consolidated Balance Sheets and the Condensed Consolidated Statements of Equity.

Related Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss)

		Three Months Ended March 31, 2020												Three Months Ended March 31, 2019
(Thousands of dollars)		Before- Tax Amount				Tax (Expense) or Benefit (1)				Net-of- Tax Amount				Before- Tax Amount				Tax (Expense) or Benefit (1)				Net-of- Tax Amount
Defined benefit pension plans:
Amortization of prior service cost		$	289			$	(69	)		$	220			$	317			$	(76	)		$	241
Amortization of net actuarial (gain)/loss		9,458				(2,270		)		7,188				5,844				(1,403		)		4,441
Regulatory adjustment		(8,395		)		2,015				(6,380		)		(5,347		)		1,284				(4,063		)
Pension plans other comprehensive income (loss)		1,352				(324		)		1,028				814				(195		)		619
FSIRS (designated hedging activities):
Amounts reclassified into net income		837				(201		)		636				836				(201		)		635
FSIRS other comprehensive income (loss)		837				(201		)		636				836				(201		)		635
Total other comprehensive income (loss) - Southwest Gas Corporation		2,189				(525		)		1,664				1,650				(396		)		1,254
Foreign currency translation adjustments:
Translation adjustments		(4,005		)		—				(4,005		)		791				—				791
Foreign currency other comprehensive income (loss)		(4,005		)		—				(4,005		)		791				—				791
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.		$	(1,816	)		$	(525	)		$	(2,341	)		$	2,441			$	(396	)		$	2,045

		Twelve Months Ended March 31, 2020												Twelve Months Ended March 31, 2019
(Thousands of dollars)		Before- Tax Amount				Tax (Expense) or Benefit (1)				Net-of- Tax Amount				Before- Tax Amount				Tax (Expense) or Benefit (1)				Net-of- Tax Amount
Defined benefit pension plans:
Net actuarial gain/(loss)		$	(71,087	)		$	17,061			$	(54,026	)		$	(20,426	)		$	4,902			$	(15,524	)
Amortization of prior service cost		1,243				(298		)		945				1,318				(316		)		1,002
Amortization of net actuarial (gain)/loss		26,990				(6,477		)		20,513				31,057				(7,454		)		23,603
Prior service cost		(1,878		)		452				(1,426		)		—				—				—
Regulatory adjustment		33,896				(8,136		)		25,760				(6,020		)		1,446				(4,574		)
Pension plans other comprehensive income (loss)		(10,836		)		2,602				(8,234		)		5,929				(1,422		)		4,507
FSIRS (designated hedging activities):
Amounts reclassified into net income		3,345				(803		)		2,542				3,344				(803		)		2,541
FSIRS other comprehensive income (loss)		3,345				(803		)		2,542				3,344				(803		)		2,541
Total other comprehensive income (loss) - Southwest Gas Corporation		(7,491		)		1,799				(5,692		)		9,273				(2,225		)		7,048
Foreign currency translation adjustments:
Translation adjustments		(2,758		)		—				(2,758		)		(1,308		)		—				(1,308		)
Foreign currency other comprehensive income (loss)		(2,758		)		—				(2,758		)		(1,308		)		—				(1,308		)
Total other comprehensive income (loss) - Southwest Gas Holdings, Inc.		$	(10,249	)		$	1,799			$	(8,450	)		$	7,965			$	(2,225	)		$	5,740

(1)Tax amounts are calculated using a 24% rate. The Company has elected to indefinitely reinvest the earnings of Centuri’s Canadian subsidiaries in Canada, thus precluding deferred taxes on such earnings. As a result of this assertion, and no repatriation of earnings anticipated, the Company is not recognizing a tax effect or presenting a tax expense or benefit for currency translation adjustments reported in Other comprehensive income (loss).

Approximately $2.2 million of realized losses (net of tax) related to Southwest’s forward-starting interest rate swaps (“FSIRS”), included in AOCI at March 31, 2020, will be reclassified into interest expense within the next 12 months as the related interest payments on long-term debt occur.

---

The following table represents a rollforward of AOCI, presented on the Company’s Condensed Consolidated Balance Sheets and its Condensed Consolidated Statements of Equity:

		Defined Benefit Plans												FSIRS												Foreign Currency Items
(Thousands of dollars)		Before-Tax				Tax (Expense) Benefit (4)				After-Tax				Before-Tax				Tax (Expense) Benefit (4)				After-Tax				Before-Tax				Tax (Expense) Benefit				After-Tax				AOCI
Beginning Balance AOCI December 31, 2019		$	(66,601	)		$	15,985			$	(50,616	)		$	(5,966	)		$	1,431			$	(4,535	)		$	(1,581	)		$	—			$	(1,581	)		$	(56,732	)
Translation adjustments		—				—				—				—				—				—				(4,005		)		—				(4,005		)		(4,005		)
Other comprehensive income (loss) before reclassifications		—				—				—				—				—				—				(4,005		)		—				(4,005		)		(4,005		)
FSIRS amounts reclassified from AOCI (1)		—				—				—				837				(201		)		636				—				—				—				636
Amortization of prior service cost (2)		289				(69		)		220				—				—				—				—				—				—				220
Amortization of net actuarial loss (2)		9,458				(2,270		)		7,188				—				—				—				—				—				—				7,188
Regulatory adjustment (3)		(8,395		)		2,015				(6,380		)		—				—				—				—				—				—				(6,380		)
Net current period other comprehensive income (loss) attributable to Southwest Gas Holdings, Inc.		1,352				(324		)		1,028				837				(201		)		636				(4,005		)		—				(4,005		)		(2,341		)
Ending Balance AOCI March 31, 2020		$	(65,249	)		$	15,661			$	(49,588	)		$	(5,129	)		$	1,230			$	(3,899	)		$	(5,586	)		$	—			$	(5,586	)		$	(59,073	)

(1)The FSIRS reclassification amounts are included in Net interest deductions on the Company’s Condensed Consolidated Statements of Income.

