Earnings call transcript Q4 2022

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Operator

Good day and thank you for standing by. Welcome to the Fourth Quarter 2022 Black Hills Corporation's Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jerome Nichols, Director of Investor Relations.

Jerome Nichols

Thank you. everyone. morning, Good Hills earnings Black quarter full and Welcome call. Corporation's XXXX conference year to fourth

You earnings www.blackhillscorp.com find morning Relations can our at call for heading. our this our website at under Investor release the and materials

our President President Chief Evans, and Vice and Treasurer. Executive are and Officer; Senior and Chief Kinzley, quarterly Financial earnings Rich Kimberly Leading today President Linn discussion Officer; Nooney, Vice

and make Exchange earnings During and in by some may we contain today, comments defined inherent forward-looking discussion a our the are the Securities Commission, there uncertainties number as statements of of comments. such

XX-Q that expectations earnings website We believe direct we investor materially Slide XX-K with are could Commission Although our materially. Form of actual most Exchange and and of our to the differ Form that the a our factors Securities our release, based assumptions, to from on on our for reasonable you differ X beliefs results recent the may list cause expectations. future some filed results of and and presentation

now the to over turn call Linn Evans. will I

Linn Evans

us. Good Thank joining you for and thank Jerome. morning, everyone, you,

As opportunity we provide beyond. morning Rich announced will CFO, year-end mid-year, be financial our for provide the as review. incoming this financial Kimberly, to one gets the last so he and retiring outlook quarter, final will XXXX

start Slide some X, key with takeaways. I'll on

weighing XXXX. was within that, for execution the what are carrying driven team's want control rates our by costs While we XXXX prices shortly, our successfully most current in offset to strong the impacts interest of increase through those details but of before and natural XXXX. I the rapid expectations macroeconomic XXXX, shift I and do into into gas I'll dive on on our recognize

energy and challenging executed team very and team range. financial and accomplished we earnings I'm our our quarter performance. as for strategy macroeconomic exceptional our the successful business our proud and small no we system-wide strategic resiliency, again, our advance of initiatives guidance delivered feat that conditions fourth regulatory results, future. growth considering delivered impacted Once This was a within operational what

towards strides call. customers. To remains made can Black our today, focus in XXXX, we you in excellence what which we serving very this also our of XXXX. on to listening Hills proud in thank for more dedication team I'm strengthening for sheet, our with balance wins your adequately achieved key We together cover a us than

consecutive performed top reliability quartile latest the that excellent the two the That's electric for solid assets. of And three All X, of Survey for operational electric gas of safety, customers. in the fourth To maintain EEI our our our the of three top point, highlights with continued team reliability quartile. pleased utilities electric our and half year, particularly our performance provide for in work by the industry-leading natural upper by Slide team. the I'm reliability. we

our peaks We our continue business reflected to new year. services, territories. the last demand we're XX These serve utilities at products loads electric into affirm customer all-time is which migration in service winter growing peak for or continue and and witnessing population our to the

XX increase consecutive Wyoming peak new this remarkable Notably, XXX our past in this served years represents a of we at ago. we megawatts Electric put years perspective, year's peak megawatt served have a To increasing demand. the nine customer Utility, XX% XXX peak of over

utilities avoiding peak some while country. regions Storm winter at loads during our Elliot, rolling three others In we December, also electric of blackouts in experienced by Winter all the of served new

cold weather. go our hand and priority are resiliency infrastructure our critical more is dangerously perhaps hand our given keeping absolute and and climate cold energy with demand. ongoing comfortable in The more resiliency than reliability The reliability customers ever interconnected growing a energy in of transition of and and safe network safety during weather

natural bitter Our Elliot, critical and December, for electric of once generation performance highlights and Storm through capacity infrastructure. excellent immediately resilient cold dispatchable the the need gas in again Winter

resources. summer contributions load our renewable minimal and During winter peak days, typically utilities electric our from our received

our wind experienced For farms, include of wind Electric, about XXX XX, December megawatts. peak megawatts. serving winter On total three a assets XXX that Colorado we load example,

other During was such our of the provide its time more balanced capacity. farm can megawatts. technology for wind that similar a potential need resources This economic megawatts reliable XX storage producing and that until XXX peak, battery only mix of highlights or energy generation

this And customer continue enhancing experience. we to our finally, make progress slide, on with

were we our year, the JD customers. for recognized with response communications During voice Power implemented chat we effective by and enhancements live and

a to and X, Slide EPS. increase in Moving execution X% regulatory financial delivered on where year-over-year we

