x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 | |
For the quarterly period ended June 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 July 31, 2016 | ||
Common stock, $1.00 par value | 52,324,123 | 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 Six Months Ended June 30, 2016 and 2015 | |||
Condensed Consolidated Statements of Comprehensive Income (Loss) - unaudited | |||
Three and Six Months Ended June 30, 2016 and 2015 | |||
Condensed Consolidated Balance Sheets - unaudited | |||
June 30, 2016, December 31, 2015 and June 30, 2015 | |||
Condensed Consolidated Statements of Cash Flows - unaudited | |||
Six Months Ended June 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 |
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 |
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 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) | A program our utility subsidiaries submitted applications for with respective state utility regulators in Iowa, Kansas, Nebraska, South Dakota, Colorado and Wyoming, seeking approval for a 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) |
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 |
Peak View Wind Project | $109 million 60 MW wind generating project for Colorado Electric, adjacent to Busch Ranch wind farm |
PPA | Power Purchase Agreement |
Recourse Leverage Ratio | Any indebtedness outstanding at such time, divided by Capital at such time. Capital being consolidated net-worth plus all recourse indebtedness. |
Revolving Credit Facility | Our $500 million credit facility used to fund working capital needs, letters of credit and other corporate purposes, which matures in 2020. |
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 |
(unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(in thousands, except per share amounts) | ||||||||||||
Revenue | $ | 325,441 | $ | 272,254 | $ | 775,400 | $ | 714,241 | ||||
Operating expenses: | ||||||||||||
Fuel, purchased power and cost of natural gas sold | 84,489 | 73,824 | 256,345 | 279,151 | ||||||||
Operations and maintenance | 112,541 | 90,410 | 219,603 | 183,544 | ||||||||
Depreciation, depletion and amortization | 47,305 | 40,051 | 91,712 | 79,053 | ||||||||
Taxes - property, production and severance | 12,760 | 11,377 | 24,877 | 23,313 | ||||||||
Impairment of long-lived assets | 25,497 | 94,484 | 39,993 | 116,520 | ||||||||
Other operating expenses | 7,551 | 966 | 33,982 | 1,018 | ||||||||
Total operating expenses | 290,143 | 311,112 | 666,512 | 682,599 | ||||||||
Operating income (loss) | 35,298 | (38,858 | ) | 108,888 | 31,642 | |||||||
Other income (expense): | ||||||||||||
Interest charges - | ||||||||||||
Interest expense incurred (including amortization of debt issuance costs, premiums and discounts) | (34,609 | ) | (19,545 | ) | (66,683 | ) | (39,455 | ) | ||||
Allowance for funds used during construction - borrowed | 754 | 207 | 1,255 | 365 | ||||||||
Capitalized interest | 268 | 481 | 503 | 757 | ||||||||
Interest income | 946 | 301 | 1,601 | 749 | ||||||||
Allowance for funds used during construction - equity | 982 | 77 | 1,689 | 133 | ||||||||
Other income (expense), net | (47 | ) | 395 | 641 | 726 | |||||||
Total other income (expense), net | (31,706 | ) | (18,084 | ) | (60,994 | ) | (36,725 | ) | ||||
Income (loss) before earnings (loss) of unconsolidated subsidiaries and income taxes | 3,592 | (56,942 | ) | 47,894 | (5,083 | ) | ||||||
Equity in earnings (loss) of unconsolidated subsidiaries | — | (47 | ) | — | (344 | ) | ||||||
Impairment of equity investments | — | (5,170 | ) | — | (5,170 | ) | ||||||
Income tax benefit (expense) | (309 | ) | 20,317 | (4,561 | ) | 2,605 | ||||||
Net income (loss) | 3,283 | (41,842 | ) | 43,333 | (7,992 | ) | ||||||
Net income attributable to noncontrolling interest | (2,614 | ) | — | (2,662 | ) | — | ||||||
Net income (loss) available for common stock | $ | 669 | $ | (41,842 | ) | $ | 40,671 | $ | (7,992 | ) | ||
Earnings (loss) per share of common stock: | ||||||||||||
Earnings (loss) per share, Basic | $ | 0.01 | $ | (0.94 | ) | $ | 0.79 | $ | (0.18 | ) | ||
Earnings (loss) per share, Diluted | $ | 0.01 | $ | (0.94 | ) | $ | 0.78 | $ | (0.18 | ) | ||
Weighted average common shares outstanding: | ||||||||||||
Basic | 51,514 | 44,617 | 51,279 | 44,579 | ||||||||
Diluted | 52,986 | 44,617 | 52,454 | 44,579 | ||||||||
Dividends declared per share of common stock | $ | 0.420 | $ | 0.405 | $ | 0.840 | $ | 0.810 |
(unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(in thousands) | ||||||||||||
Net income (loss) | $ | 3,283 | $ | (41,842 | ) | $ | 43,333 | $ | (7,992 | ) | ||
Other comprehensive income (loss), net of tax: | ||||||||||||
Fair value adjustments on derivatives designated as cash flow hedges (net of tax (expense) benefit of $5,346 and $1,171 for the three months ended 2016 and 2015 and $10,865 and $128 for the six months ended 2016 and 2015, respectively) | (9,720 | ) | (1,966 | ) | (20,066 | ) | (130 | ) | ||||
Reclassification adjustments for cash flow hedges settled and included in net income (loss) (net of tax (expense) benefit of $882 and $735 for the three months ended 2016 and 2015 and $1,884 and $1,989 for the six months ended 2016 and 2015, respectively) | (1,504 | ) | (1,261 | ) | (3,214 | ) | (2,502 | ) | ||||
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 $15 for the six 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 $38 and $38 for the six months ended 2016 and 2015, respectively) | (36 | ) | (36 | ) | (72 | ) | (72 | ) | ||||
Reclassification adjustments of benefit plan liability - net gain (loss) (net of tax (expense) benefit of $(173) and $(247) for the three months ended 2016 and 2015 and $(346) and $(494) for the six months ended 2016 and 2015, respectively) | 321 | 458 | 643 | 916 | ||||||||
Other comprehensive income (loss), net of tax | (10,939 | ) | (2,805 | ) | (22,709 | ) | (1,815 | ) | ||||
Comprehensive income (loss) | (7,656 | ) | (44,647 | ) | 20,624 | (9,807 | ) | |||||
Less: comprehensive income attributable to noncontrolling interest | (2,614 | ) | — | (2,662 | ) | — | ||||||
Comprehensive income (loss) available for common stock | $ | (10,270 | ) | $ | (44,647 | ) | $ | 17,962 | $ | (9,807 | ) |
(unaudited) | As of | ||||||||||
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
(in thousands) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 116,805 | $ | 456,535 | $ | 87,210 | |||||
Restricted cash and equivalents | 1,975 | 1,697 | 2,316 | ||||||||
Accounts receivable, net | 150,227 | 147,486 | 123,661 | ||||||||
Materials, supplies and fuel | 85,189 | 86,943 | 73,749 | ||||||||
Derivative assets, current | 4,030 | — | — | ||||||||
Income tax receivable, net | — | 368 | 770 | ||||||||
Deferred income tax assets, net, current | — | — | 52,394 | ||||||||
Regulatory assets, current | 54,856 | 57,359 | 47,157 | ||||||||
Other current assets | 30,652 | 71,763 | 51,315 | ||||||||
Total current assets | 443,734 | 822,151 | 438,572 | ||||||||
Investments | 12,363 | 11,985 | 12,098 | ||||||||
Property, plant and equipment | 6,209,816 | 4,976,778 | 4,726,478 | ||||||||
Less: accumulated depreciation and depletion | (1,819,886 | ) | (1,717,684 | ) | (1,522,969 | ) | |||||
Total property, plant and equipment, net | 4,389,930 | 3,259,094 | 3,203,509 | ||||||||
Other assets: | |||||||||||
Goodwill | 1,303,453 | 359,759 | 353,396 | ||||||||
Intangible assets, net | 9,164 | 3,380 | 3,211 | ||||||||
Regulatory assets, non-current | 220,556 | 175,125 | 180,815 | ||||||||
Derivative assets, non-current | 226 | 3,441 | — | ||||||||
Other assets, non-current | 15,438 | 7,382 | 17,313 | ||||||||
Total other assets, non-current | 1,548,837 | 549,087 | 554,735 | ||||||||
TOTAL ASSETS | $ | 6,394,864 | $ | 4,642,317 | $ | 4,208,914 |
(unaudited) | As of | ||||||||||
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
(in thousands, except share amounts) | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 170,149 | $ | 105,468 | $ | 78,021 | |||||
Accrued liabilities | 218,250 | 232,061 | 160,528 | ||||||||
Derivative liabilities, current | 28,855 | 2,835 | 3,289 | ||||||||
Accrued income taxes, net | 10,624 | — | — | ||||||||
Regulatory liabilities, current | 34,275 | 4,865 | 10,910 | ||||||||
Notes payable | 75,000 | 76,800 | 105,760 | ||||||||
Current maturities of long-term debt | 930,743 | — | — | ||||||||
Total current liabilities | 1,467,896 | 422,029 | 358,508 | ||||||||
Long-term debt | 2,221,347 | 1,853,682 | 1,556,370 | ||||||||
Deferred credits and other liabilities: | |||||||||||
Deferred income tax liabilities, net, non-current | 530,746 | 450,579 | 510,435 | ||||||||
Derivative liabilities, non-current | 231 | 156 | 1,433 | ||||||||
Regulatory liabilities, non-current | 195,166 | 148,176 | 150,835 | ||||||||
Benefit plan liabilities | 173,347 | 146,459 | 165,791 | ||||||||
Other deferred credits and other liabilities | 122,015 | 155,369 | 154,656 | ||||||||
Total deferred credits and other liabilities | 1,021,505 | 900,739 | 983,150 | ||||||||
Commitments and contingencies (See Notes 9, 10, 11, 17, 18) | |||||||||||
Redeemable noncontrolling interest | 4,171 | — | — | ||||||||
Equity: | |||||||||||
Stockholders’ equity — | |||||||||||
Common stock $1 par value; 100,000,000 shares authorized; issued 52,299,075; 51,231,861; and 44,871,771 shares, respectively | 52,299 | 51,232 | 44,872 | ||||||||
Additional paid-in capital | 1,072,927 | 953,044 | 751,679 | ||||||||
Retained earnings | 469,940 | 472,534 | 532,965 | ||||||||
Treasury stock, at cost – 18,900; 39,720; and 35,855 shares, respectively | (975 | ) | (1,888 | ) | (1,771 | ) | |||||
Accumulated other comprehensive income (loss) | (31,764 | ) | (9,055 | ) | (16,859 | ) | |||||
Total stockholders’ equity | 1,562,427 | 1,465,867 | 1,310,886 | ||||||||
Noncontrolling interest | 117,518 | — | — | ||||||||
Total equity | 1,679,945 | 1,465,867 | 1,310,886 | ||||||||
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND TOTAL EQUITY | $ | 6,394,864 | $ | 4,642,317 | $ | 4,208,914 |
(unaudited) | Six Months Ended June 30, | |||||
2016 | 2015 | |||||
Operating activities: | (in thousands) | |||||
Net income (loss) available for common stock | $ | 40,671 | $ | (7,992 | ) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation, depletion and amortization | 91,712 | 79,053 | ||||
Deferred financing cost amortization | 2,857 | 1,119 | ||||
Impairment of long-lived assets | 39,993 | 121,690 | ||||
Derivative fair value adjustments | (4,617 | ) | (5,249 | ) | ||
Stock compensation | 7,054 | 3,098 | ||||
Deferred income taxes | 32,606 | (6,277 | ) | |||
Employee benefit plans | 7,782 | 10,467 | ||||
Other adjustments, net | (1,715 | ) | 3,720 | |||
Changes in certain operating assets and liabilities: | ||||||
Materials, supplies and fuel | 17,722 | 20,218 | ||||
Accounts receivable, unbilled revenues and other operating assets | 82,361 | 63,172 | ||||
Accounts payable and other operating liabilities | (85,423 | ) | (66,294 | ) | ||
Regulatory assets - current | 1,862 | 27,178 | ||||
Regulatory liabilities - current | 2,994 | 7,290 | ||||
Contributions to defined benefit pension plans | (10,200 | ) | — | |||
Other operating activities, net | (2,884 | ) | 3,215 | |||
Net cash provided by (used in) operating activities | 222,775 | 254,408 | ||||
Investing activities: | ||||||
Property, plant and equipment additions | (199,854 | ) | (206,472 | ) | ||
Acquisition, net of long term debt assumed | (1,124,238 | ) | — | |||
Other investing activities | (649 | ) | (652 | ) | ||
Net cash provided by (used in) investing activities | (1,324,741 | ) | (207,124 | ) | ||
Financing activities: | ||||||
Dividends paid on common stock | (43,265 | ) | (36,292 | ) | ||
Common stock issued | 57,490 | 1,702 | ||||
Sale of noncontrolling interest | 216,370 | — | ||||
Short-term borrowings - issuances | 208,100 | 154,460 | ||||
Short-term borrowings - repayments | (209,900 | ) | (123,700 | ) | ||
Long-term debt - issuances | 574,672 | 300,000 | ||||
Long-term debt - repayments | (41,436 | ) | (275,000 | ) | ||
Other financing activities | 205 | (2,462 | ) | |||
Net cash provided by (used in) financing activities | 762,236 | 18,708 | ||||
Net change in cash and cash equivalents | (339,730 | ) | 65,992 | |||
Cash and cash equivalents, beginning of period | 456,535 | 21,218 | ||||
Cash and cash equivalents, end of period | $ | 116,805 | $ | 87,210 |
For the Three Months Ended June 30, 2015 | For the Six Months Ended June 30, 2015 | ||||||||||||||||||
(in thousands) | As Previously Reported | Presentation Reclassification | As Currently Reported | As Previously Reported | Presentation Reclassification | As Currently Reported | |||||||||||||
Utilities - operations and maintenance | $ | 67,264 | $ | (67,264 | ) | $ | — | $ | 138,348 | $ | (138,348 | ) | $ | — | |||||
Non-regulated energy operations and maintenance | $ | 23,146 | $ | (23,146 | ) | $ | — | $ | 45,196 | $ | (45,196 | ) | $ | — | |||||
Operations and maintenance | $ | — | $ | 90,410 | $ | 90,410 | $ | — | $ | 183,544 | $ | 183,544 |
(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 | $ | 111,629 | |||
Property, plant & equipment, net | 1,047,584 | ||||
Goodwill | 943,694 | ||||
Deferred charges and other assets, excluding goodwill | 132,534 | ||||
Current liabilities | (167,613 | ) | |||
Long-term debt | (764,337 | ) | |||
Deferred credits and other liabilities | (179,253 | ) | |||
Total preliminary consideration paid, net of working-capital adjustment received | $ | 1,124,238 |
Pro Forma Results | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(in thousands, except per share amounts) | |||||||||||||
Revenue | $ | 325,441 | $ | 347,085 | $ | 854,362 | $ | 975,549 | |||||
Net income (loss) available for common stock | $ | 4,658 | $ | (49,751 | ) | $ | 72,978 | $ | 306 | ||||
Earnings (loss) per share, Basic | $ | 0.09 | $ | (0.98 | ) | $ | 1.42 | $ | 0.01 | ||||
Earnings (loss) per share, Diluted | $ | 0.09 | $ | (0.98 | ) | $ | 1.39 | $ | 0.01 |
Three Months Ended June 30, 2016 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric | $ | 158,560 | $ | 2,921 | $ | 19,229 | ||||||
Gas | 153,767 | (1,806 | ) | 987 | ||||||||
Power Generation (e) | 1,546 | 20,168 | 5,683 | |||||||||
Mining | 3,922 | 7,125 | 724 | |||||||||
Oil and Gas (a) | 7,646 | — | (19,424 | ) | ||||||||
Corporate activities (c) | — | — | (6,530 | ) | ||||||||
Inter-company eliminations | — | (28,408 | ) | — | ||||||||
Total | $ | 325,441 | $ | — | $ | 669 |
Three Months Ended June 30, 2015 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric (d) | $ | 161,514 | $ | 2,509 | 17,632 | |||||||
Gas (d) | 87,663 | — | 3,235 | |||||||||
Power Generation | 1,706 | 20,603 | 7,549 | |||||||||
Mining | 9,052 | 7,673 | 3,049 | |||||||||
Oil and Gas (a) (b) | 12,319 | — | (71,195 | ) | ||||||||
Corporate activities | — | — | (2,112 | ) | ||||||||
Inter-company eliminations | — | (30,785 | ) | — | ||||||||
Total | $ | 272,254 | $ | — | $ | (41,842 | ) |
Six Months Ended June 30, 2016 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric | $ | 322,091 | $ | 6,666 | $ | 38,444 | ||||||
Gas | 422,434 | — | 32,914 | |||||||||
Power Generation (e) | 3,398 | 41,624 | 14,265 | |||||||||
Mining | 11,456 | 15,873 | 3,662 | |||||||||
Oil and Gas (a) | 16,021 | — | (26,448 | ) | ||||||||
Corporate activities (c) | — | — | (22,166 | ) | ||||||||
Inter-company eliminations | — | (64,163 | ) | — | ||||||||
Total | $ | 775,400 | $ | — | $ | 40,671 |
Six Months Ended June 30, 2015 | External Operating Revenue | Inter-company Operating Revenue | Net Income (Loss) Available for Common Stock | |||||||||
Segment: | ||||||||||||
Electric (d) | 328,007 | 5,933 | 35,185 | |||||||||
Gas (d) | 341,795 | — | 26,823 | |||||||||
Power Generation | 3,659 | 41,324 | 15,694 | |||||||||
Mining | 17,194 | 15,465 | 6,059 | |||||||||
Oil and Gas (a) (b) | 23,586 | — | (90,310 | ) | ||||||||
Corporate activities | — | — | (1,443 | ) | ||||||||
Inter-company eliminations | — | (62,722 | ) | — | ||||||||
Total | $ | 714,241 | $ | — | $ | (7,992 | ) |
