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 of Black Hills Corporation
Black Hills Corporation (NYSE: BKH) is a vertically integrated energy company headquartered in Rapid City, South Dakota. With a mission to "improve life with energy" and a vision to be "the energy partner of choice," Black Hills serves approximately 1.35 million natural gas and electric utility customers across eight U.S. states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The company operates through two primary segments: regulated utilities and non-regulated energy businesses, making it a key player in the energy sector.
Core Business Segments
Regulated Utilities
The regulated utilities segment forms the backbone of Black Hills’ operations, providing essential electric and natural gas services to residential, commercial, industrial, and municipal customers. This segment accounts for the majority of the company’s revenue, reflecting its stable and predictable cash flows. Black Hills operates electric utility systems that generate, transmit, and distribute electricity, as well as gas utility systems that deliver natural gas through extensive pipeline networks. The company’s focus on customer satisfaction is evident in its commitment to reliability, safety, and innovative energy solutions tailored to meet diverse customer needs.
Non-Regulated Energy Businesses
In addition to its regulated operations, Black Hills engages in non-regulated activities such as wholesale electricity generation and the production of natural gas, oil, and coal. These businesses complement its utility operations, providing additional revenue streams and strategic flexibility. However, they are subject to market volatility and regulatory scrutiny, which can impact profitability. The company’s wholesale electricity generation operations focus on serving both internal utility needs and external market demands, leveraging its expertise in energy production.
Geographic and Market Diversification
Black Hills’ operations span eight states, offering regional diversification that mitigates risks associated with localized economic or regulatory challenges. Its customer base is equally diverse, ranging from individual households to large-scale industrial facilities and municipal entities. This broad market reach enhances the company’s resilience and positions it as a vital energy provider in its service areas.
Strategic Initiatives and Growth
Black Hills is actively pursuing growth through infrastructure investments, regulatory rate reviews, and customer-focused initiatives. The company has outlined ambitious plans to expand its clean energy portfolio, aiming to reduce emissions by 80% by 2030 through its Clean Energy Plan. This includes adding renewable energy resources, modernizing infrastructure, and enhancing grid reliability. Additionally, Black Hills is leveraging its innovative energy solutions to attract high-demand customers such as data centers, which are increasingly seeking reliable and sustainable energy options.
Regulatory Environment
Operating in a highly regulated industry, Black Hills works closely with state and federal regulators to ensure cost recovery and secure funding for critical infrastructure projects. The company’s proactive approach to regulatory engagement supports its ability to maintain financial stability while meeting the evolving needs of its customers and communities.
Challenges and Opportunities
While Black Hills benefits from stable utility operations, it faces challenges such as regulatory complexities, weather-related demand fluctuations, and the transition to cleaner energy sources. However, its strategic focus on sustainability, customer engagement, and regional diversification positions it to capitalize on emerging opportunities in the energy sector, including the growing demand for renewable energy and advanced grid solutions.
Conclusion
Black Hills Corporation is a growth-oriented, customer-focused utility company with a strong presence in the U.S. energy market. By balancing its regulated utility operations with non-regulated energy businesses, the company offers a unique value proposition. Its commitment to innovation, sustainability, and operational excellence underscores its role as a reliable energy partner for customers and communities alike.
Black Hills Corp. (NYSE: BKH) announced a quarterly dividend of $0.565 per share, payable on Sept. 1, 2021, to shareholders of record by the close of business on Aug. 18, 2021.
The company will also disclose its second quarter earnings on Aug. 3, 2021, with a live conference call scheduled for Aug. 4, 2021, at 11 a.m. EDT. Investors can access the webcast through the company's website.
Black Hills Corp. (NYSE: BKH) will report its 2021 Q2 earnings on August 3, 2021, after market closure. A live conference call and webcast are scheduled for August 4, 2021, at 11 a.m. EDT to discuss the financial results. The company serves 1.3 million customers across eight states in the U.S. Interested participants can access the webcast via the company's website under the Investor Relations section. Call-in details for participants without internet access are also provided for the live broadcast.
