Black Hills Corp. (NYSE: BKH) today announced financial results for
the fourth quarter of 2023. Net income available for common stock
and earnings per share for the three and twelve months ended Dec.
31, 2023, compared to the three and twelve months ended Dec. 31,
2022, were:
|
Three Months Ended Dec. 31, |
|
Twelve Months Ended Dec. 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(in millions, except per share amounts) |
Net income available for common stock |
$ |
79.6 |
|
$ |
72.5 |
|
$ |
262.2 |
|
$ |
258.4 |
Earnings per share,
Diluted |
$ |
1.17 |
|
$ |
1.11 |
|
$ |
3.91 |
|
$ |
3.97 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings of $3.91 per share for 2023 were driven primarily by
$0.63 per share from new rates and customer growth. These new
margins, combined with disciplined capital and expense management
and the benefit of other items, more than offset the year-over-year
impacts of inflation and $0.28 per share of unfavorable weather and
mark-to-market adjustments.
“I’m proud that our team delivered on our financial objectives
during an inflationary macroeconomic environment,” said Linn Evans,
president and CEO of Black Hills Corp. “We achieved our financial
targets, advanced our key strategic initiatives, executed our
capital plan, and delivered excellent operational performance. In
addition, we recently increased our quarterly dividend, extending
our track record of annual increases to 54 consecutive years.
“Our team continued to achieve positive results through
execution of our regulatory strategy. During the year, we
implemented new rates at Wyoming Electric and Rocky Mountain
Natural Gas and reached constructive settlements for rate reviews
for our gas utilities in Colorado and Wyoming. Our Arkansas rate
review, filed in late 2023, is progressing through the regulatory
process as anticipated, and we expect to file additional rate
reviews for Iowa Gas and Colorado Electric in 2024.
“I’m excited about the progress our team continues to make on
our strategic growth initiatives. In Wyoming, our Ready Wyoming
260-mile electric transmission project is underway, and our team
continues to evaluate other electric transmission and generation
needs to support our growing footprint, including data center and
blockchain growth. In South Dakota, project details are being
finalized to add 100 megawatts of utility-owned renewable wind
generation by mid-2026. In Colorado, we continue to evaluate a
robust bid response to add 400 megawatts of renewable resources by
2029 and anticipate filing a plan to Colorado regulators by
mid-year.
“We are initiating our 2024 earnings guidance range at $3.80 to
$4.00 per share, reflecting a 4% increase off our 2023 guidance of
$3.65 to $3.85. We are increasing our five-year capital plan by
$800 million to $4.3 billion for 2024 through 2028. With our track
record of success in our regulatory strategy and our portfolio of
growth initiatives, we remain confident in achieving our 4% to 6%
long-term earnings per share growth target,” concluded Evans.
FOURTH-QUARTER AND FULL-YEAR 2023 HIGHLIGHTS AND
UPDATES
Electric Utilities
- During the fourth quarter, Wyoming Electric commenced
construction on Ready Wyoming, a 260-mile electric transmission
project. The project is expected to provide customers with
long-term price stability, enhance the resiliency of the company’s
overall electric system and expand access to power markets and
renewable generation resources. Construction is expected to be
completed in multiple phases in 2024 and 2025.
- On Dec. 26, Wyoming Electric set a new winter peak load of 301
megawatts, surpassing the previous winter peak of 299 megawatts in
October 2023.
- During the third quarter, South Dakota Electric advanced its
competitive bidding process for its request for proposals to add
100 megawatts of utility-owned renewable energy resources by
mid-year 2026. For its Wyoming customers, South Dakota Electric
expects to file a certificate of public convenience and necessity
with the Wyoming Public Service Commission during the first quarter
of 2024.
- On July 31, Colorado Electric issued a request for proposals
for 400 megawatts of new renewable energy resources to be in
service between 2026 and 2029 to achieve objectives in its Clean
Energy Plan. The company received a strong response of diverse
project proposals and is currently evaluating the bids. A report
with the company’s recommended resources is due to the Colorado
Public Utilities Commission in the second quarter.
