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News Article | April 17, 2017
Site: www.prweb.com

Power Services Group, Inc. (PSG), headquartered in Anderson, SC, is pleased to announce the joining of the three existing Airco companies, headquartered in Pooler, GA, with Orbital Energy Services (OES), headquartered in Gainesville, GA, and Turbine Generator Maintenance, Inc. (TGM), headquartered in Cape Coral, FL as wholly-owned subsidiaries. These companies have a solid track record and reputation with over 75 years of combined operations. The parent company for the combined entity will be known as PSG. Together, the companies will provide customers a broad maintenance, repair and overhaul (MRO) solution for all rotating equipment and other critical plant maintenance services. More specifically, PSG’s service offering includes field services, field machining, steam path repairs, valve repair and parts manufacturing, generator inspection and repair, balance of plant maintenance, and specialty code welding. Industries served include power generation (nuclear, fossil, hydro-electric, and wind), industrial, and petrochemical. “PSG now operates as a turnkey solution provider, setting a new standard of service excellence with an attractive value proposition relative to our competitors. Our safety record, customer focus, proven team, broad service offering, flexibility, and engineered solutions allows us to partner with clients in a manner that has been missing in the marketplace for some time,” said Ronnie Onofry, CEO of Power Services Group. “Our clients seek a customer-focused, flexible, one-stop-shop for engineering and maintenance services. PSG provides the technical competence required to deliver a more cost-efficient and user-friendly solution. We listen to our customers and work in partnership with them to address the many challenges they face in a very demanding operating environment,” according to Jim Miller, Board Chair of PSG. PSG is proud to be one of the few remaining U.S.-owned, non-OEM companies in our space. We are confident you will find Power Services Group to be different from other industry players. Power Services Group (PSG) is a U.S.-based provider of integrated turnkey solutions in the areas of maintenance, repair and overhaul of steam and gas turbine equipment. PSG also provides balance of plant (BoP) services and equipment to support a wide range of industries, including Power Generation, Oil & Gas, and industrial process. PSG leverages the combined experience and legacy knowledge of its affiliated companies—Airco Inc., Turbine Generator Maintenance, and Orbital Energy Services. For questions or more information on PSG, please call or visit our website at http://www.powerservicesgroup.com.


BOULDER, Colo.--(BUSINESS WIRE)--A new report from Navigant Research examines the global market for power generation in upstream oil & gas applications, including onshore and offshore, exploration, and production, providing market forecasts for capacity and revenue, segmented by generation technology and region, through 2026. Technological advances, regulations, and macroeconomics are expanding the options available to exploration and production (E&P) companies as a variety of new business models are emerging that cut costs, boost efficiency, or otherwise improve operations in this energy-intensive industry. Click to tweet: According to a new report from @NavigantRSRCH, global capacity additions from power generation prime mover equipment are expected to grow from 3.9 GW in 2017 to 5.6 GW by 2026. “Demand for upstream power generation is returning as oil and gas production recovers, but the energy equation is shifting,” says Adam Forni, senior research analyst with Navigant Research. “Faster production periods, cheaper electricity storage, and growing use of gas fuels are pointing toward growing disruption in this established industry.” As disruption occurs, natural gas generator sets (gensets) are forecast to capture more market share from diesel as oil & gas producers use more wellhead gas for power generation, according to the report. In addition, as fast-producing shale oil wells shorten project timelines, rentals of power generation equipment are expected to grow. As battery storage declines in price, electricity producers are also expected to incorporate them into a growing share of sites to optimize power production and expand the capabilities of remote microgrids. The report, Power Generation in the Oil & Gas Industry, analyzes the global market for power generation in upstream O&G applications, including onshore and offshore, exploration, and production. The study provides an analysis of key market developments and covers diesel, dual-fuel, and natural gas gensets, turbines, and microturbines. Global market forecasts for capacity and revenue, segmented by generation technology and region, extend through 2026. The report also examines the key technologies available for power generation in upstream O&G, as well as the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website. Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com. Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com. * The information contained in this press release concerning the report, Power Generation in the Oil & Gas Industry, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.


In this report, The Global Heat Recovery Steam Generator (HRSG) Market is valued at USD XX million in 2016 and is expected to reach USD XX million by the end of 2022, growing at a CAGR of XX% between 2016 and 2022. Global Heat Recovery Steam Generator (HRSG) market competition by top manufacturers, with production, price, revenue (value) and market share for each manufacturer; the top players including Nooter Eriksen BHI Alstom Power CMI Energy Doosan E&C NEM Energy VOGT Power STF Babcock & Wilcox Mitsubishi Foster Wheeler Hangzhou Boiler BHEL Wuxi Huaguang Geographically, this report is segmented into several key Regions, with production, consumption, revenue (million USD), market share and growth rate of Heat Recovery Steam Generator (HRSG) in these regions, from 2012 to 2022 (forecast), covering North America Europe China Japan Southeast Asia India On the basis of product, this report displays the production, revenue, price, market share and growth rate of each type, primarily split into Vertical Horizontal On the basis on the end users/applications, this report focuses on the status and outlook for major applications/end users, consumption (sales), market share and growth rate of Heat Recovery Steam Generator (HRSG) for each application, including Power Generation Heating Desalination Others Global Heat Recovery Steam Generator (HRSG) Market Research Report 2017 1 Heat Recovery Steam Generator (HRSG) Market Overview 1.1 Product Overview and Scope of Heat Recovery Steam Generator (HRSG) 1.2 Heat Recovery Steam Generator (HRSG) Segment by Type (Product Category) 1.2.1 Global Heat Recovery Steam Generator (HRSG) Production and CAGR (%) Comparison by Type (Product Category) (2012-2022) 1.2.2 Global Heat Recovery Steam Generator (HRSG) Production Market Share by Type (Product Category) in 2016 1.2.3 Vertical 1.2.4 Horizontal 1.2.4 Type II 1.2.4 Type II 1.3 Global Heat Recovery Steam Generator (HRSG) Segment by Application 1.3.1 Heat Recovery Steam Generator (HRSG) Consumption (Sales) Comparison by Application (2012-2022) 1.3.2 Power Generation 1.3.3 Heating 1.3.4 Desalination 1.3.5 Others 1.4 Global Heat Recovery Steam Generator (HRSG) Market by Region (2012-2022) 1.4.1 Global Heat Recovery Steam Generator (HRSG) Market Size (Value) and CAGR (%) Comparison by Region (2012-2022) 1.4.2 North America Status and Prospect (2012-2022) 1.4.3 Europe Status and Prospect (2012-2022) 1.4.4 China Status and Prospect (2012-2022) 1.4.5 Japan Status and Prospect (2012-2022) 1.4.6 Southeast Asia Status and Prospect (2012-2022) 1.4.7 India Status and Prospect (2012-2022) 1.5 Global Market Size (Value) of Heat Recovery Steam Generator (HRSG) (2012-2022) 1.5.1 Global Heat Recovery Steam Generator (HRSG) Revenue Status and Outlook (2012-2022) 1.5.2 Global Heat Recovery Steam Generator (HRSG) Capacity, Production Status and Outlook (2012-2022) 7 Global Heat Recovery Steam Generator (HRSG) Manufacturers Profiles/Analysis 7.1 Nooter Eriksen 7.1.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.1.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.1.2.1 Product A 7.1.2.2 Product B 7.1.3 Nooter Eriksen Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.1.4 Main Business/Business Overview 7.2 BHI 7.2.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.2.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.2.2.1 Product A 7.2.2.2 Product B 7.2.3 BHI Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.2.4 Main Business/Business Overview 7.3 Alstom Power 7.3.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.3.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.3.2.1 Product A 7.3.2.2 Product B 7.3.3 Alstom Power Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.3.4 Main Business/Business Overview 7.4 CMI Energy 7.4.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.4.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.4.2.1 Product A 7.4.2.2 Product B 7.4.3 CMI Energy Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.4.4 Main Business/Business Overview 7.5 Doosan E&C 7.5.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.5.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.5.2.1 Product A 7.5.2.2 Product B 7.5.3 Doosan E&C Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.5.4 Main Business/Business Overview 7.6 NEM Energy 7.6.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.6.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.6.2.1 Product A 7.6.2.2 Product B 7.6.3 NEM Energy Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.6.4 Main Business/Business Overview 7.7 VOGT Power 7.7.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.7.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.7.2.1 Product A 7.7.2.2 Product B 7.7.3 VOGT Power Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.7.4 Main Business/Business Overview 7.8 STF 7.8.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.8.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.8.2.1 Product A 7.8.2.2 Product B 7.8.3 STF Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.8.4 Main Business/Business Overview 7.9 Babcock & Wilcox 7.9.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.9.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.9.2.1 Product A 7.9.2.2 Product B 7.9.3 Babcock & Wilcox Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.9.4 Main Business/Business Overview 7.10 Mitsubishi 7.10.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.10.2 Heat Recovery Steam Generator (HRSG) Product Category, Application and Specification 7.10.2.1 Product A 7.10.2.2 Product B 7.10.3 Mitsubishi Heat Recovery Steam Generator (HRSG) Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.10.4 Main Business/Business Overview 7.11 Foster Wheeler 7.12 Hangzhou Boiler 7.13 BHEL 7.14 Wuxi Huaguang For more information, please visit http://www.wiseguyreports.com


