x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 | |
For the quarterly period ended September 30, 2016 | |
OR | |
o | 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 |
625 Ninth Street | |
Rapid City, South Dakota 57701 | |
Registrant’s telephone number (605) 721-1700 | |
Former name, former address, and former fiscal year if changed since last report | |
NONE |
Yes x | No o |
Yes x | No o |
Large accelerated filer x | Accelerated filer o |
Non-accelerated filer o | Smaller reporting company o |
Yes o | No x |
Class | Outstanding at October 31, 2016 | ||
Common stock, $1.00 par value | 53,147,805 | shares |
TABLE OF CONTENTS | |||
Page | |||
Glossary of Terms and Abbreviations | |||
PART I. | FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | ||
Condensed Consolidated Statements of Income (Loss) - unaudited | |||
Three and Nine Months Ended September 30, 2016 and 2015 | |||
Condensed Consolidated Statements of Comprehensive Income (Loss) - unaudited | |||
Three and Nine Months Ended September 30, 2016 and 2015 | |||
Condensed Consolidated Balance Sheets - unaudited | |||
September 30, 2016, December 31, 2015 and September 30, 2015 | |||
Condensed Consolidated Statements of Cash Flows - unaudited | |||
Nine Months Ended September 30, 2016 and 2015 | |||
Notes to Condensed Consolidated Financial Statements - unaudited | |||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 4. | Controls and Procedures | ||
PART II. | OTHER INFORMATION | ||
Item 1. | Legal Proceedings | ||
Item 1A. | Risk Factors | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 4. | Mine Safety Disclosures | ||
Item 5. | Other Information | ||
Item 6. | Exhibits | ||
Signatures | |||
Index to Exhibits |
AFUDC | Allowance for Funds Used During Construction |
AOCI | Accumulated Other Comprehensive Income (Loss) |
APSC | Arkansas Public Service Commission |
ASC | Accounting Standards Codification |
ASU | Accounting Standards Update issued by the FASB |
ATM | At-the-market equity offering program |
Bbl | Barrel |
BHC | Black Hills Corporation; the Company |
Black Hills Gas | Black Hills Gas, LLC, a subsidiary of Black Hills Gas Holdings, which was previously named SourceGas LLC. |
Black Hills Gas Holdings | Black Hills Gas Holdings, LLC, a subsidiary of Black Hills Utility Holdings, which was previously named SourceGas Holdings LLC |
Black Hills Electric Generation | Black Hills Electric Generation, LLC, a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings |
Black Hills Energy | The name used to conduct the business of our utility companies |
Black Hills Energy Arkansas Gas | Includes the acquired SourceGas utility Black Hills Energy Arkansas, Inc. utility operations |
Black Hills Energy Colorado Electric | Includes Colorado Electric’s utility operations |
Black Hills Energy Colorado Gas | Includes Black Hills Energy Colorado Gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Colorado gas operations and RMNG |
Black Hills Energy Iowa Gas | Includes Black Hills Energy Iowa gas utility operations |
Black Hills Energy Kansas Gas | Includes Black Hills Energy Kansas gas utility operations |
Black Hills Energy Nebraska Gas | Includes Black Hills Energy Nebraska gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Nebraska gas operations |
Black Hills Energy South Dakota Electric | Includes Black Hills Power operations in South Dakota, Wyoming and Montana |
Black Hills Energy Wyoming Electric | Includes Cheyenne Light’s electric utility operations |
Black Hills Energy Wyoming Gas | Includes Cheyenne Light’s natural gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Wyoming gas operations |
Black Hills Gas Distribution | Black Hills Gas Distribution, LLC, a company acquired in the SourceGas Acquisition that conducts the gas distribution operations in Colorado, Nebraska and Wyoming. It was formerly named SourceGas Distribution LLC. |
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) |
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 |
Btu | British thermal unit |
Consolidated Indebtedness to Capitalization Ratio | Any Indebtedness outstanding at such time, divided by Capital at such time. Capital being Consolidated Net-Worth (excluding noncontrolling interest) plus Consolidated Indebtedness as defined within the current Credit Agreement. |
Ceiling Test | Related to our Oil and Gas subsidiary, capitalized costs, less accumulated amortization and related deferred income taxes, are subject to a ceiling test which limits the pooled costs to the aggregate of the discounted value of future net revenue attributable to proved natural gas and crude oil reserves using a discount rate defined by the SEC plus the lower of cost or market value of unevaluated properties. |
Cheyenne Light | Cheyenne Light, Fuel and Power Company, a direct, wholly-owned subsidiary of Black Hills Corporation (doing business as Black Hills Energy) |
Cheyenne Prairie | Cheyenne Prairie Generating Station is a 132 MW natural gas-fired generating facility jointly owned by Black Hills Power, Inc. and Cheyenne Light, Fuel and Power Company. Cheyenne Prairie was placed into commercial service on October 1, 2014. |
CIAC | Contribution In Aid of Construction |
City of Gillette | Gillette, Wyoming |
Colorado Electric | Black Hills Colorado Electric Utility Company, LP, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
Colorado Gas | Black Hills Colorado Gas Utility Company, LP, an indirect, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
Colorado Interstate Gas | Colorado Interstate Natural Gas Pricing Index |
