Some companies are just boring. They operate in dull industries where not much excitement happens. Because of that, they slowly plod along, often paying attractive dividends along the way. However, slow and steady can win over the long term. That's why some Fool.com contributors are rather excited about the total return potential of Black Hills Corporation (BKH -0.83%), Enbridge (ENB 0.60%), and Enterprise Products Partners (EPD 0.78%). While they operate in sleepy sectors of the energy industry, they have ...

RELIABLE COMPANY INFORMATION RESILIENT READY. ck Hills Corporation Ready Forward-looking Statements P.O. Box 1400 Rapid City, SD 57709-1400 NYSE Ticker: BKH www.blackhillscorp.com The accuracy of our assumptions on which our earnings guidance and growth target are based; Company Contacts 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; Our ability to achieve our greenhouse gas e ...

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.67 for Q3 2023, up from $0.54 in the same period last year, driven by new rates, solid expense management, and higher-than-planned interest income [17][18] - The net debt to total capitalization improved by 300 basis points from 60.8% at year-end 2022 to 57.8% as of September 30, 2023 [22] - The company expects to deliver results at the top end of its 2023 earnings guidance range, with a long-term EPS growth target of 4% to 6% [14][54] Business Line Data and Key Metrics Changes - Electric utility margins improved primarily due to $0.18 per share from new rates and rider recovery, and $0.09 from transmission services and off-system energy sales [27] - Gas utilities benefited from $0.12 of new rates and rider recovery margin, and $0.04 from residential growth and usage, but faced challenges from weather impacts and changes in natural gas commodity contracts [20][21] Market Data and Key Metrics Changes - The company experienced a 10th consecutive year of new peak customer loads for its Wyoming Electric system, with a peak of 312 megawatts, reflecting a nearly 70% increase over the last decade [11] - The company is optimistic about growth in the Cheyenne region, particularly in data centers and blockchain industries [12][51] Company Strategy and Development Direction - The company is focused on three key objectives: delivering earnings in line with guidance, strengthening the balance sheet, and advancing regulatory plans and growth initiatives [9][10] - A five-year capital plan totaling $3.5 billion has been established, with ongoing updates expected in the Q4 earnings call [15][48] - The company is pursuing a strategic initiative to add 500 megawatts of renewable resources to its systems by 2030 [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the top end of the earnings guidance for 2023, citing strong operational performance and effective cost management [54] - The company is aware of macroeconomic challenges, including rising interest rates and inflation, and has incorporated these factors into its growth projections [60][61] Other Important Information - The company has been recognized for its reliability, with all three electric utilities acknowledged as among the most reliable in the country [9] - Wildfire mitigation efforts are a priority, with a comprehensive approach to managing risks and ensuring system reliability [37][39] Q&A Session Summary Question: Can you discuss the 2024 outlook and confidence in growth? - Management reaffirmed a growth target of 4% to 6% based on 2023 guidance, considering macroeconomic challenges and capital growth opportunities [57][60] Question: What updates can be expected in Q4 regarding projects? - Management indicated that updates on various long-term initiatives, including the Clean Energy Plan and resource additions, will be provided in Q4 [63][66] Question: Are there any other rate cases planned for 2024? - Management confirmed ongoing rate reviews in Wyoming, Colorado, and Arkansas, with an expectation of filing about three rate reviews per year [79][81]

[PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated financial statements for Black Hills Corporation, including income, balance sheets, cash flows, and equity, with condensed notes [Note 2. Regulatory Matters](index=14&type=section&id=Note%202.%20Regulatory%20Matters) Details regulatory assets and liabilities, including deferred costs and recent rate review activities for various gas utilities Regulatory Assets and Liabilities (in thousands) | Category | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total regulatory assets** | $504,859 | $652,981 | | Less current regulatory assets | ($191,746) | ($260,312) | | **Regulatory assets, non-current** | **$313,113** | **$392,669** | | **Total regulatory liabilities** | $562,957 | $518,573 | | Less current regulatory liabilities | ($93,988) | ($46,013) | | **Regulatory liabilities, non-current** | **$468,969** | **$472,560** | - On July 12, 2023, the CPUC approved a settlement for RMNG's rate review, expected to generate **$8.2 million** in new annual revenue with new rates effective July 15, 2023[72](index=72&type=chunk) - On May 9, 2023, Colorado Gas filed a rate review seeking **$27 million** in new annual revenue, with a decision expected in Q1 2024[96](index=96&type=chunk) - On October 13, 2023, Wyoming Gas filed a settlement agreement for a general rate increase, expected to generate **$13.9 million** in new annual revenue, with new rates effective January 1, 2024, subject to WPSC approval[114](index=114&type=chunk) [Note 3. Commitments, Contingencies and Guarantees](index=15&type=section&id=Note%203.%20Commitments%2C%20Contingencies%20and%20Guarantees) Discusses significant legal and financial contingencies, including a reversed lawsuit award and an insurance recovery - Regarding the GT Resources, LLC lawsuit, a **$41 million** jury award against BHC was reversed on appeal on October 19, 2023, with the case remanded for retrial on a narrower issue, which the company believes has no merit[99](index=99&type=chunk) - In Q3 2023, the company recovered **$5.0 million** from a business interruption insurance claim related to a 2021 unplanned outage at the Wygen I facility, recognized as Revenue[100](index=100&type=chunk) [Note 4. Revenue](index=16&type=section&id=Note%204.%20Revenue) Disaggregates revenue by segment and customer type, reporting **$1.74 billion** in total revenues for the nine months ended September 30, 2023 Revenue by Segment (Nine Months Ended Sep 30, 2023, in thousands) | Segment | Revenue from Contracts with Customers | Other Revenues | Total Revenues | | :--- | :--- | :--- | :--- | | Electric Utilities | $639,096 | $10,015 | $649,111 | | Gas Utilities | $1,091,721 | $12,200 | $1,103,921 | | Inter-segment Elim. | ($13,464) | - | ($13,464) | | **Total** | **$1,717,353** | **$22,215** | **$1,739,568** | Revenue by Segment (Nine Months Ended Sep 30, 2022, in thousands) | Segment | Revenue from Contracts with Customers | Other Revenues | Total Revenues | | :--- | :--- | :--- | :--- | | Electric Utilities | $664,822 | $4,764 | $669,586 | | Gas Utilities | $1,100,882 | $2,967 | $1,103,849 | | Inter-segment Elim. | ($12,743) | ($315) | ($13,058) | | **Total** | **$1,752,961** | **$7,416** | **$1,760,377** | [Note 5. Financing](index=17&type=section&id=Note%205.%20Financing) Details financing activities, including **$800 million** in debt offerings, ATM equity raises, and compliance with debt covenants - Completed a public debt offering of **$450 million**, 6.15% senior unsecured notes due 2034 on September 15, 2023[122](index=122&type=chunk) - Completed a public debt offering of **$350 million**, 5.95% five-year senior unsecured notes due 2028 on March 7, 2023[123](index=123&type=chunk) At-the-Market (ATM) Program Activity (Nine Months Ended Sep 30) | Year | Net Proceeds (millions) | Shares Issued | Average Price per Share | | :--- | :--- | :--- | :--- | | 2023 | $107.7 | 1,812,624 | $60.02 | | 2022 | $20.2 | 272,592 | $74.84 | - As of September 30, 2023, the company was in compliance with its debt covenants, with a Consolidated Indebtedness to Capitalization Ratio of **0.61 to 1.00**, below the maximum of **0.65 to 1.00**[107](index=107&type=chunk) [Note 7. Risk Management and Derivatives](index=19&type=section&id=Note%207.%20Risk%20Management%20and%20Derivatives) Outlines market risk exposures and mitigation strategies using commission-approved hedging programs with various derivative instruments - The company uses derivative instruments such as natural gas futures, options, and swaps to hedge against natural gas price volatility for its utility customers[6](index=6&type=chunk) - As of September 30, 2023, **$3.2 million** of net losses related to interest rate swaps and commodity derivatives are expected to be reclassified from AOCI into earnings within the next 12 months[24](index=24&type=chunk) Net Long Derivative Positions (as of Sep 30, 2023) | Instrument | Notional Amounts (MMBtus) | Maximum Term (months) | | :--- | :--- | :--- | | Natural gas futures purchased | 1,730,000 | 6 | | Natural gas options purchased, net | 7,780,000 | 6 | | Natural gas basis swaps purchased | 1,730,000 | 6 | | Natural gas over-the-counter swaps, net | 5,610,000 | 24 | [Note 8. Fair Value Measurements](index=22&type=section&id=Note%208.