— The Global Fuel Cell Consumption Market Research Report 2017is a professional and in-depth study on the current state of the Fuel Cell Consumption industry. In a word, This report studies Fuel Cell Consumption in Global market, especially in North America, Europe, China, Japan, Southeast Asia and India, focuses on top manufacturers in global market, with capacity, production, price, revenue and market share for each manufacturer. Key companies included in this research are Johnson Controls, Plug Power, Ballard Power, AFCC, Delphi, FuelCell Energy, HYGS, Johnson Matthey Fuel Cells, SFC Power and GS Yuasa. Market Segment by Region, this report splits Global into several key Region, with sales, revenue, market share and growth rate of Fuel Cell Consumption in these regions, from 2011 to 2022 (forecast), like North America, Europe, China, Japan, Southeast Asia and India. Firstly, Fuel Cell Consumption Market On the basis of product, this report displays the production, revenue, price, market share and growth rate of each type, primarily split into Phosphoric Acid Fuel Cell (PAFC), Proton Exchange Membrane Fuel Cell (PEMFC), Solid Oxide Fuel Cell (SOFC), Molten Carbonate Fuel Cell (MCFC) and Alkaline Fuel Cell (AFC). On the basis on the end users/applications, this report focuses on the status and outlook for major applications/end users, consumption (sales) , market share and growth rate of Fuel Cell Consumption for each application, including Power Generation, Cogeneration, Fuel Cell Electric Vehicles, Portable Power Systems and Other Applications. 7 Global Fuel Cell Consumption Manufacturers Profiles/Analysis 7.1 Johnson Controls 7.1.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.1.2 Fuel Cell Consumption Product Category, Application and Specification 7.1.2.1 Product A 7.1.2.2 Product B 7.1.3 Johnson Controls Fuel Cell Consumption Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.1.4 Main Business/Business Overview 7.2 Plug Power 7.2.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.2.2 Fuel Cell Consumption Product Category, Application and Specification 7.2.2.1 Product A 7.2.2.2 Product B 7.2.3 Plug Power Fuel Cell Consumption Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.2.4 Main Business/Business Overview 7.3 Ballard Power 7.3.1 Company Basic Information, Manufacturing Base, Sales Area and Its Competitors 7.3.2 Fuel Cell Consumption Product Category, Application and Specification 7.3.2.1 Product A 7.3.2.2 Product B 7.3.3 Ballard Power Fuel Cell Consumption Capacity, Production, Revenue, Price and Gross Margin (2012-2017) 7.3.4 Main Business/Business Overview Figure Picture of Fuel Cell Consumption Figure Global Fuel Cell Consumption Production (K Units) and CAGR (%) Comparison by Types (Product Category) (2012-2022) Figure Global Fuel Cell Consumption Production Market Share by Types (Product Category) in 2016 Figure Product Picture of Phosphoric Acid Fuel Cell (PAFC) Table Major Manufacturers of Phosphoric Acid Fuel Cell (PAFC) Figure Product Picture of Proton Exchange Membrane Fuel Cell (PEMFC) Table Major Manufacturers of Proton Exchange Membrane Fuel Cell (PEMFC) Figure Product Picture of Solid Oxide Fuel Cell (SOFC) Table Major Manufacturers of Solid Oxide Fuel Cell (SOFC) Figure Product Picture of Molten Carbonate Fuel Cell (MCFC) Table Major Manufacturers of Molten Carbonate Fuel Cell (MCFC) Figure Product Picture of Alkaline Fuel Cell (AFC) Table Major Manufacturers of Alkaline Fuel Cell (AFC) Figure Global Fuel Cell Consumption Consumption (K Units) by Applications (2012-2022) Figure Global Fuel Cell Consumption Consumption Market Share by Applications in 2016 Figure Power Generation Examples Figure Cogeneration Examples Figure Fuel Cell Electric Vehicles Examples Figure Portable Power Systems Examples Figure Other Applications Examples Figure Global Fuel Cell Consumption Market Size (Million USD) , Comparison (K Units) and CAGR (%) by Regions (2012-2022) Figure North America Fuel Cell Consumption Revenue (Million USD) and Growth Rate (2012-2022) Figure Europe Fuel Cell Consumption Revenue (Million USD) and Growth Rate (2012-2022) Figure China Fuel Cell Consumption Revenue (Million USD) and Growth Rate (2012-2022) Figure Japan Fuel Cell Consumption Revenue (Million USD) and Growth Rate (2012-2022) Figure Southeast Asia Fuel Cell Consumption Revenue (Million USD) and Growth Rate (2012-2022) Figure India Fuel Cell Consumption Revenue (Million USD) and Growth Rate (2012-2022) Figure Global Fuel Cell Consumption Revenue (Million USD) Status and Outlook (2012-2022) Figure Global Fuel Cell Consumption Capacity, Production (K Units) Status and Outlook (2012-2022) Figure Global Fuel Cell Consumption Major Players Product Capacity (K Units) (2012-2017) Table Global Fuel Cell Consumption Capacity (K Units) of Key Manufacturers (2012-2017) Table Global Fuel Cell Consumption Capacity Market Share of Key Manufacturers (2012-2017) Figure Global Fuel Cell Consumption Capacity (K Units) of Key Manufacturers in 2016 Figure Global Fuel Cell Consumption Capacity (K Units) of Key Manufacturers in 2017 Figure Global Fuel Cell Consumption Major Players Product Production (K Units) (2012-2017) Table Global Fuel Cell Consumption Production (K Units) of Key Manufacturers (2012-2017) Table Global Fuel Cell Consumption Production Share by Manufacturers (2012-2017) Figure 2016 Fuel Cell Consumption Production Share by Manufacturers Figure 2017 Fuel Cell Consumption Production Share by Manufacturers Figure Global Fuel Cell Consumption Major Players Product Revenue (Million USD) (2012-2017) Table Global Fuel Cell Consumption Revenue (Million USD) by Manufacturers (2012-2017) Table Global Fuel Cell Consumption Revenue Share by Manufacturers (2012-2017) Table 2016 Global Fuel Cell Consumption Revenue Share by Manufacturers Table 2017 Global Fuel Cell Consumption Revenue Share by Manufacturers Table Global Market Fuel Cell Consumption Average Price (USD/Unit) of Key Manufacturers (2012-2017) Figure Global Market Fuel Cell Consumption Average Price (USD/Unit) of Key Manufacturers in 2016 Table Manufacturers Fuel Cell Consumption Manufacturing Base Distribution and Sales Area For more information, please visit http://www.reportsweb.com/global-fuel-cell-consumption-market-research-report-2017


