Core Viewpoint - The stock market is experiencing turbulence due to concerns about tariffs impacting the global economy, which could lead to a recession and further declines in stock prices [1] Group 1: Black Hills (BKH) - Black Hills is considered a foundational dividend stock, attractive due to the essential nature of utilities and the regulatory monopolies they hold [3] - The company has a strong track record with over 50 consecutive annual dividend increases, qualifying it as a Dividend King, and offers a dividend yield of 4.4%, significantly higher than the S&P 500's 1.2% [5] - Black Hills projects earnings growth of 4% to 6% annually, with dividend growth expected to align with earnings, supported by an investment-grade-rated balance sheet [6][7] Group 2: Enbridge (ENB) - Enbridge has a remarkable history of paying dividends for over 70 years, with a 30-year streak of increasing payouts, making it a model dividend stock [8] - The company generates 98% of its earnings from stable, contracted assets, allowing it to maintain predictable revenue and achieve its financial guidance consistently [9] - Enbridge plans to grow its cash flow per share by 3% annually through next year and about 5% per year after 2026, with a current dividend yield exceeding 7% [11] Group 3: Enterprise Products Partners (EPD) - Enterprise Products Partners is highlighted for its ability to provide a steady stream of passive income, having increased its dividend for 26 consecutive years despite market volatility [12][13] - The company has nearly $6 billion in major projects under construction, including pipeline expansions, which are expected to enhance cash flows and support dividend growth [14] - Enterprise Products has generated record net income and distributable cash flow in 2024, indicating strong financial health and the capacity to maintain and grow dividends [15][16]

Group 1: Dividend Kings Overview - Dividend Kings are companies that have increased their dividend payouts for at least five decades, indicating strong business plans and execution in various market conditions [1] - Companies highlighted as potential investments include Nucor, Black Hills, and Stanley Black & Decker, each serving different niches in an investment portfolio [2] Group 2: Nucor - Nucor's stock has declined over a third since early 2024, primarily due to weakening industry conditions in the cyclical steel market rather than internal issues [3][4] - The company is undergoing a $10 billion capital investment plan, positioning itself to emerge stronger when steel prices recover [5] - Nucor offers a 1.7% dividend yield, appealing to investors interested in industry leaders despite the current market challenges [6] Group 3: Black Hills - Black Hills boasts a 4.5% dividend yield, making it an attractive option for yield-seeking investors [7] - The company serves 1.35 million customers across several states, with customer growth nearly three times the U.S. population growth rate, supporting future earnings growth of 4% to 6% annually [9] - Black Hills is characterized by steady growth, making it a reliable utility investment with a market cap of $4 billion [8][9] Group 4: Stanley Black & Decker - Stanley Black & Decker is undergoing a turnaround after an acquisition spree that led to high leverage and a complex product portfolio [10] - Despite challenges, the company has maintained its dividend streak, although the growth rate has slowed [11] - Adjusted earnings have started to rise again in 2024, indicating a potential inflection point, though 2025 may present challenges due to global economic uncertainty [12] - The company is seen as a turnaround story, appealing to investors willing to take on risk for potential rewards [13] Group 5: Conclusion on Dividend Kings - Nucor, Black Hills, and Stanley Black & Decker represent diverse investment opportunities within the Dividend Kings category, catering to different investor preferences [14]

Core Points - Black Hills Corp.'s electric utility subsidiary in Colorado received approval for new rates from the Colorado Public Utilities Commission, allowing recovery of approximately $370 million in system investments since the last general rate filing in 2016 [1][2] - The new rates are expected to generate approximately $17.0 million in new annual revenues, based on a weighted average cost of capital of 6.90% and a capital structure of 47% to 49% equity and 51% to 53% debt [2] - The new rates became effective on March 22, 2025, and the company has until April 7, 2025, to file a request for rehearing or reconsideration with the commission [2] Company Overview - Black Hills Corp. is a customer-focused, growth-oriented utility company based in Rapid City, South Dakota, serving 1.35 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming [3]

Group 1 - The article discusses the investment group The Dividend Kings, which aims to help investors safeguard and grow their money through high-quality dividend investments [2] - The team of analysts associated with The Dividend Kings provides resources such as model portfolios, buy ideas, and company research reports to assist members in making informed investment decisions [2] - The article emphasizes the importance of intelligent investing in dividend stocks, highlighting the community aspect where readers can learn from each other [2] Group 2 - The article includes a disclosure stating that the author has a beneficial long position in the shares of specific companies, indicating a vested interest in the performance of those stocks [2] - It clarifies that the opinions expressed may not reflect those of the broader platform, Seeking Alpha, and that the analysts involved may not be licensed or certified [3]

