Q4 2024 Southwest Gas Holdings Inc Earnings Call
and Bill Fehrman. Thank you. Thank you.
Welcome to Southwest Gas Holdings fourth quarter and full year 2024 earnings conference call.
Today's call is being recorded and our webcast is live.
At this time, all participants are in a listen-only mode.
Speaker Change: A question and answer session will follow the prepared remarks. If you would like to ask a question at that time, please press star 1 on your phone. I will now turn the call over to Justin Forsberg, Vice President of Investor Relations and Treasurer of Southwest Gas Holdings.
Justin Forsberg: Thanks, Constantine, and hello everyone. Thanks for joining the call today.
Justin Forsberg: This morning, we issued and posted to Southwest Gas Holdings website our fourth quarter and full year 2024 earnings release and the associated Form 10-K.
Justin Forsberg: The slides accompanying today's call are also available on Southwest Gas Holdings' website. We'll refer to those slides by number throughout the call today.
Justin Forsberg: Please note that on today's call we will address certain factors that may impact 2025 earnings and discuss some longer-term guidance. Some of the information that will be discussed today contains forward-looking statements.
Justin Forsberg: These statements are based on management's assumptions and what the future holds, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals.
Justin Forsberg: This cautionary note, as well as a note regarding non-GAP measures, is included on slides 2 and 3 of this presentation, in today's press release, and in our filings with the Securities and Exchange Commission, which we encourage you to review.
Justin Forsberg: These risks and uncertainties may cause actual results to differ materially from statements made today. We caution against placing undue reliance on any forward-looking statements, and we assume no obligation to update any such statement.
Karen Haller: As shown on slide 4, on today's call we have Karen Haller, President and CEO of Southwest Gas Holdings.
Justin Forsberg: and Rob Stefani, Chief Financial Officer of Southwest Gas Holdings, as well as Justin Brown, President of Southwest Gas Corporation, and other members of the management team available to answer your questions during the Q&A portion of the call today. I'll now turn the call over to Karen.
Speaker Change: Thanks, Justin. Thank you for joining us today to discuss the Southwest Gas Holdings results and outlook.
Speaker Change: Following the successful Century IPO last April and recent onboarding of Chris Brown as the new Century CEO, we continue to monitor market conditions with respect to our separation strategy options.
Speaker Change: And we remain very focused on completing the separation of century in a manner that is beneficial to shareholders.
Speaker Change: I'm extremely proud of the team's dedication and commitment throughout 2024, as we made significant progress positioning the utility for long-term success and growth.
Speaker Change: We advanced our regulatory strategy and are seeing positive impacts as we recover investments in enhancing safety, reliability, and our ability to meet the needs of our growing customer base.
Speaker Change: We have also begun to see tangible benefits of our utility optimization strategy.
Speaker Change: The utility finished the year with record annual operating margin performance and the second straight year of a return on equity over 8 percent.
Speaker Change: Customer growth and demand remain strong and the entire Southwest Gas team is focused on safely addressing the needs of our customers, investing in the communities we serve, and delivering value for our shareholders.
Speaker Change: We are strategically deploying capital and investing in our operations so that we can meet our customers' demand for safe, reliable, and affordable energy solutions.
Speaker Change: Southwest Gas has strong momentum heading into 2025 and we expect utility net income to land within the range of $265 to $275 million for the full year.
Speaker Change: We expect net income growth will be driven by margin improvements related to our regulatory strategy as well as our continued cost management efforts.
Speaker Change: Looking further out, we are planning for robust capital spending driven by economic activity in our service territories.
which we expect to drive strong rate-based growth.
Speaker Change: You can see our refreshed guidance metrics on the slide, and I'll discuss our short and long-term guidance expectations in more detail later on the call.
Speaker Change: I also want to reiterate our commitment to further improving our earned utility return on equity, maintaining investment-grade balance sheets, and paying competitive dividends to our shareholders.
Speaker Change: As you can see on slide 6, we achieved all our 2024 strategic priorities. We strengthened our balance sheets across the enterprise, increasing liquidity and preserving financial flexibility, while meaningfully advancing our regulatory strategy.
Speaker Change: As it relates to plans for Century's full separation, we onboarded a CEO at Century and continue to gauge market conditions for executing disposition transactions.
and Bill Fehrman.
which exit path could include some combination thereof.
