The company sold all of its remaining shares in Centuri, receiving approximately $525 million in net proceeds.
Southwest Gas Holdings, Inc. has officially finalized its transformation, announcing the completion of its separation from Centuri Holdings, Inc. The company announced the closing of a previously registered public offering in which it sold 27,362,210 shares of Centuri's common stock at $19.60 per share, marking its full exit from the infrastructure services business.
The move concludes a major initiative for Southwest Gas Holdings, which has been shifting its focus to become a pure-play regulated natural gas utility. The transaction, which generated approximately $525 million in net proceeds for Southwest Gas, provides the company with significant financial flexibility for future growth and investment. The company's President and CEO, Karen Haller, stated, "We've successfully completed our exit from Centuri, positioning Southwest Gas Holdings as a premier fully regulated natural gas company."
Haller highlighted that the separation simplifies the company's business model and enhances transparency for investors, aligning it with long-term value creation in the utility sector. The financial proceeds from the sale have been strategically allocated to strengthen the company’s balance sheet. According to the press release, all holding company debt, including a term loan, has been fully repaid. Furthermore, the company now holds approximately $600 million in cash on hand, providing a strong financial foundation for its next chapter.
The company's primary focus for these new resources will be on capital investments at its core utility business, Southwest Gas Corporation. This includes potential future projects such as the 2028 expansion of the Great Basin Gas Transmission Company. This commitment to disciplined growth is intended to reinforce the company's dedication to providing reliable returns for shareholders.
The separation marks a significant milestone in the company’s history, streamlining its operations and reinforcing its commitment to its regulated utility business. By shedding its ownership in Centuri, Southwest Gas Holdings can now fully concentrate on its natural gas operations, a sector known for its stability and consistent returns. This strategic realignment is expected to benefit shareholders by creating a more focused and financially robust company. The announcement emphasizes that the sale was conducted in accordance with the registration requirements of the Securities Act of 1933, ensuring a smooth and lawful transaction. This successful completion of the Centuri separation sets a clear path forward for Southwest Gas Holdings, positioning it for what executives believe will be a period of significant growth and enhanced shareholder value.
