NYSE$BKH

Black Hills Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Black Hills Corp. reported first quarter results, benefiting from new rates and rider recovery, the sale of Northern Iowa Windpower assets, customer growth, wholesale energy sales, and favorable weather.

Black Hills Corp. announced solid operational and financial results for Q1 2023, with earnings of $1.73 per share. The company benefited from new rates and rider recovery, gain on the sale of Northern Iowa Windpower assets, customer growth, wholesale energy sales and favorable weather. The company reaffirmed its 2023 earnings guidance.

  • Issued request for proposals for 100 megawatts of utility-owned renewable resources for South Dakota Electric
  • Received approval for Colorado Clean Energy Plan and expect ownership of 200 megawatts of renewable resources
  • Strengthened balance sheet, liquidity and credit metrics
  • Sold Iowa wind assets for net proceeds of $18.4 million and gain of $0.09 per share

Headline financials

Total Revenue

$921M

Previous: $824M+11.8%
EPS (adj)

$1.73

Previous: $1.82-4.9%
Capital Expenditures

-$119M

Previous: -$137M+12.9%
Free Cash Flow

-$5.02M

Previous: -$19.3M+73.9%
Net Income

$114M

Previous: $118M-2.9%
Operating Income

$175M

Previous: $173M+0.9%
Gross Profit

$921M

Previous: $824M+11.8%
Cash & Equivalents

$39.4M

Previous: $16.3M+141.1%
Total Assets

$9.46B

Previous: $9.13B+3.6%
Stock-Based Comp

$1.8M

Previous: $3.64M-50.5%

Revenue & EPS history

Black Hills · Revenue · Quarterly

$921M

Q1 2023+11.8%vs Q1 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Black Hills · $926M total across 2 segments · Q1 2023

  • Gas Utilities
    $707M+13.8%
  • Electric Utilities
    $219M+5.9%

Forward guidance

Black Hills reaffirms its guidance for 2023 earnings per share available for common stock to be in the range of $3.65 to $3.85 based on certain assumptions.

Tailwinds

  • Normal weather conditions within our utility service territories including temperatures, precipitation levels and wind conditions
  • Normal operations and weather conditions for planned construction, maintenance and/or capital investment projects
  • Constructive and timely outcomes of utility regulatory dockets
  • No significant unplanned outages at any of our generating facilities
  • Production tax credits of approximately $20 million associated with wind generation assets

Headwinds

  • Equity issuance of $140 million to $160 million through the at-the-market equity offering program
  • Interest expense of $180 million to $185 million, including debt refinancing activity
  • Total operating expense of $600 million to $610 million, excluding fuel, purchased power, cost of natural gas sold, depreciation, depletion and amortization
  • The accuracy of our assumptions on which our earnings guidance is based
  • Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and favorable rulings on periodic applications to recover costs

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.1%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.6%

Avg return

30 days after

59%

40 / 68 earnings

Positive

+6.7%

Q3 2020

Best reaction

-9.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+0.4%-1.7%
Q4 2025+0.9%-1.8%-0.3%
Q3 2025+4.6%+11.2%+8.0%
Q1 2025-4.8%-6.5%-7.4%
Q4 2024-0.3%-0.0%+0.0%
Q3 2024+1.3%+6.1%+5.3%
Q2 2024+0.6%-4.3%+0.3%
Q1 2024+1.5%+0.4%-5.5%
Q4 2023+2.7%+5.8%+7.9%
Q3 2023+3.2%+6.5%+10.6%
Q2 2023-2.3%-2.6%-7.5%
Q1 2023+2.6%+3.0%-2.9%
Q4 2022-9.8%-10.2%-14.6%
Q3 2022-3.3%-4.1%+8.2%
Q2 2022-0.9%-1.4%+0.1%
Q1 2022+2.6%+4.3%+2.9%
Q4 2021+0.7%-0.1%+7.1%
Q3 2021+0.1%-2.1%-3.2%
Q2 2021+2.8%+3.3%+6.0%
Q1 2021-2.3%-0.6%-1.6%
Q4 2020+0.5%-0.1%+3.8%
Q3 2020+6.7%+3.5%+7.3%
Q2 2020-0.1%+2.0%-3.0%
Q1 2020+0.5%+1.7%+3.1%
Q4 2019-0.2%+0.6%-4.0%
Q3 2019-6.7%-5.5%-3.5%
Q2 2019-2.4%-2.8%-0.3%
Q1 2019+3.4%+3.6%+5.7%
Q4 2018+4.5%+6.0%+9.6%
Q3 2018+3.0%+4.7%+12.4%
Q2 2018+0.1%+0.3%-1.3%
Q1 2018+2.6%+1.4%-0.8%
Q4 2017-3.0%-6.8%-7.6%
Q3 2017-5.0%-8.7%-9.6%
Q2 2017-0.1%+1.8%+1.2%
Q1 2017+1.4%+3.0%+5.9%
Q4 2016-1.9%-2.4%+3.5%
Q3 2016+0.1%+1.1%-3.4%
Q2 2016-2.8%-5.8%-5.9%
Q1 2016+1.9%
Q4 2015+3.0%
Q3 2015-1.3%
Q2 2015-0.5%
Q1 2015-0.5%
Q4 2014+2.9%
Q3 2014+1.0%
Q2 2014-3.3%
Q1 2014+0.1%
Q4 2013+2.4%
Q3 2013+2.9%
Q2 2013-1.4%
Q1 2013+5.3%
Q4 2012+0.8%
Q3 2012-3.8%
Q2 2012-3.3%
Q1 2012-1.2%
Q4 2011-1.1%
Q3 2011-0.3%
Q2 2011-5.7%
Q1 2010-6.6%
Q1 2011+1.6%
Q4 2008+2.5%
Q4 2010+2.5%
Q3 2010+1.2%
Q3 2009+1.2%
Q2 2009+1.2%
Q2 2010+1.2%
Q4 2009+1.2%

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