News Article | May 3, 2017
Site: globenewswire.com

RAPID CITY, S.D., May 03, 2017 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the first-quarter 2017. Net income available for common stock for the first quarter of 2017 was $77 million or $1.39 per diluted share, compared to net income available for common stock for the first quarter of 2016 of $40 million, or $0.77 per diluted share. Results for the first quarter of 2017 included $0.02 per diluted share related to acquisition costs. The same period in the prior year included $0.17 per diluted share for a noncash impairment of crude oil and natural gas properties and $0.29 per diluted share related to acquisition costs. Net income available for common stock, as adjusted, was $77 million, or $1.41 per diluted share compared to net income available for common stock, as adjusted, of $64 million, or $1.23 per diluted share, for the same period in 2016 (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided). “We delivered strong earnings growth and solid operational performance for the first quarter,” said David R. Emery, chairman and CEO of Black Hills Corp. “Earnings of $1.41 per share, as adjusted, increased 15 percent over the comparable prior-year period, driven primarily by a full quarter of earnings from the addition and successful integration of SourceGas. Earnings were tempered by warmer than normal weather across our service territories. “Results also benefited from solid earnings at our electric utilities driven by the late 2016 completion of two generation projects and robust industrial demand. Our power generation and mining segments delivered solid performance with power generation earnings moderated by the sale of a partial interest in our Colorado IPP power plant in 2016. Our oil and gas segment continued to reduce operating costs and sell non-core properties. Overall corporate results reflected increased interest expense related to SourceGas financing. “We continued to make progress on strategic growth projects at our utilities. We are on target to complete the 144-mile electric transmission line from northeast Wyoming to Rapid City, South Dakota, during the second quarter. At Colorado Electric, we received approval from the Colorado Public Utilities Commission for our resource plan to add 60 megawatts of renewable energy resources by 2019. We anticipate issuing a request for proposals related to these resource needs in the second quarter and expect to present the results to the commission by year-end for approval. “Having completed the integration of SourceGas, we are focused on driving more efficient and effective operational performance across the company. We are implementing best practices and standardization of processes across all our utilities. These continuous improvement efforts combined with prudent, growth-focused capital expenditures will create long-term value for customers and shareholders through improved service and reduced costs,” concluded Emery. (a) Net income (loss) available for common stock for the three months ended March 31, 2017 is net of net income attributable to noncontrolling interest of $3.5 million. (b) Net income (loss) available for common stock for the three months ended March 31, 2016 includes a noncash after-tax impairment of $8.8 million. (c) Net income (loss) available for common stock for the three months ended March 31, 2016 includes an after-tax benefit of approximately $5.8 million recognized from additional percentage depletion deductions that are being claimed with respect to our oil and gas properties involving prior tax years. (d) Net income (loss) available for common stock for the three months ended March 31, 2017 and March 31, 2016 included incremental, non-recurring acquisition and transition costs, after-tax of $0.9 million and $15 million, respectively; and after-tax internal labor costs attributable to the acquisition of $0.3 million and $3.8 million, respectively. (e) Net income (loss) available for common stock for the three months ended March 31, 2017 included a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior tax years and an adjustment to the projected annual effective tax rate.  Net income (loss) available for common stock for the three months ended March 31, 2016 includes tax benefits of approximately $4.4 million as a result of the re-measurement of the liability for uncertain tax positions predicated on an agreement reached with IRS Appeals in early 2016. Earnings per share, as adjusted is a non-GAAP financial measure. Earnings per share, as adjusted is defined as GAAP Earnings per share, adjusted for expenses and gains that the company believes do not reflect core operating performance.  Examples of these types of adjustments may include unique one-time non-budgeted events, impairment of assets, acquisition and disposition costs, and other adjustments noted in the earnings reconciliation table below. Black Hills reaffirms its guidance for 2017 earnings, as adjusted, of $3.45 to $3.65 per share (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided below), as most recently issued on Feb. 1, 2017. *  Additional adjustments will likely occur in the second, third, and fourth quarters. Adjustments shown reflect the actual adjustments made for the first three months of the year. Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, May 4, 2017, to discuss our financial and operating performance. To access the live webcast and download a copy of the investor presentation, go to the Black Hills website at www.blackhillscorp.com, and click on “Events and Presentations” in the “Investor Relations” section. The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. Those interested in asking a question during the live broadcast or those without Internet access can call 866-544-7741 if calling within the United States. International callers can call 724-498-4407. All callers need to enter the pass code 5189431 when prompted. For those unable to listen to the live broadcast, a replay will be available on the company’s website or by telephone through Thursday, May 25, 2017, at 855-859-2056 in the United States and at 404-537-3406 for international callers. The replay pass code is 5189431. Leadership from Black Hills will present at the 2017 American Gas Association Financial Forum at 9:00 a.m. EDT on Monday, May 22, 2017. A live webcast of the company’s presentation and accompanying slides will be available on Black Hills’ website at www.blackhillscorp.com under the “Investor Relations” section. A replay of the webcast will be made available at the same location following the conclusion of the webcast. USE OF NON-GAAP FINANCIAL MEASURE As noted in this news release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has provided non-GAAP earnings data reflecting adjustments for special items as specified in the GAAP to non-GAAP adjustment reconciliation table below. Net income (loss), as adjusted, is defined as Net income (loss), adjusted for expenses and gains that the company believes do not reflect the company’s core operating performance. The company believes that non-GAAP financial measures are useful to investors because the items excluded are not indicative of the company’s continuing operating results. The company’s management uses these non-GAAP financial measures as an indicator for planning and forecasting future periods. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. The presentation of these non-GAAP financial measures should not be construed as an inference that future results will not be affected by unusual, non-routine, or non-recurring items. Gross margin (revenue less cost of sales) is considered a non-GAAP financial measure due to the exclusion of depreciation from the measure. The presentation of gross margin is intended to supplement investors’ understanding of operating performance. Gross margin for our Electric Utilities is calculated as operating revenue less cost of fuel and purchased power. Gross margin for our Gas Utilities is calculated as operating revenues less cost of gas sold. Our gross margin is impacted by the fluctuations in power purchases and natural gas and other fuel supply costs. However, while these fluctuating costs impact gross margin as a percentage of revenue, they only impact total gross margin if the costs cannot be passed through to customers. Gross margin measure may not be comparable to other companies’ gross margin measure. Furthermore, this measure is not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. Our segment highlights for the three months ended March 31, 2017, compared to the three months ended March 31, 2016, are discussed below. The following segment information does not include certain intercompany eliminations. Minor differences in comparative amounts may result due to rounding. All amounts are presented on a pre-tax basis unless otherwise indicated. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased over the prior year reflecting a $2.3 million return on investment from the Peak View Wind Project, a $2.1 million increase in commercial and industrial margins driven by increased demand, and a $1.7 million increase in transmission revenues. Operations and maintenance increased primarily due to increased property taxes with higher asset base and increased employee related costs. Depreciation and amortization increased primarily due to a higher asset base driven partially by the addition of the Peak View Wind Project and the LM6000 generating plant. Interest expense, net increased primarily due to lower interest income from affiliate borrowings as compared to prior year. Other income (expense), net was comparable to the same period in prior year. Income tax benefit (expense): The effective tax rate was lower than the prior year due primarily to wind production tax credits. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased primarily due to margins of approximately $51 million contributed by the SourceGas utilities reflecting a full quarter of results in 2017. Operations and maintenance increased primarily due to additional operating costs of approximately $19 million for the acquired SourceGas utilities reflecting a full quarter of results in 2017. Depreciation and amortization increased primarily due to additional depreciation from the acquired SourceGas utilities. Interest expense, net increased primarily due to additional interest expense from the acquired SourceGas utilities. Other income (expense), net was comparable to the same period in the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) The generating facility located in Pueblo, Colorado, is accounted for as a capital lease under GAAP; therefore, depreciation expense for the original cost of the facility is recorded at the Electric Utility segment. On April 14, 2016, Black Hills Electric Generation sold a 49.9 percent, noncontrolling interest in Black Hills Colorado IPP for $216 million.  Black Hills Colorado IPP continues to be the majority owner and operator of the facility, which is contracted to provide capacity and energy through 2031 to Black Hills Colorado Electric.  Net income available for common stock for the three months ended March 31, 2017, was reduced by $3.5 million attributable to this noncontrolling interest. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year, reflecting a year over year increase in PPA prices. Operations and maintenance was comparable to the same period in the prior year. Depreciation and amortization was comparable to the same period in the prior year. Interest expense, net decreased due to higher interest income associated with the proceeds from the noncontrolling interest sale in April 2016. Income tax benefit (expense): Black Hills Colorado IPP went from a single member LLC, wholly owned by Black Hills Electric Generation, to a partnership as a result of the sale of 49.9 percent of its membership interest in April 2016.  The effective tax rate reflects the income attributable to the noncontrolling interest for which a tax provision is not recorded. Net income attributable to noncontrolling interest:  Net income attributable to noncontrolling interest increased by $3.5 million as a result of the noncontrolling interest sale in April 2016. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year reflecting a 5 percent increase in tons sold, partially offset by a 3 percent decrease in price per ton sold. The decrease in price per ton sold was driven by contract price adjustments based on actual mining costs.  During the current period, approximately 47 percent of the mine’s production was sold under contracts that include price adjustments based on actual mining costs, including income taxes. Operations and maintenance increased primarily due to a production tax valuation adjustment related to the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) Net of hedge settlement gains and losses. (b) An Oil and Gas properties' ceiling test impairment of $14 million was recorded for the three months ended March 31, 2016. (c) Prices are net of processing and transportation costs. First Quarter 2017 Compared with First Quarter 2016 Revenue decreased primarily due to a 21 percent production decrease as compared to the same period in the prior year. Natural gas production decreased primarily due to the sale of non-core properties in 2016 and limiting production to meet minimum daily quantity contractual gas processing commitments in the Piceance.  Crude oil production also decreased due to non-core property sales in the fourth quarter of 2016.  The average hedged price received for crude oil sold decreased 4 percent.  The lower production volumes and crude oil pricing was partially offset by a 33 percent increase in the average hedged price received for natural gas sold. Operations and maintenance decreased primarily due to lower employee costs and lower production and ad valorem taxes on lower revenue. Depreciation, depletion and amortization decreased primarily due to the reduction in our full cost pool resulting from the ceiling test impairments incurred in the prior year. Impairment of long-lived assets represents a prior year noncash write-down in the value of our natural gas and crude oil properties driven by low natural gas and crude oil prices. The ceiling test write-down of $14 million in the first quarter of 2016 used an average NYMEX natural gas price of $2.40 per Mcf, adjusted to $1.13 per Mcf at the wellhead, and $46.26 per barrel for crude oil, adjusted to $39.80 per barrel at the wellhead. Interest income (expense), net was comparable to the same period last year. Income tax (expense) benefit: Each period represents a tax benefit.  The effective tax rate for the first quarter of 2016 reflects a benefit of approximately $5.8 million from additional percentage depletion deductions being claimed with respect to a change in estimate for tax purposes.  Such deductions were primarily the result of a change in the application of the maximum daily limitation of 1,000 Bbls of oil equivalent allowed under the Internal Revenue Code. First Quarter 2017 Compared with First Quarter 2016 Net income for Corporate activity was $1.8 million for the three months ended March 31, 2017, compared to net loss of $16 million for the three months ended March 31, 2016. The variance from the prior year was primarily due to higher corporate expenses incurred in the prior year related to the SourceGas acquisition.  Current year corporate expenses include approximately $0.9 million of after-tax acquisition and transition costs compared to $15 million of after-tax acquisition and transition costs in the same period of the prior year.  Current year corporate expenses also include approximately $0.3 million of after-tax internal labor that otherwise would have been charged to other business segments compared to $3.8 million of after-tax internal labor that otherwise would have been charged to other business segments in the same period of the prior year.  During the three months ended March 31, 2017, we recognized a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior years and an adjustment to the projected annual effective tax rate. The same period in the prior year included a tax benefit of approximately $4.4 million recognized as a result of an agreement reached with IRS Appeals relating to the release of the reserve for after-tax interest expense previously accrued with respect to the liability for uncertain tax positions involving a like-kind exchange transaction from 2008. Black Hills Corp. (NYSE:BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.2 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. More information is available at www.blackhillscorp.com. This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2017 earnings guidance. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2016 Annual Report on Form 10-K, and other reports that we file with the SEC from time to time, and the following: New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station which sells energy and capacity under a 20-year PPA to Colorado Electric is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station, which sells energy and capacity under a 20-year PPA to Colorado Electric, is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (b) Net income attributable to noncontrolling interest for the three months ended March 31, 2016 was less than $0.1 million in our Gas Utilities segment.


