BLACK HILLS CORP /SD/ [BKH] Filings

10-Q 1 bkh-20210930.htm 10-Q bkh-20210930

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________.

Commission File Number 001-31303

Black Hills Corporation

Incorporated in South Dakota IRS Identification Number 46-0458824

7001 Mount Rushmore Road

Rapid City, South Dakota 57702

Registrant’s telephone number (605) 721-1700

Former name, former address, and former fiscal year if changed since last report

NONE

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock of $1.00 par value

BKH

New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

Class

Outstanding at October 31, 2021

Common stock, $1.00 par value

63,820,271

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TABLE OF CONTENTS
		Page
Glossary of Terms and Abbreviations		4
Forward-Looking Information		7

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements - unaudited	8
	Condensed Consolidated Statements of Income	8
	Condensed Consolidated Statements of Comprehensive Income	9
	Condensed Consolidated Balance Sheets	10
	Condensed Consolidated Statements of Cash Flows	12
	Condensed Consolidated Statements of Equity	13
	Notes to Condensed Consolidated Financial Statements	15
	Note 1. Management’s Statement	15
	Note 2. Regulatory Matters	16
	Note 3. Commitments, Contingencies and Guarantees	18
	Note 4. Revenue	18
	Note 5. Financing	21
	Note 6. Earnings Per Share	22
	Note 7. Risk Management and Derivatives	22
	Note 8. Fair Value Measurements	26
	Note 9. Other Comprehensive Income	28
	Note 10. Employee Benefit Plans	29
	Note 11. Income Taxes	30
	Note 12. Business Segment Information	31
	Note 13. Selected Balance Sheet Information	33
	Note 14. Subsequent Events	33

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TABLE OF CONTENTS
		Page
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
	Executive Summary	34
	Recent Developments	34
	Results of Operations	35
	Consolidated Summary and Overview	35
	Non-GAAP Financial Measure	37
	Electric Utilities	37
	Gas Utilities	42
	Regulatory Matters	45
	Power Generation	45
	Mining	47
	Corporate and Other	47
	Consolidated Interest Expense, Impairment of Investment, Other Income (Expense) and Income Tax (Expense)	48
	Liquidity and Capital Resources	49
	Cash Flow Activities	49
	Capital Sources	50
	Credit Ratings	50
	Capital Requirements	51
	Critical Accounting Policies Involving Significant Estimates	52
	New Accounting Pronouncements	52

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	53

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

Item 4.	Mine Safety Disclosures	53

Item 6.	Exhibits	54

Signatures		55

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GLOSSARY OF TERMS AND ABBREVIATIONS

The following terms and abbreviations appear in the text of this report and have the definitions described below:


AFUDC			Allowance for Funds Used During Construction
ALJ			Administrative Law Judge
AOCI			Accumulated Other Comprehensive Income (Loss)

Arkansas Gas			Black Hills Energy Arkansas, Inc., an indirect, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Arkansas (doing business as Black Hills Energy).


ASC			Accounting Standards Codification
ASU			Accounting Standards Update issued by the FASB
ATM			At-the-market equity offering program

Availability			The availability factor of a power plant is the percentage of the time that it is available to provide energy.

BHC			Black Hills Corporation; the Company



Black Hills Colorado IPP			Black Hills Colorado IPP, LLC a 50.1% owned subsidiary of Black Hills Electric Generation
Black Hills Electric Generation			Black Hills Electric Generation, LLC, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings, providing wholesale electric capacity and energy primarily to our affiliate utilities.
Black Hills Energy			The name used to conduct the business of our utility companies












Black Hills Energy Services			Black Hills Energy Services Company, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas commodity supply for the Choice Gas Programs (doing business as Black Hills Energy).
Black Hills Non-regulated Holdings			Black Hills Non-regulated Holdings, LLC, a direct, wholly-owned subsidiary of Black Hills Corporation
Black Hills Power			Black Hills Power, Inc., a direct, wholly-owned subsidiary of Black Hills Corporation (doing business as Black Hills Energy). Also known as South Dakota Electric.
Black Hills Utility Holdings			Black Hills Utility Holdings, Inc., a direct, wholly-owned subsidiary of Black Hills Corporation (doing business as Black Hills Energy)
Black Hills Wyoming			Black Hills Wyoming, LLC, a direct, wholly-owned subsidiary of Black Hills Electric Generation









