RAPID CITY, S.D. — Aug. 3, 2020 — Black Hills Corp. (NYSE: BKH) today announced financial results for the second quarter of 2020. Net income and net income, as adjusted (non-GAAP) for the second quarter of 2020 compared to the second quarter of 2019 were:
“I am proud of our team who effectively responded to the pandemic challenges in the second quarter to provide safe and reliable energy to our 1.3 million customers while also delivering strong financial and operating results for our shareholders,” said Linn Evans, President and CEO of Black Hills Corp. “We continued executing our capital plan and enhanced our strong liquidity position through a debt issuance of $400 million of 10-year, 2.50% notes. At June 30, we had approximately $770 million of available liquidity.
“All of our business segments reported stronger financial performance compared to the second quarter of last year, as planned. Utilities delivered higher earnings from customer-focused capital investments and from favorable weather. Power generation benefited from new wind assets and from strong power plant availability. Mining reported higher tons sold compared to the prior year quarter that was impacted by power plant outages. Consolidated results also benefited from lower operating expenses. Results were tempered by higher depreciation and dilution from the issuance of new common stock.
“While the pandemic has presented a new set of challenges, we serve predominantly rural communities where the impacts of COVID-19 have generally been less than in urban areas. As we expected, our utilities reported higher residential usage that was more than offset by lower commercial usage. Demand for certain industrial customers also declined as forecasted, but overall industrial usage increased during the quarter compared to last year. On a positive note, significant declines in training, travel and outside services expenses nearly offset the expenses of sequestering mission critical employees and increased bad debt.
“I'm pleased with our team’s progress on regulatory initiatives while overcoming the challenges posed by the pandemic. In Wyoming, we reached a settlement to continue serving our Wyoming electric utility customers with effective energy and capacity through 2032 from our power generation segment’s Wygen I power plant. In Nebraska, we filed an application seeking regulatory approval for rate consolidation and recovery of investments.
“We continue to invest in safe, reliable and clean energy for our customers and our 2020 capital plan remains on schedule. Despite the impact of COVID-19, our $79 million Corriedale wind project is on schedule and on budget to serve participating South Dakota and Wyoming utility customers by year-end through our subscription-based Renewable Ready program. To further our clean energy goals, we submitted a report in June to the Colorado Public Utilities Commission identifying the preferred bid for the Renewable Advantage program to add up to 200 megawatts of renewable energy. The recommended solar bid is projected to save customers $66 million over 15 years and increase our forecasted renewable energy mix in Colorado to over 50% by 2024. Our prior investments in clean and technically advanced natural-gas fired generation set the foundation for the addition of these intermittent renewable generation resources on our system.
“Executing our customer-focused strategy positions us to be ready to address near-term challenges and continue growing longterm value for customers and shareholders. We remain vigilant in protecting the health and safety of all our stakeholders to navigate the challenges of today and continue working toward a strong future,” concluded Evans.