RAPID CITY, S.D. — Nov. 5, 2018 — Black Hills Corp. (NYSE: BKH) today announced financial results for the third-quarter 2018. GAAP net income from continuing operations available for common stock for the third quarter of 2018 was $18 million or $0.32 per diluted share, compared to net income from continuing operations available for common stock for the third quarter of 2017 of $29 million, or $0.52 per diluted share.
Net income from continuing operations available for common stock, as adjusted, for the third quarter of 2018 was $23 million, or $0.42 per diluted share compared to net income from continuing operations available for common stock, as adjusted, of $29 million, or $0.52 per diluted share, for the same period in 2017 (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided).
Net income available for common stock for the third quarter of 2018 was $17 million or $0.31 per diluted share compared to net income available for common stock for the third quarter of 2017 of $28 million or $0.50 per diluted share. Net income available for common stock includes results from discontinued operations for both periods presented.
“Black Hills delivered strong operating results and made excellent progress on its customer-focused utility strategy during the third quarter,”
“Black Hills delivered strong operating results and made excellent progress on its customer-focused utility strategy during the third quarter,” said David R. Emery, chairman and CEO of Black Hills Corp. “Financial results for the quarter met expectations considering negative weather impacts and customer credits recognized as a result of finalizing a comprehensive, multi-year, multi-docket settlement related to Wyoming Electric’s Power Cost Adjustment. The settlement provides price certainty and stable energy supply for customers and a fair return for shareholders.
“I am pleased with our success in delivering the benefits of federal corporate income tax reform to our utility customers. We have now completed the process in six states and expect to file in Wyoming by year-end. We appreciate our state regulators’ partnership to enable us to deliver these benefits to customers.
“Our team continues to enhance our programmatic, customer-centric capital investment plan, which is focused on the safety and reliability of our natural gas and electric utility systems. We currently forecast $2.54 billion in capital investment from 2018 to 2022, an increase of $208 million compared to the forecast issued last quarter.
“Earnings for the quarter and year-to-date have met our expectations and the fourth quarter will benefit from new rates at three of our natural gas utilities. We are raising the lower end of our 2018 earnings guidance range by $0.05 per share to a revised range of $3.35 to $3.50 per share.
“After nearly three years of acquisition and integration focus, we expect to return to strong long-term earnings growth starting in 2019. We are initiating 2019 earnings guidance in the range of $3.35 to $3.55 per share. Strong forecasted net income growth in 2019 is expected to be largely offset by the full year dilutive impact of the settlement of the equity units. The Nov. 1 settlement is expected to result in approximately 8 percent additional fully diluted common shares in 2019 as compared to 2018.
“To demonstrate confidence in the strength of our long-term, customer-centric utility growth strategy, we are issuing preliminary 2020 earnings guidance in the range of $3.50 to $3.80 per share, supported by strong capital investment that will benefit customers and shareholders for years to come.
“Finally, last week we announced a 6.3 percent increase in our quarterly dividend, marking 49 consecutive annual dividend increases, one of the longest streaks in the utility industry,”
“Finally, last week we announced a 6.3 percent increase in our quarterly dividend, marking 49 consecutive annual dividend increases, one of the longest streaks in the utility industry,” concluded Emery.
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