Southwest Gas Q3 2023 Earnings Call Transcript

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November 8, 2023

There are 12 speakers on the call.

Operator

Welcome to Southwest Gas Holdings Third Quarter 2023 Earnings Conference Call. Today's call is being recorded and our web cast is live. A replay will be available later today for the next 12 months on the Southwest Gas Holdings website. Session. I will now turn the call over to Justin Forsberg, Vice President of Investor Relations of Southwest Gas Holdings.

Speaker 1

Thank you, MJ, and hello, everyone. We appreciate you joining conference call. This morning, we issued and posted to Southwest Gas Holdings website our Q3 2023 earnings release and the associated Form 10 Q. 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.

Speaker 1

Please note that on today's call, we will address certain factors that may impact this year's earnings and provide some longer term guidance. Some of the information that will be discussed today contains forward looking statements. These statements are based on management's assumptions on what the future holds, conference call, but are subject to several risks and uncertainties, including uncertainties surrounding the impacts of future economic conditions and regulatory approvals. This cautionary note as well as a note regarding non GAAP measures is included on Slides 23 of this presentation. Today's press release and our filings with the Securities and Exchange Commission, which we encourage you to review.

Speaker 1

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. As shown on Slide 4, on today's call, we have Karen Holler, President and CEO of Southwest Gas Holdings Rob Stefani, Chief Financial Officer of Southwest Gas Holdings Justin Brown, President of Southwest Gas Corporation and Paul Daley, President and CEO of Century Group, along with other members of the management team available to answer your questions during the Q and A portion of the call today. I'll now turn the call over to Karen.

Speaker 2

Thanks, Justin. Thank you for joining us today to discuss Southwest Gas Holdings' 3rd quarter results. Turning to slide 5. We are happy with our progress on our transformational strategy of returning Southwest Gas to its core foundation as a premier Fully regulated natural gas utility. We achieved significant milestones this quarter building on our progress in the first half of the year, services leader.

Speaker 2

Notably, we made progress on the regulatory strategy at the utility during the quarter and delivered improved 3rd quarter results. Customer growth and demand remain strong and the Southwest Gas team is acutely focused on safely addressing the needs of our customers, is being recorded and our webcast is being recorded and our website is being recorded and delivering value for our shareholders. We are strategically deploying capital while also working constructively with our regulators and legislators to complement our strong organic rate base growth. We are confident in our momentum. We remain on track to deliver 5% to 7% CAGR in rate based Additionally, Centuri has continued to see improved margins during the 1st 9 months of the year as they execute on their core utility services and overcome much of the previous cost and supply chain headwinds that have been faced during 2022.

Speaker 2

Turning to slide 6. I'll touch on a couple of important points related to our strategic priorities. TV on September 22 to facilitate a potential IPO. The ultimate timing of the separation will be affected by the form of transaction structure. As you can appreciate, we are in a quiet period with respect to a potential IPO, If we execute an IPO, Southwest Gas Holdings may ultimately separate the business through a series of sell down, is being recorded with an IPO.

Speaker 2

As we disclosed in our press release from November 6, we announced that our forward adopted a tax free spin protection plan to help preserve the company's ability to effectuate a tax free spin. Service company. We remain committed to separating Centuri and we believe we have taken the appropriate steps and actions that will benefit all shareholders. We announced in that same press release that the IRS has decided to exercise its discretion not to rule on certain tax questions relating to the proposed Century separation based on the fact and nature of the questions presented. Again, we are committed to separating SENTRI and continue to assess the value of a potential tax free spin off of SENTRI, As you can see on Slide 7, we are making excellent progress on our 2023 strategic priorities, We filed our Nevada rate case mid September with the expectation of a resulting rate increase in April 2024.

Speaker 2

And as previously announced, we received ACC approval of the PGA surcharge in Arizona and remain on track with our expected and prioritizing our identified initiatives, as I will cover in more detail in a moment. We are very pleased with our continued progress and our strategic plan is on track. On Slide 8, we highlight our strong Q3 performance at Southwest We experienced another quarter of strong customer growth, adding more than 41,000 new meter sets over the last 12 months, continuing to make additional investments to ensure our system remains safe and reliable for the benefit of our customers. We also benefited from several constructive regulatory outcomes that have occurred during the year. At Centuri, we announced record setting 3rd quarter revenue This strong Q3 performance was driven by an increase in electric infrastructure services revenues and sustainable energy projects.

