Black Hills (US:BKH)2025-11-06 16:57Customer Base and Operations - The company serves over 1.35 million customers across 800+ communities in eight states, focusing on operational excellence and growth[126] Financial Performance - For the three months ended September 30, 2025, Electric Utilities' operating income decreased by $2.7 million to $62.4 million, while Gas Utilities' operating income increased by $9.9 million to $20.8 million[141] - For the nine months ended September 30, 2025, Electric Utilities' operating income decreased by $10.3 million to $165.7 million, while Gas Utilities' operating income increased by $43.1 million to $207.7 million[141] - The company’s net income for the nine months ended September 30, 2025, was $191.1 million, an increase of $8.5 million compared to the same period in 2024[141] - Electric Utilities revenue for the three months ended September 30, 2025, was $249.7 million, an increase of 7.4% compared to $232.5 million in the same period of 2024[148] - Total revenue for the nine months ended September 30, 2025, was $706.3 million, up from $659.8 million in 2024, reflecting a 7.0% increase[154] - Gas Utilities revenue for the three months ended September 30, 2025, was $184.4 million, up 6.2% from $173.6 million in 2024[162] - The total revenue for Gas Utilities for the nine months ended September 30, 2025, was $979.9 million, an increase of 10.8% from $884.2 million in 2024[162] Margins and Expenses - Electric Utility margin (non-GAAP) for the three months ended September 30, 2025, increased by $2.3 million to $179.9 million from $177.6 million in 2024[149] - The Electric Utility margin for the nine months ended September 30, 2025, increased by $10.0 million to $514.1 million compared to $504.1 million in 2024[149] - Operations and maintenance expenses rose by $4.7 million to $69.8 million for the three months ended September 30, 2025, compared to $65.1 million in 2024[148] - Operations and maintenance expenses for Gas Utilities decreased by $4.5 million in Q3 2025 compared to Q3 2024, primarily due to lower employee-related expenses[163] Energy Generation and Demand - Wyoming Electric set a new all-time peak load of 379 MW on June 20, 2025, surpassing the previous peak of 314 MW set in January 2024[140] - Coal generation decreased to 556.8 GWh for the three months ended September 30, 2025, from 645.7 GWh in 2024, primarily due to unplanned outages[155] - Total purchased energy increased to 734.8 GWh for the three months ended September 30, 2025, compared to 516.1 GWh in 2024, driven by increased demand[156] - Total generated electricity for the nine months ended September 30, 2025, was 3,856.7 GWh, a decrease of 2.9% from 3,971.3 GWh in 2024[157] - Total purchased electricity for the nine months ended September 30, 2025, was 2,225.3 GWh, a 30.8% increase from 1,701.3 GWh in 2024[157] Debt and Capital Expenditures - Interest expense increased by $17.7 million for the nine months ended September 30, 2025, primarily due to higher interest rates on long-term debt[142] - Capital expenditures for the nine months ended September 30, 2025, totaled $(550.2) million, an increase of $19.7 million compared to $(530.5) million in 2024, primarily due to the Ready Wyoming and Lange II projects[180] - The company completed a public debt offering of $450 million on October 2, 2025, with net proceeds intended to repay $300 million of senior unsecured notes due January 2026[175] Equity and Liquidity - Total stockholders' equity as of September 30, 2025, was $3,768.0 million, compared to $3,501.5 million as of December 31, 2024, indicating a growth in equity[174] - Available liquidity as of September 30, 2025, was $642.0 million, slightly up from $628.8 million as of December 31, 2024[174] - The company's debt to capitalization ratio improved to 53.7% as of September 30, 2025, down from 55.6% at the end of 2024[174] Tax and Other Expenses - Income tax expense increased by $2.9 million primarily due to higher pre-tax income[147] - The effective tax rate for the three months ended September 30, 2025, was 13.5%, up from 10.0% in 2024, primarily due to non-deductibility of certain merger-related expenses[177] Merger Activity - The company is in the process of a merger with NorthWestern, which was agreed upon on August 18, 2025[130] - Operating loss for the three months ended September 30, 2025, increased to $(4.5) million, compared to $(0.2) million for the same period in 2024, primarily due to $8.4 million of NorthWestern merger-related costs[171] Sustainability and Corporate Responsibility - The company published its 2024 Corporate Sustainability Report, highlighting progress on major projects and climate goals[140]