Speaker Change: The successful execution of a sell-down or share exchange is contingent on favorable market conditions.
Speaker Change: So we have currently preserved the alternative of a tax-free spin. We expect our significant $1.5 billion net operating loss balance could serve as an offset to any taxable transactions.
Speaker Change: As a reminder, if we do execute a taxable transaction, the ability to execute a tax-free spin will no longer be possible.
Speaker Change: However, regardless of the form of an initial taxable transaction, whether it be a sell-down or share exchange, both of those options would remain on the table for further separation as we further downsize our ownership beyond the initial transaction.
Speaker Change: We remain committed to separating century, and we will provide further updates on timing and structure when available.
Speaker Change: On the right-hand side of the slide, you can see another priority in 2025 is our financing plan.
Speaker Change: which potentially includes the need to extend either all or a portion of the existing $550 million term loan facility at the Holco and expected issuances of less than $100 million of new equity under our existing ATM program.
Both of these items are contingent on successful execution.
from MidCityWorks.com.
Speaker Change: Justin Brown will discuss our regulatory progress and strategy in more detail in a moment, but I will note that while we have much ahead of us in 2025, we feel we are on track to achieve our regulatory and operational priorities.
Speaker Change: As noted on slide 7, our strong balance sheet provides us with the flexibility to be thoughtful in our approach to capital investments and our efforts to deliver shareholder value. I'll highlight a few of our team's achievements on slide 7.
Speaker Change: At the utility, we continue to see strong growth as a result of strong economic activity that continues to drive significant in-migration, with about 41,000 new meter sets added during the last 12 months.
Speaker Change: At the end of 2024, we had more than $360 million of cash on hand across the enterprise, enabling us to honor our commitments and execute our 2025 strategy.
We remain excited about the future of the company.
Now to Justin.
Justin: Thanks, Karen. On slide 9, you'll see an overview of the progress we made on our regulatory strategy.
Justin: In early 2024, we completed our general rate case in Nevada with a positive outcome, receiving approval to start recovering on the nearly $300 million of investments we've made to ensure safe and reliable service to our customers.
Justin: which resulted in a revenue increase of approximately $59 million, which represents 98% of our request after consideration to proposals on depreciation rates and cost of capital.
Justin: At Great Basin, refreshed rates went into effect in September, subject to refund, and were later adjusted in November to reflect settlement rates. And we anticipate a final decision being issued by April.
Justin: Our $50 million California case is progressing on schedule and as expected. We are scheduled to receive intervener testimony in April, with a hearing this summer and new rates effective in January of 2026.
Justin: I'll discuss Arizona in more detail on the next slide, but I'm pleased with the progress we've made on refreshing rates and minimizing regulatory lag in each of our jurisdictions as we remain steadfast in our commitment to working collaboratively with our regulators on constructive outcomes.
Justin: Turning to slide 10, our Arizona rape case continues to progress on schedule with the ALJ issuing a recommended opinion and order last week.
We intend to continue with the comm- we contend-
Justin: that were agreed upon at the time of hearing, including a $96 million revenue increase and an ROE of 9.65 percent.
Justin: and a fair value increment of 0.73%. The Commission is scheduled to vote on our case March 27.
Justin: You may recall our application included a proposal to implement a Capital Tracker program referred to as our System Integrity Mechanism, or SIM. The proposal, if accepted, will allow us to implement a surcharge each year to recover the non-revenue-producing investments we made in the prior year.
Justin: These are investments primarily related to the safety and reliability of our system, which represents approximately 40% of the company's annual capital investments in Arizona each year.
Justin: Given the circumstances of the inability of a staff witness to testify last November, we are appreciative of the parties and the Administrative Law Judge's decision to hold a separate hearing on the sim rather than to further postpone our entire case.
Justin: You'll see on the slide that the Commission staff has been supportive of our proposal on this mechanism and a final separate hearing on the SIM is scheduled for May.
Justin: Given the intent of the mechanism and mechanically how it is designed to work, we do not believe a May hearing will impact our desire to utilize the mechanism to reduce regulatory lag beginning in 2026.
Justin: if the mechanism is ultimately approved by the Commission. Consistent with the Arizona Corporation Commission's expressed desires to reduce regulatory lag, the Commission released a constructive policy statement that would allow utilities to file formula rate plans in future rate cases as an option to reduce regulatory lag.