(a) | Net income (loss) available for common stock for the three and six months ended June 30, 2016 and June 30, 2015 includes non-cash after-tax impairments of oil and gas properties of $16 million and $25 million and $63 million and $77 million, respectively. See Note 19 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(b) | Net income (loss) available for common stock for the three and six months ended June 30, 2015 included a non-cash after-tax impairment to equity investments of $3.4 million. See Note 19 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 six months ended June 30, 2016 included incremental, non-recurring acquisition costs, net of tax of $4.1 million and $20 million, respectively, and after-tax internal labor costs attributable to the acquisition of $2.0 million and $5.7 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 six months ended June 30, 2015 have been reclassified from the Electric Utility segment to the Gas Utility segment. Revenue of $8.2 million and $25 million, respectively, and Net income of $0.1 million and $1.4 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 $2.6 million for the three and six months ended June 30, 2016. |
Total Assets (net of inter-company eliminations) as of: | June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||
Segment: | |||||||||||
Electric (a) (b) | $ | 2,777,142 | $ | 2,720,004 | $ | 2,732,663 | |||||
Gas (b) | 3,142,293 | 999,778 | 920,624 | ||||||||
Power Generation (a) | 80,360 | 60,864 | 72,270 | ||||||||
Mining | 71,319 | 76,357 | 76,079 | ||||||||
Oil and Gas (c) | 171,228 | 208,956 | 275,068 | ||||||||
Corporate activities (d) | 152,522 | 576,358 | 132,210 | ||||||||
Total assets | $ | 6,394,864 | $ | 4,642,317 | $ | 4,208,914 |
(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 six months ended June 30, 2015 have been reclassified from the Electric Utility segment to the Gas Utility segment. Assets of $135 million and $119 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 June 30, 2015. |
(c) | As a result of continued low commodity prices and the transition of Oil and Gas to support Cost of Service Gas programs, we recorded non-cash impairments of $40 million for the six months ended June 30, 2016, $250 million for the year ended December 31, 2015, and $117 million for the six months ended June 30, 2015. See Note 19 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. |
Accounts | Unbilled | Less Allowance for | Accounts | |||||||||
June 30, 2016 | Receivable, Trade | Revenue | Doubtful Accounts | Receivable, net | ||||||||
Electric Utilities | $ | 40,991 | $ | 34,174 | $ | (716 | ) | $ | 74,449 | |||
Gas Utilities | 47,600 | 23,124 | (2,997 | ) | 67,727 | |||||||
Power Generation | 1,229 | — | — | 1,229 | ||||||||
Mining | 1,114 | — | — | 1,114 | ||||||||
Oil and Gas | 3,094 | — | (13 | ) | 3,081 | |||||||
Corporate | 2,627 | — | — | 2,627 | ||||||||
Total | $ | 96,655 | $ | 57,298 | $ | (3,726 | ) | $ | 150,227 |
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 | |||||||||
June 30, 2015 | Receivable, Trade | Revenue | Doubtful Accounts | Receivable, net | ||||||||
Electric Utilities (a) | $ | 44,126 | $ | 32,660 | $ | (746 | ) | $ | 76,040 | |||
Gas Utilities (a) | 27,890 | 10,259 | (1,198 | ) | 36,951 | |||||||
Power Generation | 1,199 | — | — | 1,199 | ||||||||
Mining | 3,402 | — | — | 3,402 | ||||||||
Oil and Gas | 5,099 | — | (13 | ) | 5,086 | |||||||
Corporate | 983 | — | — | 983 | ||||||||
Total | $ | 82,699 | $ | 42,919 | $ | (1,957 | ) | $ | 123,661 |
(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 $3.1 million as of December 31, 2015 and June 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) | June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||
Regulatory assets | ||||||||||
Deferred energy and fuel cost adjustments - current (a) (d) | 1 | $ | 20,603 | $ | 24,751 | $ | 26,862 | |||
Deferred gas cost adjustments (a)(d) | 1 | 12,122 | 15,521 | 5,588 | ||||||
Gas price derivatives (a) | 7 | 11,515 | 23,583 | 17,907 | ||||||
AFUDC (b) | 45 | 13,879 | 12,870 | 12,321 | ||||||
Employee benefit plans (c) (e) | 12 | 109,522 | 83,986 | 96,734 | ||||||
Environmental (a) | subject to approval | 1,144 | 1,180 | 1,224 | ||||||
Asset retirement obligations (a) | 44 | 505 | 457 | 3,242 | ||||||
Bond issue cost (a) | 22 | 3,061 | 3,133 | 3,204 | ||||||
Renewable energy standard adjustment (b) | 5 | 2,679 | 5,068 | 5,629 | ||||||
Flow through accounting (c) | 35 | 31,554 | 29,722 | 27,861 | ||||||
Decommissioning costs (f) | 10 | 18,399 | 18,310 | 14,845 | ||||||
Gas supply contract termination | 5 | 28,385 | — | — | ||||||
Other regulatory assets (a) | 15 | 22,044 | 13,903 | 12,555 | ||||||
$ | 275,412 | $ | 232,484 | $ | 227,972 | |||||
Regulatory liabilities | ||||||||||
Deferred energy and gas costs (a) (d) | 1 | $ | 32,868 | $ | 7,814 | $ | 16,114 | |||
Employee benefit plans (c) (e) | 12 | 62,712 | 47,218 | 53,163 | ||||||
Cost of removal (a) | 44 | 126,002 | 90,045 | 84,118 | ||||||
Other regulatory liabilities (c) | 25 | 7,859 | 7,964 | 8,350 | ||||||
$ | 229,441 | $ | 153,041 | $ | 161,745 |
(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 $13 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. |
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
Materials and supplies | $ | 67,440 | $ | 55,726 | $ | 54,646 | |||||
Fuel - Electric Utilities | 4,659 | 5,567 | 6,644 | ||||||||
Natural gas in storage held for distribution | 13,090 | 25,650 | 12,459 | ||||||||
Total materials, supplies and fuel | $ | 85,189 | $ | 86,943 | $ | 73,749 |
Electric Utilities (b) | Gas Utilities (b) | Power Generation | Total | |||||||||
Ending balance at December 31, 2015 | $ | 250,487 | $ | 100,507 | $ | 8,765 | 359,759 | |||||
Acquisition of SourceGas (a) | — | 943,694 | — | 943,694 | ||||||||
Ending balance at June 30, 2016 | $ | 250,487 | $ | 1,044,201 | $ | 8,765 | $ | 1,303,453 |
(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 December 31, 2015 | $ | 3,380 | |
Additions, net (a) | 6,225 | ||
Amortization expense | (441 | ) | |
Intangible assets, net, ending balance at June 30, 2016 | $ | 9,164 |
(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. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Net income (loss) available for common stock | $ | 669 | $ | (41,842 | ) | $ | 40,671 | $ | (7,992 | ) | |||
Weighted average shares - basic | 51,514 | 44,617 | 51,279 | 44,579 | |||||||||
Dilutive effect of: | |||||||||||||
Equity Units (a) | 1,362 | — | 1,068 | — | |||||||||
Equity compensation | 110 | — | 107 | — | |||||||||
Weighted average shares - diluted (b) | 52,986 | 44,617 | 52,454 | 44,579 |
(a) | Calculated using the treasury stock method. |
(b) | Due to our net loss for the three and six months ended June 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, 83,613 and 101,146 equity compensation shares were excluded from the computations for the three and six months ended June 30, 2015, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||
Equity compensation | 4 | 119 | 10 | 113 | |||||
Anti-dilutive shares | 4 | 119 | 10 | 113 |
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||||||
Balance Outstanding | Letters of Credit | Balance Outstanding | Letters of Credit | Balance Outstanding | Letters of Credit | |||||||||||||
Revolving Credit Facility | $ | 75,000 | $ | 24,700 | $ | 76,800 | $ | 33,399 | $ | 105,760 | $ | 23,100 |
As of June 30, 2016 | Covenant Requirement | |||
Recourse Leverage Ratio | 69% | Less than | 75% |
Interest Rate at | ||||||||||
June 30, 2016 | June 30, 2016 | December 31, 2015 | June 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 | (867 | ) | — | — | ||||||
Senior unsecured notes due November 30, 2023 | 4.25% | 525,000 | 525,000 | 525,000 | ||||||
Unamortized discount on Senior unsecured notes due 2023 | (1,754 | ) | (1,890 | ) | (2,027 | ) | ||||
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 | (243 | ) | — | — | ||||||
Corporate term loan due June 30, 2017 (a) (b) | 1.38% | 340,000 | — | — | ||||||
Corporate term loan due April 12, 2017 (b) | 1.40% | 260,000 | 300,000 | 300,000 | ||||||
Corporate term loan due June 7, 2021 | 2.32% | 27,278 | — | — | ||||||
Total Corporate Debt | 2,198,414 | 1,322,110 | 1,022,973 | |||||||
Gas Utilities | ||||||||||
Senior secured notes due September 29, 2019 (a) (e) (f) | 3.98% | 99,272 | — | — | ||||||
Senior unsecured notes due April 1, 2017 (a) | 5.90% | 325,000 | — | — | ||||||
Unamortized discount on Senior unsecured notes due 2017 | (77 | ) | — | — | ||||||
424,195 | — | — | ||||||||
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 | (97 | ) | (99 | ) | (101 | ) | ||||
First Mortgage Bonds due November 20, 2037 | 6.67% | 110,000 | 110,000 | 110,000 | ||||||
Industrial development revenue bonds due September 1, 2021 (c) | 0.43% | 7,000 | 7,000 | 7,000 | ||||||
Industrial development revenue bonds due March 1, 2027 (c) | 0.43% | 10,000 | 10,000 | 10,000 | ||||||
Series 94A Debt, variable rate due June 1, 2024 (c) | 0.75% | 2,855 | 2,855 | 2,855 | ||||||
Total Electric Utilities Debt | 544,758 | 544,756 | 544,754 | |||||||
Total long-term debt | 3,167,367 | 1,866,866 | 1,567,727 | |||||||
Less current maturities | 930,743 | — | — | |||||||
Less deferred financing costs (d) | 15,277 | 13,184 | 11,357 | |||||||
Long-term debt, net of current maturities | $ | 2,221,347 | $ | 1,853,682 | $ | 1,556,370 |
(a) | Long-term debt assumed with the SourceGas Acquisition. |
(b) | Variable interest rate, based on LIBOR plus a spread. |
(c) | Variable interest rate. |
(d) | Includes deferred financing costs associated with our Revolving Credit Facility of $1.5 million, $1.7 million and $1.9 million as of June 30, 2016, December 31, 2015 and June 30, 2015, respectively. |
(e) | Currently unsecured, required to be ratably secured if Black Hills Gas Holdings incurs other secured indebtedness. |
(f) | Includes a $4.2 million fair value adjustment from the SourceGas purchase price allocation. |
Year Ended: | |||
2016 | $ | 2,871 | |
2017 | $ | 930,743 | |
2018 | $ | 5,743 | |
2019 | $ | 355,015 | |
2020 | $ | 205,742 | |
Thereafter | $ | 1,670,291 |
Loan | Interest Rate | Current Maturities at June 30, 2016 | |||
Corporate | |||||
Corporate term loan due April 12, 2017 | 1.40% | $ | 260,000 | ||
Corporate term loan due June 7, 2021 (a) | 2.32% | 5,743 | |||
Corporate term loan due June 30, 2017 | 1.38% | 340,000 | |||
605,743 | |||||
Gas Utilities | |||||
Senior unsecured notes due April 1, 2017 | 5.90% | 325,000 | |||
Current Maturities of Long-Term Debt | $ | 930,743 |
(a) | Principal payments of $1.4 million are due quarterly. |
• | $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 is LIBOR plus a margin of 0.875%. |
Six Months Ended June 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) | 40,671 | 2,632 | 43,303 | ||||||
Other comprehensive income (loss) | (22,709 | ) | — | (22,709 | ) | ||||
Dividends on common stock | (43,270 | ) | — | (43,270 | ) | ||||
Share-based compensation | 2,192 | — | 2,192 | ||||||
Issuance of common stock | 55,802 | — | 55,802 | ||||||
Dividend reinvestment and stock purchase plan | 1,478 | — | 1,478 | ||||||
Other stock transactions | (20 | ) | — | (20 | ) | ||||
Sale of noncontrolling interest | 62,416 | 114,886 | 177,302 | ||||||
Balance at June 30, 2016 | $ | 1,562,427 | $ | 117,518 | $ | 1,679,945 |
Six Months Ended June 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) | (7,992 | ) | — | (7,992 | ) | ||||
Other comprehensive income (loss) | (1,815 | ) | — | (1,815 | ) | ||||
Dividends on common stock | (36,292 | ) | — | (36,292 | ) | ||||
Share-based compensation | 1,601 | — | 1,601 | ||||||
Issuance of common stock | — | — | — | ||||||
Dividend reinvestment and stock purchase plan | 1,516 | — | 1,516 | ||||||
Other stock transactions | (16 | ) | — | (16 | ) | ||||
Balance at June 30, 2015 | $ | 1,310,886 | $ | — | $ | 1,310,886 |
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
(in thousands) | |||||||||||
Assets | |||||||||||
Current assets | $ | 12,681 | $ | — | $ | — | |||||
Property, plant and equipment of variable interest entities, net | $ | 224,128 | $ | — | $ | — | |||||
Liabilities | |||||||||||
Current liabilities | $ | 4,174 | $ | — | $ | — |
• | Commodity price risk associated with our natural long position in crude oil and natural gas reserves and production; our retail natural gas marketing activities; and our fuel procurement for certain of our gas-fired generation assets; and |
• | Interest rate risk associated with our variable-rate debt and anticipated future refinancings. |
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||
Crude Oil Futures | Natural Gas Futures and Swaps | Crude Oil Futures | Natural Gas Futures and Swaps | Crude Oil Futures | Natural Gas Futures and Swaps | |||||||||
Notional (a) | 210,000 | 2,530,000 | 198,000 | 4,392,500 | 276,000 | 4,187,500 | ||||||||
Maximum terms in months (b) | 30 | 18 | 24 | 24 | 18 | 18 |
(a) | Crude oil in Bbls, natural gas in MMBtus. |
(b) | Term reflects the maximum forward period hedged. |
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||
Notional (MMBtus) | Maximum Term (months) (a) | Notional (MMBtus) | Maximum Term (months) (a) | Notional (MMBtus) | Maximum Term (months) (a) | |||||||||
Natural gas futures purchased | 18,080,000 | 54 | 20,580,000 | 60 | 17,270,000 | 66 | ||||||||
Natural gas options purchased | 3,770,000 | 20 | 2,620,000 | 3 | 3,980,000 | 9 | ||||||||
Natural gas basis swaps purchased | 15,320,000 | 54 | 18,150,000 | 60 | 14,445,000 | 54 | ||||||||
Natural gas fixed for float swaps, net(b) | 5,029,500 | 23 | — | 0 | — | 0 | ||||||||
Natural gas physical commitments, net | 1,666,800 | 9 | — | 0 | — | 0 |
(a) | Term reflects the maximum forward period hedged. |
(b) | 2,974,500 MMBtus were designated as cash flow hedges for the natural gas fixed for float swaps purchased. |
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||||||||
Interest Rate Swaps (a) | Interest Rate Swaps (a) | Interest Rate Swaps (b) | Interest Rate Swaps (a) | Interest Rate Swaps (b) | Interest Rate Swaps (b) | |||||||||||||||
Notional | $ | 150,000 | $ | 250,000 | $ | 75,000 | $ | 250,000 | $ | 75,000 | $ | 75,000 | ||||||||
Weighted average fixed interest rate | 2.09 | % | 2.29 | % | 4.97 | % | 2.29 | % | 4.97 | % | 4.97 | % | ||||||||
Maximum terms in years | 0.83 | 0.83 | 0.50 | 1.33 | 1.00 | 1.50 | ||||||||||||||
Derivative assets, non-current | $ | — | $ | — | $ | — | $ | 3,441 | $ | — | $ | — | ||||||||
Derivative liabilities, current | $ | 8,553 | $ | 18,500 | $ | 1,505 | $ | — | $ | 2,835 | $ | 3,289 | ||||||||
Derivative liabilities, non-current | $ | — | $ | — | $ | — | $ | — | $ | 156 | $ | 1,433 |
(a) | These swaps are designated as cash flow hedges of anticipated debt refinancings. |
(b) | These swaps are designated to borrowings on our Revolving Credit Facility and are priced using three-month LIBOR, matching the floating portion of the related borrowings. |
Three Months Ended June 30, 2016 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | Location of Reclassifications from AOCI into Income | Amount of (Gain)/Loss Reclassified from AOCI into Income (Settlements) | Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Interest rate swaps | $ | (12,614 | ) | Interest expense | $ | 840 | Interest expense | $ | — | |||||||
Commodity derivatives | (2,847 | ) | Revenue | (3,287 | ) | Revenue | — | |||||||||
Commodity derivatives | 395 | Fuel, purchased power and cost of natural gas sold | 61 | Fuel, purchased power and cost of natural gas sold | — | |||||||||||
Total | $ | (15,066 | ) | $ | (2,386 | ) | $ | — |
Three Months Ended June 30, 2015 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | Location of Reclassifications from AOCI into Income | Amount of (Gain)/Loss Reclassified from AOCI into Income (Settlements) | Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Interest rate swaps | $ | (892 | ) | Interest expense | $ | (1,670 | ) | Interest expense | $ | — | ||||||
Commodity derivatives | (2,245 | ) | Revenue | 3,666 | Revenue | — | ||||||||||
Total | $ | (3,137 | ) | $ | 1,996 | $ | — |
Six Months Ended June 30, 2016 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | Location of Reclassifications from AOCI into Income | Amount of (Gain)/Loss Reclassified from AOCI into Income (Settlements) | Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Interest rate swaps | $ | (30,665 | ) | Interest expense | $ | 1,690 | Interest expense | $ | — | |||||||
Commodity derivatives | (1,039 | ) | Revenue | (6,939 | ) | Revenue | — | |||||||||
Commodity derivatives | 773 | Fuel, purchased power and cost of natural gas sold | 151 | Fuel, purchased power and cost of natural gas sold | — | |||||||||||
Total | $ | (30,931 | ) | $ | (5,098 | ) | $ | — |