We X%, consecutive years our extending shareholders. of to track also XX the to increased dividends record annual increased dividend by

Our team chain our supply challenges managed and $XXX million executed program. capital through successfully

front, remains team. On our of core effective the solutions regulatory negotiating customers and for strength shareholders strategic a

both year, Over and last rider Arkansas the for and for Electric. we rate settlements investment Wyoming reached requests approvals reviews Gas and constructive

last October Colorado, in pipeline process third customer. approved a this of by new through our commission regulatory includes anticipate filed electric in as transmission support was rider rider. quarter enhance to settlement recently planned. for is for review Electric the rate resiliency the Wyoming Our advancing the year. rates Gas our We Rocky which investment expansion and We will Mountain Natural That an transmission

remaining recovered applications those Storm the of have incremental our Winter of million review we date. all for $XXX and incurred more to costs for approvals one-third than activity, finalized costs, rate addition recovery fuel to during of we Uri In

we X, to support to Slide to resiliency, Moving customer enhance with comply our strategy and growth legislation. advanced emissions

Colorado system ongoing South operated Wyoming. and resource progress jointly Dakota made in electric and our For we've plans in our utilities, our for with

provide plans off gas by greenhouse a to intensity investment base these to to emissions reduce renewable XX% XXXX expect opportunities resources, We year. XXXX

resources helping Commission for energy constructive Energy our regarding Reduction will accessible while had The last economic customers, for and Plan. unanimous hearing more week settlement before Colorado our the goals. these for We achieve renewable incentives economic more our Clean from Inflation Act, help our us make emissions the a agreement

addition by the be will includes last generation renewable renewable in bidding in XXX generated our an resources owned quarter, second The settlement with XXXX. of utility XX% week, agreement a utility. to approved seek. the of gas the by electricity new achieve needed customers' will of our half the the commence reduction megawatts XXX result is If the XX% greenhouse for as the of is being competitive presented in XXX approximately to Commission the megawatts process we Half This of resources. Colorado megawatts settlement resources expected again would emissions by to annual of owning

proposes of XXX Integrated and this we addition exploration megawatts that XXXX planning battery our Plan Dakota, renewable of those an resources submitted later quarter. We're of advanced also issue We Resource RFP which resources megawatts the for to of for XX South the storage.

to to Wyoming. project final respect Commission planned approval Construction received the is a of in transmission construct completion this the our With line, year, Wyoming October last we transmission with Southeastern from by Ready XXX-mile opportunities, start to Wyoming XXXX. end

additional our of opportunities gas to growth RNG placed agriculture-rich investment renewable number already and We're We've our a a we're of into natural expand possibilities business. business. RNG interconnects developing offerings variety service in pursuing our territories and across

We're additional upbeat We region. going and blockchain prospects shortly developing hyperscale to and opportunities we're other also to serve into Cheyenne, pursue customers. in blockchain about service customer in continue our first datacenters the

the already on goals. energy zero future. our gas we during goals sustainability emission mentioned our to net XXXX. the make vision to progress We our by emissions electric And also I enhanced year, utility continue for

such this fuels hits goal and RNG as will and carbon hydrogen. enhanced advanced achieve perhaps investment, reducing third-party We infrastructure integrating through low line ongoing processes leak detection, and

our includes Our It published TCFD other includes and information. details sustainability about report also relevant emissions initial our disclosure goals.