%20Fair%20Value%20Measurements) Describes the three-level hierarchy for fair value measurements, classifying commodity derivatives and long-term debt as Level 2 Fair Value of Derivative Instruments (Gross, in thousands) - As of Sep 30, 2023 | Category | Level 1 | Level 2 | Level 3 | Net Total | | :--- | :--- | :--- | :--- | :--- | | **Assets:** | | | | | | Commodity derivatives - Gas Utilities | $ - | $5,183 | $ - | $126 | | **Liabilities:** | | | | | | Commodity derivatives - Gas Utilities | $ - | $4,809 | $ - | $2,211 | Fair Value of Long-Term Debt (in thousands) | Date | Carrying Amount | Fair Value (Level 2) | | :--- | :--- | :--- | | Sep 30, 2023 | $4,924,510 | $4,481,989 | | Dec 31, 2022 | $4,132,340 | $3,760,848 | [Note 9. Other Comprehensive Income](index=24&type=section&id=Note%209.%20Other%20Comprehensive%20Income) Details components of Accumulated Other Comprehensive Income (AOCI), showing an improvement from a **$15.6 million** loss to a **$12.9 million** loss Changes in AOCI (in thousands) - Nine Months Ended Sep 30, 2023 | Component | Balance at Dec 31, 2022 | OCI before reclass. | Reclassifications | Balance at Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Interest Rate Swaps | $(8,255) | - | $1,649 | $(6,606) | | Commodity Derivatives | $(1,200) | $(937) | $1,881 | $(256) | | Employee Benefit Plans | $(6,112) | - | $67 | $(6,045) | | **Total AOCI** | **$(15,567)** | **$(937)** | **$3,597** | **$(12,907)** | - For the nine months ended September 30, 2023, total reclassifications from AOCI to Net Income were a positive **$3.6 million**, primarily from gains on cash flow hedges[19](index=19&type=chunk) [Note 10. Employee Benefit Plans](index=25&type=section&id=Note%2010.%20Employee%20Benefit%20Plans) Outlines net periodic expense and contributions for employee benefit plans, totaling approximately **$8.0 million** for the first nine months of 2023 Net Periodic Expense (Benefit) (in thousands) - Nine Months Ended Sep 30 | Plan | 2023 | 2022 | | :--- | :--- | :--- | | Defined Benefit Pension Plan | $2,411 | $1,685 | | Supplemental Non-qualified Plans | $2,738 | $(1,185) | | Postretirement Healthcare Plan | $2,780 | $2,177 | Plan Contributions (in thousands) | Plan | Made in First 9 Mos. 2023 | Anticipated for 2024 | | :--- | :--- | :--- | | Defined Benefit Pension Plan | $ - | $ - | | Postretirement Healthcare Plan | $3,690 | $4,808 | | Supplemental Plans | $1,673 | $2,417 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and results of operations, covering operating results, liquidity, and capital resources [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Net income available for common stock was **$182.5 million** for the nine months ended September 30, 2023, a decrease from the prior year Consolidated Financial Highlights (Nine Months Ended Sep 30) | Metric (in thousands, except EPS) | 2023 | 2022 | | :--- | :--- | :--- | | Operating Income | $336,170 | $325,221 | | Net Income Available for Common Stock | $182,520 | $185,914 | | Earnings Per Share, Diluted | $2.74 | $2.86 | - **Q3 2023 vs Q3 2022:** - Electric Utilities operating income increased by **$13.5 million**, driven by an insurance recovery, a land sale gain, and new rates[181](index=181&type=chunk) - Gas Utilities operating income increased by **$4.8 million** due to new rates and lower operating expenses[181](index=181&type=chunk) - **Nine Months 2023 vs 2022:** - Electric Utilities operating income increased by **$25.2 million**, driven by new rates, asset sale gains, and an insurance recovery[182](index=182&type=chunk) - Gas Utilities operating income decreased by **$14.6 million**, due to higher expenses and a prior-year one-time true-up of carrying costs[182](index=182&type=chunk)[201](index=201&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operating activities increased to **$756.1 million**, with investing activities using **$403.8 million** and financing providing **$221.3 million** Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $756,052 | $494,287 | | Net Cash used in Investing Activities | ($403,785) | ($466,321) | | Net