Cheyenne Light			Cheyenne Light, Fuel and Power Company, a direct, wholly-owned subsidiary of Black Hills Corporation, providing electric service in the Cheyenne, Wyoming area (doing business as Black Hills Energy). Also known as Wyoming Electric.
Chief Operating Decision Maker (CODM)			Chief Executive Officer
Choice Gas Program			Regulator-approved programs in Wyoming and Nebraska that allow certain utility customers to select their natural gas commodity supplier, providing for the unbundling of the commodity service from the distribution delivery service.

City of Gillette			Gillette, Wyoming


Colorado Electric			Black Hills Colorado Electric, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings, providing electric service to customers in Colorado (doing business as Black Hills Energy).
Colorado Gas			Black Hills Colorado Gas, Inc., an indirect, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Colorado (doing business as Black Hills Energy).

Consolidated Indebtedness to Capitalization Ratio			Any indebtedness outstanding at such time, divided by capital at such time. Capital being consolidated net worth (excluding non-controlling interest) plus consolidated indebtedness (including letters of credit and certain guarantees issued) as defined within the current Revolving Credit Facility.
Cooling Degree Day (CDD)			A cooling degree day is equivalent to each degree that the average of the high and low temperatures for a day is above 65 degrees. The warmer the climate, the greater the number of cooling degree days. Cooling degree days are used in the utility industry to measure the relative warmth and to compare relative temperatures between one geographic area and another. Normal degree days are based on the National Weather Service data for selected locations.
Corriedale			The 52.5 MW wind farm near Cheyenne, Wyoming, jointly owned by South Dakota Electric and Wyoming Electric, serving as the dedicated wind energy supply to the Renewable Ready program.
COVID-19			The official name for the 2019 novel coronavirus disease announced on February 11, 2020 by the World Health Organization, that is causing a global pandemic.

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CP Program			Commercial Paper Program
CPUC			Colorado Public Utilities Commission


CVA			Credit Valuation Adjustment


Dth			Dekatherm. A unit of energy equal to 10 therms or approximately one million British thermal units (MMBtu)
Economy Energy			Purchased energy that costs less than that produced with the utilities’ owned generation.






FASB			Financial Accounting Standards Board

Fitch			Fitch Ratings Inc.
GAAP			Accounting principles generally accepted in the United States of America


Global Settlement			Settlement with a utility’s commission where the revenue requirement is agreed upon, but the specific adjustments used by each party to arrive at the amount are not specified in public rate orders.

Heating Degree Day (HDD)			A heating degree day is equivalent to each degree that the average of the high and the low temperatures for a day is below 65 degrees. The colder the climate, the greater the number of heating degree days. Heating degree days are used in the utility industry to measure the relative coldness and to compare relative temperatures between one geographic area and another. Normal degree days are based on the National Weather Service data for selected locations.


Iowa Gas			Black Hills Iowa Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Iowa (doing business as Black Hills Energy).
IPP			Independent Power Producer
IRP			Integrated Resource Plan
IRS			United States Internal Revenue Service
IUB			Iowa Utilities Board
Kansas Gas			Black Hills Kansas Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Kansas (doing business as Black Hills Energy).
KCC			Kansas Corporation Commission

LIBOR			London Interbank Offered Rate
MDU			Montana-Dakota Utilities Co., a subsidiary of MDU Resources Group, Inc.


MMBtu			Million British thermal units

Moody’s			Moody’s Investors Service, Inc.