Colorado IPP | Black Hills Colorado IPP, LLC a 50.1% owned subsidiary of Black Hills Electric Generation |
Cooling degree day | A cooling degree day is equivalent to each degree that the average of the high and low temperature 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 of weather 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 over a 30-year average. |
Cost of Service Gas Program (COSG) | Proposed Cost of Service Gas Program designed to provide long-term natural gas price stability for the Company’s utility customers, along with a reasonable expectation of customer savings over the life of the program. |
CPCN | Certificate of Public Convenience and Necessity |
CPUC | Colorado Public Utilities Commission |
CVA | Credit Valuation Adjustment |
Dodd-Frank | Dodd-Frank Wall Street Reform and Consumer Protection Act |
Dth | Dekatherm. A unit of energy equal to 10 therms or one million British thermal units (MMBtu) |
El Paso San Juan | El Paso San Juan Natural Gas Pricing Index |
Equity Unit | Each Equity Unit has a stated amount of $50, consisting of a purchase contract issued by BHC to purchase shares of BHC common stock and a 1/20, or 5% undivided beneficial ownership interest in $1,000 principal amount of BHC RSNs due 2028. |
FASB | Financial Accounting Standards Board |
FERC | United States Federal Energy Regulatory Commission |
Fitch | Fitch Ratings |
GAAP | Accounting principles generally accepted in the United States of America |
Heating Degree Day | 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 of weather 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 over a 30-year average. |
Iowa Gas | Black Hills Iowa Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
IPP | Independent power producer |
IRS | United States Internal Revenue Service |
Kansas Gas | Black Hills Kansas Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
kV | Kilovolt |
LIBOR | London Interbank Offered Rate |
LOE | Lease Operating Expense |
Mcf | Thousand cubic feet |
Mcfe | Thousand cubic feet equivalent. |
MMBtu | Million British thermal units |
Moody’s | Moody’s Investors Service, Inc. |
MW | Megawatts |
MWh | Megawatt-hours |
Nebraska Gas | Black Hills Nebraska Gas Utility Company, LLC, a direct, wholly-owned subsidiary of Black Hills Utility Holdings (doing business as Black Hills Energy) |
NGL | Natural Gas Liquids (1 barrel equals 6 Mcfe) |
Northwest Wyoming Pool | Northwest Wyoming Natural Gas Pricing index |
NPSC | Nebraska Public Service Commission |
NYMEX | New York Mercantile Exchange |
NYSE | New York Stock Exchange |
Panhandle Eastern Pipeline | Panhandle Eastern Pipeline Natural Gas Pricing Index |
Peak View Wind Project | $109 million 60 MW wind generating project for Colorado Electric, adjacent to Busch Ranch wind farm |
PPA | Power Purchase Agreement |
Revolving Credit Facility | Our $750 million credit facility used to fund working capital needs, letters of credit and other corporate purposes, which matures in 2021. |
RMNG | Rocky Mountain Natural Gas, a regulated gas utility acquired in the SourceGas Acquisition that provides regulated transmission and wholesale natural gas service to Black Hills Gas in western Colorado (doing business as Black Hills Energy) |
RSNs | Remarketable junior subordinated notes, issued on November 23, 2015 |
SEC | U. S. Securities and Exchange Commission |
SourceGas | SourceGas Holdings LLC and its subsidiaries, a gas utility owned by funds managed by Alinda Capital Partners and GE Energy Financial Services, a unit of General Electric Co. (NYSE:GE) that was acquired on February 12, 2016, and is now named Black Hills Gas Holdings, LLC (doing business as Black Hills Energy) |
SourceGas Acquisition | On February 12, 2016, Black Hills Utility Holdings acquired SourceGas pursuant to a purchase and sale agreement executed on July 12, 2015 for approximately $1.89 billion, which included the assumption of $760 million in debt at closing. |
S&P | Standard and Poor’s, a division of The McGraw-Hill Companies, Inc. |
SSIR | System Safety and Integrity |
TCA | Transmission Cost Adjustment -- adjustments passed through to the customer based on transmission costs that are higher or lower than the costs approved in the rate case. |
VIE | Variable interest entity |
WPSC | Wyoming Public Service Commission |
WRDC | Wyodak Resources Development Corp., a direct, wholly-owned subsidiary of Black Hills Non-regulated Holdings |
Wyodak Plant | Wyodak, a 362 MW mine-mouth coal-fired plant in Gillette, Wyoming, is owned 80% by Pacificorp and 20% by Black Hills Energy South Dakota. Our WRDC mine supplies all of the fuel for the plant. |
(unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(in thousands, except per share amounts) | ||||||||||||
Revenue | $ | 333,786 | $ | 272,105 | $ | 1,109,186 | $ | 986,346 | ||||
Operating expenses: | ||||||||||||
Fuel, purchased power and cost of natural gas sold | 80,194 | 71,627 | 336,539 | 350,778 | ||||||||
Operations and maintenance | 115,103 | 89,830 | 334,706 | 273,374 | ||||||||
Depreciation, depletion and amortization | 48,925 | 37,768 | 140,637 | 116,821 | ||||||||
Taxes - property, production and severance | 12,114 | 10,675 | 36,991 | 33,988 | ||||||||
Impairment of long-lived assets | 12,293 | 61,875 | 52,286 | 178,395 | ||||||||
Other operating expenses | 6,748 | 2,374 | 40,730 | 3,392 | ||||||||
Total operating expenses | 275,377 | 274,149 | 941,889 | 956,748 | ||||||||
Operating income (loss) | 58,409 | (2,044 | ) | 167,297 | 29,598 | |||||||
Other income (expense): | ||||||||||||