Group 1 - Black Hills Corp. will engage with investors in March 2025 through participation in multiple conferences [1][3] - The company serves 1.35 million natural gas and electric utility customers across eight states [2] - Upcoming conferences include the Morgan Stanley Energy and Power Conference on March 3, Jefferies Power, Utilities and Clean Energy Conference on March 4, Siebert Williams Shank West Coast Utilities Conference on March 20, and Scotiabank Utilities and Renewables Conference on March 25 [3] Group 2 - Black Hills Corp. is a growth-oriented utility company focused on customer service and energy solutions [2] - The company is based in Rapid City, South Dakota [2] - More information about the company can be found on its website [2]

Customer Growth - As of December 31, 2024, the total electric retail customers increased to 225,088, up from 222,340 in 2023, representing a growth of 1.6%[30] - As of December 31, 2024, the total natural gas retail customers increased to 1,128,355, up from 1,116,393 in 2023, representing a growth of approximately 1.1%[48] Energy Supply and Demand - The system peak demand for Colorado Electric in summer 2024 was 394 MW, a decrease of 4.1% from 411 MW in summer 2023[30] - The power supply from coal decreased to 32.5% in 2024 from 35.0% in 2023, while natural gas increased to 29.4% from 26.4%[32] - Renewable energy purchases increased in 2024 due to new wind and solar power purchase agreements (PPAs) effective December 2023 and March 2024, respectively[33] - Seasonal variations significantly impact demand for natural gas, with higher demand typically observed during the winter months[50] Financial Performance - Revenue for the year ended December 31, 2024, was $2,127.7 million, a decrease of 8.7% from $2,331.3 million in 2023[308] - Operating income increased to $503.1 million in 2024, up 6.8% from $472.7 million in 2023[308] - Net income available for common stock was $273.1 million, representing an increase of 4.0% compared to $262.2 million in 2023[308] - Basic earnings per share remained stable at $3.91 for both 2024 and 2023[308] - Comprehensive income available for common stock was $278.5 million in 2024, compared to $263.0 million in 2023, an increase of 5.8%[311] - Net income for the year ended December 31, 2024, was $283.7 million, an increase of 2.5% from $276.0 million in 2023[321] Costs and Expenses - The total weighted average fuel and purchased power cost decreased to $24.66 per MWh in 2024 from $25.39 in 2023[34] - The average price paid for natural gas was $15.64 per MWh in 2024, down from $20.20 in 2023[34] - The weighted average cost of coal used for electricity generation was $13.87 per MWh in 2024, compared to $13.40 in 2023[34] - The company reported a decrease in fuel, purchased power, and cost of natural gas sold to $730.3 million in 2024 from $982.9 million in 2023, a decline of 25.6%[308] - Increased costs associated with healthcare plans and employee benefits may adversely affect financial operating results, including earnings and cash flow[121] Capital Structure and Debt - Long-term debt increased to $4,250.2 million in 2024, up from $3,801.2 million in 2023, indicating a rise of 11.8%[318] - Long-term debt issuance in 2024 was $450.0 million, compared to $800.0 million in 2023, indicating a decrease of 43.8%[321] - As of December 31, 2024, 96.9% of the company's debt is fixed rate, limiting exposure to variable interest rate fluctuations[279] - The senior unsecured debt rating is Baa2 (Stable outlook) by Moody's and BBB+ (Stable outlook) by S&P, with a potential downgrade impacting capital access and increasing interest expenses[117] Regulatory Environment - The company’s electric utilities face limited competition in retail generation and distribution, with potential impacts from legislative restructuring initiatives[42] - The regulatory environment allows the company to recover prudently incurred costs of natural gas through various cost recovery mechanisms, ensuring stable revenue streams[55] - The company is subject to oversight by multiple regulatory bodies, including state public utility commissions and the FERC, which influence its operational and financial decisions[56] - Regulated natural gas and electric utility services tariffs are subject to regulatory-approved tariffs, with service revenues varying based on quantities delivered, influenced by seasonal business and weather patterns[341] Workforce and Employee Relations - Total employees as of December 31, 2024, are 2,841, with 423 in Electric Utilities and 1,175 in Gas Utilities[80] - The turnover rate for the year ended December 31, 2024, is 11%, down from 12% in the previous year[79] - The percentage of women in executive leadership positions increased from 29% in 2023 to 32% in 2024[79] - The company has a collective bargaining agreement covering 716 employees across Electric and Gas Utilities, with no labor stoppages experienced in decades[81] Environmental and Safety Regulations - The company is subject to significant state and federal environmental regulations aimed at reducing GHG emissions and promoting clean energy technologies[74] - The EPA proposed new GHG emission limits for existing coal and natural gas power plants, with compliance costs expected to be recoverable through regulatory mechanisms[75] - The company reported a Days Away, Restricted, or Transferred incident rate of 1.0 per 200,000 hours worked for the year ended December 31, 2024[85] - 91.5% of injuries were reported within one day, indicating a strong focus on safety and compliance[85] Strategic Initiatives and Risks - The company has significant capital investment programs planned over the next five years, including a 99 MW natural gas-fired generation addition in South Dakota and a renewable generating facility acquisition as part of the Colorado Clean Energy Plan[88] - The company faces risks related to regulatory outcomes, which could adversely impact earnings, cash flow, and liquidity due to potential unfavorable rate decisions[89] - Supply chain challenges could negatively impact operations, with risks including unanticipated price increases and disruptions from geopolitical unrest[104] - Cybersecurity incidents pose a risk to operations, with potential disruptions leading to loss of service and significant repair costs[105] - Legislative changes regarding federal income tax policy could adversely affect the company's financial condition and cash flows[97] Financial Instruments and Market Risks - The company uses derivative financial instruments to hedge against commodity price risks, which could result in material financial losses if market conditions change unfavorably[125][126] - The company is exposed to various market risks, including commodity price risk and interest rate risk, which may impact financial performance[272][275] - The company has adopted hedging programs to mitigate natural gas price volatility, utilizing futures, options, and swaps[273][276] - Certain derivative contracts approved by regulatory authorities are either recovered or refunded through customer rates, with changes in fair value deferred as a regulatory asset or liability[368] Asset Management - Total assets increased to $10,022.6 million as of December 31, 2024, compared to $9,620.4 million in 2023, reflecting a growth of 4.2%[315] - The company’s retained earnings rose to $1,249.1 million in 2024, compared to $1,158.2 million in 2023, an increase of 7.8%[324] - Goodwill balances remained unchanged since 2016, totaling $1,299.5 million as of December 31, 2024, with $257.3 million attributed to Electric Utilities and $1,042.2 million to Gas Utilities[358]

