Black Hills (BKH) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $22.8 million ($0.33 per diluted share), down from $23.1 million ($0.35 per share) in Q2 2023, with year-to-date net income rising 10% to $150.6 million ($2.19 per share) from $137.1 million ($2.06 per share) year-over-year.

• Delivered strong operational performance, supporting communities during severe weather and advancing regulatory, growth, and sustainability initiatives, including a partnership with Meta for a new data center in Wyoming.

• Published 2023 Corporate Sustainability Report, reporting a 27% reduction in natural gas emissions since 2022 and progress toward net zero by 2035.

• Maintained a solid financial position with BBB+ credit ratings and robust liquidity.

• Announced leadership transition in Investor Relations.

Financial highlights

• Q2 2024 EPS was $0.33, down from $0.35 in Q2 2023, mainly due to weather and absence of prior year tax benefit; year-to-date EPS was $2.19, up from $2.06.

• Q2 2024 revenue was $402.6 million, down from $411.3 million in Q2 2023; six-month revenue was $1,129.0 million, down from $1,332.4 million year-over-year.

• Operating income rose to $70.6 million in Q2 2024 from $63.5 million in Q2 2023; six-month operating income was $264.0 million, up from $238.4 million.

• O&M costs reduced by $0.04 per share versus Q2 2023, primarily from lower labor costs.

• Dividend increased for the 54th consecutive year, with a current annualized rate of $2.60 per share.

Outlook and guidance

• 2024 EPS guidance reaffirmed at $3.80–$4.00, assuming normal weather, constructive regulatory outcomes, and $170–$190 million equity issuance.

• Long-term EPS growth target of 4%–6% and dividend payout ratio of 55%–65%.

• Five-year capital investment forecast of $4.3 billion through 2028, with $1.3 billion planned for 2026.

• On track to achieve net zero emissions by 2035 and significant reductions in electric utility emissions by 2030 and 2040.

• Anticipates future earnings from data center customers to exceed 10% of total EPS by 2028.