Six Months Ended June 30, 2015 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | Location of Reclassifications from AOCI into Income | Amount of (Gain)/Loss Reclassified from AOCI into Income (Settlements) | Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | |||||||||||
Interest rate swaps | $ | (1,778 | ) | Interest expense | $ | (3,107 | ) | Interest expense | $ | — | ||||||
Commodity derivatives | 1,520 | Revenue | 7,598 | Revenue | — | |||||||||||
Total | $ | (258 | ) | $ | 4,491 | $ | — |
• | The commodity contracts for our Oil and Gas segment are valued using the market approach and include exchange-traded futures and basis swaps. Fair value was derived using exchange quoted settlement prices from third party brokers for similar instruments as to quantity and timing. The prices are then validated through third-party sources and therefore support Level 2 disclosure. |
• | The commodity contracts for our Utilities Segments, valued using the market approach, include exchange-traded futures, options, basis swaps and over-the-counter swaps (Level 2) for natural gas contracts. For exchange-traded futures, options and basis swap assets and liabilities, fair value was derived using broker quotes validated by the exchange settlement pricing for the applicable contract. For over-the-counter instruments, the fair value is obtained by utilizing a nationally recognized service that obtains observable inputs to compute the fair value, which we validate by comparing our valuation with the counterparty. The fair value of these swaps includes a CVA component based on the credit spreads of the counterparties when we are in an unrealized gain position or on our own credit spread when we are in an unrealized loss position. |
• | The interest rate swaps are valued using the market approach. We establish fair value by obtaining price quotes directly from the counterparty which are based on the floating three-month LIBOR curve for the term of the contract. The fair value obtained from the counterparty is then validated by utilizing a nationally recognized service that obtains observable inputs to compute fair value for the same instrument. In addition, the fair value for the interest rate swap derivatives includes a CVA component. The CVA considers the fair value of the interest rate swap and the probability of default based on the life of the contract. For the probability of a default component, we utilize observable inputs supporting a Level 2 disclosure by using the credit default spread of the obligor, if available, or a generic credit default spread curve that takes into account our credit ratings, and the credit rating of our counterparty. |
As of June 30, 2016 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Cash Collateral and Counterparty Netting | Total | ||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives — Oil and Gas | ||||||||||||||||
Futures -- Oil | — | 1,950 | — | (816 | ) | 1,134 | ||||||||||
Options -- Gas | — | — | — | — | — | |||||||||||
Basis Swaps -- Gas | — | 798 | — | (334 | ) | 464 | ||||||||||
Commodity derivatives — Utilities | — | 6,833 | — | (4,175 | ) | 2,658 | ||||||||||
Interest Rate Swaps | — | — | — | — | — | |||||||||||
Total | $ | — | $ | 9,581 | $ | — | $ | (5,325 | ) | $ | 4,256 | |||||
Liabilities: | ||||||||||||||||
Commodity derivatives — Oil and Gas | ||||||||||||||||
Futures -- Oil | — | 157 | — | — | 157 | |||||||||||
Options -- Gas | — | — | — | — | — | |||||||||||
Basis Swaps -- Gas | — | 71 | — | — | 71 | |||||||||||
Commodity derivatives — Utilities | — | 14,727 | — | (14,427 | ) | 300 | ||||||||||
Interest rate swaps | — | 28,558 | — | — | 28,558 | |||||||||||
Total | $ | — | $ | 43,513 | $ | — | $ | (14,427 | ) | $ | 29,086 |
As of December 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Cash Collateral and Counterparty Netting | Total | ||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives — Oil and Gas | ||||||||||||||||
Futures -- Oil | — | 6,309 | — | (6,309 | ) | — | ||||||||||
Options -- Gas | — | — | — | — | — | |||||||||||
Basis Swaps -- Gas | — | 4,335 | — | (4,335 | ) | — | ||||||||||
Commodity derivatives —Utilities | — | 2,293 | — | (2,293 | ) | — | ||||||||||
Interest Rate Swaps | — | 3,441 | — | — | 3,441 | |||||||||||
Total | $ | — | $ | 16,378 | $ | — | $ | (12,937 | ) | $ | 3,441 | |||||
Liabilities: | ||||||||||||||||
Commodity derivatives — Oil and Gas | ||||||||||||||||
Futures -- Oil | — | — | — | — | — | |||||||||||
Options -- Gas | — | — | — | — | — | |||||||||||
Basis Swaps -- Gas | — | 556 | — | (556 | ) | — | ||||||||||
Commodity derivatives — Utilities | — | 24,585 | — | (24,585 | ) | — | ||||||||||
Interest rate swaps | — | 2,991 | — | — | 2,991 | |||||||||||
Total | $ | — | $ | 28,132 | $ | — | $ | (25,141 | ) | $ | 2,991 |
As of June 30, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Cash Collateral and Counterparty Netting | Total | ||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Commodity derivatives — Oil and Gas | ||||||||||||||||
Futures -- Oil | — | 5,178 | — | (5,178 | ) | — | ||||||||||
Options -- Gas | — | — | — | — | — | |||||||||||
Basis Swaps -- Gas | — | 4,372 | — | (4,372 | ) | — | ||||||||||
Commodity derivatives — Utilities | — | 2,577 | — | (2,577 | ) | — | ||||||||||
Interest Rate Swaps | — | — | — | — | — | |||||||||||
Total | $ | — | $ | 12,127 | $ | — | $ | (12,127 | ) | $ | — | |||||
Liabilities: | ||||||||||||||||
Commodity derivatives — Oil and Gas | ||||||||||||||||
Futures -- Oil | — | 112 | — | (112 | ) | — | ||||||||||
Options -- Gas | — | — | — | — | — | |||||||||||
Basis Swaps -- Gas | — | 498 | — | (498 | ) | — | ||||||||||
Commodity derivatives — Utilities | — | 18,758 | — | (18,758 | ) | — | ||||||||||
Interest rate swaps | — | 4,722 | — | — | 4,722 | |||||||||||
Total | $ | — | $ | 24,090 | $ | — | $ | (19,368 | ) | $ | 4,722 |
As of June 30, 2016 | ||||||||
Balance Sheet Location | Fair Value of Asset Derivatives | Fair Value of Liability Derivatives | ||||||
Derivatives designated as hedges: | ||||||||
Commodity derivatives | Derivative assets — current | $ | 2,549 | $ | — | |||
Commodity derivatives | Derivative assets — non-current | 81 | — | |||||
Interest rate swaps | Derivative assets — non-current | — | — | |||||
Commodity derivatives | Derivative liabilities — current | — | 44 | |||||
Commodity derivatives | Derivative liabilities — non-current | — | 226 | |||||
Interest rate swaps | Derivative liabilities — current | — | 28,558 | |||||
Interest rate swaps | Derivative liabilities — non-current | — | — | |||||
Total derivatives designated as hedges | $ | 2,630 | $ | 28,828 | ||||
Derivatives not designated as hedges: | ||||||||
Commodity derivatives | Derivative assets — current | $ | 1,481 | $ | — | |||
Commodity derivatives | Derivative assets — non-current | 145 | — | |||||
Commodity derivatives | Derivative liabilities — current | — | 254 | |||||
Commodity derivatives | Derivative liabilities — non-current | — | 4 | |||||
Total derivatives not designated as hedges | $ | 1,626 | $ | 258 |
As of December 31, 2015 | ||||||||
Balance Sheet Location | Fair Value of Asset Derivatives | Fair Value of Liability Derivatives | ||||||
Derivatives designated as hedges: | ||||||||
Commodity derivatives | Derivative assets — current | $ | 9,981 | $ | — | |||
Commodity derivatives | Derivative assets — non-current | 663 | — | |||||
Interest rate swaps | Derivative assets — non-current | 3,441 | — | |||||
Commodity derivatives | Derivative liabilities — current | — | 465 | |||||
Commodity derivatives | Derivative liabilities — non-current | — | 91 | |||||
Interest rate swaps | Derivative liabilities — current | — | 2,835 | |||||
Interest rate swaps | Derivative liabilities — non-current | — | 156 | |||||
Total derivatives designated as hedges | $ | 14,085 | $ | 3,547 | ||||
Derivatives not designated as hedges: | ||||||||
Commodity derivatives | Derivative assets — current | $ | — | $ | — | |||
Commodity derivatives | Derivative assets — non-current | — | — | |||||
Commodity derivatives | Derivative liabilities — current | — | 9,586 | |||||
Commodity derivatives | Derivative liabilities — non-current | — | 12,706 | |||||
Total derivatives not designated as hedges | $ | — | $ | 22,292 |
As of June 30, 2015 | ||||||||
Balance Sheet Location | Fair Value of Asset Derivatives | Fair Value of Liability Derivatives | ||||||
Derivatives designated as hedges: | ||||||||
Commodity derivatives | Derivative assets — current | $ | 6,931 | $ | — | |||
Commodity derivatives | Derivative assets — non-current | 2,619 | — | |||||
Commodity derivatives | Derivative liabilities — current | — | 493 | |||||
Commodity derivatives | Derivative liabilities — non-current | — | 117 | |||||
Interest rate swaps | Derivative liabilities — current | — | 3,289 | |||||
Interest rate swaps | Derivative liabilities — non-current | — | 1,433 | |||||
Total derivatives designated as hedges | $ | 9,550 | $ | 5,332 | ||||
Derivatives not designated as hedges: | ||||||||
Commodity derivatives | Derivative assets — current | $ | — | $ | — | |||
Commodity derivatives | Derivative assets — non-current | — | — | |||||
Commodity derivatives | Derivative liabilities — current | — | 5,156 | |||||
Commodity derivatives | Derivative liabilities — non-current | — | 11,025 | |||||
Total derivatives not designated as hedges | $ | — | $ | 16,181 |
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
Cash and cash equivalents (a) | $ | 116,805 | $ | 116,805 | $ | 456,535 | $ | 456,535 | $ | 87,210 | $ | 87,210 | ||||||||
Restricted cash and equivalents (a) | $ | 1,975 | $ | 1,975 | $ | 1,697 | $ | 1,697 | $ | 2,316 | $ | 2,316 | ||||||||
Notes payable (a) | $ | 75,000 | $ | 75,000 | $ | 76,800 | $ | 76,800 | $ | 105,760 | $ | 105,760 | ||||||||
Long-term debt, including current maturities, net of deferred financing costs (b) | $ | 3,152,090 | $ | 3,427,587 | $ | 1,853,682 | $ | 1,992,274 | $ | 1,556,370 | $ | 1,700,487 |
(a) | Carrying value approximates fair value due to either the short-term length of maturity or variable interest rates that approximate prevailing market rates, and therefore is classified in Level 1 in the fair value hierarchy. |
(b) | Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy. |
(15) | OTHER COMPREHENSIVE INCOME (LOSS) |
Location on the Condensed Consolidated Statements of Income (Loss) | Amount Reclassified from AOCI | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||
(Gains) losses on cash flow hedges: | |||||||||||||
Interest rate swaps | Interest expense | $ | 840 | $ | 1,670 | $ | 1,690 | $ | 3,107 | ||||
Commodity contracts | Revenue | (3,287 | ) | (3,666 | ) | (6,939 | ) | (7,598 | ) | ||||
Commodity contracts | Fuel, purchased power and cost of natural gas sold | 61 | — | 151 | — | ||||||||
(2,386 | ) | (1,996 | ) | (5,098 | ) | (4,491 | ) | ||||||
Income tax | Income tax (benefit) expense | 882 | 735 | 1,884 | 1,989 | ||||||||
Reclassification adjustments related to cash flow hedges, net of tax | $ | (1,504 | ) | $ | (1,261 | ) | $ | (3,214 | ) | $ | (2,502 | ) | |
Amortization of defined benefit plans: | |||||||||||||
Prior service cost | Operations and maintenance | $ | (55 | ) | $ | (55 | ) | $ | (110 | ) | $ | (110 | ) |
Actuarial gain (loss) | Operations and maintenance | 494 | 705 | 988 | 1,410 | ||||||||
439 | 650 | 878 | 1,300 | ||||||||||
Income tax | Income tax (benefit) expense | (154 | ) | (228 | ) | (307 | ) | (456 | ) | ||||
Reclassification adjustments related to defined benefit plans, net of tax | $ | 285 | $ | 422 | $ | 571 | $ | 844 |
Derivatives Designated as Cash Flow Hedges | Employee Benefit Plans | Total | |||||||
Balance as of December 31, 2014 | $ | 5,093 | $ | (20,137 | ) | $ | (15,044 | ) | |
Other comprehensive income (loss), net of tax | 595 | 395 | 990 | ||||||
Balance as of March 31, 2015 | 5,688 | (19,742 | ) | (14,054 | ) | ||||
Other comprehensive income (loss), net of tax | 422 | (3,227 | ) | (2,805 | ) | ||||
Balance as of June 30, 2015 | $ | 6,110 | $ | (22,969 | ) | $ | (16,859 | ) | |
Balance as of December 31, 2015 | $ | 6,725 | $ | (15,780 | ) | $ | (9,055 | ) | |
Other comprehensive income (loss), net of tax | (12,056 | ) | 286 | (11,770 | ) | ||||
Balance as of March 31, 2016 | $ | (5,331 | ) | $ | (15,494 | ) | $ | (20,825 | ) |
Other comprehensive income (loss), net of tax | (11,224 | ) | 285 | (10,939 | ) | ||||
Balance as of June 30, 2016 | $ | (16,555 | ) | $ | (15,209 | ) | $ | (31,764 | ) |
Six months ended | June 30, 2016 | June 30, 2015 | |||||
(in thousands) | |||||||
Non-cash investing and financing activities— | |||||||
Property, plant and equipment acquired with accrued liabilities | $ | 52,917 | $ | 36,661 | |||
Cash (paid) refunded during the period — | |||||||
Interest (net of amounts capitalized) | $ | (48,139 | ) | $ | (37,698 | ) | |
Income taxes, net | $ | (1,162 | ) | $ | (1,202 | ) |
Defined Benefit Pension Plan | Non-Pension Defined Benefit Postretirement Plans | |||||
Unfunded postretirement benefit obligation | $ | 22,187 | $ | 11,751 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Service cost | $ | 2,078 | $ | 1,494 | $ | 4,156 | $ | 2,988 | |||||
Interest cost | 3,936 | 3,880 | 7,872 | 7,760 | |||||||||
Expected return on plan assets | (5,766 | ) | (4,867 | ) | (11,531 | ) | (9,734 | ) | |||||
Prior service cost | 15 | 15 | 30 | 30 | |||||||||
Net loss (gain) | 1,793 | 2,759 | 3,586 | 5,518 | |||||||||
Net periodic benefit cost | $ | 2,056 | $ | 3,281 | $ | 4,113 | $ | 6,562 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Service cost | $ | 467 | $ | 464 | $ | 934 | $ | 928 | |||||
Interest cost | 485 | 450 | 970 | 900 | |||||||||
Expected return on plan assets | (70 | ) | (33 | ) | (140 | ) | (66 | ) | |||||
Prior service cost (benefit) | (107 | ) | (107 | ) | (214 | ) | (214 | ) | |||||
Net loss (gain) | 84 | 102 | 168 | 204 | |||||||||
Net periodic benefit cost | $ | 859 | $ | 876 | $ | 1,718 | $ | 1,752 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Service cost | $ | 878 | $ | 392 | $ | 907 | $ | 883 | |||||
Interest cost | 315 | 364 | 629 | 728 | |||||||||
Prior service cost | 1 | 1 | 1 | 2 | |||||||||
Net loss (gain) | 207 | 270 | 414 | 540 | |||||||||
Net periodic benefit cost | $ | 1,401 | $ | 1,027 | $ | 1,951 | $ | 2,153 |
Contributions Made | Contributions Made | Additional Contributions | Contributions | |||||||||
Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | Anticipated for 2016 | Anticipated for 2017 | |||||||||
Defined Benefit Pension Plans | $ | 10,200 | $ | 10,200 | $ | — | $ | 10,200 | ||||
Non-pension Defined Benefit Postretirement Healthcare Plans | $ | 1,192 | $ | 2,384 | $ | 2,384 | $ | 4,744 | ||||
Supplemental Non-qualified Defined Benefit and Defined Contribution Plans | $ | 392 | $ | 784 | $ | 784 | $ | 1,627 |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | |||||||||||||||||||||
Future minimum payments | |||||||||||||||||||||||||||
Pipeline capacity obligations | $ | 29,411 | $ | 44,789 | $ | 44,434 | $ | 40,636 | $ | 40,636 | $ | 192,651 | $ | 392,557 | |||||||||||||
Facilities and equipment | 1,247 | 2,216 | 2,207 | 1,676 | 1,359 | 3,326 | 12,031 | ||||||||||||||||||||
Total | $ | 30,658 | $ | 47,005 | $ | 46,641 | $ | 42,312 | $ | 41,995 | $ | 195,977 | $ | 404,588 |
• | Our utilities are generally limited to the amount of dividends allowed to be paid to us as a utility holding company under the Federal Power Act and settlement agreements with state regulatory jurisdictions and financing agreements. As of June 30, 2016, the restricted net assets at our Electric Utilities and Gas Utilities were approximately $257 million. |
• | During the first quarter of 2016, we recorded a $14 million pre-tax non-cash impairment of oil and gas assets included in our Oil and Gas segment. During the second quarter of 2016, we recorded an $11 million pre-tax non-cash impairment of oil and gas assets. At June 30, 2016, for natural gas, the average NYMEX price was $2.24 per Mcf, adjusted to $1.01 per Mcf at the wellhead; for crude oil, the average NYMEX price was $43.12 per barrel, adjusted to $37.19 per barrel at the wellhead. |
• | During the first quarter of 2015, we recorded a $22 million pre-tax non-cash impairment of oil and gas assets included in our Oil and Gas segment. During the second quarter of 2015, we recorded a $94 million pre-tax non-cash impairment of oil and gas assets. At June 30, 2015, for natural gas, the average NYMEX price was $3.39 per Mcf, adjusted to $2.14 per Mcf at the wellhead; for crude oil, the average NYMEX price was $71.68 per barrel, adjusted to $63.76 per barrel at the wellhead. |
