(Source: PRNewswire-FirstCall)
RAPID CITY, S.D., Sept. 17 /PRNewswire-FirstCall/ -- Black Hills Corp. today announced that 2009 income from continuing operations is expected to be $2.40 to $2.65 per share, including approximately $0.10 per share of one-time integration-related expenses, resulting in pro-forma earnings of $2.50 to $2.75 per share. This range also includes $0.40 to $0.45 per share of earnings contribution, excluding the one-time integration expenses, from the recently acquired Aquila utilities now doing business as Black Hills Energy.
"The Aquila transaction and the recent sale of our independent power plants, combined with our diversified portfolio strategy, provide a solid platform for delivering value to our shareholders with a lower-risk profile and more consistent cash flows," said David Emery, chairman, president and chief executive officer of Black Hills Corp. "We have an exceptional team running good businesses enabling us to deliver results as we experience transformational growth and significant organizational change. In addition, we have the potential to realize increased efficiencies as systems and processes continue to be consolidated during the next 18 to 24 months," continued Emery.
Black Hills Corp. 2009 earnings guidance is predicated on the following considerations:
-- Improved earnings from our energy marketing business as compared to historical earnings that exclude the extraordinary results in 2007; -- Interest costs related to the expected long-term financing that will replace the $383 million short-term bridge loan expiring in February 2009; -- For 2009, oil and gas production growth of 6 percent to 10 percent over 2008 levels is anticipated. We continue to expect our long-term oil and gas production growth to be 2 percent to 4 percent; -- Decreased earnings at our Wyodak coal mine reflecting additional operations and maintenance costs from higher overburden removal; -- Anticipated oil and gas average NYMEX prices of $8.36 per MMBtu for natural gas and $103.20 per Bbl for crude oil; production-weighted average well-head prices of $6.44 per Mcf and $95.16 per Bbl of oil, all based on forward strips, and average hedged prices of $6.52 per Mcf and $85.13 per Bbl; -- No significant unplanned outages at any of our power generation facilities; -- Normal operations and weather conditions within our utility service territories that impact customer usage, as well as off-system sales, construction, maintenance and/or capital investment projects; and -- No significant acquisitions or divestitures.
The company expects 2008 income from continuing operations to be $2.15 to $2.25 per share. This range includes the impact of the acquisition of five natural gas and electric utilities from Aquila in July 2008 and the sale of a 23.5 percent undivided interest in the Wygen I power plant. It also excludes the operating results from the divested IPP assets.
For full year 2008, the following table reconciles income expectations for continuing operations and the significant items impacting results.
