Great Basin Gas Transmission Company Announces Close of Second Supplemental Open Season and Execution of Associated Binding Precedent Agreements for Natural Gas Expansion in Northern Nevada

Rhea-AI Summary

Great Basin Gas Transmission (NYSE: SWX) closed its Second Supplemental Open Season for the 2028 Expansion Project and executed binding precedent agreements following a November 11, 2025 launch.

Key preliminary metrics: capacity requests ~800 million cubic feet per day, estimated capital investment ~$1.7 billion, planned capital spend split ~20% in 2026, ~25% in 2027, ~55% in 2028, and an expected in-service date of November 1, 2028. The Company projects potential annual incremental margin of $215M–$245M, subject to final costs and FERC approval. Management said it is not changing guidance now and will provide updates with its Q4 2025 earnings materials in February 2026.

Positive

• Capacity requests ~800 million cubic feet per day
• Estimated capital investment ~$1.7 billion
• Projected incremental margin $215M–$245M annually
• Target in-service date November 1, 2028

Negative

• All figures are preliminary and subject to actual construction costs
• FERC approval required before construction and operation
• Company did not update financial guidance pending integration into 2026 plan

Key Figures

Capacity requests nearly 800 million cubic feet per day Requested during Second Supplemental Open Season for 2028 Expansion Project

Capital investment approximately $1.7 billion Potential estimated capital investment for 2028 Expansion Project

2026 capital spending ~20% Estimated share of project capital spending in 2026

2027 capital spending ~25% Estimated share of project capital spending in 2027

2028 capital spending ~55% Estimated share of project capital spending in 2028

Expected in-service date November 1, 2028 Anticipated in-service date for the expansion project

Incremental margin (low end) approximately $215 million per year Potential annual incremental margin following project in-service

Incremental margin (high end) approximately $245 million per year Potential annual incremental margin following project in-service

Market Reality Check

$79.08 Last Close

Volume Volume 341,422 is roughly in line with the 332,223 20-day average (relative 1.03x). normal

Technical Shares at $79.08 are trading above the $76.09 200-day MA and 4.85% below the $83.11 52-week high.

Peers on Argus

SWX was modestly positive (+0.08%) with mixed but small moves among peers: OGS (+0.32%), NJR (+0.24%), SR (+0.23%), UGI (+0.56%), and BKH (-0.07%). No sector-wide momentum signal appeared in the scanner.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 26	CFO appointment	Neutral	+0.8%	Named Justin S. Forsberg as Senior Vice President and CFO.
Nov 19	Dividend declaration	Positive	+1.7%	Declared Q1 2026 dividend of $0.62 per share, continuing long history.
Nov 05	CFO transition	Neutral	-4.1%	Announced departure of CFO Robert J. Stefani and search for successor.
Nov 05	Earnings results	Positive	-4.1%	Reported strong Q3 2025 results and Centuri separation with debt repayment.
Oct 22	Earnings preview	Neutral	+1.1%	Announced timing and access details for Q3 2025 earnings call.

Pattern Detected

Recent news has generally seen aligned reactions, with one notable divergence on strong earnings.

Recent Company History

Over the last few months, Southwest Gas has focused on corporate and financial repositioning. It reported strong Q3 2025 results and completed the Centuri separation, with diluted EPS of $3.74 and substantial debt reduction. Governance developments included a CFO transition and then the appointment of Justin S. Forsberg as CFO effective December 1, 2025. The company also maintained its dividend at $0.62 per share for Q1 2026. Today’s expansion-related announcement fits into a broader narrative of utility-focused growth and infrastructure investment.

Market Pulse Summary

This announcement details a major Northern Nevada expansion, with capacity requests near 800 million cubic feet per day, potential capital investment of approximately $1.7 billion, and projected annual incremental margin of $215–$245 million after an expected November 1, 2028 in-service date. These figures are preliminary and subject to FERC approval and construction costs. In context of recent corporate reshaping and debt reduction, key variables to watch include final project scope, regulatory milestones, and how updated guidance in early 2026 incorporates these plans.

Key Terms

federal energy regulatory commission regulatory

"Subject to approval from the Federal Energy Regulatory Commission ("FERC") to construct and operate"

A U.S. federal agency that acts like a referee for the large-scale flow and sale of electricity and natural gas across state lines, setting rules, approving rates and licenses, and reviewing major projects and market changes. Investors care because its decisions — on things like transmission rules, pipeline approvals and market structure — can change company profits, project timelines and the price and reliability of energy, similar to how a traffic controller affects delivery routes and costs.

AI-generated analysis. Not financial advice.

Strong interest reinforces demand for expanded energy infrastructure investment across the region as Southwest Gas advances long-term energy solutions

LAS VEGAS, Dec. 8, 2025 /PRNewswire/ -- Great Basin Gas Transmission Company ("Great Basin"), a wholly owned subsidiary of Southwest Gas Corporation and part of Southwest Gas Holdings, Inc. (NYSE: SWX) ("Company"), today announced the successful close of its Second Supplemental Open Season for the 2028 Expansion Project ("Project") and the execution of associated binding precedent agreements for the Project.