- On July 24, Wyoming Electric set a new all-time and summer peak
load of 312 megawatts, surpassing the previous peak of 294
megawatts set in July 2022.
- On March 10, Black Hills Electric Generation closed the planned
sale of the non-regulated Northern Iowa Windpower assets for net
proceeds of $18.4 million and a gain on sale of $7.7 million.
- On Jan. 26, 2023, Wyoming Electric received approval from the
Wyoming Public Service Commission of a settlement agreement for its
rate review application to recover approximately $250 million of
investments since its last rate review in 2014. The settlement
agreement provides for $8.7 million in new annual revenue based on
a capital structure of 52% equity and 48% debt and a return on
equity of 9.75%. New rates were effective March 1, 2023. The
agreement also includes approval of a new rider that will be filed
annually to recover transmission investment and expenses.
Gas Utilities
- On Jan. 31, 2024, Black Hills Energy Renewable Resources, a
non-regulated subsidiary of Black Hills Corp., acquired a renewable
natural gas production facility at a landfill in Dubuque, Iowa. The
purchase includes producing biogas wells and rights to production,
including the ability to drill additional wells. The acquisition
represents the company's first entry into the production of
RNG.
- On Jan. 17, 2024, Wyoming Gas received approval from the
Wyoming Public Service Commission of a settlement agreement for its
rate review request filed in May 2023. The settlement provides for
$13.9 million in new annual revenue based on a capital structure of
51% equity and 49% debt and a return on equity of 9.85%. The
approved settlement also provides for a four-year renewal of the
company's integrity investment rider. New rates were effective on
Feb. 1, 2024.
- On Dec. 4, Arkansas Gas filed a rate review request with the
Arkansas Public Service Commission seeking approval to recover $130
million of system investments and the inflationary impacts on
expenses to serve customers. The rate review requests $44.1 million
of new annual revenue based on a capital structure of 48% equity
and 52% debt and a return on equity of 10.5%. The company is
requesting new rates in the fourth quarter of 2024.
- On Nov. 17, Colorado Gas filed for approval from the Colorado
Public Utility Commission of a settlement agreement for its rate
review request filed in May 2023. The settlement provides for $20.2
million in new annual revenue based on a capital structure of
50.87% equity and 49.13% debt and a return on equity of 9.30%.
Interim rates will be effective on Feb. 13, 2024, subject to a
final commission order.
- On July 12, Rocky Mountain Natural Gas received approval from
the Colorado Public Utilities Commission of a settlement agreement
for its rate review filed on Oct. 7, 2022. The settlement provided
for $8.2 million in new annual revenue based on a weighted average
cost of capital of 6.93% with a capital structure that reflects an
equity range of 50% to 52%, a debt range of 50% to 48% and a return
on equity range of 9.5% to 9.7%. The settlement also shifted $8.3
million of System Safety and Integrity Rider revenues to base rates
and terminated the rider. New rates were effective on July 15,
2023.
Corporate and Other
- On Jan. 26, 2024, Black Hills’ board of directors approved a
quarterly dividend of $0.65 per share payable on March 1, 2024, to
shareholders of record at the close of business on Feb. 16, 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 and marks 82 consecutive years of
dividend payout to shareholders.
- In 2023, the company issued a total of 2.0 million shares of
new common stock for net proceeds of $118.7 million under its
at-the-market equity offering program.
- On Sept. 15, Black Hills completed a debt offering of $450
million, 6.15% senior unsecured notes due May 15, 2034. The
proceeds, along with available cash, were used to repay the $525
million, 4.25% senior unsecured notes due Nov. 30, 2023.
- On June 16, Black Hills filed a new shelf registration
statement with the Securities and Exchange Commission. In
conjunction with this filing, the company also renewed its
at-the-market equity offering program under which it may sell from
time-to-time shares of its common stock with an aggregate value of
up to $400 million. At year-end, there was $329 million of capacity
remaining under the program. The company’s previous equity offering
program was subsequently terminated.
- On March 7, Black Hills completed a public debt offering of
$350 million, 5.95% senior unsecured notes due March 15, 2028. The
proceeds from the offering were used to repay notes outstanding
under its commercial paper program and for other general corporate
purposes.
