Black Hills Corp. Reaffirms 2025 Earnings Guidance and Reports 2025 First-Quarter Results

Core Insights - Black Hills Corp. reported financial results for Q1 2025, showing operating income of $205 million, net income available for common stock of $134.3 million, and earnings per share (EPS) of $1.87, consistent with Q1 2024 [1][12][21] - The company reaffirmed its full-year earnings guidance, projecting a growth rate of 5% for 2025, with a long-term EPS growth target of 4% to 6% [2][4] Financial Performance - Revenue for Q1 2025 was $805.2 million, up from $726.4 million in Q1 2024, driven by new rates and increased demand [1][13] - Operating expenses increased to $600.2 million from $533.1 million, primarily due to higher fuel and purchased power costs [1][13] - Interest expense rose to $51.3 million from $44 million, reflecting higher interest rates [21] Regulatory and Growth Initiatives - The company implemented new electric rates in Colorado, resulting in an additional $17.5 million in annual revenue [7][8] - Black Hills is advancing regulatory reviews for gas rates in Nebraska and Kansas, seeking $35 million in new annual revenues in Nebraska [6][9] - The Ready Wyoming transmission expansion project, a 260-mile initiative, is on track for completion by year-end 2025, enhancing long-term cost stability and system resiliency [3][11] Operational Highlights - Wyoming Electric set new peak loads, reflecting a nearly 10% increase over 2024, driven by data center and blockchain growth [6][11] - The company is pursuing the addition of 350 megawatts of renewable generation resources in Colorado as part of its Clean Energy Plan [11][21] - Black Hills' gas utilities saw an operating income increase of $20.7 million, attributed to new rates and favorable winter weather [21][25] Future Outlook - The company expects to serve 500 megawatts of data center demand by the end of its five-year plan, with a projected earnings contribution of over 10% by 2028 [4][6] - Black Hills anticipates continued growth in its utility rate base and organic growth opportunities in its service territories [4][6] - The board approved a quarterly dividend of $0.676 per share, marking 55 consecutive years of increases [11][21]