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Globe Newswire 5-Feb-2025 4:15 PM
RAPID CITY, S.D., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the fourth quarter and full year ending Dec. 31, 2024. Operating income, net income available for common stock and earnings per share for the three and twelve months ended Dec. 31, 2024, compared to the three and twelve months ended Dec. 31, 2023, were:
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
(in millions, except per share amounts) | |||||||||||||
Operating Income | $ | 163.3 | $ | 136.5 | $ | 503.1 | $ | 472.7 | |||||
Net income available for common stock | $ | 98.1 | $ | 79.6 | $ | 273.1 | $ | 262.2 | |||||
Earnings per share, Diluted | $ | 1.37 | $ | 1.17 | $ | 3.91 | $ | 3.91 |
Earnings of $3.91 per share for 2024 benefited from $0.82 per share of new rates, rider recovery, and customer growth. Significant expense management measures offset the impacts of mild weather, unplanned generation outages and higher insurance expense.
"We advanced our regulatory and growth initiatives and delivered strong earnings," said Linn Evans, president and CEO of Black Hills Corp. "I'm proud of our team's execution and our relentless commitment to providing safe, reliable, and cost-effective service. We reached constructive settlements for our natural gas rate reviews in Arkansas and Iowa. We also maintained our solid financial position and credit ratings, achieving our long-term capitalization target during the year. On behalf of our customers, we invested approximately $800 million in our electric and gas infrastructure. This included energizing the first phase of our Ready Wyoming transmission expansion, the largest transmission project in our company's history.
"As we roll forward our five-year plan, I'm confident in our 4% to 6% long-term EPS growth target given our customer-focused capital outlook and growth opportunities. We increased our capital forecast by 10% through 2029 to $4.7 billion. We have a pipeline of data center demand exceeding one gigawatt from existing customers within the next 10 years. Approximately 500 megawatts of that demand is expected to be served by the end of 2029 through our innovative tariff that requires minimal capital. We expect this demand to more than double EPS contribution to greater than 10% by year-end 2029. Additionally, upside potential from data centers and other organic growth in our service territories is expected to drive future transmission and generation investment opportunities above and beyond our current five-year plan," concluded Evans.
FOURTH-QUARTER AND FULL-YEAR 2024 HIGHLIGHTS AND RECENT UPDATES
Electric Utilities
Gas Utilities
Corporate and Other
2025 EARNINGS GUIDANCE INITIATED
Black Hills initiates its guidance for 2025 earnings per share available for common stock to be in the range of $4.00 to $4.20, based on the following assumptions:
BLACK HILLS CORPORATION CONSOLIDATED FINANCIAL RESULTS (Minor differences may result due to rounding) | |||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
(in millions) | |||||||||||||
Revenue | $ | 597.1 | $ | 591.7 | $ | 2,127.7 | $ | 2,331.3 | |||||
Operating expenses: | |||||||||||||
Fuel, purchased power, and cost of natural gas sold | 212.1 | 233.1 | 730.3 | 982.9 | |||||||||
Operations and maintenance | 136.2 | 139.5 | 557.0 | 552.0 | |||||||||
Depreciation and amortization | 68.3 | 65.6 | 270.1 | 256.8 | |||||||||
