BLACK HILLS CORP /SD/ Q4 FY2024 earnings call

• Delivered on key objectives in 2024, advancing customer-focused strategy with excellent service, financial commitments met, and regulatory/growth initiatives advanced.
• Made strong progress on strategic growth plan with industry-leading reliability, serving increasing peak loads for Wyoming Electric and investing over $800 million for customer core energy needs.
• Achieved earnings guidance for 2024, with EPS growth of 4.3%, and expects 5% EPS growth in 2025. Maintained solid financial position with investment-grade credit ratings.
• Implemented constructive settlements for Arkansas Gas and Iowa Gas, made progress in growth initiatives including data center plan with Meta service ramping in 2026, and obtained final approval for Colorado Electric's clean energy plan.
• Energized initial phase of Ready Wyoming electric transmission expansion, increased dividend by 4% for 55 consecutive years, and updated five-year capital investment plan with $4.7 billion investment.

In 2024, Black Hills Corporation delivered on key objectives, with EPS growth of 4.3%. The company advanced its customer-focused strategy, made progress on strategic growth plans, and invested over $800 million for customer core energy needs. For 2025, earnings guidance is in the range of $4.00 to $4.20 per share, reflecting approximately 5% growth over 2024. The five-year capital investment plan from 2025 to 2029 is $4.7 billion, a 10% increase from the prior plan, driven by various customer-focused projects.

• 2025 earnings guidance: $4.00 to $4.20 per share, reflecting ~5% growth over 2024, assuming normal weather, no unplanned generation outages, and constructive regulatory outcomes.
• Five-year capital investment plan (2025-2029): $4.7 billion, a 10% increase from prior plan, driven by clear project timings and costs.
• Long-term EPS growth target: 4% to 6%.

• Factors causing future results to differ: mild weather, unplanned generation outages, regulatory changes, wildfire risks. Wildfire management and mitigation plans are ongoing, with efforts in legislative processes across states.
• Potential impacts from federal legislation and executive orders on permitting and clean energy timelines.

Q: Anthony Crowdell asked about changing CapEx spread and data center contribution.

A: Kimberly Nooney explained redistributed costs in capital plan and Marne Jones noted data center growth is part of organic and strategic growth.

Q: Andrew Weisel inquired about credit ratings, CapEx shortfall, and clean energy plan timing.

A: Kimberly Nooney confirmed no change in credit rating focus, Marne Jones said CapEx shortfall was due to timing spilling into 2025, and Marne Jones discussed clean energy plan timing slippage due to bid negotiations.

Q: Julien Dumoulin-Smith asked about wildfire legislation and data center load.

A: Marne Jones discussed wildfire legislation progress in states and Linn Evans mentioned most data center load is in Wyoming.

Q: Chris Ellinghaus asked about post-2029 data center needs, federal legislation, and clean energy plan timelines.

A: Linn Evans talked about potential dispatchable resources and transmission, Linn Evans and Kimberly Nooney mentioned federal legislation potential, and Linn Evans discussed clean energy plan timelines and federal permitting impacts.