Black Hills (BKH) Q4 2024 earnings summary

Executive summary

• Achieved 2024 EPS of $3.91, a 4.3% increase from the 2023 guidance midpoint, with net income of $273.1M and strong customer and data center-driven growth initiatives.

• Increased dividend by 4% for the 55th consecutive year, maintaining a 55%-65% payout ratio and solid investment-grade credit ratings.

• Advanced strategic growth initiatives, including data center expansion, Clean Energy Plan approval in Colorado, and Ready Wyoming transmission project.

• Raised five-year capital investment plan by 10% to $4.7 billion for 2025–2029, with $1.0B planned for 2025.

• Delivered on earnings guidance and reaffirmed long-term EPS growth target of 4%-6% off the 2023 base.

Financial highlights

• 2024 EPS was $3.91, up 4.3% from the 2023 guidance midpoint, with adjusted EPS of $4.10 normalized for weather and mark-to-market impacts.

• Net income available for common stock was $273.1M in 2024, up from $262.2M in 2023.

• Operating income for 2024 rose to $503.1M, with Q4 operating income at $163.3M.

• Revenue for 2024 was $2.13B, down from $2.33B in 2023, mainly due to lower gas utility sales.

• 2024 benefited from $0.82 per share in new rates, rider recovery, and customer growth, offsetting mild weather and unplanned outages.

Outlook and guidance

• 2025 EPS guidance set at $4.00–$4.20, reflecting ~5% growth, with long-term EPS growth target of 4%-6% annually off the 2023 base of $3.75.

• Five-year capital investment plan increased to $4.7B for 2025–2029, focused on customer growth, safety, and system integrity.

• Data center EPS contribution expected to double to over 10% by 2029, with projected load exceeding 1 GW in 10 years.

• Equity issuance of $215M–$235M planned for 2025 to support capital plan.

• Effective tax rate for 2025 estimated at 13%.