Taxes other than income taxes | 17.2 | 17.0 | 67.2 | 66.9 | |||||||||
Total operating expenses | 433.8 | 455.2 | 1,624.6 | 1,858.6 | |||||||||
Operating income | 163.3 | 136.5 | 503.1 | 472.7 | |||||||||
Interest expense, net | (49.7 | ) | (41.9 | ) | (181.7 | ) | (167.9 | ) | |||||
Other income (expense), net | 0.1 | (1.8 | ) | (1.4 | ) | (3.2 | ) | ||||||
Income tax (expense) | (12.7 | ) | (9.6 | ) | (36.3 | ) | (25.6 | ) | |||||
Net income | 101.0 | 83.2 | 283.7 | 276.0 | |||||||||
Net income attributable to non-controlling interest | (2.9 | ) | (3.6 | ) | (10.6 | ) | (13.8 | ) | |||||
Net income available for common stock | $ | 98.1 | $ | 79.6 | $ | 273.1 | $ | 262.2 | |||||
Weighted average common shares outstanding (in millions): | |||||||||||||
Basic | 71.4 | 67.9 | 69.8 | 67.0 | |||||||||
Diluted | 71.6 | 68.0 | 69.9 | 67.1 | |||||||||
Earnings per share: | |||||||||||||
Earnings per share, Basic | $ | 1.37 | $ | 1.17 | $ | 3.91 | $ | 3.91 | |||||
Earnings per share, Diluted | $ | 1.37 | $ | 1.17 | $ | 3.91 | $ | 3.91 |
CONSOLIDATING INCOME STATEMENTS -- FOURTH QUARTER | ||||||||||||
(Minor differences may result due to rounding) | ||||||||||||
Consolidating Income Statement | ||||||||||||
Three Months Ended Dec. 31, 2024 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
(in millions) | ||||||||||||
Revenue | $ | 216.3 | $ | 385.2 | $ | (4.4 | ) | $ | 597.1 | |||
Fuel, purchased power and cost of natural gas sold | 50.7 | 161.4 | - | 212.1 | ||||||||
Operations and maintenance | 62.2 | 78.0 | (4.0 | ) | 136.2 | |||||||
Depreciation and amortization | 36.5 | 31.8 | - | 68.3 | ||||||||
Taxes other than income taxes | 10.0 | 7.2 | - | 17.2 | ||||||||
Operating income | $ | 56.9 | $ | 106.8 | $ | (0.4 | ) | $ | 163.3 | |||
Interest expense, net | (49.7 | ) | ||||||||||
Other income (expense), net | 0.1 | |||||||||||
Income tax benefit (expense) | (12.7 | ) | ||||||||||
Net income | 101.0 | |||||||||||
Net income attributable to non-controlling interest | (2.9 | ) | ||||||||||
Net income available for common stock | $ | 98.1 |
Consolidating Income Statement | ||||||||||||
Three Months Ended Dec. 31, 2023 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
(in millions) | ||||||||||||
Revenue | $ | 215.9 | $ | 380.3 | $ | (4.5 | ) | $ | 591.7 | |||
Fuel, purchased power and cost of natural gas sold | 52.9 | 180.4 | (0.2 | ) | 233.1 | |||||||
Operations and maintenance | 59.4 | 81.9 | (1.8 | ) | 139.5 | |||||||
Depreciation and amortization | 35.9 | 29.6 | 0.1 | 65.6 | ||||||||
Taxes other than income taxes | 9.6 | 7.4 | - | 17.0 | ||||||||
Operating income | $ | 58.1 | $ | 81.0 | $ | (2.6 | ) | $ | 136.5 | |||
Interest expense, net | (41.9 | ) | ||||||||||
Other income (expense), net | (1.8 | ) | ||||||||||
Income tax benefit (expense) | (9.6 | ) | ||||||||||
Net income | 83.2 | |||||||||||
Net income attributable to non-controlling interest | (3.6 | ) | ||||||||||
Net income available for common stock | $ | 79.6 |
Three Months Ended Dec. 31, 2024, Compared to the Three Months Ended Dec. 31, 2023
CONSOLIDATING INCOME STATEMENTS -- YEAR-TO-DATE | ||||||||||||
(Minor differences may result due to rounding) | ||||||||||||
Consolidating Income Statement | ||||||||||||
Twelve Months Ended Dec. 31, 2024 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
(in millions) | ||||||||||||
Revenue | $ | 876.1 | $ | 1,269.4 | $ | (17.8 | ) | $ | 2,127.7 | |||