MW			Megawatts
MWh			Megawatt-hours
Nebraska Gas			Black Hills Nebraska Gas, LLC, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Nebraska (doing business as Black Hills Energy).
Neil Simpson II			A mine-mouth, coal-fired power plant owned and operated by South Dakota Electric with a total capacity of 90 MW located at our Gillette, Wyoming energy complex.
NOL			Net Operating Loss
NPSC			Nebraska Public Service Commission








OCI			Other Comprehensive Income
OSHA			Occupational Safety & Health Administration
PPA			Power Purchase Agreement

PSA			Power Sales Agreement

Pueblo Airport Generation			The 420 MW combined cycle gas-fired power generating plants jointly owned by Colorado Electric (220 MW) and Black Hills Colorado IPP (200 MW). Black Hills Colorado IPP operates this facility. The plants commenced operation on January 1, 2012.
Ready Wyoming			A 285-mile, multi-phase transmission expansion project in Wyoming. This transmission project will serve the growing needs of customers by enhancing resiliency of Wyoming Electric’s overall electric system and and expanding access to power markets and renewable resources. The project will help Wyoming Electric maintain top-quartile reliability and enable economic development in the Cheyenne, Wyoming region.

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Renewable Advantage			A 200 MW solar facility project to be constructed in Pueblo County, Colorado. The project aims to lower customer energy costs and provide economic and environmental benefits to Colorado Electric’s customers and communities. This project, which was approved by the CPUC in September 2020, will be owned by a third-party renewable energy developer with Colorado Electric purchasing all of the energy generated at the facility under the terms of a 15-year PPA. The project is expected to be placed in service in 2023.
Renewable Ready			Voluntary renewable energy subscription program for large commercial, industrial and governmental agency customers in South Dakota and Wyoming.
Revolving Credit Facility			Our $750 million credit facility used to fund working capital needs, letters of credit and other corporate purposes, which was amended and restated on July 19, 2021, and now terminates on July 19, 2026.

SDPUC			South Dakota Public Utilities Commission
SEC			United States Securities and Exchange Commission

Service Guard Comfort Plan			Appliance protection plan that provides home appliance repair services through on-going monthly service agreements to residential utility customers.
S&P			S&P Global Ratings, a division of S&P Global Inc.
South Dakota Electric			Black Hills Power, Inc., a direct, wholly-owned subsidiary of Black Hills Corporation, providing electric service to customers in Montana, South Dakota and Wyoming (doing business as Black Hills Energy).
SSIR			System Safety and Integrity Rider
TCJA			Tax Cuts and Jobs Act
Tech Services			Non-regulated product lines delivered by our Utilities that 1) provide electrical system construction services to large industrial customers of our electric utilities, and 2) serve gas transportation customers throughout its service territory by constructing and maintaining customer-owned gas infrastructure facilities, typically through one-time contracts.
Utilities			Black Hills’ Electric and Gas Utilities
Wind Capacity Factor			Measures the amount of electricity a wind turbine produces in a given time period relative to its maximum potential.
Winter Storm Uri			February 2021 winter weather event that caused extreme cold temperatures in the central United States and led to unprecedented fluctuations in customer demand and market pricing for natural gas and energy.

WPSC			Wyoming Public Service Commission
WRDC			Wyodak Resources Development Corporation, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings, providing coal supply primarily to five on-site, mine-mouth generating facilities (doing business as Black Hills Energy)
Wygen I			A mine-mouth, coal-fired power plant with a total capacity of 90 MW located at our Gillette, Wyoming energy complex. Black Hills Wyoming owns 76.5% of the facility and Municipal Energy Agency of Nebraska (MEAN) owns the remaining 23.5%.
Wygen II			A mine-mouth, coal-fired power plant owned by Wyoming Electric with a total capacity of 95 MW located at our Gillette, Wyoming energy complex.
Wygen III			A mine-mouth, coal-fired power plant operated by South Dakota Electric with a total capacity of 110 MW located at our Gillette, Wyoming energy complex. South Dakota Electric owns 52% of the power plant, MDU owns 25% and the City of Gillette owns the remaining 23%.
Wyodak Plant			The 362 MW mine-mouth, coal-fired generating facility near Gillette, Wyoming, jointly owned by PacifiCorp (80%) and South Dakota Electric (20%). Our WRDC mine supplies all of the fuel for the facility.
Wyoming Electric			Cheyenne Light, Fuel and Power Company, a direct, wholly-owned subsidiary of Black Hills Corporation, providing electric service to customers in the Cheyenne, Wyoming area (doing business as Black Hills Energy).
Wyoming Gas			Black Hills Wyoming Gas, LLC, an indirect and wholly-owned subsidiary of Black Hills Utility Holdings, providing natural gas services to customers in Wyoming (doing business as Black Hills Energy).