News Article | May 3, 2017
Site: globenewswire.com

RAPID CITY, S.D., May 03, 2017 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the first-quarter 2017. Net income available for common stock for the first quarter of 2017 was $77 million or $1.39 per diluted share, compared to net income available for common stock for the first quarter of 2016 of $40 million, or $0.77 per diluted share. Results for the first quarter of 2017 included $0.02 per diluted share related to acquisition costs. The same period in the prior year included $0.17 per diluted share for a noncash impairment of crude oil and natural gas properties and $0.29 per diluted share related to acquisition costs. Net income available for common stock, as adjusted, was $77 million, or $1.41 per diluted share compared to net income available for common stock, as adjusted, of $64 million, or $1.23 per diluted share, for the same period in 2016 (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided). “We delivered strong earnings growth and solid operational performance for the first quarter,” said David R. Emery, chairman and CEO of Black Hills Corp. “Earnings of $1.41 per share, as adjusted, increased 15 percent over the comparable prior-year period, driven primarily by a full quarter of earnings from the addition and successful integration of SourceGas. Earnings were tempered by warmer than normal weather across our service territories. “Results also benefited from solid earnings at our electric utilities driven by the late 2016 completion of two generation projects and robust industrial demand. Our power generation and mining segments delivered solid performance with power generation earnings moderated by the sale of a partial interest in our Colorado IPP power plant in 2016. Our oil and gas segment continued to reduce operating costs and sell non-core properties. Overall corporate results reflected increased interest expense related to SourceGas financing. “We continued to make progress on strategic growth projects at our utilities. We are on target to complete the 144-mile electric transmission line from northeast Wyoming to Rapid City, South Dakota, during the second quarter. At Colorado Electric, we received approval from the Colorado Public Utilities Commission for our resource plan to add 60 megawatts of renewable energy resources by 2019. We anticipate issuing a request for proposals related to these resource needs in the second quarter and expect to present the results to the commission by year-end for approval. “Having completed the integration of SourceGas, we are focused on driving more efficient and effective operational performance across the company. We are implementing best practices and standardization of processes across all our utilities. These continuous improvement efforts combined with prudent, growth-focused capital expenditures will create long-term value for customers and shareholders through improved service and reduced costs,” concluded Emery. (a) Net income (loss) available for common stock for the three months ended March 31, 2017 is net of net income attributable to noncontrolling interest of $3.5 million. (b) Net income (loss) available for common stock for the three months ended March 31, 2016 includes a noncash after-tax impairment of $8.8 million. (c) Net income (loss) available for common stock for the three months ended March 31, 2016 includes an after-tax benefit of approximately $5.8 million recognized from additional percentage depletion deductions that are being claimed with respect to our oil and gas properties involving prior tax years. (d) Net income (loss) available for common stock for the three months ended March 31, 2017 and March 31, 2016 included incremental, non-recurring acquisition and transition costs, after-tax of $0.9 million and $15 million, respectively; and after-tax internal labor costs attributable to the acquisition of $0.3 million and $3.8 million, respectively. (e) Net income (loss) available for common stock for the three months ended March 31, 2017 included a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior tax years and an adjustment to the projected annual effective tax rate.  Net income (loss) available for common stock for the three months ended March 31, 2016 includes tax benefits of approximately $4.4 million as a result of the re-measurement of the liability for uncertain tax positions predicated on an agreement reached with IRS Appeals in early 2016. Earnings per share, as adjusted is a non-GAAP financial measure. Earnings per share, as adjusted is defined as GAAP Earnings per share, adjusted for expenses and gains that the company believes do not reflect core operating performance.  Examples of these types of adjustments may include unique one-time non-budgeted events, impairment of assets, acquisition and disposition costs, and other adjustments noted in the earnings reconciliation table below. Black Hills reaffirms its guidance for 2017 earnings, as adjusted, of $3.45 to $3.65 per share (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided below), as most recently issued on Feb. 1, 2017. *  Additional adjustments will likely occur in the second, third, and fourth quarters. Adjustments shown reflect the actual adjustments made for the first three months of the year. Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, May 4, 2017, to discuss our financial and operating performance. To access the live webcast and download a copy of the investor presentation, go to the Black Hills website at www.blackhillscorp.com, and click on “Events and Presentations” in the “Investor Relations” section. The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. Those interested in asking a question during the live broadcast or those without Internet access can call 866-544-7741 if calling within the United States. International callers can call 724-498-4407. All callers need to enter the pass code 5189431 when prompted. For those unable to listen to the live broadcast, a replay will be available on the company’s website or by telephone through Thursday, May 25, 2017, at 855-859-2056 in the United States and at 404-537-3406 for international callers. The replay pass code is 5189431. Leadership from Black Hills will present at the 2017 American Gas Association Financial Forum at 9:00 a.m. EDT on Monday, May 22, 2017. A live webcast of the company’s presentation and accompanying slides will be available on Black Hills’ website at www.blackhillscorp.com under the “Investor Relations” section. A replay of the webcast will be made available at the same location following the conclusion of the webcast. USE OF NON-GAAP FINANCIAL MEASURE As noted in this news release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has provided non-GAAP earnings data reflecting adjustments for special items as specified in the GAAP to non-GAAP adjustment reconciliation table below. Net income (loss), as adjusted, is defined as Net income (loss), adjusted for expenses and gains that the company believes do not reflect the company’s core operating performance. The company believes that non-GAAP financial measures are useful to investors because the items excluded are not indicative of the company’s continuing operating results. The company’s management uses these non-GAAP financial measures as an indicator for planning and forecasting future periods. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. The presentation of these non-GAAP financial measures should not be construed as an inference that future results will not be affected by unusual, non-routine, or non-recurring items. Gross margin (revenue less cost of sales) is considered a non-GAAP financial measure due to the exclusion of depreciation from the measure. The presentation of gross margin is intended to supplement investors’ understanding of operating performance. Gross margin for our Electric Utilities is calculated as operating revenue less cost of fuel and purchased power. Gross margin for our Gas Utilities is calculated as operating revenues less cost of gas sold. Our gross margin is impacted by the fluctuations in power purchases and natural gas and other fuel supply costs. However, while these fluctuating costs impact gross margin as a percentage of revenue, they only impact total gross margin if the costs cannot be passed through to customers. Gross margin measure may not be comparable to other companies’ gross margin measure. Furthermore, this measure is not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. Our segment highlights for the three months ended March 31, 2017, compared to the three months ended March 31, 2016, are discussed below. The following segment information does not include certain intercompany eliminations. Minor differences in comparative amounts may result due to rounding. All amounts are presented on a pre-tax basis unless otherwise indicated. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased over the prior year reflecting a $2.3 million return on investment from the Peak View Wind Project, a $2.1 million increase in commercial and industrial margins driven by increased demand, and a $1.7 million increase in transmission revenues. Operations and maintenance increased primarily due to increased property taxes with higher asset base and increased employee related costs. Depreciation and amortization increased primarily due to a higher asset base driven partially by the addition of the Peak View Wind Project and the LM6000 generating plant. Interest expense, net increased primarily due to lower interest income from affiliate borrowings as compared to prior year. Other income (expense), net was comparable to the same period in prior year. Income tax benefit (expense): The effective tax rate was lower than the prior year due primarily to wind production tax credits. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased primarily due to margins of approximately $51 million contributed by the SourceGas utilities reflecting a full quarter of results in 2017. Operations and maintenance increased primarily due to additional operating costs of approximately $19 million for the acquired SourceGas utilities reflecting a full quarter of results in 2017. Depreciation and amortization increased primarily due to additional depreciation from the acquired SourceGas utilities. Interest expense, net increased primarily due to additional interest expense from the acquired SourceGas utilities. Other income (expense), net was comparable to the same period in the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) The generating facility located in Pueblo, Colorado, is accounted for as a capital lease under GAAP; therefore, depreciation expense for the original cost of the facility is recorded at the Electric Utility segment. On April 14, 2016, Black Hills Electric Generation sold a 49.9 percent, noncontrolling interest in Black Hills Colorado IPP for $216 million.  Black Hills Colorado IPP continues to be the majority owner and operator of the facility, which is contracted to provide capacity and energy through 2031 to Black Hills Colorado Electric.  Net income available for common stock for the three months ended March 31, 2017, was reduced by $3.5 million attributable to this noncontrolling interest. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year, reflecting a year over year increase in PPA prices. Operations and maintenance was comparable to the same period in the prior year. Depreciation and amortization was comparable to the same period in the prior year. Interest expense, net decreased due to higher interest income associated with the proceeds from the noncontrolling interest sale in April 2016. Income tax benefit (expense): Black Hills Colorado IPP went from a single member LLC, wholly owned by Black Hills Electric Generation, to a partnership as a result of the sale of 49.9 percent of its membership interest in April 2016.  The effective tax rate reflects the income attributable to the noncontrolling interest for which a tax provision is not recorded. Net income attributable to noncontrolling interest:  Net income attributable to noncontrolling interest increased by $3.5 million as a result of the noncontrolling interest sale in April 2016. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year reflecting a 5 percent increase in tons sold, partially offset by a 3 percent decrease in price per ton sold. The decrease in price per ton sold was driven by contract price adjustments based on actual mining costs.  During the current period, approximately 47 percent of the mine’s production was sold under contracts that include price adjustments based on actual mining costs, including income taxes. Operations and maintenance increased primarily due to a production tax valuation adjustment related to the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) Net of hedge settlement gains and losses. (b) An Oil and Gas properties' ceiling test impairment of $14 million was recorded for the three months ended March 31, 2016. (c) Prices are net of processing and transportation costs. First Quarter 2017 Compared with First Quarter 2016 Revenue decreased primarily due to a 21 percent production decrease as compared to the same period in the prior year. Natural gas production decreased primarily due to the sale of non-core properties in 2016 and limiting production to meet minimum daily quantity contractual gas processing commitments in the Piceance.  Crude oil production also decreased due to non-core property sales in the fourth quarter of 2016.  The average hedged price received for crude oil sold decreased 4 percent.  The lower production volumes and crude oil pricing was partially offset by a 33 percent increase in the average hedged price received for natural gas sold. Operations and maintenance decreased primarily due to lower employee costs and lower production and ad valorem taxes on lower revenue. Depreciation, depletion and amortization decreased primarily due to the reduction in our full cost pool resulting from the ceiling test impairments incurred in the prior year. Impairment of long-lived assets represents a prior year noncash write-down in the value of our natural gas and crude oil properties driven by low natural gas and crude oil prices. The ceiling test write-down of $14 million in the first quarter of 2016 used an average NYMEX natural gas price of $2.40 per Mcf, adjusted to $1.13 per Mcf at the wellhead, and $46.26 per barrel for crude oil, adjusted to $39.80 per barrel at the wellhead. Interest income (expense), net was comparable to the same period last year. Income tax (expense) benefit: Each period represents a tax benefit.  The effective tax rate for the first quarter of 2016 reflects a benefit of approximately $5.8 million from additional percentage depletion deductions being claimed with respect to a change in estimate for tax purposes.  Such deductions were primarily the result of a change in the application of the maximum daily limitation of 1,000 Bbls of oil equivalent allowed under the Internal Revenue Code. First Quarter 2017 Compared with First Quarter 2016 Net income for Corporate activity was $1.8 million for the three months ended March 31, 2017, compared to net loss of $16 million for the three months ended March 31, 2016. The variance from the prior year was primarily due to higher corporate expenses incurred in the prior year related to the SourceGas acquisition.  Current year corporate expenses include approximately $0.9 million of after-tax acquisition and transition costs compared to $15 million of after-tax acquisition and transition costs in the same period of the prior year.  Current year corporate expenses also include approximately $0.3 million of after-tax internal labor that otherwise would have been charged to other business segments compared to $3.8 million of after-tax internal labor that otherwise would have been charged to other business segments in the same period of the prior year.  During the three months ended March 31, 2017, we recognized a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior years and an adjustment to the projected annual effective tax rate. The same period in the prior year included a tax benefit of approximately $4.4 million recognized as a result of an agreement reached with IRS Appeals relating to the release of the reserve for after-tax interest expense previously accrued with respect to the liability for uncertain tax positions involving a like-kind exchange transaction from 2008. Black Hills Corp. (NYSE:BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.2 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. More information is available at www.blackhillscorp.com. This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2017 earnings guidance. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2016 Annual Report on Form 10-K, and other reports that we file with the SEC from time to time, and the following: New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station which sells energy and capacity under a 20-year PPA to Colorado Electric is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station, which sells energy and capacity under a 20-year PPA to Colorado Electric, is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (b) Net income attributable to noncontrolling interest for the three months ended March 31, 2016 was less than $0.1 million in our Gas Utilities segment.


