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Black Hills Corp. Reports 2024 Fourth-Quarter and Full-Year Results and Initiates 2025 Earnings Guidance
BKHBlack Hills (BKH) Newsfilter·2025-02-05 21:15

Core Insights - Black Hills Corp. reported strong financial results for Q4 and the full year 2024, with operating income of 163.3millionforQ4and163.3 million for Q4 and 503.1 million for the full year, representing increases from 136.5millionand136.5 million and 472.7 million in 2023 respectively [1][10] - The company achieved a net income available for common stock of 98.1millionforQ4and98.1 million for Q4 and 273.1 million for the full year, compared to 79.6millionand79.6 million and 262.2 million in 2023, indicating solid growth [1][10] - Earnings per share (EPS) for 2024 were 3.91,benefitingfromnewrates,riderrecovery,andcustomergrowth,withaprojectedEPSrangeof3.91, benefiting from new rates, rider recovery, and customer growth, with a projected EPS range of 4.00 to 4.20for2025[1][10][5]FinancialPerformance−OperatingincomeforQ42024was4.20 for 2025 [1][10][5] Financial Performance - Operating income for Q4 2024 was 163.3 million, up from 136.5millioninQ42023,whilefull−yearoperatingincomeincreasedto136.5 million in Q4 2023, while full-year operating income increased to 503.1 million from 472.7million[1][10]−Netincomeavailableforcommonstockroseto472.7 million [1][10] - Net income available for common stock rose to 98.1 million in Q4 2024 from 79.6millioninQ42023,andforthefullyear,itincreasedto79.6 million in Q4 2023, and for the full year, it increased to 273.1 million from 262.2million[1][10]−ThedilutedEPSfor2024was262.2 million [1][10] - The diluted EPS for 2024 was 3.91, reflecting a 4.3% growth from the midpoint of 2023 earnings guidance [5][12] Growth Initiatives - The company invested approximately 800millioninelectricandgasinfrastructure,includingtheReadyWyomingtransmissionexpansionproject,thelargestinitshistory[2]−BlackHillsCorp.increaseditsfive−yearcapitalforecastby10800 million in electric and gas infrastructure, including the Ready Wyoming transmission expansion project, the largest in its history [2] - Black Hills Corp. increased its five-year capital forecast by 10% to 4.7 billion through 2029, with a pipeline of data center demand exceeding one gigawatt expected within the next 10 years [3][5] - The company anticipates that approximately 500 megawatts of data center demand will be served by the end of 2029, significantly contributing to EPS growth [3] Regulatory and Rate Reviews - Black Hills Corp. reached constructive settlements for natural gas rate reviews in Arkansas and Iowa, which contributed to the increase in net income [2] - The company has ongoing rate review requests in multiple states, including Kansas Gas seeking 118millionforsysteminvestmentsandinflationaryimpacts[9]DividendandShareholderReturns−Thecompanyincreaseditsquarterlydividendby4118 million for system investments and inflationary impacts [9] Dividend and Shareholder Returns - The company increased its quarterly dividend by 4%, marking 55 consecutive years of annual dividend increases [5][9] - The board approved a quarterly dividend of 0.676 per share, payable on March 1, 2025 [9] Operational Highlights - Wyoming Electric set a new all-time peak load of 318 megawatts, surpassing the previous peak of 314 megawatts [6] - The initial phase of the Ready Wyoming electric transmission expansion project was completed, adding approximately $40 million to the rate base [6] Credit Ratings - Black Hills Corp. maintained solid investment-grade credit ratings, with Fitch affirming a long-term issuer rating of BBB+ and Moody's affirming a Baa2 rating [11]