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FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q includes “forward-looking statements” as defined by the 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 presentation that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. 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 2020 Annual Report on Form 10-K, Part II, Item 1A of this Quarterly Report on Form 10-Q and other reports that we file with the SEC from time to time, and the following:

•Our ability to obtain adequate cost recovery for our utility operations through regulatory proceedings and favorable rulings on periodic applications to recover costs for capital additions, plant retirements and decommissioning, fuel, transmission, purchased power, and other operating costs and the timing in which new rates would go into effect;

•Our ability to complete our capital program in a cost-effective and timely manner;

•Our ability to execute on our strategy;

•Our ability to successfully execute our financing plans;

•Our ability to achieve our greenhouse gas emissions intensity reduction goals;

•Board of Directors’ approval of any future quarterly dividends;

•The impact of future governmental regulation;

•The effects of inflation and volatile energy prices; and

•Other factors discussed from time to time in our filings with the SEC.

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.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BLACK HILLS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(unaudited)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands, except per share amounts)

Revenue	$	380,590	$	346,590	$	1,386,594	$	1,210,554

Operating expenses:
Fuel, purchased power and cost of natural gas sold	94,057		71,686		495,678		331,194
Operations and maintenance	122,277		122,759		375,201		365,533
Depreciation, depletion and amortization	59,159		56,348		174,871		169,413
Taxes - property and production	15,224		13,563		45,390		42,062
Total operating expenses	290,717		264,356		1,091,140		908,202

Operating income	89,873		82,234		295,454		302,352

Other income (expense):

Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts)	(38,604)		(36,521)		(115,098)		(108,067)
Interest income	586		480		1,278		1,028
Impairment of investment	—		—		—		(6,859)
Other income (expense), net	1,560		(1,193)		1,635		(703)
Total other income (expense)	(36,458)		(37,234)		(112,185)		(114,601)

Income before income taxes	53,415		45,000		183,269		187,751
Income tax (expense)	(5,253)		(4,651)		(6,333)		(25,484)
Net income	48,162		40,349		176,936		162,267
Net income attributable to non-controlling interest	(4,050)		(4,066)		(11,347)		(11,844)
Net income available for common stock	$	44,112	$	36,283	$	165,589	$	150,423

Earnings per share of common stock:
Earnings per share, Basic	$	0.70	$	0.58	$	2.63	$	2.41
Earnings per share, Diluted	$	0.70	$	0.58	$	2.63	$	2.41

Weighted average common shares outstanding:
Basic	63,341		62,575		62,950		62,310
Diluted	63,436		62,630		63,046		62,362

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these Condensed Consolidated Financial Statements.

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BLACK HILLS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


(unaudited)	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Net income	$	48,162	$	40,349	$	176,936	$	162,267

Other comprehensive income (loss), net of tax:
Benefit plan liability adjustments - net gain (net of tax of $0, $0, $0 and $(17), respectively)	—		—		—		55
Reclassification adjustments of benefit plan liability - prior service cost (net of tax of $6, $6, $21 and $19, respectively)	(19)		(18)		(53)		(60)
Reclassification adjustments of benefit plan liability - net loss (net of tax of $(139), $(149), $(513) and $(426), respectively)	459		448		1,280		1,365
Derivative instruments designated as cash flow hedges:
Reclassification of net realized losses on settled/amortized interest rate swaps (net of tax of $(55), $(168), $(395) and $(508), respectively)	657		544		1,743		1,630
Net unrealized gains (losses) on commodity derivatives (net of tax of $(1,437), $(112), $(1,776) and $(44), respectively)	4,430		401		5,476		181
Reclassification of net realized (gains) losses on settled commodity derivatives (net of tax of $81, $(41), $87 and $(172), respectively)	(250)		137		(269)		562
Other comprehensive income, net of tax	5,277		1,512		8,177		3,733