News Article | May 3, 2017
Site: globenewswire.com

RAPID CITY, S.D., May 03, 2017 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the first-quarter 2017. Net income available for common stock for the first quarter of 2017 was $77 million or $1.39 per diluted share, compared to net income available for common stock for the first quarter of 2016 of $40 million, or $0.77 per diluted share. Results for the first quarter of 2017 included $0.02 per diluted share related to acquisition costs. The same period in the prior year included $0.17 per diluted share for a noncash impairment of crude oil and natural gas properties and $0.29 per diluted share related to acquisition costs. Net income available for common stock, as adjusted, was $77 million, or $1.41 per diluted share compared to net income available for common stock, as adjusted, of $64 million, or $1.23 per diluted share, for the same period in 2016 (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided). “We delivered strong earnings growth and solid operational performance for the first quarter,” said David R. Emery, chairman and CEO of Black Hills Corp. “Earnings of $1.41 per share, as adjusted, increased 15 percent over the comparable prior-year period, driven primarily by a full quarter of earnings from the addition and successful integration of SourceGas. Earnings were tempered by warmer than normal weather across our service territories. “Results also benefited from solid earnings at our electric utilities driven by the late 2016 completion of two generation projects and robust industrial demand. Our power generation and mining segments delivered solid performance with power generation earnings moderated by the sale of a partial interest in our Colorado IPP power plant in 2016. Our oil and gas segment continued to reduce operating costs and sell non-core properties. Overall corporate results reflected increased interest expense related to SourceGas financing. “We continued to make progress on strategic growth projects at our utilities. We are on target to complete the 144-mile electric transmission line from northeast Wyoming to Rapid City, South Dakota, during the second quarter. At Colorado Electric, we received approval from the Colorado Public Utilities Commission for our resource plan to add 60 megawatts of renewable energy resources by 2019. We anticipate issuing a request for proposals related to these resource needs in the second quarter and expect to present the results to the commission by year-end for approval. “Having completed the integration of SourceGas, we are focused on driving more efficient and effective operational performance across the company. We are implementing best practices and standardization of processes across all our utilities. These continuous improvement efforts combined with prudent, growth-focused capital expenditures will create long-term value for customers and shareholders through improved service and reduced costs,” concluded Emery. (a) Net income (loss) available for common stock for the three months ended March 31, 2017 is net of net income attributable to noncontrolling interest of $3.5 million. (b) Net income (loss) available for common stock for the three months ended March 31, 2016 includes a noncash after-tax impairment of $8.8 million. (c) Net income (loss) available for common stock for the three months ended March 31, 2016 includes an after-tax benefit of approximately $5.8 million recognized from additional percentage depletion deductions that are being claimed with respect to our oil and gas properties involving prior tax years. (d) Net income (loss) available for common stock for the three months ended March 31, 2017 and March 31, 2016 included incremental, non-recurring acquisition and transition costs, after-tax of $0.9 million and $15 million, respectively; and after-tax internal labor costs attributable to the acquisition of $0.3 million and $3.8 million, respectively. (e) Net income (loss) available for common stock for the three months ended March 31, 2017 included a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior tax years and an adjustment to the projected annual effective tax rate.  Net income (loss) available for common stock for the three months ended March 31, 2016 includes tax benefits of approximately $4.4 million as a result of the re-measurement of the liability for uncertain tax positions predicated on an agreement reached with IRS Appeals in early 2016. Earnings per share, as adjusted is a non-GAAP financial measure. Earnings per share, as adjusted is defined as GAAP Earnings per share, adjusted for expenses and gains that the company believes do not reflect core operating performance.  Examples of these types of adjustments may include unique one-time non-budgeted events, impairment of assets, acquisition and disposition costs, and other adjustments noted in the earnings reconciliation table below. Black Hills reaffirms its guidance for 2017 earnings, as adjusted, of $3.45 to $3.65 per share (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided below), as most recently issued on Feb. 1, 2017. *  Additional adjustments will likely occur in the second, third, and fourth quarters. Adjustments shown reflect the actual adjustments made for the first three months of the year. Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, May 4, 2017, to discuss our financial and operating performance. To access the live webcast and download a copy of the investor presentation, go to the Black Hills website at www.blackhillscorp.com, and click on “Events and Presentations” in the “Investor Relations” section. The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. Those interested in asking a question during the live broadcast or those without Internet access can call 866-544-7741 if calling within the United States. International callers can call 724-498-4407. All callers need to enter the pass code 5189431 when prompted. For those unable to listen to the live broadcast, a replay will be available on the company’s website or by telephone through Thursday, May 25, 2017, at 855-859-2056 in the United States and at 404-537-3406 for international callers. The replay pass code is 5189431. Leadership from Black Hills will present at the 2017 American Gas Association Financial Forum at 9:00 a.m. EDT on Monday, May 22, 2017. A live webcast of the company’s presentation and accompanying slides will be available on Black Hills’ website at www.blackhillscorp.com under the “Investor Relations” section. A replay of the webcast will be made available at the same location following the conclusion of the webcast. USE OF NON-GAAP FINANCIAL MEASURE As noted in this news release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has provided non-GAAP earnings data reflecting adjustments for special items as specified in the GAAP to non-GAAP adjustment reconciliation table below. Net income (loss), as adjusted, is defined as Net income (loss), adjusted for expenses and gains that the company believes do not reflect the company’s core operating performance. The company believes that non-GAAP financial measures are useful to investors because the items excluded are not indicative of the company’s continuing operating results. The company’s management uses these non-GAAP financial measures as an indicator for planning and forecasting future periods. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. The presentation of these non-GAAP financial measures should not be construed as an inference that future results will not be affected by unusual, non-routine, or non-recurring items. Gross margin (revenue less cost of sales) is considered a non-GAAP financial measure due to the exclusion of depreciation from the measure. The presentation of gross margin is intended to supplement investors’ understanding of operating performance. Gross margin for our Electric Utilities is calculated as operating revenue less cost of fuel and purchased power. Gross margin for our Gas Utilities is calculated as operating revenues less cost of gas sold. Our gross margin is impacted by the fluctuations in power purchases and natural gas and other fuel supply costs. However, while these fluctuating costs impact gross margin as a percentage of revenue, they only impact total gross margin if the costs cannot be passed through to customers. Gross margin measure may not be comparable to other companies’ gross margin measure. Furthermore, this measure is not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. Our segment highlights for the three months ended March 31, 2017, compared to the three months ended March 31, 2016, are discussed below. The following segment information does not include certain intercompany eliminations. Minor differences in comparative amounts may result due to rounding. All amounts are presented on a pre-tax basis unless otherwise indicated. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased over the prior year reflecting a $2.3 million return on investment from the Peak View Wind Project, a $2.1 million increase in commercial and industrial margins driven by increased demand, and a $1.7 million increase in transmission revenues. Operations and maintenance increased primarily due to increased property taxes with higher asset base and increased employee related costs. Depreciation and amortization increased primarily due to a higher asset base driven partially by the addition of the Peak View Wind Project and the LM6000 generating plant. Interest expense, net increased primarily due to lower interest income from affiliate borrowings as compared to prior year. Other income (expense), net was comparable to the same period in prior year. Income tax benefit (expense): The effective tax rate was lower than the prior year due primarily to wind production tax credits. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased primarily due to margins of approximately $51 million contributed by the SourceGas utilities reflecting a full quarter of results in 2017. Operations and maintenance increased primarily due to additional operating costs of approximately $19 million for the acquired SourceGas utilities reflecting a full quarter of results in 2017. Depreciation and amortization increased primarily due to additional depreciation from the acquired SourceGas utilities. Interest expense, net increased primarily due to additional interest expense from the acquired SourceGas utilities. Other income (expense), net was comparable to the same period in the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) The generating facility located in Pueblo, Colorado, is accounted for as a capital lease under GAAP; therefore, depreciation expense for the original cost of the facility is recorded at the Electric Utility segment. On April 14, 2016, Black Hills Electric Generation sold a 49.9 percent, noncontrolling interest in Black Hills Colorado IPP for $216 million.  Black Hills Colorado IPP continues to be the majority owner and operator of the facility, which is contracted to provide capacity and energy through 2031 to Black Hills Colorado Electric.  Net income available for common stock for the three months ended March 31, 2017, was reduced by $3.5 million attributable to this noncontrolling interest. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year, reflecting a year over year increase in PPA prices. Operations and maintenance was comparable to the same period in the prior year. Depreciation and amortization was comparable to the same period in the prior year. Interest expense, net decreased due to higher interest income associated with the proceeds from the noncontrolling interest sale in April 2016. Income tax benefit (expense): Black Hills Colorado IPP went from a single member LLC, wholly owned by Black Hills Electric Generation, to a partnership as a result of the sale of 49.9 percent of its membership interest in April 2016.  The effective tax rate reflects the income attributable to the noncontrolling interest for which a tax provision is not recorded. Net income attributable to noncontrolling interest:  Net income attributable to noncontrolling interest increased by $3.5 million as a result of the noncontrolling interest sale in April 2016. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year reflecting a 5 percent increase in tons sold, partially offset by a 3 percent decrease in price per ton sold. The decrease in price per ton sold was driven by contract price adjustments based on actual mining costs.  During the current period, approximately 47 percent of the mine’s production was sold under contracts that include price adjustments based on actual mining costs, including income taxes. Operations and maintenance increased primarily due to a production tax valuation adjustment related to the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) Net of hedge settlement gains and losses. (b) An Oil and Gas properties' ceiling test impairment of $14 million was recorded for the three months ended March 31, 2016. (c) Prices are net of processing and transportation costs. First Quarter 2017 Compared with First Quarter 2016 Revenue decreased primarily due to a 21 percent production decrease as compared to the same period in the prior year. Natural gas production decreased primarily due to the sale of non-core properties in 2016 and limiting production to meet minimum daily quantity contractual gas processing commitments in the Piceance.  Crude oil production also decreased due to non-core property sales in the fourth quarter of 2016.  The average hedged price received for crude oil sold decreased 4 percent.  The lower production volumes and crude oil pricing was partially offset by a 33 percent increase in the average hedged price received for natural gas sold. Operations and maintenance decreased primarily due to lower employee costs and lower production and ad valorem taxes on lower revenue. Depreciation, depletion and amortization decreased primarily due to the reduction in our full cost pool resulting from the ceiling test impairments incurred in the prior year. Impairment of long-lived assets represents a prior year noncash write-down in the value of our natural gas and crude oil properties driven by low natural gas and crude oil prices. The ceiling test write-down of $14 million in the first quarter of 2016 used an average NYMEX natural gas price of $2.40 per Mcf, adjusted to $1.13 per Mcf at the wellhead, and $46.26 per barrel for crude oil, adjusted to $39.80 per barrel at the wellhead. Interest income (expense), net was comparable to the same period last year. Income tax (expense) benefit: Each period represents a tax benefit.  The effective tax rate for the first quarter of 2016 reflects a benefit of approximately $5.8 million from additional percentage depletion deductions being claimed with respect to a change in estimate for tax purposes.  Such deductions were primarily the result of a change in the application of the maximum daily limitation of 1,000 Bbls of oil equivalent allowed under the Internal Revenue Code. First Quarter 2017 Compared with First Quarter 2016 Net income for Corporate activity was $1.8 million for the three months ended March 31, 2017, compared to net loss of $16 million for the three months ended March 31, 2016. The variance from the prior year was primarily due to higher corporate expenses incurred in the prior year related to the SourceGas acquisition.  Current year corporate expenses include approximately $0.9 million of after-tax acquisition and transition costs compared to $15 million of after-tax acquisition and transition costs in the same period of the prior year.  Current year corporate expenses also include approximately $0.3 million of after-tax internal labor that otherwise would have been charged to other business segments compared to $3.8 million of after-tax internal labor that otherwise would have been charged to other business segments in the same period of the prior year.  During the three months ended March 31, 2017, we recognized a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior years and an adjustment to the projected annual effective tax rate. The same period in the prior year included a tax benefit of approximately $4.4 million recognized as a result of an agreement reached with IRS Appeals relating to the release of the reserve for after-tax interest expense previously accrued with respect to the liability for uncertain tax positions involving a like-kind exchange transaction from 2008. Black Hills Corp. (NYSE:BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.2 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. More information is available at www.blackhillscorp.com. This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2017 earnings guidance. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2016 Annual Report on Form 10-K, and other reports that we file with the SEC from time to time, and the following: New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station which sells energy and capacity under a 20-year PPA to Colorado Electric is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station, which sells energy and capacity under a 20-year PPA to Colorado Electric, is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (b) Net income attributable to noncontrolling interest for the three months ended March 31, 2016 was less than $0.1 million in our Gas Utilities segment.


