- Reaffirms 2024 earnings guidance range of $3.80 to $4.00 per share
- Received approval of and implemented new customer rates at Arkansas natural gas utility
- Filed settlement agreement for new customer rates at Iowa natural gas utility
- Completed key financing activities for 2024 and achieved long-term capitalization target
| Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (in millions, except per share amounts) | ||||||||||||
| Operating Income | $ | 75.8 | $ | 97.8 | $ | 339.8 | $ | 336.2 | ||||
| Net income available for common stock | $ | 24.4 | $ | 45.4 | $ | 175.0 | $ | 182.5 | ||||
| Earnings per share, Diluted | $ | 0.35 | $ | 0.67 | $ | 2.52 | $ | 2.74 | ||||
Earnings of $2.52 per share year to date benefited from new rates, rider recovery and customer growth, which partially offset unfavorable weather, lower energy market pricing for off-system sales, the impacts of unplanned generation outages, higher operating expenses, including depreciation, and higher interest expense and the impact of new shares issued. Earnings during the same period in 2023 benefited from a one-time state income tax rate reduction in Nebraska, gains on the sales of land and wind assets, and insurance proceeds.
"We are on track to achieve our 2024 earnings guidance as we continue to execute on our strategy while navigating ongoing cost pressures and mild weather,” said Linn Evans, president and CEO of Black Hills Corp. "Our team made progress on our regulatory initiatives, with new natural gas utility rates effective in Arkansas and a constructive settlement reached in Iowa. We also completed our key financing activities for the year, ending the quarter at our long-term capitalization target of 55% debt.
"I'm excited about our strategic progress in delivering safe, reliable and cost-effective energy for our customers. Our 260-mile Ready Wyoming transmission project remains on track and will expand system capacity and power market access. We also continue to pursue new renewable resources in Colorado and dispatchable, baseload generation in South Dakota. For more than a decade, our innovative service model has successfully supported data center demand, and we look forward to serving Meta's new AI data center in Cheyenne, Wyoming by 2026,” concluded Evans.
THIRD-QUARTER 2024 HIGHLIGHTS AND UPDATES
Electric Utilities
- On July 11, Wyoming Electric announced its partnership with Meta to provide power for its newest AI data center to be constructed in Cheyenne, Wyoming. The company will serve Meta under its Large Power Contract Service tariff and procure customized energy resources essential to Meta's operations and sustainability objectives. Through its innovative tariffs, Black Hills is advancing its data center and blockchain growth strategy, expecting to grow earnings contribution from these customers from 5% of earnings per share in 2023 to 10% or more by 2028.
- During the third quarter, Wyoming Electric continued construction on Ready Wyoming, a 260-mile electric transmission expansion project. Construction is on schedule and is expected to be completed in multiple segments in 2024 and 2025.
- During the third quarter, South Dakota Electric continued to pursue adding 100 megawatts of utility-owned, dispatchable natural gas resources by the second half of 2026. During the first quarter of 2025, South Dakota Electric expects to file for a permit to construct the project in South Dakota and request a certificate of public convenience and necessity (CPCN) in Wyoming.
- During the third quarter, Colorado Electric continued its resource planning process to add renewable resources to achieve an 80% emissions reduction by 2030 outlined in its Clean Energy Plan.
- On June 14, Colorado Electric filed a rate review with the Colorado Public Utilities Commission seeking the recovery of significant infrastructure investments in its 3,200-mile electric distribution and 600-mile electric transmission systems. The rate review requested $37 million in new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company requested new rates effective in the first quarter of 2025.
- On Oct. 15, Iowa Gas filed for approval from the Iowa Utilities Commission of a settlement agreement with the Iowa Office of Consumer Advocate for its rate review request filed May 1, 2024. The settlement, pending commission approval, includes $15 million of new annual revenue based on a weighted average cost of capital of 7.21%. The settlement allows for final rates during the first quarter of 2025, replacing interim rates which were effective on May 11, 2024.
- On Oct. 1, Arkansas Gas received approval from the Arkansas Public Service Commission of a settlement agreement for its rate review request filed Dec. 4, 2023. The agreement will provide $25 million of new annual revenue based on a capital structure of 46% equity and 54% debt and a return on equity of 9.85%. New rates were effective in October 2024.