Interest charges - | ||||||||||||
Interest expense incurred (including amortization of debt issuance costs, premiums and discounts) | (37,306 | ) | (22,378 | ) | (103,989 | ) | (61,833 | ) | ||||
Allowance for funds used during construction - borrowed | 860 | 478 | 2,115 | 843 | ||||||||
Capitalized interest | 282 | 280 | 785 | 1,037 | ||||||||
Interest income | 912 | 414 | 2,513 | 1,163 | ||||||||
Allowance for funds used during construction - equity | 1,211 | 430 | 2,900 | 563 | ||||||||
Other income (expense), net | 160 | 842 | 801 | 1,568 | ||||||||
Total other income (expense), net | (33,881 | ) | (19,934 | ) | (94,875 | ) | (56,659 | ) | ||||
Income (loss) before earnings (loss) of unconsolidated subsidiaries and income taxes | 24,528 | (21,978 | ) | 72,422 | (27,061 | ) | ||||||
Equity in earnings (loss) of unconsolidated subsidiaries | — | — | — | (344 | ) | |||||||
Impairment of equity investments | — | — | — | (5,170 | ) | |||||||
Income tax benefit (expense) | (6,644 | ) | 12,035 | (11,205 | ) | 14,640 | ||||||
Net income (loss) | 17,884 | (9,943 | ) | 61,217 | (17,935 | ) | ||||||
Net income attributable to noncontrolling interest | (3,753 | ) | — | (6,415 | ) | — | ||||||
Net income (loss) available for common stock | $ | 14,131 | $ | (9,943 | ) | $ | 54,802 | $ | (17,935 | ) | ||
Earnings (loss) per share of common stock: | ||||||||||||
Earnings (loss) per share, Basic | $ | 0.27 | $ | (0.22 | ) | $ | 1.06 | $ | (0.40 | ) | ||
Earnings (loss) per share, Diluted | $ | 0.26 | $ | (0.22 | ) | $ | 1.04 | $ | (0.40 | ) | ||
Weighted average common shares outstanding: | ||||||||||||
Basic | 52,184 | 44,635 | 51,583 | 44,598 | ||||||||
Diluted | 53,733 | 44,635 | 52,893 | 44,598 | ||||||||
Dividends declared per share of common stock | $ | 0.420 | $ | 0.405 | $ | 1.260 | $ | 1.215 |
(unaudited) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(in thousands) | ||||||||||||
Net income (loss) | $ | 17,884 | $ | (9,943 | ) | $ | 61,217 | $ | (17,935 | ) | ||
Other comprehensive income (loss), net of tax: | ||||||||||||
Fair value adjustments on derivatives designated as cash flow hedges (net of tax (expense) benefit of $(260) and $(1,609) for the three months ended 2016 and 2015 and $10,605 and $(1,482) for the nine months ended 2016 and 2015, respectively) | (551 | ) | 2,773 | (20,617 | ) | 2,644 | ||||||
Reclassification adjustments for cash flow hedges settled and included in net income (loss) (net of tax (expense) benefit of $566 and $558 for the three months ended 2016 and 2015 and $2,450 and $2,548 for the nine months ended 2016 and 2015, respectively) | (923 | ) | (948 | ) | (4,137 | ) | (3,450 | ) | ||||
Benefit plan liability adjustments - net gain (loss) (net of tax (expense) benefit of $0 and $0 for the three months ended 2016 and 2015 and $0 and $16 for the nine months ended 2016 and 2015, respectively) | — | — | — | (27 | ) | |||||||
Reclassification adjustments of benefit plan liability - prior service cost (net of tax (expense) benefit of $19 and $19 for the three months ended 2016 and 2015 and $58 and $58 for the nine months ended 2016 and 2015, respectively) | (36 | ) | (36 | ) | (108 | ) | (108 | ) | ||||
Reclassification adjustments of benefit plan liability - net gain (loss) (net of tax (expense) benefit of $(171) and $(247) for the three months ended 2016 and 2015 and $(516) and $(742) for the nine months ended 2016 and 2015, respectively) | 323 | 459 | 966 | 1,374 | ||||||||
Other comprehensive income (loss), net of tax | (1,187 | ) | 2,248 | (23,896 | ) | 433 | ||||||
Comprehensive income (loss) | 16,697 | (7,695 | ) | 37,321 | (17,502 | ) | ||||||
Less: comprehensive income attributable to noncontrolling interest | (3,753 | ) | — | (6,415 | ) | — | ||||||
Comprehensive income (loss) available for common stock | $ | 12,944 | $ | (7,695 | ) | $ | 30,906 | $ | (17,502 | ) |
(unaudited) | As of | ||||||||||
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
(in thousands) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 62,964 | $ | 456,535 | $ | 38,841 | |||||
Restricted cash and equivalents | 2,140 | 1,697 | 2,462 | ||||||||
Accounts receivable, net | 154,617 | 147,486 | 115,502 | ||||||||
Materials, supplies and fuel | 113,475 | 86,943 | 90,349 | ||||||||
Derivative assets, current | 4,382 | — | — | ||||||||
Income tax receivable, net | — | 368 | — | ||||||||
Deferred income tax assets, net, current | — | — | 47,783 | ||||||||
Regulatory assets, current | 50,561 | 57,359 | 51,962 | ||||||||
Other current assets | 30,032 | 71,763 | 55,383 | ||||||||
Total current assets | 418,171 | 822,151 | 402,282 | ||||||||
Investments | 12,416 | 11,985 | 12,148 | ||||||||
Property, plant and equipment | 6,306,119 | 4,976,778 | 4,882,420 | ||||||||
Less: accumulated depreciation and depletion | (1,841,116 | ) | (1,717,684 | ) | (1,617,723 | ) | |||||
Total property, plant and equipment, net | 4,465,003 | 3,259,094 | 3,264,697 | ||||||||
Other assets: | |||||||||||
Goodwill | 1,300,379 | 359,759 | 359,527 | ||||||||
Intangible assets, net | 8,944 | 3,380 | 3,440 | ||||||||
Regulatory assets, non-current | 234,240 | 175,125 | 182,337 | ||||||||
Derivative assets, non-current | 183 | 3,441 | — | ||||||||
Other assets, non-current | 12,800 | 7,382 | 7,501 | ||||||||
Total other assets, non-current | 1,556,546 | 549,087 | 552,805 | ||||||||
TOTAL ASSETS | $ | 6,452,136 | $ | 4,642,317 | $ | 4,231,932 |
(unaudited) | As of | ||||||||||
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