Three Months Ended June 30, | ||||
Tax (benefit) expense | 2016 | 2015 | ||
Federal statutory rate | 35.0 | % | 35.0 | % |
State income tax (net of federal tax effect) (a) | 16.9 | 2.6 | ||
Percentage depletion in excess of cost | (5.9 | ) | 0.8 | |
Accounting for uncertain tax positions adjustment | 1.9 | (0.5 | ) | |
Noncontrolling interest (b) | (25.1 | ) | — | |
Flow-through adjustments | (10.6 | ) | 1.0 | |
Inter-period adjustment | 1.7 | (6.5 | ) | |
AFUDC equity | (5.8 | ) | 0.3 | |
Other tax differences | 0.5 | — | ||
8.6 | % | 32.7 | % |
(a) | The increase in state income tax expense was due primarily to a change in projections, the impact of which was more pronounced in the current period due to significantly lower consolidated pre-tax net income. |
(b) | The reconciling item reflects limited liability company (LLC) income not subject to tax. 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% of its membership interests in April 2016. |
Six Months Ended June 30, | ||||
Tax (benefit) expense | 2016 | 2015 | ||
Federal statutory rate | 35.0 | % | 35.0 | % |
State income tax (net of federal tax effect) | 3.8 | 2.4 | ||
Percentage depletion in excess of cost (c) | (13.5 | ) | 9.5 | |
Inter-period adjustment | (3.5 | ) | (22.6 | ) |
Accounting for uncertain tax positions adjustment (d) | (10.4 | ) | (11.9 | ) |
Noncontrolling interest | (1.9 | ) | — | |
Transaction costs | 2.3 | — | ||
Flow-through adjustments | (1.7 | ) | 9.5 | |
Other tax differences | (0.6 | ) | 2.7 | |
9.5 | % | 24.6 | % |
(c) | The tax benefit relates to additional percentage depletion deductions that are being claimed with respect to the oil and gas properties involving prior tax years. Such deductions are primarily the result of a change in the application of the maximum daily limitation of 1,000 barrels of oil equivalent as allowed under the Internal Revenue Code. |
(d) | The tax benefit relates to the release of after-tax interest expense that was previously accrued with respect to the liability for uncertain tax positions involving the like-kind exchange transaction effectuated in connection with the IPP Transaction and Aquila Transaction that occurred in 2008. In addition, the tax benefit includes the release of reserves involving research and development credits and deductions. Both adjustments are the result of a re-measurement of the liability for uncertain tax positions predicated on an agreement reached with IRS Appeals in early 2016. |
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||
Accrued employee compensation, benefits and withholdings | $ | 45,991 | $ | 43,342 | $ | 35,126 | |||
Accrued property taxes | 33,295 | 32,393 | 26,820 | ||||||
Accrued payments related to litigation expenses and settlements | — | 38,750 | 25,000 | ||||||
Customer deposits and prepayments | 44,200 | 53,496 | 26,384 | ||||||
Accrued interest and contract adjustment payments | 42,330 | 25,762 | 13,656 | ||||||
CIAC current portion (a) | 20,211 | 14,745 | — | ||||||
Other (none of which is individually significant) | 32,223 | 23,573 | 33,542 | ||||||
Total accrued liabilities | $ | 218,250 | $ | 232,061 | $ | 160,528 |
(a) | Prior to December 31, 2015, CIACs were classified as non-current liabilities. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
• | Black Hills Energy South Dakota Electric - includes all Black Hills Power utility operations in South Dakota, Wyoming and Montana. |
• | Black Hills Energy Wyoming Electric - includes all Cheyenne Light electric utility operations. |
• | Black Hills Energy Colorado Electric - includes all Colorado Electric utility operations. |
• | Black Hills Energy Arkansas Gas - includes the results from the acquired SourceGas utility Black Hills Energy Arkansas 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 operations and RMNG 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 operations. |
• | 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 Wyoming Gas - includes Cheyenne Light’s natural gas utility operations, as well as the acquired SourceGas utility Black Hills Gas Distribution’s Wyoming operations. |
See Forward-Looking Information in the Liquidity and Capital Resources section of this Item 2, beginning on Page 82. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Variance | 2016 | 2015 | Variance | |||||||||||||
Revenue | ||||||||||||||||||
Revenue | $ | 353,849 | $ | 303,039 | $ | 50,810 | $ | 839,563 | $ | 776,963 | $ | 62,600 | ||||||
Inter-company eliminations | (28,408 | ) | (30,785 | ) | 2,377 | (64,163 | ) | (62,722 | ) | (1,441 | ) | |||||||
$ | 325,441 | $ | 272,254 | $ | 53,187 | $ | 775,400 | $ | 714,241 | $ | 61,159 | |||||||
Net income (loss) available for common stock | ||||||||||||||||||
Electric Utilities | $ | 19,229 | $ | 17,632 | $ | 1,597 | $ | 38,444 | $ | 35,185 | $ | 3,259 | ||||||
Gas Utilities | 987 | 3,235 | (2,248 | ) | 32,914 | 26,823 | 6,091 | |||||||||||
Power Generation | 5,683 | 7,549 | (1,866 | ) | 14,265 | 15,694 | (1,429 | ) | ||||||||||
Mining | 724 | 3,049 | (2,325 | ) | 3,662 | 6,059 | (2,397 | ) | ||||||||||
Oil and Gas (a) (b) (c) | (19,424 | ) | (71,195 | ) | 51,771 | (26,448 | ) | (90,310 | ) | 63,862 | ||||||||
7,199 | (39,730 | ) | 46,929 | 62,837 | (6,549 | ) | 69,386 | |||||||||||
Corporate activities and eliminations (d) (e) | (6,530 | ) | (2,112 | ) | (4,418 | ) | (22,166 | ) | (1,443 | ) | (20,723 | ) | ||||||
Net income (loss) available for common stock | $ | 669 | $ | (41,842 | ) | $ | 42,511 | $ | 40,671 | $ | (7,992 | ) | $ | 48,663 |
(a) | Net income (loss) available for common stock for the three and six months ended June 30, 2016 and June 30, 2015 included non-cash after-tax impairments of our oil and gas properties of $16 million and $25 million and $63 million and $77 million, respectively. See Note 19 of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(b) | Net income (loss) available for common stock for the six months ended June 30, 2016 included a 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. |
(c) | Net income (loss) available for common stock for the three and six months ended June 30, 2015 included a non-cash after-tax impairment to equity investments of $3.4 million. |
(d) | Net income (loss) available for common stock for the three and six months ended June 30, 2016 included incremental, non-recurring acquisition costs, after-tax of $4.1 million and $20 million, respectively, and after-tax internal labor costs attributable to the acquisition of $2.0 million and $5.7 million respectively. See Note 2 of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
(e) | Net income (loss) available for common stock for the six months ended June 30, 2016 included 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. |
• | Electric Utilities experienced hotter weather during the three and six months ended June 30, 2016 compared to the three and six months ended June 30, 2015. Cooling degree days were 60% higher for the three and six months ended June 30, 2016, compared to the same periods in 2015. Cooling degree days for the three and six months ended June 30, 2016 were 68% higher than normal, compared to 4% higher than normal for the same periods in 2015. |
• | On May 3, 2016, Colorado Electric filed a request with the Colorado Public Utilities Commission to increase its annual revenues by $8.9 million to recover investments in a $65 million, 40 MW natural gas-fired combustion turbine, currently under construction. Construction on the turbine continued in the second quarter of 2016. Through June 30, 2016, approximately $49 million was expended, and the project is on schedule to be completed and placed into service in the fourth quarter of 2016. Construction riders related to the project increased gross margins by approximately $1.1 million and $2.3 million for the three and six months ended June 30, 2016, respectively. |
• | During the first quarter of 2016, South Dakota Electric commenced construction of the $54 million, 230-kV, 144 mile-long transmission line that will connect the Teckla Substation in northeast Wyoming to the Lange Substation near Rapid City, South Dakota. The first segment of this project connecting Teckla to Osage, WY is expected to be placed in service by the end of 2016. |
• | On June 23, 2015, Colorado Electric filed for a CPCN with the CPUC to acquire the planned $109 million, 60 MW Peak View Wind Project, to be located near Colorado Electric's Busch Ranch wind farm. This renewable energy project was originally submitted in response to Colorado Electric's all-source generation request on May 5, 2014. The project is being built by Invenergy Wind Development Colorado LLC and is expected to be completed in the fourth quarter of 2016. On October 21, 2015, the Commission approved a build transfer proposal and settlement agreement. The settlement provides for recovery of the costs of the project through Colorado Electric’s Electric Cost Adjustments and Renewable Energy Standard Surcharge for 10 years, after which Colorado Electric can propose base rate recovery. Colorado Electric will be required to make an annual comparison of the cost of the renewable energy generated by the facility against the bid cost of a PPA from the same facility. Colorado Electric will purchase the project for approximately $109 million through progress payments throughout 2016, with ownership transfer occurring just before achieving commercial operation. Through June 30, 2016, approximately $68 million was expended on the project. |
• | Gas Utilities experienced milder weather during the three and six months ended June 30, 2016 compared to the three and six months ended June 30, 2015. Heating degree days were 5% and 20% lower, respectively, for the three and six months ended June 30, 2016, compared to the same periods in 2015. Heating degree days for the three and six months ended June 30, 2016 were 10% and 11% lower than normal, respectively, compared to 9% lower than normal and comparable to normal for the same periods in 2015. |
• | On July 26, 2016, BHC announced a request for withdrawal of proceedings for its Cost of Service Gas application in Wyoming and will be requesting withdrawals of its Cost of Service Gas applications in Iowa, Kansas and South Dakota. In consideration of the July 19, 2016 denial of the application from the NPSC and the April 2016 dismissal of its application from the CPUC, the Company is re-evaluating its Cost of Service Gas regulatory approval strategy. |
• | Black Hills Colorado IPP owns and operates a 200 MW, combined cycle natural gas generating facility located in Pueblo, Colorado. On April 14, 2016, Black Hills Electric Generation sold a 49.9%, noncontrolling interest in Black Hills Colorado IPP for $216 million. FERC approval of the sale was received on March 29, 2016. Proceeds from the sale were used to pay down short-term debt. 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. |
• | Our Oil and Gas segment was impacted by lower commodity prices for crude oil and natural gas for the three and six months ended June 30, 2016 compared to the same periods in 2015. The average hedged price received for natural gas decreased by 48% and 44%, respectively, for the three and six months ended June 30, 2016 compared to the same periods in 2015. The average hedged price received for oil decreased by 8% and 19%, respectively, for the three and six months ended June 30, 2016 compared to the same periods in 2015. Oil and Gas production volumes decreased 10% and 3%, respectively, for the three and six months ended June 30, 2016 compared to the same periods in 2015. |
• | Oil and Gas results benefited by $5.8 million from a change in estimate related to income taxes. The tax benefit relates to additional percentage depletion deductions that are being claimed with respect to the oil and gas properties. The benefit recorded in the first quarter of 2016 includes a change in estimate recorded for income tax accounting purposes. This benefit was the result of completion of a study to analyze prior depletion claimed dating back to 2007. |
• | We review the carrying value of our natural gas and oil properties under the full cost accounting rules of the SEC on a quarterly basis, known as a ceiling test. In the first and second quarters of 2016, our Oil and Gas segment recorded pre-tax, non-cash ceiling test impairments of $14 million and $11 million, respectively as a result of continued low commodity prices. Using our current reserves information, further ceiling test impairments are likely to occur in the third quarter of 2016 if commodity prices for crude oil and natural gas remain at current levels. We also recorded a $14 million impairment of other Oil and Gas depreciable properties not included in our full cost pool during the second quarter of 2016 as we advanced our strategy to transition our Oil and Gas segment to support Cost of Service Gas programs. |
• | During the first quarter of 2016, we reached an agreement in principle with IRS Appeals with respect to our liability for unrecognized tax benefits attributable to the like-kind exchange effectuated in connection with the 2008 IPP Transaction and the 2008 Aquila Transaction. This agreement resulted in a tax benefit of approximately $5.1 million in the first quarter of 2016. See Note 20 of the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional details on this agreement. |
• | On March 18, 2016, we implemented an at-the-market equity offering program allowing us to sell shares of our common stock with an aggregate value of up to $200 million. The shares may be offered from time to time pursuant to a sales agreement dated March 18, 2016. Shares of common stock are offered pursuant to our shelf registration statement filed with the SEC. During the three months ended June 30, 2016, we sold 809,649 common shares for $49 million, net of $0.5 million in commissions under the ATM equity offering program. Through June 30, 2016, we have sold and issued an aggregate of 930,649 shares of common stock under the ATM equity offering program for $56 million, net of $0.6 million in commissions. Additionally, 46,576 shares for net proceeds of $2.9 million have been sold, but were not settled and are not considered issued and outstanding as of June 30, 2016. |
• | On February 12, 2016, Black Hills Utility Holdings acquired SourceGas, pursuant to the purchase and sale agreement executed on July 12, 2015 for approximately $1.89 billion, which included the assumption of $760 million in long-term debt at closing. In June 2016 we agreed to and received a purchase price adjustment of $11 million. SourceGas operates four regulated natural gas utilities serving approximately 429,000 customers in Arkansas, Colorado, Nebraska and Wyoming, and a 512 mile regulated intrastate natural gas transmission pipeline in Colorado. We funded the majority of the SourceGas Transaction with the following financings: |
• | On January 13, 2016, we completed a public debt offering of $550 million in senior unsecured notes. The debt offering consisted of $300 million of 3.95%, 10-year senior notes due 2026, and $250 million of 2.50%, 3-year senior notes due 2019. Net proceeds after discounts and fees were approximately $546 million; and |
• | On November 23, 2015, we completed the offerings of common stock and equity units. We issued 6.325 million shares of common stock for net proceeds of $246 million and 5.98 million equity units for net proceeds of $290 million. |
• | On February 12, 2016, Moody's affirmed the BHC credit rating of Baa1 and maintained a negative outlook following our acquisition of SourceGas. Moody’s has maintained a negative outlook as BHC focuses on integrating the newly acquired SourceGas assets over the 12 months subsequent to closing, consummation of the sale of the 49.9% noncontrolling interest of our Colorado IPP assets and utilizing an ATM equity offering program. In addition, the negative outlook reflects overall weaker consolidated metrics when compared to historical ranges. |
• | On February 12, 2016, S&P affirmed the BHC credit rating of BBB and maintained a stable outlook after our acquisition of SourceGas, reflecting their expectation that management will continue to focus on the core utility operations while maintaining an excellent business risk profile following the acquisition. |
