UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): Feb. 7, 2024 |
Black Hills Corporation
(Exact name of Registrant as Specified in Its Charter)
South Dakota |
001-31303 |
46-0458824 |
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(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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7001 Mount Rushmore Road |
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Rapid City, South Dakota |
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57702 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: 605 721-1700 |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Common stock of $1.00 par value |
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BKH |
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The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On Feb. 7, 2024, Black Hills Corporation ("the Company") issued a press release announcing financial results for the fourth quarter of 2023.
The press release is attached as Exhibit 99 to this Form 8-K. This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. |
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Description |
99 |
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104 |
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Cover Page Interactive Data File (formatted as the inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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BLACK HILLS CORPORATION |
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Date: |
Feb. 7, 2024 |
By: |
/s/ Kimberly F. Nooney |
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Kimberly F. Nooney |
Black Hills Corp. Reports 2023 Fourth-Quarter and Full-Year Results and Initiates 2024 Earnings Guidance
RAPID CITY, S.D. — Feb. 7, 2024 — 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:
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Three Months Ended Dec. 31, |
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Twelve Months Ended Dec. 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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(in millions, except per share amounts) |
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Net income available for common stock |
$ |
79.6 |
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$ |
72.5 |
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$ |
262.2 |
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$ |
258.4 |
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Earnings per share, Diluted |
$ |
1.17 |
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$ |
1.11 |
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$ |
3.91 |
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$ |
3.97 |
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Earnings of $3.91 per share for 2023 compared to $3.97 per share in 2022 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
Gas Utilities
2
Corporate and Other
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:
3
BLACK HILLS CORPORATION
CONSOLIDATED FINANCIAL RESULTS
(Minor differences may result due to rounding)
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Three Months Ended Dec. 31, |
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Twelve Months Ended Dec. 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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(in millions) |
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Operating income: |
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Electric Utilities |
$ |
58.1 |
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$ |
48.8 |
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$ |
248.8 |
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$ |
214.3 |
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Gas Utilities |
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81.0 |
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81.8 |
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228.8 |
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244.2 |
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Corporate and Other |
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(2.6 |
) |
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(0.6 |
) |
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(4.9 |
) |
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(3.3 |
) |
Operating income |
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136.5 |
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130.0 |
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472.7 |
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455.2 |
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Interest expense, net |
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(41.9 |
) |
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(43.7 |
) |
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(167.9 |
) |
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(161.0 |
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Other income (expense), net |
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(1.8 |
) |
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(1.0 |
) |
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(3.2 |
) |
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1.8 |
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Income tax (expense) |
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(9.6 |
) |
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(9.3 |
) |
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(25.6 |
) |
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(25.2 |
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Net income |
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83.2 |
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76.1 |
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276.0 |
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270.8 |
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Net income attributable to non-controlling interest |
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(3.6 |
) |
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(3.6 |
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(13.8 |
) |
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(12.4 |
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Net income available for common stock |
$ |
79.6 |
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$ |
72.5 |
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$ |
262.2 |
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$ |
258.4 |
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Three Months Ended Dec. 31, |
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Twelve Months Ended Dec. 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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Weighted average common shares outstanding (in millions): |
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Basic |
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67.9 |
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65.3 |
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67.0 |
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64.9 |
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Diluted |
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68.0 |
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65.4 |
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67.1 |
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65.0 |
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Earnings per share: |
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Earnings per share, Basic |
$ |
1.17 |
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$ |
1.11 |
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$ |
3.91 |
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$ |
3.98 |
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Earnings per share, Diluted |
$ |
1.17 |
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$ |
1.11 |
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$ |
3.91 |
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$ |
3.97 |
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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.
4
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
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Three Months Ended Dec. 31, |
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Variance |
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Twelve Months Ended Dec. 31, |
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Variance |
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2023 |
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2022 |
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2023 vs. 2022 |
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2023 |
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2022 |
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2023 vs. 2022 |
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(in millions) |
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Revenue |
$ |
215.9 |
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$ |
230.6 |
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$ |
(14.7 |
) |
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$ |
865.0 |
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$ |
900.2 |
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$ |
(35.2 |
) |
Cost of fuel and purchased power |
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52.9 |
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71.3 |
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(18.4 |
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200.1 |
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266.3 |
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(66.2 |
) |
Electric Utility margin (non-GAAP) |
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163.0 |
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159.3 |
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3.7 |
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664.9 |
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633.9 |
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31.0 |
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Operations and maintenance |
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59.4 |
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65.8 |
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(6.4 |
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236.2 |
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244.8 |
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(8.6 |
) |
Depreciation and amortization |
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35.9 |
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34.4 |
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1.5 |
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142.6 |
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135.9 |
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6.7 |
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Taxes - property and production |
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9.6 |
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10.3 |
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(0.7 |
) |
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37.3 |
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38.9 |
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(1.6 |
) |
Operating income |
$ |
58.1 |
|
$ |
48.8 |
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$ |
9.3 |
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|
$ |
248.8 |
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$ |
214.3 |
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$ |
34.5 |
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Three Months Ended Dec. 31, 2023, Compared with Three Months Ended Dec. 31, 2022
Electric Utility margin increased as a result of:
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(in millions) |
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New rates and rider recovery |
$ |
8.9 |
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Weather |
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(1.7 |
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Integrated Generation (a) |
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(1.5 |
) |
Off-system excess energy sales |
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(1.0 |
) |
Other |
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(1.0 |
) |
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$ |
3.7 |
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____________________
5
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:
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(in millions) |
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New rates and rider recovery |
$ |
29.4 |
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Wygen I revenue recovery under business interruption insurance (a) |
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5.0 |
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Integrated Generation (b) |
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3.3 |
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Transmission services |
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3.2 |
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Weather |
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(6.2 |
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Retail customer usage |
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(4.4 |
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Other |
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0.7 |
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$ |
31.0 |
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____________________
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.
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Three Months Ended Dec. 31, |
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Twelve Months Ended Dec. 31, |
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Operating Statistics |
2023 |
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2022 |
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2023 |
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2022 |
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Quantities Sold (GWh): |
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Retail Sales |
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1,464.1 |
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1,419.8 |
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5,758.6 |
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5,672.7 |
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Contract/Off-system/Power Marketing Wholesale |
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394.8 |
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368.0 |
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1,317.0 |
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1,297.2 |
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Total Regulated |
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1,858.9 |
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1,787.8 |
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7,075.6 |
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6,969.9 |
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Non-regulated |
|
18.1 |
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|
71.4 |
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|
|
120.6 |
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|
293.0 |
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Total quantities sold |
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1,877.0 |
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1,859.2 |
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7,196.2 |
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7,262.9 |
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Contracted generated facilities availability by fuel type: |
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Coal |
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93.8 |
% |
|
96.8 |
% |
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|
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 |
% |
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|
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Wind capacity factor |
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35.8 |
% |
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37.6 |
% |
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|
37.4 |
% |
|
34.7 |
% |
6
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Three Months Ended Dec. 31, |
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Twelve Months Ended Dec. 31, |
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Degree Days |
2023 |
2022 |
|
2023 |
2022 |
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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 |
|
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|
2023 |
|
2022 |
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2023 vs. 2022 |
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|
2023 |
|
2022 |
|
2023 vs. 2022 |
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(in millions) |
|
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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 |
) |
____________________
7
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.
8
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.
9
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:
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.
10
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 |
|
11
|
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 |
investorrelations@blackhillscorp.com |
|
|
|
Media Contact: |
|
24-hour Media Assistance |
888-242-3969 |
12