- Since the beginning of 2023, all three credit ratings agencies
covering Black Hills affirmed their ratings on the company.
- On Jan. 29, 2024, Fitch Ratings affirmed Black Hills’ issuer
default rating at BBB+ with a negative outlook.
- On Dec. 21, Moody's Investors Service affirmed Black Hills'
long-term issuer rating at Baa2 with a stable outlook.
- On Feb. 17, S&P Global Ratings affirmed Black Hills' issuer
credit rating at BBB+ with a stable outlook.
INITIATING 2024 EARNINGS GUIDANCE
Black Hills initiates its guidance for 2024 earnings per share
available for common stock to be in the range of $3.80 to $4.00
based on the follow 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 CORPORATIONCONSOLIDATED
FINANCIAL RESULTS(Minor differences may result due to
rounding) |
|
|
Three Months Ended Dec. 31, |
|
|
Twelve Months Ended Dec. 31, |
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
|
(in millions) |
|
Operating income: |
|
|
|
|
|
|
|
|
|
Electric Utilities |
$ |
58.1 |
|
$ |
48.8 |
|
|
$ |
248.8 |
|
$ |
214.3 |
|
Gas Utilities |
|
81.0 |
|
|
81.8 |
|
|
|
228.8 |
|
|
244.2 |
|
Corporate and Other |
|
(2.6 |
) |
|
(0.6 |
) |
|
|
(4.9 |
) |
|
(3.3 |
) |
Operating income |
|
136.5 |
|
|
130.0 |
|
|
|
472.7 |
|
|
455.2 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(41.9 |
) |
|
(43.7 |
) |
|
|
(167.9 |
) |
|
(161.0 |
) |
Other income (expense),
net |
|
(1.8 |
) |
|
(1.0 |
) |
|
|
(3.2 |
) |
|
1.8 |
|
Income tax (expense) |
|
(9.6 |
) |
|
(9.3 |
) |
|
|
(25.6 |
) |
|
(25.2 |
) |
Net income |
|
83.2 |
|
|
76.1 |
|
|
|
276.0 |
|
|
270.8 |
|
Net income attributable to
non-controlling interest |
|
(3.6 |
) |
|
(3.6 |
) |
|
|
(13.8 |
) |
|
(12.4 |
) |
Net income available for
common stock |
$ |
79.6 |
|
$ |
72.5 |
|
|
$ |
262.2 |
|
$ |
258.4 |
|
|
Three Months Ended Dec. 31, |
|
|
Twelve Months Ended Dec. 31, |
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Weighted average
common shares outstanding (in millions): |
|
|
|
|
|
|
Basic |
|
67.9 |
|
|
65.3 |
|
|
|
67.0 |
|
|
64.9 |
|
Diluted |
|
68.0 |
|
|
65.4 |
|
|
|
67.1 |
|
|
65.0 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
Earnings per share, Basic |
$ |
1.17 |
|
$ |
1.11 |
|
|
$ |
3.91 |
|
$ |
3.98 |
|
Earnings per share,
Diluted |
$ |
1.17 |
|
$ |
1.11 |
|
|
$ |
3.91 |
|
$ |
3.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONFERENCE CALL AND WEBCAST
Black Hills will host a live conference call and webcast at 11
a.m. EST on Thursday, Feb. 8, 2024, to discuss 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/BI989124d38c9046d58eff1d7e72077001.
A listen-only webcast player and presentation slides can be
accessed live at https://edge.media-server.com/mmc/p/otqrcbj4 with
a replay of the event available for up to one year.
ANNUAL MEETING OF SHAREHOLDERS
The company's annual meeting of shareholders will be held on
Tuesday, April 23, 2024, at 9:30 a.m. local time, at Black Hills'
company headquarters located at 7001 Mt. Rushmore Road in Rapid
City, South Dakota. The company plans to mail the Annual Report and
Proxy Statement on or about March 15, 2024, to shareholders of
record as of March 4, 2024.
