Welcome to our dedicated page for Black Hills news (Ticker: BKH), a resource for investors and traders seeking the latest updates and insights on Black Hills stock.
Overview
Black Hills Corp (NYSE: BKH) is a customer-focused, growth-oriented energy company known for its comprehensive and vertically integrated approach. As a longstanding provider in the energy utility arena, Black Hills delivers natural gas and electric services to residential, commercial, industrial, and municipal customers across eight states in the Midwest and mountainous regions of the United States. The company harnesses its depth in both regulated utility operations and non-regulated energy production, including wholesale electricity generation as well as the production of natural gas, oil, and coal. With its headquarters in Rapid City, South Dakota, Black Hills is committed to improving life with energy, cementing its role as a trusted energy partner of choice.
Business Segments and Operations
At its core, Black Hills Corp operates through distinct segments that ensure stability and growth. The Electric Utilities and Gas Utilities segments form the backbone of its regulated business model. This structure enables the company to deliver reliable energy solutions to over a million customers while also managing significant non-regulated operations, which include wholesale energy generation and fuel production. The dual emphasis on regulated services and integrated energy production allows Black Hills to optimize operational efficiencies and offer competitive, cost-effective energy solutions.
Service Areas and Market Reach
The company effectively serves a diverse portfolio of customers that include both residential consumers and large-scale industrial and data center clients. Its operations span eight states, serving regions that are characterized by demanding weather patterns and distinctive regulatory environments. This geographic diversity not only spreads risk but also positions Black Hills as a major player in both urban and rural energy markets. The company’s focus on critical infrastructure and strategic rate reviews reflects its long history of navigating complex regulatory landscapes.
Vertical Integration and Business Model
Black Hills’ business model is built on a vertically integrated structure that spans from energy production to end-user utility services. Vertical integration in the energy industry enables the firm to manage resources, control costs, and maintain system reliability across its operations. This integration is a cornerstone of its ability to offer innovative energy solutions with a focus on reliability, safety, and cost effectiveness. The company leverages its non-regulated businesses to complement its regulated utility operations, thereby balancing steady revenue from utility services with the dynamic opportunities presented in wholesale energy production and fuel generation.
Industry Position and Competitive Landscape
Within the competitive utility market, Black Hills distinguishes itself through its commitment to operational excellence and customer-focused strategies. The company’s longstanding presence in the energy market is bolstered by its deep operational expertise and historical investments in energy infrastructure. Its integrated business model allows for market resilience and adaptability in the face of evolving regulatory challenges, changing customer needs, and shifts in the energy industry. Black Hills continuously works within a regulated framework where adjustments through rate reviews and regulatory settlements are intrinsic to its operational success.
Operational Excellence and Regulatory Environment
Operating in multiple states means Black Hills Corp must navigate a complex mosaic of regulatory requirements. The firm’s expertise in rate recovery and regulatory filings ensures that it remains compliant while also securing the necessary funding to upgrade and maintain its infrastructure. Its operational excellence is evident in its strategic use of technology and innovative energy procurement models, which contribute to optimal performance and cost management. This approach has earned Black Hills a reputation for stability and dependability, even in challenging market conditions.
Customer-Centric Strategy and Service Reliability
At the heart of Black Hills Corp is an unwavering commitment to its customers. The company’s business strategy revolves around providing reliable energy services, modernizing its infrastructure, and consistently meeting the evolving demands of a diverse customer base. By integrating advanced energy solutions with traditional utility service delivery, Black Hills has established a foundation of trust and performance. Its emphasis on long-term customer relationships, backed by a history of steady service improvements, further reinforces its market position as the energy partner of choice.
Expertise and Industry Trends
Black Hills integrates industry-specific insights that stem from decades of experience in the energy sector. The company’s operations reflect the complex interconnections between regulatory mandates, market dynamics, and capital investment in energy infrastructure. With a clear understanding of seasonal demand patterns and the unique challenges of multi-state operations, Black Hills applies precise, analytical methods to ensure operational efficiency. Its capacity to manage both regulated utility operations and non-regulated energy assets demonstrates its comprehensive grasp of industry dynamics and intersectoral interdependencies.
Conclusion
Overall, Black Hills Corp exemplifies a balanced approach to modern energy service delivery. The company’s vertically integrated structure, customer-first ethos, and robust operational framework collectively enable it to serve as a critical conduit for energy needs in a rapidly evolving market. Whether through dependable utility services or managed wholesale energy production, Black Hills continues to set the standard for reliability and efficiency. This detailed overview mirrors the company’s enduring commitment to excellence and its strategic role in powering communities across the United States.
Black Hills Corp. (NYSE: BKH) has received approval from the Colorado Public Utilities Commission for new electric utility rates in Colorado. The approved rates will enable recovery of approximately $370 million in system investments made since 2016 and cover inflationary impacts on customer service costs.
The new rates, effective March 22, 2025, will generate approximately $17.0 million in new annual revenues. The approval is based on a weighted average cost of capital of 6.90%, with a capital structure ranging from 47-49% equity and 51-53% debt, and a return on equity between 9.3-9.5%. The company has until April 7, 2025, to file for rehearing, reargument, or reconsideration with the commission.
