RAPID CITY, S.D., July 31, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the second quarter of 2024. Net income available for common stock and earnings per share for the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, were:   Three Months Ended June 30,     Six Months Ended June 30,     2024   2023     2024   2023     (in millions, except per share amounts)   Net income available for common stock $ 22.8   $ 23.1     $ 150.6   $ 137.1   Earnings per share, Diluted $ 0.33   $ 0.35     $ 2.19   $ 2.06   Second quarter earnings were $0.33 per share compared to $0.35 per share in the second quarter of 2023. Financial results were driven by new rates and rider recovery and lower operating expenses, which offset the unfavorable impacts of mild weather and a prior year income tax benefit. "Year-to-date earnings were up 6% compared to last year and we are reaffirming our earnings guidance for the year," said Linn Evans, president and CEO of Black Hills Corp. "We continue to deliver progress on our customer-focused strategy and are excited about powering Meta's newest AI data center in Cheyenne, which we expect to begin serving in 2026. Our team continues to attract new data centers with our leading mission-critical reliability and innovative energy solutions, including our unique tariffs and capital-light energy procurement model. "Regulatory activities continue to move forward to recover investments and costs critical to serving our customers safely and reliably. Our rate review for Arkansas Gas is advancing through its final stages, while rate reviews filed during the second quarter for Iowa Gas and Colorado Electric are on schedule. "As we execute on our commitment to a reliable, cost-effective and cleaner energy future, we are delivering new resources to serve the growing needs of our customers and communities. In Colorado, we continue to pursue regulatory approval of our preferred portfolio of clean energy resources to reduce emissions 80% by 2030 as outlined in our Clean Energy Plan. In South Dakota, we plan to add 100 megawatts of utility-owned generation by 2026 to serve growing customer demand. Construction is on schedule for our 260-mile Ready Wyoming electric transmission line to enhance reliability, resiliency and energy market access," concluded Evans. SECOND-QUARTER 2024 HIGHLIGHTS AND UPDATES Electric Utilities During the second quarter, South Dakota Electric continued its resource planning process to add 100 megawatts of utility-owned, dispatchable natural gas resources by mid-year 2026. South Dakota Electric expects to file a pre-application notice in South Dakota and request a certificate of public convenience and necessity in Wyoming in the second half of 2024. On July 11, Wyoming Electric announced it will partner with Meta to provide power for its newest AI data center to be constructed in Cheyenne, Wyoming. The company plans to procure market energy under its Large Power Contract Service tariff with customized energy resources essential to Meta's operations and sustainability objectives. On June 14, Colorado Electric filed a rate review with the Colorado Public Utilities Commission seeking the recovery of significant infrastructure investments in its 3,200-mile electric distribution and 600-mile electric transmission systems. The rate review requested $37 million in new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company requested new rates effective in the first quarter of 2025. On April 17, Colorado Electric filed its 120-Day report recommending 400 megawatts of renewable energy resources to advance its Clean Energy Plan. The final composition of resources and timing is subject to review and approval by the Colorado Public Utilities Commission, which is expected later this year. During the second quarter, Wyoming Electric continued construction on Ready Wyoming, a 260-mile electric transmission project. Construction is expected to be completed in multiple segments in 2024 and 2025. Gas Utilities On May 1, Iowa Gas filed a rate review request with the Iowa Utilities Commission seeking approval to recover approximately $100 million of system investments and inflationary impacts on expenses to serve customers. The rate review requested $21 million of new annual revenue based on a capital structure of 51% equity and 49% debt and a return on equity of 10.5%. Interim rates were effective on May 11, 2024, with final rates requested in the first quarter of 2025. During the second quarter, Arkansas Gas advanced its rate review request to recover $130 million of system investments and the inflationary impacts on expenses to serve customers. Filed on Dec. 4, 2023, the rate review requested $44 million of new annual revenue based on a capital structure of 48% equity and 52% debt and a return on equity of 10.5%. The company requested new rates in the fourth quarter of 2024. Corporate and Other On July 22, Black Hills' board of directors approved a quarterly dividend of $0.65 per share payable on Sept. 1, 2024, to common shareholders of record at the close of business on Aug. 19, 2024. The dividend, on an annualized rate, represents 54 consecutive years of dividend increases, the second longest track record in the electric and natural gas industry. On May 31, Black Hills amended and restated its revolving credit facility with similar terms as the former facility, maintaining total commitments of $750 million and extending the term through May 31, 2029. On May 16, Black Hills completed a public debt offering of $450 million, 6.00% senior unsecured notes due Jan. 15, 2035. Proceeds were used for general corporate purposes and, along with available cash or short-term borrowings under the company's existing facilities, will be used to fully repay the $600 million notes due Aug. 23, 2024. On May 9, S&P Global Ratings affirmed Black Hills' issuer credit rating at BBB+ with a stable outlook. During the second quarter, Black Hills issued 0.8 million shares of new common stock for net proceeds of $42 million under its at-the-market equity offering program. Year-to-date, the company has issued a total of 1.4 million shares of new common stock for net proceeds of $73 million. During the second quarter, Black Hills published its 2023 Corporate Sustainability Report, highlighting the company's environmental, social and governance impacts and its progress on major projects and climate goals. The company reported a 27% reduction in greenhouse gas emissions from its natural gas distribution system since 2022 and is on track to achieve its goal of net zero emissions by 2035. Additionally, the company has reduced its electric utility greenhouse gas emissions by nearly one third since 2005 and is on track to achieve its goals to reduce electric emissions intensity by 40% by 2030 and 70% by 2040 compared to 2005. 