USE OF NON-GAAP FINANCIAL MEASURES
Gas and Electric Utility Margin
Gas and Electric Utility margin (revenue less cost of sales) is
considered a non-GAAP financial measure due to the exclusion of
operation and maintenance expenses, depreciation and amortization
expenses, and property and production taxes from the measure. The
presentation of Gas and Electric Utility margin is intended to
supplement investors’ understanding of operating performance.
Electric Utility margin is calculated as operating revenue less
cost of fuel and purchased power. Gas Utility margin is calculated
as operating revenue less cost of gas sold. Our Gas and Electric
Utility margin is impacted by the fluctuations in power purchases
and natural gas and other fuel supply costs. However, while these
fluctuating costs impact Gas and Electric Utility margin as a
percentage of revenue, they only impact total Gas and Electric
Utility margin if the costs cannot be passed through to
customers.
Our Gas and Electric Utility margin measure may not be
comparable to other companies’ Gas and Electric Utility margin
measures. Furthermore, this measure is not intended to replace
operating income as determined in accordance with GAAP as an
indicator of operating performance.
SEGMENT PERFORMANCE SUMMARY
Operating results from our business segments for the three and
twelve months ended Dec. 31, 2023, compared to the three and
twelve months ended Dec. 31, 2022, are discussed below.
Certain lines of business in which we operate are highly
seasonal, and revenue from, and certain expenses for, such
operations may fluctuate significantly between quarterly periods.
Demand for electricity and natural gas is sensitive to seasonal
cooling, heating and industrial load requirements. In particular,
the normal peak usage season for our electric utilities is June
through August while the normal peak usage season for our gas
utilities is November through March. Significant earnings variances
can be expected between the Gas Utilities segment’s peak and
off-peak seasons. Due to this seasonal nature, our results of
operations for the three months ended Dec. 31, 2023 and 2022
are not necessarily indicative of the results of operations to be
expected for any other period or for the entire year.
All amounts are presented on a pre-tax basis unless otherwise
indicated. Minor differences in amounts may result due to
rounding.
Electric Utilities
|
Three Months Ended Dec. 31, |
|
Variance |
|
|
Twelve Months Ended Dec. 31, |
|
Variance |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
(in millions) |
|
Revenue |
$ |
215.9 |
|
$ |
230.6 |
|
$ |
(14.7 |
) |
|
$ |
865.0 |
|
$ |
900.2 |
|
$ |
(35.2 |
) |
Cost of fuel and purchased
power |
|
52.9 |
|
|
71.3 |
|
|
(18.4 |
) |
|
|
200.1 |
|
|
266.3 |
|
|
(66.2 |
) |
Electric Utility margin
(non-GAAP) |
|
163.0 |
|
|
159.3 |
|
|
3.7 |
|
|
|
664.9 |
|
|
633.9 |
|
|
31.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and
maintenance |
|
59.4 |
|
|
65.8 |
|
|
(6.4 |
) |
|
|
236.2 |
|
|
244.8 |
|
|
(8.6 |
) |
Depreciation and
amortization |
|
35.9 |
|
|
34.4 |
|
|
1.5 |
|
|
|
142.6 |
|
|
135.9 |
|
|
6.7 |
|
Taxes - property and
production |
|
9.6 |
|
|
10.3 |
|
|
(0.7 |
) |
|
|
37.3 |
|
|
38.9 |
|
|
(1.6 |
) |
Operating income |
$ |
58.1 |
|
$ |
48.8 |
|
$ |
9.3 |
|
|
$ |
248.8 |
|
$ |
214.3 |
|
$ |
34.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Dec. 31, 2023, Compared with Three
Months Ended Dec. 31, 2022
Electric Utility margin increased as a result of:
|
(in millions) |
|
New rates and rider recovery |
$ |
8.9 |
|
Weather |
|
(1.7 |
) |
Integrated Generation (a) |
|
(1.5 |
) |
Off-system excess energy
sales |
|
(1.0 |
) |
Other |
|
(1.0 |
) |
|
$ |
3.7 |
|
____________________
(a) |
Primarily driven by lower mining volumes partially offset by
increased Black Hills Colorado IPP fired-engine hours. |
|
|
Operations and maintenance expense decreased primarily due to
lower outside services expenses and lower mining and generation
expenses driven by timing of maintenance related activities and
lower fuel costs, and lower office and facilities expenses.
