Southwest Gas’s (SWX) Pipeline Bet Just Got $600M Bigger

Southwest Gas (SWX) reported a $600 million boost in its pipeline bet with the Great Basin 2028 Expansion Project, growing contracted demand to roughly 1 billion cubic feet per day. This expansion now projects an annual margin of $270 million to $300 million, despite a $2.3 billion capital cost. The company saw net income rebound to $42.1 million in Q2, a sharp turnaround from a $40.2 million loss in the same quarter last year.

However, the core natural gas distribution segment's profit fell, reflecting heavy pipeline spending. The company also announced strengthened regulatory support, with approved rate cases in California and Nevada boosting annual revenue by $40 million and $186 million, respectively. Despite the positive outlook, challenges remain, including an unresolved California rate case and a pending FERC certificate for the Great Basin project.