was inflation Our step it I'll my achieve in back, team to of on Slide in basis gas solid our financial significant was before guidance before in experienced Taking prices. volatile outlook rate and our a earnings. a this XXX X% interest two ago, we our economic points Rich Winter years environment, XXXX is accomplishment. less cover our and details earnings Kimberly execution managed natural is than summarized the business remarks Storm range, their XXXX perspective. elevated When hikes X. Through Uri, guidance and issued share will reflected

Since elevated supply control regulatory Uri customers recovery navigated to early numerous could go and you chain all get executed request, was completed discipline constraints and energy successfully pricing. our financial capital We constructive COVID. executed we and plan XXXX, the financed related it we significant from in with of effort. measures. a absorbed Storm I We've and I but cost results. believe managed rates great team through years idea, We successfully interest on on, and multiple cost for

share to on costs know that I you overshadowed environment. serve and We're said, is the macroeconomic impacts That XXXX by a necessary solid expenses frustration customers. addressing our increased carrying near-term inflationary our

can is control financial over ease XX near-term to XX through be fully pressures Although, short-term offset to measures. impact we expect what the cost earnings and these next months the months, beyond discipline

intact. strategy business remains our Importantly, and strong

We growth X% through remain year. optimistic of expect and X% profile EPS about our as XXXX we to future XXXX long-term a and base achieve to XXXX growth work

more due discuss will general we growth detail, our revised to in three we As EPS primarily long-term target, factors.

our increased and working in rates, capital increases driving expense. First, interest interest are which

finally, included credit the improve yet regulatory balance issue construct sheet. pressures support rating And intend business maintain we our rate to in capitalize Second, as our expenses solid structures. equity in inflationary and we our not the our to

forecast plan total strengthen year. forward to a capital while rolled by prudently our help $X.X XXXX billion. approximately of summarizes to per We run system. forecast at $XXX sheet This X five-year We've our investing approximately one year, a Slide strategic kept rate balance growth our safe million $XXX capital translates to our capital maintain of maintaining million plan. our

include intentional plan natural and investments. investment always Our investments Wyoming from Resource the or incremental which programmatic is incremental South Dakota million, capital our projects including our beyond opportunities. renewable Ready of examples storage Clean Energy and Ready arise of and Plan, does our Other Wyoming projects note I'll reflecting generation some and approximately Colorado $XXX Wyoming Plan, transmission gas forecast we're deferral XXXX projects. for evaluating pipeline additional needs, from resulting our not base and are assets any could

especially other drivers, little capital those that earnings no require pursuing also investment. to We're

has hours X%. XXXX, As usage, utilities, growth I already, territories with counts migration the organic customer megawatt with mentioned increased electric This over customer in to population XXXX. up our into retail translated drive continues since since sold total growth service X% across

than customers. gas increasing more do and our in serve utilities our by we continuous fostering through savings And sustainable usage ongoing we and We're also business cost how how natural innovation improvement X%. also

years I'll had complete pleasure call, have and Kimberly you years. was in my the welcoming already comments of deep Kimberly once experience has with XX prepared to who again recent many by of to with today. Hills us interact as Black just effective joining Xst. help the successor working be of our to I'm CFO already she Rich's be is April confident going curve CFO to to the lead forward. It's appointed right her like success ahead and our

finishing clock we from But still XXXX is high on will Rich before he Kimberly, and the with Rich? provide a and knees review his of hear results. is our he

Rich Kinzley

and good Linn, Thanks, everyone. morning,

analysts Since And and the to work privilege this years is thank all last I many I've represent CFO. developed update, and over Black investors earnings an had team. the the to over eight the last the honor Corporation years. conversations as It's friendships I've want appreciated my been the with Hills to

hands to I retirement, with you assure good that in I transition Kimberly. want you're As to

of for laid share where by EPS for consistent then a full compared to I'll quarter the compared increase XX, the quarter, full XXXX $X.XX with year comments out XXXX. and Slide last for We on we've XXXX. QX the for X% year per to delivered $X.XX year, start earnings $X.XX and my

in amounts Slide All change and the of drivers XX income slides XX quarter tax. full listed net illustrate for are and fourth after year. the on year-over-year these detailed

