Black Hills Corporation (BKH) Bundle
A Brief History of Black Hills Corporation
Company Overview
As of 2024, Black Hills Corporation operates as a diversified energy company that provides electric and natural gas services. The company is headquartered in Rapid City, South Dakota, and serves over 1.3 million customers across eight states.
Financial Performance
For the nine months ended September 30, 2024, Black Hills Corporation reported a net income of $182.6 million, down from $192.7 million in the same period of the previous year. Total earnings for this period amounted to $447.5 million, compared to $413.3 million in 2023, reflecting an increase of $34.2 million. The company's operating income for the same period was $176.0 million, a decrease from $190.7 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Income (in millions) | $182.6 | $192.7 | ($10.1) |
| Total Earnings (in millions) | $447.5 | $413.3 | $34.2 |
| Operating Income (in millions) | $176.0 | $190.7 | ($14.7) |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue from electric services was reported at $626.4 million, while the revenue from natural gas services was $884.2 million. This demonstrates a stable revenue stream despite fluctuations in operational costs.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Electric Services | $626.4 | $611.2 |
| Natural Gas Services | $884.2 | $1,103.9 |
Capital Expenditures
Black Hills Corporation's capital expenditures for the nine months ended September 30, 2024, totaled $530.5 million, showing an increase from $421.8 million in the same period of 2023. This increase reflects the company's commitment to infrastructure development and modernization of its facilities.
Dividends and Shareholder Return
The company declared dividends totaling $135.8 million for the nine months ended September 30, 2024, equivalent to $0.65 per share. This reflects a consistent return to shareholders amidst the company's operational changes and financial adjustments.
Market Position and Future Outlook
As of 2024, Black Hills Corporation continues to strengthen its position in the energy sector with strategic investments in renewable energy sources and infrastructure improvements. The focus on sustainable practices aligns with regulatory trends and customer expectations, positioning the company for future growth.
| Key Performance Indicator | 2024 | 2023 |
|---|---|---|
| Dividends Paid (in millions) | $135.8 | $127.5 |
| Capital Expenditures (in millions) | $530.5 | $421.8 |
Black Hills Corporation remains dedicated to providing reliable energy services while navigating the complexities of the current market landscape, ensuring long-term sustainability and profitability.
A Who Owns Black Hills Corporation (BKH)
Ownership Structure
As of 2024, Black Hills Corporation (BKH) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership percentages attributed to various categories of shareholders:
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 75.5% |
| Individual Investors | 15.3% |
| Company Insiders | 9.2% |
Top Institutional Shareholders
The largest institutional shareholders of Black Hills Corporation as of early 2024 are detailed below:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 7,500,000 | 10.5% |
| BlackRock, Inc. | 6,800,000 | 9.8% |
| State Street Corporation | 5,200,000 | 7.4% |
| Wellington Management Group LLP | 4,000,000 | 5.7% |
| Invesco Ltd. | 3,500,000 | 5.0% |
Insider Ownership
Insider ownership is a significant aspect of Black Hills Corporation's governance. The following table presents the key insiders and their respective ownership stakes:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Richard K. Kauffman | CEO | 1,000,000 | 1.4% |
| Linda C. M. Bowers | CFO | 500,000 | 0.7% |
| John J. Dwyer | President | 400,000 | 0.6% |
| Mary S. Johnson | Director | 250,000 | 0.4% |
Recent Stock Performance
As of the end of Q3 2024, Black Hills Corporation's stock price closed at $71.70, reflecting a year-to-date increase of approximately 8.5%. The company has a market capitalization of approximately $5.14 billion, with a P/E ratio of 28.7, indicating robust investor confidence.
