LV utility’s quarterly earnings rise

Tuesday, Feb. 22, 2000 | 10:52 a.m.

Southwest Gas Corp. today reported net income of $28.8 million, or 93 cents per share, for the quarter ending Dec. 31, 1999, slightly missing analyst expectations for the quarter.

Net income rose 15 percent over the year-ago period, while earnings per share increased 12 percent. Per-share earnings increased at a slower pace because Southwest has about 550,000 more shares outstanding since Dec. 31, 1998.

Analysts had expected earnings of 95 cents per share.

Operating revenues declined 2.6 percent, to $262.3 million.

Southwest attributed lower revenues to a lower operating margin caused by weather variations over last year and higher operating expenses. Net income increased because "the resolution of certain matters affecting both quarters," including the termination of Southwest's $1.8 billion merger with ONEOK Inc., resulted in a significant decrease in income taxes.

ONEOK, based in Tulsa, Okla., terminated its merger agreement with Southwest in January. Southwest has since sued ONEOK in federal court in Phoenix, accusing it of breach of contract and fraud.

In morning trading, Southwest stock was at $17.44, down 25 cents and close to its 52-week low.