Executive Summary

Q4 delivered revenue of $597.1M and diluted EPS of $1.37; FY 2024 EPS was $3.91 as the company offset mild weather, unplanned outages, and higher insurance with new rates and disciplined O&M management .
2025 EPS guidance initiated at $4.00–$4.20 (≈5% growth vs. 2024); assumptions include ~3.5% O&M CAGR off 2023, equity issuance of $215–$235M, and ~13% effective tax rate .
Five-year capital plan raised 10% to $4.7B for 2025–2029 (including $1.0B in 2025), underpinned by data center demand; pipeline exceeds 1 GW with ~500 MW expected served by 2029 via capital‑light tariff model .
Regulatory cadence and growth initiatives advanced: Ready Wyoming initial phase energized; Colorado Clean Energy Plan received final approval; Iowa Gas settlement approved; quarterly dividend increased 4% (55th consecutive annual increase) .

What Went Well and What Went Wrong

What Went Well

Regulatory execution and earnings delivery: “We delivered on our earnings guidance, and we are well positioned to achieve our long‑term EPS growth target” .
O&M discipline blunted headwinds: CFO cited $0.74/share from new margins and $0.08/share from customer growth; O&M held well below ~3.5% target, with <1% YoY increase for the year .
Strategic growth/visibility: Capex plan increased 10% to $4.7B; data center pipeline >1 GW with expectation to double EPS contribution to >10% by 2029; Ready Wyoming first segment in service; dividend +4% .

What Went Wrong

Weather and outages: 2024 was impacted by exceptionally mild weather and two unplanned generation outages; Electric Utilities full‑year operating income down $15.8M YoY, partially due to outages and lower off‑system sales .
Higher insurance costs: Electric Utilities Q4 operating income decrease was partly due to increased insurance expense; insurance cost inflation was a noted headwind for 2024 .
Financing headwinds: Net interest expense rose $7.8M in Q4 vs. prior year on higher rates and lower cash balances .

Financial Results

Consolidated Results (comparisons vs prior year and prior quarter)

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	$591.7	$401.6	$597.1
Operating Income ($M)	$136.5	$75.8	$163.3
Net Income Available to Common ($M)	$79.6	$24.4	$98.1
Diluted EPS ($)	$1.17	$0.35	$1.37
Operating Margin (%)	23.1% (136.5/591.7)	18.9% (75.8/401.6)	27.3% (163.3/597.1)
Net Income Margin (%)	13.5% (79.6/591.7)	6.1% (24.4/401.6)	16.4% (98.1/597.1)

Segment Breakdown (Q4)

Metric	Q4 2023	Q4 2024
Electric Utilities Revenue ($M)	$215.9	$216.3
Gas Utilities Revenue ($M)	$380.3	$385.2
Corporate & Other Revenue ($M)	$(4.5)	$(4.4)
Total Revenue ($M)	$591.7	$597.1
Electric Utilities Operating Income ($M)	$58.1	$56.9
Gas Utilities Operating Income ($M)	$81.0	$106.8
Corporate & Other Operating Income ($M)	$(2.6)	$(0.4)
Total Operating Income ($M)	$136.5	$163.3

KPI Highlights

KPI	Q4 2023	Q4 2024
Electric Quantities Sold (GWh)	1,877.0	1,800.2
Off-system/Market Sales Revenue – Electric ($M)	$13.4	$12.0
Gas Total Quantities Sold & Transported (Dth, M)	70.7	70.6
Combined Heating Degree Days (variance vs normal) – Electric	2,154 (-9%)	2,052 (-12%)
Combined Heating Degree Days (variance vs normal) – Gas	2,080 (-11%)	2,015 (-12%)

Versus Estimates

Wall Street consensus (S&P Global) for Q4 2024 revenue and EPS was unavailable due to data access limits; as a result, we cannot assess beats/misses this quarter. S&P Global consensus unavailable (request limit reached) [GetEstimates error].

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EPS (diluted)	FY 2025	N/A	$4.00–$4.20	Initiated
O&M Growth Assumption	FY 2025	N/A	~3.5% CAGR off 2023 base ($552M)	Provided
Equity Issuance	FY 2025	N/A	$215–$235M	Provided
Effective Tax Rate	FY 2025	N/A	~13%	Provided
EPS (diluted)	FY 2024	$3.80–$4.00 (reaffirmed 11/6/24)	Actual $3.91	In line with guidance
5‑yr Capex Plan	2025–2029	Prior plan ~10% lower	$4.7B total; $1.0B in 2025	Raised 10%