Financial Data and Key Metrics Changes - The company achieved EPS growth of 4.3% in 2024, with a guidance midpoint of $3.75 for 2023, and expects approximately 5% EPS growth in 2025 [9][31] - The financial position remains solid, with successful completion of the financing plan and maintenance of investment-grade credit ratings [10][34] - The company delivered $0.74 per share of new margins driven by regulatory strategy execution and $0.08 per share from customer growth [26] Business Line Data and Key Metrics Changes - The company invested over $800 million for core energy needs, achieving a new peak demand of 318 megawatts for Wyoming Electric [8][9] - O&M management efforts reduced year-over-year O&M increase to less than 1% or $0.06 per share, despite challenges from mild weather and unplanned outages [27][28] Market Data and Key Metrics Changes - Customer count in service jurisdictions grew more than 1% annually, significantly above the national average of 0.4% [22] - The company is witnessing strong growth in its Western South Dakota service territory, which is also above the national average [22] Company Strategy and Development Direction - The company is focused on a customer-centric strategy, with a long-term EPS growth target of 4% to 6% [14][30] - A five-year capital investment plan of $4.7 billion is set, reflecting a 10% increase compared to the previous plan, driven by project timing and customer-focused opportunities [15][14] - The company is advancing its data center growth plan, with expectations of serving approximately 500 megawatts of data center demand by the end of 2029 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong capital forecast and growth opportunities driven by increasing demand from data center customers [14][55] - The company is committed to maintaining solid investment-grade credit ratings and has achieved its debt to total capitalization target of 55% [34][35] Other Important Information - The company increased its dividend by 4%, marking 55 consecutive years of dividend increases [13][37] - The Ready Wyoming electric transmission project is progressing well, enhancing system resiliency and market access [44][45] Q&A Session Summary Question: Clarification on CapEx forecast changes - Management explained that the CapEx forecast was adjusted due to timing of significant projects and increased investments driven by organic growth and inflation [58][60] Question: Contribution from data center load - Management clarified that the expectation of data center load contributing 10% or more to EPS by 2029 remains unchanged, with growth driven by both organic and data center growth [63][66] Question: Wildfire risk mitigation legislation involvement - Management confirmed active involvement in wildfire legislation discussions, with ongoing efforts in Colorado and successful progress in South Dakota and Wyoming [90][91] Question: Timing of clean energy plan resources - Management indicated that the timing for new resources in the Colorado clean energy plan has shifted due to better insights from bids and contract negotiations [83][85]

