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Jun 30, 2023
Black Hills Q2 2023 Earnings Report
Black Hills Corp. reported second-quarter results, driven by new rates, rider recovery, and a state income tax true-up, while being impacted by inflation and higher interest expense.
Key Takeaways
Black Hills Corp. reported a net income of $23.1 million, or $0.35 per share, for the second quarter of 2023. The results were driven by new rates, rider recovery, and a state income tax true-up, but were offset by the impact of inflation on operating expenses and higher interest expense. The company reaffirmed its 2023 earnings guidance.
Earnings per share for the second quarter was $0.35.
New rates, rider recovery and a state income tax true-up drove the earnings.
Inflation on higher year-over-year operating expenses and higher interest expense impacted financial results.
The company reaffirms its guidance for 2023 earnings per share to be in the range of $3.65 to $3.85.
Black Hills
Black Hills
Black Hills Revenue by Segment
Revenue by Segment
Electric Utilities Revenue
CapyFin.comGas Utilities Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
Black Hills reaffirms its guidance for 2023 earnings per share available for common stock to be in the range of $3.65 to $3.85.
Positive Outlook
- Normal weather conditions within our utility service territories including temperatures, precipitation levels and wind conditions
- Normal operations and weather conditions for planned construction, maintenance and/or capital investment projects
- Constructive and timely outcomes of utility regulatory dockets
- No significant unplanned outages at any of our generating facilities
- Production tax credits of approximately $20 million associated with wind generation assets
Challenges Ahead
- Capital investment of approximately $615 million
- Equity issuance of $140 million to $160 million through the at-the-market equity offering program
- Interest expense of $180 million to $185 million, including debt refinancing activity
- Total operating expense of $600 million to $610 million, excluding fuel, purchased power, cost of natural gas sold, depreciation, depletion and amortization
- Ongoing volatility in inflation and rising interest rate environments
Revenue & Expenses
Visualization of income flow from segment revenue to net income