Comprehensive income	53,439		41,861		185,113		166,000
Less: comprehensive income attributable to non-controlling interest	(4,050)		(4,066)		(11,347)		(11,844)
Comprehensive income available for common stock	$	49,389	$	37,795	$	173,766	$	154,156

See Note 9 for additional disclosures.

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these Condensed Consolidated Financial Statements.

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BLACK HILLS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS


(unaudited)	As of
	September 30, 2021		December 31, 2020
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	10,181	$	6,356
Restricted cash and equivalents	4,753		4,383
Accounts receivable, net	181,956		265,961
Materials, supplies and fuel	145,743		117,400
Derivative assets, current	12,316		1,848
Income tax receivable, net	17,472		19,446
Regulatory assets, current	213,031		51,676
Other current assets	42,274		26,221
Total current assets	627,726		493,291

Property, plant and equipment	7,697,880		7,305,530
Less: accumulated depreciation and depletion	(1,380,304)		(1,285,816)
Total property, plant and equipment, net	6,317,576		6,019,714

Other assets:
Goodwill	1,299,454		1,299,454
Intangible assets, net	11,063		11,944
Regulatory assets, non-current	617,024		226,582
Other assets, non-current	37,547		37,801
Total other assets, non-current	1,965,088		1,575,781

TOTAL ASSETS	$	8,910,390	$	8,088,786

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these Condensed Consolidated Financial Statements.

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BLACK HILLS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Continued)


(unaudited)	As of
	September 30, 2021		December 31, 2020
	(in thousands, except share amounts)
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	142,130	$	183,340
Accrued liabilities	249,835		243,612
Derivative liabilities, current	3,471		2,044
Regulatory liabilities, current	30,156		25,061
Notes payable	332,525		234,040
Current maturities of long-term debt	—		8,436
Total current liabilities	758,117		696,533

Long-term debt, net of current maturities	4,125,571		3,528,100

Deferred credits and other liabilities:
Deferred income tax liabilities, net	445,036		408,624
Regulatory liabilities, non-current	496,261		507,659
Benefit plan liabilities	150,727		150,556
Other deferred credits and other liabilities	134,776		134,667
Total deferred credits and other liabilities	1,226,800		1,201,506

Commitments, contingencies and guarantees (Note 3)

Equity:
Stockholders’ equity —
Common stock $1 par value; 100,000,000 shares authorized; issued 63,865,151 and 62,827,179 shares, respectively	63,865		62,827
Additional paid-in capital	1,726,277		1,657,285
Retained earnings	929,369		870,738
Treasury stock, at cost – 43,885 and 32,492 shares, respectively	(2,819)		(2,119)
Accumulated other comprehensive income (loss)	(19,169)		(27,346)
Total stockholders’ equity	2,697,523		2,561,385
Non-controlling interest	102,379		101,262
Total equity	2,799,902		2,662,647

TOTAL LIABILITIES AND TOTAL EQUITY	$	8,910,390	$	8,088,786

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these Condensed Consolidated Financial Statements.

