Core Viewpoint - Black Hills Corp. has announced a public debt offering of $450 million in senior unsecured notes with a 6.00% interest rate, maturing on January 15, 2035, expected to close on May 16, 2024 [1] Group 1: Debt Offering Details - The company is offering $450 million in senior unsecured notes at a 6.00% interest rate [1] - The offering is set to close on May 16, 2024, pending customary closing conditions [1] Group 2: Use of Proceeds - The net proceeds from the offering will be used to repay $600 million in outstanding notes due on August 23, 2024 [2] - Any remaining proceeds may be allocated for general corporate purposes [2] Group 3: Company Overview - Black Hills Corp. is a growth-oriented utility company based in Rapid City, South Dakota, serving 1.34 million natural gas and electric utility customers across eight states [5]

Black Hills Corporation (NYSE:BKH) Q1 2024 Results Conference Call May 9, 2024 11:00 AM ET Company Participants Dave Soderquist - Investor Relations Manager Linden Evans - President and CEO Kimberly Nooney - SVP and CFO Marne Jones - SVP, Utilities Todd Jacobs - SVP, Growth and Strategy Conference Call Participants Andrew Weisel - Scotiabank Brandon Lee - Mizuho Operator Good day, and thank you for standing by. Welcome to the Black Hills Corporation's First Quarter 2024 Earnings Conference Call. At this tim ...

```markdown PART I. FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Q1 2024 indicate improved net income and earnings per share, with a slight increase in total assets Consolidated Statement of Income Highlights (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Revenue** | $726.4 | $921.2 | | **Operating Income** | $193.3 | $174.9 | | **Net Income Available for Common Stock** | $127.9 | $114.1 | | **Diluted Earnings Per Share** | $1.87 | $1.73 | Consolidated Balance Sheet Highlights (As of March 31, 2024) | Metric | March 31, 2024 (in millions) | Dec 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $797.6 | $826.6 | | **Total Property, Plant and Equipment, net** | $7,223.1 | $7,119.3 | | **Total Assets** | $9,676.7 | $9,620.4 | | **Total Current Liabilities** | $1,088.4 | $1,185.1 | | **Long-term Debt** | $3,802.8 | $3,801.2 | | **Total Equity** | $3,422.5 | $3,305.8 | [Condensed Notes to Consolidated Financial Statements](index=13&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail regulatory rate approvals, debt covenant compliance, equity financing, and segment operating income growth for Electric and Gas Utilities - Colorado Gas received final approval for a rate increase expected to generate **$20.2 million** in new annual revenue, effective May 1, 2024[85](index=85&type=chunk) - Wyoming Gas received approval for a rate increase expected to generate **$13.9 million** in new annual revenue, effective February 1, 2024[87](index=87&type=chunk) - The company was in compliance with its Revolving Credit Facility covenant, maintaining a Consolidated Indebtedness to Capitalization Ratio of **0.57 to 1.00**, below the maximum of **0.65 to 1.00**[93](index=93&type=chunk) - In Q1 2024, the company issued **0.6 million shares** under its ATM program, raising net proceeds of **$31.2 million**[95](index=95&type=chunk) Segment Operating Income (Q1 2024 vs Q1 2023) | Segment | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Electric Utilities** | $64.6 | $61.1 | | **Gas Utilities** | $130.8 | $114.6 | | **Corporate and Other** | $(2.1) | $(0.8) | [Management's Discussion and Analysis (MD&A)](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights increased operating income, strategic clean energy initiatives, and a solid financial position to fund capital expenditures [Recent Developments](index=26&type=section&id=Recent%20Developments) Recent developments include evaluating new EPA rules, proposing renewable energy resources, and acquiring a Renewable Natural Gas facility - In April 2024, the EPA published final rules regulating CO2 emissions from the power sector. The company is evaluating the impact but believes most costs will be recoverable through regulatory mechanisms[4](index=4&type=chunk) - Colorado Electric filed a report recommending **400 MW** of new renewable energy resources, including **200 MW solar**, **150 MW wind**, and **50 MW battery storage**, expected to be in service between 2026-2027[5](index=5&type=chunk) - In January 2024, the company acquired a Renewable Natural Gas (RNG) production facility in Iowa, entering the nonregulated RNG production business[8](index=8&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Consolidated operating income increased significantly in Q1 2024, driven by new rates and favorable adjustments across utility segments Consolidated Operating Results (Q1 2024 vs Q1 2023) | Metric (in millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | **Electric Utilities Operating Income** | $64.6 | $61.1 | $3.5 | | **Gas Utilities Operating Income** | $130.8 | $114.6 | $16.2 | | **Total Operating Income** | $193.3 | $174.9 | $18.4 | | **Net Income Available for Common Stock** | $127.9 | $114.1 | $13.8 | | **Diluted EPS** | $1.87 | $1.73 | $0.14 | - Electric Utilities' operating income increased by **$3.5 million**, mainly due to new rates and rider recovery from the Wyoming Electric rate review and lower operating expenses[16](index=16&type=chunk) - Gas Utilities' operating income rose by **$16.2 million**, driven by new rates from Colorado and Wyoming rate reviews, favorable commodity contract adjustments, and lower operating expenses, despite unfavorable weather[16](index=16&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity, planning to fund its capital expenditure program through operating cash flow and financing, despite a revised credit outlook - Net cash provided by operating activities was **$233.4 million** for Q1 2024, a decrease of **$95.3 million** from Q1 2023, primarily due to changes in regulatory assets and working capital driven by commodity price fluctuations[70](index=70&type=chunk)[166](index=166&type=chunk) - Net cash used in investing activities increased by **$75.4 million** year-over-year, driven by higher capital expenditures on projects like Ready Wyoming and the acquisition of an RNG facility[170](index=170&type=chunk) - The company plans to refinance its **$600 million**, 1.037% senior unsecured notes that are due on August 23, 2024[175](index=175&type=chunk) Capital Expenditure Forecast (2024-2028) | Year (in millions) | 2024 | 2025 | 2026 | 2027 | 2028 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Electric Utilities** | $409 | $287 | $466 | $199 | $264 | | **Gas Utilities** | $407 | $387 | $368 | $372 | $373 | | **Corporate & Other** | $24 | $29 | $29 | $27 | $29 | | **Incremental Projects** | - | $100 | $400 | $50 | $50 | | **Total** | **$840** | **$803** | **$1,263** | **$648** | **$716** | - On April 22, 2024, the board declared a quarterly dividend of **$0.65 per share**, equivalent to an annual dividend of **$2.60 per share**[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk disclosures from the 2023 Annual Report on Form 10-K - There have been no material changes to the company's disclosures about market risk from the 2023 Annual Report on Form 10-K[181](index=181&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2024[188](index=188&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2024[190](index=190&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to prior disclosures for legal proceedings, indicating no new material developments in the current quarter - For information on legal proceedings, the company refers to disclosures in its 2023 Form 10-K, implying no new material legal proceedings in Q1 2024[191](index=191&type=chunk) [Risk Factors](index=36&type=page&id=Item%201A.%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - There are no material changes to the risk factors previously disclosed in the 2023 Annual Report on Form 10-K[192](index=192&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company acquired shares for tax withholding related to equity compensation plans, not as part of a formal repurchase program - A total of **14,599 shares** were acquired during Q1 2024 for tax withholding purposes related to equity compensation plans, not as part of a formal buyback program[193](index=193&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosure information, as required by the Dodd-Frank Act, is provided in Exhibit 95 of this report - Mine safety disclosure information is provided in Exhibit 95[197](index=197&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading arrangements during the first quarter of 2024 - No directors or officers entered into or modified any Rule 10b5-1 trading plans during Q1 2024[198](index=198&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications, mine safety data, and XBRL data files ```

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) The company reported strong Q1 2024 financial results driven by regulatory outcomes and expense management, alongside significant progress in clean energy and infrastructure investments [Q1 2024 Financial Performance](index=1&type=section&id=Q1%202024%20Financial%20Performance) The company reported an 8% increase in diluted EPS to $1.87 for Q1 2024, driven by new rates, rider recovery, and lower operating expenses, offsetting weather impacts and prior year gains | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income available for common stock | $127.9 million | $114.1 million | | Earnings per share, Diluted | $1.87 | $1.73 | - Financial results were positively impacted