Cash from Financing Activities | $221,250 | ($24,684) | - The **$261.8 million** increase in operating cash flow was primarily driven by higher collections on pass-through revenues, lower natural gas inventory levels, and higher recoveries of Winter Storm Uri costs[249](index=249&type=chunk) - The company plans to use proceeds from its September 2023 debt offering and cash on hand to repay **$525 million** of notes due November 30, 2023, and plans to refinance **$600 million** of notes due August 23, 2024[252](index=252&type=chunk) BHC Credit Ratings (as of Sep 30, 2023) | Rating Agency | Senior Unsecured Rating | Outlook | | :--- | :--- | :--- | | S&P | BBB+ | Stable | | Moody's | Baa2 | Stable | | Fitch | BBB+ | Stable | [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Reports no material changes to legal proceedings from the 2022 Annual Report on Form 10-K, with details in Note 3 - For information regarding legal proceedings, the report refers to Note 3 of the Condensed Notes to Consolidated Financial Statements[282](index=282&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to risk factors previously disclosed in the 2022 Annual Report on Form 10-K - The company states there are no material changes to the risk factors previously disclosed in its 2022 Annual Report on Form 10-K[268](index=268&type=chunk)

Earnings per share, as adjusted and earnings from continuing operations, per share, as adjusted We embrace change and challenge ourselves to adapt quickly to opportunities. Leadership is an attitude. Everyone must demonstrate the care and initiative to do things right. 200400 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 ...

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.35 for Q2 2023, down from $0.52 in the same period last year, primarily due to higher operating expenses and increased interest expense [20][21][22] - Operating and maintenance (O&M) expenses increased by 8.2% year-over-year, driven by inflationary impacts on labor costs and benefits [22] - The company improved its net debt to total capitalization by 250 basis points to 58.2% [25] Business Line Data and Key Metrics Changes - Higher utility margins contributed $0.09 of EPS from new rates and investment riders, and $0.04 from transmission services and off-system energy sales [21] - The company is executing on its electric resource plans in Colorado and South Dakota, aiming to add a combined 500 megawatts of renewable resources [27][34] Market Data and Key Metrics Changes - The company is experiencing strong customer growth in service territories, particularly in Northwest Arkansas and the Front Range of Colorado [82] - The company is actively pursuing renewable natural gas (RNG) projects, with six interconnects already in service and three more nearing completion [47] Company Strategy and Development Direction - The company aims to achieve net zero emissions by 2035 for its natural gas systems and reduce electric emissions by 70% by 2040 [48][49] - The capital forecast for 2024 is projected to exceed $800 million, driven by strategic project deferrals and ongoing investments in infrastructure [41][99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midrange of EPS guidance despite inflationary pressures and higher O&M costs [55][60] - The company is focused on managing controllable expenses and leveraging strong cash flows from operations to support its financial objectives [58][66] Other Important Information - The company plans to issue $140 million to $160 million of equity through its ATM program and has improved liquidity by paying down short-term debt [23][30] - The company is in the execution phase of its regulatory plan, with two natural gas rate reviews in progress [40] Q&A Session Summary Question: What are the expectations for 2024? - Management indicated that inflationary challenges are impacting guidance, but they are focused on managing controllable O&M costs to achieve midrange guidance for 2023 [55][56] Question: What is prompting the rate case filing in Arkansas? - The rate case is driven by significant investments in growing communities in Northwest Arkansas, with expected rates effective around the same time next year [76] Question: How is the company approaching investments in RNG and regulated-like businesses? - The company is exploring opportunities in RNG interconnects while primarily focusing on regulated assets, with a dedicated team evaluating