Southwest Gas Pulls Off a Masterstroke: Deleveraging Without Losing Control – Here’s Why You Should Act Now!

Tired of companies that can’t manage their debt? Southwest Gas Holdings (SWX) just pulled off a move that’s textbook-perfect: slashing leverage while retaining 65.9% control of its prized utility asset, Centuri (CTRI), and getting a major vote of confidence from Carl Icahn himself. This isn’t just a share sale—it’s a strategic reset that could unlock massive value for investors. Let me break it down.

The Strategic Move: Debt Reduction with Precision

On May 22, 2025, Southwest Gas announced the closing of a $225 million capital raise, split between a $175 million secondary offering of Centuri shares and a $50 million private placement to Icahn entities. The math is simple: this cash infusion allows SWX to slash its debt pile while keeping a firm grip on Centuri, its crown jewel.

Let’s start with the deleveraging angle. SWX is using these proceeds to pay down outstanding debt, which could drastically improve its balance sheet. A stronger financial position means less risk, better access to capital, and more room to grow. For a utility company, this is critical—especially as regulators and investors demand fiscal discipline.

But here’s the kicker: after the sale, SWX still owns 65.9% of Centuri. That’s not just a majority—it’s a controlling stake. This means SWX can keep the upside of Centuri’s growth while reducing its own debt burden. It’s a win-win.

Icahn’s $50M Bet: A Seal of Approval on Centuri’s Future

Carl Icahn isn’t known for backing losing plays. His decision to snap up 2.86 million Centuri shares in a private placement at $17.50 per share sends a clear message: CTRI is undervalued and has huge growth potential.

Why now? Centuri is a utility infrastructure powerhouse, serving North America’s energy needs. From pipelines to renewable projects, its services are in demand as economies rebound and infrastructure spending booms. Icahn’s stake isn’t just a financial move—it’s a strategic endorsement of Centuri’s role in the energy transition.

The Synergy: SWX’s Discipline Meets CTRI’s Growth

Southwest Gas isn’t just a gas company—it’s a financially astute operator. By retaining control of Centuri, it can leverage CTRI’s growth without losing its own stability. Let’s break down the numbers:

• Centuri’s Q2 2024 results: Despite project delays, it still posted an adjusted EBITDA of $68.6 million and secured $400 million in new contracts. Cost-cutting measures are also on track to save $29 million annually by 2025.
• SWX’s 2024 guidance: Raised utility net income to $233–243 million, thanks to rate hikes in Nevada and California. Its cash position is now $600 million+ post-CTRI IPO proceeds.

The synergy here is undeniable. SWX’s focus on debt reduction and CTRI’s expanding market role create a dual fuel engine for growth.

Why This Is a No-Brainer Investment Now

Let’s be clear: this isn’t just about today’s balance sheet. It’s about positioning for tomorrow.

1. Undervalued Stock: Both SWX and CTRI are trading at discounts to their peers. SWX’s P/E ratio is below the industry average, and CTRI’s stock hasn’t fully reflected its infrastructure growth potential.
2. Icahn’s Stamp of Approval: When the “Oracle of Omaha” of activist investors bets on a company, it’s time to take notice.
3. Low Risk, High Upside: With debt reduction and a strong cash position, SWX is now better insulated against market volatility.

The Bottom Line: Act Now Before the Crowd Catches On

Southwest Gas just executed a textbook strategic move—deleveraging without diluting control, and securing a major ally in Icahn. With Centuri’s infrastructure backlog growing and SWX’s balance sheet strengthening, this pair is primed to outperform.

This isn’t a “wait-and-see” play. Buy SWX and CTRI now, and position yourself for the coming boom in energy infrastructure. The next move could be huge—and you don’t want to miss it.

Action Alert: Don’t let this slip away. Both stocks are set to surge as their stories gain momentum. Go long—now!