- On Oct. 28, Black Hills' board of directors approved a quarterly dividend of $0.65 per share payable on Dec. 1, 2024, to common shareholders of record at the close of business on Nov. 18, 2024. The dividend, on an annualized rate, represents 54 consecutive years of dividend increases, the second longest track record in the electric and natural gas industry.
- During the third quarter, Black Hills issued 1.9 million shares of new common stock for net proceeds of $109 million under its at-the-market equity offering program, including a block equity trade. Year to date, the company issued a total of 3.3 million shares of new common stock for net proceeds of $182 million, completing the company's planned equity issuance for 2024.
Black Hills reaffirms its guidance issued on Feb. 7, 2024, for 2024 earnings per share available for common stock to be in the range of $3.80 to $4.00, which was based on the following assumptions:
- Normal weather conditions within our utility service territories including temperatures, precipitation levels and wind conditions;
- Normal operations and weather conditions for planned construction, maintenance and/or capital investment projects;
- Constructive and timely outcomes of utility regulatory dockets;
- No significant unplanned outages at our generating facilities;
- Equity issuance of $170 million to $190 million through the at-the-market equity offering program; and
- Production tax credits of approximately $18 million associated with wind generation assets.
| BLACK HILLS CORPORATION
CONSOLIDATED FINANCIAL RESULTS (Minor differences may result due to rounding) | ||||||||||||
| Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| (in millions, except per share amount) | ||||||||||||
| Revenue | $ | 401.6 | $ | 407.1 | $ | 1,530.6 | $ | 1,739.6 | ||||
| Operating expenses: | ||||||||||||
| Fuel, purchased power, and cost of natural gas sold | 94.5 | 102.2 | 518.2 | 749.8 | ||||||||
| Operations and maintenance | 145.6 | 125.7 | 420.8 | 412.5 | ||||||||
| Depreciation and amortization | 69.3 | 64.9 | 201.8 | 191.2 | ||||||||
| Taxes - property and production | 16.4 | 16.5 | 50.0 | 49.9 | ||||||||
| Total operating expenses | 325.8 | 309.3 | 1,190.8 | 1,403.4 | ||||||||
| Operating income | 75.8 | 97.8 | 339.8 | 336.2 | ||||||||
| Interest expense, net | (45.2 | ) | (41.0 | ) | (131.9 | ) | (126.0 | ) | ||||
| Other income (expense), net | (1.3 | ) | (0.6 | ) | (1.7 | ) | (1.5 | ) | ||||
| Income tax benefit (expense) | (2.9 | ) | (7.4 | ) | (23.6 | ) | (16.0 | ) | ||||
| Net income | 26.4 | 48.8 | 182.6 | 192.7 | ||||||||
| Net income attributable to non-controlling interest | (2.0 | ) | (3.4 | ) | (7.6 | ) | (10.2 | ) | ||||
| Net income available for common stock | $ | 24.4 | $ | 45.4 | $ | 175.0 | $ | 182.5 | ||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 70.5 | 67.3 | 69.2 | 66.7 | ||||||||
| Diluted | 70.6 | 67.4 | 69.3 | 66.7 | ||||||||
| Earnings per share: | ||||||||||||
| Earnings Per Share, Basic | $ | 0.35 | $ | 0.67 | $ | 2.53 | $ | 2.74 | ||||
| Earnings Per Share, Diluted | $ | 0.35 | $ | 0.67 | $ | 2.52 | $ | 2.74 | ||||
| CONSOLIDATING INCOME STATEMENTS -- THIRD QUARTER | ||||||||||||
| (Minor differences may result due to rounding) | ||||||||||||
| Three Months Ended Sept. 30, 2024 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
| (in millions) | ||||||||||||
| Revenue | $ | 232.5 | $ | 173.6 | $ | (4.5 | ) | $ | 401.6 | |||
| Fuel, purchased power and cost of natural gas sold | 54.9 | 39.7 | (0.1 | ) | 94.5 | |||||||
| Operations and maintenance | 65.1 | 84.8 | (4.3 | ) | 145.6 | |||||||
| Depreciation and amortization | 38.0 | 31.3 | 0.1 | 69.3 | ||||||||
| Taxes - property and production | 9.4 | 6.9 | - | 16.4 | ||||||||
| Operating income (loss) | 65.1 | 10.9 | (0.2 | ) | 75.8 | |||||||
| Interest expense, net | (45.2 | ) | ||||||||||
| Other income (expense), net | (1.3 | ) | ||||||||||
| Income tax benefit (expense) |
| |||||||||||