Fuel, purchased power and cost of natural gas sold | 206.4 | 524.3 | (0.4 | ) | 730.3 | |||||||
Operations and maintenance | 252.6 | 320.7 | (16.3 | ) | 557.0 | |||||||
Depreciation and amortization | 145.3 | 124.7 | 0.1 | 270.1 | ||||||||
Taxes other than income taxes | 38.8 | 28.4 | - | 67.2 | ||||||||
Operating income | $ | 233.0 | $ | 271.3 | $ | (1.2 | ) | $ | 503.1 | |||
Interest expense, net | (181.7 | ) | ||||||||||
Other income (expense), net | (1.4 | ) | ||||||||||
Income tax benefit (expense) | (36.3 | ) | ||||||||||
Net income | 283.7 | |||||||||||
Net income attributable to non-controlling interest | (10.6 | ) | ||||||||||
Net income available for common stock | $ | 273.1 |
Consolidating Income Statement | ||||||||||||
Twelve Months Ended Dec. 31, 2023 | Electric Utilities | Gas Utilities | Corporate and Other | Total | ||||||||
(in millions) | ||||||||||||
Revenue | $ | 865.0 | $ | 1,484.2 | $ | (17.9 | ) | $ | 2,331.3 | |||
Fuel, purchased power and cost of natural gas sold | 200.1 | 783.2 | (0.4 | ) | 982.9 | |||||||
Operations and maintenance | 236.2 | 328.7 | (12.9 | ) | 552.0 | |||||||
Depreciation and amortization | 142.6 | 113.9 | 0.3 | 256.8 | ||||||||
Taxes other than income taxes | 37.3 | 29.6 | - | 66.9 | ||||||||
Operating income | $ | 248.8 | $ | 228.8 | $ | (4.9 | ) | $ | 472.7 | |||
Interest expense, net | (167.9 | ) | ||||||||||
Other income (expense), net | (3.2 | ) | ||||||||||
Income tax benefit (expense) | (25.6 | ) | ||||||||||
Net income | 276.0 | |||||||||||
Net income attributable to non-controlling interest | (13.8 | ) | ||||||||||
Net income available for common stock | $ | 262.2 |
Twelve Months Ended Dec. 31, 2024, Compared to the Twelve Months Ended Dec. 31, 2023
OPERATING STATISTICS
Electric Utilities
Revenue (in millions) | Quantities Sold (GWh) | |||||||||||||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||||||||||||||||
By customer class | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Residential | $ | 55.5 | $ | 54.7 | $ | 234.8 | $ | 224.5 | 348.5 | 347.9 | 1,471.9 | 1,438.5 | ||||||||||||
Commercial | 63.7 | 63.8 | 263.6 | 254.5 | 500.8 | 498.2 | 2,091.4 | 2,074.4 | ||||||||||||||||
Industrial | 42.0 | 42.4 | 168.9 | 157.3 | 526.4 | 583.2 | 2,169.8 | 2,094.8 | ||||||||||||||||
Municipal | 4.3 | 4.3 | 17.0 | 17.5 | 35.4 | 34.8 | 147.1 | 150.9 | ||||||||||||||||
Other Retail | 3.9 | 3.0 | 14.3 | 12.3 | - | - | - | - | ||||||||||||||||
Subtotal Retail Revenue - Electric | 169.4 | 168.2 | 698.6 | 666.1 | 1,411.1 | 1,464.1 | 5,880.2 | 5,758.6 | ||||||||||||||||
Wholesale | 5.6 | 9.6 | 26.8 | 34.2 | 130.3 | 193.5 | 589.4 | 699.7 | ||||||||||||||||
Market - off-system sales | 12.0 | 13.4 | 34.8 | 50.9 | 258.8 | 219.4 | 765.6 | 737.9 | ||||||||||||||||
Transmission | 13.1 | 11.2 | 52.2 | 47.1 | - | - | - | - | ||||||||||||||||
Other (a) | 16.2 | 13.5 | 63.7 | 66.7 | - | - | - | - | ||||||||||||||||
Total Revenue and Quantities Sold | $ | 216.3 | $ | 215.9 | $ | 876.1 | $ | 865.0 | 1,800.2 | 1,877.0 | 7,235.2 | 7,196.2 | ||||||||||||
Other Uses, Losses, or Generation, net (b) | 152.7 | 117.9 | 390.3 | 463.5 | ||||||||||||||||||||
Total Energy | 1,952.9 | 1,994.9 | 7,625.5 | 7,659.7 |
(a) Primarily related to Integrated Generation, inter-segment rent, and non-regulated services to our retail customers under the Service Guard Comfort Plan and Tech Services.
(b) Includes company uses and line losses.