• | On February 12, 2016, Fitch affirmed the BHC credit rating of BBB+ and maintained a negative outlook after our acquisition of SourceGas, which reflects the initial increased leverage associated with the SourceGas Acquisition. |
• | On January 20, 2016, we executed a 10-year, $150 million notional, forward starting pay fixed interest rate swap at an all-in interest rate of 2.09%, with a mandatory early termination date of April 12, 2017 to hedge the risks of interest rate movement between the hedge date and the expected pricing date for anticipated future long-term debt refinancings. This swap is accounted for as a cash flow hedge and any gain or loss is recorded in AOCI. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Variance | 2016 | 2015 | Variance | |||||||||||||
(in thousands) | ||||||||||||||||||
Revenue | $ | 161,481 | $ | 164,023 | $ | (2,542 | ) | $ | 328,757 | $ | 333,940 | $ | (5,183 | ) | ||||
Total fuel and purchased power | 61,418 | 64,185 | (2,767 | ) | 127,524 | 131,875 | (4,351 | ) | ||||||||||
Gross margin | 100,063 | 99,838 | 225 | 201,233 | 202,065 | (832 | ) | |||||||||||
Operations and maintenance | 38,879 | 40,734 | (1,855 | ) | 78,204 | 81,971 | (3,767 | ) | ||||||||||
Depreciation and amortization | 20,473 | 19,954 | 519 | 41,731 | 40,222 | 1,509 | ||||||||||||
Total operating expenses | 59,352 | 60,688 | (1,336 | ) | 119,935 | 122,193 | (2,258 | ) | ||||||||||
Operating income | 40,711 | 39,150 | 1,561 | 81,298 | 79,872 | 1,426 | ||||||||||||
Interest expense, net | (12,131 | ) | (12,961 | ) | 830 | (24,630 | ) | (26,215 | ) | 1,585 | ||||||||
Other income (expense), net | 838 | 167 | 671 | 1,493 | 241 | 1,252 | ||||||||||||
Income tax benefit (expense) | (10,189 | ) | (8,724 | ) | (1,465 | ) | (19,717 | ) | (18,713 | ) | (1,004 | ) | ||||||
Net income (loss) | $ | 19,229 | $ | 17,632 | $ | 1,597 | $ | 38,444 | $ | 35,185 | $ | 3,259 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Revenue - Electric (in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Residential: | |||||||||||||||
South Dakota Electric | $ | 16,241 | $ | 15,470 | $ | 35,556 | $ | 35,610 | |||||||
Wyoming Electric | 9,241 | 8,929 | 19,698 | 19,194 | |||||||||||
Colorado Electric | 23,148 | 22,147 | 46,261 | 46,717 | |||||||||||
Total Residential | 48,630 | 46,546 | 101,515 | 101,521 | |||||||||||
Commercial: | |||||||||||||||
South Dakota Electric | 23,723 | 24,433 | 47,312 | 49,174 | |||||||||||
Wyoming Electric | 15,839 | 15,739 | 31,512 | 31,559 | |||||||||||
Colorado Electric | 24,392 | 23,555 | 46,875 | 45,719 | |||||||||||
Total Commercial | 63,954 | 63,727 | 125,699 | 126,452 | |||||||||||
Industrial: | |||||||||||||||
South Dakota Electric | 7,764 | 8,459 | 16,265 | 16,758 | |||||||||||
Wyoming Electric | 10,352 | 8,538 | 20,449 | 17,164 | |||||||||||
Colorado Electric | 9,782 | 10,400 | 19,047 | 21,156 | |||||||||||
Total Industrial | 27,898 | 27,397 | 55,761 | 55,078 | |||||||||||
Municipal: | |||||||||||||||
South Dakota Electric | 960 | 859 | 1,791 | 1,717 | |||||||||||
Wyoming Electric | 552 | 582 | 1,063 | 1,098 | |||||||||||
Colorado Electric | 2,885 | 2,956 | 5,580 | 6,018 | |||||||||||
Total Municipal | 4,397 | 4,397 | 8,434 | 8,833 | |||||||||||
Total Retail Revenue - Electric | 144,879 | 142,067 | 291,409 | 291,884 | |||||||||||
Contract Wholesale: | |||||||||||||||
Total Contract Wholesale - South Dakota Electric | 3,947 | 3,979 | 8,121 | 9,399 | |||||||||||
Off-system Wholesale: | |||||||||||||||
South Dakota Electric | 2,734 | 6,666 | 7,320 | 13,301 | |||||||||||
Wyoming Electric | 1,007 | 992 | 2,853 | 2,953 | |||||||||||
Colorado Electric | 573 | 418 | 707 | 502 | |||||||||||
Total Off-system Wholesale | 4,314 | 8,076 | 10,880 | 16,756 | |||||||||||
Other Revenue: | |||||||||||||||
South Dakota Electric | 6,650 | 8,172 | 14,296 | 12,362 | |||||||||||
Wyoming Electric | 520 | 566 | 1,110 | 1,041 | |||||||||||
Colorado Electric | 1,171 | 1,163 | 2,941 | 2,498 | |||||||||||
Total Other Revenue | 8,341 | 9,901 | 18,347 | 15,901 | |||||||||||
Total Revenue - Electric | $ | 161,481 | $ | 164,023 | $ | 328,757 | $ | 333,940 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
Quantities Generated and Purchased (in MWh) | 2016 | 2015 | 2016 | 2015 | |||||||
Generated — | |||||||||||
Coal-fired: | |||||||||||
South Dakota Electric (a) | 265,032 | 399,763 | 653,033 | 776,597 | |||||||
Wyoming Electric | 180,081 | 180,082 | 359,774 | 374,798 | |||||||
Total Coal-fired | 445,113 | 579,845 | 1,012,807 | 1,151,395 | |||||||
Natural Gas and Oil: | |||||||||||
South Dakota Electric (a) | 39,433 | 16,883 | 54,995 | 19,761 | |||||||
Wyoming Electric (a) | 27,191 | 7,711 | 35,070 | 10,550 | |||||||
Colorado Electric | 61,123 | 34,255 | 63,890 | 37,747 | |||||||
Total Natural Gas and Oil | 127,747 | 58,849 | 153,955 | 68,058 | |||||||
Wind: | |||||||||||
Colorado Electric | 10,588 | 10,177 | 23,649 | 19,268 | |||||||
Total Wind | 10,588 | 10,177 | 23,649 | 19,268 | |||||||
Total Generated: | |||||||||||
South Dakota Electric | 304,465 | 416,646 | 708,028 | 796,358 | |||||||
Wyoming Electric | 207,272 | 187,793 | 394,844 | 385,348 | |||||||
Colorado Electric | 71,711 | 44,432 | 87,539 | 57,015 | |||||||
Total Generated | 583,448 | 648,871 | 1,190,411 | 1,238,721 | |||||||
Purchased — | |||||||||||
South Dakota Electric | 315,379 | 350,892 | 655,069 | 789,335 | |||||||
Wyoming Electric | 186,085 | 173,151 | 408,880 | 360,930 | |||||||
Colorado Electric | 467,365 | 454,859 | 945,248 | 927,046 | |||||||
Total Purchased | 968,829 | 978,902 | 2,009,197 | 2,077,311 | |||||||
Total Generated and Purchased: | |||||||||||
South Dakota Electric | 619,844 | 767,538 | 1,363,097 | 1,585,693 | |||||||
Wyoming Electric | 393,357 | 360,944 | 803,724 | 746,278 | |||||||
Colorado Electric | 539,076 | 499,291 | 1,032,787 | 984,061 | |||||||
Total Generated and Purchased | 1,552,277 | 1,627,773 | 3,199,608 | 3,316,032 |
(a) | An increase in gas-fired generation from Cheyenne Prairie was due to lower coal fired generation driven by outages at the coal-fired Wyodak plant during the three and six months ended June 30, 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
Quantity Sold (in MWh) | 2016 | 2015 | 2016 | 2015 | |||||
Residential: | |||||||||
South Dakota Electric | 114,851 | 110,017 | 257,604 | 256,980 | |||||
Wyoming Electric | 59,587 | 58,169 | 127,900 | 125,668 | |||||
Colorado Electric | 144,318 | 136,767 | 293,346 | 293,981 | |||||
Total Residential | 318,756 | 304,953 | 678,850 | 676,629 | |||||
Commercial: | |||||||||
South Dakota Electric | 190,207 | 189,889 | 379,095 | 384,967 | |||||
Wyoming Electric | 130,550 | 130,456 | 260,880 | 261,559 | |||||
Colorado Electric | 184,150 | 169,508 | 360,346 | 334,589 | |||||
Total Commercial | 504,907 | 489,853 | 1,000,321 | 981,115 | |||||
Industrial: | |||||||||
South Dakota Electric | 102,620 | 102,494 | 210,641 | 214,353 | |||||
Wyoming Electric | 150,332 | 118,180 | 293,074 | 229,276 | |||||
Colorado Electric (a) | 113,454 | 110,925 | 212,943 | 229,032 | |||||
Total Industrial | 366,406 | 331,599 | 716,658 | 672,661 | |||||
Municipal: | |||||||||
South Dakota Electric | 8,487 | 7,036 | 15,928 | 14,736 | |||||
Wyoming Electric | 2,102 | 2,174 | 4,647 | 4,724 | |||||
Colorado Electric | 30,026 | 28,808 | 56,609 | 56,921 | |||||
Total Municipal | 40,615 | 38,018 | 77,184 | 76,381 | |||||
Total Retail Quantity Sold | 1,230,684 | 1,164,423 | 2,473,013 | 2,406,786 | |||||
Contract Wholesale: | |||||||||
Total Contract Wholesale - South Dakota Electric (b) | 56,087 | 64,896 | 119,540 | 149,167 | |||||
Off-system Wholesale: | |||||||||
South Dakota Electric | 117,064 | 246,213 | 310,437 | 491,851 | |||||
Wyoming Electric | 21,253 | 24,662 | 58,746 | 73,534 | |||||
Colorado Electric (c) | 28,233 | 13,501 | 35,695 | 15,970 | |||||
Total Off-system Wholesale | 166,550 | 284,376 | 404,878 | 581,355 | |||||
Total Quantity Sold: | |||||||||
South Dakota Electric | 589,316 | 720,545 | 1,293,245 | 1,512,054 | |||||
Wyoming Electric | 363,824 | 333,641 | 745,247 | 694,761 | |||||
Colorado Electric | 500,181 | 459,509 | 958,939 | 930,493 | |||||
Total Quantity Sold | 1,453,321 | 1,513,695 | 2,997,431 | 3,137,308 | |||||
Other Uses, Losses or Generation, net (d): | |||||||||
South Dakota Electric | 30,528 | 46,993 | 69,852 | 73,639 | |||||
Wyoming Electric | 29,533 | 27,303 | 58,477 | 51,517 | |||||
Colorado Electric | 38,895 | 39,782 | 73,848 | 53,568 | |||||
Total Other Uses, Losses and Generation, net | 98,956 | 114,078 | 202,177 | 178,724 | |||||
Total Energy | 1,552,277 | 1,627,773 | 3,199,608 | 3,316,032 |
(a) | Decrease was due to a planned outage at a large industrial customer during the first quarter of 2016. |
(b) | Decrease was driven by load requirements related to a unit-contingent PPA. |
(c) | Increase in 2016 generation was primarily driven by commodity prices that impacted power marketing sales. |
(d) | Includes company uses, line losses, and excess exchange production. |
Three Months Ended June 30, | |||||||||||||
Degree Days | 2016 | 2015 | |||||||||||
Actual | Variance from 30-Year Average | Actual Variance to Prior Year | Actual | Variance from 30-Year Average | |||||||||
Heating Degree Days: | |||||||||||||
South Dakota Electric | 877 | (13 | )% | (13)% | 1,005 | — | % | ||||||
Wyoming Electric | 1,134 | (15 | )% | (3)% | 1,173 | (2 | )% | ||||||
Colorado Electric | 516 | (15 | )% | (17)% | 624 | 2 | % | ||||||
Combined (a) | 762 | (14 | )% | (12)% | 863 | — | % | ||||||
Cooling Degree Days: | |||||||||||||
South Dakota Electric | 186 | 74 | % | 94% | 96 | (10 | )% | ||||||
Wyoming Electric | 102 | 100 | % | 65% | 62 | 22 | % | ||||||
Colorado Electric | 369 | 63 | % | 51% | 245 | 8 | % | ||||||
Combined (a) | 253 | 68 | % | 60% | 158 | 4 | % |
Six Months Ended June 30, | |||||||||||||
Degree Days | 2016 | 2015 | |||||||||||
Actual | Variance from 30-Year Average | Actual Variance to Prior Year | Actual | Variance from 30-Year Average | |||||||||
Heating Degree Days: | |||||||||||||
South Dakota Electric | 3,683 | (13 | )% | (5)% | 3,878 | (8 | )% | ||||||
Wyoming Electric | 3,910 | (12 | )% | 2% | 3,824 | (9 | )% | ||||||
Colorado Electric | 2,801 | (13 | )% | (7)% | 3,022 | (6 | )% | ||||||
Combined (a) | 3,323 | (13 | )% | (4)% | 3,473 | (8 | )% | ||||||
Cooling Degree Days: | |||||||||||||
South Dakota Electric | 186 | 74 | % | 94% | 96 | (10 | )% | ||||||
Wyoming Electric | 102 | 100 | % | 65% | 62 | 22 | % | ||||||
Colorado Electric | 369 | 63 | % | 51% | 245 | 8 | % | ||||||
Combined (a) | 253 | 68 | % | 60% | 158 | 4 | % |
(a) | Combined actuals are calculated based on the weighted average number of total customers by state. |
Electric Utilities Power Plant Availability | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Coal-fired plants (a) | 75.1 | % | 96.4 | % | 84.5 | % | 93.8 | % | ||||
Other plants | 97.6 | % | 93.7 | % | 96.3 | % | 94.7 | % | ||||
Total availability | 89.5 | % | 94.7 | % | 92.0 | % | 94.4 | % |
(a) | Decrease is due to a planned outage at Wygen III and an extended planned outage at Wyodak. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Variance | 2016 | 2015 | Variance | |||||||||||||
(in thousands) | ||||||||||||||||||
Revenue: | ||||||||||||||||||
Natural gas — regulated | $ | 138,023 | $ | 80,316 | $ | 57,707 | $ | 392,477 | $ | 325,945 | $ | 66,532 | ||||||
Other — non-regulated services | 13,938 | 7,347 | 6,591 | 29,957 | 15,850 | 14,107 | ||||||||||||
Total revenue | 151,961 | 87,663 | 64,298 | 422,434 | 341,795 | 80,639 | ||||||||||||
Cost of sales | ||||||||||||||||||
Natural gas — regulated | 43,159 | 33,499 | 9,660 | 172,923 | 195,882 | (22,959 | ) | |||||||||||
Other — non-regulated services | 5,146 | 3,571 | 1,575 | 13,346 | 7,484 | 5,862 | ||||||||||||
Total cost of sales | 48,305 | 37,070 | 11,235 | 186,269 | 203,366 | (17,097 | ) | |||||||||||
Gross margin | 103,656 | 50,593 | 53,063 | 236,165 | 138,429 | 97,736 | ||||||||||||
Operations and maintenance | 62,237 | 33,966 | 28,271 | 114,924 | 72,145 | 42,779 | ||||||||||||
Depreciation and amortization | 19,931 | 7,943 | 11,988 | 35,903 | 15,765 | 20,138 | ||||||||||||
Total operating expenses | 82,168 | 41,909 | 40,259 | 150,827 | 87,910 | 62,917 | ||||||||||||
Operating income (loss) | 21,488 | 8,684 | 12,804 | 85,338 | 50,519 | 34,819 | ||||||||||||
Interest expense, net | (19,074 | ) | (4,178 | ) | (14,896 | ) | (32,591 | ) | (8,566 | ) | (24,025 | ) | ||||||
Other income (expense), net | (261 | ) | 23 | (284 | ) | 390 | 7 | 383 | ||||||||||
Income tax benefit (expense) | (1,184 | ) | (1,294 | ) | 110 | (20,193 | ) | (15,137 | ) | (5,056 | ) | |||||||
Net income (loss) | 969 | 3,235 | (2,266 | ) | 32,944 | 26,823 | 6,121 | |||||||||||
Net (income) loss attributable to noncontrolling interest | 18 | — | 18 | (30 | ) | — | (30 | ) | ||||||||||
Net income (loss) available for common stock | $ | 987 | $ | 3,235 | $ | (2,248 | ) | $ | 32,914 | $ | 26,823 | $ | 6,091 |
System Infrastructure (in line miles) as of | Intrastate Gas Transmission Pipelines | Gas Distribution Mains | Gas Distribution Service Lines | |||
June 30, 2016 | ||||||
Arkansas | 886 | 4,572 | 906 | |||
Colorado | 678 | 6,481 | 2,323 | |||
Nebraska | 1,249 | 8,330 | 3,319 | |||
Iowa | 180 | 2,740 | 2,639 | |||
Kansas | 293 | 2,826 | 1,328 | |||
Wyoming | 1,299 | 3,375 | 1,208 | |||
Total | 4,585 | 28,324 | 11,723 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Revenue (in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Residential: | |||||||||||||||
Arkansas | $ | 9,799 | $ | — | $ | 25,577 | $ | — | |||||||
Colorado | 21,361 | 9,861 | 53,141 | 35,597 | |||||||||||
Nebraska | 20,314 | 15,628 | 66,848 | 72,072 | |||||||||||
Iowa | 12,787 | 12,978 | 47,634 | 59,344 | |||||||||||
Kansas | 9,320 | 8,814 | 31,668 | 38,142 | |||||||||||
Wyoming | 11,126 | 4,541 | 24,673 | 13,253 | |||||||||||
Total Residential | $ | 84,707 | $ | 51,822 | $ | 249,541 | $ | 218,408 | |||||||
Commercial: | |||||||||||||||
Arkansas | $ | 4,764 | $ | — | $ | 12,436 | $ | — | |||||||
Colorado | 7,956 | 1,827 | 18,163 | 6,924 | |||||||||||
Nebraska | 3,256 | 3,895 | 16,339 | 22,107 | |||||||||||
Iowa | 4,336 | 4,894 | 19,473 | 26,523 | |||||||||||
Kansas | 2,090 | 2,992 | 10,260 | 14,058 | |||||||||||
Wyoming | 3,476 | 2,413 | 9,179 | 7,367 | |||||||||||
Total Commercial | $ | 25,878 | $ | 16,021 | $ | 85,850 | $ | 76,979 | |||||||
Industrial: | |||||||||||||||
Arkansas | $ | 747 | $ | — | $ | 1,584 | $ | — | |||||||
Colorado | 260 | 218 | 505 | 247 | |||||||||||
Nebraska | 69 | 582 | 187 | 899 | |||||||||||
Iowa | 250 | 443 | 825 | 1,698 | |||||||||||
Kansas | 1,959 | 2,756 | 2,589 | 4,497 | |||||||||||
Wyoming | 703 | 534 | 1,657 | 2,434 | |||||||||||
Total Industrial | $ | 3,988 | $ | 4,533 | $ | 7,347 | $ | 9,775 | |||||||
Transportation: | |||||||||||||||
Arkansas | $ | 2,123 | $ | — | $ | 3,758 | $ | — | |||||||
Colorado | 916 | 238 | 1,852 | 603 | |||||||||||
Nebraska | 8,162 | 2,431 | 15,951 | 7,827 | |||||||||||
Iowa | 1,080 | 1,037 | 2,555 | 2,699 | |||||||||||
Kansas | 1,355 | 1,430 | 3,398 | 3,931 | |||||||||||
Wyoming | 2,266 | 675 | 4,881 | 1,506 | |||||||||||
Total Transportation | $ | 15,902 | $ | 5,811 | $ | 32,395 | $ | 16,566 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Revenue (in thousands) (continued) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Transmission: | |||||||||||||||
Arkansas | $ | — | $ | — | $ | — | $ | — | |||||||
Colorado | 3,074 | — | 7,617 | — | |||||||||||
Nebraska | 179 | — | 206 | — | |||||||||||
Iowa | — | — | — | — | |||||||||||
Kansas | — | — | — | — | |||||||||||
Wyoming | 637 | — | 974 | — | |||||||||||
Total Transmission | $ | 3,890 | $ | — | $ | 8,797 | $ | — | |||||||
Pipeline Revenue | $ | 859 | $ | — | $ | 1,506 | $ | — | |||||||
Other Sales Revenue: | |||||||||||||||
Arkansas | $ | 582 | $ | — | $ | 1,407 | $ | — | |||||||
Colorado | 74 | 373 | 181 | 416 | |||||||||||
Nebraska | 873 | 613 | 1,674 | 1,270 | |||||||||||
Iowa | 213 | 208 | 313 | 347 | |||||||||||
Kansas | 643 | 861 | 2,633 | 2,026 | |||||||||||
Wyoming | 414 | 74 | 833 | 158 | |||||||||||
Total Other Sales Revenue | $ | 2,799 | $ | 2,129 | $ | 7,041 | $ | 4,217 | |||||||
Total Regulated Revenue | $ | 138,023 | $ | 80,316 | $ | 392,477 | $ | 325,945 | |||||||
Non-regulated Services | 13,938 | 7,347 | 29,957 | 15,850 | |||||||||||
Total Revenue | $ | 151,961 | $ | 87,663 | $ | 422,434 | $ | 341,795 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Gross Margin (in thousands) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Residential: | |||||||||||||||
