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Black Hills Corp. Reports Third Quarter 2009 Results, Announces Quarterly Dividend and Provides Earnings Guidance.

Article Excerpt
GROWTH Projects on target and short term debt refinanced

RAPID CITY, S.D., Oct. 29 /PRNewswire-FirstCall/ -- Black Hills Corp. today announced third quarter 2009 financial results. Loss from continuing operations for the third quarter 2009 was $3.9 million, or $0.10 per share, compared to income from continuing operations for the third quarter 2008 of $19.5 million, or $0.51 per share. Net loss for the three months ended Sept. 30, 2009, was $2.2 million, or $0.06 per share compared to net income of $164.9 million or $4.29 per share for the same period in 2008. The 2009 quarterly results include a $5.7 million, or $0.15 per share non-cash mark-to-market loss for certain interest rate swaps.

For the nine months ended Sept. 30, 2009, income from continuing operations was $46.4 million, or $1.20 per share, compared to $44.5 million, or $1.16 per share for the same period ended Sept. 30, 2008. Net income for the nine months ended Sept. 30, 2009, was $48.8 million, or $1.26 per share, compared to $203.9 million, or $5.31 per share, reported for the same period in 2008. The 2009 results include a $24.6 million or $0.64 per share non-cash mark-to-market gain for certain interest rate swaps; a $16.9 million, or $0.44 per share, gain on the sale of a 23.5 percent ownership interest in the Wygen I power generation facility; and a $27.8 million, or $0.72 per share, non-cash ceiling test impairment charge.

"We made substantial progress during the third quarter on key strategic growth initiatives. However, continued low natural gas prices reduced income from our oil and gas and energy marketing businesses and lower off-system sales margins for our electric utilities. We are not satisfied with our bottom-line results in 2009, but as our guidance for 2010 indicates, we are confident that planned capital expenditures will lead to strong earnings growth in the coming years," said David R. Emery, chairman, president and CEO of Black Hills Corp. "Our employees continue to make great progress on our strategic and integration projects that strengthen our balance sheet, increase our asset base and improve operating efficiencies for the long-term benefit of our customers and shareholders. We recently completed a $180 million first mortgage bond offering at very favorable rates, reducing short-term debt. With the completion of a 20-year power purchase agreement with Black Hills Energy - Colorado Electric, we now have plans to invest approximately $1 billion in growth capital through 2011."

Black Hills Corp reported highlights for the third quarter and other recent events including:

-- Black Hills Power filed two independent requests for electric revenue increases with the South Dakota Public Utility Commission and the Wyoming Public Service Commission to recover costs associated with the Wygen III power plant under construction near Gillette, Wyo., other generation, transmission and distribution assets and increased operating expenses. -- In the South Dakota request, Black Hills Power seeks a $32 million increase in annual utility revenues and anticipates new rates will be effective for South Dakota customers on April 1, 2010. -- In the Wyoming request, Black Hills Power seeks a $3.8 million increase in annual utility revenues and anticipates new rates will be effective for Wyoming customers in 2010. -- Construction of the Wygen III generation facility project is under budget and scheduled to begin commercial operation as early as April 1, 2010, three months earlier than originally expected. A 25 percent ownership interest in this generation facility was sold in April 2009. -- Plans to construct utility-owned gas-fired generation facilities to serve Black Hills Energy - Colorado Electric customers are moving forward. Equipment has been ordered, and construction is expected to begin in third quarter 2010 with an in-service date of January 2012. Hearings regarding the certificate of public convenience and necessity, filed in June 2009,...

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