Black Hills (BKH) - 2024 Q4 - Annual Results

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].