(in thousands, except share amounts) | |||||||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND TOTAL EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 141,780 | $ | 105,468 | $ | 91,633 | |||||
Accrued liabilities | 228,522 | 232,061 | 229,889 | ||||||||
Derivative liabilities, current | 1,941 | 2,835 | 3,312 | ||||||||
Accrued income taxes, net | 10,909 | — | 308 | ||||||||
Regulatory liabilities, current | 16,925 | 4,865 | 5,647 | ||||||||
Notes payable | 75,000 | 76,800 | 117,900 | ||||||||
Current maturities of long-term debt | 5,743 | — | — | ||||||||
Total current liabilities | 480,820 | 422,029 | 448,689 | ||||||||
Long-term debt | 3,211,768 | 1,853,682 | 1,553,167 | ||||||||
Deferred credits and other liabilities: | |||||||||||
Deferred income tax liabilities, net, non-current | 533,865 | 450,579 | 494,834 | ||||||||
Derivative liabilities, non-current | 317 | 156 | 722 | ||||||||
Regulatory liabilities, non-current | 186,496 | 148,176 | 152,164 | ||||||||
Benefit plan liabilities | 171,633 | 146,459 | 158,682 | ||||||||
Other deferred credits and other liabilities | 141,007 | 155,369 | 136,462 | ||||||||
Total deferred credits and other liabilities | 1,033,318 | 900,739 | 942,864 | ||||||||
Commitments and contingencies (See Notes 10, 11, 12, 18, 19) | |||||||||||
Redeemable noncontrolling interest | 4,206 | — | — | ||||||||
Equity: | |||||||||||
Stockholders’ equity — | |||||||||||
Common stock $1 par value; 100,000,000 shares authorized; issued 53,131,469; 51,231,861; and 44,891,626 shares, respectively | 53,131 | 51,232 | 44,892 | ||||||||
Additional paid-in capital | 1,123,527 | 953,044 | 753,856 | ||||||||
Retained earnings | 462,090 | 472,534 | 504,864 | ||||||||
Treasury stock, at cost – 22,368; 39,720; and 36,711 shares, respectively | (1,155 | ) | (1,888 | ) | (1,789 | ) | |||||
Accumulated other comprehensive income (loss) | (32,951 | ) | (9,055 | ) | (14,611 | ) | |||||
Total stockholders’ equity | 1,604,642 | 1,465,867 | 1,287,212 | ||||||||
Noncontrolling interest | 117,382 | — | — | ||||||||
Total equity | 1,722,024 | 1,465,867 | 1,287,212 | ||||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND TOTAL EQUITY | $ | 6,452,136 | $ | 4,642,317 | $ | 4,231,932 |
(unaudited) | Nine Months Ended September 30, | |||||
2016 | 2015 | |||||
Operating activities: | (in thousands) | |||||
Net income (loss) available for common stock | $ | 54,802 | $ | (17,935 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation, depletion and amortization | 140,637 | 116,821 | ||||
Deferred financing cost amortization | 4,002 | 3,074 | ||||
Impairment of long-lived assets | 52,286 | 183,565 | ||||
Derivative fair value adjustments | (7,308 | ) | (8,851 | ) | ||
Stock compensation | 9,124 | 2,868 | ||||
Deferred income taxes | 38,578 | (20,808 | ) | |||
Employee benefit plans | 11,830 | 15,175 | ||||
Other adjustments, net | (2,076 | ) | 4,013 | |||
Changes in certain operating assets and liabilities: | ||||||
Materials, supplies and fuel | (5,166 | ) | 3,618 | |||
Accounts receivable, unbilled revenues and other operating assets | 78,869 | 75,966 | ||||
Accounts payable and other operating liabilities | (102,155 | ) | (5,255 | ) | ||
Regulatory assets - current | 8,453 | 27,768 | ||||
Regulatory liabilities - current | (8,181 | ) | 2,457 | |||
Contributions to defined benefit pension plans | (14,200 | ) | (10,200 | ) | ||
Interest rate swap settlement | (28,820 | ) | — | |||
Other operating activities, net | (5,998 | ) | (6,403 | ) | ||
Net cash provided by (used in) operating activities | 224,677 | 365,873 | ||||
Investing activities: | ||||||
Property, plant and equipment additions | (334,098 | ) | (349,471 | ) | ||
Acquisition, net of long term debt assumed | (1,124,238 | ) | — | |||
Other investing activities | (860 | ) | (7,189 | ) | ||
Net cash provided by (used in) investing activities | (1,459,196 | ) | (356,660 | ) | ||
Financing activities: | ||||||
Dividends paid on common stock | (65,247 | ) | (54,450 | ) | ||
Common stock issued | 107,690 | 2,484 | ||||
Sale of noncontrolling interest | 216,370 | — | ||||
Short-term borrowings - issuances | 208,100 | 287,910 | ||||
Short-term borrowings - repayments | (209,900 | ) | (245,010 | ) | ||
Long-term debt - issuances | 1,767,608 | 300,000 | ||||
Long-term debt - repayments | (1,162,872 | ) | (275,000 | ) | ||
Distributions to noncontrolling interest | (4,516 | ) | — | |||
Other financing activities | (16,285 | ) | (7,524 | ) | ||
Net cash provided by (used in) financing activities | 840,948 | 8,410 | ||||
Net change in cash and cash equivalents | (393,571 | ) | 17,623 | |||
Cash and cash equivalents, beginning of period | 456,535 | 21,218 | ||||
Cash and cash equivalents, end of period | $ | 62,964 | $ | 38,841 |
For the Three Months Ended September 30, 2015 | For the Nine Months Ended September 30, 2015 | ||||||||||||||||||
(in thousands) | As Previously Reported | Presentation Reclassification | As Currently Reported | As Previously Reported | Presentation Reclassification | As Currently Reported | |||||||||||||
Utilities - operations and maintenance | $ | 67,282 | $ | (67,282 | ) | $ | — | $ | 205,630 | $ | (205,630 | ) | $ | — | |||||
Non-regulated energy operations and maintenance | $ | 22,548 | $ | (22,548 | ) | $ | — | $ | 67,744 | $ | (67,744 | ) | $ | — | |||||
Operations and maintenance | $ | — | $ | 89,830 | $ | 89,830 | $ | — | $ | 273,374 | $ | 273,374 |
(in thousands) | |||||
Preliminary Purchase Price | $ | 1,894,882 | |||
Less: Long-term debt assumed | (760,000 | ) | |||
Less: Working capital adjustment received | (10,644 | ) | |||