Revenue (in millions) | Quantities Sold (GWh) | |||||||||||||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||||||||||||||||
By business unit | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Colorado Electric | $ | 68.2 | $ | 68.8 | $ | 276.9 | $ | 285.7 | 575.9 | 602.7 | 2,392.7 | 2,397.2 | ||||||||||||
South Dakota Electric | 79.5 | 80.5 | 322.0 | 321.1 | 674.2 | 677.6 | 2,556.5 | 2,554.3 | ||||||||||||||||
Wyoming Electric | 57.6 | 57.2 | 234.3 | 212.2 | 528.3 | 578.7 | 2,190.1 | 2,124.1 | ||||||||||||||||
Integrated Generation | 11.0 | 9.4 | 42.9 | 46.0 | 21.8 | 18.0 | 95.9 | 120.6 | ||||||||||||||||
Total Revenue and Quantities Sold | $ | 216.3 | $ | 215.9 | $ | 876.1 | $ | 865.0 | 1,800.2 | 1,877.0 | 7,235.2 | 7,196.2 |
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Degree Days | Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal |
Heating Degree Days: | ||||||||
Colorado Electric | 1,876 | (8)% | 1,965 | (5)% | 4,926 | (8)% | 5,330 | 1% |
South Dakota Electric | 2,231 | (15)% | 2,348 | (13)% | 6,311 | (13)% | 6,969 | (4)% |
Wyoming Electric | 2,137 | (13)% | 2,249 | (10)% | 6,272 | (10)% | 6,783 | (1)% |
Combined (a) | 2,052 | (12)% | 2,154 | (9)% | 5,676 | (10)% | 6,185 | (1)% |
Cooling Degree Days: | ||||||||
Colorado Electric | 22 | 210% | 6 | (10)% | 1,269 | 11% | 1,046 | (10)% |
South Dakota Electric | 10 | 376% | 1 | (38)% | 913 | 49% | 497 | (21)% |
Wyoming Electric | 5 | -- | -- | -- | 491 | 7% | 329 | (30)% |
Combined (a) | 14 | 265% | 3 | (15)% | 989 | 20% | 713 | (15)% |
(a) Degree days are calculated based on a weighted average of total customers by state.
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||
Contracted generating facilities Availability(a) by fuel type | 2024 | 2023 | 2024 | 2023 |
Coal (b) | 97.2% | 93.8% | 89.8% | 93.7% |
Natural gas and diesel oil (b) | 85.5% | 86.2% | 92.9% | 92.1% |
Wind | 87.6% | 89.8% | 90.6% | 92.5% |
Total Availability | 88.2% | 88.9% | 91.7% | 92.6% |
Wind Capacity Factor (a) | 38.0% | 35.8% | 36.7% | 37.4% |
(a) Availability and Wind Capacity Factor are calculated using a weighted average based on capacity of our generating fleet.
(b) 2024 included unplanned outages at Wygen I and Pueblo Airport Generation #4-5.
OPERATING STATISTICS (continued)
Gas Utilities
Revenue (in millions) | Quantities Sold and Transported (Dth in millions) | |||||||||||||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||||||||||||||||
By customer class | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Retail Revenue - | ||||||||||||||||||||||||
Residential | $ | 215.4 | $ | 215.1 | $ | 691.9 | $ | 830.3 | 18.4 | 19.0 | 56.7 | 60.1 | ||||||||||||
Commercial | 82.4 | 83.6 | 266.3 | 337.3 | 9.1 | 8.9 | 28.4 | 29.4 | ||||||||||||||||
Industrial | 5.4 | 7.0 | 23.7 | 33.1 | 0.9 | 1.2 | 6.0 | 5.7 | ||||||||||||||||
Other Retail (a) | 11.8 | 12.0 | 40.7 | 48.1 | - | - | - | - | ||||||||||||||||
Subtotal Retail Revenue - Gas | 315.0 | 317.7 | 1,022.6 | 1,248.8 | 28.4 | 29.1 | 91.1 | 95.2 | ||||||||||||||||
Transportation | 47.3 | 45.4 | 178.2 | 176.8 | 42.2 | 41.6 | 159.2 | 159.8 | ||||||||||||||||
Other (b) | 22.9 | 17.2 | 68.6 | 58.6 | - | - | - | - | ||||||||||||||||
Total Revenue and Quantities Sold | $ | 385.2 | $ | 380.3 | $ | 1,269.4 | $ | 1,484.2 | 70.6 | 70.7 | 250.3 | 255.0 |
(a) Includes Black Hills Energy Services revenue under the Choice Gas Program.