(2)These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details).

(3)The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets).

(4)Tax amounts are calculated using a 24% rate.

The following table represents a rollforward of AOCI, presented on Southwest’s Condensed Consolidated Balance Sheets:

		Defined Benefit Plans												FSIRS
(Thousands of dollars)		Before-Tax				Tax (Expense) Benefit (8)				After-Tax				Before-Tax				Tax (Expense) Benefit (8)				After-Tax				AOCI
Beginning Balance AOCI December 31, 2019		$	(66,601	)		$	15,985			$	(50,616	)		$	(5,966	)		$	1,431			$	(4,535	)		$	(55,151	)
FSIRS amounts reclassified from AOCI (5)		—				—				—				837				(201		)		636				636
Amortization of prior service cost (6)		289				(69		)		220				—				—				—				220
Amortization of net actuarial loss (6)		9,458				(2,270		)		7,188				—				—				—				7,188
Regulatory adjustment (7)		(8,395		)		2,015				(6,380		)		—				—				—				(6,380		)
Net current period other comprehensive income attributable to Southwest Gas Corporation		1,352				(324		)		1,028				837				(201		)		636				1,664
Ending Balance AOCI March 31, 2020		$	(65,249	)		$	15,661			$	(49,588	)		$	(5,129	)		$	1,230			$	(3,899	)		$	(53,487	)

(5)    The FSIRS reclassification amounts are included in Net interest deductions on Southwest’s Condensed Consolidated Statements of Income.

(6)These AOCI components are included in the computation of net periodic benefit cost (see Note 2 – Components of Net Periodic Benefit Cost for additional details).

(7)The regulatory adjustment represents the portion of the activity above that is expected to be recovered through rates in the future (the related regulatory asset is included in Deferred charges and other assets on Southwest’s Condensed Consolidated Balance Sheets).

(8)Tax amounts are calculated using a 24% rate.

The following table represents amounts (before income tax impacts) included in AOCI (in the tables above), that have not yet been recognized in net periodic benefit cost:

(Thousands of dollars)		March 31, 2020				December 31, 2019
Net actuarial (loss) gain		$	(473,616	)		$	(483,074	)
Prior service cost		(3,352		)		(3,641		)
Less: amount recognized in regulatory assets		411,719				420,114
Recognized in AOCI		$	(65,249	)		$	(66,601	)

---

Note 7 – Segment Information

Centuri accounts for the services provided to Southwest at contractual prices at contract inception. Accounts receivable for these services, which are not eliminated during consolidation, are presented in the table below:

(Thousands of dollars)	March 31, 2020				December 31, 2019
Centuri accounts receivable for services provided to Southwest	$	16,263			$	15,235

The Company has two reportable segments: natural gas operations and utility infrastructure services. Southwest has a single reportable segment that is referred to herein as the natural gas operations segment of the Company. In order to reconcile to net income as disclosed in the Condensed Consolidated Statements of Income, an Other column is included associated with impacts of corporate and administrative activities related to Southwest Gas Holdings, Inc. The financial information pertaining to the natural gas operations and utility infrastructure services segments is as follows:

(Thousands of dollars)	Natural Gas Operations				Utility Infrastructure Services				Other				Total
Three Months Ended March 31, 2020
Revenues from external customers	$	502,827			$	300,291			$	—			$	803,118
Intersegment revenues	—				33,202				—				33,202
Total	$	502,827			$	333,493			$	—			$	836,320
Segment net income (loss)	$	83,599			$	(10,204	)		$	(853	)		$	72,542
Three Months Ended March 31, 2019
Revenues from external customers	$	520,677			$	274,189			$	—			$	794,866
Intersegment revenues	—				38,673				—				38,673
Total	$	520,677			$	312,862			$	—			$	833,539
Segment net income (loss)	$	103,389			$	(8,031	)		$	(549	)		$	94,809

(Thousands of dollars)	Natural Gas Operations				Utility Infrastructure Services				Other				Total
Twelve Months Ended March 31, 2020
Revenues from external customers	$	1,351,089			$	1,618,354			$	—			$	2,969,443
Intersegment revenues	—				153,255				—				153,255
Total	$	1,351,089			$	1,771,609			$	—			$	3,122,698
Segment net income (loss)	$	143,381			$	50,231			$	(1,943	)		$	191,669
Twelve Months Ended March 31, 2019
Revenues from external customers	$	1,384,092			$	1,427,701			$	—			$	2,811,793
Intersegment revenues	—				147,429				—				147,429
Total	$	1,384,092			$	1,575,130			$	—			$	2,959,222
Segment net income (loss)	$	151,882			$	47,947			$	(1,834	)		$	197,995

---

---

---

•	33,000 net new customers (1.6% growth rate) during the last 12 months

•	Operating margin increased $14 million

•	Company-Owned Life Insurance (“COLI”) income decreased $23 million between quarters

•	Filed general rate case in Nevada

•	Utility infrastructure services revenues increased $21 million, or 6.6%

•	Utility infrastructure services expenses increased $19 million, or 6.3%

•	Equipment purchases during the past 12 months resulted in a $3 million increase in depreciation

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---