Southwest Gas Holdings, Inc.SWX
Southwest Gas Holdings, Inc. Debt Disclosure
Note 9 - Debt
Long-Term Debt
Long-term debt is recognized in the Company’s and Southwest Gas’ Consolidated Balance Sheets generally at the carrying value of the obligations outstanding. Details surrounding the fair value and individual carrying values of instruments are provided in the table that follows.
| December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| (Thousands of dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
Southwest Gas Holdings, Inc. and Southwest Gas Corporation: | ||||||||||||||||||||||||||
| Debentures: | ||||||||||||||||||||||||||
8% Series, due 2026 | $ | 75,000 | $ | 76,388 | $ | 75,000 | $ | 77,898 | ||||||||||||||||||
Medium-term notes, 7.92% series, due 2027 | 25,000 | 26,058 | 25,000 | 26,285 | ||||||||||||||||||||||
Medium-term notes, 6.76% series, due 2027 | 7,500 | 7,726 | 7,500 | 7,701 | ||||||||||||||||||||||
Notes, 5.8%, due 2027 | 300,000 | 309,090 | 300,000 | 306,450 | ||||||||||||||||||||||
Notes, 3.7%, due 2028 | 300,000 | 297,450 | 300,000 | 287,460 | ||||||||||||||||||||||
Notes, 5.45%, due 2028 | 300,000 | 307,620 | 300,000 | 302,970 | ||||||||||||||||||||||
Notes, 2.2%, due 2030 | 450,000 | 409,365 | 450,000 | 385,425 | ||||||||||||||||||||||
Notes, 4.05%, due 2032 | 600,000 | 579,540 | 600,000 | 558,120 | ||||||||||||||||||||||
Notes, 6.1%, due 2041 | 125,000 | 130,762 | 125,000 | 127,900 | ||||||||||||||||||||||
Notes, 4.875%, due 2043 | 250,000 | 219,350 | 250,000 | 210,700 | ||||||||||||||||||||||
Notes, 3.8%, due 2046 | 300,000 | 228,180 | 300,000 | 219,390 | ||||||||||||||||||||||
Notes, 4.15%, due 2049 | 300,000 | 237,120 | 300,000 | 223,470 | ||||||||||||||||||||||
Notes, 3.18%, due 2051 | 300,000 | 205,710 | 300,000 | 187,680 | ||||||||||||||||||||||
| Unamortized discount and debt issuance costs | (23,207) | (26,477) | ||||||||||||||||||||||||
| 3,309,293 | 3,306,023 | |||||||||||||||||||||||||
| Industrial development revenue 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 | (1,281) | (1,546) | ||||||||||||||||||||||||
| 198,719 | 198,454 | |||||||||||||||||||||||||
| Less: current maturities | 75,000 | — | ||||||||||||||||||||||||
Southwest Gas Holdings, Inc. and Southwest Gas Corporation total long-term debt, less current maturities | $ | 3,433,012 | $ | 3,504,477 | ||||||||||||||||||||||
The fair values of the Company’s revolving credit facilities and IDRBs are estimated using observable market inputs, including current interest rates and are therefore classified as Level 2 in the hierarchy. The fair values of Southwest Gas’ debentures (which include senior and medium-term notes) were determined utilizing a market-based valuation approach, where fair values are determined based on observable trading data and as such are categorized as Level 2 in the hierarchy.
Southwest Gas has a $400.0 million credit facility scheduled to expire in August 2029. Southwest Gas designates $150.0 million of associated capacity as long-term debt and the remaining $250.0 million for working capital purposes. In June 2025, Southwest Gas amended this revolving credit agreement, which, among other things, added a swingline loan sub-facility in an aggregate principal amount at any time outstanding not to exceed $30.0 million and added a one-week interest period option with an interest rate equal to Daily Simple SOFR plus 0.03839% plus the applicable margin. At December 31, 2025, the applicable margin was 1.125% for loans bearing interest with reference to SOFR and 0.125% for loans bearing interest with reference to the alternative base rate. Southwest Gas is also required to pay a commitment fee on the unfunded portion of the commitments which ranges from 0.075% to 0.200%. At December 31, 2025, no borrowings were outstanding on the long-term portion (including under the commercial paper program discussed below) nor under the short-term portion of the facility.