million days than at early especially QX. margin XX. degree warm in was million higher for utilities, the I'll $X.X normal growth customer, our new focus year $X.X and late weather energy Slide Results $XX electric customer and on year full million Higher higher increased rates and on from driven by investment QX the wholesale summer of and riders, and usage heating from from sales. per margin of benefited

record-breaking earnings share for year. the Compared in quarter share by benefited by warm for per full $X.XX weather the $X.XX per Compared quarter $X.XX weather weather fourth $X.XX and the fourth full earnings a benefited per XXXX, for and share to normal for QX and year. to the XXXX,

costs, X% and increased by inflationary higher for property the driven outside labor, expenses cloud materials fuel to environment. O&M computing taxes. due increased expenses and O&M debt, bad and year-over-year, generally higher services,

short-term by debt to were driven rates. natural volatile to and DD&A our Interest increased capital due gas increased prices program. investment expense increased higher due balances, which short-term

details in available filed earnings XX-K are to on margin and early next and Additional quarter-over-quarter year-over-year our changes and yesterday's week. be operating in expenses release in

charts strong our growth, issuances XXXX with equity rate record. XX acquisition. base being to by our show tempered These track after long-term the EPS balance earnings reflects Slide sheet and SourceGas our growth strengthen

over I'll for now our Kimberly turn the financial to call outlook.

Kimberly Nooney

Thank you, Rich.

would I the to earlier. I details, like into Before revisit dive Linn what said

last decades turmoil, rates three years, some Uri high and inflation, policy energy managed resulting COVID, in and volatile Winter monetary more recently higher and times, the During geopolitical including through interest extraordinary we've Storm markets. aggressive

The charts the Slide XX macroeconomic on in operate we reflect environment today.

and to we volatile This higher end a increase significant program. fund through territories basis Specifically, and prices of we differentials service in contributed gas at capital experienced commercial our in our which needs, the paper year. natural spot the working

a debt only couple short-term XXXX more We we anticipate at months year-end had $XXX had of than earlier. approximately million

with Our rates balance higher coupled short-term the interest increased fourth debt quarter. our borrowing in higher short-term expense

deferred interest gas pay these down elevated near-term. the expense costs expect recover balances, we in and we As

for the drivers $X.XX earnings our guidance. range leading Slide to to XX presents revised revised XXXX our guidance per outlook the identifies major This of bridge share. $X.XX

Moving increased on expect ongoing margins we from margin benefits. on offset customer non-recurring this XXXX and which slide, investments growth, right left to new

O&M inflation to to expenses, Although, manage we impact continues level XXXX. to below expect a

Additionally, gas This our lag gas regulatory has interest deferred rapidly interest pure a expense. costs in increase magnifying predominantly utility, resulted in are within cost higher mechanism. combined short-term recovery higher with rates as play

financing next year. this which now We one deferred costs of We issuances in our months, two expect impacting the are debt XX expect as recovery XX activities of instead XXXX to previously months these planned. over

updated issued in in our find earnings assumptions yesterday. guidance our You'll the appendix release

credit late and 'XX. maturity XXXX liquidity. debt adequate debt to we We're a Slide credit to targeting quality, and ratio solid schedule. of XX manageable outlines capitalization our structure maintaining financial capital or position liquidity to and our early investment continue by of committed through lens ratings the total a grade We're maintain mid-XXs

Our progress in this made the We earlier. even interrupted debt. costs driven Storm toward upward discussed Winter short-term I pressure by this XXXX, and on early in goal associated ratio reducing fuel Uri by deferred was by borrowings, the with progress XXXX

times We're Fitch our credit of quarter, outlook. for we our with to FFO adjusted In Moody's ratio affirmed to five which year-end. the expect fourth to and ratings and XX% leverage, achieve target a providing XX% also leverage FFO stable debt by

sheet credit capital strong issue exercise customers. future very investing intentional year, We leverage the ratings equity. We're to repay consecutive and flows at as for our are short-term about our maintaining for we strengthening continue prudently balance cash maintaining approximately $XXX our debt, while to million expenditures and financial our also second discipline

program issued equity, $XXX through in XXXX a issue million $XX and to in our Regarding aftermarket $XXX XXXX. equity we million million to expect

this rapidly gas pursue We're an tools time. to will our our call, quarterly minority and we options diligence balance manage at due In conditions, to our extensive a businesses, and sheet, evaluating transaction alternative strengthen not ongoing this for and in last investment consideration. our discussed including remain to elected capital a changing After utilities. we market always