News Article | May 3, 2017
Site: globenewswire.com

RAPID CITY, S.D., May 03, 2017 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE:BKH) today announced financial results for the first-quarter 2017. Net income available for common stock for the first quarter of 2017 was $77 million or $1.39 per diluted share, compared to net income available for common stock for the first quarter of 2016 of $40 million, or $0.77 per diluted share. Results for the first quarter of 2017 included $0.02 per diluted share related to acquisition costs. The same period in the prior year included $0.17 per diluted share for a noncash impairment of crude oil and natural gas properties and $0.29 per diluted share related to acquisition costs. Net income available for common stock, as adjusted, was $77 million, or $1.41 per diluted share compared to net income available for common stock, as adjusted, of $64 million, or $1.23 per diluted share, for the same period in 2016 (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided). “We delivered strong earnings growth and solid operational performance for the first quarter,” said David R. Emery, chairman and CEO of Black Hills Corp. “Earnings of $1.41 per share, as adjusted, increased 15 percent over the comparable prior-year period, driven primarily by a full quarter of earnings from the addition and successful integration of SourceGas. Earnings were tempered by warmer than normal weather across our service territories. “Results also benefited from solid earnings at our electric utilities driven by the late 2016 completion of two generation projects and robust industrial demand. Our power generation and mining segments delivered solid performance with power generation earnings moderated by the sale of a partial interest in our Colorado IPP power plant in 2016. Our oil and gas segment continued to reduce operating costs and sell non-core properties. Overall corporate results reflected increased interest expense related to SourceGas financing. “We continued to make progress on strategic growth projects at our utilities. We are on target to complete the 144-mile electric transmission line from northeast Wyoming to Rapid City, South Dakota, during the second quarter. At Colorado Electric, we received approval from the Colorado Public Utilities Commission for our resource plan to add 60 megawatts of renewable energy resources by 2019. We anticipate issuing a request for proposals related to these resource needs in the second quarter and expect to present the results to the commission by year-end for approval. “Having completed the integration of SourceGas, we are focused on driving more efficient and effective operational performance across the company. We are implementing best practices and standardization of processes across all our utilities. These continuous improvement efforts combined with prudent, growth-focused capital expenditures will create long-term value for customers and shareholders through improved service and reduced costs,” concluded Emery. (a) Net income (loss) available for common stock for the three months ended March 31, 2017 is net of net income attributable to noncontrolling interest of $3.5 million. (b) Net income (loss) available for common stock for the three months ended March 31, 2016 includes a noncash after-tax impairment of $8.8 million. (c) Net income (loss) available for common stock for the three months ended March 31, 2016 includes an after-tax benefit of approximately $5.8 million recognized from additional percentage depletion deductions that are being claimed with respect to our oil and gas properties involving prior tax years. (d) Net income (loss) available for common stock for the three months ended March 31, 2017 and March 31, 2016 included incremental, non-recurring acquisition and transition costs, after-tax of $0.9 million and $15 million, respectively; and after-tax internal labor costs attributable to the acquisition of $0.3 million and $3.8 million, respectively. (e) Net income (loss) available for common stock for the three months ended March 31, 2017 included a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior tax years and an adjustment to the projected annual effective tax rate.  Net income (loss) available for common stock for the three months ended March 31, 2016 includes tax benefits of approximately $4.4 million as a result of the re-measurement of the liability for uncertain tax positions predicated on an agreement reached with IRS Appeals in early 2016. Earnings per share, as adjusted is a non-GAAP financial measure. Earnings per share, as adjusted is defined as GAAP Earnings per share, adjusted for expenses and gains that the company believes do not reflect core operating performance.  Examples of these types of adjustments may include unique one-time non-budgeted events, impairment of assets, acquisition and disposition costs, and other adjustments noted in the earnings reconciliation table below. Black Hills reaffirms its guidance for 2017 earnings, as adjusted, of $3.45 to $3.65 per share (this is a non-GAAP measure and an accompanying schedule for the GAAP to non-GAAP adjustment reconciliation is provided below), as most recently issued on Feb. 1, 2017. *  Additional adjustments will likely occur in the second, third, and fourth quarters. Adjustments shown reflect the actual adjustments made for the first three months of the year. Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, May 4, 2017, to discuss our financial and operating performance. To access the live webcast and download a copy of the investor presentation, go to the Black Hills website at www.blackhillscorp.com, and click on “Events and Presentations” in the “Investor Relations” section. The presentation will be posted on the website before the webcast. Listeners should allow at least five minutes for registering and accessing the presentation. Those interested in asking a question during the live broadcast or those without Internet access can call 866-544-7741 if calling within the United States. International callers can call 724-498-4407. All callers need to enter the pass code 5189431 when prompted. For those unable to listen to the live broadcast, a replay will be available on the company’s website or by telephone through Thursday, May 25, 2017, at 855-859-2056 in the United States and at 404-537-3406 for international callers. The replay pass code is 5189431. Leadership from Black Hills will present at the 2017 American Gas Association Financial Forum at 9:00 a.m. EDT on Monday, May 22, 2017. A live webcast of the company’s presentation and accompanying slides will be available on Black Hills’ website at www.blackhillscorp.com under the “Investor Relations” section. A replay of the webcast will be made available at the same location following the conclusion of the webcast. USE OF NON-GAAP FINANCIAL MEASURE As noted in this news release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has provided non-GAAP earnings data reflecting adjustments for special items as specified in the GAAP to non-GAAP adjustment reconciliation table below. Net income (loss), as adjusted, is defined as Net income (loss), adjusted for expenses and gains that the company believes do not reflect the company’s core operating performance. The company believes that non-GAAP financial measures are useful to investors because the items excluded are not indicative of the company’s continuing operating results. The company’s management uses these non-GAAP financial measures as an indicator for planning and forecasting future periods. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. The presentation of these non-GAAP financial measures should not be construed as an inference that future results will not be affected by unusual, non-routine, or non-recurring items. Gross margin (revenue less cost of sales) is considered a non-GAAP financial measure due to the exclusion of depreciation from the measure. The presentation of gross margin is intended to supplement investors’ understanding of operating performance. Gross margin for our Electric Utilities is calculated as operating revenue less cost of fuel and purchased power. Gross margin for our Gas Utilities is calculated as operating revenues less cost of gas sold. Our gross margin is impacted by the fluctuations in power purchases and natural gas and other fuel supply costs. However, while these fluctuating costs impact gross margin as a percentage of revenue, they only impact total gross margin if the costs cannot be passed through to customers. Gross margin measure may not be comparable to other companies’ gross margin measure. Furthermore, this measure is not intended to replace operating income as determined in accordance with GAAP as an indicator of operating performance. Our segment highlights for the three months ended March 31, 2017, compared to the three months ended March 31, 2016, are discussed below. The following segment information does not include certain intercompany eliminations. Minor differences in comparative amounts may result due to rounding. All amounts are presented on a pre-tax basis unless otherwise indicated. