Black Hills Reports Fourth Quarter FY 2022 Earnings Results on February 7, 2023

Earnings Overview

On February 7, 2023 BLACK HILLS ($NYSE:BKH) reported its fourth quarter fiscal year 2022 earnings results which ended December 31, 2022. Total revenue for the quarter was USD 72.5 million, an increase of 2.0% compared to the same period the year prior. Net income was USD 130.6 million, a 13.8% rise year-over-year.

Transcripts Simplified

Slide 11 illustrates earnings per share for the full year and by quarter for 2022 compared to 2021, with a 6% increase in EPS for the full year. Slide 12 and 13 provide detail on the drivers of change in net income year-over-year for the fourth quarter and full year. Higher margin was driven by new rates and investment riders, increased customer growth, higher usage per customer, and wholesale energy sales. Results for the year were also positively impacted by warm summer weather and higher than normal heating degree days in early Q1 and late Q4. O& M expenses increased 9%, driven by inflationary environment, higher fuel and materials costs, and outside services, bad debt, labor, cloud computing and property taxes.

DD& A increased due to capital investment program. Interest expense increased due to higher short-term debt balances. Slide 14 reflects our long-term track record.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Black Hills. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Black Hills. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Black Hills. More…

Key Ratios Snapshot

Some of the financial key ratios for Black Hills are shown below. More…

Share Price

At market open, BLACK HILLS stock opened at $70.9, but by the time the market closed, BLACK HILLS stock had fallen slightly to close at $71.0. This 0.6% decrease in stock price is compared to its previous closing price of $71.4. Investors will be eager to see the company’s earnings report to gauge BLACK HILLS’ financial health before deciding whether or not to purchase or sell their shares. The BLACK HILLS earnings report is likely to show the company’s performance over the past four quarters, including revenue and expenses, as well as any potential risks or opportunities for the future. Investors will be looking for any indications of growth or decline in revenue and expenses, as well as any changes in the company’s strategy or plans for the future.

With this information, they can make an informed decision about the future of their investment in BLACK HILLS. It remains to be seen how the BLACK HILLS earnings report will impact stock prices in the coming days and weeks. Investors will be looking for any changes in the company’s financials, as well as any news surrounding the company that could affect stock prices. As such, this report is sure to be closely watched by all investors with interests in BLACK HILLS. Live Quote…

Analysis

At GoodWhale, we have conducted a thorough analysis of BLACK HILLS‘s fundamentals. From our Risk Rating assessment, we have concluded that BLACK HILLS is a medium risk investment in terms of financial and business aspects. Upon the examination of the income sheet, we have detected a risk warning. Sign up to our service to gain access to a detailed explanation of this risk warning. We advise that you take the necessary precautions and investigate further before investing in BLACK HILLS. More…

Peers

The company operates through four segments: Electric Utilities, Gas Utilities, Coal Mining, and Power Generation. Black Hills Corp owns and operates six electric and natural gas utilities. The company’s electric utilities serve approximately 686,300 customers in Colorado, Montana, Nebraska, South Dakota, and Wyoming. Its gas utilities serve approximately 546,400 customers in Colorado, Nebraska, South Dakota, and Wyoming. Black Hills Corp’s coal mining operations are located in the Powder River Basin of Wyoming. The company’s power generation segment owns and operates seven power plants with a capacity of 1,445 megawatts. Black Hills Corp’s competitors include Chubu Electric Power Co Inc, NorthWestern Corp, and Otter Tail Corp.

– Chubu Electric Power Co Inc ($TSE:9502)

Chubu Electric Power Co Inc is a Japanese electric utility company that services the Chubu region on the island of Honshu. It has a market cap of 928.54B as of 2022 and a Return on Equity of -1.25%. The company is the third largest electric utility in Japan and one of the ten largest in the world. It serves over 19 million people and has over 46,000 employees.

– NorthWestern Corp ($NASDAQ:NWE)

Northwestern Corp is a holding company that, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in the United States. The company has a market cap of 3.01B as of 2022 and a Return on Equity of 11.07%. The company’s subsidiaries include Northwestern Public Service Company, which provides electric utility service in South Dakota; Montana-Dakota Utilities Co, which provides electric and natural gas utility service in North Dakota, South Dakota, and Montana; and Nipsco Industries, Inc, which provides electric utility service in Indiana and Illinois.

– Otter Tail Corp ($NASDAQ:OTTR)

Otter Tail Corporation is a holding company that engages in the electric, manufacturing, and plastics businesses in the United States. It operates through the following segments: Electric, Manufacturing, and Plastics. The Electric segment generates, transmits, and distributes electricity in Minnesota, North Dakota, and South Dakota. The Manufacturing segment designs and manufactures metal fabricated products and components primarily for the medical device and other industries. The Plastics segment manufactures and sells plastic products. The company was founded by John N. Teigen in 1907 and is headquartered in Fergus Falls, MN.

Summary

BLACK HILLS Corp. reported strong results for the fourth quarter of fiscal year 2022, with total revenue increasing 2.0% year-over-year to USD 72.5 million, and net income rising 13.8% to USD 130.6 million. This marks a healthy rise in profitability for the company and makes BLACK HILLS an attractive investment opportunity for investors. Analysts anticipate continued growth in the company’s performance in the coming quarters, making it a good choice for those looking for long-term returns.