Financial Performance - Black Hills Corp. reported Q4 2024 earnings per share (EPS) of $3.91, reflecting a 4.3% growth from the midpoint of 2023 earnings guidance[5]. - The company achieved operating income of $163.3 million in Q4 2024, compared to $136.5 million in Q4 2023, and full-year operating income of $503.1 million, up from $472.7 million[1]. - Total revenue for the twelve months ended December 31, 2024, was $2,127.7 million, compared to $2,331.3 million for the same period in 2023, reflecting a decrease of approximately 8.7%[18][20]. - Net income available for common stock for the twelve months ended December 31, 2024, was $273.1 million, compared to $262.2 million for the same period in 2023, representing an increase of approximately 4.0%[18][20]. - Total revenue for the three months ended December 31, 2024, was $385.2 million, a slight increase from $380.3 million in the same period of 2023[29]. Capital Investment and Forecast - Black Hills Corp. increased its five-year capital forecast by 10% to $4.7 billion, including $1.0 billion for 2025[5]. - The company invested approximately $800 million in electric and gas infrastructure during the year, including the first phase of the $350 million Ready Wyoming transmission expansion project[2]. - Black Hills Corp. initiated 2025 earnings guidance in the range of $4.00 to $4.20 per share, based on several operational assumptions[10]. Revenue and Sales Performance - Electric Utilities revenue for the twelve months ended December 31, 2024, was $876.1 million, up from $865.0 million in 2023, indicating a growth of approximately 1.3%[18][20]. - Gas Utilities revenue decreased from $1,484.2 million in 2023 to $1,269.4 million in 2024, a decline of approximately 14.5%[18][20]. - The total quantities sold for Electric Utilities in the twelve months ended December 31, 2024, were 7,235.2 GWh, compared to 7,196.2 GWh in 2023, reflecting an increase of approximately 0.5%[23]. - Total quantities sold and transported for the twelve months ended December 31, 2024, were 1,269.4 million Dth, down from 1,484.2 million Dth in 2023, reflecting a decrease of approximately 14.4%[29]. - Retail revenue from residential customers was $215.4 million for the three months ended December 31, 2024, compared to $215.1 million in 2023, showing a marginal increase[29]. - Arkansas Gas reported revenue of $81.6 million for the three months ended December 31, 2024, up from $79.8 million in 2023, indicating a growth of 2.3%[31]. Operational Challenges and Outlook - The company anticipates challenges related to supply chain disruptions and inflation impacting operational costs[38]. - Future earnings guidance and long-term growth targets are subject to various risks and uncertainties, including regulatory approvals and market conditions[37]. Dividends and Shareholder Returns - Black Hills Corp. increased its quarterly dividend by 4%, marking 55 consecutive years of annual dividend increases[5]. - The company issued 3.3 million shares of new common stock for net proceeds of $182 million during 2024[9]. Utility Performance - Electric Utilities' operating income decreased by $15.8 million due to unplanned generation outages, lower off-system excess energy sales, and higher insurance expenses[22]. - Gas Utilities' operating income increased by $42.5 million driven by new rates, retail customer growth, and favorable mark-to-market on commodity contracts[22]. - Corporate and other operating loss decreased by $3.7 million due to lower unallocated operating expenses[22]. - The total availability of contracted generating facilities was 88.2% for the three months ended December 31, 2024, compared to 88.9% in 2023[27]. Customer Base and Service - The company serves approximately 1.35 million natural gas and electric utility customers across eight states[36]. - Wyoming Electric set a new all-time peak load of 318 megawatts in January 2025, surpassing the previous peak of 314 megawatts in January 2024[6]. Environmental Commitment - The company emphasizes its commitment to achieving greenhouse gas emissions intensity reduction goals[38]. Upcoming Events - Black Hills Corp. will host a conference call on February 6, 2025, to discuss its financial and operating performance[33].