potential investments [77]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20-%20unaudited) Presents the unaudited consolidated financial statements for periods ended June 30, 2023, with key notes [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $411,283 | $474,195 | $1,332,442 | $1,297,765 | | **Operating Income** | $63,516 | $72,389 | $238,399 | $245,742 | | **Net Income** | $26,544 | $35,846 | $143,924 | $156,870 | | **Diluted EPS** | $0.35 | $0.52 | $2.06 | $2.33 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | $9,409,095 | $9,618,230 | | **Total Liabilities** | $6,206,328 | $6,528,335 | | **Total Equity** | $3,202,767 | $3,089,895 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights - Six Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $605,071 | $442,030 | | **Net cash (used in) investing activities** | $(245,372) | $(291,385) | | **Net cash (used in) financing activities** | $(228,137) | $(149,093) | | **Net change in cash** | $131,562 | $1,552 | [Note 2. Regulatory Matters](index=13&type=section&id=Note%202.%20Regulatory%20Matters) - Total regulatory assets decreased to **$523.7 million** as of June 30, 2023, from $653.0 million at year-end 2022, primarily due to the amortization of costs related to Winter Storm Uri[71](index=71&type=chunk) - Several rate reviews were filed or concluded, including approved settlements for RMNG and Wyoming Electric expected to generate **$8.2 million** and **$8.7 million** in new annual revenue, respectively, and pending reviews for Colorado Gas and Wyoming Gas seeking **$27 million** and **$19 million**[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) [Note 5. Financing](index=16&type=section&id=Note%205.%20Financing) - In March 2023, the company completed a public debt offering of **$350 million** in 5.95% five-year senior unsecured notes, using the proceeds to repay commercial paper borrowings[83](index=83&type=chunk) - The corporate Revolving Credit Facility was amended in May 2023 to replace LIBOR with **SOFR** as the benchmark interest rate[101](index=101&type=chunk) - A new Equity Distribution Sales Agreement was established in June 2023, allowing for the sale of up to **$400 million** in common stock through an At-the-Market (ATM) program[124](index=124&type=chunk) [Note 12. Business Segment Information](index=26&type=section&id=Note%2012.%20Business%20Segment%20Information) Segment Operating Income (in thousands) | Segment | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Electric Utilities** | $46,619 | $45,226 | $107,679 | $95,972 | | **Gas Utilities** | $17,725 | $28,195 | $132,350 | $151,735 | | **Corporate and Other** | $(828) | $(1,032) | $(1,630) | $(1,965) | | **Total Operating Income** | $63,516 | $72,389 | $238,399 | $245,742 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, segment performance, liquidity, and capital resources for Q2 and H1 2023 [Executive Summary](index=28&type=section&id=Executive%20Summary) - The company is a customer-focused energy solutions provider serving over **1.3 million customers** across an eight-state service territory[6](index=6&type=chunk) - Business operations are conducted through two main segments: **Electric Utilities** and **Gas Utilities**, with unallocated corporate expenses presented as Corporate and Other[7](index=7&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) - For Q2 2023 vs Q2 2022, Gas Utilities' operating income **decreased by $10.5 million**, while Electric Utilities' operating income **increased by $1.4 million**[148](index=148&type=chunk)[180](index=180&type=chunk) - For H1 2023 vs H1 2022, Gas Utilities' operating income **decreased by $19.4 million**, while Electric Utilities' operating income **increased by $11.7 million**[150](index=150&type=chunk)[164](index=164&type=chunk) - The decrease in Gas Utilities' operating income was primarily due to **higher operating expenses** and a prior year one-time true-up of carrying costs related to Winter Storm Uri[176](index=176&type=chunk)[177](index=177&type=chunk) - The increase in Electric Utilities' operating income was driven by **new rates, rider recovery, and increased transmission services**, partially offset by higher operating expenses[185](index=185&type=chunk)[186](index=186&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) - Net cash from operating activities **increased by $163.0 million** in H1 2023 compared to H1 2022, mainly due to higher collections on pass-through