(b) Includes inter-segment rent and non-regulated services under the Service Guard Comfort Plan, Tech Services, and HomeServe.
Revenue (in millions) | Quantities Sold and Transported (Dth in millions) | |||||||||||||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||||||||||||||||
By business unit | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Arkansas Gas | $ | 81.6 | $ | 79.8 | $ | 248.8 | $ | 268.9 | 8.4 | 9.1 | 29.9 | 30.2 | ||||||||||||
Colorado Gas | 87.3 | 85.8 | 278.8 | 313.6 | 9.7 | 9.5 | 31.0 | 32.8 | ||||||||||||||||
Iowa Gas | 51.9 | 45.4 | 162.3 | 213.6 | 10.9 | 10.8 | 37.3 | 37.9 | ||||||||||||||||
Kansas Gas | 39.6 | 37.1 | 130.4 | 155.6 | 8.7 | 8.1 | 34.8 | 35.5 | ||||||||||||||||
Nebraska Gas | 85.6 | 88.3 | 304.5 | 366.1 | 22.1 | 22.4 | 80.3 | 82.2 | ||||||||||||||||
Wyoming Gas | 39.2 | 43.9 | 144.6 | 166.4 | 10.8 | 10.8 | 37.0 | 36.4 | ||||||||||||||||
Total Revenue and Quantities Sold | $ | 385.2 | $ | 380.3 | $ | 1,269.4 | $ | 1,484.2 | 70.6 | 70.7 | 250.3 | 255.0 |
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Heating Degree Days | Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal | Actual | Variance from Normal |
Arkansas Gas (a) | 1,073 | (24)% | 1,253 | (14)% | 2,998 | (20)% | 3,197 | (17)% |
Colorado Gas | 2,049 | (10)% | 1,838 | (21)% | 5,662 | (7)% | 5,916 | (4)% |
Iowa Gas | 2,093 | (11)% | 2,054 | (16)% | 5,543 | (16)% | 5,921 | (12)% |
Kansas Gas (a) | 1,516 | (14)% | 1,638 | (10)% | 4,092 | (12)% | 4,387 | (8)% |
Nebraska Gas | 1,891 | (15)% | 1,988 | (13)% | 5,172 | (13)% | 5,579 | (8)% |
Wyoming Gas | 2,257 | (15)% | 2,432 | (3)% | 6,641 | (10)% | 7,385 | 8% |
Combined (b) | 2,015 | (12)% | 2,080 | (11)% | 5,517 | (11)% | 6,006 | (4)% |
(a) Arkansas Gas and Kansas Gas have weather normalization mechanisms that mitigate the weather impact on gross margins.
(b) The combined heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas due to its weather normalization mechanism. Arkansas Gas is partially excluded based on the weather normalization mechanism in effect from November through April.
CONFERENCE CALL AND WEBCAST
Black Hills will host a live conference call and webcast at 11 a.m. EST on Thursday, Feb. 6, 2025, to discuss its financial and operating performance.
To access the live webcast and download a copy of the investor presentation, go to the "Investor Relations" section of the Black Hills website at www.blackhillscorp.com and click on "News and Events" and then "Events & Presentation." The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. For those unable to listen to the live broadcast, a replay will be available on the company's website.
To ask a question during the live broadcast, users can access dial-in information and a personal identification number by registering for the event at https://register.vevent.com/register/BI8f4c7bc439534ef89a7c45967b67c281.
A listen-only webcast player and presentation slides can be accessed live at https://edge.media-server.com/mmc/p/hq33dood with a replay of the event available for up to one year.
ABOUT BLACK HILLS CORP.
Black Hills Corp. (NYSE:BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com, www.blackhillscorp.com/corporateresponsibility and www.blackhillsenergy.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2025 earnings guidance and long-term growth target. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2023 Annual Report on Form 10-K and other reports that we file with the SEC from time to time, and the following:
New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Relations: | |
Sal Diaz | |
Phone | 605-399-5079 |
investorrelations@blackhillscorp.com | |
Media Contact: | |
24-hour Media Assistance | 888-242-3969 |