Black Hills Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Black Hills Corp. (BKH) has filed its Q1 2024 10-Q, detailing financial performance across its utility segments and providing updates on derivative instruments and fair value measurements.</b>

AI Summary

BLACK HILLS CORP /SD/ (BKH) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Black Hills Corp. filed its 10-Q report for the quarterly period ended March 31, 2024. The filing includes data related to operating segments such as Electric Utilities and Retail Electric, Natural Gas, and Coal. Information on derivative liabilities and assets, including commodity contracts, is presented as of March 31, 2024. The report details fair value measurements for recurring items as of December 31, 2023, and March 31, 2024. Data on employee benefit plans and related deferred taxes is included for the period ending December 31, 2023.

Why It Matters

For investors and stakeholders tracking BLACK HILLS CORP /SD/, this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial snapshot of Black Hills Corp., crucial for understanding the company's operational performance and financial health in the electric and gas utility sectors. The inclusion of derivative and fair value data is important for assessing the company's risk management strategies and the valuation of its financial instruments, particularly in volatile commodity markets.

Risk Assessment

Risk Level: medium — BLACK HILLS CORP /SD/ shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of utility operations, commodity pricing, and regulatory environments introduces inherent medium-level risks.

Analyst Insight

Investors should review the detailed segment performance and any disclosed risk factors to assess the company's outlook for the remainder of 2024.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — Filing Date (FILED AS OF DATE)
• 2023-12-31 — Previous Year End Date (Fair Value Measurements)
• 2022-12-31 — Prior Year Defined Benefit Plan Adjustment Date (Accumulated Defined Benefit Plans Adjustment)

Key Players & Entities

• BLACK HILLS CORP /SD/ (company) — FILER
• 0000950170-24-056459 (other) — ACCESSION NUMBER
• 20240331 (date) — CONFORMED PERIOD OF REPORT
• 20240509 (date) — FILED AS OF DATE
• 0001130464 (company) — CENTRAL INDEX KEY
• 4911 (other) — STANDARD INDUSTRIAL CLASSIFICATION
• SD (location) — STATE OF INCORPORATION
• 6057212343 (phone) — BUSINESS PHONE

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — Reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with an update on the company's financial performance during the quarter.)

Derivative Liabilities

Obligations arising from financial contracts whose value is derived from an underlying asset, index, or rate. (Indicates potential financial risks or hedges related to market fluctuations.)

Fair Value Measurements

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (Helps assess the current market valuation of the company's assets and liabilities.)

Key Financial Figures

• $1.00 — e on which registered Common stock of $1.00 par value BKH New York Stock Exchan
• $750 million — gion. Revolving Credit Facility Our $750 million credit facility used to fund working ca
• $1.0 billion — us to increase total commitments up to $1.0 billion with the consent of the administrative

Filing Documents

• bkh-20240331.htm (10-Q) — 2345KB
• bkh-ex31_1.htm (EX-31.1) — 16KB
• bkh-ex31_2.htm (EX-31.2) — 16KB
• bkh-ex32_1.htm (EX-32.1) — 11KB
• bkh-ex32_2.htm (EX-32.2) — 11KB
• bkh-ex95.htm (EX-95) — 21KB
• 0000950170-24-056459.txt (&nbsp;) — 9696KB
• bkh-20240331.xsd (EX-101.SCH) — 1433KB
• bkh-20240331_htm.xml (XML) — 1854KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 7 Item 1.

Financial Statements - unaudited

Financial Statements - unaudited 7 Consolidated Statements of Income 7 Consolidated Statements of Comprehensive Income 8 Consolidated Balance Sheets 9 Consolidated Statements of Cash Flows 11 Consolidated Statements of Equity 12 Condensed Notes to Consolidated Financial Statements 13 Note 1. Management's Statement 13 Note 2. Regulatory Matters 14 Note 3. Commitments, Contingencies and Guarantees 15 Note 4. Revenue 15 Note 5. Financing 16 Note 6. Earnings Per Share 17 Note 7. Risk Management and Derivatives 17 Note 8. Fair Value Measurements 20 Note 9. Other Comprehensive Income 22 Note 10. Employee Benefit Plans 23 Note 11. Income Taxes 23 Note 12. Business Segment Information 24 Note 13. Selected Balance Sheet Information 24 Note 14. Subsequent Events 25 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Executive Summary 26 Recent Developments 26 Results of Operations 27 Consolidated Summary and Overview 27 Non-GAAP Financial Measure 28 Electric Utilities 28 Gas Utilities 31 Corporate and Other 32 Consolidated Interest Expense, Other Income and Income Tax Expense 33 Liquidity and Capital Resources 33 Cash Flow Activities 33 Capital Resources 35 Credit Ratings 35 Capital Requirements 35 Critical Accounting Estimates 36 New Accounting Pronouncements 36 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 4.

