Skip to main content CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation Investor Presentation | Shale Experts
Loading...
Pm

CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation

Black Hills Corporation · Feb 6, 2013 · 40 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 1
    Credit Suisse Energy Summit 2013 February 4 7, 2013
  2. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 2
    Discussion Agenda Company Overview Financial Review Strategic Objectives Q&A 3 Credit Suisse February 2013
  3. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 3
    Company Overview 4 Credit Suisse February 2013 Pueblo Airport Generating Station
  4. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 4
    Black Hills Corporation Today Publicly traded company since 1941 Average 3 - month trading volume Listed on NYSE since 1980, trading approx. 224,000 shares daily under symbol BKH Increased annual dividend for 43 Market…
  5. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 5
    Black Hills Corporation Overview A diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice. Based in Rapid City, SD, with corporate offices in Denver, CO, and Papillion, NE, the…
  6. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 6
    Electric and Gas Utilities Regulated Electric and Gas Utilities Serving over 765,000 customers Cheyenne Iowa Black Hills Nebraska Gas Light Power Gas Cheyenne Colorado Light Gas Kansas Gas Colorado Electric Electric…
  7. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 7
    Non-Regulated Energy Power Generation** Coal Mining** Ownership in three power generation facilities totaling 309 MW Serves as fuel supply to adjacent mine mouth electric power generation customers Wygen I - 69 MW of a 90 MW…
  8. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 8
    Q4 2012 Highlights Business Environment Slightly colder than normal weather in utility service territories Continued low natural gas prices - average Henry Hub cash prices below 3.50 per MMBtu Utilities Black Hills Power filed a…
  9. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 9
    Q4 2012 Highlights Utilities continued Colorado Electric 29 MW Busch Ranch wind project and associated 16.9 million Southern Connector electric transmission line project was completed and placed into service on Oct. 16 Colorado…
  10. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 10
    Q4 2012 Highlights Coal Mining Revised mine plan, with operations in lower overburden ratios, reduced mining costs and improved overall profitability Improved results also reflect productivity and efficiency gains combined with…
  11. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 11
    Financial Review Credit Suisse February 2013
  12. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 12
    Earnings Per Share Analysis Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012 YTD 2011 Net Income (loss) 0.60 0.68 (0.31) 0.78 0.70 1.85 1.24 Loss (income) from discontinued operations (0.16) 0.12 0.03 - - 0.16 (0.23) Income (loss)…
  13. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 13
    Income Statement (in millions, except earnings per share) 4th QTR YTD 2012 2011 2012 2011 Revenue 318.9 356.0 1,173.9 1,272.2 Gross margin 195.0 186.7 766.8 697.2 Operating expenses (87.7) (96.4) (366.7) (375.4) DD&A (33.2) (38.2)…
  14. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 14
    2012 Revenue/Op Income Summary 626.9 Total Revenue Electric Util 614.3 (in millions) 1,272.2 454.1 Gas Util 1,173.8 554.5 81.0 Power Gen* 31.7 YTD 2012 57.8 YTD 2011 Coal Mining 66.9 79.1 Oil & Gas 79.8 (125.1) Corporate,…
  15. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 15
    Capital Structure (In millions, except for ratios) Dec. 31, March 31, June 30, Sep. 30, Dec. 31, 2011 2012 2012 2012 2012 Capitalization Short-term Debt 347.5 234.0 452.6 553.3 381.0 Long-term Debt 1,280.4 1,272.0 1,044.9 943.0…
  16. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 16
    2013 Earnings Guidance Black Hills Corp. reaffirms its guidance for 2013 earnings from continuing operations, as adjusted, to be in the range of 2.20 to 2.40 per share as previously issued on Nov. 13, 2012, based on the following…
  17. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 17
    Growth Operating Income and EPS, as Adjusted* (in millions, except per share amount) 2009 2013 EPS CAGR = 13.6% * Non-GAAP Measure ** Projection - Mid-point Range of 2013 Earnings Guidance as re-affirmed on 1/31/13 (Operating…
  18. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 18
    Strategic Objectives Credit Suisse February 2013 Busch Ranch wind farm south of Pueblo
  19. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 19
    Strategic Objectives Utility-centered energy company well positioned to build upon a track record of successful utility growth Achieve top-tier operational performance in a culture of continuous improvement Lead industry peers in…
  20. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 20
    Strategic Objective Operating Performance 2012 Customer Service O&M Expense per Customer 70.00 Safety 60.00 50.00 BHC Other CIS IT 40.00 Collection Revenue Protection 30.00 Business Offices Call Center Cash…
  21. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 21