Consideration Paid, net of working capital adjustment received | $ | 1,124,238 | |||
Preliminary Allocation of Purchase Price: | |||||
Current Assets | $ | 111,893 | |||
Property, plant & equipment, net | 1,058,093 | ||||
Goodwill | 940,620 | ||||
Deferred charges and other assets, excluding goodwill | 133,215 | ||||
Current liabilities | (166,807 | ) | |||
Long-term debt | (764,337 | ) | |||
Deferred credits and other liabilities | (188,439 | ) | |||
Total preliminary consideration paid, net of working-capital adjustment received | $ | 1,124,238 |
Pro Forma Results | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(in thousands, except per share amounts) | |||||||||||||
Revenue | $ | 333,786 | $ | 344,498 | $ | 1,188,148 | $ | 1,320,047 | |||||
Net income (loss) available for common stock | $ | 17,376 | $ | (14,189 | ) | $ | 89,973 | $ | (13,884 | ) | |||
Earnings (loss) per share, Basic | $ | 0.33 | $ | (0.28 | ) | $ | 1.74 | $ | (0.27 | ) | |||
Earnings (loss) per share, Diluted | $ | 0.32 | $ | (0.28 | ) | $ | 1.70 | $ | (0.27 | ) |
Three Months Ended September 30, 2016 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric | $ | 171,754 | $ | 2,747 | $ | 24,181 | ||||||
Gas (f) | 141,445 | — | (2,939 | ) | ||||||||
Power Generation (e) | 1,906 | 21,431 | 5,642 | |||||||||
Mining | 9,042 | 7,778 | 3,307 | |||||||||
Oil and Gas (a) | 9,639 | — | (8,828 | ) | ||||||||
Corporate activities (c) | — | — | (7,232 | ) | ||||||||
Inter-company eliminations | — | (31,956 | ) | — | ||||||||
Total | $ | 333,786 | $ | — | $ | 14,131 |
Three Months Ended September 30, 2015 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric (d) | $ | 176,042 | $ | 2,548 | $ | 22,659 | ||||||
Gas (d) | 75,155 | — | 652 | |||||||||
Power Generation | 2,123 | 21,128 | 9,067 | |||||||||
Mining | 8,890 | 8,076 | 3,047 | |||||||||
Oil and Gas (a) (b) | 9,895 | — | (39,769 | ) | ||||||||
Corporate activities (c) | — | — | (5,599 | ) | ||||||||
Inter-company eliminations | — | (31,752 | ) | — | ||||||||
Total | $ | 272,105 | $ | — | $ | (9,943 | ) |
Nine Months Ended September 30, 2016 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric | $ | 493,845 | $ | 9,413 | $ | 62,625 | ||||||
Gas (f) | 563,879 | — | 29,975 | |||||||||
Power Generation (e) | 5,304 | 63,055 | 19,907 | |||||||||
Mining | 20,498 | 23,651 | 6,969 | |||||||||
Oil and Gas (a) | 25,660 | — | (35,277 | ) | ||||||||
Corporate activities (c) | — | — | (29,397 | ) | ||||||||
Inter-company eliminations | — | (96,119 | ) | — | ||||||||
Total | $ | 1,109,186 | $ | — | $ | 54,802 |
Nine Months Ended September 30, 2015 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric (d) | $ | 504,049 | $ | 8,481 | $ | 57,844 | ||||||
Gas (d) | 416,950 | — | 27,475 | |||||||||
Power Generation | 5,782 | 62,452 | 24,761 | |||||||||
Mining | 26,084 | 23,541 | 9,106 | |||||||||
Oil and Gas (a) (b) | 33,481 | — | (130,079 | ) | ||||||||
Corporate activities (c) | — | — | (7,042 | ) | ||||||||
Inter-company eliminations | — | (94,474 | ) | — | ||||||||
Total | $ | 986,346 | $ | — | $ | (17,935 | ) |
(a) | Net income (loss) available for common stock for the three and nine months ended September 30, 2016 and September 30, 2015 includes non-cash after-tax impairments of oil and gas properties of $7.9 million and $33 million and $36 million and $113 million, respectively. See Note 20 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(b) | Net income (loss) available for common stock for the nine months ended September 30, 2015 included a non-cash after-tax impairment to equity investments of $3.4 million. See Note 20 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(c) | Net income (loss) available for common stock for the three and nine months ended September 30, 2016 and September 30, 2015 included incremental, non-recurring acquisition costs, net of tax of $4.0 million and $24 million; and $2.8 million and $3.0 million respectively, and after-tax internal labor costs attributable to the acquisition of $1.7 million and $7.4 million; and $1.2 million and $1.8 million respectively. See Note 2 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(d) | Effective January 1, 2016, Cheyenne Light’s natural gas utility results are reported in our Gas Utility segment. Cheyenne Light’s gas utility results for the three and nine months ended September 30, 2015 have been reclassified from the Electric Utility segment to the Gas Utility segment. Revenue of $6.2 million and $31 million, respectively, and Net loss of $1.0 million and Net income of $0.5 million, respectively, previously reported in the Electric Utility segment in 2015 are now included in the Gas Utility segment. |
(e) | Net income (loss) available for common stock is net of net income attributable to noncontrolling interests of $3.8 million and $6.4 million for the three and nine months ended September 30, 2016. |
(f) | Gas Utility revenue increased for the three and nine months ended September 30, 2016 compared to the same periods in the prior year primarily due to the addition of the SourceGas utilities on February 12, 2016. |
Total Assets (net of inter-company eliminations) as of: | September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||
Segment: | |||||||||||
Electric (a) (b) | $ | 2,824,145 | $ | 2,720,004 | $ | 2,706,654 | |||||
Gas (b) (e) | 3,182,852 | 999,778 | 967,225 | ||||||||
Power Generation (a) | 77,570 | 60,864 | 78,666 | ||||||||
Mining | 66,804 | 76,357 | 78,000 | ||||||||
Oil and Gas (c) | 158,970 | 208,956 | 280,842 | ||||||||