Controls and Procedures

Controls and Procedures 36

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 4. Mine Safety Disclosures 37 Item 5. Other Information 37 Item 6. Exhibits 37

Signatures

Signatures 38 2 Table of Contents GLOSSARY OF TERMS AND ABBREVIATIONS The following terms and abbreviations appear in the text of this report and have the definitions described below: AFUDC Allowance for Funds Used During Construction AOCI Accumulated Other Comprehensive Income (Loss) APSC Arkansas Public Service Commission Arkansas Gas Black Hills Energy Arkansas, Inc., an indirect, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Arkansas (doing business as Black Hills Energy). ASU Accounting Standards Update as issued by the FASB ATM At-the-market equity offering program Availability The availability factor of a power plant is the percentage of the time that it is available to provide energy. BHC Black Hills Corporation; the Company Black Hills Colorado IPP Black Hills Colorado IPP, LLC a 50.1% owned subsidiary of Black Hills Electric Generation Black Hills Electric Generation Black Hills Electric Generation, LLC, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings, providing wholesale electric capacity and energy primarily to our Electric Utilities. Black Hills Electric Parent Holdings Black Hills Electric Utility Holdings, LLC., a direct, wholly-owned subsidiary of Black Hills Corporation Black Hills Energy The name used to conduct the business of our Utilities Black Hills Energy Renewable Resources (BHERR) Black Hills Energy Renewable Resources, LLC, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings Black Hills Energy Services Black Hills Energy Services Company, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas commodity supply for the Choice Gas Programs (doing business as Black Hills Energy). Black Hills Non-regulated Holdings Black Hills Non-regulated Holdings, LLC, a direct, wholly-owned subsidiary of Black Hills Corporation Black Hills Utility Hol

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended March 31, 2024 2023 (in millions, except per share amounts) Revenue $ 726.4 $ 921.2 Operating expenses: Fuel, purchased power and cost of natural gas sold 316.6 526.3 Operations and maintenance 133.6 141.0 Depreciation and amortization 65.9 61.6 Taxes - property and production 17.0 17.4 Total operating expenses 533.1 746.3 Operating income 193.3 174.9 Other income (expense): Interest expense incurred net of amounts capitalized ( 46.0 ) ( 44.1 ) Interest income 2.0 0.6 Other income (expense), net ( 0.8 ) 0.7 Total other income (expense) ( 44.8 ) ( 42.8 ) Income before income taxes 148.5 132.1 Income tax (expense) ( 16.9 ) ( 14.7 ) Net income 131.6 117.4 Net income attributable to non-controlling interest ( 3.7 ) ( 3.3 ) Net income available for common stock $ 127.9 $ 114.1 Earnings per share of common stock: Earnings per share, Basic $ 1.88 $ 1.73 Earnings per share, Diluted $ 1.87 $ 1.73 Weighted average common shares outstanding: Basic 68.2 66.0 Diluted 68.3 66.1 The accompanying Condensed Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements. 7 Table of Contents BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Three Months Ended March 31, 2024 2023 (in millions) Net income $ 131.6 $ 117.4 Other comprehensive income (loss), net of tax; Derivative instruments designated as cash flow hedges: Reclassification of net realized (gains) losses on settled/amortized interest rate swaps (net of tax of $( 0.1 ) and $( 0.2 ), respectively) 0.6 0.6 Net unrealized gains (losses) on commodity derivatives (net of tax of $ 0.0 and $ 0.3 , respectively) ( 0.1 )

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View this 10-Q filing on SEC EDGAR