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ACQUISITION OF SOURCEGAS – Black Hills Corporation

Black Hills Corporation · Jul 13, 2015 · 20 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. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 1
    Acquisition of SourceGas July 13, 2015
  2. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 2
    Presenters David Emery Chairman, President and Chief Executive Officer Richard Kinzley Senior Vice President and Chief Financial Officer Acquisition of SourceGas - July 13, 2015 2
  3. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 3
    SourceGas Acquisition Highlights Fits growth Creates stronger utility with enhanced operating scale, strategy and driving more efficient delivery of services and benefitting benefits customers customers Increases Expands…
  4. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 4
    Transaction Overview On July 12, 2015, Black Hills entered into an agreement to acquire SourceGas Holdings LLC from investment funds managed by Alinda Capital Partners and GE Unit (NYSE:GE) GE Energy Financial Services 1.89 billion…
  5. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 5
    A Compelling Strategic Transaction Highly complementary fit, with current Black Hills operations in three of four SourceGas states Diversifies into new state of Arkansas with strong customer growth and Fits Regulated constructive…
  6. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 6
    Complementary Utility Service Territories Acquisition of SourceGas - July 13, 2015 7
  7. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 7
    SourceGas Overview Highlights Service territory map Natural gas utility company provides distribution, Legend State capitals transportation, storage and sales to diverse customer Corporate Headquarters mix Major division offices…
  8. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 8
    SourceGas Overview Significant Organic Growth Opportunities Favorable economic and demographic drivers in service territories Robust Over 600 million of long term pipeline safety and integrity Pipeline investment opportunities…
  9. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 9
    SourceGas Overview Growth Supported By Constructive Regulatory Environments Goal / Mechanism AR CO NE WY RMNG(2) Reduce Regulatory Lag Forward test year methodology P P P P P Expedited rate case option / interim rates P P P P…
  10. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 10
    SourceGas Overview Increasing EBITDA and Rate Base Normalized EBITDA ( millions) 2012A to Estimated Closing 2012AEst. Closing CAGR: 7.6% 155 119 128 104 108 % growth 3.7% 11.2% 6.7% 13.0% 2012A 2013A 2014A 2015E 2016…
  11. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 11
    Pro Forma Combined Utility Overview Pro forma statistics Combined EBITDA ( millions) 700 571 600 500 155(1) 400 300 (3) 200 416 100 0 Combined rate base ( millions) 3,500 2,876 3,000 2,500 900(2) 2,000 1,500 (3)…
  12. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 12
    Combination Enhances Black Hills Scale Regional Utilities Number of Customers (millions) 5.32 Electric Gas 4.40 1.57 1.42 1.20 1.10 0.98 1.04 0.84 0.84 0.78 0.75 0.70 0.70 0.70 0.54 0.52 0.43 0.40 0.21 0.171 0.13 XEL WEC TE LNT…
  13. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 13
    Regulatory Considerations The PSC must consider whether the transaction has: No adverse effect on level of service No substantial change to competition in the state Arkansas Good financial condition of acquirer No detriment to public…
  14. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 14
    Transaction integration led by experienced team Successfully integrated 19 electric and natural gas utilities over the last decade Existing scalable systems and processes reduce integration efforts and time Strong cultural fit…
  15. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 15
    SourceGas Acquisition Highlights Fits growth Creates stronger utility with enhanced operating scale, strategy and driving more efficient delivery of services and benefitting benefits customers customers Increases Expands…
  16. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 16
    Appendix Natural gas line installation near White Creek, Neb. Acquisition of SourceGas - July 17 13, 2015
  17. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 17
    Pro forma Corporate Structure Note: Reflects transaction structure currently under consideration Acquisition of SourceGas - July 13, 2015 18
  18. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 18
    Credit Ratings as of July 10, 2015 Black Hills Corporation Black Hills Corporation Acquisition of SourceGas - July 13, 2015 19
  19. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 19
  20. ACQUISITION OF SOURCEGAS – Black Hills Corporation – slide 20
    To see more ways we are improving life with energy visit us at www.blackhillscorp.com.

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