Black Hills (US:BKH)2025-11-05 21:48Financial Performance - Net income available for common stock for Q3 2025 was $24.9 million, compared to $24.4 million in Q3 2024, while year-to-date net income was $186.6 million, up from $175.0 million in the same period last year [2][20]. - Adjusted EPS for Q3 2025 was $0.45, excluding $0.10 of merger-related costs, compared to $0.35 in Q3 2024; year-to-date adjusted EPS was $2.68, up from $2.52 in 2024 [3][4][20]. - Revenue for the three months ended September 30, 2025, was $430.2 million, a 7.1% increase from $401.6 million in the same period of 2024 [22]. - Operating income for the three months ended September 30, 2025, was $78.7 million, compared to $75.8 million in 2024, reflecting a 3.8% increase [22]. - For the nine months ended September 30, 2025, total revenue was $1,674.5 million, up from $1,530.6 million in the same period of 2024, representing a 9.4% increase [27]. - Total revenue for the nine months ended September 30, 2025, reached $706.3 million, up 7.0% from $659.8 million in 2024 [31]. Capital and Investment - The company is advancing a $4.7 billion five-year capital plan, which includes a 260-mile transmission expansion project expected to be completed by year-end 2025 [6][8]. - Black Hills Corp. completed a public debt offering of $450 million in Q3 2025, with proceeds used to repay $300 million of notes due in January 2026 [13]. - The company maintained solid investment-grade credit ratings, with Moody's affirming a Baa2 rating and S&P Global affirming a BBB+ rating [13]. Merger and Acquisition - The merger with NorthWestern Energy is anticipated to close in the second half of 2026, pending regulatory approvals filed in October 2025 [9][10]. - Black Hills plans to file a registration statement on Form S-4 with the SEC to register shares of common stock to be issued to NorthWestern stockholders in connection with the pending merger transaction [45]. - The definitive joint proxy statement/prospectus will be sent to stockholders of both Black Hills and NorthWestern regarding the merger transaction [45]. - Investors are urged to read the registration statement and joint proxy statement/prospectus for important information about the pending merger transaction [46]. - Information about directors and executive officers of both companies will be included in the joint proxy statement/prospectus related to the merger [47]. - Additional information regarding the interests of participants in the merger will be included in the joint proxy statement/prospectus when available [47]. Revenue Breakdown - Electric Utilities' revenue for the three months ended September 30, 2025, was $249.7 million, compared to $232.5 million in 2024, marking a 7.0% increase [29]. - Gas Utilities' revenue for the three months ended September 30, 2025, was $184.4 million, up from $173.6 million in 2024, reflecting a 6.8% increase [29]. - Colorado Electric revenue increased to $79.6 million in Q3 2025, a 6.3% rise from $74.9 million in Q3 2024 [31]. - South Dakota Electric revenue rose to $90.6 million in Q3 2025, a 5.3% increase from $86.0 million in Q3 2024 [31]. - Total quantities sold for the nine months ended September 30, 2025, were 5,749.6 GWh, compared to 5,435.1 GWh in 2024, reflecting a growth of 5.8% [31]. - Total revenue from gas utilities for the nine months ended September 30, 2025, was $979.9 million, a 10.8% increase from $884.2 million in 2024 [34]. Dividends and Shareholder Returns - A quarterly dividend of $0.676 per share was approved, representing 55 consecutive years of increases, the second-longest track record in the industry [13]. Operational Highlights - Electric Utilities' operating income decreased by $2.7 million primarily due to milder weather and higher operating expenses [26]. - Gas Utilities' operating income increased by $9.9 million, driven by new rates and rider recovery [26]. - The availability of coal generating facilities decreased to 77.3% in Q3 2025 from 90.7% in Q3 2024 [32]. - Retail revenue from residential customers increased to $86.0 million in Q3 2025, up 12.9% from $76.2 million in Q3 2024 [34]. Future Outlook - The company reaffirms its 2025 adjusted earnings guidance in the range of $4.00 to $4.20 per share, excluding merger-related costs [8][14]. - The company plans to discuss its financial results in a conference call on November 6, 2025 [38]. - Black Hills Corp. serves 1.35 million natural gas and electric utility customers across eight states [40].