Depreciation and amortization was comparable to the same period
in the prior year.
Taxes - property and production were comparable to the same
period in the prior year.
Twelve Months Ended Dec. 31, 2023, Compared with Twelve
Months Ended Dec. 31, 2022
Electric Utility margin increased as a result of:
|
(in millions) |
|
New rates and rider recovery |
$ |
29.4 |
|
Wygen I revenue recovery under
business interruption insurance (a) |
|
5.0 |
|
Integrated Generation (b) |
|
3.3 |
|
Transmission services |
|
3.2 |
|
Weather |
|
(6.2 |
) |
Retail customer usage |
|
(4.4 |
) |
Other |
|
0.7 |
|
|
$ |
31.0 |
|
____________________
(a) |
In 2021, Wygen I experienced an unplanned outage which resulted in
lost revenues. A claim for these losses was submitted under our
business interruption insurance policy. During the third quarter of
2023, we recovered $5.0 million from our business interruption
insurance which was recognized as Revenue. |
(b) |
Primarily driven by favorable mining contract pricing and increased
Black Hills Colorado IPP fired-engine hours. |
|
|
Operations and maintenance expense decreased primarily due to a
one-time $7.7 million gain on the planned sale of Northern Iowa
Windpower assets, a $3.9 million gain on a strategic sale of land
in Wyoming to a customer to support continued load growth, and $2.9
million of lower outside services expenses partially offset by $8.7
million of higher employee-related expenses.
Depreciation and amortization increased primarily due to a
higher asset base driven by current year and prior year capital
expenditures.
Taxes - property and production were comparable to the same
period in the prior year.
|
Three Months Ended Dec. 31, |
|
|
Twelve Months Ended Dec. 31, |
|
Operating Statistics |
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Quantities Sold (GWh): |
|
|
|
|
|
|
|
|
|
Retail Sales |
|
1,464.1 |
|
|
1,419.8 |
|
|
|
5,758.6 |
|
|
5,672.7 |
|
Contract/Off-system/Power Marketing Wholesale |
|
394.8 |
|
|
368.0 |
|
|
|
1,317.0 |
|
|
1,297.2 |
|
Total Regulated |
|
1,858.9 |
|
|
1,787.8 |
|
|
|
7,075.6 |
|
|
6,969.9 |
|
Non-regulated |
|
18.1 |
|
|
71.4 |
|
|
|
120.6 |
|
|
293.0 |
|
Total quantities sold |
|
1,877.0 |
|
|
1,859.2 |
|
|
|
7,196.2 |
|
|
7,262.9 |
|
|
|
|
|
|
|
|
|
|
|
Contracted generated
facilities availability by fuel type: |
|
|
|
|
|
|
|
|
|
Coal |
|
93.8 |
% |
|
96.8 |
% |
|
|
93.7 |
% |
|
91.5 |
% |
Natural gas and diesel oil |
|
86.2 |
% |
|
97.0 |
% |
|
|
92.1 |
% |
|
96.1 |
% |
Wind |
|
89.8 |
% |
|
90.8 |
% |
|
|
92.5 |
% |
|
93.7 |
% |
Total availability |
|
88.9 |
% |
|
95.8 |
% |
|
|
92.6 |
% |
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
Wind capacity factor |
|
35.8 |
% |
|
37.6 |
% |
|
|
37.4 |
% |
|
34.7 |
% |
|
Three Months Ended Dec. 31, |
|
Twelve Months Ended Dec. 31, |
Degree
Days |
2023 |
2022 |
|
2023 |
2022 |
|
Actual |
Variance from Normal |
Actual |
Variance from Normal |
|
Actual |
Variance from Normal |
Actual |
Variance from Normal |