Speaker 2

As Paul will discuss, Sentry continues to win new business based on the strength of its relationships and capabilities and is well positioned to play a critical role in the continuing energy transition. Turning to slide 9, we are laser focused on evaluating and prioritizing a cross functional collection of and have provided productive feedback to help us to prioritize our optimization efforts. Our leadership team is developing specific initiatives identifying cost savings and efficiency opportunities for us to execute over the next couple of years. Further, these initiatives will help support the tremendous growth we have across our service territory help pass on realized savings to our customers, improve ROEs, and positive returns for our stockholders. We are excited to share our expected returns and provide you our plans in the near future.

Speaker 2

What I can say now is we are well positioned to begin execution of our plans in 2024 to drive long term positive change across the organization. Will review our financial performance for the quarter.

Speaker 3

Thanks, Karen. On Slide 11, we outline our earnings per share performance for the Q3. The utility recorded its lowest seasonal third quarter net loss on record. The business is seasonal and the springsummer months are the low points. Century recorded its highest ever 3rd quarter revenue and EBITDA on record.

Speaker 3

On an adjusted basis, Southwest Gas callings finished the Q3 of 2023 with EPS of $0.10 a $0.15 per share improvement when compared to the same period of the year prior, segments by operating company. The vast majority of the second quarter adjustments relate to Centuri separation costs and consulting fees related to utility optimization. Now I'll provide a walk through on the performance of each operating company. Moving on to Slide 12, you will see the year over year performance drivers for our utility, Southwest Gas call is being recorded. In the Q3 of 2023, utility operating margin increased by approximately $21,000,000 compared to the same time last year.

Speaker 3

This improvement was driven primarily by the increased recovery on prior investments in our Arizona utility infrastructure and other associated regulatory account balances as well as continued customer growth throughout our service areas. Items offsetting these increases include comparably lower Arizona vintage steel pipe and customer owned yard line revenue, miscellaneous revenue The approximate $5,000,000 increase in depreciation and amortization between quarters was primarily due to the corresponding six presentation is being recorded and our webcast. Other income increased $13,000,000 compared with last year. Systems. This higher interest income earned on the elevated PGA balances offsets the $10,000,000 of higher third quarter interest expense at Southwest Gas Holdings.

Speaker 3

In addition, favorable quarter over quarter changes in non service related components of employee post retirement benefits benefit other income. Interest expense increased by approximately $6,000,000 from the prior year, primarily due to interest associated with senior notes issued support gas purchases, which was repaid in March of 2023. Overall, this was significantly improved quarter for the utility. Moving on to Centuri's results this past quarter. Slide 13 reviews the drivers behind Centuri's 3rd quarter GAAP net income results.

Speaker 3

Century's 3rd quarter revenues increased by approximately $16,000,000 compared with the prior year. This increase was driven by an increase in core electric infrastructure services work and progress on offshore wind projects. Centuri's revenues were partially offset by corresponding increases in operating expenses driven by the higher volume and infrastructure services provided to customers, higher incentive compensation and increased subcontractor call is being recorded and our webcast will be recorded on offshore wind projects. Additionally, Centuri saw increased interest expense primarily due to higher interest rates on Overall, we continue to be encouraged by improved EBITDA margins at Centuri over the 1st 9 months of this year as Paul will touch on later. On slide 14, we again highlight our 2023 financing plan for Southwest Gas Holdings and Southwest Gas Corporation, which has been completed.

Speaker 3

Because of our strength in balance sheets and successful regulatory and financing efforts earlier this year, we continue to not anticipate meaningful additional near term equity needs. Through 2025, we expect that any potential equity needs can be addressed under our ATM program. At Holdings, we reiterate that we plan to target a solid investment grade balance sheet. It's important to note that in addition to our limited equity needs, We have very limited refinancing needs at the utility through the end of 2026 outside of our $550,000,000 Southwest Holdings term loan. Moving to Slide 15, we take a look at our balance sheet strength and our commitment to investment grade profile.

Speaker 3

Website will continue to reduce the time to recovery of the remaining balance in that jurisdiction. On the right hand side of Slide 15, we note that we had no changes to our credit ratings or outlook from the 3 rating agencies with the exception of the downgrade by Fitch at Southwest Gas Corporation's long term issuer rating to BBB plus from A- in which they also removed the negative watch, reflecting leverage at the utility in excess of Fitchitt's downgrade threshold throughout the forecast period. The updated rating did not come as a surprise to us as it was aligned with the rating at Moody's. I'll now turn the call over to Justin Brown on Slide 17 to discuss the utility.