by **new rates**, **rider recovery**, and **reduced operating expenses** These factors offset negative impacts from **10% lower heating degree days**, a prior year gain on the sale of non-core wind assets, and the issuance of new common shares[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Linn Evans highlighted a strong start to 2024, emphasizing that constructive regulatory outcomes and expense management more than offset challenges from weather and inflation. The company is advancing its clean energy plans, including 400 MW in Colorado, and sees future growth opportunities from increasing data center demand and its $4.3 billion five-year capital plan - The company is on track to meet its **2024 operational and financial goals**, with strong performance driven by **regulatory results** and **expense management**[4](index=4&type=chunk) - Progress is being made on the regulatory front, with **rate reviews advancing in Arkansas and Iowa**, and a new filing planned for Colorado in June[2](index=2&type=chunk) - Strategic advancement in clean energy includes a proposal for **400 MW of wind, solar, and battery resources in Colorado** and pursuing **100 MW of utility-owned renewables in South Dakota**[5](index=5&type=chunk) - Future growth is expected from increasing load from **data center and blockchain customers**, supported by a **$4.3 billion five-year capital plan** focused on meeting demand, improving resiliency, and upgrading infrastructure[6](index=6&type=chunk) [Key Operational Updates](index=1&type=section&id=Key%20Operational%20Updates) The company made significant progress across its utility segments, including advancing a 400 MW renewable energy plan in Colorado, filing for new rates in Iowa and Arkansas, and acquiring its first renewable natural gas (RNG) facility. Corporate actions included a dividend increase marking 54 consecutive years, issuance of common stock, and a credit rating affirmation from Fitch [Electric Utilities](index=1&type=section&id=Electric%20Utilities) The Electric Utilities segment advanced renewable energy plans in Colorado and South Dakota, experienced peak load growth in Wyoming, and continued transmission project construction - In Colorado, a plan was filed recommending **400 MW of new renewable resources** (200 MW solar, 150 MW wind PPA, 50 MW battery) to be in service by 2026-2027, targeting an **89% GHG emission reduction by 2030**[7](index=7&type=chunk) - Wyoming Electric set a new all-time peak load of **314 megawatts in January 2024**, indicating growing demand[8](index=8&type=chunk) - In South Dakota, the company is pursuing **100 MW of utility-owned renewable generation** to meet long-term growth needs, with a filing expected in H2 2024[9](index=9&type=chunk) - Construction continues on the **260-mile 'Ready Wyoming' electric transmission project**, with completion expected in phases through 2024 and 2025[10](index=10&type=chunk) [Gas Utilities](index=3&type=section&id=Gas%20Utilities) The Gas Utilities segment progressed rate reviews in Iowa and Arkansas, implemented new rates in Colorado and Wyoming, and acquired its first renewable natural gas facility - Filed a rate review in Iowa on May 1, requesting **$20.7 million in new annual revenue**[11](index=11&type=chunk) - Advanced a rate review in Arkansas, requesting **$44.1 million in new annual revenue**, with new rates expected in Q4 2024[12](index=12&type=chunk) - Implemented new rates in Colorado and Wyoming, resulting from approved settlement agreements providing **$20.2 million** and **$13.9 million in new annual revenue**, respectively[13](index=13&type=chunk)[14](index=14&type=chunk) - Acquired a **renewable natural gas (RNG) production facility in Dubuque, Iowa**, marking the company's first entry into RNG production[15](index=15&type=chunk) [Corporate and Other](index=3&type=section&id=Corporate%20and%20Other) Corporate actions included a 54th consecutive dividend increase, common stock issuance, and a credit rating affirmation from Fitch - The board approved a quarterly dividend of **$0.65 per share**, extending the track record to **54 consecutive years of dividend increases**[16](index=16&type=chunk) - Issued **0.6 million shares of common stock** for net proceeds of **$33.8 million** via its at-the-market (ATM) equity program[17](index=17&type=chunk) - Fitch Ratings affirmed the company's issuer default rating at **BBB+ with a negative outlook**[18](index=18&type=chunk) [2024 Earnings Guidance](index=3&type=section&id=2024%20Earnings%20Guidance) The company reaffirmed its 2024 earnings guidance, based on assumptions including normal weather, constructive regulatory outcomes, and planned equity issuances [Guidance and Assumptions](index=3&type=section&id=Guidance%20and%20Assumptions) Black Hills