BLACK HILLS Reports USD 72.5 Million in Total Revenue for FY2022 Q4, Up 2.0% Year-Over-Year

Earnings Overview

On February 7 2023, BLACK HILLS ($NYSE:BKH) reported their Fiscal Year 2022 Q4 earnings, with total revenue of USD 72.5 million, showing a 2.0% growth from the same period in the previous year. Net income was also up 13.8% year-over-year, settling at USD 130.6 million.

Transcripts Simplified

Slide 11: We delivered EPS of $3.97 for the full year of 2022 compared to $3.74 last year, a 6% increase, and $1.11 for the quarter, consistent with Q4 2021. Slide 12 & 13: Higher margin was driven by $32 million from new rates and investment riders, $3.8 million of increased margin from customer growth and higher usage per customer, especially at our electric utilities, and $5.9 million of wholesale energy sales. Results for the year benefited from warm summer weather and higher than normal heating degree days in early Q1 and late Q4. O&M expenses increased 9% year-over-year, driven generally by the inflationary environment.

DD&A increased due to our capital investment program. Interest expense increased due to higher short-term debt balances, which were driven by volatile natural gas prices and increased short-term rates. Slide 14: Reflects our long-term track record.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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

Market Price

On Tuesday, BLACK HILLS reported a total revenue of USD 72.5 million for its fiscal year 2022 fourth quarter, a 2.0% year-over-year increase from the prior year. The company’s stock opened at $70.9 and closed at $71.0, a slight 0.6% decrease from its closing price of 71.4 the previous day. This result marks the second consecutive quarter of positive year-over-year growth for BLACK HILLS, indicating that the company has been able to sustain its momentum despite the challenges of the current economic environment. The company indicated that its strong performance was largely driven by its core energy businesses, which saw an increase in both production and sales volumes in the quarter.

The steady growth in total revenue signals a positive outlook for BLACK HILLS, as it continues to focus on expanding its operations and strengthening its competitive advantage. With a strong balance sheet and a commitment to long-term sustainability, BLACK HILLS is well positioned to capitalize on future opportunities and remain a leader in its industry. Live Quote…

Analysis

GoodWhale has conducted thorough research into the fundamentals of BLACK HILLS to evaluate the company’s risk profile. Based on our Risk Rating, BLACK HILLS is classified as a medium risk investment in terms of financial and business aspects. In our research, we detected one risk warning in the income sheet. If you would like to find out more about this risk warning, feel free to register with us for further information. Our team is committed to providing high quality financial advice and risk analysis for our customers. 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 Corporation has reported strong financial results for the fourth quarter and full year of 2022, with total revenue of USD 72.5 million and net income of USD 130.6 million, representing increases of 2.0% and 13.8% year-over-year, respectively. ROE and ROI ratios were both above average, indicating sound capital management and return on investments. The company also reported higher dividend payments to shareholders, delivering a reliable and attractive return on their holdings. The performance indicates that Black Hills is well positioned for future growth, and investors should consider the stock as a sound long-term investment option.