Speaker 4

Thanks, Rob. New customer growth and pipeline replacement activities associated with our safety and integrity management programs are the cornerstones of our 2,000,000,000 3 year capital expenditure program. The investments we've made to ensure safe and reliable energy service to our customers has translated to double digit rate base growth since 2017. With our current capital investment plan, we expect to continue service areas as we added more than 41,000 first time meter sets during the past 12 months with approximately 34,000 year to date. We expect to continue to benefit from a strong demographic and economic growth in the Southwest part of the United States as Phoenix and Las Vegas continues to be among the top destinations for relocation.

Speaker 4

S and P Global projects population growth in Arizona and Nevada to be nearly 4% over the next I'm sorry, core and new business sectors. We've likely seen the excitement that the new entertainment venue, The Sphere Las Vegas as well as the upcoming Formula 1 Las Vegas Grand Prix event are causing in Las Vegas. Not to mention the city will also be playing host to Super Bowl 58 in early 2024. Also earlier this year, the Oakland A's announced their plans to relocate and build a new stadium in Las Vegas that is projected to open in 2028. These and other expansions continue to strengthen the core of the Las Vegas sports, entertainment and hospitality industries and drive job growth in the area.

Speaker 4

In Arizona, particularly in Phoenix, jobs are back to pre pandemic trends and according to the Arizona Commerce Authority, expansions are occurring throughout the state. We are proud to partner with several of these large new customers, including TSMC and other semiconductor manufacturers that continue to make significant investments in Arizona. Webcast are being recorded and our webcast are being recorded. We're committed to working collaboratively with our regulators and our customers webcast are continuing these dialogues and working with all stakeholders to develop mutually acceptable outcomes to support the timely recovery of the investments that we make to ensure provide an overview of our Nevada rate case filing, which was filed in September. Our nearly $70,000,000 request is primarily driven by the need to update rates to reflect the recent impact inflation has had on our cost to provide safe and reliable service.

Speaker 4

2 of the largest components of the case are comprised of $27,000,000 for changes in O and M since our last case $20,000,000 for changes in the cost of capital to fund our infrastructure investments. We also need to start recovering the more than $250,000,000 of capital investments we've made in Nevada Webcast and the Company's Safety Division expressed the desire to move towards an annual leak survey and we work collaboratively on developing an approach to accomplish is subject to the ability to track and recover the incremental costs, so we could help enhance safety and reduce fugitive emissions across the state. We're proposing to recover this $4,000,000 over a 2 year period. We are confident in our request and we believe we've made prudent investments in the system in response We anticipate a 210 day procedural schedule for the case. We're currently scheduled to receive testimony from the intervenors on February 2nd and the hearing begins February 26th with new rates expected to be in place in April.

Speaker 4

We're also well underway in preparing for several other upcoming rate case filings. We anticipate early 2024 rate case filings for both Arizona website will be posted on the call to

Speaker 3

our website.

Speaker 4

You also see on this slide, we've highlighted a metric we're proud of. To ensure we're delivering affordable service to our customers, while maintaining a safe and reliable system. I'll now turn the call over to Paul Daley, President and CEO of Century Group for an update on the Infrastructure Services business. Thanks, Justin.

Speaker 5

Turning to Slide 19, I'm very proud of the performance conference delivered by the Century team in the quarter. With more than 12,000 employees in 43 states and provinces call is operating at 82 locations across the United States and Canada. Sentry has a broad geographic reach and works with the most of the largest Blue Chip Investor Owned Utilities and their 100 plus 1000000 customers across the U. S. And Canada.

Speaker 5

These strengths mean Sentry is well positioned to be a stand alone strategic utility infrastructure services leader with the scale and capabilities to meet the evolving needs of utilities and utility holding companies. As Karen mentioned, we filed a draft S-one with the SEC on September 22nd Importantly, as we work towards our pending separation, we have the resources, capabilities and business structure to continue to deliver on our growth opportunities. On Slide 20, we detail Century's proven track record of strong financial performance. As Karen and Rob both mentioned, Sentry had record setting 3rd quarter revenue and EBITDA driven by strong continued execution Adjusted EBITDA of $299,000,000 representing $82,000,000 year over year growth in LTM adjusted EBITDA. While certain of our costs remain at or above the elevated levels experienced during 2022, As we noted during previous earnings calls, we took proactive measures to negotiate more than $24,000,000 of annualized incremental revenue services.

