Mission Statement, Vision, & Core Values (2024) of Black Hills Corporation (BKH)

An Overview of Black Hills Corporation (BKH)

General Summary of Black Hills Corporation (BKH)

Black Hills Corporation, founded in 1883, is a diversified energy company based in Rapid City, South Dakota. The company primarily operates in the utility sector, providing electricity and natural gas to residential, commercial, and industrial customers across several states, including Colorado, Wyoming, South Dakota, and Nebraska. As of 2024, Black Hills Corporation serves approximately 1.3 million customers and operates over 3,000 miles of electric transmission lines and 4,000 miles of gas distribution pipelines.

In 2024, the company reported total sales of approximately $1.8 billion, with significant contributions from its electric utility operations, which generated about $1.3 billion in revenue. Black Hills Corporation is also involved in renewable energy projects, contributing to its goal of providing sustainable energy solutions.

Company's Financial Performance in the Latest Financial Reports

For the nine months ended September 30, 2024, Black Hills Corporation reported a net income of $182.6 million, compared to $192.7 million for the same period in 2023, reflecting a decrease of $10.1 million. However, total earnings increased to $447.5 million, up from $413.3 million year-over-year, driven by higher margins in electric and gas utility operations. The company’s total revenue for the nine months was $1.53 billion, a slight increase from $1.52 billion in the prior year.

The following table summarizes key financial metrics for Black Hills Corporation:

Key drivers of revenue growth included new rates and rider revenues from electric and gas utilities, which were supported by an increase in retail customer growth and usage. However, the company experienced higher operating expenses and unplanned generation outages that impacted operating income.

Introduction to Company as a Leader in the Industry

Black Hills Corporation is recognized as a leader in the utility industry, particularly in the Rocky Mountain region. The company has made significant investments in renewable energy, enhancing its portfolio with wind and solar projects. As of 2024, Black Hills Corporation's renewable energy capacity includes over 1,000 megawatts of wind power and ongoing solar initiatives, positioning the company as a proactive player in the transition to cleaner energy sources.

The company's commitment to sustainability and community engagement has further solidified its reputation in the industry, making it a preferred provider for energy solutions. With strategic growth initiatives and a focus on operational efficiency, Black Hills Corporation continues to be a strong competitor in the energy market.

Mission Statement of Black Hills Corporation (BKH)

Mission Statement of Black Hills Corporation (BKH)

Black Hills Corporation's mission statement emphasizes its commitment to delivering high-quality energy solutions to its customers while fostering sustainable practices and enhancing the communities it serves. As of 2024, the company has outlined its mission with three core components that guide its operational strategies and long-term objectives.

Core Component 1: Customer Commitment

Black Hills Corporation prioritizes its customers by focusing on delivering reliable and affordable energy. The company’s customer commitment is evident through its performance metrics and service reliability. In the third quarter of 2024, the company reported a total revenue of $401.6 million, reflecting its strong customer base across various states. The utilities segment, which includes electric and gas services, generated significant revenue, with electric utilities contributing $232.5 million and gas utilities $173.6 million.

Moreover, the company’s commitment to customer satisfaction is reinforced by improvements in service delivery, as reflected in its operational metrics. For example, Black Hills Energy's gas utility margin increased by $16.9 million primarily due to new rates and rider recovery. Such financial results demonstrate the company's focus on meeting customer needs effectively.

Core Component 2: Sustainable Practices

Sustainability is a cornerstone of Black Hills Corporation's mission. The company aims to integrate renewable energy solutions into its operations, reflecting its commitment to environmental stewardship. As of September 30, 2024, the company reported a total generation of 1,501.9 GWh from renewable sources, including wind and solar. The recent addition of new power purchase agreements (PPAs) for wind and solar energy indicates a strategic shift towards cleaner energy sources, thereby supporting the company's sustainability goals.

Financially, Black Hills Corporation has invested in renewable energy projects, with capital expenditures reaching $530.5 million in 2024. This investment underscores the company’s dedication to reducing its carbon footprint while ensuring a diverse energy portfolio for its customers.

Core Component 3: Community Engagement

Community engagement is another vital aspect of Black Hills Corporation's mission. The company actively participates in local initiatives and strives to make a positive impact in the communities it serves. In 2024, Black Hills Corporation has contributed to community development projects, enhancing local infrastructure and supporting educational programs.

Financially, this commitment is reflected in the company’s operational expenditures, which include funding for community programs. For example, the company’s operations and maintenance expenses were reported at $145.6 million in the third quarter of 2024, which includes investments in community engagement activities. Furthermore, by maintaining a strong presence in local markets, Black Hills Corporation ensures that its services align with community needs and expectations.

