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There are some utilities that Wall Street knows quite well because they are so large and influential, like NextEra Energy (NEE 1.42%) or Southern Company (SO 1.32%). Then there's a company like Black Hills (BKH 0.10%) that few will recognize. That's too bad because Black Hills still has a generous yield and a way more impressive dividend history than either NextEra or Southern.Here's why Black Hills stock might be the ultimate place to invest $1,000 (or more) right now, even after an impressive utility sect ...

Laura Starks is the founder and CEO of Starks Energy Economics, LLC (since 2007). She has a degree in chemical engineering and an MBA with a concentration in finance which she has used for many years to invest personally and to share her ideas about energy companies. Her coverage includes utilities, independent power producers, energy service companies and contractors, a few petrochemical companies, and all sectors of oil and natural gas: upstream, midstream, and downstreamAnalyst’s Disclosure: I/we have a ...

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.35 for Q3 2024, down from $0.67 in Q3 2023, primarily due to higher operating expenses and unplanned generation outages [21][22] - Year-to-date EPS grew 4% compared to the same period last year, excluding prior year one-time events [28] Business Line Data and Key Metrics Changes - New margins contributed $0.16 per share, with $0.10 from electric utilities and $0.05 from gas utilities, offset by unplanned generation outages and lower off-system sales [22][24] - Operating and maintenance (O&M) expenses increased by $0.23 per share, driven by higher insurance premiums and costs associated with unplanned outages [23] Market Data and Key Metrics Changes - The company is on track to deliver on its earnings guidance range of $3.80 to $4 per share for the year, despite challenges from mild weather and increased insurance expenses [14][20] - The company anticipates that earnings from data center customers will grow from 5% of total EPS in 2023 to over 10% by 2028 [18][63] Company Strategy and Development Direction - The company is focused on a customer-centric strategy, emphasizing reliability and safety in energy delivery, and is advancing regulatory and growth initiatives [7][12] - A capital investment plan of $4.3 billion over five years is in place, with $800 million planned for 2024, aimed at enhancing energy infrastructure and customer service [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term EPS growth targets of 4% to 6%, supported by strong growth opportunities and effective execution of initiatives [15][20] - The company is actively pursuing regulatory approvals for new rates and has successfully implemented new customer rates in Arkansas [13][34] Other Important Information - The company has maintained a strong financial position, achieving a net debt to capitalization target of 55% and a BBB+ credit rating [12][29] - The company has a 54-year track record of increasing dividends, which is a key component of its long-term value strategy for shareholders [31] Q&A Session Summary Question: Details on unplanned outages and O&M impact - Management explained that unplanned outages were due to component failures, with a financial impact of $0.03 and $0.05 for the quarter and year, respectively [44][46] Question: Guidance for the year - Management reiterated the earnings guidance range but did not specify where they might be trending within that range [47] Question: Impact of incoming administration on crypto and blockchain - Management stated that their strategy is customer-focused and agnostic to federal policy, but they see potential benefits from serving data centers [49][50] Question: Cadence of new loads from large customers - Management indicated that they have a good understanding of their anchor tenants' growth patterns and expect gradual increases in load from data centers [52][52] Question: O&M management and fourth-quarter expectations - Management highlighted their focus on managing O&M costs effectively to cover unexpected challenges and maintain guidance for earnings growth [56][58] Question: Future data center growth opportunities - Management confirmed that growth in data center contributions to EPS is primarily driven by existing anchor tenants, with additional opportunities being explored [63][64]

| --- | --- | --- | --- | |----------------------------------------|-------|-------|-------| | | | | | | | | | | | RESILIENT. | | | | | RELIABLE. READY. | | | | | 2024 Third Quarter Review Nov. 7, 2024 | | | | | | | | | Forward-looking Statements COMPANY INFORMATION This presentation includes "forward-looking statements" as defined by the Securities and Exchange Commission. We make these forwardlooking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Ref ...

