Black Hills (US:BKH) Newsfilter·2025-02-05 21:15Core Insights - Black Hills Corp. reported strong financial results for Q4 and the full year 2024, with operating income of $163.3 million for Q4 and $503.1 million for the full year, representing increases from $136.5 million and $472.7 million in 2023 respectively [1][10] - The company achieved a net income available for common stock of $98.1 million for Q4 and $273.1 million for the full year, compared to $79.6 million and $262.2 million in 2023, indicating solid growth [1][10] - Earnings per share (EPS) for 2024 were $3.91, benefiting from new rates, rider recovery, and customer growth, with a projected EPS range of $4.00 to $4.20 for 2025 [1][10][5] Financial Performance - Operating income for Q4 2024 was $163.3 million, up from $136.5 million in Q4 2023, while full-year operating income increased to $503.1 million from $472.7 million [1][10] - Net income available for common stock rose to $98.1 million in Q4 2024 from $79.6 million in Q4 2023, and for the full year, it increased to $273.1 million from $262.2 million [1][10] - The diluted EPS for 2024 was $3.91, reflecting a 4.3% growth from the midpoint of 2023 earnings guidance [5][12] Growth Initiatives - The company invested approximately $800 million in electric and gas infrastructure, including the Ready Wyoming transmission expansion project, the largest in its history [2] - Black Hills Corp. increased its five-year capital forecast by 10% to $4.7 billion through 2029, with a pipeline of data center demand exceeding one gigawatt expected within the next 10 years [3][5] - The company anticipates that approximately 500 megawatts of data center demand will be served by the end of 2029, significantly contributing to EPS growth [3] Regulatory and Rate Reviews - Black Hills Corp. reached constructive settlements for natural gas rate reviews in Arkansas and Iowa, which contributed to the increase in net income [2] - The company has ongoing rate review requests in multiple states, including Kansas Gas seeking $118 million for system investments and inflationary impacts [9] Dividend and Shareholder Returns - The company increased its quarterly dividend by 4%, marking 55 consecutive years of annual dividend increases [5][9] - The board approved a quarterly dividend of $0.676 per share, payable on March 1, 2025 [9] Operational Highlights - Wyoming Electric set a new all-time peak load of 318 megawatts, surpassing the previous peak of 314 megawatts [6] - The initial phase of the Ready Wyoming electric transmission expansion project was completed, adding approximately $40 million to the rate base [6] Credit Ratings - Black Hills Corp. maintained solid investment-grade credit ratings, with Fitch affirming a long-term issuer rating of BBB+ and Moody's affirming a Baa2 rating [11]