Corp. reaffirmed its 2024 earnings guidance range of $3.80 to $4.00 per share. This forecast is based on several key assumptions, including normal weather conditions, constructive regulatory outcomes, no significant unplanned outages, and planned equity issuances of $170 million to $190 million | Metric | Guidance Range | | :--- | :--- | | 2024 Earnings Per Share | $3.80 - $4.00 | - Key assumptions for the guidance include: - **Normal weather conditions** - **Constructive and timely regulatory outcomes** - No significant unplanned generator outages - **Equity issuance of $170 million to $190 million** through the ATM program - Approximately **$18 million in production tax credits**[19](index=19&type=chunk) [Consolidated Financial Results](index=6&type=section&id=Consolidated%20Financial%20Results) The company's Q1 2024 consolidated financial results show increased operating income and net income, driven by strong performance in both Electric and Gas utility segments [Consolidated Income Statement](index=6&type=section&id=Consolidated%20Income%20Statement) For Q1 2024, the company's operating income rose to $193.3 million from $174.9 million in Q1 2023. Net income available for common stock increased to $127.9 million from $114.1 million year-over-year, driven by higher operating income in both Electric and Gas utility segments | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Operating income:** | | | | Electric Utilities | $64.6 | $61.1 | | Gas Utilities | $130.8 | $114.6 | | Corporate and Other | $(2.1) | $(0.8) | | **Total Operating income** | **$193.3** | **$174.9** | | Interest expense, net | $(44.0) | $(43.5) | | Income tax expense | $(16.9) | $(14.7) | | **Net income available for common stock** | **$127.9** | **$114.1** | | Per Share Data | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earnings Per Share, Basic | $1.88 | $1.73 | | Earnings Per Share, Diluted | $1.87 | $1.73 | [Segment Performance Summary](index=7&type=section&id=Segment%20Performance%20Summary) Both Electric and Gas Utilities segments reported increased operating income for Q1 2024. The Electric segment's growth to $64.6 million was driven by new rates and rider recovery. The Gas segment's operating income grew significantly to $130.8 million, benefiting from new rates and lower operating expenses, which more than offset the negative impact of warmer weather [Electric Utilities Segment](index=8&type=section&id=Electric%20Utilities%20Segment) The Electric Utilities segment reported increased revenue, margin, and operating income, primarily due to new rates and rider recovery | Electric Utilities (in millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | Revenue | $222.2 | $218.7 | $3.5 | | Electric Utility margin (non-GAAP) | $167.4 | $163.3 | $4.1 | | Operating income | $64.6 | $61.1 | $3.5 | - The **$4.1 million increase in Electric Utility margin** was primarily driven by **$8.8 million from new rates and rider recovery**, partially offset by a **$1.2 million negative impact from weather**[42](index=42&type=chunk) - Operations and maintenance expense was flat year-over-year, as lower outside services and employee costs were offset by a **one-time $7.7 million gain on an asset sale in the prior year**[36](index=36&type=chunk) [Gas Utilities Segment](index=10&type=section&id=Gas%20Utilities%20Segment) The Gas Utilities segment saw significant growth in operating income and margin, driven by new rates and reduced operating expenses despite weather impacts | Gas Utilities (in millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | Revenue | $508.7 | $706.9 | $(198.2) | | Gas Utility margin (non-GAAP) | $246.8 | $235.9 | $10.9 | | Operating income | $130.8 | $114.6 | $16.2 | - The **$10.9 million increase in Gas Utility margin** was driven by **$13.1 million from new rates and rider recovery**, which more than offset a **$7.4 million negative impact from weather**[46](index=46&type=chunk) - Operations and maintenance expense decreased by **$8.5 million**, primarily due to **lower employee-related expenses ($5.3 million)** and **lower bad debt expense ($1.6 million)**[46](index=46&type=chunk) [Corporate and Other Segment](index=10&type=section&id=Corporate%20and%20Other%20Segment) The Corporate and Other segment reported an increased operating loss for the quarter | Corporate and Other (in millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | Operating (loss) | $(2.1) | $(0.8) | $(1.3) | [Other Financial Items](index=12&type=section&id=Other%20Financial%20Items) Interest expense remained stable year-over-year, while other income shifted to a slight expense. Income tax expense increased to $16.9 million, primarily due to higher pre-tax income, with the effective tax rate remaining comparable to the prior year | (in millions) | Q1 