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased over the prior year reflecting a $2.3 million return on investment from the Peak View Wind Project, a $2.1 million increase in commercial and industrial margins driven by increased demand, and a $1.7 million increase in transmission revenues. Operations and maintenance increased primarily due to increased property taxes with higher asset base and increased employee related costs. Depreciation and amortization increased primarily due to a higher asset base driven partially by the addition of the Peak View Wind Project and the LM6000 generating plant. Interest expense, net increased primarily due to lower interest income from affiliate borrowings as compared to prior year. Other income (expense), net was comparable to the same period in prior year. Income tax benefit (expense): The effective tax rate was lower than the prior year due primarily to wind production tax credits. First Quarter 2017 Compared with First Quarter 2016 Gross margin increased primarily due to margins of approximately $51 million contributed by the SourceGas utilities reflecting a full quarter of results in 2017. Operations and maintenance increased primarily due to additional operating costs of approximately $19 million for the acquired SourceGas utilities reflecting a full quarter of results in 2017. Depreciation and amortization increased primarily due to additional depreciation from the acquired SourceGas utilities. Interest expense, net increased primarily due to additional interest expense from the acquired SourceGas utilities. Other income (expense), net was comparable to the same period in the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) The generating facility located in Pueblo, Colorado, is accounted for as a capital lease under GAAP; therefore, depreciation expense for the original cost of the facility is recorded at the Electric Utility segment. On April 14, 2016, Black Hills Electric Generation sold a 49.9 percent, noncontrolling interest in Black Hills Colorado IPP for $216 million.  Black Hills Colorado IPP continues to be the majority owner and operator of the facility, which is contracted to provide capacity and energy through 2031 to Black Hills Colorado Electric.  Net income available for common stock for the three months ended March 31, 2017, was reduced by $3.5 million attributable to this noncontrolling interest. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year, reflecting a year over year increase in PPA prices. Operations and maintenance was comparable to the same period in the prior year. Depreciation and amortization was comparable to the same period in the prior year. Interest expense, net decreased due to higher interest income associated with the proceeds from the noncontrolling interest sale in April 2016. Income tax benefit (expense): Black Hills Colorado IPP went from a single member LLC, wholly owned by Black Hills Electric Generation, to a partnership as a result of the sale of 49.9 percent of its membership interest in April 2016.  The effective tax rate reflects the income attributable to the noncontrolling interest for which a tax provision is not recorded. Net income attributable to noncontrolling interest:  Net income attributable to noncontrolling interest increased by $3.5 million as a result of the noncontrolling interest sale in April 2016. First Quarter 2017 Compared with First Quarter 2016 Revenue was comparable to the same period in the prior year reflecting a 5 percent increase in tons sold, partially offset by a 3 percent decrease in price per ton sold. The decrease in price per ton sold was driven by contract price adjustments based on actual mining costs.  During the current period, approximately 47 percent of the mine’s production was sold under contracts that include price adjustments based on actual mining costs, including income taxes. Operations and maintenance increased primarily due to a production tax valuation adjustment related to the prior year. Income tax benefit (expense): The effective tax rate was comparable to the same period in the prior year. (a) Net of hedge settlement gains and losses. (b) An Oil and Gas properties' ceiling test impairment of $14 million was recorded for the three months ended March 31, 2016. (c) Prices are net of processing and transportation costs. First Quarter 2017 Compared with First Quarter 2016 Revenue decreased primarily due to a 21 percent production decrease as compared to the same period in the prior year. Natural gas production decreased primarily due to the sale of non-core properties in 2016 and limiting production to meet minimum daily quantity contractual gas processing commitments in the Piceance.  Crude oil production also decreased due to non-core property sales in the fourth quarter of 2016.  The average hedged price received for crude oil sold decreased 4 percent.  The lower production volumes and crude oil pricing was partially offset by a 33 percent increase in the average hedged price received for natural gas sold. Operations and maintenance decreased primarily due to lower employee costs and lower production and ad valorem taxes on lower revenue. Depreciation, depletion and amortization decreased primarily due to the reduction in our full cost pool resulting from the ceiling test impairments incurred in the prior year. Impairment of long-lived assets represents a prior year noncash write-down in the value of our natural gas and crude oil properties driven by low natural gas and crude oil prices. The ceiling test write-down of $14 million in the first quarter of 2016 used an average NYMEX natural gas price of $2.40 per Mcf, adjusted to $1.13 per Mcf at the wellhead, and $46.26 per barrel for crude oil, adjusted to $39.80 per barrel at the wellhead. Interest income (expense), net was comparable to the same period last year. Income tax (expense) benefit: Each period represents a tax benefit.  The effective tax rate for the first quarter of 2016 reflects a benefit of approximately $5.8 million from additional percentage depletion deductions being claimed with respect to a change in estimate for tax purposes.  Such deductions were primarily the result of a change in the application of the maximum daily limitation of 1,000 Bbls of oil equivalent allowed under the Internal Revenue Code. First Quarter 2017 Compared with First Quarter 2016 Net income for Corporate activity was $1.8 million for the three months ended March 31, 2017, compared to net loss of $16 million for the three months ended March 31, 2016. The variance from the prior year was primarily due to higher corporate expenses incurred in the prior year related to the SourceGas acquisition.  Current year corporate expenses include approximately $0.9 million of after-tax acquisition and transition costs compared to $15 million of after-tax acquisition and transition costs in the same period of the prior year.  Current year corporate expenses also include approximately $0.3 million of after-tax internal labor that otherwise would have been charged to other business segments compared to $3.8 million of after-tax internal labor that otherwise would have been charged to other business segments in the same period of the prior year.  During the three months ended March 31, 2017, we recognized a net tax benefit of approximately $3.2 million comprised primarily of tax benefits from a carryback claim for specified liability losses involving prior years and an adjustment to the projected annual effective tax rate. The same period in the prior year included a tax benefit of approximately $4.4 million recognized as a result of an agreement reached with IRS Appeals relating to the release of the reserve for after-tax interest expense previously accrued with respect to the liability for uncertain tax positions involving a like-kind exchange transaction from 2008. Black Hills Corp. (NYSE:BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.2 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. More information is available at www.blackhillscorp.com. This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2017 earnings guidance. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitation, the risk factors described in Item 1A of Part I of our 2016 Annual Report on Form 10-K, and other reports that we file with the SEC from time to time, and the following: New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station which sells energy and capacity under a 20-year PPA to Colorado Electric is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (a) The generating facility owned by Black Hills Colorado IPP at our Pueblo Airport Generating Station, which sells energy and capacity under a 20-year PPA to Colorado Electric, is accounted for as a capital lease. Therefore, revenue and expense of the Electric Utilities and Power Generation segments reflect adjustments for lease accounting which are eliminated in consolidation. (b) Net income attributable to noncontrolling interest for the three months ended March 31, 2016 was less than $0.1 million in our Gas Utilities segment.