2024 EARNINGS GUIDANCE Black Hills affirms its guidance for 2024 earnings per share available for common stock to be in the range of $3.80 to $4.00 based on the follow assumptions: Normal weather conditions within our utility service territories including temperatures, precipitation levels and wind conditions; Normal operations and weather conditions for planned construction, maintenance and/or capital investment projects; Constructive and timely outcomes of utility regulatory dockets; No significant unplanned outages at our generating facilities; Equity issuance of $170 million to $190 million through the at-the-market equity offering program; and Production tax credits of approximately $18 million associated with wind generation assets. CONFERENCE CALL AND WEBCAST Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, Aug. 1, 2024, to discuss its financial and operating performance. To access the live webcast and download a copy of the investor presentation, go to the "Investor Relations" section of the Black Hills website at www.blackhillscorp.com and click on "News and Events" and then "Events & Presentation." The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. For those unable to listen to the live broadcast, a replay will be available on the company's website. To ask a question during the live broadcast, users can access dial-in information and a personal identification number by registering for the event at https://register.vevent.com/register/BI127d514d8e3a423191cc495600c59aa6. A listen-only webcast player and presentation slides can be accessed live at https://edge.media-server.com/mmc/p/j9weytyi with a replay of the event available for up to one year. BLACK HILLS CORPORATIONCONSOLIDATED FINANCIAL RESULTS   (Minor differences may result due to rounding)     Three Months Ended June 30,     Six Months Ended June 30,     2024   2023     2024   2023     (in millions)   Operating income:                   Electric Utilities $ 46.3   $ 46.6     $ 110.9   $ 107.7   Gas Utilities   23.0     17.7       153.7     132.4   Corporate and Other   1.3     (0.8 )     (0.6 )   (1.7 ) Operating income   70.6     63.5       264.0     238.4                       Interest expense, net   (42.6 )   (41.5 )     (86.7 )   (85.0 ) Other income (expense), net   0.4     (1.5 )     (0.5 )   (0.9 ) Income tax benefit (expense)   (3.7 )   6.1       (20.6 )   (8.6 ) Net income   24.7     26.6       156.2     143.9   Net income attributable to non-controlling interest   (1.9 )   (3.5 )     (5.6 )   (6.8 ) Net income available for common stock $ 22.8   $ 23.1     $ 150.6   $ 137.1     Three Months Ended June 30,     Six Months Ended June 30,     2024   2023     2024   2023   Weighted average common shares outstanding (in millions):             Basic   69.0     66.6       68.6     66.3   Diluted   69.0     66.7       68.7     66.4                       Earnings per share:                   Earnings Per Share, Basic $ 0.33   $ 0.35     $ 2.20   $ 2.07   Earnings Per Share, Diluted $ 0.33   $ 0.35     $ 2.19   $ 2.06   USE OF NON-GAAP FINANCIAL MEASURES Gas and Electric Utility Margin Gas and Electric Utility margin (revenue less cost of sales) is considered a non-GAAP financial measure due to the exclusion of operation and maintenance expenses, depreciation and amortization expenses, and property and production taxes from the measure. The presentation of Gas and Electric Utility margin is intended to supplement investors' understanding of operating performance. Electric Utility margin is calculated as operating revenue less cost of fuel and purchased power. Gas Utility margin is calculated as operating revenue less cost of gas sold. Our Gas and Electric Utility margin is impacted by the fluctuations in power purchases and natural gas and other fuel supply costs. However, while these fluctuating costs impact Gas and Electric Utility margin as a percentage of revenue, they only impact total Gas and Electric Utility margin if the costs cannot be passed through to customers. Our Gas and Electric Utility margin measure may not be comparable to other companies' Gas and Electric Utility margin measures. Furthermore, this measure is not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. SEGMENT PERFORMANCE SUMMARY Operating results from our business segments for the three and six months ended June 30, 2024, and 2023, compared to the three and six months ended June 30, 2023, are discussed below. Certain lines of business in which we operate are highly seasonal, and revenue from, and certain expenses for, such operations may fluctuate significantly between quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements. In particular, the normal peak usage season for our electric utilities is June through August while the normal peak usage season for our gas utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment's peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results of operations to be expected for any other period or for the entire year. All amounts are presented on a pre-tax basis unless otherwise indicated. Minor differences in amounts may result due to rounding. Electric Utilities     Three Months Ended June 30,   Variance     Six Months Ended June 30,   Variance     2024   2023   2024 vs. 2023     2024   2023   2024 vs. 2023     (in millions)   Revenue $ 205.1   $ 193.1   $ 12.0     $ 427.3   $ 411.8   $ 15.5   Cost of fuel and purchased power   45.9     36.4     9.5       100.8     91.8     9.0   Electric Utility margin (non-GAAP)   159.2     156.7     2.5       326.5     320.0     6.5                               Operations and maintenance   68.1     65.4     2.7       125.5     122.8     2.7   Depreciation and amortization   35.5     35.8     (0.3 )     70.8     70.9     (0.1 ) Taxes - property and production   9.3     8.9     0.4       19.3     18.6     0.7   Operating income $ 46.3   $ 46.6   $ (0.3 )   $