Our the be cold who to of long-term business weather gas continue work service that is safety in territories. to a our those valuable live and utilities essential

in to normalized upsides our these environment latter assume plan which transmission, and are Slide Most out renewable beyond our forecast. of five-year strategy and more growth benefit remain base growth a long-term XX around opportunities, and datacenters generation incremental beyond macroeconomic long-term the and opportunities of outlook. blockchain, lays the migration our hyperscale earnings investment capital XXXX. our we population confident We ongoing in and and particularly part

dependable XXXX our X% and As our a of to of base year. component X% Also dividend growth increasing for growing critical a a value is EPS of strategy targeting as long-term we are result, for a long-term shareholders.

payout to track expect of XX%. and long-term We ratio record continue we're increases to of our dividend XX-year targeting XX% a

opportunities the closing, well we strategy. pipeline success. look In and and long-term our I in confident for of strategic I'm team, that are I agile When positioned position our optimistic our developing, we sustainable am are and at experienced

over With to some that, comments. it I'll turn Linn? back final for Linn

Linn Evans

Kimberly. Thank you,

our our accomplished resiliency XXXX, customers' safe regulatory with pleased Once what team results, in again, service and solid growth. execution including our and reliable I'm advancing financial customers, supporting for very and

to as of financial focus discipline do migrate and and adapted through a a we to while successfully overcome We long-term and opportunities we will continue our of challenges maintaining landscape financial long-term variety so the dynamic in front leverage us.

take With your that, we'll questions.

Operator

with [Operator comes Bank Instructions] of first from Our Julien Dumoulin-Smith question America.

proceed. may You

Julien Dumoulin-Smith

And time. team, again, morning, good the Rich. for thanks Hi, congratulations

Linn Evans

Good morning, Julien.

Kimberly Nooney

Good morning, Julien.

Julien Dumoulin-Smith

maybe the first morning. good guys. dividend we The you come guidance the if of Hi, can. update midpoint updated to Thanks, here just to talk the payout about listen, Hi, ratio. wanted back the move not above Can the the of something change your to with slightly get you 'XX, Why not that top-end there? that wanted ratio. align new why I to things, at aligns implies payout updated target core

obviously, to, then, you you do to gas for and earnings X%. here prices of dynamics nature to point instance, about, X% the can speak earned well, How 'XX, see Considering the more X% trajectory? are 'XX here. transient, lower you the structural And you about X% many from secondly, more critical longer-dated more think to that your structural, think you that know, returns reset question about the interest rates how

Kimberly Nooney

morning, This is Julien. good Kimberly. Yes,

dividend ratio your really regarding we're So, strategy. payout confident question, our in long-term

the felt how record we there, believe that We payout target our noted our about think we is is the growth pretty -- dividend As of increase XX-year about evident XX% the changes of growth we track to vision as ratio. to of us. sense given warranted. was And think the XX% and longer-term for to made XX% about other company XX% some we talk

Linn Evans

questions. of what But -- would growth the front projects early are in go of to our and business confident to the have in of us. a is prospects We I we've these your Linn. you got and we while. feel last of some front going for is headwinds Julien, this strategy part latter

moderating. places is we're significant expenses. at some pretty price incurred We like Henry we Hub, et differential watching. our costs, with but gas the You price, have mentioned differentials true basis gas prices That are cetera,

had gas December, we at that during forecast. especially being caused extraordinary things in Otherwise, the In Storm December of Winter cetera, cetera. money in Paso we example, more lot Elliot, et which Elliot some absorb thing El et will And we for sold, course we in that not now a spend financing. we than of had circumstance, that significant not good full to prices a capacity, we Storm we be terms that did us for anticipated. alone, pipeline, debt particular Winter like to have But are

a And pure as adjustments have our predominantly utility, then we do states. think about gas play cost you good in

