Black Hills (US:BKH)2024-11-07 16:39Financial 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].