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BLACK HILLS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(unaudited)	Nine Months Ended September 30,
	2021		2020
Operating activities:	(in thousands)
Net income	$	176,936	$	162,267
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization	174,871		169,413
Deferred financing cost amortization	3,892		5,523
Impairment of investment	—		6,859
Stock compensation	7,245		2,696
Deferred income taxes	5,844		28,502
Employee benefit plans	6,779		9,294
Other adjustments, net	2,708		7,910
Changes in certain operating assets and liabilities:
Materials, supplies and fuel	(29,948)		(10,905)
Accounts receivable and other current assets	97,348		75,960
Accounts payable and other current liabilities	(20,094)		(11,136)
Regulatory assets	(559,389)		1,954
Regulatory liabilities	(9,533)		(17,686)
Contributions to defined benefit pension plans	—		(12,700)
Other operating activities, net	(1,419)		1,508
Net cash provided by (used in) operating activities	(144,760)		419,459

Investing activities:
Property, plant and equipment additions	(497,849)		(535,993)
Other investing activities	13,743		6,269
Net cash (used in) investing activities	(484,106)		(529,724)

Financing activities:
Dividends paid on common stock	(106,957)		(99,999)
Common stock issued	62,977		99,316
Term loan - borrowings	800,000		—
Term loan - repayments	(800,000)		—
Net borrowings (payments) of Revolving Credit Facility and CP Program	98,485		(265,180)
Long-term debt - issuances	600,000		400,000
Long-term debt - repayments	(8,436)		(7,163)
Distributions to non-controlling interest	(10,230)		(12,636)
Other financing activities	(2,778)		(6,519)
Net cash provided by financing activities	633,061		107,819

Net change in cash, restricted cash and cash equivalents	4,195		(2,446)

Cash, restricted cash and cash equivalents at beginning of period	10,739		13,658
Cash, restricted cash and cash equivalents at end of period	$	14,934	$	11,212

Supplemental cash flow information:
Cash (paid) refunded during the period:
Interest, net of amounts capitalized	$	(93,325)	$	(87,453)
Income taxes	1,486		1,256
Non-cash investing and financing activities:
Accrued property, plant and equipment purchases at September 30	55,619		86,474

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these Condensed Consolidated Financial Statements.

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BLACK HILLS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY


(unaudited)	Common Stock			Treasury Stock
(in thousands except share amounts)	Shares	Value		Shares	Value		Additional Paid in Capital		Retained Earnings		AOCI		Non-controlling Interest		Total
December 31, 2020	62,827,179	$	62,827	32,492	$	(2,119)	$	1,657,285	$	870,738	$	(27,346)	$	101,262	$	2,662,647
Net income	—	—		—	—		—		96,316		—		4,171		100,487
Other comprehensive income, net of tax	—	—		—	—		—		—		1,018		—		1,018


Dividends on common stock ($0.565 per share)	—	—		—	—		—		(35,514)		—		—		(35,514)
Share-based compensation	82,794	83		7,448	(445)		1,672		—		—		—		1,310






Other	—	—		—	—		—		(2)		—		—		(2)
Distributions to non-controlling interest	—	—		—	—		—		—		—		(4,644)		(4,644)
March 31, 2021	62,909,973	$	62,910	39,940	$	(2,564)	$	1,658,957	$	931,538	$	(26,328)	$	100,789	$	2,725,302
Net income	—	—		—	—		—		25,161		—		3,126		28,287
Other comprehensive income, net of tax	—	—		—	—		—		—		1,882		—		1,882
Dividends on common stock ($0.565 per share)	—	—		—	—		—		(35,578)		—		—		(35,578)
Share-based compensation	20,905	21		6,588	(424)		3,698		—		—		—		3,295

Issuance of common stock	596,035	596		—	—		39,636		—		—		—		40,232
Issuance costs	—	—		—	—		(466)		—		—		—		(466)

Other	—	—		—	—		—		1		—		—		1
Distributions to non-controlling interest	—	—		—	—		—		—		—		(4,061)		(4,061)
June 30, 2021	63,526,913	$	63,527	46,528	$	(2,988)	$	1,701,825	$	921,122	$	(24,446)	$	99,854	$	2,758,894
Net income	—	—		—	—		—		44,112		—		4,050		48,162
Other comprehensive income, net of tax	—	—		—	—		—		—		5,277		—		5,277
Dividends on common stock ($0.565 per share)	—	—		—	—		—		(35,865)		—		—		(35,865)
Share-based compensation	17	—		(2,643)	169		1,849		—		—		—		2,018

Issuance of common stock	338,221	338		—