This excerpt taken from the BKH 8-K filed May 1, 2009.
UTILITIES PERFORMING WELL AND STRATEGY ON TRACK
RAPID CITY, SD April 30, 2009 Black Hills Corp. (NYSE: BKH) today announced first quarter 2009 financial results. Net income for the three months ended Mar. 31, 2009 increased 57% to $26.4 million, or $0.68 per share compared to net income of $16.8 million or $0.44 per share for the same period in 2008. Income from continuing operations for the first quarter 2009 was $25.6 million, or $0.66 per share, compared to income from continuing operations for the first quarter 2008 of $11.8 million, or $0.31 per share.
Included in the results are the earnings from the utilities acquired from Aquila on July 14, 2008 and impacts from the following notable items:
With the transformational year of 2008 behind us, we are pleased to begin 2009 with improved financial and operating results for the first quarter. We are benefiting from a stronger regulated portfolio of assets that provides more stable cash flows and earnings as a result of the 2008 acquisition of additional utility properties. We continue to achieve strategic milestones critical to our business and growth initiatives including the approval of transmission and natural gas rate cases and the approval to construct rate base generation assets. Our Energy Marketing business performed better than during the same quarter in 2008 despite choosing to limit usage of their uncommitted stand-alone credit facility in an effort to preserve liquidity. We are in the process of obtaining a committed stand-alone credit facility to provide for the needs of Enserco and are encouraged by the expanded interest of banks as we near the completion of this process, said David R. Emery, chairman, president and chief executive officer of Black Hills Corp.
In addition, on March 31, 2009 the Colorado Public Utilities Commission issued an order pertaining to the Electric Resource Plan for the companys Black Hills Energy - Colorado Electric utility providing the opportunity to construct and operate two LMS-100 natural gas turbines to serve a portion of the customer requirements when the utilitys current power purchase agreement expires on December 31, 2011. On March 25, 2009 Black Hills Energy - Colorado Electric issued a 2009 Non-intermittent Resource Solicitation to request bids that will determine how the remaining customer requirements will be supplied. The companys non-regulated power generation subsidiary may submit a bid to supply all or a portion of those resource requirements.
Compared to the first quarter of 2008, income from continuing operations in the first quarter of 2009 reflects the following:
$17.3 million in gas utility earnings
$0.9 million decrease in electric utility earnings
$18.0 million increase in power generation earnings
$1.0 million increase in energy marketing earnings
$0.8 million decrease in coal mining earnings
$28.3 million decrease in oil and gas earnings
$7.5 million increase in corporate earnings
Although were pleased with the first quarter 2009 performance of our business units, continued low natural gas prices will negatively impact our oil and gas segment. They may also affect margins from Energy Marketing and off-system sales of electricity. The improving credit markets will allow us to secure our expected long-term financing needs over the remainder of the year while attaining satisfactory results for both shareholders and customers.
Our well-defined growth projects and capital investment plans remain a priority. Our Wygen III construction project continues to remain on budget and on schedule to be in service by June 2010; and we are excited to commence construction of gas-fired power generation facilities to serve our Colorado Electric customers. Despite the challenging economic times, our businesses will continue to create long-term value for shareholders. Our company is well positioned with a focused strategy, talented and dedicated employees, access to capital markets, and the opportunity to capture the benefits of operating efficiencies as our integration projects are completed, concluded Emery.