Speaker 5

We are continuing to deliver growth across our operations, both through expanding our core electric and gas operations, while realizing more utility focused work in support of system modernization and energy transition. We have performed a limited amount of offshore wind work in the last 2 years, which accounts for approximately 7% of our revenues. We recently completed component assembly for the South Fork Wind project and we have 3 other projects in backlog: Ocean Wind 1, Sunrise Wind and Revolution Wind. Last week, our client announced the cancellation of Ocean Wind 1, Until a path is determined. As you can see on the right hand side, we have remained committed to our core portfolio of small scale recurring work tied to long standing utility customer MSAs, and we continue to diversify our portfolio shows the full year of revenues.

Speaker 5

With that, I'll turn it back to Karen.

Speaker 2

Thanks, Paul. Our year to date results results within these updated and reaffirmed guidance ranges. Additionally, we are again making an upward revision to 2023 utility CapEx guidance now $720,000,000 to $740,000,000 is towards the higher end of the range, where the final adjusted EBITDA margin at Century ends up will depend on the mix of work and the level of storm activity for the remainder of the year, but we feel heartened that we continue to see improved margins over the last 12 months at our Utility Services business. A brief note on the long term guidance at SENTRI. Due to pending S-one restrictions related to providing forward looking guidance, We have removed for now our long term guidance at Century.

Speaker 2

Before we open the call up to Q and A, I want to point to Slide 23 and emphasize that our teams are focused on executing our strategic priorities, delivering strong financial results and providing exceptional service to our customers. At Southwest Gas Holdings, we are confident in our path forward as a premier pure play natural as well as earnings growth through financial discipline, operational excellence and constructive regulatory relationships. Platform is being recorded. With that, I'd like to open the call for questions.

Operator

Webcast. We'll take our first question from Richard Sunderland with J. P. Morgan. Please go ahead.

Speaker 6

Hi, good morning. Can you hear me?

Speaker 2

Yes. Good morning, Mitch.

Speaker 6

Great. Thank you. Appreciate that you can't speak to the IPO, but are you able to outline when the market should expect

Speaker 3

Hey, Rich. It's Rob Stefani. So as you highlighted, we are no longer waiting on the private letter ruling given the IRS's decision not to call. We continue to monitor the markets and any decision on timing will be subject to, among other things, Board approval of the form of the transaction as well as any type of regulatory approval of I think to the extent that We proceed on a path to do something like a straight spend than the prior guidance that we highlighted would remain intact.

Speaker 6

Understood. And when you're saying prior guidance, you're saying 1Q 2024?

Speaker 3

That's correct.

Speaker 6

Great. Very helpful. Turning to the Century side with this offshore wind update, Can you speak more to the potential 2023, 2024 impacts, particularly given Century's overall revenue guidance was reiterated with that And language as well. And then what is the backlog impact overall of these cancellations?

Speaker 2

Rich, I'm going to turn the question your question over to Chad Van Sweeten, our CFO at Century to respond to that.

Speaker 7

Yes, Rich. We have not received a formal cancellation from Our customer on Ocean Wind 1, as of yet, we do expect that, that will likely be forthcoming. Our offshore wind revenue is a relatively modest part of our overall revenue, representing less than 7%. Is expected to be approximately $200,000,000 That's down from approximately $220,000,000 previously, reflecting a reduction as a result

Speaker 6

Just sticking with the Century side, could you speak to the trends on the gas infrastructure revenues in terms of The downward trajectory in 3Q and the overall outlook in the 2024, any color on MSA work overall would be helpful.

Speaker 7

Sure. So we had record revenues in Canada in 2022. Those have normalized this year, which is Really the decline that you're seeing in the numbers. Overall, the business continues to sort of track the market and grow. We just had an extraordinary year in 2022 in Canada where our revenues in Canadian dollars were up call is almost $100,000,000 So they've normalized a bit this year, masking the growth in the overall sort of gas business, which continues to track the growth in the market.

Speaker 6

Great. Very helpful. I'll pass it along. Thank you for the time today.

Speaker 3

Thanks.

Operator

Thank you. The next question is from Chris Ellinghaus with Siebert William Schenck. Please go ahead.

Speaker 8

Hey, everybody. Maybe for Justin or Karen, the better than expected customer growth and the increase in the CapEx, Is this something that you expect to continue on trend? And does this change your Any expected rate based growth at all?

