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Analysis of Unaudited Pro Forma Condensed Consolidated Financial Statements of Southwest Gas Holdings, Inc.

Southwest Gas Holdings, Inc. (SWX) | April 22, 2024

By Oscar Wright

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Southwest Gas Holdings, Inc. released unaudited pro forma condensed consolidated financial statements following the completion of Centuri Holdings, Inc.'s initial public offering.

The company sold a significant portion of its interests in Centuri through secondary public offerings and private placements.

As a result of the Transactions, Southwest Gas Holdings, Inc. no longer has a controlling financial interest in Centuri.

Ownership Transition

The company owned approximately 81% of Centuri Common Stock before the Transactions, now owning around 30.9% after selling a significant portion.

Deconsolidation

The unaudited pro forma condensed consolidated financial statements reflect the deconsolidation of Centuri's financial statements from Southwest Gas Holdings, Inc.'s consolidated financial statements.

Financial Impact

The financial statements are based on reasonable assumptions and estimates, providing insight into how the Transactions and Deconsolidation affect the company's financial position.

  • The Transactions and Deconsolidation mark a significant shift in Southwest Gas Holdings, Inc.'s financial structure and strategic focus.
  • The company's decision to dispose of its ownership in Centuri indicates a strategic repositioning of assets and priorities.

The release of the unaudited pro forma condensed consolidated financial statements sheds light on Southwest Gas Holdings, Inc.'s post-Transaction financial position and strategic direction, emphasizing a shift in ownership and financial control.