Heating Degree Days |
2,154 |
(9 |
)% |
2,565 |
9 |
% |
|
6,185 |
(1 |
)% |
6,518 |
6 |
% |
Cooling Degree Days |
3 |
(15 |
)% |
- |
(100 |
)% |
|
713 |
(15 |
)% |
1,040 |
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas Utilities
|
Three Months Ended Dec. 31, |
|
Variance |
|
|
Twelve Months Ended Dec. 31, |
|
Variance |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
(in millions) |
|
Revenue |
$ |
380.3 |
|
$ |
565.2 |
|
$ |
(184.9 |
) |
|
$ |
1,484.2 |
|
$ |
1,669.1 |
|
$ |
(184.9 |
) |
Cost of natural gas sold |
|
180.4 |
|
|
365.9 |
|
|
(185.5 |
) |
|
|
783.2 |
|
|
965.1 |
|
|
(181.9 |
) |
Gas Utility margin
(non-GAAP) |
|
199.9 |
|
|
199.4 |
|
|
0.5 |
|
|
|
701.0 |
|
|
704.0 |
|
|
(3.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and
maintenance |
|
81.9 |
|
|
82.7 |
|
|
(0.8 |
) |
|
|
328.7 |
|
|
317.3 |
|
|
11.4 |
|
Depreciation and
amortization |
|
29.6 |
|
|
27.8 |
|
|
1.8 |
|
|
|
113.9 |
|
|
114.7 |
|
|
(0.8 |
) |
Taxes - property and
production |
|
7.4 |
|
|
7.0 |
|
|
0.4 |
|
|
|
29.6 |
|
|
27.8 |
|
|
1.8 |
|
Operating income |
$ |
81.0 |
|
$ |
81.8 |
|
$ |
(0.8 |
) |
|
$ |
228.8 |
|
$ |
244.2 |
|
$ |
(15.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Dec. 31, 2023, Compared with Three
Months Ended Dec. 31, 2022
Gas Utility margin increased as a result of:
|
(in millions) |
|
New rates and rider recovery |
$ |
7.4 |
|
Mark-to-market on non-utility
natural gas commodity contracts |
|
1.9 |
|
Weather |
|
(10.2 |
) |
Other |
|
1.4 |
|
|
$ |
0.5 |
|
|
|
|
|
Operations and maintenance expense was comparable to the same
period in the prior year primarily due to lower outside services
expenses mostly offset by higher employee-related expenses.
Depreciation and amortization was comparable to the same period
in the prior year.
Taxes - property and production were comparable to the same
period in the prior year.
Twelve Months Ended Dec. 31, 2023, Compared with Twelve
Months Ended Dec. 31, 2022
Gas Utility margin decreased as a result of:
|
(in millions) |
|
New rates and rider recovery |
$ |
19.8 |
|
Retail customer growth and
demand |
|
7.6 |
|
Weather |
|
(14.5 |
) |
Prior year true-up of Winter
Storm Uri carrying costs (a) |
|
(10.3 |
) |
Mark-to-market on non-utility
natural gas commodity contracts |
|
(3.5 |
) |
Other |
|
(2.1 |
) |
|
$ |
(3.0 |
) |
____________________
(a) |
In certain jurisdictions, we have commission approval to recover
carrying costs on Winter Storm Uri regulatory assets which offset
increased interest expense. During the second quarter of 2022, we
accrued a one-time, $10.3 million true-up of these carrying costs
to reflect commission authorized rates. |
|
|
Operations and maintenance expense increased primarily due to
$14.8 million of higher employee-related expenses partially offset
by $5.0 million of lower outside services expenses.
Depreciation and amortization was comparable to the same period
in the prior year.
Taxes - property and production were comparable to the same
period in the prior year.