Speaker 4

Hey, Chris, it's Justin. Yes. I mean, I think it's more just reflective of this last year. We'll look at guidance in February for the future. Right now, we're kind of just focused on this year and it's from where we started in the year, it's better this year than what we had originally anticipated.

Speaker 8

Okay.

Speaker 9

And Rob,

Speaker 8

Given your guidance and the really phenomenal quarter and the Q3 for the LDC sort of suggests A lower Q4 year over year. Can you talk about what might be some of the headwinds there?

Speaker 3

Yes. I think Chris, as you know, within our guidance, we have a COLI forecast of $3,000,000 to $5,000,000 Obviously, that's always Less predictable, as well as there are several timing related items that we would expect to come through. And so we've updated guidance. We're confident in that new guidance range, but continue to monitor COLI performance and whatnot.

Speaker 6

Okay. Go ahead.

Speaker 5

All right. Thank you.

Operator

Thank you. The next question is from Ryan Levine with Citi. Please go ahead.

Speaker 10

Good morning. I would just clarify a couple of things on offshore wind. To the extent, I think you highlighted Less than 7% from a top line standpoint. Is there any color you could share around the margin profile of those projects relative to the Rest of the Century business? And to the extent that Sunrise or something else were to be canceled, is there a certain cost that

Speaker 7

Our offshore wind revenue, the margins are roughly in line with the margins we see on our electric segment. So there's nothing particularly extraordinary about those margins. There isn't a lot of overhead that goes along with That offshore wind work and it's generally we're building units or components. So whether we do 10 or 100, It doesn't significantly change the margins that much. There are some wind down costs If we mobilize a project and then have to demobilize on a project, but we do have the ability to seek recovery of those costs from our customer.

Speaker 7

Our overhead is relatively modest in the sense that all this work is performed by union labor. So If a project does not continue forward, we send the labor back to the hall. We do not own or rent any facilities. Those are provided to us by the customer, and we generally don't have much equipment costs for this type of work. So relatively modest overhead costs, Whatever costs we do incur to demote, we are able to recover those from our customer.

Speaker 10

Okay. And then a financing question. In terms of the PGA proceeds expected to come to The holding company in the next or the company within the next few months. What's the use of that cash?

Speaker 3

Yes. So that the cash is obviously will be redeployed back into the utility in large part. I think That return of the cash and obviously a lot depends on where commodity costs end up in the 4th quarter. But we continue to anticipate that as the PGA unwinds that will help limit our financing costs at the utility, which is reflected in the fact that we're putting out there that we have very limited equity needs through 2025 to the return of that PGA and then we have very limited debt financing through to 2026.

Speaker 10

Okay. And then last question for me. In terms of the potential separation timeline In your slide deck, you have a check mark or box to be checked around Q1 'twenty four. Are you reaffirming that date? Or is that much more uncertain given the potential path that the company could go down?

Speaker 3

Yes, Ryan. The way I think we can answer that is obviously the form of transaction will to a certain extent dictate timing. So To the extent that the timing of an IPO occurs, then we would be subject to lockup periods, which So any transaction following an IPO would be subject to potential restrictions is under lockups. To the extent that we proceed with a different form of transaction, which we continue to evaluate alternatives like a tax

Operator

Thank you. The next question is from Tanner James with Bank of America. Please go ahead.

Speaker 9

Hey, good morning, everyone. It's Julian Will Smith here on for Tanner. Thank you guys very much. Appreciate it. Just coming back to Kind of higher level comments on the balance sheet here.

Speaker 9

You commented in the remarks on your metrics and sustaining them Through, I think you said 25 just with the ATM. What does it position you on an FFO to debt basis through the forecast period here. If we could be a little bit more granular and specific, and then if you can update us in tandem on your financing plan As it pertains to the spin out and just how you think about that impacting the consolidated FFO to debt metrics on a pro form a basis?

Speaker 3

Yes, Julien. I think clearly the form of the transaction again will, to a large extent, Dictate the FFO to debt type metrics. Certainly, at the utility, which We have remained strong. We expect FFO to debt above the S and P, FFO to debt target metrics for our credit rating. Yes, I think at the holding company level, as you can imagine, If we were to consider a transaction alternative like an IPO with sell down, that has different leverage impacts spend and IPO with followed by a tax free or other spin.

