Page 34 - SWGas Annual Report 2015

forward-looking statements even if experience or future changes show that the indicated results or events will not
be realized. We caution you to not rely unduly on any forward-looking statement(s).

Common Stock Price and Dividend Information

2015 2014 Dividends Declared

High Low High Low 2015 2014

First quarter $63.68 $52.94 $55.33 $51.70 $0.405 $0.365
Second quarter 59.75 51.69 55.69 50.96 0.405 0.365
Third quarter 58.40 51.26 53.34 47.21 0.405 0.365
Fourth quarter 62.56 50.78 64.20 48.23 0.405 0.365

$1.620 $1.460

The principal market on which the common stock of the Company is traded is the New York Stock Exchange. At
February 16, 2016, there were 14,095 holders of record of common stock, and the market price of the common
stock was $59.56.

In reviewing dividend policy, the Board of Directors (“Board”) considers the adequacy and sustainability of earnings
and cash flows of the Company and its subsidiaries; the strength of the Company’s capital structure; the
sustainability of the dividend through all business cycles; and whether the dividend is within a normal payout range
for its respective businesses. The quarterly common stock dividend declared was 33 cents per share throughout
2013, 36.5 cents per share throughout 2014, and 40.5 cents per share throughout 2015. As a result of its ongoing
review of dividend policy, in February 2016, the Board increased the quarterly dividend from 40.5 cents to 45 cents
per share, effective with the June 2016 payment. This marks the tenth consecutive year in which the dividend was
increased. The Board’s policy is to target a dividend payout ratio that allows the Company to maintain its strong
credit ratings and effectively fund its rate base growth and is consistent with the local distribution company peer
group average. The timing and amount of any increases will be based on the Board’s continual review of the
Company’s dividend rate in the context of the performance of the Company’s two operating segments and their
future growth prospects.

Southwest Gas Corporation