NYSE$BKH

Black Hills Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Black Hills reported earnings within its guidance range and achieved excellent operational performance for the year.

Black Hills Corp. reported a net income available for common stock of $72.5 million, with an EPS of $1.11 for Q4 2022. The company's full-year EPS increased by 6% compared to 2021, driven by new rates, strong demand, customer growth, and wholesale energy sales. However, the company revised its 2023 EPS guidance due to macroeconomic challenges.

  • New winter peak loads were recorded at all three electric utilities in December.
  • The company's 2023-2027 capital investment forecast is $3.5 billion.
  • Revised 2023 EPS guidance range is $3.65 to $3.85.
  • The long-term EPS growth target is 4% to 6% off the 2023 base.

Headline financials

Total Revenue

$791M

Previous: $563M+40.7%
EPS (adj)

$1.11

Previous: $1.11+0.0%
Capital Expenditures

$138M

Previous: $180M-23.1%
Free Cash Flow

-$47.5M

Previous: -$99.4M+52.2%
Net Income

$76.1M

Previous: $74.3M+2.4%
Operating Income

$130M

Previous: $114M+14.0%
Gross Profit

-$451M

Previous: -$258M-74.9%
Cash & Equivalents

$21.4M

Previous: $8.92M+139.9%
Total Assets

$9.62B

Previous: $9.13B+5.3%
Stock-Based Comp

$1.77M

Previous: $2.41M-26.5%

Revenue & EPS history

Black Hills · Revenue · Quarterly

$791M

Q4 2022+40.7%vs Q4 2021
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Black Hills · $796M total across 2 segments · Q4 2022

  • Gas Utilities
    $565M+52.1%
  • Electric Utilities
    $231M+18.0%

Forward guidance

Black Hills revised its guidance for 2023 earnings per share available for common stock to be in the range of $3.65 to $3.85, from $4.00 to $4.20. The revision was driven by a rapid shift in macroeconomic factors.

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

  • Elevated natural gas price volatility
  • Elevated natural gas demand driven by Winter Storm Elliot in December 2022
  • Higher interest rates
  • Inflationary pressures on expenses
  • Anticipates additional carrying costs throughout 2023 due to the extended nature of cost recovery mechanisms with a higher financing cost environment

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 2022

Historical avgQ4 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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