Black Hills (US:BKH)2025-05-08 15:48Financial Performance - Net income available for common stock rose by $6.4 million to $134.3 million, with diluted earnings per share remaining stable at $1.87 [118]. - Total revenue for the three months ended March 31, 2025, was $236.7 million, an increase of 6.8% compared to $222.2 million in the same period of 2024 [131]. - The Gas Utilities segment reported revenue of $572.4 million for Q1 2025, up 12.5% from $508.7 million in Q1 2024 [139]. - Total earnings increased by $27.3 million to $249.3 million for the three months ended March 31, 2025, primarily due to the sale of 2024 PTCs in January 2025 [159]. Operating Income - Electric Utilities operating income decreased by $10.3 million to $54.3 million due to higher operating expenses and unplanned generation outages [120]. - Gas Utilities operating income increased by $20.7 million to $151.5 million, driven by new rates and favorable winter heating season weather [120]. - Electric Utility margin increased by $2.1 million to $169.5 million, supported by retail customer growth and new rates [126]. - The Gas Utility margin increased by $33.0 million, driven by new rates and rider recovery contributing $21.5 million [140]. Customer and Sales Metrics - The company has a total of 1.35 million customers across eight states, focusing on operational excellence and growth strategies [108]. - Quantities sold decreased from 1,780.0 GWh in Q1 2024 to 1,889.4 GWh in Q1 2025, reflecting a growth of 6.1% [131]. - Total generated and purchased electricity decreased from 1,378.1 GWh in Q1 2024 to 1,287.4 GWh in Q1 2025, a decline of 6.6% [133]. Capital and Investment Activities - Capital expenditures for the three months ended March 31, 2025, were $162 million, with forecasts of $1,002 million for 2026 [165]. - Net cash used in investing activities decreased by $21.7 million to $155.2 million, primarily due to lower capital expenditures driven by project timing [158]. - The company plans to renew its Equity Distribution Sales Agreement in 2025 to fund its capital plan and strategic objectives [154]. Debt and Liquidity - The company’s total debt as of March 31, 2025, was $4,311.5 million, a slight decrease from $4,384.0 million at the end of 2024 [153]. - The availability of liquidity increased to $693.2 million as of March 31, 2025, from $628.8 million at the end of 2024 [153]. - Interest expense increased by $7.3 million to $51.3 million, primarily due to higher interest rates [120]. Cash Flow and Dividends - Net cash provided by operating activities decreased by $5.6 million to $227.8 million for the three months ended March 31, 2025, compared to $233.4 million in 2024 [157]. - Net cash used in financing activities increased by $62.1 million to $81.9 million, primarily due to increased debt repayments and higher dividends paid [160]. - Dividends paid on common stock totaled $48.6 million for the three months ended March 31, 2025, equivalent to $0.676 per share [167]. Operational Challenges - The company experienced unplanned outages at Wygen III, impacting coal generation and purchases during the quarter [137]. - Net outflows from changes in operating assets and liabilities increased by $35.0 million, primarily due to fluctuations in commodity prices and weather conditions [159]. Credit Ratings - The company’s credit ratings remain stable, with S&P rating at BBB+ and Moody's at Baa2 [162]. - The company has not experienced any triggering events related to its credit ratings that would affect its financial obligations [163].