Justin: I refer you to the Commission's statement that was issued last December for full details, but we believe this is another constructive, positive step that the Commission has taken to address timelier cost recovery, reduce regulatory burden, and enhance administrative efficiency in Arizona.
Turning to slide 11, as Karen noted.
Justin: Economic activity and demand for natural gas service remains strong throughout our service territory.
Justin: and we continue to invest in the communities in which we operate. I've highlighted for you on previous calls the activity in Arizona in the advanced manufacturing space, as well as the potential throughout our service territories for additional data center growth.
Justin: The growth in Arizona in these sectors has driven the Arizona Commission earlier this month to open a docket to address resource adequacy of natural gas infrastructure and storage in the state.
Justin: These, as well as continued growth in the entertainment, hospitality, manufacturing, warehouse and logistics, and mining sectors, continue to drive significant in-migration throughout our service territories.
Justin: The economic activity and development associated with these projects is expected to drive further upside to our already strong customer growth that Karen noted during our opening remarks today.
Justin: You'll see on slide 11 the population growth projections for Arizona and Nevada from S&P Global are expected to continue to outpace the national average over the next five years.
Justin: For Southwest Gas, we believe this economic development activity and resulting population growth will translate to more meter sets for residential and small commercial customers, which currently represents 85% of our existing customer mix.
Justin: We continue to see greater than 90% of all new construction built in our service territories becoming Southwest Gas customers.
Justin: With that growth comes the need for increased infrastructure investment in order to support both new and existing customers as we respond to requests for new gas service and work to ensure the safety and reliability of our entire system.
Justin: Based on our recently refreshed capital expenditures and rate-based growth models, we now expect to invest about $4.3 billion over the next five years to support safety, reliability, and economic development across our service territory.
of 6% to 8% from 2025 to 2029.
Justin: About 50% of this plan spending is needed for safety and reliability and approximately 30% of the projected plan relates to economic development and new business growth and With that I'll turn the call over to Rob who will review our financial performance for the year
Rob Stefani: Thanks, Justin. On slide 13, we provide a consolidated earnings walk on an adjusted basis.
Rob Stefani: During 2024, the utility benefited from rate relief and continued customer growth.
Rob Stefani: This improvement was partially offset by higher interest expense and lower other income, both of which are primarily related to changes in regulatory balances associated with the PGA mechanism.
Rob Stefani: as well as modest increases in O&M and depreciation and amortization, all of which are discussed in detail on the next slide.
Rob Stefani: Century's consolidated results were lower for 2024, as 2023 had benefited from higher offshore wind work and above-average natural gas bid work that did not recur in 2024.
Rob Stefani: 2024 also saw unforeseen reduction in the volume of work under MSAs in centuries natural gas business lines. Partially offsetting these decreases,
Rob Stefani: Century saw lower interest expense over the period due to IPO related debt reduction as well as the benefits from a securitization transaction during the second half of 2024
Rob Stefani: The holding company had lower overall operating expenses, partially offset by higher interest expense compared to 2023, primarily associated with higher variable interest rate impacts
Rob Stefani: Associated with the term loan and the amounts outstanding on the holding company revolving credit facility
Rob Stefani: In the appendix, we provide a reconciliation of adjustments by operating company. The vast majority of the 2024 adjustments relate to the amortization of intangible assets and receivable securitization-related costs at Century, and separation-related transaction adjustments
Rob Stefani: While in 2023, adjustments also include the impacts from the loss on the sale and previous integration of Mountain West, as well as consulting fees related to utility optimization.
Rob Stefani: Moving on to slide 14, you will see the year-over-year performance drivers for our utility, Southwest Gas Corporation.
Rob Stefani: In 2024, utility operating margin increased by $72.5 million compared to 2023. This improvement was driven primarily by $66 million of increased rate relief resulting from prior investments in Nevada and California.
Rob Stefani: In addition, we saw $12 million of improved margin as a result of customer growth throughout our service areas.
Rob Stefani: The remaining increase largely relates to the combined impacts of certain infrastructure and similar tracking mechanism surcharge components, which combined with the variable interest expense adjustment mechanism in Nevada resulted in $9 million higher operating margin this quarter.
Rob Stefani: These increases were partially offset by about $7 million of lower regulatory amortization of which a comparable decrease is reflected in amortization expense.
