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Sep 30, 2024

Black Hills Q3 2024 Earnings Report

Black Hills Corp. reported earnings for Q3 2024, which benefited from new rates, rider recovery and customer growth, partially offset by higher operating expenses, unplanned generation outages, and increased interest expense.

Key Takeaways

Black Hills Corp. announced its Q3 2024 financial results, with earnings of $0.35 per share. The company reaffirmed its 2024 earnings guidance range of $3.80 to $4.00 per share. New customer rates were approved and implemented at the Arkansas natural gas utility, and a settlement agreement was filed for new customer rates at the Iowa natural gas utility. Key financing activities for 2024 were completed, achieving the long-term capitalization target.

Reaffirmed 2024 earnings guidance range of $3.80 to $4.00 per share.

Received approval of and implemented new customer rates at Arkansas natural gas utility.

Filed settlement agreement for new customer rates at Iowa natural gas utility.

Completed key financing activities for 2024 and achieved long-term capitalization target.

Total Revenue
$402M
Previous year: $407M
-1.4%
EPS
$0.35
Previous year: $0.67
-47.8%
Gross Profit
$307M
Previous year: $163M
+88.8%
Cash and Equivalents
$12.5M
Previous year: $594M
-97.9%
Free Cash Flow
-$86M
Previous year: -$9.05M
+850.3%
Total Assets
$9.72B
Previous year: $9.93B
-2.2%

Black Hills

Black Hills

Black Hills Revenue by Segment

Forward Guidance

Black Hills reaffirms its guidance issued on Feb. 7, 2024, for 2024 earnings per share available for common stock to be in the range of $3.80 to $4.00.

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 our generating facilities
  • Production tax credits of approximately $18 million associated with wind generation assets.

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