|
Three Months Ended Dec. 31, |
|
|
Twelve Months Ended Dec. 31, |
|
Operating Statistics |
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
Quantities Sold and Transported (Dth in millions): |
|
|
|
|
|
|
|
|
|
Distribution |
|
29.1 |
|
|
35.1 |
|
|
|
95.2 |
|
|
107.0 |
|
Transport and
Transmission |
|
41.6 |
|
|
42.9 |
|
|
|
159.8 |
|
|
160.9 |
|
Total Quantities Sold |
|
70.7 |
|
|
78.0 |
|
|
|
255.0 |
|
|
267.9 |
|
|
Three Months Ended Dec. 31, |
|
Twelve Months Ended Dec. 31, |
|
2023 |
2022 |
|
2023 |
2022 |
|
Actual |
Variance from Normal |
Actual |
Variance from Normal |
|
Actual |
Variance from Normal |
Actual |
Variance from Normal |
Heating Degree Days |
2,080 |
(11 |
)% |
2,533 |
8 |
% |
|
6,006 |
(4 |
)% |
6,536 |
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
Corporate and Other represents certain unallocated expenses for
administrative activities that support our reportable operating
segments. Corporate and Other also includes business development
activities that are not part of our operating segments and
inter-segment eliminations.
|
Three Months Ended Dec. 31, |
|
Variance |
|
|
Twelve Months Ended Dec. 31, |
|
Variance |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
(in millions) |
|
Operating (loss) |
$ |
(2.6 |
) |
$ |
(0.6 |
) |
$ |
(2.0 |
) |
|
$ |
(4.9 |
) |
$ |
(3.3 |
) |
$ |
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Dec. 31, 2023, Compared with Three
Months Ended Dec. 31, 2022
Operating (loss) was comparable to the same period in the prior
year.
Twelve Months Ended Dec. 31, 2023, Compared with Twelve
Months Ended Dec. 31, 2022
Operating (loss) was comparable to the same period in the prior
year.
Consolidated Interest Expense, Other Income and Income
Tax Expense
|
Three Months Ended Dec. 31, |
|
Variance |
|
|
Twelve Months Ended Dec. 31, |
|
Variance |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
2023 |
|
2022 |
|
2023 vs. 2022 |
|
|
(in millions) |
|
Interest expense, net |
$ |
(41.9 |
) |
$ |
(43.7 |
) |
$ |
1.8 |
|
|
$ |
(167.9 |
) |
$ |
(161.0 |
) |
$ |
(6.9 |
) |
Other income (expense),
net |
|
(1.8 |
) |
|
(1.0 |
) |
|
(0.8 |
) |
|
|
(3.2 |
) |
|
1.8 |
|
|
(5.0 |
) |
Income tax (expense) |
|
(9.6 |
) |
|
(9.3 |
) |
|
(0.3 |
) |
|
|
(25.6 |
) |
|
(25.2 |
) |
|
(0.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Dec. 31, 2023, Compared with Three
Months Ended Dec. 31, 2022
Interest expense, net was comparable to the same period in the
prior year.
Other (expense), net was comparable to the same period in the
prior year.
Income tax (expense) and the effective tax rate were comparable
to the same period in the prior year.
Twelve Months Ended Dec. 31, 2023, Compared with Twelve
Months Ended Dec. 31, 2022
Interest expense, net increased due to higher interest rates
partially offset by increased interest income on higher cash and
cash equivalents balances.
Other (expense), net increased primarily due to higher benefit
plan non-service costs driven by higher discount rates and higher
costs for our non-qualified deferred compensation plan which were
driven by market performance.
Income tax (expense) and the effective tax rate were comparable
to the same period in the prior year. The effective tax rate was
8.5% for both 2023 and 2022. The effective tax rate was comparable
primarily due to a $8.2 million tax benefit from a current year
Nebraska income tax rate decrease offset by $6.5 million of lower
tax benefits from various current and prior year state tax rate
changes and $3.6 million of lower wind PTCs resulting from the
March 2023 sale of Northern Iowa Windpower assets.
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 1.33 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 presentation 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 presentation 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 2024
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
2022 Annual Report on Form 10-K and other reports that we file with
the SEC from time to time, and the following:
- The accuracy of our assumptions on which our earnings guidance
and long-term growth targets are based;
- Our ability to obtain adequate cost recovery for our utility
operations through regulatory proceedings and favorable rulings on
periodic applications to recover costs for capital additions, plant
retirements and decommissioning, fuel, transmission, purchased
power, and other operating costs and the timing in which new rates
would go into effect;
- Our ability to complete our capital program in a cost-effective
and timely manner;
- Our ability to execute on our strategy;
- Our ability to successfully execute our financing plans;
- The effects of changing interest rates;
- Our ability to achieve our greenhouse gas emissions intensity
reduction goals;
- Board of Directors’ approval of any future quarterly
dividends;
- The impact of future governmental regulation;
- Our ability to overcome the impacts of supply chain disruptions
on availability and cost of materials;
- The effects of inflation and volatile energy prices; and
- Other factors discussed from time to time in our filings with
the SEC.