However, differential months us basis to it's take when costs. if going before to those will, XX you this extraordinary months really have we XX recoup we out, blow

that's again we're So cetera. financing, that debt et

of December O&M. linger And know able recognize absorb in up employee in going that general cost and two. came to and through inflation, our as things that I into well we're to we've And just or that are job place done help nice were as us, we programs hope especially managing had higher you for the we with a that year controlling headwinds, these us expenses. of we have nature next So inflation to general

sound, again respect us. Energy after late know, that the things growth in our our the once we've some we to Clean opportunities, great But piles South in we want we IRP of is However, Dakota. quarter, challenge the have comment, you with business experienced before Plan got that what structure Colorado, just to fourth crystallizing have in I onto

example, got us program. for capital ahead So some opportunities are good of currently, reflected in and our we've not

Julien Dumoulin-Smith

near-term that this maybe those here, costs function think understood. type i.e., of specific more recovery? how and least Yes, lag to the in Elliot, at elevated or and right, is through moving do costs elevated maybe a a state-level authorized items? get structural. that of do of some Understand recovery little them to bit your cost and and if stay specifics becomes about you associated back about make closer costs, question. its of of a the to How ultimately, way then I gas if beyond as returns about going the you say be able the you mean how are 'XX great the incurred does 'XX, as inflation of these for interest 'XX, think 'XX here, think and will, But you recovery should ultimately here being

Linn Evans

will said, one we question -- that any could often as adjusted. to time. that your have rate there, three more. interrupt this would is be We those not very going We looking rate our close recognized Linn. see always question. Julien, to be strategy those on we for tweaked at with Sorry reviews rate those. still have reviews have, year, good that our three Again, respect go or at two we to regulatory also change per reviews be to if what amended We'll -- riders We've

of So our we recognize forward. regulatory and we regulatory be we kinds have of in you requests and if cadence, forward. as different adjusting go course will our those frequency, will, understand we'll And going

also We're sensitive customer to pressures. bill very

seeing the not are just their customers economy, across energy Our with inflation general bill.

be strive own we that and we're our as that innovative sensitive possibly expenses. to fact, will we to can be as So reduce we we as recognize fact

than have. year program within we the we we bills serve less more call that our our a can that that on innovative focus for on and they that organization, ways and customers now, efficient we've had forward glad recognizing I'm expensive as going energy our

point, to different going recognize summarize, your to So, do we'll forward. regulatory have a for we reviews cadence

Julien Dumoulin-Smith

Appreciate Excellent. Good luck. Well, much. time. thank you the guys very

Linn Evans

Thank you, Julien.

Operator

you. Thank

Our next and Williams Chris Company. question with Shank from Siebert comes Ellinghaus

proceed. may You

Chris Ellinghaus

quarter, that issues or the since equipment are faster side cost had anticipated? more you third referenced, you? Hi, of side? The cost as of supply risen on good everybody. it luck Rich, the really than have the retirement. with you sort that goes supply is you hoped. Hope chain How And

Kimberly Nooney

determine try that are Good are morning, our on costs how to to of well. I some Chris. elevated as we're And feeling. to our feeling, Yes, to the company pressures would that those working they pass say vendors same generally

availability but materials timing to we pushed it's we're able an real yes, say, it's from elevated still our a issue. vendors to but the both So, to being delayed, but being I through. starting to trying see see would some prices those still it's continuing yet of is perspective, overall, ease, are stabilize, receive from the

Linn Evans

this great of impact we a our Chris. question, it's able really overall on analyzing which a projects, to customers. And them is And help been will us and and as our team would they've Linn. Yes, the I capital complement to how them all of top on respect individually have been analyzing expense in bulk, our with push them out,

with pleased has real So how continue through team we'll and our to. managed that

Chris Ellinghaus

Okay.