Speaker 3

And so I think for now kind of as far as pro form a leverage metrics at the holding company will have to defer commenting on that until the form of the transaction is decided.

Speaker 9

Got it. But just to clarify here, like I think you guys have talked about this 14% FFO to debt through 25% or by 25% before. I mean, can you elaborate just where you stand kind of status quo? I mean, is there any way to kind of frame the puts and takes around potentially Raising proceeds, whatever you can do. I know it's complicated.

Speaker 3

Yes. The guidance on the FFO Again, like as we look at those metrics at the holding company level, it depends we plan to separate And so the timing and the Century separation will obviously impact Credit metrics and especially the form. And so as far as If it's status quo and you were running forward with Centuri continuing to be in our Financials, then we do recover, obviously Centuri's recovered, their EBITDA has recovered. The utility continues to have success on rate case outcomes and with customer growth. And so our credit metrics continue to improve through that 2024, 2025 period.

Speaker 9

Got it. Excellent. And then just sorry, just pivoting back to the Centuri side real quickly. Obviously, a lot of comments here on offshore here, but Separately, even independent of offshore, just can you comment a little bit on what's going on the core business ex OSW And what's driving some of the declines there? And how are you seeing that outlook here?

Speaker 9

I know that you can't comment too much on forward looking guidance at this point, but Any commentary around on the ex offshore business and prospects would be appreciated here just given Previous comments here about forward looking.

Speaker 3

I mean, I don't think we've We commented only in the slide deck about projects in the backlog and the total in the backlog and what we've provided here today as far as Revenues realized against that backlog, but I don't think we've provided other guidance there.

Speaker 7

Just for

Speaker 9

Maybe to make this a little bit more possible to answer, just it seems like there was it was like down year over year ex offshore wind. Maybe you could speak to what drove that for instance and how you think about that fitting into the plan?

Speaker 7

Yes. We talked a little bit about that the gas business was down a small amount and That was driven by an extraordinary year in Canada, which is we're seeing a more normalized year in Canada this year. So The decline in Canada is masking the growth in the overall business on the gas side. The electric business is growing. And so I guess I'm having a little bit of hard time tracking Your comments around the business decline.

Speaker 9

No, got it. Yes, it's clearly the gas piece there. Thank you very much guys. I appreciate it. I know it's difficult to comment too much in this point.

Speaker 9

Best of luck. Speak to you guys soon.

Speaker 3

Thanks Julien.

Operator

Thank you. The next question is from Steven D'Ambrizzi with Granite Lake. Please go ahead.

Speaker 11

Hi, everyone. Thanks very much for taking my question. I just had 2 quick ones. Last quarter, I think in the slides, there was disclosure of Sunrise contract size is I think $170,000,000 Do you have a similar number for what Ocean Wind 1 is?

Speaker 3

Just given kind of where we're at, we're not going to That information we can follow-up. Thank you.

Speaker 11

Okay. That's fine. And then just on the Sunrise process from here, like So it appears like and Eversource want to rebid the project in the NYSERDA accelerated RFP. Are you guys still doing work for them in the meantime? Or what's the plan there?

Speaker 7

Sorry, could you repeat the question? Sorry, Steven, I didn't hear the question on Sunrise.

Speaker 11

Sorry, I was on mute. Just in terms of Sunrise, it sounds like Eversource and want to rebid into the NYSERDA accelerated RFP. And so just in the meantime, are you guys still doing work for them? Or like what is have you is it pencils down and you wait until you see what happens? Or just tell us a little bit about the process there?

Speaker 7

No, we're continuing we have started and we continue to perform work for Sunrise, and there's no indication from our customer that we Should expect any delays or slowdown in that work. They're rebidding the PPA, at least as far as I understand, doesn't have any impact

Operator

This concludes the Q and A portion of today's conference. I would now like to turn the call back over to Justin Forbird for closing remarks.

Speaker 1

Thanks MJ and thank you all for joining us today and for your questions. This concludes our conference call and we look forward to seeing many of you as we participate in the Utility Week activities in New York in early December, such as the Wells Fargo and Wolfe Utility Conferences, along with Bank of America's upcoming natural gas conference, among other events. You will see on Slide 24 my updated contact information now as a member of the Southwest Gas Holdings team.

Speaker 9

Feel free to reach out

Speaker 1

at any time and thank you for your interest

Operator

2023 earnings call and webcast. You may disconnect your line at this time. Have a wonderful day.

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Southwest Gas Q3 2023
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