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) has appointed Courtney Hebert as vice president-corporate controller and chief risk officer, effective immediately. Hebert, who has over 20 years of financial experience, previously served as assistant controller and chief risk officer and has a strong background in utility roles and compliance. This appointment follows Kimberly Nooney's promotion to chief financial officer, reinforcing the company's succession strategy within its finance team. Both leaders aim to drive the company's long-term growth strategy.
Black Hills Corp. (NYSE: BKH) reported solid financial results for Q3 2022, with net income of $35 million and EPS of $0.54. Year-to-date EPS increased by 9% to $2.86. The company reaffirmed 2022 EPS guidance ($3.95-$4.15) and initiated 2023 guidance ($4.00-$4.20). Capital investments forecasted rose to $3.5 billion. A 5% dividend increase was announced, marking 52 years of consecutive raises. Key projects like the Ready Wyoming transmission expansion are set to enhance service and growth. The company aims for Net Zero emissions by 2035, doubling its prior target.
Black Hills Corp. (NYSE: BKH) announces CFO Richard Kinzley's retirement in mid-2023 after 23 years with the company. Vice President Kimberly Nooney will succeed him as CFO and Treasurer, effective April 1, 2023. Kinzley has played an essential role in the company's growth and capital allocation since becoming CFO in 2015. Nooney, a 26-year veteran at Black Hills, brings extensive experience in finance and accounting. The smooth transition is expected to support the company's future growth as it navigates to a new energy landscape.
Black Hills Corp. (NYSE: BKH) has announced a quarterly dividend increase of $0.625 per share, up 5.0% from the previous quarter. Shareholders of record as of Nov. 17, 2022, will receive the payment on Dec. 1, 2022. This marks 52 consecutive years of dividend increases, affirming the company's commitment to delivering long-term value to its customers and shareholders. Additionally, it represents 80 years of annual dividends since its inception in February 1942.
Black Hills Corp. (NYSE: BKH) announced a significant step forward with the Wyoming Public Service Commission's approval for its $260 million transmission expansion project, known as Ready Wyoming. This 260-mile project aims to meet the growing energy demands of Wyoming customers, enhance electric system resiliency, and stabilize long-term pricing. Construction is set to begin in 2023, with completion expected in phases through 2025, providing over $100 million in economic benefits and up to 1,400 jobs in the region.
On October 11, 2022, Black Hills Corp. (NYSE: BKH) submitted a rate review application to the Colorado Public Utility Commission, seeking $12.3 million in new annual revenue. This request follows over $120 million invested in safety and system integrity for its natural gas pipeline infrastructure since 2017. The application proposes a capital structure of 52% equity and a 12.25% return on equity, with new rates aimed for implementation by July 16, 2023. This move underscores the company's commitment to delivering safe and reliable natural gas service to customers.
Black Hills Corp. (NYSE: BKH) announced that its Arkansas utility, Black Hills Energy, has received approval from the Arkansas Public Service Commission for new rates to recover over $220 million in investments since 2018. The new rates, starting mid-October 2022, are expected to generate an estimated $8.8 million in annual revenue. The commission approved a capital structure of 45% equity and 55% debt, as well as a return on equity of 9.6%. The plan includes a Safety and Integrity Rider to enhance infrastructure safety and supports the company’s goal of Net Zero emissions by 2035.
Black Hills Corp. (NYSE: BKH) will report its third quarter earnings for 2022 on November 2, after market close. A live conference call and webcast are scheduled for November 3 at 11 a.m. EDT. The company, based in Rapid City, South Dakota, serves 1.3 million customers across eight states. Interested parties can access the webcast through the company's Investor Relations section on their website. The company focuses on delivering energy solutions and aims to be the partner of choice for its customers.
Black Hills Corp. (BKH) reported second quarter 2022 net income of $33.4 million ($0.52 EPS), up from $25.2 million ($0.40 EPS) in Q2 2021. For the first half, net income reached $150.9 million ($2.33 EPS), compared to $121.5 million ($1.93 EPS) year-over-year. The results were bolstered by new rates and a one-time $0.12 per share benefit from Winter Storm Uri costs. The company aims for a 90% reduction in greenhouse gas emissions by 2030 and has advanced renewable energy projects. BKH maintains its 2022 EPS guidance of $3.95 to $4.15, despite challenges from inflation and supply chain issues.
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