Rob Stefani: We also were impacted by about 11 million of out-of-period adjusting entries that relate to net cost of gas sold in prior years, the largest of which relates to a previously disclosed in 2023 $8 million benefit that did not recur in 2024.
Rob Stefani: O&M was relatively flat on a per-customer basis year over year. The modest net increase of $9.2 million, or roughly 2%, is less than inflation observed in the broader macroeconomic measures over the same period.
Rob Stefani: The overall increase in O&M primarily related to compensation components and leaked survey line locating activities.
Rob Stefani: These modest increases were partially offset by a reduction in external contractor and professional services costs, which primarily related to cost optimization consulting fees that occurred in 2023 and were adjusted out of net income in our presentation of earnings last year.
Rob Stefani: We remain confident that we will be able to achieve our goal of keeping O&M costs nearly flat on a per customer basis through the forecast period, though we expect these results could be non-linear.
noted earlier in the discussion of margin changes.
Rob Stefani: Other income decreased approximately $16 million, primarily driven by a $17.2 million decrease in interest income related to less carrying charges associated with lower regulatory account balances, notably the deferred purchase gas cost balances.
Rob Stefani: which flipped from a receivable balance from customers of nearly $550 million in December 2023 to a net liability balance of about $230 million at this year's end.
Rob Stefani: Interest expense at the utility increased by $12.4 million from 2023 primarily due to interest incurred on the overcollected balance of the PGA, as well as regulatory treatment timing related to the utility's industrial development revenue bonds and a lower level of debt related to AFUDC.
Rob Stefani: Partially offsetting these impacts was a decrease in interest related to the payoff of a $450 million term loan in April of 2023.
Rob Stefani: Moving on to slide 15, we provide our 2025 financing plan for both Southwest Gas Holdings and Southwest Gas Corporation.
Rob Stefani: which, for simplicity, assumes consolidation of Century for the entirety of the year. To the extent Century ceases to be consolidated in 2025, we plan to adjust this as needed depending on the timing and successful execution of further separation market events.
Rob Stefani: Southwest Gas Holdings finished 2024 with more than $360 million of cash on hand and more than $1 billion of liquidity on a consolidated basis following the full collection from utility customers of previously deferred natural gas costs, as well as centuries' paydown of debt using proceeds from the IPO.
Rob Stefani: We highlight that the holding company balance sheet could improve further if divestiture of century shares results in increased cash at Southwest Gas Holdings, which will depend on the form of separation and market conditions, among other things.
Rob Stefani: We expect cash flow from operations to more than fund the entire capital expenditure program forecasted in 2025.
Rob Stefani: In addition, based on the strength of our balance sheet and successful recent refinancing efforts, the only capital market's needs over the next 12 months, depending on remaining century separation execution form.
Rob Stefani: relate to less than $100 million of equity needs in 2025, which we would expect to be covered through the ATM.
Rob Stefani: We also expect a potential extension of a portion or all of the term loan facility at the holding company to beyond the July 31st maturity date. We also plan to amend and extend the holding company revolving credit facility sometime during 2025 ahead of its December 2026 maturity.
Rob Stefani: Of note, we do not currently foresee the need for any significant debt capital markets new issuance activity at the utility until the spring of 2026.
Rob Stefani: As Karen noted earlier, Southwest Gas Holdings remains committed to paying a competitive dividend to our stockholders.
Rob Stefani: We plan to pay the same dividend in 2025, which we expect would result in a competitive payout ratio.
Rob Stefani: We will continue to balance factors such as projected capital requirements, impacts to credit ratings, the competitiveness of the dividend yield, economic conditions, and other factors and will review the dividend policy for any changes post further separation execution and deconsolidation of century.
Rob Stefani: At Holdings, we reiterate our plan to target a solid investment-grade balance sheet.
Rob Stefani: Moving to slide 16, we take a look at our balance sheet strength and our commitment to maintaining an investment grade profile.
Rob Stefani: On the left-hand side, we walk through NetDebt by operating company.
Rob Stefani: We finished 2024 with more than $360 million of cash, largely due to the full collection of the previous deferred purchase gas costs from the winter of 2022 to 2023.
Rob Stefani: As a result, at the utility, the PGA balance has now flipped to a liability balance of about $230 million as of December 31, 2024. This is compared to the asset balance of nearly $550 million that I mentioned a moment ago in 2023.
