Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Black Hills Corp (BKH, Financial) successfully maintained high reliability with 98% availability for natural gas units and 95% total availability across generation facilities.
- The company is on track with its $800 million capital plan for the year, including the Ready Wyoming Electric transmission expansion project.
- Black Hills Corp (BKH) achieved key financial milestones, including reaching its debt to capitalization target to maintain a triple B plus credit rating.
- The company announced plans to serve Meta's first data center in Cheyenne, Wyoming, starting in 2026, indicating growth in serving hyperscalers.
- Black Hills Corp (BKH) reaffirmed its earnings guidance range of $3.80 to $4 per share and is on track to achieve its long-term 4% to 6% EPS growth target.
Negative Points
- The company faced unplanned generation outages, impacting operational performance and financial results.
- Higher operating expenses, including increased insurance premiums and employee costs, offset new margins.
- Mild weather conditions negatively affected earnings, contributing to a $0.14 unfavorable EPS year-to-date.
- Interest expenses increased due to higher interest rates, impacting overall financial performance.
- The company experienced lower off-system sales, which, along with unplanned outages, affected financial outcomes.
Q & A Highlights
Q: Can you provide more details on the unplanned outages and their impact on O&M earnings?
A: Marne Jones, Senior Vice President - Utilities, explained that the outages were due to component failures, with one outage rolling over into Q3. Kimberly Nooney, CFO, noted the financial impact was $0.03 for the quarter and $0.05 for the year, including both margin and O&M impacts.
Q: Are you able to comment on where within the earnings guidance range you might be trending?
A: Kimberly Nooney, CFO, stated that they do not comment on specific positioning within the range but reaffirmed their expectation to achieve the financial objectives laid out for the year.
Q: What are your thoughts on the potential impact of the incoming administration on the crypto and blockchain industry?
A: Linden Evans, CEO, mentioned that while federal policy is important, their focus remains on serving customer needs. He acknowledged that their strategy is well-positioned to benefit from potential growth in these industries.
Q: Can you provide insights on the expected cadence of new large load customers?
A: Linden Evans, CEO, explained that they have a good understanding of their anchor tenants' growth patterns, such as Meta, which will gradually come online by the end of 2026. He noted that the expansion is expected to continue over time.
Q: Are there opportunities for similar tariff structures in other states outside Wyoming for data centers?
A: Linden Evans, CEO, indicated that they are open to flexible approaches that benefit both customers and shareholders. They have multiple avenues to serve customers and will adapt as needed to protect shareholder interests.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