Southwest Gas has a $50.0 million commercial paper program. Issuances under the commercial paper program are supported by Southwest Gas’ current revolving credit facility and therefore do not represent additional borrowing capacity. Borrowings under the commercial paper program, if any, are designated as long-term debt. Interest rates for the program are calculated at the then current commercial paper rate. At December 31, 2025, no borrowings were outstanding under the commercial paper program.
The effective interest rates on Southwest Gas’ variable-rate IDRBs are included in the table below:
| December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| 2003 Series A | 3.50 | % | 4.86 | % | ||||||||||
| 2008 Series A | 3.84 | % | 4.89 | % | ||||||||||
| 2009 Series A | 3.75 | % | 4.73 | % | ||||||||||
| Tax-exempt Series A | 3.10 | % | 4.29 | % | ||||||||||
In Nevada, interest fluctuations due to changing interest rates on Southwest Gas’ 2003 Series A, 2008 Series A, and 2009 Series A variable-rate IDRBs are tracked and recovered from customers through a variable interest expense recovery mechanism.
None of Southwest Gas’ debt instruments have credit triggers or other clauses that result in default if bond ratings are lowered by rating agencies. Interest and fees on certain debt instruments are subject to adjustment depending on Southwest Gas’ bond ratings. Certain debt instruments are subject to a leverage ratio cap, and the 6.1% Notes due 2041 are also subject to a minimum net worth requirement. At December 31, 2025, Southwest Gas was in compliance with all of its covenants. Under the most restrictive of the financial covenants, approximately $4.7 billion in additional debt could be issued while still meeting the leverage ratio requirement. Relating to the minimum net worth requirement, as of December 31, 2025, there is approximately $3.0 billion of cushion in equity. No specific dividend restrictions exist under the collective covenants. None of the debt instruments contain material adverse change clauses.
Estimated maturities of long-term debt and the current portion of long-term debt for the next five years are:
| (Thousands of dollars) | 2026 | 2027 | 2028 | 2029 | 2030 | ||||||||||||||||||||||||||||||
Southwest Gas Holdings, Inc. and Southwest Gas Corporation: | |||||||||||||||||||||||||||||||||||
| Debentures | $ | 75,000 | $ | 332,500 | $ | 650,000 | $ | — | $ | 450,000 | |||||||||||||||||||||||||
| Total | $ | 75,000 | $ | 332,500 | $ | 650,000 | $ | — | $ | 450,000 | |||||||||||||||||||||||||
Short-Term Debt
In June 2025, Southwest Gas Holdings entered into a new $300.0 million revolving credit agreement that matures in August 2029 and replaced Southwest Gas Holdings’ existing $300.0 million credit facility that was set to expire in December 2026. At December 31, 2025, the applicable margin is 1.125% for loans bearing interest with reference to SOFR and 0.125% for loans bearing interest with reference to the alternative base rate. Southwest Gas Holdings has a one-week interest period option with an interest rate equal to Daily Simple SOFR plus 0.03839% plus the applicable margin. Southwest Gas Holdings is also required to pay a commitment fee on the unfunded portion of the commitments which ranges from 0.075% to 0.200%. The revolving credit agreement also contains a swingline loan sub-facility in an aggregate principal amount at any time outstanding not to exceed $30.0 million. At December 31, 2025, there were no borrowing outstanding under this credit facility.
Southwest Gas Holdings has a $550.0 million term loan that had been set to mature in June 2026. Prior to the execution of the amendment, Southwest Holdings prepaid a portion of the indebtedness, decreasing the balance from $550.0 million to $225.0 million, utilizing proceeds received from the Centuri separation transactions. In August 2025, Southwest Gas Holdings paid the remaining balance of $225.0 million utilizing proceeds received from additional Centuri separation transactions. See Note 13 - Dispositions.
As indicated above in the Long-Term debt table, the 8% Series debenture for $75.0 million matures in August 2026.
The weighted average effective interest rate of all short-term borrowings is 9.23% at December 31, 2025. There were no short-term borrowings at December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.