Financial Performance - Net income available for common stock was $24.4 million in Q3 2024, a decrease of $21.0 million from $45.4 million in Q3 2023 [92]. - Total revenue for Electric Utilities in Q3 2024 was $232.5 million, a decrease of 4.8% compared to $237.3 million in Q3 2023 [96]. - Total revenue for gas utilities was $173.6 million in Q3 2024, slightly down from $174.3 million in Q3 2023, a decrease of 0.7% [107]. - Net income for the nine months ended September 30, 2024, was $182.6 million, down from $192.7 million in 2023, reflecting a variance of $10.1 million [118]. - Operating income for the three months ended September 30, 2024, was a loss of $0.2 million, compared to a loss of $0.6 million in the same period of 2023, showing an improvement of $0.4 million [113]. Operating Income - Electric Utilities' operating income decreased by $17.9 million in Q3 2024 compared to Q3 2023, primarily due to higher operating expenses and unplanned generation outages [93]. - Gas Utilities' operating income increased by $16.9 million in the first nine months of 2024 compared to the same period in 2023, driven by new rates and rider recovery [93]. - Operating income for gas utilities was $10.9 million in Q3 2024, down from $15.4 million in Q3 2023, a decrease of 29.2% [107]. Revenue and Sales - Total revenue for the nine months ended September 30, 2024, was $659.8 million, an increase of 10.7% from $649.1 million in the same period of 2023 [96]. - Residential revenue increased to $66.1 million in Q3 2024, up from $63.1 million in Q3 2023, reflecting a growth of 4.7% [99]. - The company reported a total of 1,907.3 GWh sold in the nine months ended September 30, 2024, compared to 1,861.6 GWh in the same period of 2023 [100]. - Total generated electricity increased to 1,501.9 GWh in Q3 2024, up from 1,383.7 GWh in Q3 2023, representing a growth of 8.5% [103]. - Total purchased electricity decreased to 516.1 GWh in Q3 2024, down from 575.6 GWh in Q3 2023, a decline of 10.3% [103]. Expenses and Costs - Net interest expense increased by $4.2 million in Q3 2024 compared to Q3 2023, primarily due to higher interest rates [93]. - Operations and maintenance expenses increased by $11.2 million in Q3 2024, primarily due to unplanned generation outages and higher office-related expenses [97]. - The total cost of fuel and purchased power for Electric Utilities was $54.9 million in Q3 2024, down from $55.4 million in Q3 2023 [96]. - The total cost of natural gas sold decreased to $39.7 million in Q3 2024 from $46.9 million in Q3 2023, a reduction of 15.4% [107]. Environmental Initiatives - The company reported a 27% reduction in greenhouse gas emissions from its natural gas distribution system since 2022, aiming for net zero emissions by 2035 [90]. - The company aims to reduce electric emissions intensity by 40% by 2030 and 70% by 2040 compared to 2005 levels [90]. - The EPA's new rules on CO2 emissions from the power sector are being evaluated for their impact on the company's operations and costs [87]. Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2024, were $530.5 million, an increase of $108.7 million compared to $421.8 million in 2023 [119]. - The company plans to invest $100 million in incremental projects in 2025, with projections of $400 million in 2026 [124]. - Capital expenditures for the nine months ended September 30, 2024, totaled $566 million, with a forecast of $840 million for 2025 and $1,263 million for 2026 [124]. Cash Flow and Financing - Net cash provided by operating activities was $566.1 million for the nine months ended September 30, 2024, down $189.9 million from $756.0 million in 2023 [118]. - Net cash used in investing activities was $532.0 million for the nine months ended September 30, 2024, which is $128.2 million higher than the same period in 2023 [119]. - Net cash used in financing activities was $107.5 million for the nine months ended September 30, 2024, an increase of $328.8 million compared to $221.3 million in 2023 [120]. Ratings and Outlook - As of September 30, 2024, S&P and Fitch rated the company BBB+ with a Stable outlook, while Moody's rated it Baa2 with a Stable outlook, and Fitch revised its outlook to Negative [122][123]. Dividends - Dividends paid on common stock amounted to $135.8 million for the nine months ended September 30, 2024, equating to $0.65 per share, with an annual dividend declared at $2.60 per share [126].

Black Hills Corp. Reaffirms 2024 Earnings Guidance and Reports 2024 Third-Quarter Results • Reaffirms 2024 earnings guidance range of $3.80 to $4.00 per share • Received approval of and implemented new customer rates at Arkansas natural gas utility • Filed settlement agreement for new customer rates at Iowa natural gas utility • Completed key financing activities for 2024 and achieved long-term capitalization target RAPID CITY, S.D. — Nov. 6, 2024 — Black Hills Corp. (NYSE: BKH) today announced financial re ...

HOT SPRINGS, SD, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Last Monday, U.S. Representative Dusty Johnson (R-SD) spent the afternoon with the dedicated crew of Black Hills Life Flight in Hot Springs to gain a firsthand understanding of the lifesaving care they provide across the region. "Words on a page are one way to learn, but I’m not sure anything is as good a teacher as actually ‘doing,” said Johnson.  “Actually, being with these hard-working men and women, who every single day are just trying to save lives, ha ...

Black Hills is a Dividend King, NextEra is a dividend grower, and Eversource Energy has a historically high yield.If you like boring dividend stocks, then looking at utilities is a good place to start. But all utilities aren't the same, which is why you'll find Black Hills (BKH -2.15%), NextEra Energy (NEE -2.40%), and Eversource Energy (ES -3.31%) all worth a closer look as November gets started. The big story here, however, is that each one of these utility companies is attractive for a very different rea ...

The average utility is yielding 2.7%; this duo is yielding well north of that figure and each sells for less than $200 a share. The utility sector has had a very good run, with the Utilities Select Sector SPDR ETF (XLU -0.89%) up roughly 35% over the past year. Utilities have actually done just a little better than the S&P 500 index over that span. That's good news for utility investors who bought a year ago, but if you are an income investor looking at utilities now, there's a small problem. The sector is ...