Southwest Gas Holdings Inc. (SWGHI) is a mostly low-risk and rate-regulated natural gas utility holding company that also owns a higher-risk, non-regulated construction services business. We view the company's overall management of regulatory risk as generally consistent with peers. The company has geographical and regulatory diversity with regulated operations spanning three states (Arizona, Nevada, and California). Its customer base is large and mostly residential, which provides stability to its revenues. The company has a diverse source of natural gas supply. Non-regulated construction services business reflects no more than 25% of the consolidated company's earnings on a forward-looking basis. We assess SWGHI's financial measures using more moderate financial benchmarks compared with the typical corporate issuer, reflecting the company's mostly low-risk, regulated