Elliot expectations in interest You your your rate since third of expense quarter? a sort guidance, was of the but impact in outlook to could know, change your Storm the the some interest expense increase degree, in a see interest

Kimberly Nooney

great Yes, that's question, a Chris.

So we commercial finance all of this paper through our program.

XXX of If alone. it right, elevated over basis the at couple you AX/PX points the last look months, rates

we about from you the interest And rates that interest so so just originally and was on rate inverted more short-term forecasted. than with higher perspective, we're think an paying when had curve, that perspective

Chris Ellinghaus

Okay.

things into to some you the So do have chance lot the the get you you not of events growth South or some transmission, X% them, have that what Dakota. call that of a back Clearly, Colorado, with guidance, in rate X% there's former growth are opportunities? to upside a opportunities,

Linn Evans

that's can we I put a achieve, X% cautious, when Good suppose, we because achieve. question, will Chris. out X% Linn. be is what I'll to This

we Colorado will I crystallizing. and that Clean is recognize in recognized You're Energy the right, Plan

allow a megawatts have in that our utilities We our settlement XXX achieve to of new emissions. XX% of to greenhouse unanimous of XX% gas own reduction that generation plan would

going little forward in words, getting our In to and we're of time But issue for So, next believe, and get yes, program, bit I that our to that will done. quarter, out a that's it's other looking not there take plan. to we RFPs, done.

issue been with opportunity be Resource outer yes, for we there. build and will one, South meeting to quarter. to us impact we that We've that that around Integrated yet, and ready Dakota, that, this our perhaps starting what in Plan We're we got stakeholders yet but we'll have we're crystallize own make with quite think on that to the an years. not our public can to RFPs begin So respect

both exciting. those So are

and year the course, have ready be Of well. we've review in rate that recently you will transmission got our as transmission do We effective past rider, approved approved for a part mentioned in Wyoming Wyoming as us of this January.

are as several company. beginning some very excited crystallize are and us. them for our for opportunities to going We're your there indicated So great in you in us be intimated that's opportunity to and that question about

Chris Ellinghaus

Great. Okay.

growth, you the does we a didn't Lastly, than should lower assume dividend given growth really in address but range, sort payout this of dividend slightly suggest recent rate?

Kimberly Nooney

that we dividends mentioned, short-term this it of from slower overall, confident we return given be for a the the XXXX company, that XXXX the But just shareholders. very of are from think component long-term rate. from in So, growth a Linn and think perspective as growth where dividend growth as the going we're we perspective, about crucial and Obviously, the overall view perspective, we're a Chris, rate may in long-term just our history. we've a here noted

it. that's So we're viewing how just

Linn Evans

Yes. the did dividend, value subject keep that. understand to Linn. we job perspective answering of we years maintain, straight This approval. a Kimberly intend Board that is We a on our and record our course, nice is XX that. to shareholders' to Increasing

will to we these but front in that the be can very As important might these to we anticipate a -- continue migrate us, of increase dividend. bit waters us, for flexibility navigate

Chris Ellinghaus

so Appreciate much Thank the Okay. it, color. you guys. for

Linn Evans

Thank you, Chris.

Kimberly Nooney

you. Thank

Operator

you. Thank

next comes Our question from Andrew Weisel Scotiabank. with

You may proceed.

Andrew Weisel

up of questions that a have I on to Hi, couple want good been morning, follow everyone. asked.

long-term, in X%, clearly. X% defined it bit more you it, call a So, had to on little first, the past the you

also So, I you guess, growth to we the below growth rate. should in end? that an macro plus? that into question low growth compound the expect XXXX Does be is, headwinds that going accelerate clarified or And annual mean 'XX, X%, my might average 'XX given at

Linn Evans

into we're go headwinds if We is will it that, planning Thanks next we year. bringing but for how seeing question. into may that's you will Linn. respect we're this the see We're XXXX. anticipate what with Andrew, We for that. forward. to that XXXX for worst planning don't know continue the to Great in

So responsive being but after I'll five-year year observation, on this say sure back Yes, growth your the do question, I think end focus we're your including to Andrew. see on XXXX. that's is Hopefully, we're growing we right. each plan, of going to more

Andrew Weisel

five-year through 'XX? you that And the plan, it's Yes. said so goes

Linn Evans

Yes.