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Data center demand and EPS contribution	Meta AI data center announced; EPS contribution expected ≥10% by 2028; capital‑light tariff model emphasized	Pipeline >1 GW; ~500 MW served by 2029; EPS contribution to >10% by 2029; Wyoming concentration, exploring SD/CO	Sustained growth; timeline refined to 2029 vs prior 2028 but EPS growth rate context clarified
Capex plan trajectory	$800M 2024 capex; prior 5‑yr showed 2026 spike; resource plan in CO/SD underway	5‑yr plan raised 10% to $4.7B; 2026 spike redistributed; 2024 capex “hair under $800M” timing shift into 2025	Higher and smoother capex profile
Regulatory cadence	Targeting 3–4 rate reviews per year; AR Gas advancing; IA interim rates; CO Electric rate review filed	AR and IA settlements approved; KS Gas rate review filed; CO Clean Energy Plan final approval; CO Electric rate decision expected late Q1/early Q2 2025	Constructive progress
Wildfire mitigation	Disclosed comprehensive Wildfire Mitigation Plan; PSPS to formalize in 1H25	Active in SD/WY/CO legislation; SD/WY bills advancing; CO engagement ongoing	Increasing stakeholder engagement
Credit metrics/liquidity	Aim to maintain BBB+; net debt/total cap improving; liquidity strong	Achieved 55% net debt/total cap target; >$600M revolver availability; commitment to investment‑grade ratings	Balance sheet on target
Clean Energy Plan (CO) timing	400 MW renewables; awaiting PUC; 2026–2028 contemplated	Final approval for 350 MW (100 MW solar owned; 50 MW battery owned; 200 MW PPA); in‑service refined to 2027–2028	Timing clarified modestly later

Management Commentary

“We delivered on our earnings guidance… We increased our dividend by 4%… In 2025, we are guiding to earnings in a range of $4 to $4.20 per share.” — CEO Linn Evans .
“We delivered $0.74 per share of new margins… $0.08 per share driven by customer growth… our O&M management efforts substantially reduced the year‑over‑year O&M increase to less than 1%.” — CFO Kimberly Nooney .
“We have a pipeline of over 1 gigawatt of data center demand within the next 10 years… We expect EPS contribution from data centers to more than double to 10% or more by 2029.” — CEO Linn Evans .
“Ready Wyoming… initial phase representing approximately $40 million was placed in service… [it] will be recovered in our 2024 rider filing.” — SVP Utilities Marne Jones .

Q&A Highlights

Capex spread and 2026 spike: Costs redistributed across plan years; cumulative plan increased $400M given organic growth, inflation, financing costs, and large projects like Ready Wyoming and Lange 2 .
Data center EPS contribution timing: Management clarified the 10%+ contribution is relative to a growing EPS base and trends toward high end of 4–6% CAGR by 2029, not a linear metric shift .
2024 capex under‑spend: Slight shortfall vs ~$840M reflected timing; dollars shift into early 2025 and roll into the new 2025–2029 plan .
CO Clean Energy Plan timing: Slight slippage reflects contract negotiations and deeper insight into bid timing; still fits 2030 objectives .
Wildfire legislation: SD and WY bills progressing; CO efforts underway with peers; potential for supportive federal legislation via EEI advocacy .

Estimates Context

S&P Global consensus for Q4 2024 EPS and revenue was not retrievable this cycle due to request‑limit constraints, so we cannot formally score beats/misses. Management’s 2025 EPS guidance of $4.00–$4.20 (~5% YoY) and the 10% capex plan increase suggest potential for upward estimate revisions in outer years tied to capital deployment and data center contributions, balanced against higher share count and interest expense assumptions .
Consensus unavailable from S&P Global this cycle (request limit reached) [GetEstimates error].

Key Takeaways for Investors

2024 delivered within guidance despite weather/outages; O&M execution and new rates drove EPS stabilization at $3.91 .
2025 EPS guide ($4.00–$4.20) anchors ~5% growth with explicit assumptions (O&M ~3.5% CAGR, equity $215–$235M, ~13% tax), offering transparency on near‑term drivers and diluters .
Structural growth: 5‑yr capex lifted 10% to $4.7B plus a capital‑light data center model with >1 GW pipeline; utility‑like earnings from market energy with limited incremental rate‑base needs through 2029 .
Regulatory progress remains constructive across multiple jurisdictions (IA settlement, AR implemented, KS filed; CO Clean Energy Plan approved), supporting margin recovery and reducing lag .
Electric segment saw lower off‑system sales and outage impacts; Gas segment margins strengthened on new rates and lower employee costs; interest expense remains a headwind amid higher rates .
Balance sheet on plan: net debt/total cap at 55% target; ample liquidity; management reiterates commitment to investment‑grade ratings .
Near‑term catalysts: CO Electric rate decision (late Q1/early Q2 2025), continued Ready Wyoming progress, formalization of PSPS wildfire program, and data center ramp beginning 2026 .

Appendix: Additional Relevant Press Releases

Dividend increased to $0.676/share quarterly (+4%) effective March 1, 2025; marks 55 consecutive years of increases .
Ready Wyoming initial 12‑mile segment energized; project on schedule for full service by end of 2025 .
Kansas Gas filed rate review seeking ~$17.2M new revenue; requests new rates 2H 2025 .

Notes: All quantitative values and statements sourced from the company’s 8‑K earnings release, press releases, and earnings call transcript as cited above. S&P Global consensus estimates were unavailable for Q4 2024 due to request‑limit constraints this cycle.

BLACK HILLS CORP /SD/ (BKH)·Q4 2024 Earnings Summary