To accommodate continued interest following the Open Seasons held earlier this year, the Second Supplemental Open Season launched on November 11, 2025, and provided potential shippers additional opportunity to submit binding requests, refine capacity needs, consider alternative in-service dates, and evaluate the final scope of the expansion Project to support energy demand growth across Northern Nevada.

"Demand for reliable and flexible natural gas transportation service in Northern Nevada continues to grow, and the executed precedent agreements reflect that demand," said Karen S. Haller, President and Chief Executive Officer of Southwest Gas Holdings, Inc. "We look forward to collaborating with shippers as we move forward with the FERC pre-filing process and align our infrastructure planning with the region's growing energy needs."

Open Season Results & Potential Impacts
Subject to approval from the Federal Energy Regulatory Commission ("FERC") to construct and operate the Project, the Company currently anticipates the following outcomes:

• Capacity requests totaling nearly 800 million cubic feet per day
• Potential estimated capital investment of approximately $1.7 billion
• Estimated capital spending of ~20% in 2026, ~25% in 2027, and ~55% in 2028, with an expected in-service date of November 1, 2028
• Following Project in-service, potential annual incremental margin of approximately $215 million to $245 million

These figures remain preliminary and are subject to the actual cost of construction. The Company is not changing its guidance at this time and will reserve any future guidance-related updates until the Project is included in its updated operational and financial plan, which is expected to be completed as part of its fourth quarter 2025 earnings conference call in February 2026.

Regional Importance
The proposed expansion Project will increase availability of reliable, on-demand energy in Northern Nevada, enhancing the service Great Basin currently provides across its existing 898-mile transmission system stretching from the Idaho-Nevada border southwesterly across the northern tier of the State to the Reno-Sparks/Carson City area, as well as Lake Tahoe, strengthening service to growing demand centers in Northern Nevada and supporting economic development in the State.

About Great Basin Gas Transmission Company
Great Basin Gas Transmission Company, formerly known as Paiute Pipeline Company, is a wholly owned subsidiary of Southwest Gas Corporation. Great Basin owns and operates an interstate pipeline system which extends from the Idaho-Nevada border to the Nevada-California border. The Great Basin system also includes a liquified natural gas peak shaving facility located near Lovelock, Nevada. Great Basin is a natural gas company subject to the jurisdiction of the Federal Energy Regulatory Commission under the Natural Gas Act.

About Southwest Gas Holdings, Inc.
Southwest Gas Holdings, Inc., through its primary operating subsidiary Southwest Gas Corporation, engages in the business of purchasing, distributing, and transporting natural gas. Southwest Gas Corporation is a dynamic energy company committed to exceeding the expectations of over 2 million customers throughout Arizona, Nevada, and California by providing safe and reliable service while innovating sustainable energy solutions to fuel the growth in its communities.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, without limitation, statements regarding the Company's expectations or intentions regarding the future. These forward-looking statements can often be identified by the use of words such as "will", "predict", "continue", "forecast", "expect", "believe", "anticipate", "outlook", "could", "target", "project", "intend", "plan", "seek", "estimate", "should", "may", "potential" and "assume", as well as variations of such words and similar expressions referring to the future. 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, the successful negotiation and execution of binding transportation agreements related to the Great Basin Project, FERC approval of the Project, construction of associated capital facilities, costs of construction and increased demand for pipeline transportation capacity. In addition, the Company can provide no assurance that its discussions about capital investment, capacity, capital expenditures, Project in-service date, incremental revenue generation, Project-related earnings guidance updates or other expected outcomes from the Project will occur.  The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligation to update the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

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SOURCE Southwest Gas Holdings, Inc.

FAQ

What did Great Basin (SWX) announce on December 8, 2025 about the 2028 Expansion Project?

Great Basin closed a Second Supplemental Open Season, executed binding precedent agreements, and reported preliminary capacity requests of ~800 million cubic feet per day.

How much is Great Basin (SWX) estimating to invest in the 2028 Expansion Project?

The company cited an estimated capital investment of ~$1.7 billion for the Project.

When is Great Basin (SWX) targeting the 2028 Expansion Project to be in service?

The expected in-service date is November 1, 2028, subject to final approvals and construction timing.

What incremental annual margin did Great Basin (SWX) project from the expansion?

Management estimated a potential annual incremental margin of $215 million to $245 million after the Project is in service.

What is the planned capital spending cadence for Great Basin's (SWX) expansion?

The company expects ~20% of capital spend in 2026, ~25% in 2027, and ~55% in 2028.

Will Great Basin (SWX) change its guidance because of the expansion?

No; the company said it is not changing guidance now and will update guidance during its Q4 2025 earnings materials in February 2026.