NYSE$BKH

Black Hills Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Black Hills Corp. reported second-quarter results, driven by new rates, rider recovery, and a state income tax true-up, while being impacted by inflation and higher interest expense.

Black Hills Corp. reported a net income of $23.1 million, or $0.35 per share, for the second quarter of 2023. The results were driven by new rates, rider recovery, and a state income tax true-up, but were offset by the impact of inflation on operating expenses and higher interest expense. The company reaffirmed its 2023 earnings guidance.

  • Earnings per share for the second quarter was $0.35.
  • New rates, rider recovery and a state income tax true-up drove the earnings.
  • Inflation on higher year-over-year operating expenses and higher interest expense impacted financial results.
  • The company reaffirms its guidance for 2023 earnings per share to be in the range of $3.65 to $3.85.

Headline financials

Total Revenue

$411M

Previous: $474M-13.3%
EPS (adj)

$0.35

Previous: $0.40-12.5%
Capital Expenditures

-$262M

Previous: -$294M+10.9%
Free Cash Flow

-$239M

Previous: -$258M+7.5%
Net Income

$23.1M

Previous: $35.8M-35.7%
Operating Income

$63.5M

Previous: $72.4M-12.3%
Gross Profit

$411M

Previous: $474M-13.3%
Cash & Equivalents

$153M

Previous: $10.2M+1393.5%
Total Assets

$9.41B

Previous: $9.13B+3.0%
Stock-Based Comp

$2.51M

Previous: $196K+1181.1%

Revenue & EPS history

Black Hills · Revenue · Quarterly

$411M

Q2 2023-13.3%vs Q2 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Black Hills · $411M total across 3 segments · Q2 2023

  • Gas Utilities
    $223M-18.8%
  • Electric Utilities
    $193M-5.5%
  • Corporate and Other
    -$4.5M

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.

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

  • Capital investment of approximately $615 million
  • 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
  • Ongoing volatility in inflation and rising interest rate environments

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 Q2 2023

Historical avgQ2 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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