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.
CONSOLIDATING INCOME STATEMENTS
|
(Minor differences
may result due to rounding.) |
|
|
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 - property and
production |
|
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 |
|
|
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 - property and
production |
|
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 |
|
|
Consolidating Income Statement |
|
Three Months Ended
Dec. 31, 2022 |
Electric Utilities |
|
Gas Utilities |
|
Corporate and Other |
|
Total |
|
|
(in millions) |
|
Revenue |
$ |
230.6 |
|
$ |
565.2 |
|
$ |
(4.4 |
) |
$ |
791.4 |
|
|
|
|
|
|
|
|
|
|
Fuel, purchased power and cost
of natural gas sold |
|
71.3 |
|
|
365.9 |
|
|
(0.2 |
) |
|
436.9 |
|
Operations and
maintenance |
|
65.8 |
|
|
82.7 |
|
|
(3.6 |
) |
|
144.9 |
|
Depreciation and
amortization |
|
34.4 |
|
|
27.8 |
|
|
0.1 |
|
|
62.3 |
|
Taxes - property and
production |
|
10.3 |
|
|
7.0 |
|
|
- |
|
|
17.3 |
|
Operating income |
$ |
48.8 |
|
$ |
81.8 |
|
$ |
(0.6 |
) |
$ |
130.0 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
(43.7 |
) |
Other income (expense),
net |
|
|
|
|
|
|
|
(1.0 |
) |
Income tax benefit
(expense) |
|
|
|
|
|
|
|
(9.3 |
) |
Net income |
|
|
|
|
|
|
|
76.1 |
|
Net income attributable to
non-controlling interest |
|
|
|
|
|
|
|
(3.6 |
) |
Net income available for
common stock |
|
|
|
|
|
|
$ |
72.5 |
|
|
Consolidating Income Statement |
|
Twelve Months Ended
Dec. 31, 2022 |
Electric Utilities |
|
Gas Utilities |
|
Corporate and Other |
|
Total |
|
|
(in millions) |
|
Revenue |
$ |
900.2 |
|
$ |
1,669.1 |
|
$ |
(17.5 |
) |
$ |
2,551.8 |
|
|
|
|
|
|
|
|
|
|
Fuel, purchased power and cost
of natural gas sold |
|
266.3 |
|
|
965.1 |
|
|
(0.8 |
) |
|
1,230.6 |
|
Operations and
maintenance |
|
244.8 |
|
|
317.3 |
|
|
(13.7 |
) |
|
548.4 |
|
Depreciation and
amortization |
|
135.9 |
|
|
114.7 |
|
|
0.3 |
|
|
250.9 |
|
Taxes - property and
production |
|
38.9 |
|
|
27.8 |
|
|
- |
|
|
66.7 |
|
Operating income |
$ |
214.3 |
|
$ |
244.2 |
|
$ |
(3.3 |
) |
$ |
455.2 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
|
|
|
(161.0 |
) |
Other income (expense),
net |
|
|
|
|
|
|
|
1.8 |
|
Income tax benefit
(expense) |
|
|
|
|
|
|
|
(25.2 |
) |
Net income |
|
|
|
|
|
|
|
270.8 |
|
Net income attributable to
non-controlling interest |
|
|
|
|
|
|
|
(12.4 |
) |
Net income available for
common stock |
|
|
|
|
|
|
$ |
258.4 |
|
Investor Relations: |
|
Jerome E. Nichols |
|
Phone |
605-721-1171 |
Email |
investorrelations@blackhillscorp.com |
|
|
Media
Contact: |
|
24-hour Media Assistance |
888-242-3969 |
Black Hills (NYSE:BKH)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Black Hills (NYSE:BKH)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024