Rob Stefani: In the appendix on slide 24, additional details are provided on the PGA balance. We continue to expect the large utility cash balance to significantly obviate the need to pursue additional financing in the near term. Back to you, Karen.
Karen Haller: Thanks Rob. Our 2024 results illustrate the progress we continue to make executing our strategy and we are committed to building on that momentum throughout 2025 and beyond.
Speaker Change: On slide 18, we show our utility guidance for 2025, along with our refreshed forward-looking guidance at the utility.
Speaker Change: We currently expect 2025 utility net income to be in the range of $265 to $275 million.
Speaker Change: We believe that our regulatory efforts and strong regional economic outlook in our service territories will drive 2025 results above that which we saw in 2024.
Speaker Change: When 2024 earnings are normalized for the benefits we received from higher-than-anticipated interest income from the impacts of elevated cash and
and G.A. Balances.
one-time costs.
Speaker Change: and Coley. Our forecasted earnings for 2025 result in an 8 to 9 percent growth rate above 2024. In addition, we expect significantly higher margin growth through regulatory proceedings as a result of the investments we've made for the benefit of our customers.
Speaker Change: to be partially offset by the impacts of costs from inflation, higher depreciation, and amortization expenses, higher expected interest expense related to variable rate bonds, and forecasted year-over-year tax impacts.
Speaker Change: Partially due to anticipated economic activity, we are expecting 2025 utility CapEx to be approximately $880 million, which would be a modest increase above 2024 CapEx.
Speaker Change: While we continue to expect that the regulatory cycle will result in non-linear net income growth over the forecast period,
Speaker Change: Our regulatory strategy and our plan to achieve a flat O&M per customer trend over the same period are expected to be important components of our growth story going forward.
Speaker Change: You can find additional long-term drivers in the appendix of our presentation on slide 26.
We have also provided our forward-looking CapEx spending plans.
Speaker Change: now showing a five-year forecast of about $4.3 billion from 2025 to 2029. We expect our rate base, compounded annual growth rate, to be in the range of 6 to 8 percent over that five-year period.
Speaker Change: Each of our forward-looking forecasts, compounded annual growth rates, are calculated off of a 2025 base year. As Rob mentioned, we will continue to pay the same dividend while we work to effectuate the further separation of century.
Speaker Change: Before we open the call up to questions, I want to point to slide 19 and emphasize that our teams are focused on executing our strategic priorities, delivering strong financial results, and providing exceptional service to our customers.
Speaker Change: At Southwest Gas Holdings, we are confident in our path forward as a premier pure-plain natural gas utility.
Speaker Change: We plan to continue delivering steady, organic rate-based growth through strong regional demand dynamics, as well as earnings growth through financial discipline, operational excellence, and constructive regulatory relationships.
Speaker Change: will continue to execute the next steps to fully separate Sentry to create a more attractive value proposition for stockholders.
With that, I'd like to open the call for questions.
Thank you.
Speaker Change: At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue by pressing star 2.
Speaker Change: Your first question comes from the line of Chris Ellinghaus from Seabert Williams, please go ahead
Chris Ellinghaus: Hey everybody, how are you? Good morning, Chris. Good morning. Karen, you talked about the nonlinear growth.
Speaker Change: With the formula rates perspectively in Arizona, do you see some convergence towards a more linear kind of relationship over time?
Speaker Change: I think when I speak to the nonlinear, certainly under our current regulatory structure, it's nonlinear. And I think if we're able to get more of a formula rate in place, absolutely, it would be more of a linear growth, I would expect.
Speaker Change: Is that what you meant, and, you know, the stock's somewhat depressed at the moment. Does that factor into your timing, thinking right now? You want to see how the new CEO does, I guess, would be the way to put it?
Speaker Change: Well, certainly, positively, since we last, we do have onboarded Chris Brown, and he has been with the company for just about three months now, and we think that is a real positive and one of the first steps.
Speaker Change: that was important towards moving towards our next steps on separation.
Speaker Change: But I would just indicate that we're watching and looking at all of the market conditions that would impact in assessing our different options on a go-forward basis. So I would not limit it to just a price.
Speaker Change: Okay, given that you're in an evaluation mode, does that suggest that the process could extend into next year?
Thank you.
and Bill Fehrman.