Core Insights - Black Hills Corp. reported strong financial results for Q4 and the full year 2024, with operating income of $163.3 million for Q4 and $503.1 million for the full year, representing increases from $136.5 million and $472.7 million in 2023 respectively [1][10] - The company achieved a net income available for common stock of $98.1 million for Q4 and $273.1 million for the full year, compared to $79.6 million and $262.2 million in 2023, indicating solid growth [1][10] - Earnings per share (EPS) for 2024 were $3.91, benefiting from new rates, rider recovery, and customer growth, with a projected EPS range of $4.00 to $4.20 for 2025 [1][10][5] Financial Performance - Operating income for Q4 2024 was $163.3 million, up from $136.5 million in Q4 2023, while full-year operating income increased to $503.1 million from $472.7 million [1][10] - Net income available for common stock rose to $98.1 million in Q4 2024 from $79.6 million in Q4 2023, and for the full year, it increased to $273.1 million from $262.2 million [1][10] - The diluted EPS for 2024 was $3.91, reflecting a 4.3% growth from the midpoint of 2023 earnings guidance [5][12] Growth Initiatives - The company invested approximately $800 million in electric and gas infrastructure, including the Ready Wyoming transmission expansion project, the largest in its history [2] - Black Hills Corp. increased its five-year capital forecast by 10% to $4.7 billion through 2029, with a pipeline of data center demand exceeding one gigawatt expected within the next 10 years [3][5] - The company anticipates that approximately 500 megawatts of data center demand will be served by the end of 2029, significantly contributing to EPS growth [3] Regulatory and Rate Reviews - Black Hills Corp. reached constructive settlements for natural gas rate reviews in Arkansas and Iowa, which contributed to the increase in net income [2] - The company has ongoing rate review requests in multiple states, including Kansas Gas seeking $118 million for system investments and inflationary impacts [9] Dividend and Shareholder Returns - The company increased its quarterly dividend by 4%, marking 55 consecutive years of annual dividend increases [5][9] - The board approved a quarterly dividend of $0.676 per share, payable on March 1, 2025 [9] Operational Highlights - Wyoming Electric set a new all-time peak load of 318 megawatts, surpassing the previous peak of 314 megawatts [6] - The initial phase of the Ready Wyoming electric transmission expansion project was completed, adding approximately $40 million to the rate base [6] Credit Ratings - Black Hills Corp. maintained solid investment-grade credit ratings, with Fitch affirming a long-term issuer rating of BBB+ and Moody's affirming a Baa2 rating [11]

Core Insights - Black Hills Corp. reported strong financial results for Q4 and the full year 2024, with operating income of $163.3 million for Q4 and $503.1 million for the full year, representing increases from $136.5 million and $472.7 million in 2023 respectively [1][11][19] - The company achieved a net income available for common stock of $98.1 million for Q4 and $273.1 million for the full year, compared to $79.6 million and $262.2 million in 2023 [1][11][19] - Earnings per share (EPS) for 2024 were $3.91, benefiting from $0.82 per share from new rates, rider recovery, and customer growth [1][5] Financial Performance - Operating income increased by 19.6% in Q4 2024 compared to Q4 2023, and by 6.4% for the full year [1][19] - Net income for Q4 2024 was up 23.2% year-over-year, while full-year net income increased by 4.0% [1][19] - The company’s revenue for Q4 2024 was $597.1 million, slightly up from $591.7 million in Q4 2023, while full-year revenue decreased to $2,127.7 million from $2,331.3 million in 2023 [11][19] Growth Initiatives - Black Hills Corp. plans to increase its five-year capital forecast by 10% to $4.7 billion, with $1.0 billion allocated for 2025 [3][5] - The company has a pipeline of data center demand exceeding one gigawatt from existing customers over the next 10 years, with approximately 500 megawatts expected to be served by the end of 2029 [3][5] - The company initiated a 2025 earnings guidance range of $4.00 to $4.20 per share [10] Regulatory and Infrastructure Developments - The company reached constructive settlements for natural gas rate reviews in Arkansas and Iowa, contributing to its solid financial position [2][5] - Black Hills invested approximately $800 million in electric and gas infrastructure, including the first phase of the Ready Wyoming transmission expansion project, the largest in its history [2][5] - Colorado Electric received final approval for its Clean Energy Plan, which includes 350 megawatts of new renewable generation resources [9] Dividend and Shareholder Returns - The company increased its quarterly dividend by 4%, marking 55 consecutive years of annual dividend increases [5][9] - Black Hills issued 3.3 million shares of new common stock for net proceeds of $182 million during 2024 [9] Credit Ratings - Black Hills maintained solid investment-grade credit ratings, with Fitch affirming a long-term issuer rating of BBB+ and Moody's affirming a Baa2 rating [12]