ITALEAF: the Board of directors of TerniEnergia approved the interim report as at 31 March 2017 The Board of Directors of TerniEnergia, smart energy company active in the fields of renewable energy, energy efficiency, waste and energy management, listed on the Star segment of the Italian Stock Exchange and part of Italeaf Group, approved today the interim financial report as at March 31, 2017. Stefano Neri, Chairman and CEO of TerniEnergia commented as follows: "The data for the first quarter of 2017 give us a change of scenario. There are encouraging signs of trend reversal in business performance over the previous months, considering also that the value of the new photovoltaic worksites in Africa has not yet been reflected in revenues. We also think that conditions will soon be available to strengthen this trend even in the most technologically advanced business sectors, such as energy efficiency and smart grids. Finally, we express great satisfaction for the unanimous pronouncement of the Shareholders' Meeting regarding the confirmation of the appointment of new directors Piero Manzoni and Giulio Gallazzi. They are two managerial figures of international relevance and proven experience, which will help accelerate the implementation of the targets of TerniEnergia's strategic plan, Mr Manzoni also with operational responsibilities". Revenues amounted to Euro 29.9 million, showing the starting of the project phase of the PV EPC worksite in Tunisia, the recovery of energy and gas trading, the presence in the consolidation scope of Softeco Sismat and Selesoft Consulting, acquired since October 31, 2016. The comparison with the first quarter of 2016 (Euro 31.3 million; -4.59%), is a conditioned by an overall decrease of EPC activity following the completion occurred in the second half 2016 of the two giant worksites in South Africa. EBITDA amounted to Euro 3.4 million, showing a decrease (-15.73%) compared to March 31, 2016 (Euro 4 million), with Ebitda Margin, equal to 11.39%. Net operating income (EBIT) amounted to Euro 1.4 million (Euro 2.8 million as at March 31, 2016, -50.71%), after depreciation, amortization and write-downs of Euro 2 million (Euro 1.2 million at the same period of 2016). Net profit, which includes the share of results from the activity of photovoltaic JV, amounted to Euro 0.2 million. Net income as at March 31, 2016 was Euro 0.6 million (-60.06%). The net financial position amount to Euro 91.2 million (Euro 93.9 million at 12/31/2016). The non-current NFP is Euro 77.7 million, while the net financial position in short term amounted to Euro 13.5 million. The NFP/Net equity ratio equal to 1.52x, improves significantly (1.63x as at 31/12/2016). The Net Equity amounted to Euro 59.7 million, with an increase of 3.85% (Euro 57.5 million at 12/31/2016. Net equity takes into account the treasury shares held in portfolio, which amounted to No. 1,012,224. The design phase for the 10MW photovoltaic plant for STEG in Tunisia started. The total number of photovoltaic plants built by TerniEnergia from the beginning of its activity is equal to 274, with an aggregate capacity of 425,27 MWp (13.2 MWp in full ownership and 30 MWp in joint venture for the Power Generation activity). Moreover, are connected to the grid biomass plants for a total of 1.5 MWe and 2 MWt. The total energy production of the full ownership and joint ventures plants for the power generation business, in the first half was equal to around 13.5 million kWh. The business line Energy management has managed about 19 million Standard cubic meters of gas equivalent to 199,680 MWh. The Energy saving business line has made interventions for 372 lighting points with an expected saving of 2.2 million KWh and 405 TEPs. In the environmental sector are operating two treatment and recycle plant of end of life tires (ELTs), the GreenAsm biodigestion and composting plant and finally the groundwater remediation plant in Nera Montoro (TR). SIGNIFICANT EVENTS OCCURRED AFTER THE END OF FINANCIAL PERIOD Signed an energy efficiency contract for an amount of Euro 4.3 million On April 5, 2017, TerniEnergia announced the signing of an energy efficiency contract with the TPF formula (third party financing), total worth approximately of Euro 4.3 million on behalf of COPERNICO Srl., a leading company in property management that promotes smartworking and accelerates business growth through a space, content and networking platform. The contract, which includes 12 years of service, regards the efficiency of COPERNICO Garibaldi, located in the former L'Oreal building of about 12,500 square meters in the heart of Turin (ITA). The project will be realized through the TerniEnergia's formula "Hub" with the partnership of Aura Energy Srl.. TerniEnergia, consequently to the acquisition of Softeco Sismat and Selesoft and to the strategic development programs identified by management, will complete the process of transformation in smart energy company active along the entire energy value chain, integrating, at the outcome of the due diligence procedures, the company Energetic, active in the energy management and trading "dual fuel" of gas and power. This agreement will also allow a significant increase in the activity of energy efficiency LOB, with an offer dedicated to the loyalty of the established customers of the company being acquired. The company is focused in the entering in the field of services and development and industrial production solutions and smart technologies for the transmission and distribution of energy (smart grid), the flexible and timely management of production and energy consumption, energy efficiency, management of renewable energy and cleantech (energy islands). The Group intends to integrate the activities in renewables, energy efficiency and energy management with systems and innovative solutions with high added value, making it possible to introduce new technologies in the industry capable of act as a bridge between the industrial and "physical" business and the digital and "virtual" one. TerniEnergia' LOB Technical services is strengthening the activities of scouting and market analysis for the development of new projects and to participate in new international tenders as "EPC contractor" for large utility or primary investors. Among the planned activities, the development of a giant scale plant in Egypt, important orders in Africa (Tunisia and Zambia) and landing in new high-growth markets (India). The Cleantech LOB of the Company intends to complete a new plant in southern Italy for energy recovery through composting and anaerobic biodigestion. Finally it will completed the new treatment plant of industrial fluid waste in Nera Montoro (TR), which will intercept a substantial demand (58 thousand cubic meters/year) in a market segment experiencing a high technological activity with high growth prospects. Declaration pursuant to Article 154-bis, paragraph two, of the Consolidated Finance Act The Officer responsible for the preparation of the corporate accounting documents, Mr Paolo Allegretti, declares, pursuant to paragraph 2, art. 154-bis of the Consolidated Financial Act, that the accounting information that is contained in this press release correspond to the documentary results, the accounting books and records. TERNIENERGIA (TER.MI), established in September 2005, and part of Italeaf Group, is the first Italian smart energy company, committed to bring worldwide integrated and sustainable energy solutions. Organized into four business lines (Technical services, Energy management, Energy efficiency and Cleantech), with about 500 employees and a geographic presence in almost the continents, with operational and sales offices, TerniEnergia develops solutions, innovative products and services based on digital and industrial technologies for the energy sector. TerniEnergia, also through its subsidiaries, shall pursue the objectives of increasing energy production from renewable sources, energy efficiency and emissions reduction, as laid down by European environmental policy, and participates actively in the distributed power generation revolution and energy smart grids. TerniEnergia is the ideal partner for large utilities, distributors and grid operators, power producers, public authorities, industrial customers and investors who intends to carry out large projects for the production of renewable energy plants and modern systems with high energy efficiency, solutions for the management and maintenance of the infrastructure and the electrical systems. TerniEnergia, through a complete technological and commercial offer, develops and provides technologies, turn-key services and solutions for energy consumers in the public and private sectors. The company is listed on the STAR segment of the Italian Stock Exchange. This press release is also available on the Companies websites: www.italeaf.com and www.ternienergia.com Certified Adviser Mangold Fondkommission AB, +46 (0)8 5030 1550, is the Certified Adviser of Italeaf SpA on Nasdaq First North. For further information please contact:  Filippo Calisti CFO - Italeaf S.p.A. E-mail: calisti@italeaf.com Italeaf SpA, established in December 2010, is a holding company and a business accelerator for companies and startups in the areas of innovation and cleantech. Italeaf operates as a company builder, promoting the creation and development of industrial startups in the fields of cleantech, smart energy and technological innovation. Italeaf has headquarters and plants in Italy at Nera Montoro (Narni), Terni, Milano and Lecce; has international offices in London and Hong Kong and a research and development centre in the Hong Kong Science and Technology Park.  The company controls TerniEnergia, listed on the STAR segment of the Italian Stock Exchange and active in the fields of renewable energy, energy efficiency and waste management, and Skyrobotic, in the business development and manufacture of civil and commercial drones in mini and micro classes for the professional market, Numanova, operating in the field of innovative metallurgy and additive manufacturing, and Italeaf RE, a real estate company. Italeaf holds a minority stake in Vitruviano LAB, a research center active in the R&D sector for special materials, green chemistry, digital transformation and cleantech.


According to Stratistics MRC, the Global Instrumentation Valves and Fittings market is expected to grow from $3.86 billion in 2015 to reach $5.63 billion by 2022 with a CAGR of 5.5%. Huge requirement for valves and fittings in industrial automation in fumes, fluid, and gas control applications is the major factor driving the market growth. In addition, growth in usage of instrumentation valves on account of increasing growth rate of hyperbaric oxygen therapy devices is also favouring the market growth. Ultraclean valves market is anticipated to grow at a higher CAGR during the forecast period. It is attributed to extensive usage in pharmaceutical sector for ultra-hygienic applications. The oil & gas application is leading the global market. It is led by increasing market demand for valves in the instrumentation valves & fittings market. North America and Europe are projected to be the leading markets in terms of market size, during the forecast period. Asia Pacific and Latin America are expected to witness high growth rate during the forecast period. Some of the key players in global instrumentation valves and fittings market include Fujikin., Dwyer Instruments, Fitok, Bray International Inc., Braeco., Hoke., Hex Valve, Ham-Let, Astectubelok, As-Schneider, Hy-Lok, Ssp Fitting, Oliver Valves, Safelok, Swagelok, and Parker Hannifin. Regions Covered: • North America o US o Canada o Mexico • Europe o Germany o France o Italy o UK o Spain o Rest of Europe • Asia Pacific o Japan o China o India o Australia o New Zealand o Rest of Asia Pacific • Rest of the World o Middle East o Brazil o Argentina o South Africa o Egypt What our report offers: - Market share assessments for the regional and country level segments - Market share analysis of the top industry players - Strategic recommendations for the new entrants - Market forecasts for a minimum of 7 years of all the mentioned segments, sub segments and the regional markets - Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations) - Strategic recommendations in key business segments based on the market estimations - Competitive landscaping mapping the key common trends - Company profiling with detailed strategies, financials, and recent developments - Supply chain trends mapping the latest technological advancements 4 Porters Five Force Analysis 4.1 Bargaining power of suppliers 4.2 Bargaining power of buyers 4.3 Threat of substitutes 4.4 Threat of new entrants 4.5 Competitive rivalry 5 Global Instrumentation Valves and Fittings, By Product Type 5.1 Introduction 5.2 Fittings 5.2.1 Flare Fittings 5.2.2 Double Ferrule Fittings 5.2.3 Pipe Fittings 5.2.4 Single Ferrule Fittings 5.2.5 Other Fittings 5.2.5.1 Filters 5.2.5.2 Dielectric Fittings 5.3 Valves 5.3.1 Ultraclean Valves 5.3.2 Needle Valves 5.3.3 Check Valves 5.3.4 Manifold Valves 5.3.5 Ball Valves 5.3.6 Other Valves 5.3.6.1 Toggle Valves 5.3.6.2 Relief Valves 5.3.6.3 Plug Valves 5.3.6.4 Metering Valves 6 Global Instrumentation Valves and Fittings, By Application 6.1 Introduction 6.2 Chemical 6.3 Food & Beverages 6.4 Hyperbaric Chambers 6.5 Oil & Gas 6.6 Paper & Pulp 6.7 Pharmaceuticals 6.8 Semiconductors 6.9 Other Applications 6.9.1 Process Instrumentation 6.9.2 Power Generation 8 Key Developments 8.1 Agreements, Partnerships, Collaborations and Joint Ventures 8.2 Acquisitions & Mergers 8.3 New Product Launch 8.4 Expansions 8.5 Other Key Strategies For more information, please visit https://www.wiseguyreports.com/sample-request/674306-instrumentation-valves-and-fittings-global-market-outlook-2016-2022

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