NYSE$BKH

Black Hills Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Black Hills Corp. reported financial results, impacted by record warm weather, but offset by regulatory progress and cost management.

Black Hills Corp. reported Q4 2021 earnings of $1.11 per share, impacted by record warm weather. The company reaffirmed its 2022 earnings guidance and extended its 5% to 7% earnings per share growth target through 2026.

  • Black Hills Corp. reaffirmed its earnings guidance for 2022.
  • The company is extending its 5% to 7% earnings per share growth target for 2023 through 2026.
  • The company plans to invest more than $3.2 billion over the next five years.
  • Constructive settlements for natural gas rate reviews in Colorado, Iowa and Kansas were approved.

Headline financials

Total Revenue

$563M

Previous: $486M+15.6%
EPS (adj)

$1.11

Previous: $1.23-9.8%
Capital Expenditures

$180M

Previous: $231M-22.4%
Free Cash Flow

-$99.4M

Previous: -$109M+8.8%
Net Income

$74.3M

Previous: $77.2M-3.8%
Operating Income

$114M

Previous: $126M-9.5%
Gross Profit

-$258M

Previous: $181M-242.5%
Cash & Equivalents

$8.92M

Previous: $6.36M+40.4%
Total Assets

$9.13B

Previous: $8.09B+12.9%
Stock-Based Comp

$2.41M

Previous: $2.68M-10.0%

Revenue & EPS history

Black Hills · Revenue · Quarterly

$563M

Q4 2021+15.6%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Black Hills · $567M total across 2 segments · Q4 2021

  • Gas Utilities
    $372M+120214.2%
  • Electric Utilities
    $195M

Forward guidance

Black Hills reaffirmed its guidance for 2022 earnings per share available for common stock to be in the range of $3.95 to $4.15.

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
  • Adjusted contract price for Wygen I power purchase agreement beginning Jan. 1, 2022

Headwinds

  • The accuracy of our assumptions on which our earnings guidance and growth targets are 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 successfully execute our financing plans
  • Our ability to achieve our greenhouse gas emissions intensity reduction goals

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 Q4 2021

Historical avgQ4 2021

+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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