2024 | Q1 2023 | Variance | | :--- | :--- | :--- | :--- | | Interest expense, net | $(44.0) | $(43.5) | $(0.5) | | Other income (expense), net | $(0.8) | $0.7 | $(1.5) | | Income tax (expense) | $(16.9) | $(14.7) | $(2.2) | - The increase in income tax expense was primarily due to **higher pre-tax income**, while the effective tax rate was comparable to the prior year period[56](index=56&type=chunk) [Investor Information](index=5&type=section&id=Investor%20Information) The company will host a Q1 2024 earnings conference call and attend the AGA Financial Forum to engage with investors [Conference Call and Webcast](index=5&type=section&id=Conference%20Call%20and%20Webcast) The company will host a conference call and webcast on May 9, 2024, at 11 a.m. EDT to discuss its Q1 2024 financial and operating performance. Materials and access details are available on the company's investor relations website - A live conference call and webcast to discuss financial and operating performance is scheduled for **11 a.m. EDT on Thursday, May 9, 2024**[21](index=21&type=chunk) - Access to the webcast, investor presentation, and replay will be available through the **Investor Relations section of the company's website**[22](index=22&type=chunk) [AGA Financial Forum Attendance](index=5&type=section&id=AGA%20Financial%20Forum%20Attendance) Senior leadership will meet with investors at the 2024 AGA Financial Forum from May 19-21 to discuss guidance, growth targets, and other business factors. Presentation materials will be available online - Senior leadership is scheduled to meet with investors during the **2024 AGA Financial Forum on May 19-21**[24](index=24&type=chunk) - Conference materials will be made available on the **company's Investor Relations website** prior to the meetings[25](index=25&type=chunk)

RAPID CITY, S.D., May 08, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the first quarter of 2024. Net income available for common stock and earnings per share for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, were:  Three Months Ended March 31, 2024 2023 (in millions, except per share amounts)Net income available for common stock$127.9 $114.1Earnings per share, Diluted$1.87 $1.73       First quarter earnings were $1.8 ...

GRIMES, Iowa, May 01, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced that its Iowa natural gas utility, Black Hills/Iowa Gas Utility Company, LLC, doing business as Black Hills Energy, filed a rate review application with the Iowa Utilities Board requesting $20.7 million in new annual revenue. Black Hills Energy has invested approximately $100 million in safety, system integrity and reliability for its natural gas pipeline infrastructure in Iowa since its last general rate filing in 2 ...

RAPID CITY, S.D., April 22, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced that its board of directors declared a quarterly dividend on the common stock at a meeting held April 22, 2024. Common shareholders of record at the close of business on May 17, 2024, will receive $0.65 per share, payable June 1, 2024. The company also confirms that it will release its 2024 first quarter earnings after the market closes Wednesday, May 8, 2024, and will host a live conference call and webcast at ...

RAPID CITY, S.D., April 18, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced that its subsidiary Black Hills Colorado Electric, LLC, doing business as Black Hills Energy, is recommending 400 megawatts (MW) of new renewable energy resources to advance its 2030 Ready Clean Energy Plan. In its 120-Day report filed with the Colorado Public Utilities Commission, Black Hills Energy is proposing a preferred portfolio of resources that will add 200 MW of utility-scale solar, 150 MW of wind, and ...

Sometimes even well-run companies fall on hard times, and that's exactly the situation with these two Dividend Kings.There's an old Wall Street maxim that says the best time to buy is when there's blood in the streets. That might be a bit extreme for most investors, but the point is that you can often find the best deals on stocks that other investors are afraid of.Right now Stanley Black & Decker (SWK -0.72%) and Black Hills (BKH -1.54%) are out of favor, which is why you might want to take a closer look a ...

RAPID CITY, S.D., April 16, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) will hold its Annual Meeting of Shareholders on Tuesday, April 23, 2024, at 9:30 a.m. MDT at 7001 Mount Rushmore Road, Rapid City, South Dakota. Attendees have the option to attend the meeting in person or they can listen to the meeting by dialing in via telephone. Shareholders will be able to access audio of the meeting by dialing 605-782-9484 and entering the passcode 604 530 619#. The presentation for the meeting will be av ...