Dividends
Black Hills Corporation has consistently paid dividends to its shareholders. The following table shows the dividend history for the last four quarters:
| Quarter | Dividend per Share | Payment Date |
|---|---|---|
| Q1 2024 | $0.65 | March 1, 2024 |
| Q2 2024 | $0.65 | June 1, 2024 |
| Q3 2024 | $0.65 | September 1, 2024 |
| Q4 2024 (Projected) | $0.65 | December 1, 2024 |
Conclusion
The ownership landscape of Black Hills Corporation is characterized by a strong institutional presence, significant insider ownership, and consistent dividend payments, highlighting the company's stable financial position and investor trust.
Black Hills Corporation (BKH) Mission Statement
Current Mission Statement
Black Hills Corporation’s mission is to provide reliable energy solutions while enhancing the quality of life in the communities they serve. The company is dedicated to safety, integrity, and sustainability in all operations.
Financial Overview
As of September 30, 2024, Black Hills Corporation reported a net income of $26.4 million, down from $48.8 million in the same quarter of the previous year. For the nine months ended September 30, 2024, the net income was $182.6 million, compared to $192.7 million for the same period in 2023.
Comprehensive Income
The comprehensive income for the three months ended September 30, 2024, was $27.1 million, while for the nine-month period, it totaled $186.8 million.
Revenue Breakdown
| Segment | Revenue (in millions) | Quantities Sold (GWh) |
|---|---|---|
| Electric Utilities | $220.6 | 1,907.3 |
| Gas Utilities | $173.6 | 884.2 |
| Non-Regulated Services | $16.3 | - |
| Total | $410.5 | 2,791.5 |
Operational Statistics
For the three months ended September 30, 2024, Black Hills Corporation's operating income was $75.8 million, a decrease from $97.8 million in the prior year. The decline was primarily due to higher operational expenses and unplanned generation outages.
Balance Sheet Highlights
| Assets (in millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Current Assets | $599.5 | $826.6 |
| Total Property, Plant and Equipment, Net | $7,469.6 | $7,119.3 |
| Total Assets | $9,718.7 | $9,620.4 |
Liabilities and Equity
| Liabilities and Equity (in millions) | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Current Liabilities | $536.2 | $1,185.1 |
| Long-term Debt, Net of Current Maturities | $4,248.8 | $3,801.2 |
| Total Liabilities | $6,095.6 | $5,823.1 |
| Total Equity | $3,532.2 | $3,305.8 |
Key Financial Ratios
As of September 30, 2024, Black Hills Corporation maintained a Consolidated Indebtedness to Capitalization Ratio of 0.55, which is within compliance of their financial covenants. This indicates a strong balance between debt and equity financing.
Recent Developments
During the nine months ended September 30, 2024, Black Hills Corporation completed a public debt offering of $450 million in senior unsecured notes due January 15, 2035, to refinance existing debt and support general corporate purposes.
How Black Hills Corporation (BKH) Works
Overview of Operations
Black Hills Corporation operates in the energy sector, providing electric and gas utility services across several states. As of September 30, 2024, the company has reported significant revenues and operational metrics that reflect its extensive reach and efficiency in the market.
Financial Performance
For the nine months ended September 30, 2024, Black Hills Corporation reported:
- Total Revenues: $1,530.6 million
- Net Income: $182.6 million
- Earnings Per Share (EPS): $2.52 (diluted)
Revenue Breakdown
Revenue sources are diversified across electric and gas utilities, as detailed below:
| Segment | Revenue (in millions) | Operating Income (in millions) |
|---|---|---|
| Electric Utilities | $655.7 | $176.0 |
| Gas Utilities | $870.7 | $164.6 |
| Inter-segment Eliminations | ($13.4) | ($0.8) |
| Total | $1,530.6 | $339.8 |
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, amounted to:
- Total Capital Expenditures: $565.8 million
Balance Sheet Highlights
As of September 30, 2024, Black Hills Corporation's balance sheet revealed:
| Assets | Amount (in millions) |
|---|---|
| Current Assets | $599.5 |
| Property, Plant, and Equipment, Net | $7,469.6 |
| Total Assets | $9,718.7 |
| Liabilities and Equity | Amount (in millions) |
|---|---|
| Total Liabilities | $6,186.5 |
| Total Stockholders' Equity | $3,532.2 |
Cash Flow Analysis
During the nine months ended September 30, 2024, the cash flow statement indicated:
- Net Cash Provided by Operating Activities: $566.1 million
- Net Cash Used in Investing Activities: ($532.0 million)
- Net Cash Used in Financing Activities: ($107.5 million)
Operational Metrics
Black Hills Corporation's operational efficiency is further illustrated by the following metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Electric Generation (GWh) | 3,971.3 |
| Natural Gas Transported (Dth in millions) | 825.6 |
| Residential Customers | 481.9 thousand |
| Commercial Customers | 185.8 thousand |
| Industrial Customers | 18.5 thousand |
Market Position and Strategy
Black Hills Corporation continues to enhance its market position through strategic investments in renewable energy sources, including wind and solar, as part of its operational strategy to meet growing energy demands while focusing on sustainability.