Black Hills Corp. (NYSE: BKH) has announced its upcoming investor engagement schedule for March 2025, featuring participation in four major industry conferences. The company will attend the Morgan Stanley Energy and Power Conference (March 3), Jefferies Power, Utilities and Clean Energy Conference (March 4), Siebert Williams Shank West Coast Utilities Conference (March 20), and Scotiabank Utilities and Renewables Conference (March 25).
Black Hills Corp., headquartered in Rapid City, South Dakota, serves 1.35 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Supporting materials for these investor meetings will be made available on the company's website prior to each conference.
Black Hills Corp. (NYSE: BKH) reported its 2024 financial results with earnings per share of $3.91, representing 4.3% growth from 2023's midpoint guidance. The company announced a 10% increase in its five-year capital forecast to $4.7 billion for 2025-2029.
Key highlights include a 4% increase in quarterly dividend, marking 55 consecutive years of dividend increases, and the initiation of 2025 earnings guidance at $4.00 to $4.20 per share. The company's data center load is projected to exceed one gigawatt from existing customers, with approximately 500 megawatts expected to be served by 2029.
Operating income for 2024 was $503.1 million, up from $472.7 million in 2023. Net income available for common stock reached $273.1 million in 2024, compared to $262.2 million in 2023. The company completed several regulatory initiatives, including rate review settlements in Arkansas and Iowa, while maintaining solid investment-grade credit ratings.
Black Hills Corp. (NYSE: BKH) has filed a rate review application with the Kansas Commission for its natural gas utility operations. The company is seeking to recover costs for infrastructure investments and operations serving 120,000 Kansas customers. Since 2021, Black Hills Energy has invested $118 million in safety, reliability, and system integrity across 4,765 miles of natural gas pipeline infrastructure in Kansas.
The application requests $17.2 million per year in additional revenue and approximately $4.4 million of rider revenue integration into base rates, totaling a $21.6 million annual base rate revenue increase. The request is based on a capital structure of 50.44% equity and 49.56% debt, with a 10.50% return on equity. The company aims to implement new rates in the second half of 2025.
Black Hills Corp. (NYSE: BKH) has announced a quarterly dividend increase of $0.026 per share, bringing the new dividend to $0.676 per share. The dividend will be payable on March 1, 2025, to shareholders of record as of February 18, 2025.
This increase marks the company's 55th consecutive year of annual dividend increases, representing the second-longest track record in the electric and natural gas utility industry. Black Hills has maintained an unbroken streak of 83 consecutive years of annual dividend payments since February 1942.
The company currently serves 1.34 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
Black Hills Corp. (NYSE: BKH) has successfully energized the first 12-mile segment and supporting substations of its Ready Wyoming transmission expansion project near Cheyenne. The complete 260-mile project, scheduled to be fully operational by end of 2025, will connect the company's Wyoming and South Dakota electric systems.
The project, which received Wyoming Public Service Commission approval in 2022, includes six new, replacement, or expanded substations and will interface with electricity markets to the east and west. It aims to reduce dependence on third-party transmission systems, stabilize long-term costs for customers, and support growing energy needs, particularly for data centers.
Ready Wyoming, the largest electric transmission project in Black Hills' history, spans five counties and approximately 300 landowners. The investment will be recovered through the company's transmission rider and is expected to contribute more than $100 million of economic benefit to the Wyoming economy.
Black Hills Corp. (NYSE: BKH) has announced it will release its 2024 fourth-quarter and full-year earnings after market close on Wednesday, February 5, 2025. The company will host a live conference call and webcast at 11 a.m. EST on Thursday, February 6, 2025, to discuss the financial results.
Investors can access the webcast through the company's website under the Investor Relations section or participate in the live broadcast via phone by registering at the provided link. A replay of the broadcast will be available for up to one year. Black Hills Corp. serves 1.34 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
Black Hills Corp (NYSE: BKH) announced that its Iowa natural gas utility received approval from the Iowa Utilities Commission for new rates. The settlement agreement aims to recover approximately $100 million of pipeline system investments made since 2021. The approved settlement will generate about $15 million in new annual revenues based on a weighted average cost of capital of 7.21%. Final approved rates will replace interim rates in January 2025, which have been in place since May 11, 2024.
Black Hills Corp (NYSE: BKH) reaffirmed its 2024 earnings guidance of $3.80 to $4.00 per share while reporting Q3 2024 results. The company posted earnings of $0.35 per share for Q3 2024, down from $0.67 in Q3 2023, and net income of $24.4 million, compared to $45.4 million in the prior year period. The decrease was partially offset by new rates, rider recovery and customer growth. The company received approval for new customer rates at Arkansas natural gas utility and filed a settlement agreement for Iowa gas utility rates. Black Hills completed its planned equity issuance for 2024, raising $182 million through 3.3 million new shares.
Black Hills Corp. (NYSE: BKH) has declared a quarterly dividend of $0.65 per share for common shareholders of record as of November 18, 2024, payable on December 1, 2024. The company will release its 2024 third quarter earnings after market close on November 6, 2024, followed by a live conference call and webcast on November 7, 2024, at 11 a.m. EST. Black Hills serves 1.34 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
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