Southwest Gas $SWX Stock Buyout Offer From Carl Icahn

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Carl Icahn made a tender offer to buy all outstanding shares of SWX stock for $75 per share as disclosed in a press release on January 27, 2022. The stock currently trades at $66 per share.

Southwest Gas Holdings Issues Statement Regarding Extension of Carl Icahn’s Unsolicited Tender Offer

On January 27, 2022, Southwest Gas Holdings, Inc. (NYSE: SWX) confirmed that an affiliate of Carl Icahn (“Icahn”) extended its tender offer to acquire any and all outstanding common shares of the Company for $75.00 per share in cash (the “Offer”). As previously announced, Southwest Gas’ Board of Directors rejected Icahn’s unsolicited, inadequate, structurally coercive, highly conditional and illusory tender offer. Accordingly, the Board continues to recommend that stockholders not tender any of their shares into the Offer.

Southwest Gas issued the following statement:

The Southwest Gas Board of Directors continues to believe that Mr. Icahn’s Offer is highly illusory and undervalues the Company, has no certainty of completion and is not in the best interests of Southwest Gas stockholders. The Offer remains inadequate and contingent upon a long list of ambiguous conditions, nearly all of which we note are within Mr. Icahn’s discretion.

Moreover, Mr. Icahn has now amended his Offer so that it would only proceed if he wins control of the Southwest Gas Board, which further reinforces our belief that the Icahn slate has been assembled with one goal in mind—to facilitate Mr. Icahn’s effort to take control of Southwest Gas without paying a control premium to Southwest Gas stockholders.

Mr. Icahn claims to have found a way to circumvent the regulatory approval process. We disagree with Mr. Icahn’s apparent assertion that removing voting control from some fraction of the shares he proposes to own satisfies the need for him to obtain regulatory approval. The fact is Mr. Icahn does not have regulatory approval to proceed with his Offer or take control of the Southwest Gas Board through a proxy contest. Further, Mr. Icahn has not waived, nor satisfied, the Regulatory Approval condition to his Offer.

The Southwest Gas Board and management team are executing a clear and detailed strategy to create value and will continue to take actions to enhance value for all of our shareholders.

Lazard and Moelis & Company LLC are serving as financial advisors to Southwest Gas and Morrison & Foerster LLP and Cravath, Swaine & Moore LLP are serving as legal advisors.

Southwest Gas Holdings, Inc., through its subsidiaries, engages in the business of purchasing, distributing and transporting natural gas, and providing comprehensive utility infrastructure services across North America. Southwest Gas Corporation, a wholly owned subsidiary, safely and reliably delivers natural gas to over two million customers in Arizona, California and Nevada. Centuri Group, Inc., a wholly owned subsidiary, is a comprehensive utility infrastructure services enterprise dedicated to delivering a diverse array of solutions to North America’s gas and electric providers. The Company’s MountainWest subsidiary provides natural gas storage and interstate pipeline services within the Rocky Mountain region.

Southwest Gas Proud To Expand its Service Territory in Graham County

On January 14, 2022, with approval from the Arizona Corporation Commission, the transition of the natural gas service provider for customers in Graham County from Graham County Utilities Inc. (GCU) to Southwest Gas is set to formally begin January 18, 2022. Southwest Gas is excited to welcome customers from GCU and is committed to making the transition a seamless experience.

“We are excited to welcome these additional 5,300 Graham County customers to the Southwest Gas family. We take great pride in being good community partners and are proud to have more citizens of Graham County join our growing customer base, which now serves more than one million customers throughout Arizona,” said John Hester, president and CEO of Southwest Gas. “We are committed to providing excellent, safe and reliable service to our new customers in Graham County.”

Southwest Gas has committed to establishing a local operation facility in Graham County. In the meantime, Southwest Gas will place a payment kiosk at the Graham County Electric Cooperative office to allow customers to pay their bills at a familiar location. Customers can learn more about Southwest Gas, how to pay monthly bills, assistance programs, and more at www.swgas.com.