Corporate activities (d) | 141,795 | 576,358 | 120,545 | ||||||||
Total assets | $ | 6,452,136 | $ | 4,642,317 | $ | 4,231,932 |
(a) | The PPA under which Black Hills Colorado IPP provides generation to support Colorado Electric customers from the Pueblo Airport Generation Station is accounted for as a capital lease. As such, assets owned by our Power Generation segment are recorded at Colorado Electric under accounting for a capital lease. |
(b) | Effective January 1, 2016, Cheyenne Light’s natural gas utility results are reported in our Gas Utility segment. Cheyenne Light’s gas utility assets as of the nine months ended September 30, 2015 have been reclassified from the Electric Utility segment to the Gas Utility segment. Assets of $135 million and $136 million, respectively, previously reported in the Electric Utility segment in 2015 are now presented in the Gas Utility segment as of December 31, 2015 and September 30, 2015. |
(c) | As a result of continued low commodity prices and our decision to divest non-core oil and gas assets, we recorded non-cash impairments of $52 million for the nine months ended September 30, 2016, $250 million for the year ended December 31, 2015, and $178 million for the nine months ended September 30, 2015. See Note 20 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(d) | Corporate assets at December 31, 2015 included approximately $440 million of cash from the November 23, 2015 equity offerings, which was used to partially fund the SourceGas acquisition on February 12, 2016. |
(e) | Includes the assets acquired in the SourceGas acquisition on February 12, 2016. |
Accounts | Unbilled | Less Allowance for | Accounts | |||||||||
September 30, 2016 | Receivable, Trade | Revenue | Doubtful Accounts | Receivable, net | ||||||||
Electric Utilities | $ | 44,747 | $ | 30,970 | $ | (580 | ) | $ | 75,137 | |||
Gas Utilities | 48,057 | 23,582 | (1,923 | ) | 69,716 | |||||||
Power Generation | 1,165 | — | — | 1,165 | ||||||||
Mining | 3,612 | — | — | 3,612 | ||||||||
Oil and Gas | 3,341 | — | (13 | ) | 3,328 | |||||||
Corporate | 1,659 | — | — | 1,659 | ||||||||
Total | $ | 102,581 | $ | 54,552 | $ | (2,516 | ) | $ | 154,617 |
Accounts | Unbilled | Less Allowance for | Accounts | |||||||||
December 31, 2015 | Receivable, Trade | Revenue | Doubtful Accounts | Receivable, net | ||||||||
Electric Utilities (a) | $ | 41,679 | $ | 35,874 | $ | (727 | ) | $ | 76,826 | |||
Gas Utilities (a) | 30,331 | 32,869 | (1,001 | ) | 62,199 | |||||||
Power Generation | 1,187 | — | — | 1,187 | ||||||||
Mining | 2,760 | — | — | 2,760 | ||||||||
Oil and Gas | 3,502 | — | (13 | ) | 3,489 | |||||||
Corporate | 1,025 | — | — | 1,025 | ||||||||
Total | $ | 80,484 | $ | 68,743 | $ | (1,741 | ) | $ | 147,486 |
Accounts | Unbilled | Less Allowance for | Accounts | |||||||||
September 30, 2015 | Receivable, Trade | Revenue | Doubtful Accounts | Receivable, net | ||||||||
Electric Utilities (a) | $ | 41,655 | $ | 33,979 | $ | (811 | ) | $ | 74,823 | |||
Gas Utilities (a) | 20,031 | 11,230 | (527 | ) | 30,734 | |||||||
Power Generation | 1,186 | — | — | 1,186 | ||||||||
Mining | 2,684 | — | — | 2,684 | ||||||||
Oil and Gas | 4,522 | — | (13 | ) | 4,509 | |||||||
Corporate | 1,566 | — | — | 1,566 | ||||||||
Total | $ | 71,644 | $ | 45,209 | $ | (1,351 | ) | $ | 115,502 |
(a) | Effective January 1, 2016, Cheyenne Light’s natural gas utility results are reported in our Gas Utility segment. Cheyenne Light’s gas utility accounts receivable has been reclassified from the Electric Utility segment to the Gas Utility segment. Accounts receivable of $6.8 million and $2.9 million as of December 31, 2015 and September 30, 2015, respectively, previously reported in the Electric Utility segment is now presented in the Gas Utility segment. |
Maximum | As of | As of | As of | |||||||
Amortization (in years) | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||
Regulatory assets | ||||||||||
Deferred energy and fuel cost adjustments - current (a) (d) | 1 | $ | 16,525 | $ | 24,751 | $ | 25,354 | |||
Deferred gas cost adjustments (a)(d) | 1 | 12,172 | 15,521 | 9,358 | ||||||
Gas price derivatives (a) | 7 | 14,405 | 23,583 | 23,681 | ||||||
AFUDC (b) | 45 | 14,093 | 12,870 | 12,580 | ||||||
Employee benefit plans (c) (e) | 12 | 107,578 | 83,986 | 95,779 | ||||||
Environmental (a) | subject to approval | 1,126 | 1,180 | 1,209 | ||||||
Asset retirement obligations (a) | 44 | 507 | 457 | 675 | ||||||
Loss on reacquired debt (a) | 30 | 15,918 | 3,133 | 3,169 | ||||||
Renewable energy standard adjustment (b) | 5 | 1,694 | 5,068 | 5,102 | ||||||
Flow through accounting (c) | 35 | 33,136 | 29,722 | 28,585 | ||||||
Decommissioning costs (f) | 10 | 17,271 | 18,310 | 16,353 | ||||||
Gas supply contract termination | 5 | 28,164 | — | — | ||||||
Other regulatory assets (a) | 15 | 22,212 | 13,903 | 12,454 | ||||||
$ | 284,801 | $ | 232,484 | $ | 234,299 | |||||
Regulatory liabilities | ||||||||||
Deferred energy and gas costs (a) (d) | 1 | $ | 15,033 | $ | 7,814 | $ | 9,899 | |||
Employee benefit plans (c) (e) | 12 | 65,575 | 47,218 | 53,140 | ||||||
Cost of removal (a) | 44 | 114,616 | 90,045 | 86,946 | ||||||
Other regulatory liabilities (c) | 25 | 8,197 | 7,964 | 7,826 | ||||||
$ | 203,421 | $ | 153,041 | $ | 157,811 |
(a) | Recovery of costs, but we are not allowed a rate of return. |
(b) | In addition to recovery of costs, we are allowed a rate of return. |
(c) | In addition to recovery or repayment of costs, we are allowed a return on a portion of this amount or a reduction in rate base. |