Andrew Weisel

Okay, great.

your you the catch down up Next but kind how pursue one do you're are is in how you biggest reset states? gas changes potential always of means question Obviously, volatility the some in often reset up, and your might rates on price this and often recovery, jurisdictions? of they the playing

Linn Evans

Yes, state, that again. by where Linn question. for varies thank you I'll start. this that's is It Andrew,

Some get we quick than lag, some states, are that. full-year immediate we a some more have states, recovery; fairly

a cost be based to recent gas hindsight. our off Sometimes are we not of adjustments on were of and accurate forecast out turned based the forecast frankly that some in

customers So nature. price is signals to the it shareholders evaluate appropriately to most that and timeliness, with we we and we're that fair to is things forward go of as so fair what and varies by state will what respect sending that's

it So varies probably for really state. again third the by time,

Andrew Weisel

it regulatory lastly, the calendar, beyond Then might accelerating underway? currently enough. Fair specifically you see Okay. Is filings? we the potentially next where what's mentioned

Linn Evans

this quite prepared Yes. Andrew, Thank to is not We're again. announce you that. for question. that Linn

next relatively that maybe will We probably soon, quarter. do

anticipate, not the reviews just file. do will we of job make relationships sure in our rate have before Our public that that announcements. to probably course three will ready we want we're quite you we that, down regard we fantastic regulatory does and and to And talking but typical And managing expectations. stakeholders in we're XXXX a team make to can sitting still of

Andrew Weisel

enjoy to much Very your good. Thank congratulations you the again Rich, and and Rich. with Kimberly very grandkids. time

Rich Kinzley

Andrew. Thanks,

Kimberly Nooney

Thank you.

Linn Evans

Thank you questions, your for Andrew.

Operator

you. Thank

next from Our Lee Brandon question comes Mizuho. with

may You proceed.

Brandon Lee

Hi, and Linn, gets what plan X% Rich, the are there, you I Kimberly. you range, your X%? for and hi Quick does gets X% hi middle question, to X% currently the you what in guess, where puts capital you to to

Linn Evans

out -- that. be capital is EPS know expanding it to other again. that opportunities part It's stay hyperscale, you program silent for And Brandon. -- mining. rate also continuing that Linn respect question, we've there. serve is then fundamental I our This Thank is datacenters, going a And on blockchain with growth our we just that of important to got foundation We'll to will that, that. growth

on Our here soon. first miner turns blockchain very

business very got about migration our territories, service We've We're incoming more that. into excited is coming.

those strong. fundamentals are all So

current in So and with the we in in range combination target. that us that of plan that our the all put current things growth our forecast have

Brandon Lee

All Thanks That's great. other a Okay, had. lot. were I all my questions asked.

Linn Evans

appreciate Brandon, you question. it. thank your for We

Operator

I'd turn session. to Thank this to any for concludes back you. Linn Q&A closing it remarks. the now Evans like And

Linn Evans

Well, Thank to we forward shareholders look customers you much. very providing our and value.

through we're than As these that in successfully going through a we'll interest and we environment, hope headwinds in the And the we confident and company. us facing challenges team, our despite better about through do. and these migrate that rate I'm I more voices hear our current migrate and ever and in. we macro migrate make are will what stronger today can you future, optimism to the short-term near-term

my every for my each I work closing, very day. customers. co-workers of again each to you our to dedication dedication of I'm gratitude their one their alongside In safety, to sincere serving extend privileged to

best So and Day, appreciate Thank a for morning. all Hills you. you very to questions productive Black this Energy wishes Safe a and we day of the

Operator

call. concludes for you. you conference Thank today's Thank participating. This

now may You disconnect.

Black Hills (BKH) 8 Feb 232022 Q4 Earnings call transcript