Arkansas | $ | 7,752 | $ | — | $ | 17,381 | $ | — | |||||||
Colorado | 9,819 | 3,689 | 21,296 | 10,026 | |||||||||||
Nebraska | 15,923 | 9,716 | 38,395 | 28,706 | |||||||||||
Iowa | 8,989 | 8,814 | 22,596 | 22,712 | |||||||||||
Kansas | 6,444 | 6,204 | 16,529 | 17,682 | |||||||||||
Wyoming | 8,475 | 2,745 | 17,206 | 6,523 | |||||||||||
Total Residential | $ | 57,402 | $ | 31,168 | $ | 133,403 | $ | 85,649 | |||||||
Commercial: | |||||||||||||||
Arkansas | $ | 2,975 | $ | — | $ | 6,951 | $ | — | |||||||
Colorado | 3,089 | 574 | 6,254 | 1,614 | |||||||||||
Nebraska | 1,756 | 1,714 | 6,213 | 6,383 | |||||||||||
Iowa | 2,168 | 2,117 | 6,457 | 6,753 | |||||||||||
Kansas | 1,100 | 1,493 | 4,011 | 4,880 | |||||||||||
Wyoming | 1,714 | 891 | 4,378 | 2,319 | |||||||||||
Total Commercial | $ | 12,802 | $ | 6,789 | $ | 34,264 | $ | 21,949 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Gross Margin (in thousands) (continued) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Industrial: | |||||||||||||||
Arkansas | $ | 344 | $ | — | $ | 662 | $ | — | |||||||
Colorado | 130 | 69 | 241 | 90 | |||||||||||
Nebraska | 50 | 158 | 95 | 239 | |||||||||||
Iowa | 44 | 50 | 87 | 131 | |||||||||||
Kansas | 539 | 557 | 768 | 950 | |||||||||||
Wyoming | 147 | 83 | 350 | 345 | |||||||||||
Total Industrial | $ | 1,254 | $ | 917 | $ | 2,203 | $ | 1,755 | |||||||
Transportation: | |||||||||||||||
Arkansas | $ | 2,123 | $ | — | $ | 3,758 | $ | — | |||||||
Colorado | 916 | 238 | 1,852 | 603 | |||||||||||
Nebraska | 8,162 | 2,431 | 15,951 | 7,827 | |||||||||||
Iowa | 1,080 | 1,037 | 2,555 | 2,699 | |||||||||||
Kansas | 1,355 | 1,430 | 3,398 | 3,931 | |||||||||||
Wyoming | 2,266 | 675 | 4,881 | 1,506 | |||||||||||
Total Transportation | $ | 15,902 | $ | 5,811 | $ | 32,395 | $ | 16,566 | |||||||
Transmission: | |||||||||||||||
Arkansas | $ | — | $ | — | $ | — | $ | — | |||||||
Colorado | 3,064 | — | 7,608 | — | |||||||||||
Nebraska | 179 | — | 206 | — | |||||||||||
Iowa | — | — | — | — | |||||||||||
Kansas | — | — | — | — | |||||||||||
Wyoming | 673 | — | 950 | — | |||||||||||
Total Transmission | $ | 3,916 | $ | — | $ | 8,764 | $ | — | |||||||
Pipeline | $ | 789 | $ | — | $ | 1,495 | $ | — | |||||||
Other Sales Margins: | |||||||||||||||
Arkansas | $ | 582 | $ | — | $ | 1,407 | $ | — | |||||||
Colorado | 74 | 374 | 181 | 417 | |||||||||||
Nebraska | 873 | 613 | 1,674 | 1,270 | |||||||||||
Iowa | 213 | 208 | 313 | 347 | |||||||||||
Kansas | 643 | 863 | 2,622 | 1,952 | |||||||||||
Wyoming | 414 | 74 | 833 | 158 | |||||||||||
Total Other Sales Margins | $ | 2,799 | $ | 2,132 | $ | 7,030 | $ | 4,144 | |||||||
Total Regulated Gross Margin | $ | 94,864 | $ | 46,817 | $ | 219,554 | $ | 130,063 | |||||||
Non-regulated Services | 8,792 | 3,776 | 16,611 | 8,366 | |||||||||||
Total Gross Margin | $ | 103,656 | $ | 50,593 | $ | 236,165 | $ | 138,429 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
Distribution Quantities Sold and Transportation (in Dth) | 2016 | 2015 | 2016 | 2015 | |||||
Residential: | |||||||||
Arkansas | 852,523 | — | 2,745,603 | — | |||||
Colorado | 2,528,067 | 1,049,937 | 6,945,901 | 3,996,742 | |||||
Nebraska | 1,984,185 | 1,147,696 | 8,425,278 | 7,106,652 | |||||
Iowa | 1,227,179 | 1,045,198 | 6,265,928 | 6,561,235 | |||||
Kansas | 736,678 | 596,296 | 3,654,752 | 3,950,110 | |||||
Wyoming | 1,685,312 | 469,750 | 4,122,162 | 1,410,157 | |||||
Total Residential | 9,013,944 | 4,308,877 | 32,159,624 | 23,024,896 | |||||
Commercial: | |||||||||
Arkansas | 683,030 | — | 1,823,369 | — | |||||
Colorado | 993,923 | 218,528 | 2,438,460 | 835,726 | |||||
Nebraska | 425,341 | 442,952 | 2,416,070 | 2,623,646 | |||||
Iowa | 728,477 | 685,373 | 3,302,428 | 3,565,464 | |||||
Kansas | 275,512 | 334,343 | 1,550,400 | 1,769,847 | |||||
Wyoming | 660,375 | 398,228 | 1,812,102 | 1,068,817 | |||||
Total Commercial | 3,766,658 | 2,079,424 | 13,342,829 | 9,863,500 | |||||
Industrial: | |||||||||
Arkansas | 181,305 | — | 342,996 | — | |||||
Colorado | 90,351 | 43,535 | 128,328 | 45,937 | |||||
Nebraska | 14,375 | 107,625 | 32,712 | 153,325 | |||||
Iowa | 64,611 | 87,777 | 191,810 | 278,782 | |||||
Kansas (a) | 765,078 | 701,122 | 929,423 | 1,025,901 | |||||
Wyoming | 215,507 | 118,781 | 488,032 | 420,058 | |||||
Total Industrial | 1,331,227 | 1,058,840 | 2,113,301 | 1,924,003 | |||||
Wholesale and Other: | |||||||||
Arkansas | 16,405 | — | 29,640 | — | |||||
Colorado | — | — | — | — | |||||
Nebraska | — | — | — | — | |||||
Iowa | — | — | — | — | |||||
Kansas (a) | — | 927 | — | 14,902 | |||||
Wyoming | — | — | — | — | |||||
Total Wholesale and Other | 16,405 | 927 | 29,640 | 14,902 | |||||
Total Distribution Quantities Sold | 14,128,234 | 7,448,068 | 47,645,394 | 34,827,301 | |||||
Transportation: | |||||||||
Arkansas | 2,137,720 | — | 3,549,312 | — | |||||
Colorado | 800,220 | 230,437 | 1,598,813 | 610,486 | |||||
Nebraska | 10,616,454 | 6,509,208 | 21,830,950 | 15,558,983 | |||||
Iowa | 4,635,739 | 4,599,639 | 10,466,083 | 10,687,688 | |||||
Kansas | 3,234,621 | 3,564,124 | 7,048,006 | 7,861,476 | |||||
Wyoming | 6,409,106 | 2,693,738 | 10,945,275 | 5,886,418 | |||||
Total Transportation | 27,833,860 | 17,597,146 | 55,438,439 | 40,605,051 | |||||
Total Distribution Quantities Sold and Transportation | 41,962,094 | 25,045,214 | 103,083,833 | 75,432,352 |
(a) | Change from prior year due to a change in Wholesale customer classification to Industrial classification. |
Three Months Ended June 30, | |||||||||
2016 | 2015 | ||||||||
Heating Degree Days: (c) | Actual | Variance from 30-Year Average | Actual Variance to Prior Year | Actual | Variance from 30-Year Average | ||||
Arkansas (a) | 232 | 62% | N/A | — | —% | ||||
Colorado | 889 | 3% | —% | 887 | (4)% | ||||
Nebraska | 440 | (30)% | (7)% | 474 | (18)% | ||||
Iowa | 633 | (8)% | (2)% | 649 | (5)% | ||||
Kansas (a) | 407 | (9)% | 1% | 403 | (10)% | ||||
Wyoming | 1,171 | (12)% | —% | 1,173 | (2) | ||||
Combined (b) | 620 | (10)% | (5)% | 655 | (9)% |
Six Months Ended June 30, | |||||||||||||
2016 | 2015 | ||||||||||||
Heating Degree Days: | Actual | Variance from 30-Year Average | Actual Variance to Prior Year | Actual | Variance from 30-Year Average | ||||||||
Arkansas (a) | 1,189 | (7 | )% | N/A | — | — | % | ||||||
Colorado | 3,517 | (7 | )% | 3% | 3,422 | (8 | )% | ||||||
Nebraska | 3,121 | (16 | )% | (11)% | 3,488 | (3 | )% | ||||||
Iowa | 3,715 | (9 | )% | (17)% | 4,483 | 10 | % | ||||||
Kansas (a) | 2,570 | (13 | )% | (6)% | 2,725 | (6 | )% | ||||||
Wyoming | 4,020 | (9 | )% | 5% | 3,824 | (9 | ) | ||||||
Combined (b) | 3,069 | (11 | )% | (20)% | 3,832 | — | % |
(a) | Kansas Gas has an approved weather normalization mechanism within its rate structure, which minimizes weather impact on gross margins. Arkansas has a weather normalization mechanism in effect during the months of November through April and is included for those customers with residential and business rate schedules. The weather normalization mechanism in Arkansas differs from that in Kansas in that it only uses one location to calculate the weather, compared to Kansas, which uses multiple locations. The weather normalization mechanism in Arkansas minimizes weather impact, but does not eliminate the impact. |
(b) | The combined heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas due to its weather normalization mechanism. |
(c) | The combined 2015 variance from 30-Year Average reflects the inclusion of Cheyenne Light’s natural gas utility operations. |
Subsidiary | Jurisdic-tion | Authorized Rate of Return on Equity | Authorized Return on Rate Base | Capital Structure Debt/Equity | Authorized Rate Base (in millions) | Effective Date | Tariff and Rate Matters |
Arkansas Gas | AR | 9.4% | 6.47%(a) | 52%/48% | $299.4(b) | 2/2015 | Gas Cost Adjustment, Main Replacement Program, At-Risk Meter Replacement Program, legislative/regulatory mandate and relocations rider, Energy Efficiency, Weather Normalization Adjustment, Billing Determinant Adjustment |
Colorado Gas | CO | 10% | 8.02% | 49.52%/50.48% | $127.1 | 12/2010 | Gas Cost Adjustment, DSM |
Nebraska Gas | NE | 9.60% | 7.67% | 48.84%/51.16% | $87.6/$69.8(c) | 6/2012 | Choice Gas Program, System Safety and Integrity Rider, Bad Debt expense recovered through Choice supplier fee |
Wyoming Gas | WY | 9.92% | 7.98% | 49.66%/50.34% | $100.5 | 1/2011 | Choice Gas Program, Purchased Gas Cost Adjustment, Usage Per Customer Adjustment |
RMNG | CO | 10.6% | 7.93% | 49.23%/50.77% | $90.5 | 3/2013 | System Safety Integrity Rider, liquids/off-system/market center services Revenue Sharing |
(a) | Arkansas return on rate base adjusted to remove current liabilities from rate case capital structure for comparison with other subsidiaries. |
(b) | Arkansas rate base adjusted to include current liabilities for comparison with other subsidiaries. |
(c) | Total Nebraska rate base of $87.6 million includes amounts allocated to serve non-jurisdictional and agricultural customers. Jurisdictional Nebraska rate base of $69.8 million excludes those amounts allocated to serve non-jurisdictional and agricultural customers and is used for calculation of jurisdictional base rates. |
• | In Arkansas, we have tariff adjustment mechanisms for weather normalization and revenue erosion from a decline in billing determinants. We also have tariffs that allow more timely recovery of main replacements, at-risk meter replacements and expenditures due to legislative/regulatory mandates and relocations outside of a rate case. |
• | In Nebraska and for RMNG, we have a system safety and integrity rider that recovers forecast safety and integrity capital expenditure-related costs and operating and maintenance expenses. |
• | In Nebraska, we are allowed to recover uncollectible accounts expenses through a choice supplier fee. |
• | In Wyoming, we have a cost adjustment to recover lost revenue due to declining usage per customer and a rider to recover the cost of replacing above ground pipe. |
Type of Service | Date Requested | Effective Date | Revenue Amount Requested | Revenue Amount Approved | |||||
Arkansas Gas (a) | Gas | 4/2015 | 2/2016 | $ | 12.6 | $ | 8.0 | ||
RMNG(b) | Gas - transmission and storage | 11/2015 | 1/2016 | $ | 1.5 | $ | 1.5 | ||
Nebraska Gas (c) | Gas | 10/2015 | 2/2016 | $ | 3.8 | $ | 3.8 | ||
Wyoming Gas (d) | Gas | 2/2010 | 1/2011 | $ | 7.5 | $ | 4.3 | ||
Colorado Gas (e) | Gas | 6/2010 | 12/2010 | $ | 6.0 | $ | 2.8 |
(a) | In February 2016, Arkansas Gas implemented new base rates resulting in a revenue increase of $8.0 million. The APSC modified a stipulation reached between the APSC Staff and all intervenors except the Attorney General and Arkansas Gas in its order issued on January 28, 2016. The modified stipulation revised the capital structure to 52% debt and 48% equity and also limited recovery of portions of cost related to incentive compensation. |
(b) | On November 1, 2015, RMNG filed with the CPUC requesting recovery of $1.5 million related to system safety and integrity “SSIR” expenditures expected to be incurred in 2016. The SSIR rate was adjusted downward to reflect a true up of $0.7 million from the expenditure projection for 2014. The SSIR tariff was allowed to go into effect by operation of law on January 1, 2016. |
(c) | On November 1, 2015, Nebraska Gas filed with the NPSC requesting recovery of $3.8 million related to system safety and integrity expenditures expected to be incurred in 2016. The SSIR tariff was approved by the NPSC on January 12, 2016 to go into effect on February 1, 2016. |
(d) | On January 1, 2011, Wyoming Gas implemented new base rates in accordance with the order by the WPSC issued on December 23, 2010. The approved rates were based upon an authorized return on equity of 9.92% and a capital structure of 49.66% debt and 50.34% equity. The rate increase represented a $4.3 million increase over existing rates. |
(e) | On December 1, 2010, the CPUC issued an order approving a stipulation to increase Colorado Gas base rates by $2.8 million. The stipulated rate increase was based upon an authorized return on equity of 10.00% and a capital structure of 49.23% debt and 50.77% equity. Increased rates became effective on December 3, 2010. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Variance | 2016 | 2015 | Variance | |||||||||||||
(in thousands) | ||||||||||||||||||
Revenue (a) | $ | 21,714 | $ | 22,309 | $ | (595 | ) | $ | 45,022 | $ | 44,983 | $ | 39 | |||||
Operations and maintenance | 8,648 | 8,483 | 165 | 16,690 | 16,311 | 379 | ||||||||||||
Depreciation and amortization (a) | 1,053 | 1,115 | (62 | ) | 2,084 | 2,249 | (165 | ) | ||||||||||
Total operating expense | 9,701 | 9,598 | 103 | 18,774 | 18,560 | 214 | ||||||||||||
Operating income | 12,013 | 12,711 | (698 | ) | 26,248 | 26,423 | (175 | ) | ||||||||||
Interest expense, net | (120 | ) | (788 | ) | 668 | (934 | ) | (1,674 | ) | 740 | ||||||||
Other (expense) income, net | (19 | ) | 7 | (26 | ) | 4 | 5 | (1 | ) | |||||||||
Income tax (expense) benefit | (3,559 | ) | (4,381 | ) | 822 | (8,421 | ) | (9,060 | ) | 639 | ||||||||
Net income (loss) | $ | 8,315 | $ | 7,549 | $ | 766 | $ | 16,897 | $ | 15,694 | $ | 1,203 | ||||||
Net income attributable to noncontrolling interest | (2,632 | ) | — | (2,632 | ) | (2,632 | ) | — | (2,632 | ) | ||||||||
Net income (loss) available for common stock | $ | 5,683 | $ | 7,549 | $ | (1,866 | ) | $ | 14,265 | $ | 15,694 | $ | (1,429 | ) |
(a) | The generating facility located in Pueblo, Colorado is accounted for as a capital lease under GAAP; as such, revenue and depreciation expense are impacted by the accounting for this lease. Under the lease, the original cost of the facility is recorded at Colorado Electric and is being depreciated by Colorado Electric for segment reporting purposes. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||
Quantities Sold, Generated and Purchased (MWh) (a) | |||||||||
Sold | |||||||||
Black Hills Colorado IPP | 310,442 | 267,360 | 644,320 | 551,851 | |||||
Black Hills Wyoming (b) | 141,976 | 165,557 | 309,007 | 325,115 | |||||
Total Sold | 452,418 | 432,917 | 953,327 | 876,966 | |||||
Generated | |||||||||
Black Hills Colorado IPP | 310,442 | 267,360 | 644,320 | 551,851 | |||||
Black Hills Wyoming | 119,985 | 139,267 | 258,904 | 277,240 | |||||
Total Generated | 430,427 | 406,627 | 903,224 | 829,091 | |||||
Purchased | |||||||||
Black Hills Wyoming (b) | 16,936 | 13,099 | 45,239 | 37,491 | |||||
Total Purchased | 16,936 | 13,099 | 45,239 | 37,491 |
(a) | Company uses and losses are not included in the quantities sold, generated, and purchased. |
(b) | Under the 20-year economy energy PPA with the City of Gillette, effective September 2014, Black Hills Wyoming purchases energy on behalf of the City of Gillette and sells that energy to the City of Gillette. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||
Contracted power plant fleet availability: | |||||||||
Coal-fired plant (a) | 85.9 | % | 97.4 | % | 91.8 | % | 97.8 | % | |
Natural gas-fired plants | 99.2 | % | 99.0 | % | 99.3 | % | 99.0 | % | |
Total availability | 95.8 | % | 98.6 | % | 97.4 | % | 98.7 | % |
(a) | Decrease due to a planned outage on Wygen I during the three months ended June 30, 2016. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Variance | 2016 | 2015 | Variance | |||||||||||||
(in thousands) | ||||||||||||||||||
Revenue | $ | 11,047 | $ | 16,725 | $ | (5,678 | ) | $ | 27,329 | $ | 32,659 | $ | (5,330 | ) | ||||
Operations and maintenance | 8,287 | 10,661 | (2,374 | ) | 18,721 | 20,565 | (1,844 | ) | ||||||||||
Depreciation, depletion and amortization | 2,448 | 2,461 | (13 | ) | 4,927 | 4,964 | (37 | ) | ||||||||||
Total operating expenses | 10,735 | 13,122 | (2,387 | ) | 23,648 | 25,529 | (1,881 | ) | ||||||||||
Operating income (loss) | 312 | 3,603 | (3,291 | ) | 3,681 | 7,130 | (3,449 | ) | ||||||||||
Interest (expense) income, net | (91 | ) | (102 | ) | 11 | (183 | ) | (191 | ) | 8 | ||||||||
Other income, net | 532 | 548 | (16 | ) | 1,066 | 1,133 | (67 | ) | ||||||||||
Income tax benefit (expense) | (29 | ) | (1,000 | ) | 971 | (902 | ) | (2,013 | ) | 1,111 | ||||||||
Net income (loss) | $ | 724 | $ | 3,049 | $ | (2,325 | ) | $ | 3,662 | $ | 6,059 | $ | (2,397 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Tons of coal sold | 614 | 1,076 | 1,616 | 2,095 | |||||||||
Cubic yards of overburden moved (a) | 1,686 | 1,392 | 3,451 | 2,805 | |||||||||
Revenue per ton | $ | 17.99 | $ | 15.54 | $ | 16.91 | $ | 15.59 |