(d) | Our deferred energy, fuel cost, and gas cost adjustments represent the cost of electricity and gas delivered to our electric and gas utility customers that is either higher or lower than current rates and will be recovered or refunded in future rates. Our electric and gas utilities file periodic quarterly, semi-annual, and/or annual filings to recover these costs based on the respective cost mechanisms approved by their applicable state utility commissions. |
(e) | Increase compared to December 31, 2015 was driven by addition of the SourceGas employee benefit plans. |
(f) | South Dakota Electric has approximately $12 million of decommissioning costs associated with the retirements of the Neil Simpson I and Ben French power plants that are allowed a rate of return, in addition to recovery of costs. |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
Materials and supplies | $ | 67,257 | $ | 55,726 | $ | 53,838 | |||||
Fuel - Electric Utilities | 4,282 | 5,567 | 6,139 | ||||||||
Natural gas in storage held for distribution | 41,936 | 25,650 | 30,372 | ||||||||
Total materials, supplies and fuel | $ | 113,475 | $ | 86,943 | $ | 90,349 |
Electric Utilities (b) | Gas Utilities (b) | Power Generation | Total | |||||||||
Ending balance at December 31, 2015 | $ | 256,850 | $ | 94,144 | $ | 8,765 | $ | 359,759 | ||||
Acquisition of SourceGas (a) | — | 940,620 | — | 940,620 | ||||||||
Ending balance at September 30, 2016 | $ | 256,850 | $ | 1,034,764 | $ | 8,765 | $ | 1,300,379 |
(a) | Represents preliminary goodwill recorded with the acquisition of SourceGas. See Note 2 for more information. |
(b) | Goodwill of $6.3 million is now presented in the Gas Utilities segment as a result of the inclusion of Cheyenne Light’s Gas operations in the Gas Utility segment, previously reported in the Electric Utilities segment. See Note 1 for additional details. |
Intangible assets, net beginning balance at December 31, 2015 | $ | 3,380 | |
Additions/amortization, net (a) | 5,564 | ||
Intangible assets, net, ending balance at September 30, 2016 | $ | 8,944 |
(a) | Intangible assets, net acquired from SourceGas are primarily non-regulated customer relationships, and are amortized over their 10-year estimated useful lives. See Note 2 for more information. |
December 31, 2015 | Liabilities Incurred | Liabilities Settled | Accretion | Liabilities Acquired (a) | Revisions to Prior Estimates (b) (c) | September 30, 2016 | |||||||||||||||
Electric Utilities | $ | 4,462 | $ | — | $ | — | $ | 143 | $ | — | $ | 11 | $ | 4,616 | |||||||
Gas Utilities | 136 | — | — | 478 | 22,412 | 6,436 | 29,462 | ||||||||||||||
Mining | 18,633 | — | (15 | ) | 653 | — | (5,603 | ) | 13,668 | ||||||||||||
Oil and Gas | 21,504 | — | (814 | ) | 1,047 | — | 57 | 21,794 | |||||||||||||
Total | $ | 44,735 | $ | — | $ | (829 | ) | $ | 2,321 | $ | 22,412 | $ | 901 | $ | 69,540 |
(a) | Represents our legal liability for retirement of gas pipelines, specifically to purge and cap these lines in accordance with Federal regulations. Approximately $22 million was recorded with the purchase price allocation of SourceGas. |
(b) | The Gas Utilities Revision to Prior Estimates represents our legal liability for retirement of gas pipelines, specifically to purge and cap these lines in accordance with Federal regulations. |
(c) | The Mining Revision to Prior Estimates reflects an approximately 33% reduction in equipment costs as promulgated by the State of Wyoming. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Net income (loss) available for common stock | $ | 14,131 | $ | (9,943 | ) | $ | 54,802 | $ | (17,935 | ) | |||
Weighted average shares - basic | 52,184 | 44,635 | 51,583 | 44,598 | |||||||||
Dilutive effect of: | |||||||||||||
Equity Units (a) | 1,414 | — | 1,191 | — | |||||||||
Equity compensation | 135 | — | 119 | — | |||||||||
Weighted average shares - diluted (b) | 53,733 | 44,635 | 52,893 | 44,598 |
(a) | Calculated using the treasury stock method. |
(b) | Due to our net loss for the three and nine months ended September 30, 2015, potentially dilutive securities were excluded from the diluted loss per share calculation due to their anti-dilutive effect. In computing dilutive net loss per share, 58,380 and 82,130 equity compensation shares were excluded from the computations for the three and nine months ended September 30, 2015, respectively. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||
Equity compensation | 2 | 121 | 4 | 114 | |||||
Anti-dilutive shares | 2 | 121 | 4 | 114 |
September 30, 2016 | December 31, 2015 | September 30, 2015 | ||||||||||||||||
Balance Outstanding | Letters of Credit | Balance Outstanding | Letters of Credit | Balance Outstanding | Letters of Credit | |||||||||||||
Revolving Credit Facility | $ | 75,000 | $ | 30,500 | $ | 76,800 | $ | 33,399 | $ | 117,900 | $ | 30,600 |
As of September 30, 2016 | Covenant Requirement | |||
Consolidated Indebtedness to Capitalization Ratio | 68% | Less than | 70% |
Interest Rate at | ||||||||||
September 30, 2016 | September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||
Corporate | ||||||||||
Remarketable junior subordinated notes due November 1, 2028 | 3.50% | $ | 299,000 | $ | 299,000 | $ | — | |||
Senior unsecured notes due January 15, 2026 | 3.95% | 300,000 | — | — | ||||||
Unamortized discount on Senior unsecured notes due 2026 | (842 | ) | — | — | ||||||
Senior unsecured notes due November 30, 2023 | 4.25% | 525,000 | 525,000 | 525,000 | ||||||
Unamortized discount on Senior unsecured notes due 2023 | (1,685 | ) | (1,890 | ) | (1,959 | ) | ||||
