NYSE$BKH

Black Hills Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Black Hills Corp. reported solid financial results and operational performance, with earnings per share increased year-to-date.

Black Hills Corp. announced financial results for Q3 2022, with net income available for common stock at $35.0 million, or $0.54 per share. The company reaffirmed its 2022 EPS guidance and initiated 2023 EPS guidance.

  • 2022 EPS guidance range of $3.95 to $4.15 reaffirmed
  • 2023 EPS guidance range of $4.00 to $4.20 initiated
  • 2022 to 2026 capital investment forecast increased $250 million to $3.5 billion
  • Net Zero by 2035 target for natural gas utilities announced

Headline financials

Total Revenue

$463M

Previous: $381M+21.6%
EPS (adj)

$0.54

Previous: $0.70-22.9%
Capital Expenditures

-$466M

Previous: -$498M+6.3%
Free Cash Flow

-$428M

Previous: -$454M+5.6%
Net Income

$37.8M

Previous: $44.1M-14.2%
Operating Income

$79.5M

Previous: $89.9M-11.6%
Gross Profit

$463M

Previous: $381M+21.6%
Cash & Equivalents

$11.7M

Previous: $10.2M+14.9%
Total Assets

$9.32B

Previous: $8.91B+4.6%
Stock-Based Comp

$2.95M

Previous: $2.2M+33.8%

Revenue & EPS history

Black Hills · Revenue · Quarterly

$463M

Q3 2022+21.6%vs Q3 2021
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Black Hills · $467M total across 2 segments · Q3 2022

  • Electric Utilities
    $259M
  • Gas Utilities
    $208M

Forward guidance

Black Hills affirms its guidance for 2022 earnings per share available for common stock to be in the range of $3.95 to $4.15 and initiated its guidance for 2023 earnings per share available for common stock to be in the range of $4.00 to $4.20.

Tailwinds

  • Normal weather conditions for the remainder of the year 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
  • Adjusted contract price for Wygen I power purchase agreement beginning Jan. 1, 2022

Headwinds

  • 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 for capital additions, plant retirements and decommissioning, fuel, transmission, purchased power, and other operating costs and the timing in which new rates would go into effect
  • Our ability to complete our capital program in a cost-effective and timely manner
  • Our ability to execute on our strategy
  • Our ability to successfully execute our financing plans

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 Q3 2022

Historical avgQ3 2022

+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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