    Strategic Objective Operating Performance Power Plant Fleet Availability by Fuel Type Natural Gas Turbine Starting Reliability 100% 100% BHC Industry BHC Industry 96% 96% 92% 92% 88% 88% 84% 84% 80% 80% Coal (61%*) Gas…
  22. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 22
    Strategic Objective Earnings Growth Historical and Forecasted Capital Expenditures (in millions)* 490 452 416 384 339 205 340 108 199 95 287 54 127 116 344 285 285 289 217 213 171 2009 2010 2011 2012 2013E 2014E 2015E *…
  23. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 23
    Strategic Objective Earnings Growth Capital Investments by Segment Historical and Forecasted Capital Expenditures (in millions) 2009 2010 2011 2012 2013E* 2014E* 2015E* Generation 72 151 82 30 Transmission 38 36 40 21 Other 57 97…
  24. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 24
    Strategic Objective Earnings Growth Cheyenne Prairie Generating Station New Generation Helps Meet Growing Demand and New Environmental Regulations Overview: New 132 MW, 237 million generating plant jointly owned by Cheyenne Light and…
  25. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 25
    Strategic Objective Earnings Upside Oil and Gas Growth Strategy Prove up and capture value of existing oil and gas properties Prove up probable and possible reserves Capture value through optionality Participate in limited…
  26. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 26
    Strategic Objective Earnings Upside Oil and Gas Mancos Shale Strategy Three successful test wells drilled in 2011 affirmed potential in San Juan and Piceance Basins; Second Piceance Basin test well produced condensate and higher Btu…
  27. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 27
    Strategic Objective Credit Ratings Standard and Poors and Moodys changed their ratings outlook for Black Hills Corporation from stable to positive during October Standard & Poors changed Black Hills Corporations business risk profile…
  28. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 28
    Strategic Objective - Dividend Growth Increased for 43 consecutive years 1.55 Dividend yield was 3.7% on Jan. 25, 2013 1.52 1.50 1.48 1.46 1.45 1.44 1.42 Annual Dividend 1.40 Per Share 1.40 1.35 1.30 1.25 1.20…
  29. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 29
    2012 Scorecard Strategy 2012 Progress and Future Initiatives UTILITIES Complete construction of Colorado Electric 29 MW wind project (Q4) + Acquire regulated utility properties in our geographic region Complete CPCN process for third…
  30. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 30
    2013 Scorecard Strategy 2013 Progress and Future Initiatives UTILITIES + Acquire regulated utility properties in our geographic region Commence construction on Cheyenne Prairie Generating Station (CPGS) (Q2) + Construct additional cost…
  31. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 31
    Questions 32 Credit Suisse February 2013
  32. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 32
    Use of Non-GAAP Financial Measures Use of Non-GAAP Financial Measures EBITDA and EBITDA, as adjusted We believe that our presentation of earnings before interest, taxes, depreciation and amortization (EBITDA) and EBITDA, as adjusted…
  33. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 33
    Use of Non-GAAP Financial Measures Revenue, as Adjusted Power Generation Electric Gas Power Coal Oil and Inter-co Other Inter- Q4 2012 Revenue, as Adjusted Utilities Utilities Generation Mining Gas Corporate Lease Elims co Elims Total…
  34. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 34
    Use of Non-GAAP Financial Measures - EBITDA (in millions) Q4 2012 Q4 2011 YTD 2012 YTD 2011 Income from continuing operations 30.9 18.8 88.5 40.4 Depreciation, depletion and amortization 33.2 38.1 154.6 135.6 Impairment Oil and Gas…
  35. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 35
    Use of Non-GAAP Financial Measures Income from Continuing Operations, as adjusted (in thousands after-tax) Electric Gas Power Coal Oil and QTD Dec 31, 2012 Utilities Utilities Generation Mining Gas Corporate Total Income (loss) from…
  36. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 36
    Use of Non-GAAP Financial Measures Operating Income, as adjusted (in millions) Electric Gas Power Coal Oil and QTD Dec 31, 2012 Utilities Utilities Generation Mining Gas Corporate Total Operating Income (loss) 36.6 23.3 11.4 1.1 0.3…
  37. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 37
    Use of Non-GAAP Financial Measures Income from Continuing Operations, as adjusted (in thousands after-tax) Electric Gas Power Coal Oil and YTD Dec 31, 2012 Utilities Utilities Generation Mining Gas Corporate Total Income (loss) from…
  38. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 38
    Use of Non-GAAP Financial Measures Operating Income, as adjusted (in millions) Electric Gas Power Coal Oil and YTD Dec 31, 2012 Utilities Utilities Generation Mining Gas Corporate Total Operating Income (loss) 131.7 66.2 44.8 2.1 (0.4)…
  39. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 39
    Appendix Supplemental appendix slides at the Investor Relations link at www.blackhillscorp.com 40 Credit Suisse February 2013
  40. CREDIT SUISSE ENERGY SUMMIT – Black Hills Corporation – slide 40
    Vision: Be the energy partner of choice. Mission: Improving life with energy.

From the store

Browse maps, data & reports in the Shale Experts store