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 announced it will not participate in CenterPoint Energy's sale of gas distribution assets in Arkansas and Oklahoma, deeming them non-strategic.
The company emphasizes growth through its $2.9 billion capital investment program from 2020 to 2024, focusing on organic customer-oriented projects. President and CEO Linn Evans stated acquisitions will only be considered if they are highly strategic.
Black Hills Corp. (NYSE: BKH) has completed its $79 million Corriedale Wind Energy Project in Cheyenne, Wyoming. This 52.5-megawatt facility is producing renewable energy for customers enrolled in the Renewable Ready Program. The project features 21 wind turbines and utilizes advanced digital wind power tools to enhance performance by up to 7%. Black Hills now operates approximately 281 megawatts of renewable wind generation, constituting 25% of its total generation capacity, benefiting local communities through job creation and taxes.
Black Hills Corp. (NYSE: BKH) reported a strong third quarter of 2020, achieving net income of $36.3 million, or $0.58 per share, marking a 32% increase year-over-year. The company raised its 2020 EPS guidance range to $3.60-$3.70 and introduced a 2021 guidance of $3.75-$3.95. A $239 million increase in its capital investment forecast to $2.9 billion was also announced. Additionally, the quarterly dividend was raised by 5.6% to $0.565 per share, continuing a streak of annual dividend increases. This robust performance reflects customer growth and favorable weather conditions.
Black Hills Corp (NYSE: BKH) announced that on November 5, it will release new greenhouse gas (GHG) emission reduction goals for its utility operations, along with an updated Corporate Sustainability Report. This follows the company's commitment to advancing its environmental, social, and governance (ESG) disclosures. Additionally, the leadership team, including President and CEO Linn Evans, will present at the Virtual 2020 Edison Electric Institute Financial Conference on November 9 and 10, with a presentation scheduled for November 10 at 3 p.m. EST.
Black Hills Corp. (BKH) has announced a quarterly dividend of 56.5 cents per share, marking a 5.6% increase over the prior quarter.
This declaration celebrates the company's 50th consecutive year of annual dividend increases, reinforcing its commitment to returning value to shareholders.
The dividend will be paid on December 1, 2020, to common shareholders of record as of November 17, 2020. With this, Black Hills has maintained a consistent dividend payout for 78 years.
Black Hills Corp. (NYSE: BKH) announced a significant development with the approval of a 60-megawatt power purchase agreement from the Federal Energy Regulatory Commission. The agreement allows Cheyenne Light to secure base load capacity from the Wygen I power plant, ensuring energy provision until December 31, 2032. This contract addresses a generation shortfall and supports grid stability as Cheyenne Light integrates more renewable resources. The Wygen I plant offers reliable, low-cost energy, benefitting both the utility and local employment.
On Nov. 2, 2020, after market close, Black Hills Corp. (NYSE: BKH) will announce its Q3 2020 earnings. A conference call and webcast is scheduled for Nov. 3, 2020, at 11 a.m. EST to discuss financial results. Black Hills Corp., based in Rapid City, South Dakota, provides natural gas and electric service to approximately 1.28 million customers across eight states. Interested parties can access the live webcast via their investor relations portal. A replay will be available afterward.
Black Hills Corp. (NYSE: BKH) announced the appointment of Barry M. Granger and Scott M. Prochazka to its board of directors, effective October 1, 2020. This decision coincides with a temporary expansion of the board's size from 10 to 12 directors, anticipating future retirements. Chairman Steven Mills expressed confidence that their expertise will enhance board effectiveness. Granger brings over 35 years of experience from DuPont and Dow Chemical, while Prochazka has a strong background in regulated utilities, previously serving as CEO of CenterPoint Energy, emphasizing innovation and customer focus.
Black Hills Corp. (NYSE: BKH) submitted a rate review application to the Colorado Public Utilities Commission on September 11, 2020, seeking $13.5 million in annual revenue to recover investments in natural gas infrastructure. The proposal includes a five-year safety and integrity rider. Since July 2018, Colorado Gas has invested over $105 million in system upgrades, serving 192,000 customers with a 7,000-mile pipeline network. The company aims to implement new rates by Q2 2021, proposing a capital structure of 50% equity and 50% debt with a return on equity of 9.95%.
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