Black Hills Corp. (NYSE: BKH) announced the filing of its 2021 Integrated Resource Plan (IRP) for its South Dakota and Wyoming Electric utilities. This comprehensive plan, shaped by extensive data analysis and stakeholder input, aims to meet long-term energy needs over a 20-year horizon while enhancing grid resilience and reliability. Key proposals include adding 100 megawatts of renewable generation, converting a coal plant to natural gas, and considering up to 20 megawatts of battery storage, all supporting a 70% reduction in greenhouse gas emissions by 2040.
Black Hills Corp. (NYSE: BKH) announced rate review applications for its natural gas utilities in Colorado and Iowa to recover investments in infrastructure. In Colorado, the request is for $14.6 million in annual revenue following $144 million in system upgrades. Iowa's application seeks $8.3 million after a $250 million investment over a decade. The company aims to implement new rates in early 2022, with a focus on safety and clean energy goals, while recent performance showcased the effectiveness of these investments during extreme weather conditions.
Black Hills Corp. has released its 2020 Community Impact Report, showcasing a commitment to community support amid unprecedented challenges. The company contributed $5.6 million to various non-profit partners and engaged employees in volunteer activities, with nearly 45% pledging $780,000 to local United Way organizations. In total, 1.3 million utility customers were served across eight states, with a direct economic impact of $1.4 billion.
Black Hills Corp. (NYSE: BKH) has filed a rate review application with the Kansas Corporation Commission, seeking an increase of $5.3 million in annual revenues. The utility has invested around $130 million in natural gas infrastructure over the past seven years to enhance safety and reliability, directly responding to demand issues during extreme weather conditions. Additionally, the company seeks renewal of its Gas System Reliability Surcharge, pivotal for maintaining investments. If approved, the new rates are expected in Q1 2022 and will shift approximately $4.9 million of rider revenue to base rates.
Black Hills Corp. reported Q1 2021 net income of $96.3 million ($1.54 EPS), marking a slight increase from $93.2 million ($1.51 EPS) in Q1 2020. The financial results were impacted by Winter Storm Uri, which had a $0.15 adverse EPS effect, primarily from non-recoverable fuel costs. Despite this, the company is reaffirming its 2021 EPS guidance of $3.80 to $4.00 and is on track for a five-year capital plan exceeding $3 billion. Ongoing efforts include advancing renewable energy initiatives and managing costs related to the storm.
Black Hills Corporation has joined the ONE Future Coalition, aimed at reducing methane emissions from natural gas operations to 1% or less by 2025. Serving over 1.3 million customers across eight states, Black Hills Energy is positioned to contribute significantly to this initiative. The coalition, representing over 15% of the U.S. natural gas value chain, has already surpassed its methane intensity goals. Black Hills Energy's commitment to sustainability aligns with its mission to provide reliable energy, enhancing its corporate reputation and market stance.
Black Hills Corp. (NYSE: BKH) announced a quarterly dividend of $0.565 per share, payable on June 1, 2021, to shareholders of record by May 18, 2021. The company will release its first quarter 2021 earnings on May 4, 2021, after market close, followed by a conference call on May 5, 2021, at 11 a.m. EDT to discuss financial results. Black Hills serves 1.3 million customers across eight states, emphasizing its commitment to being a customer-focused and growth-oriented utility company.
Black Hills Corp. (NYSE:BKH) will conduct its Annual Meeting of Shareholders on April 27, 2021, at 9:30 a.m. MDT in Rapid City, South Dakota. Shareholders can attend in person or via a virtual platform due to the COVID-19 pandemic. Strict safety protocols will be in place, including social distancing and mask mandates. Voting will not be possible through the webcast; shareholders are encouraged to submit their proxy cards to ensure their votes are counted. The meeting's webcast will be archived for later access.
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