(a) | Increase is driven by mining in areas with more overburden than in the prior year. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2016 | 2015 | Variance | 2016 | 2015 | Variance | |||||||||||||
(in thousands) | ||||||||||||||||||
Revenue | $ | 7,646 | $ | 12,319 | $ | (4,673 | ) | $ | 16,021 | $ | 23,586 | $ | (7,565 | ) | ||||
Operations and maintenance | 7,912 | 10,988 | (3,076 | ) | 16,947 | 21,905 | (4,958 | ) | ||||||||||
Depreciation, depletion and amortization | 3,819 | 8,790 | (4,971 | ) | 7,932 | 16,301 | (8,369 | ) | ||||||||||
Impairment of long-lived assets | 25,497 | 94,484 | (68,987 | ) | 39,993 | 116,520 | (76,527 | ) | ||||||||||
Total operating expenses | 37,228 | 114,262 | (77,034 | ) | 64,872 | 154,726 | (89,854 | ) | ||||||||||
Operating income (loss) | (29,582 | ) | (101,943 | ) | 72,361 | (48,851 | ) | (131,140 | ) | 82,289 | ||||||||
Interest income (expense), net | (1,159 | ) | (478 | ) | (681 | ) | (2,233 | ) | (862 | ) | (1,371 | ) | ||||||
Other income (expense), net | 30 | 7 | 23 | 69 | (216 | ) | 285 | |||||||||||
Impairment of equity investments | — | (5,170 | ) | 5,170 | — | (5,170 | ) | 5,170 | ||||||||||
Income tax benefit (expense) | 11,287 | 36,389 | (25,102 | ) | 24,567 | 47,078 | (22,511 | ) | ||||||||||
Net income (loss) | $ | (19,424 | ) | $ | (71,195 | ) | $ | 51,771 | $ | (26,448 | ) | $ | (90,310 | ) | $ | 63,862 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2016 | 2015 | 2016 | 2015 | ||||||
Production: | |||||||||
Bbls of oil sold | 76,152 | 98,905 | 174,219 | 179,635 | |||||
Mcf of natural gas sold | 2,435,454 | 2,701,721 | 4,722,060 | 4,955,763 | |||||
Bbls of NGL sold | 40,892 | 33,271 | 77,895 | 62,041 | |||||
Mcf equivalent sales | 3,137,718 | 3,494,780 | 6,234,744 | 6,405,823 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
Average price received: (a) (b) | |||||||||||||
Oil/Bbl | $ | 60.16 | $ | 65.09 | $ | 53.22 | $ | 65.88 | |||||
Gas/Mcf | $ | 0.93 | $ | 1.79 | $ | 1.11 | $ | 1.98 | |||||
NGL/Bbl | $ | 11.23 | $ | 19.82 | $ | 10.82 | $ | 17.00 | |||||
Depletion expense/Mcfe | $ | 0.83 | $ | 2.22 | $ | 0.88 | $ | 2.21 |
(a) | Net of hedge settlement gains and losses. |
(b) | Pre-tax impairments of long-lived Oil and Gas properties of $25 million and $40 million, and $94 million and $117 million were recorded for the three and six months ended June 30, 2016 and June 30, 2015, respectively. |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | ||||||||||||||||||||||||
Producing Basin | LOE | Gathering, Compression, Processing and Transportation (a) | Production Taxes | Total | LOE | Gathering, Compression, Processing and Transportation (a) | Production Taxes | Total | |||||||||||||||||
San Juan | $ | 1.51 | $ | 1.05 | $ | 0.23 | $ | 2.79 | $ | 1.25 | $ | 1.38 | $ | 0.57 | $ | 3.20 | |||||||||
Piceance | 0.34 | 1.80 | 0.09 | 2.23 | 0.62 | 1.76 | 0.17 | 2.55 | |||||||||||||||||
Powder River | 2.95 | — | 0.57 | 3.52 | 2.09 | — | 0.83 | 2.92 | |||||||||||||||||
Williston | 2.88 | — | 1.00 | 3.88 | 1.13 | — | 0.36 | 1.49 | |||||||||||||||||
All other properties | 0.19 | — | 0.12 | 0.31 | 2.10 | — | 1.08 | 3.18 | |||||||||||||||||
Total weighted average | $ | 1.07 | $ | 1.20 | $ | 0.23 | $ | 2.50 | $ | 1.12 | $ | 1.18 | $ | 0.44 | $ | 2.74 |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||||
Producing Basin | LOE | Gathering, Compression, Processing and Transportation (a) | Production Taxes | Total | LOE | Gathering, Compression, Processing and Transportation (a) | Production Taxes | Total | |||||||||||||||||
San Juan | $ | 1.63 | $ | 1.07 | $ | 0.27 | $ | 2.97 | $ | 1.42 | $ | 1.34 | $ | 0.47 | $ | 3.23 | |||||||||
Piceance | 0.34 | 1.87 | 0.11 | 2.32 | 0.51 | 2.05 | 0.18 | 2.74 | |||||||||||||||||
Powder River | 2.78 | — | 0.56 | 3.34 | 2.47 | — | 0.70 | 3.17 | |||||||||||||||||
Williston | 1.53 | — | 0.52 | 2.05 | 0.74 | — | 0.24 | 0.98 | |||||||||||||||||
All other properties | 0.40 | — | 0.07 | 0.47 | 1.64 | — | 0.68 | 2.32 | |||||||||||||||||
Total weighted average | $ | 1.08 | $ | 1.17 | $ | 0.24 | $ | 2.49 | $ | 1.15 | $ | 1.25 | $ | 0.38 | $ | 2.78 |
(a) | These costs include both third-party costs and operations costs. |
Cash provided by (used in): | 2016 | 2015 | Increase (Decrease) | ||||||
Operating activities | $ | 222,775 | $ | 254,408 | $ | (31,633 | ) | ||
Investing activities | $ | (1,324,741 | ) | $ | (207,124 | ) | $ | (1,117,617 | ) |
Financing activities | $ | 762,236 | $ | 18,708 | $ | 743,528 |
• | Cash earnings (net income plus non-cash adjustments) were $17 million higher for the six months ended June 30, 2016 compared to the same period in the prior year; and |
• | Net cash inflows from operating assets and liabilities were $20 million for the six months ended June 30, 2016, compared to net cash inflows of $52 million in the same period in the prior year. This $32 million variance was primarily due to: |
• | Cash inflows increased by approximately $17 million for the six months ended June 30, 2016 compared to the same period in the prior year primarily as a result of changes in accounts receivable and materials and supplies; |
• | Cash inflows decreased by approximately $30 million primarily as a result of changes in our current regulatory assets and liabilities driven by differences in fuel cost adjustments and commodity price impacts on working capital compared to the same period in the prior year; |
• | Cash outflows increased by approximately $19 million as a result of changes in accounts payable and accrued liabilities driven primarily by working capital requirements primarily related to acquisition and transition costs and the change in liability with respect to uncertain tax positions in the six months ended June 30, 2016; |
• | Cash outflows increased by $10 million due to pension contributions; and |
• | Cash outflows increased by approximately $6 million primarily driven by changes in other non-current assets and other regulatory assets and liabilities. |
• | Cash outflows of $1.124 billion for the acquisition of SourceGas, net of $11 million cash received from a working capital adjustment and $760 million of long term debt assumed (see Note 2 in Item 1 of Part I of this Quarterly Report on Form 10-Q); and |
• | Capital expenditures of approximately $200 million for the six months ended June 30, 2016 compared to $206 million for the six months ended June 30, 2015. The decrease is primarily due to higher prior year capital expenditures at our Oil and Gas segment due to drilling and completion activity in the Piceance basin, partially offset by current year capital expenditures at our Electric and Gas Utilities. |
• | Proceeds of $216 million from the sale of a 49.9% noncontrolling interest of Black Hills Colorado IPP; (see Note 11 in Item 1 of Part I of this Quarterly Report on Form 10-Q) |
• | Long-term borrowings increased by $275 million due to the $546 million of net proceeds from our January 13, 2016 public debt offering used to partially finance the SourceGas Acquisition, and proceeds from a $29 million term loan used to fund the early settlement of a gas gathering contract, compared to proceeds of $300 million from long-term borrowings from a term loan in the prior year; |
• | Payments on long term borrowings decreased by $234 million due to payments made in the current year of $41 million compared to the payment of a $275 million made as part of a term-loan refinancing in the prior year; |
• | Proceeds of approximately $56 million from issuing common stock under our ATM equity offering program; |
• | Net short-term borrowings under the revolving credit facility for the six months ended June 30, 2016 were $33 million lower than the prior year primarily due to using proceeds of our ATM equity offering program to fund working capital requirements in the current year; and |
• | Increased dividend payments of approximately $7.0 million. |
Current | Borrowings at | Letters of Credit at | Available Capacity at | ||||||||||
Credit Facility | Expiration | Capacity | June 30, 2016 | June 30, 2016 | June 30, 2016 | ||||||||
Revolving Credit Facility | June 26, 2020 | $ | 500 | $ | 75 | $ | 25 | $ | 400 |
• | On January 13, 2016, we completed a public debt offering of $550 million in senior unsecured notes. The debt offering consisted of $300 million of 3.95%, 10-year senior notes due 2026, and $250 million of 2.5%, 3-year senior notes due 2019. Net proceeds after discounts and fees were approximately $546 million; and |
• | On November 23, 2015, we completed offerings of common stock and equity units. We issued 6.325 million shares of common stock for net proceeds of $246 million and 5.98 million equity units for net proceeds of $290 million. Each equity unit has a stated amount of $50 and consists of (i) a contract to purchase Company common stock and (ii) a 1/20, or 5%, undivided beneficial ownership interest in $1,000 principal amount of remarketable junior subordinated notes due 2028. Pursuant to the purchase contracts, holders are required to purchase Company common stock no later than November 1, 2018. |
• | $325 million, 5.9% senior unsecured notes with an original issue date of April 16, 2007, due April 16, 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 expense under this term loan is LIBOR plus a margin of 0.88%. |
• | Continue our At-the-Market equity offering program to issue up to $200 million of common stock; |
• | Extend and upsize our existing $500 million Revolving Credit Facility to $750 million with a one year extension to 2021; |
• | Implement a commercial paper program; and |
• | Refinance approximately $1 billion of near-term debt maturities; any such refinancing may include, among other things, any one or more of the following; a potential issuance of new debt securities in the capital markets, the incurrence of new debt under new or existing credit facilities, amendments to our existing credit facilities, redemption or early prepayment of certain debt; and the settlement or early termination of all or part of our interest rate hedges. Any such new debt issued or incurred will be used to repay existing debt and terminate interest rate hedges of the Company and its subsidiaries. |
Rating Agency | Senior Unsecured Rating | Outlook |
S&P (a) | BBB | Stable |
Moody’s (b) | Baa1 | Negative |
Fitch (c) | BBB+ | Negative |
(a) | On February 12, 2016, S&P affirmed BBB rating and maintained a Stable outlook following the closing of the SourceGas Acquisition, reflecting their expectation that management will continue to focus on the core utility operations while maintaining an excellent business risk profile following the acquisition. |
(b) | On February 12, 2016, Moody’s affirmed Baa1 rating and maintained a Negative outlook following the closing of the SourceGas Acquisition. Moody’s has maintained a negative outlook as BHC focuses on integrating the newly acquired SourceGas assets over 12 months following the acquisition, closing the 49.9% minority interest sale of Colorado IPP and implementing and utilizing an at-the-market (ATM) equity offering program. In addition, the negative outlook reflects overall weaker consolidated metrics when compared to historical ranges. |
(c) | On February 12, 2016, Fitch affirmed BBB+ rating and maintained a Negative outlook following the closing of the SourceGas Acquisition, which reflects the initial increased leverage associated with the SourceGas acquisition. |
Rating Agency | Senior Secured Rating |
S&P | A- |
Moody’s | A1 |
Fitch | A |
Rating Agency | Senior Unsecured Rating | Outlook |
S&P | BBB | Stable |
Moody’s | Baa1 | Stable |
Fitch | BBB+ | Positive |
Expenditures for the | Total | Total | Total | ||||||||||||
Six Months Ended June 30, 2016 (a) | 2016 Planned Expenditures (b)(c) | 2017 Planned Expenditures | 2018 Planned Expenditures | ||||||||||||
Electric Utilities (c) | $ | 135,520 | $ | 324,000 | $ | 140,000 | $ | 148,000 | |||||||
Gas Utilities (d) | 73,560 | 163,000 | 179,000 | 156,000 | |||||||||||
Power Generation | 4,260 | 4,000 | 5,000 | 1,000 | |||||||||||
Mining | 1,390 | 6,000 | 7,000 | 7,000 | |||||||||||
Oil and Gas | 1,240 | 14,000 | 10,000 | 10,000 | |||||||||||
Corporate (e) | 2,120 | 10,000 | 10,000 | 9,000 | |||||||||||
$ | 218,090 | $ | 521,000 | $ | 351,000 | $ | 331,000 |
(c) | 2016 forecasted capital expenditures for the electric utilities include approximately $97 million for the Peak View Wind Project and the remaining $29 million for Colorado Electric’s 40 MW natural gas fired generating unit. |
(d) | Includes planned expenditures for Black Hills Gas Holdings of $107 million, $105 million and $78 million for 2016, 2017 and 2018, respectively. |
(e) | Approximately $8 million of capital previously reported as Corporate has been charged to the utilities. |
Payments Due by Calendar Period | |||||||||||||||
Contractual Obligations | Total | 2016 | 2017-2018 | 2019-2020 | Thereafter | ||||||||||
Long-term debt(a)(b) | $ | 3,170,405 | $ | 2,871 | $ | 936,486 | $ | 560,757 | $ | 1,670,291 | |||||
Unconditional purchase obligations(c) | 861,381 | 89,688 | 282,944 | 170,366 | 318,383 | ||||||||||
Operating lease obligations(d) | 27,613 | 2,701 | 9,183 | 6,204 | 9,525 | ||||||||||
Other long-term obligations(e) | 46,192 | — | — | — | 46,192 | ||||||||||
Employee benefit plans(f) | 161,054 | 15,859 | 48,050 | 32,132 | 65,013 | ||||||||||
Liability for unrecognized tax benefits in accordance with accounting guidance for uncertain tax positions(g) | 31,986 | 26,285 | 5,701 | — | — | ||||||||||
Notes payable | 75,000 | 75,000 | — | — | — | ||||||||||
Total contractual cash obligations(h) | $ | 4,373,631 | $ | 212,404 | $ | 1,282,364 | $ | 769,459 | $ | 2,109,404 |
(a) | Long-term debt amounts do not include discounts or premiums on debt. |
(b) | The following amounts are estimated for interest payments over the next five years based on a mid-year retirement date for long-term debt expiring during the identified period and are not included within the long-term debt balances presented: $80 million in 2016, $111 million in 2017, $98 million in 2018, $95 million in 2019 and $87 million in 2020. Estimated interest payments on variable rate debt are calculated by utilizing the applicable rates as of June 30, 2016. |
(c) | Unconditional purchase obligations include the energy and capacity costs associated with our PPAs, capacity and certain transmission, gas transportation and storage agreements, and gathering commitments for our Oil and Gas segment. The energy charge under the PPAs are variable costs, which for purposes of estimating our future obligations, were based on costs incurred during 2016 and price assumptions using existing prices at June 30, 2016. Our transmission obligations are based on filed tariffs as of December 31, 2015. A portion of our gas purchases are purchased under evergreen contracts and therefore, for purposes of this disclosure, are carried out for 60 days. The gathering commitments for our Oil and Gas segment are described in Part I, Delivery Commitments, of our 2015 Annual Report filed on Form 10-K. |
(d) | Includes operating leases associated with several office buildings, warehouses and call centers, equipment and vehicles. |
(e) | Includes estimated asset retirement obligations associated with our Electric Utilities, Gas Utilities, Mining and Oil and Gas segments as discussed in Note 8 of the Notes to Consolidated Financial Statements in our 2015 Annual Report on Form 10-K. |
(f) | Represents both estimated employer contributions to Defined Benefit Pension Plans and payments to employees for the Non-Pension Defined Benefit Postretirement Healthcare Plans and the Supplemental Non-Qualified Defined Benefit Plans through the year 2024. |
(g) | Less than 1 Year includes a reversal of approximately $26 million associated with the gain deferred from the tax treatment related to the IPP Transaction and the Aquila Transaction. Such reversal is the result of an agreement that was reached with IRS Appeals during the first quarter of 2016. See Note 20 for additional details. |
(h) | Amounts in the table exclude: (1) any obligation that may arise from our derivatives, including interest rate swaps and commodity related contracts that have a negative fair value at June 30, 2016. These amounts have been excluded as it is impractical to reasonably estimate the final amount and/or timing of any associated payments; and (2) a portion of our gas purchases are hedged. These hedges are in place to reduce our customers' underlying exposure to commodity price fluctuations. The impact of these hedges is not included in the above table. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