Vision Statement of Black Hills Corporation (BKH)

Vision Statement Overview

The vision statement of Black Hills Corporation focuses on providing reliable and sustainable energy solutions while ensuring operational excellence and community engagement. As of 2024, the company emphasizes its commitment to environmental stewardship and innovation.

Commitment to Sustainability

Black Hills Corporation aims to lead in sustainable energy practices. The company has set a target to achieve a 50% reduction in greenhouse gas emissions by 2030, aligning with its vision of a cleaner energy future. In 2024, their renewable energy portfolio includes:

This commitment not only supports environmental goals but also enhances energy security for their customers.

Operational Excellence

Operational excellence is a cornerstone of Black Hills Corporation's vision. The company has invested significantly in infrastructure upgrades to improve service reliability. For instance, in the nine months ended September 30, 2024, Black Hills reported:

These investments are aimed at enhancing efficiency and reducing operational costs, thereby benefiting customers through more reliable services and competitive pricing.

Community Engagement

Black Hills Corporation values strong community ties, reflected in its vision to be a trusted partner. The company actively engages in community development and philanthropy. In 2024, the corporation contributed approximately $1.5 million to local initiatives, which includes:

• Education programs
• Environmental conservation efforts
• Emergency assistance funds

This engagement fosters goodwill and supports the communities where they operate, reinforcing their commitment to corporate social responsibility.

Innovation and Technology

Innovation plays a critical role in Black Hills Corporation's vision. The company is investing in advanced technologies to enhance energy efficiency and customer service. In 2024, they have introduced smart grid technologies that have resulted in:

These technologies not only improve operational efficiency but also enhance customer experience by providing real-time data and support.

Core Values of Black Hills Corporation (BKH)

Integrity

Integrity is the cornerstone of Black Hills Corporation's operations. It involves maintaining transparency and accountability in all business dealings.

The company demonstrates its commitment to integrity through various initiatives, including adherence to regulatory compliance and ethical business practices. For example, Black Hills Corporation has invested in training programs for employees to ensure they understand and uphold ethical standards. In 2023, the company reported zero violations of regulations, highlighting its focus on compliance and ethical integrity.

Safety

Safety is a fundamental core value at Black Hills Corporation. The company prioritizes the well-being of its employees and customers.

In 2024, Black Hills Corporation implemented new safety protocols that resulted in a 15% reduction in workplace incidents compared to the previous year. The company also launched a comprehensive safety training program for all employees, which has been attended by over 90% of the workforce. Additionally, Black Hills Corporation's safety performance metrics indicate a commitment to continuous improvement, with a safety incident rate of 0.75 in 2024, down from 0.89 in 2023.

Customer Commitment

Customer commitment reflects Black Hills Corporation's dedication to providing exceptional service and value to its customers.

In 2024, the company achieved a customer satisfaction rating of 92%, a testament to its focus on service excellence. Black Hills Corporation introduced a new customer service platform that reduced response times by 30%, enhancing the customer experience. Furthermore, the company has expanded its renewable energy offerings, with over 15% of its energy coming from renewable sources, aligning with customer preferences for sustainable energy.

Community Involvement

Community involvement is a vital aspect of Black Hills Corporation's corporate culture, emphasizing the company's role as a responsible corporate citizen.

In 2024, Black Hills Corporation contributed over $3 million to local charities and community projects. The company also initiated a volunteer program, with more than 1,500 employee volunteer hours logged in local communities. These efforts not only support local initiatives but also foster a strong sense of community engagement among employees.

Innovation

Innovation drives Black Hills Corporation's growth and ability to adapt to changing market conditions.

The company invested approximately $100 million in technology and infrastructure improvements in 2024, aimed at enhancing operational efficiency and reliability. Notable projects include the deployment of advanced metering infrastructure, which has improved service reliability by 20%. The focus on innovation is further reflected in the company’s commitment to clean energy solutions, with plans to increase its renewable energy capacity by 25% over the next five years.

Environmental Stewardship

Environmental stewardship reflects Black Hills Corporation's commitment to sustainability and responsible resource management.

In 2024, the company achieved a 15% reduction in greenhouse gas emissions compared to 2023 levels. This was accomplished through investments in renewable energy projects and energy efficiency programs. Black Hills Corporation also adopted a goal to source 50% of its energy from renewable resources by 2030, further demonstrating its commitment to environmental responsibility.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.