Senior unsecured notes due July 15, 2020 | 5.88% | 200,000 | 200,000 | 200,000 | ||||||
Senior unsecured notes due January 11, 2019 | 2.50% | 250,000 | — | — | ||||||
Unamortized discount on Senior unsecured notes due 2019 | (205 | ) | — | — | ||||||
Senior unsecured notes due January 15, 2027 | 3.15% | 400,000 | — | — | ||||||
Unamortized discount on Senior unsecured notes due 2027 | (202 | ) | — | — | ||||||
Senior unsecured notes, due September 15, 2046 | 4.20% | 300,000 | — | — | ||||||
Unamortized discount on Senior unsecured notes due 2046 | (1,630 | ) | — | — | ||||||
Corporate term loan due August 9, 2019 (a) | 1.46% | 400,000 | — | — | ||||||
Corporate term loan due April 12, 2017 (a) | — | 300,000 | 300,000 | |||||||
Corporate term loan due June 7, 2021 | 2.32% | 25,842 | — | — | ||||||
Total Corporate Debt | 2,695,278 | 1,322,110 | 1,023,041 | |||||||
Electric Utilities | ||||||||||
First Mortgage Bonds due October 20, 2044 | 4.43% | 85,000 | 85,000 | 85,000 | ||||||
First Mortgage Bonds due October 20, 2044 | 4.53% | 75,000 | 75,000 | 75,000 | ||||||
First Mortgage Bonds due August 15, 2032 | 7.23% | 75,000 | 75,000 | 75,000 | ||||||
First Mortgage Bonds due November 1, 2039 | 6.13% | 180,000 | 180,000 | 180,000 | ||||||
Unamortized discount on First Mortgage Bonds due 2039 | (96 | ) | (99 | ) | (99 | ) | ||||
First Mortgage Bonds due November 20, 2037 | 6.67% | 110,000 | 110,000 | 110,000 | ||||||
Industrial development revenue bonds due September 1, 2021 (b) | 0.86% | 7,000 | 7,000 | 7,000 | ||||||
Industrial development revenue bonds due March 1, 2027 (b) | 0.86% | 10,000 | 10,000 | 10,000 | ||||||
Series 94A Debt, variable rate due June 1, 2024 (b) | 1.01% | 2,855 | 2,855 | 2,855 | ||||||
Total Electric Utilities Debt | 544,759 | 544,756 | 544,756 | |||||||
Total long-term debt | 3,240,037 | 1,866,866 | 1,567,797 | |||||||
Less current maturities | 5,743 | — | — | |||||||
Less deferred financing costs (c) | 22,526 | 13,184 | 14,630 | |||||||
Long-term debt, net of current maturities | $ | 3,211,768 | $ | 1,853,682 | $ | 1,553,167 |
(a) | Variable interest rate, based on LIBOR plus a spread. |
(b) | Variable interest rate. |
(c) | Includes deferred financing costs associated with our Revolving Credit Facility of $2.5 million, $1.7 million and $1.9 million as of September 30, 2016, December 31, 2015 and September 30, 2015, respectively. |
Year Ended: | |||
2016 | $ | 1,436 | |
2017 | $ | 5,743 | |
2018 | $ | 5,743 | |
2019 | $ | 655,743 | |
2020 | $ | 205,742 | |
Thereafter | $ | 2,370,290 |
Loan | Interest Rate | Current Maturities at September 30, 2016 | |||
Corporate | |||||
Corporate term loan due June 7, 2021 (a) | 2.32% | 5,743 | |||
Current Maturities of Long-Term Debt | $ | 5,743 |
(a) | Principal payments of $1.4 million are due quarterly. |
• | Repay the $325 million 5.9% senior unsecured notes assumed in the SourceGas Acquisition; |
• | Repay the $95 million, 3.98% senior secured notes assumed in the SourceGas Acquisition; |
• | Repay the remaining $100 million on the $340 million unsecured term loan assumed in the SourceGas Acquisition; |
• | Pay down $100 million of the $500 million three-year unsecured term loan discussed below; |
• | Payment of $29 million for the settlement of $400 million notional interest rate swap; and |
• | Remainder was used for general corporate purposes. |
• | $325 million, 5.9% senior unsecured notes with an original issue date of April 16, 2007, due April 1, 2017. |
• | $95 million, 3.98% senior secured notes with an original issue date of September 29, 2014, due September 29, 2019. |
• | $340 million unsecured corporate term loan due June 30, 2017. Interest under this term loan was LIBOR plus a margin of 0.875%. |
Nine Months Ended September 30, 2016 | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||
(in thousands) | |||||||||
Balance at December 31, 2015 | $ | 1,465,867 | $ | — | $ | 1,465,867 | |||
Net income (loss) | 54,802 | 6,402 | 61,204 | ||||||
Other comprehensive income (loss) | (23,896 | ) | — | (23,896 | ) | ||||
Dividends on common stock | (65,247 | ) | — | (65,247 | ) | ||||
Share-based compensation | 3,822 | — | 3,822 | ||||||
Issuance of common stock | 105,238 | — | 105,238 | ||||||
Dividend reinvestment and stock purchase plan | 2,242 | — | 2,242 | ||||||
Other stock transactions | (24 | ) | — | (24 | ) | ||||
Sale of noncontrolling interest | 61,838 | 115,496 | 177,334 | ||||||
Distribution to noncontrolling interest | — | (4,516 | ) | $ | (4,516 | ) | |||
Balance at September 30, 2016 | $ | 1,604,642 | $ | 117,382 | $ | 1,722,024 |
Nine Months Ended September 30, 2015 | Total Stockholders’ Equity | Noncontrolling Interest | Total Equity | ||||||
(in thousands) | |||||||||
Balance at December 31, 2014 | $ | 1,353,884 | $ | — | $ | 1,353,884 | |||
Net income (loss) | (17,935 | ) | — | (17,935 | ) | ||||
Other comprehensive income (loss) | 433 | — | 433 | ||||||
Dividends on common stock | (54,450 | ) | — | (54,450 | ) | ||||
Share-based compensation | 2,998 | — | 2,998 | ||||||
Issuance of common stock | — | — | — | ||||||
Dividend reinvestment and stock purchase plan | 2,298 | — | 2,298 | ||||||
Other stock transactions | (16 | ) | — | (16 | ) | ||||
Balance at September 30, 2015 | $ | 1,287,212 | $ | — | $ | 1,287,212 |
September 30, 2016 | December 31, 2015 | September 30, 2015 | |||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Current assets | $ | 14,191 | $ | — | $ | — | |||||
Property, plant and equipment of variable interest entities, net | $ | 220,818 | $ | — | $ | — | |||||