revenues and lower natural gas in storage inventories[235](index=235&type=chunk) - The company plans to fund its capital plan through cash from operations and various financing alternatives, including its credit facility, commercial paper program, and ATM program[242](index=242&type=chunk) - The company maintains **investment-grade credit ratings** from S&P (BBB+), Moody's (Baa2), and Fitch (BBB+), all with a stable outlook[224](index=224&type=chunk) Forecasted Capital Expenditures (in millions) | Year | Electric Utilities | Gas Utilities | Corporate & Other | Incremental Projects | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **2023** | $212 | $386 | $17 | - | $615 | | **2024** | $348 | $452 | $19 | - | $819 | | **2025** | $268 | $412 | $20 | - | $700 | | **2026** | $184 | $393 | $19 | $104 | $700 | | **2027** | $163 | $444 | $18 | $75 | $700 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Confirms no material changes to market risk disclosures from the 2022 Annual Report - There have been **no material changes** to the quantitative and qualitative disclosures about market risk previously disclosed in the 2022 Annual Report on Form 10-K[256](index=256&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of June 30, 2023 - The CEO and CFO evaluated disclosure controls and procedures and concluded they were **effective** as of June 30, 2023[230](index=230&type=chunk) - **No changes** in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[231](index=231&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) Reports no material changes to legal proceedings from the 2022 Annual Report - For information regarding legal proceedings, see Note 3 in Item 8 of our 2022 Annual Report on Form 10-K[232](index=232&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to risk factors from the 2022 Annual Report - There are **no material changes** to the risk factors previously disclosed in Item 1A of Part I in our 2022 Annual Report on Form 10-K[251](index=251&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details equity securities acquired by the company in Q2 2023 for tax payments on vested compensation - Shares were acquired under the share withholding provisions of the Amended and Restated 2015 Omnibus Incentive Plan for payment of taxes associated with the vesting of various equity compensation plans[233](index=233&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) References Exhibit 95 for required mine safety violation and regulatory disclosures - Information concerning mine safety violations or other regulatory matters required by Sections 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is included in Exhibit 95[234](index=234&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the report, including agreements, certifications, and XBRL data - Lists exhibits filed with the report, including amendments to credit agreements, certifications, and XBRL data[261](index=261&type=chunk)

Black Hills Corporation (NYSE:BKH) Q1 2023 Earnings Conference Call May 4, 2023 11:00 AM ET Company Participants Dave Soderquist – Manager-Investor Relations Linn Evans – President and Chief Executive Officer Kimberly Nooney – Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Andrew Weisel – Scotiabank Brandon Lee – Mizuho Operator Good day and thank you for standing by. Welcome to the First Quarter 2023 Black Hills Corporation earnings Conference call. At this time, ...

RELIABLE READY. Ready COMPANY INFORMATION Black Hills Corporation ➢ The accuracy of our assumptions on which our earnings guidance and growth target are based; Company Contacts Kimberly F. Nooney Senior Vice President, Chief Financial Officer and Treasurer 605-721-2370 kim.nooney@blackhillscorp.com ➢ Our ability to successfully execute our financing plans; ➢ Our ability to achieve our greenhouse gas emissions intensity reduction goals; Jerome E. Nichols Director of Investor Relations 605-721-1171 jerome.nic ...

Table of Contents | --- | --- | --- | |---------------------------------------------------------------------|-------|-------------------------------------| | Contracted generating facilities Availability by fuel type 2023 (a) | | Three Months Ended March 31, \n2022 | | Coal | 92.7% | 90.6% | | Natural gas and diesel oil | 94.3% | 95.3% | | Wind | 92.5% | 95.6% | | Total Availability | 93.6% | 94.1% | | | | | | Wind Capacity Factor | 48.1% | 42.0% | Operating results for the Gas Utilities were as follows (in ...