“During this time, GCU customers should expect to receive the same service they have come to rely on,” said Julie Williams, Southwest Gas Southern Arizona vice president. “GCU and Southwest Gas are excited about the future and are looking forward to making this transition as seamless as possible.”

GCU customers transitioning to Southwest Gas will continue to pay their current GCU rates until conclusion of Southwest Gas’ current general rate case application, recently filed with the Arizona Corporation Commission. GCU customers will have access to Southwest Gas assistance programs, including Low Income discounts, Customer Owned Yard Line relocations, Bill Assistance, Energy Efficiency and Energy Share Programs. Customers are encouraged to visit swgas.com/assist for more information on these programs.

Southwest Gas Holdings Completes Acquisition of Questar Pipeline From Dominion Energy

On December 31, 2021, Southwest Gas Holdings, Inc. (NYSE: SWX) announced that it has completed the acquisition of Dominion Energy Quester Pipeline, LLC, and its subsidiaries and certain affiliates (collectively “Questar Pipeline Entities”). Southwest Gas Holdings, Inc. has also created a new subsidiary named MountainWest Pipelines Holding Company (MountainWest) that owns the Questar Pipeline Entities. The Questar Pipeline Entities will be rebranded under the MountainWest brand during the first half of 2022.

MountainWest provides 2,160 miles of highly contracted, FERC-regulated interstate natural gas pipelines in the Rocky Mountain region. Colleen Larkin Bell will lead the MountainWest entities as President who will report to Karen Haller, Executive Vice President, Southwest Gas Holdings. The acquisition is expected to be accretive to Southwest Gas Holdings’ earnings per share in 2022.

“We are very enthusiastic about the addition of MountainWest to the Southwest Gas Holdings family of assets,” says John Hester, president and CEO of Southwest Gas Holdings. “Natural gas pipelines are essential to the nation’s energy future, which includes alternative sources such as renewable natural gas and hydrogen blended gas, and MountainWest brings increased scale and diversification to our business portfolio. MountainWest will focus on adding value by accelerating growth opportunities and positioning the Company as a leader in the evolving energy landscape. We look forward to sharing additional information about growth opportunities related to this acquisition in the near future.”

“The MountainWest entities and their employees brings extensive knowledge and resources that will mesh perfectly with Southwest Gas Holdings’ strategy, values and culture,” says Karen Haller, executive vice president of Southwest Gas Holdings. “The new President of the MountainWest entities, Colleen Larkin Bell, has more than 30 years of experience in the natural gas industry, including expansive executive experience within the Questar companies. Her leadership will drive us forward in growth and innovation as we explore new energy technologies to continue reducing our environmental impact throughout our service areas.”

“I’m excited to join the Southwest Gas Holdings family and look forward to leading MountainWest and its employees into this new chapter of our organization’s history,” says Colleen Larkin Bell, president of the MountainWest entities. “Our team is looking to leverage synergies that will further our shared commitments to sustainability, reliability and operational excellence.”

📺 Southwest Gas executives face state regulators

Southwest Gas executives face state regulators

📉 SWX Stock Technical Analysis

SWX stock chart as of January 27, 2022, is in downtrend.

Both the long and short term trends are negative. It is better to avoid buying stocks with negative trends. SWX is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range. SWX is an average performer in the Gas Utilities industry, it outperforms 50% of 20 stocks in the same industry.

There is a support zone ranging from 64.99 to 65.42. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also a support zone ranging from 63.19 to 63.19. This zone is formed by a combination of multiple trend lines in multiple time frames. Finally, there is support at 58.51 from a horizontal line in the weekly time frame.

There is a resistance zone ranging from 67.04 to 68.39. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a resistance zone ranging from 70.16 to 72.96. This zone is formed by a combination of multiple trend lines in multiple time frames.

SWX has a poor technical rating and the quality of the setup is also only medium at the moment. SWX stock has a Setup Rating of 4 out of 10. Prices have been consolidating lately. Click here to sign up for email alerts on when SWX stock has a Setup Rating of 8 or higher.

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