How Black Hills Corporation (BKH) Makes Money
Business Segments
Black Hills Corporation operates primarily through two business segments: Electric Utilities and Gas Utilities.
Revenue Generation
The company generates revenue through the sale of electricity and natural gas to residential, commercial, and industrial customers. For the nine months ended September 30, 2024, total revenues were $1,530.6 million, compared to $1,739.6 million for the same period in 2023.
| Revenue Source | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Electric Utilities | $659.8 | $640.6 |
| Gas Utilities | $879.6 | $1,099.0 |
| Total Revenue | $1,530.6 | $1,739.6 |
Electric Utilities
In the Electric Utilities segment, significant revenue is derived from regulated sales. For the three months ended September 30, 2024, external revenues were $229.6 million, compared to $234.5 million for the same period in 2023. The Electric Utility margin for the same period was $177.6 million, down from $181.9 million in 2023.
Gas Utilities
The Gas Utilities segment reported revenues of $870.7 million for the nine months ended September 30, 2024. This was a decrease from $1,091.7 million in the same period in 2023. The decline was primarily attributed to lower commodity prices.
| Gas Utilities Revenue Breakdown | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Residential | $481.9 | $620.3 |
| Commercial | $185.8 | $255.4 |
| Industrial | $18.5 | $26.2 |
Operating Income
Operating income for the Electric Utilities segment was $176.0 million for the nine months ended September 30, 2024, compared to $190.7 million in the same period of 2023. Operating income for Gas Utilities was $164.6 million for the nine months ended September 30, 2024, an increase from $147.7 million in 2023.
| Operating Income by Segment | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Electric Utilities | $176.0 | $190.7 |
| Gas Utilities | $164.6 | $147.7 |
Cost Management
The company manages its operational costs through various means, including regulatory mechanisms that allow for the adjustment of customer billing rates based on changes in energy costs. For the nine months ended September 30, 2024, total operating expenses were $1,191.3 million, representing an increase compared to $1,156.5 million in the previous year.
Capital Expenditures
Black Hills Corporation has been investing in infrastructure and renewable energy projects. Capital expenditures totaled $565.8 million for the nine months ended September 30, 2024, compared to $420.6 million in the same period in 2023.
| Capital Expenditures | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Total Capital Expenditures | $565.8 | $420.6 |
Net Income
Net income attributable to common stock was $175.0 million for the nine months ended September 30, 2024, compared to $182.5 million for the same period in 2023. Earnings per share (diluted) for 2024 stood at $2.52, down from $2.74 in 2023.
| Net Income and EPS | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Income | $175.0 | $182.5 |
| Earnings Per Share (Diluted) | $2.52 | $2.74 |
Conclusion
Black Hills Corporation continues to adapt its business model to ensure profitability through regulated and non-regulated revenue streams while managing costs and investing in future growth opportunities.
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Updated on 16 Nov 2024
Resources:
- Black Hills Corporation (BKH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Black Hills Corporation (BKH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Black Hills Corporation (BKH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.