Speaker Change: We'll continue to watch the market conditions, as I've indicated before, we'll update you as soon as we have more that we can share with shareholders, but I will emphasize that we are very focused on moving forward with our separation.
OK.
Justin, you talked about gas adequacy.
Speaker Change: Do you have an opinion at this point? And, you know, given sort of prospectively the load growth in your region, you certainly can expect a lot of...
Speaker Change: new gas generation, so does that represent an upside in your view to sort of what your longer term capex looks like today?
Chris: Hey Chris. Yeah, I mean, I think it can. You know, a lot of times some of the generation...
Chris: cited closer to the interstate facilities, so less of us, but I think it's that continued migration, you know, of across our service territory through that economic development that trickles down into our core business. And I think just the general sentiment of
Chris: moving into a direction where a natural gas is a good thing for our economy. It's a clean-burning fuel. I think just that general sentiment is also helpful.
Does sort of your perspective on the growth...
Chris: and how it will affect residential and small commercial sort of factor into what the ACC is getting at also? Or are they more thinking about the large load customers?
I think it's an all of the above, Chris.
Chris: I think it's just the need for affordable, reliable, sustainable energy and fueling natural gas is a key component of that across the board.
Okay, thank you.
Thank you.
Speaker Change: As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. Your next question comes from the line of Stephen D'Ambrisi from Lattenberg. Please go ahead.
Hi, thanks very much for taking my question.
Speaker Change: Good morning. I just had two quick ones. The first one is just does the updated utility net income CAGR assume any impact from the pending SIM mechanism or you know a future filing?
Speaker Change: like subsequent GRC filing under the ACC formula rate policy statement.
I'm glad you're here.
Speaker Change: The range doesn't include the formula and we don't have the SIM tracker in that range as well.
Speaker Change: Okay, I guess the follow-up there would be just, I understand, Sam, like that's obviously still outstanding, but on the formula rate, is that just, are you looking to see
Speaker Change: You know, I guess how do you how do you see that moving forward? Are you looking for one of the electrics to file under the plan or is that going to be tested somehow? Or will there be a rule making or what's what's the next steps there to get you comfortable with that structure?
Speaker Change: Hey Steven, it's Justin. Yeah I mean I think we're comfortable now it's just a timing issue right we're we're in the last inning of our rate case and so that's something we would look to as part of our next case. I know UNS Gas
who just filed the end-of-the-year, last-year amended.
Speaker Change: I think a rate case later this year, I believe, so I'm sure they would include a proposal. So I think it's just a timing thing from our perspective.
Speaker Change: kind of given where we were in flight with our pending case and kind of the timing of when that policy statement came out. But I think directionally, it's...
Speaker Change: very positive and obviously we'll be monitoring those dockets to see if there's anything we can learn for how this is
Speaker Change: actually implemented on a go-forward, so that when we get to the point of our next case and an opportunity to include a proposal, we'll have the benefit of kind of seeing how this is shaking out over time.
Speaker Change: from the highest level that would kind of imply that earned ROEs are flat across the projection period. And I know you've talked about focus on improving earned ROEs. So, like, am I right to think that, you know, to the extent some of these mechanisms kind of move forward or you see
Speaker Change: a future filing under a formula rate plan, we should see, that would be a driver of earned ROE improvement in the future.
Speaker Change: Yeah, I mean, I think obviously if we get a tracker, you know, and take it step-by-step, if we take it, get a tracker in Arizona in the near term.
Speaker Change: You know, it would start to take effect beginning in 2026, just given the timing of the tracker mechanic. But, yes, as...
Speaker Change: as we receive regulatory outcomes that are favorable, whether it be a track or a formula, we'd expect the ROE to improve.
and move, you know, move more toward, you know,
Speaker Change: a higher ROE and higher implied growth rate. Was there a second part to your question? No, that was it. Thank you. I appreciate it. Thanks very much for the time. That was all I had.
and Bill Fehrman. Thank you.
Speaker Change: This concludes the question and answer portion of today's conference. I would now like to turn the call back over to Justin Forsberg for closing remarks.
I'm
Justin Forsberg: Thanks everybody for joining the call today and for your interest in Southwest Gas. We look forward to seeing many of you soon.
Thank you.
Justin Forsberg: This concludes today's Southwest Gas Holdings 4th Quarter and Full Year 2024 Earnings Call and Webcast. You may disconnect your line at this time. Have a wonderful day.