Page 33 - SWGas Annual Report 2015

“plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “continue,” “forecast,” “intend,” “promote,” “seek,”
and similar words and expressions are generally used and intended to identify forward-looking statements. For
example, statements regarding operating margin patterns, customer growth, the composition of our customer base,
price volatility, seasonal patterns, payment of debt, interest savings, the Company’s COLI strategy, annual COLI
returns, replacement market and new construction market, bonus depreciation tax deductions, amount and timing
for completion of estimated future construction expenditures, including the LNG facility in southern Arizona and the
cost of the Paiute expansion in Elko County, Nevada, forecasted operating cash flows and results of operations, net
earnings impacts from gas infrastructure replacement surcharges, funding sources of cash requirements, amounts
generally expected to be reflected in 2016 or future period revenues from regulatory rate proceedings, PTY rate
adjustments, ARA rates and other surcharges, PGA, and other rate adjustments, sufficiency of working capital and
current credit facilities, bank lending practices, the Company’s views regarding its liquidity position, ability to raise
funds and receive external financing capacity and the intent and ability to issue the remaining capacity under the
Equity Shelf Program, future dividend increases, earnings trends, future Centuri operating revenues, operating
income, amortization and interest expense, pension and post-retirement benefits, certain benefits of tax acts, the
effect of any rate changes or regulatory proceedings, infrastructure replacement mechanisms and the COYL
program, statements regarding future gas prices, gas purchase contracts and derivative financial instruments,
recoverability of regulatory assets, the impact of certain legal proceedings, the expectation that goodwill assigned
to Brigadier will be deductible for tax purposes, the process required with regard to SB 151 legislation and resulting
Nevada regulations, the success in securing remaining approvals of the proposed holding company structure or
timing of the related reorganization, and the timing and results of future rate hearings and approvals are forward-
looking statements. All forward-looking statements are intended to be subject to the safe harbor protection
provided by the Reform Act.

A number of important factors affecting the business and financial results of the Company could cause actual
results to differ materially from those stated in the forward-looking statements. These factors include, but are not
limited to, customer growth rates, conditions in the housing market, the ability to recover costs through the PGA
mechanisms or other regulatory assets, the effects of regulation/deregulation, the timing and amount of rate relief,
changes in rate design, variability in volume of gas or transportation service sold to customers, changes in gas
procurement practices, changes in capital requirements and funding, the impact of conditions in the capital markets
on financing costs, changes in construction expenditures and financing, changes in operations and maintenance
expenses, effects of pension expense forecasts, accounting changes, future liability claims, changes in pipeline
capacity for the transportation of gas and related costs, our continued ability to meet consignment and purchase
requirements under Cap and Trade regulations, results of Centuri bid work, impacts of structural and management
changes at Centuri, Centuri construction expenses, differences between actual and originally expected outcomes
of Centuri bid or other fixed-price construction agreements, and ability to successfully procure new work,
acquisitions and management’s plans related thereto, competition, our ability to raise capital in external financings,
our ability to continue to remain within the ratios and other limits subject to our debt covenants, and ongoing
evaluations in regard to goodwill and other intangible assets. In addition, the Company can provide no assurance
that its discussions regarding certain trends relating to its financing and operating expenses will continue in future
periods. For additional information on the risks associated with the Company’s business, see Item 1A. Risk Factors
and Item 7A. Quantitative and Qualitative Disclosures About Market Risk in the Company’s Annual Report on Form 10-K
for the year ended December 31, 2015.

All forward-looking statements in this annual report are made as of the date hereof, based on information available
to the Company as of the date hereof, and the Company assumes no obligation to update or revise any of its

Southwest Gas Corporation