•
Sep 30, 2022

Black Hills Q3 2022 Earnings Report

Black Hills Corp. reported solid financial results and operational performance, with earnings per share increased year-to-date.

Key Takeaways

Black Hills Corp. announced financial results for Q3 2022, with net income available for common stock at $35.0 million, or $0.54 per share. The company reaffirmed its 2022 EPS guidance and initiated 2023 EPS guidance.

2022 EPS guidance range of $3.95 to $4.15 reaffirmed

2023 EPS guidance range of $4.00 to $4.20 initiated

2022 to 2026 capital investment forecast increased $250 million to $3.5 billion

Net Zero by 2035 target for natural gas utilities announced

Total Revenue
$463M
Previous year: $381M
+21.5%
EPS
$0.54
Previous year: $0.7
-22.9%
Gross Profit
$144M
Previous year: $149M
-3.7%
Cash and Equivalents
$11.7M
Previous year: $10.2M
+14.9%
Free Cash Flow
-$120M
Previous year: -$73M
+64.8%
Total Assets
$9.32B
Previous year: $8.91B
+4.6%

Black Hills

Black Hills

Black Hills Revenue by Segment

Forward Guidance

Black Hills affirms its guidance for 2022 earnings per share available for common stock to be in the range of $3.95 to $4.15 and initiated its guidance for 2023 earnings per share available for common stock to be in the range of $4.00 to $4.20.

Positive Outlook

  • Normal weather conditions for the remainder of the year 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
  • Adjusted contract price for Wygen I power purchase agreement beginning Jan. 1, 2022

Challenges Ahead

  • The accuracy of our assumptions on which our earnings guidance is based
  • Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and favorable rulings on periodic applications to recover costs for capital additions, plant retirements and decommissioning, fuel, transmission, purchased power, and other operating costs and the timing in which new rates would go into effect
  • Our ability to complete our capital program in a cost-effective and timely manner
  • Our ability to execute on our strategy
  • Our ability to successfully execute our financing plans

Revenue & Expenses

Visualization of income flow from segment revenue to net income