Black Hills Corporation: SWOT Analysis & Company Profile by BusinessReview

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									Black Hills Corporation

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Black Hills Corporation: SWOT Analysis &
Company Profile


Reference code: BRPW048CP10-Q4

Published: Apr 2010




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Black Hills Corporation - SWOT Profile                                             Page 1
Black Hills Corporation

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Black Hills Corporation - Company Overview

Black Hills Corporation (Black Hills) is an integrated energy company, engaged in the businesses of wholesale non-
regulated energy, retailing of electricity as well as electric and gas distribution. The company operates with two business
groups, namely Non-regulated Energy and Utilities. Its Non-regulated Energy Group includes power generation, coal
mining, oil and gas and energy marketing segments. On the other hand, the company’s Utilities Group conducts electric
and natural gas utility operations throughout the Colorado, Iowa, Kansas, Nebraska, Montana, South Dakota, and
Wyoming. The company has spanned its business operations across the domestic market principally located within the
US. It is headquartered in South Dakota, the US.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 1,269.58 million during the fiscal year ended December 2009, an
increase of 26.23% over 2008. The operating profit of the company was USD 126.83 million during the fiscal year 2009,
an increase of 126.98% over 2008. The net profit of the company was USD 81.56 million during the fiscal year 2009, a
decrease of 22.39% from 2008.




Black Hills Corporation - Key Facts

Black Hills Corporation, Key Facts

                                  625 Ninth Street, Rapid City,
                                  South Dakota (SD), 57701,         Ticker Symbol, Stock       BKH (New York Stock
Corporate Address:
                                                                    Exchange                   Exchange)
                                  United States


Telephone                         + 1 605 7211700                   No. of Employees           2,122



Fax                               + 1 605 3484748                   Financial Year End         December



URL                               www.blackhillscorp.com            Revenue (in USD Million)   1,269.58



Industry                          Energy and Utilities , Power



Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Black Hills Corporation - SWOT Profile                                                                               Page 2
Black Hills Corporation

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Black Hills Corporation - Business Description

Black Hills is a diversified energy company. The company along with its subsidiaries is engaged in the businesses of
wholesale non-regulated energy, retailing of electricity as well as electric and gas distribution. It operates in the US with
two business groups namely, Utilities and Non-regulated Energy.

The company’s Utilities Group includes its Electric Utilities and Natural Gas Utilities operations. The company carries out
its Electric Utilities operation through its three subsidiaries, namely, Black Hills Power, Inc. (Black Hills Power), Cheyenne
Light, Fuel and Power Company (Cheyenne Light), and Black Hills Energy - Colorado Electric. The Electric Utilities
segment generates, transmits and distributes electricity to approximately 202,100 customers in South Dakota, Wyoming,
Colorado and Montana. In addition, Cheyenne Light also distributes natural gas to approximately 33,300 natural gas utility
customers in Wyoming. The company carries out its Natural Gas Utilities operation through its four subsidiaries, namely,
Black Hills Colorado Gas Utility Company, LP (Colorado Gas), Black Hills Iowa Gas Utility Company, LLC (Iowa Gas),
Black Hills Kansas Gas Utility Company, LLC (Kansas Gas) and Black Hills Nebraska Gas Utility Company, LLC
(Nebraska Gas). The Natural Gas Utilities segment distributes natural gas to approximately 524,000 customers in
Colorado, Iowa, Kansas and Nebraska.

Black Hills through its Non-regulated Energy Group produces and sells electric capacity and energy through various
subsidiaries. The Non-regulated Energy Group consists of four business segments namely, Oil and Gas; Power
Generation; Coal Mining; and Energy Marketing.

The company’s Oil and Gas segment, operates through Black Hills Exploration and Production, Inc. (BHEP) and its
subsidiaries, acquires, explores for, develops and produces natural gas and crude oil for sale into commodity markets. Its
Power Generation segment, operates through Black Hills Electric Generation, LLC (Black Hills Electric Generation) and its
subsidiaries, acquires, develops and operates unregulated power plants. It holds interests in independent power plants
having a total net ownership of 141 MW in Wyoming and Idaho. The power plants of the company include, Gillette CT,
Wygen I, Glenns Ferry Cogeneration, Rupert Cogeneration and Ontario Cogeneration.

The company’s Coal Mining segment operates through Wyodak Resources Development Corporation (WRDC) and is
involved in mining and processing of low-sulfur coal at its coal mine near Gillette, Wyoming. In 2008, the company
produced approximately six million tons of coal. The Energy Marketing segment of the company is involved in the
purchase, sale, storage and transportation of natural gas and crude oil. In addition, it also offers varied services including
asset optimization, price risk management and customized offerings to producer and end-use clients. This segment
operates through the company’s subsidiary, Enserco Energy Inc. (Enserco).

Black Hills has reached an agreement with the U.S. Department of Energy (DOE) for smart grid funding through grants
totaling $20.7 million for its electric utility subsidiaries, Black Hills Energy – Colorado Electric, Black Hills Power and
Cheyenne Light, Fuel & Power. The funds are combined with matching investments from the Black Hills electric utilities
that enable the installation of about 149,000 smart meters and related infrastructure investments.




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Black Hills Corporation - SWOT Profile                                                                              Page 3
Black Hills Corporation

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Black Hills Corporation - Major Products and Services

Black Hills is a diversified energy company engaged in the businesses of wholesale non-regulated energy, retailing of
electricity as well as electric and gas distribution. The company’s key products and services include the following:

Black Hills Corporation, Major Products and Services
Products:

Electricity

Natural Gas

Coal

Services:

Generation, Transmission, Distribution and Sale of Electricity and Natural Gas.
Source: Annual Report, Company Website, Primary and Secondary Research




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Black Hills Corporation - SWOT Profile                                                                          Page 4
Black Hills Corporation

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Black Hills Corporation - History

Black Hills Corporation, History

    Year                Event type                                                  Description


                                                The company's subsidiary Black Hills Wyoming, has completed the $51 million sale of
                                                23.5% ownership in its Wygen I power generation facility to The Municipal Energy
   2009      Others
                                                Agency of Nebraska (MEAN). Wygen I is an 85-MW coal-fired plant located near
                                                Gillette, Wyo.


   2008      Acquisitions/Mergers/Takeovers In 2008, the com
								
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