Net derivative (liabilities) assets | $ | (7,894 | ) | $ | (22,292 | ) | $ | (16,181 | ) | ||
Cash collateral offset in Derivatives | 10,251 | 22,292 | 16,181 | ||||||||
Cash collateral included in Other current assets | 8,067 | 5,367 | 5,059 | ||||||||
Net asset (liability) position | $ | 10,424 | $ | 5,367 | $ | 5,059 |
March 31 | June 30 | September 30 | December 31 | Total Year | |||||||||||
2016 | |||||||||||||||
Swaps - MMBtu | — | — | 905,000 | 545,000 | 1,450,000 | ||||||||||
Weighted Average Price per MMBtu | $ | — | $ | — | $ | 3.51 | $ | 3.90 | $ | 3.66 | |||||
2017 | |||||||||||||||
Swaps - MMBtu | 270,000 | 270,000 | 270,000 | 270,000 | 1,080,000 | ||||||||||
Weighted Average Price per MMBtu | $ | 2.88 | $ | 2.88 | $ | 2.88 | $ | 2.88 | $ | 2.88 |
March 31 | June 30 | September 30 | December 31 | Total Year | |||||||||||
2016 | |||||||||||||||
Swaps - Bbls | — | — | 51,000 | 51,000 | 102,000 | ||||||||||
Weighted Average Price per Bbl | $ | — | $ | — | $ | 72.83 | $ | 73.14 | $ | 72.98 | |||||
2017 | |||||||||||||||
Swaps - Bbls | 18,000 | 18,000 | 18,000 | 18,000 | 72,000 | ||||||||||
Weighted Average Price per Bbl | $ | 50.07 | $ | 50.85 | $ | 51.55 | $ | 52.33 | $ | 51.20 | |||||
2018 | |||||||||||||||
Swaps - Bbls | 9,000 | 9,000 | 9,000 | 9,000 | 36,000 | ||||||||||
Weighted Average Price per Bbl | $ | 49.58 | $ | 49.85 | $ | 50.12 | $ | 50.45 | $ | 50.00 |
June 30, 2016 | December 31, 2015 | June 30, 2015 | |||||||||
Net derivative (liabilities) assets | $ | 2,520 | $ | 10,088 | $ | 8,940 | |||||
Cash collateral offset in Derivatives | (1,150 | ) | (10,088 | ) | (8,940 | ) | |||||
Cash Collateral included in Other current assets | — | 1,673 | 2,119 | ||||||||
Net asset (liability) position | $ | 1,370 | $ | 1,673 | $ | 2,119 |
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||||||||||
Designated Interest Rate Swaps (a) | Designated Interest Rate Swaps (a) | Designated Interest Rate Swaps (b) | Designated Interest Rate Swaps (a) | Designated Interest Rate Swaps (b) | Designated Interest Rate Swaps (b) | |||||||||||||||
Notional | $ | 150,000 | $ | 250,000 | $ | 75,000 | $ | 250,000 | $ | 75,000 | $ | 75,000 | ||||||||
Weighted average fixed interest rate | 2.09 | % | 2.29 | % | 4.97 | % | 2.29 | % | 4.97 | % | 4.97 | % | ||||||||
Maximum terms in years | 0.83 | 0.83 | 0.50 | 1.33 | 1.00 | 1.50 | ||||||||||||||
Derivative assets, non-current | $ | — | $ | — | $ | — | $ | 3,441 | $ | — | $ | — | ||||||||
Derivative liabilities, current | $ | 8,553 | $ | 18,500 | $ | 1,505 | $ | — | $ | 2,835 | $ | 3,289 | ||||||||
Derivative liabilities, non-current | $ | — | $ | — | $ | — | $ | — | $ | 156 | $ | 1,433 | ||||||||
Pre-tax accumulated other comprehensive income (loss) | $ | (8,553 | ) | $ | (18,500 | ) | $ | (1,505 | ) | $ | 3,441 | $ | (2,991 | ) | $ | (4,722 | ) |
(a) | These swaps are designated as cash flow hedges of anticipated debt refinancings. |
(b) | These swaps are designated to borrowings on our Revolving Credit Facility and are priced using three-month LIBOR, matching the floating portion of the related borrowings. |
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 |
Exhibit Number | Description |
Exhibit 2.1* | Purchase and Sale Agreement by and among Alinda Gas Delaware LLC, Alinda Infrastructure Fund I, L.P. and Aircraft Services Corporation, as Sellers, and Black Hills Utility Holdings, Inc., as Buyer dated as of July 12, 2015 (filed as Exhibit 2.1 to the Registrant's Form 8-K file on July 14, 2015). First Amendment to Purchase and Sale Agreement effective December 10, 2015, by and among, Alinda Gas Delaware LLC, Alinda Infrastructure Fund I L.P. and Aircraft Services Corporation, as Sellers, and Black Hills Utility Holdings, Inc., as Buyer (filed as Exhibit 2.2 to the Registrant’s Form 10-K for 2015). |
Exhibit 2.2* | Option Agreement by and among Aircraft Services Corporation, as ASC, SourceGas Holdings LLC, as the Company and Black Hills Utility Holdings, Inc., as Buyer (filed as Exhibit 2.2 to the Registrant's Form 8-K file on July 14, 2015). |
Exhibit 2.3* | Guaranty of Black Hills Corporation in favor of Alinda Gas Delaware LLC, Alinda Infrastructure Fund I, L.P. and Aircraft Services Corporation, dated as of July 12, 2015 (filed as Exhibit 2.3 to the Registrant's Form 8-K file on July 14, 2015). |
Exhibit 3.1* | Restated Articles of Incorporation of the Registrant (filed as Exhibit 3 to the Registrant’s Form 10-K for 2004). |
Exhibit 3.2* | Amended and Restated Bylaws of the Registrant dated January 28, 2010 (filed as Exhibit 3 to the Registrant’s Form 8-K filed on February 3, 2010). |
Exhibit 4.1* | Indenture dated as of May 21, 2003 between the Registrant and Wells Fargo Bank, National Association (as successor to LaSalle Bank National Association), as Trustee (filed as Exhibit 4.1 to the Registrant’s Form 10-Q for the quarterly period ended June 30, 2003). First Supplemental Indenture dated as of May 21, 2003 (filed as Exhibit 4.2 to the Registrant’s Form 10-Q for the quarterly period ended June 30, 2003). Second Supplemental Indenture dated as of May 14, 2009 (filed as Exhibit 4 to the Registrant’s Form 8-K filed on May 14, 2009). Third Supplemental Indenture dated as of July 16, 2010 (filed as Exhibit 4 to Registrant’s Form 8-K filed on July 15, 2010). Fourth Supplemental Indenture dated as of November 19, 2013 (filed as Exhibit 4 to the Registrant’s Form 8-K filed on November 18, 2013). Fifth Supplemental Indenture dated as of January 13, 2016 (filed as Exhibit 4.1 to the Registrant’s Form 8-K filed on January 13, 2016). |
Exhibit 4.2* | Restated and Amended Indenture of Mortgage and Deed of Trust of Black Hills Corporation (now called Black Hills Power, Inc.) dated as of September 1, 1999 (filed as Exhibit 4.19 to the Registrant’s Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S-3 (No. 333-150669)). First Supplemental Indenture, dated as of August 13, 2002, between Black Hills Power, Inc. and The Bank of New York Mellon (as successor to JPMorgan Chase Bank), as Trustee (filed as Exhibit 4.20 to the Registrant’s Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S‑3 (No. 333‑150669)). Second Supplemental Indenture, dated as of October 27, 2009, between Black Hills Power, Inc. and The Bank of New York Mellon (filed as Exhibit 4.21 to the Registrant’s Post-Effective Amendment No. 2 to the Registrant’s Registration Statement on Form S-3 (No. 333-150669)). Third Supplemental Indenture, dated as of October 1, 2014, between Black Hills Power, Inc. and The Bank of New York Mellon (filed as Exhibit 10.1 to the Registrant’s Form 8-K filed on October 2, 2014). |
Exhibit 4.3* | Restated Indenture of Mortgage, Deed of Trust, Security Agreement and Financing Statement, amended and restated as of November 20, 2007, between Cheyenne Light, Fuel and Power Company and Wells Fargo Bank, National Association (filed as Exhibit 10.2 to the Registrant’s Form 8-K filed on October 2, 2014). First Supplemental Indenture, dated as of September 3, 2009, between Cheyenne Light, Fuel and Power Company and Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Form 8-K filed on October 2, 2014). Second Supplemental Indenture, dated as of October 1, 2014, between Cheyenne Light, Fuel and Power Company and Wells Fargo Bank, National Association (filed as Exhibit 10.4 to the Registrant’s Form 8-K filed on October 2, 2014). |
Exhibit 4.4* | Junior Subordinated Indenture dated as of November 23, 2015 between Black Hills Corporation and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Registrant’s Form 8-K filed on November 23, 2015). First Supplemental Indenture dated as of November 23, 2015 (filed as Exhibit 4.2 to the Registrant’s Form 8-K filed on November 23, 2015). |
Exhibit 4.5* | Purchase Contract and Pledge Agreement dated as of November 23, 2015 between Black Hills Corporation and U.S. Bank National Association, as purchase contract agent, collateral agent, custodial agent and securities intermediary (filed as Exhibit 4.4 to the Registrant’s Form 8-K filed on November 23, 2015). |
Exhibit 4.6* | Indenture dated as of April 16, 2007 between SourceGas LLC and U.S. Bank National Association, as Trustee (relating to $325 million, 5.90% Senior Notes due 2017) (filed as Exhibit 10.1 to the Registrant’s Form 8-K filed on March 18, 2016). |
Exhibit 4.7* | Form of Stock Certificate for Common Stock, Par Value $1.00 Per Share (filed as Exhibit 4.2 to the Registrant’s Form 10-K for 2000). |
Exhibit 12 | Computation of Ratio of Earnings to Fixed Charges |
Exhibit 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002. |
Exhibit 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002. |
Exhibit 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002. |
Exhibit 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002. |
Exhibit 95 | Mine Safety and Health Administration Safety Data. |
Exhibit 101 | Financial Statements for XBRL Format. |
* | Previously filed as part of the filing indicated and incorporated by reference herein. |
† | Indicates a board of director or management compensatory plan. |
/s/ David R. Emery | ||
David R. Emery, Chairman and | ||
Chief Executive Officer | ||
/s/ Richard W. Kinzley | ||
Richard W. Kinzley, Senior Vice President and | ||
Chief Financial Officer | ||
Dated: | August 4, 2016 |
Exhibit Number | Description |
Exhibit 2.1* | Purchase and Sale Agreement by and among Alinda Gas Delaware LLC, Alinda Infrastructure Fund I, L.P. and Aircraft Services Corporation, as Sellers, and Black Hills Utility Holdings, Inc., as Buyer dated as of July 12, 2015 (filed as Exhibit 2.1 to the Registrant's Form 8-K file on July 14, 2015). First Amendment to Purchase and Sale Agreement effective December 10, 2015, by and among, Alinda Gas Delaware LLC, Alinda Infrastructure Fund I L.P. and Aircraft Services Corporation, as Sellers, and Black Hills Utility Holdings, Inc., as Buyer (filed as Exhibit 2.2 to the Registrant’s Form 10-K for 2015). |
Exhibit 2.2* | Option Agreement by and among Aircraft Services Corporation, as ASC, SourceGas Holdings LLC, as the Company and Black Hills Utility Holdings, Inc., as Buyer (filed as Exhibit 2.2 to the Registrant's Form 8-K file on July 14, 2015). |
Exhibit 2.3* | Guaranty of Black Hills Corporation in favor of Alinda Gas Delaware LLC, Alinda Infrastructure Fund I, L.P. and Aircraft Services Corporation, dated as of July 12, 2015 (filed as Exhibit 2.3 to the Registrant's Form 8-K file on July 14, 2015). |
Exhibit 3.1* | Restated Articles of Incorporation of the Registrant (filed as Exhibit 3 to the Registrant’s Form 10-K for 2004). |
Exhibit 3.2* | Amended and Restated Bylaws of the Registrant dated January 28, 2010 (filed as Exhibit 3 to the Registrant’s Form 8-K filed on February 3, 2010). |
Exhibit 4.1* | Indenture dated as of May 21, 2003 between the Registrant and Wells Fargo Bank, National Association (as successor to LaSalle Bank National Association), as Trustee (filed as Exhibit 4.1 to the Registrant’s Form 10-Q for the quarterly period ended June 30, 2003). First Supplemental Indenture dated as of May 21, 2003 (filed as Exhibit 4.2 to the Registrant’s Form 10-Q for the quarterly period ended June 30, 2003). Second Supplemental Indenture dated as of May 14, 2009 (filed as Exhibit 4 to the Registrant’s Form 8-K filed on May 14, 2009). Third Supplemental Indenture dated as of July 16, 2010 (filed as Exhibit 4 to the Registrant’s Form 8-K filed on July 15, 2010). Fourth Supplemental Indenture dated as of November 19, 2013 (filed as Exhibit 4 to the Registrants’ Form 8-K filed on November 18, 2013). Fifth Supplemental Indenture dated as of January 13, 2016 (filed as Exhibit 4.1 to the Registrant’s Form 8-K filed on January 13, 2016). |
Exhibit 4.2* | Restated and Amended Indenture of Mortgage and Deed of Trust of Black Hills Corporation (now called Black Hills Power, Inc.) dated as of September 1, 1999 (filed as Exhibit 4.19 to the Registrant’s Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S-3 (No. 333-150669)). First Supplemental Indenture, dated as of August 13, 2002, between Black Hills Power, Inc. and The Bank of New York Mellon (as successor to JPMorgan Chase Bank), as Trustee (filed as Exhibit 4.20 to the Registrant’s Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form S‑3 (No. 333‑150669)). Second Supplemental Indenture, dated as of October 27, 2009, between Black Hills Power, Inc. and The Bank of New York Mellon (filed as Exhibit 4.21 to the Registrant’s Post-Effective Amendment No. 2 to the Registrant’s Registration Statement on Form S-3 (No. 333-150669)). Third Supplemental Indenture, dated as of October 1, 2014, between Black Hills Power, Inc. and The Bank of New York Mellon (filed as Exhibit 10.1 to the Registrant’s Form 8-K filed on October 2, 2014). |
Exhibit 4.3* | Restated Indenture of Mortgage, Deed of Trust, Security Agreement and Financing Statement, amended and restated as of November 20, 2007, between Cheyenne Light, Fuel and Power Company and Wells Fargo Bank, National Association (filed as Exhibit 10.2 to the Registrant’s Form 8-K filed on October 2, 2014). First Supplemental Indenture, dated as of September 3, 2009, between Cheyenne Light, Fuel and Power Company and Wells Fargo Bank, National Association (filed as Exhibit 10.3 to the Registrant’s Form 8-K filed on October 2, 2014). Second Supplemental Indenture, dated as of October 1, 2014, between Cheyenne Light, Fuel and Power Company and Wells Fargo Bank, National Association (filed as Exhibit 10.4 to the Registrant’s Form 8-K filed on October 2, 2014). |
Exhibit 4.4* | Junior Subordinated Indenture dated as of November 23, 2015 between Black Hills Corporation and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Registrant’s Form 8-K filed on November 23, 2015). First Supplemental Indenture dated as of November 23, 2015 (filed as Exhibit 4.2 to the Registrant’s Form 8-K filed on November 23, 2015). |
Exhibit 4.5* | Purchase Contract and Pledge Agreement dated as of November 23, 2015 between Black Hills Corporation and U.S. Bank National Association, as purchase contract agent, collateral agent, custodial agent and securities intermediary (filed as Exhibit 4.4 to the Registrant’s Form 8-K filed on November 23, 2015). |
Exhibit 4.6* | Indenture dated as of April 16, 2007 between SourceGas LLC and U.S. Bank National Association, as Trustee (relating to $325 million, 5.90% Senior Notes due 2017) (filed as Exhibit 10.1 to the Registrant’s Form 8-K filed on March 18, 2016). |
Exhibit 4.7* | Form of Stock Certificate for Common Stock, Par Value $1.00 Per Share (filed as Exhibit 4.2 to the Registrant’s Form 10-K for 2000). |
Exhibit 12 | Computation of Ratio of Earnings to Fixed Charges |
Exhibit 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002. |
Exhibit 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a - 14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes - Oxley Act of 2002. |
Exhibit 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002. |
Exhibit 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes - Oxley Act of 2002. |
Exhibit 95 | Mine Safety and Health Administration Safety Data. |
Exhibit 101 | Financial Statements for XBRL Format. |
* | Previously filed as part of the filing indicated and incorporated by reference herein. |
† | Indicates a board of director or management compensatory plan. |
Six Months Ended | |||||||||||||||||||||||||||
June 30 | Year Ended December 31 | ||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||
Income of consolidated group from continuing operations | $ | 43,333 | $ | (7,992 | ) | $ | (32,111 | ) | $ | 130,889 | $ | 118,307 | $ | 109,417 | $ | 44,374 | |||||||||||
Income taxes | 4,561 | (2,605 | ) | (22,160 | ) | 66,625 | 63,040 | 60,219 | 20,445 | ||||||||||||||||||
(Income) loss from equity investee | — | 5,514 | 4,749 | 1 | 86 | (10 | ) | (1,121 | ) | ||||||||||||||||||
Dividends received from unconsolidated affiliates | — | — | — | — | — | 261 | 2,197 | ||||||||||||||||||||
Fixed charges | 69,086 | 41,300 | 90,020 | 76,636 | 115,820 | 120,011 | 118,649 | ||||||||||||||||||||
Noncontrolling interest | (2,662 | ) | — | — | — | — | — | — | |||||||||||||||||||
Interest capitalized | (503 | ) | (757 | ) | (1,309 | ) | (982 | ) | (1,061 | ) | (682 | ) | (11,260 | ) | |||||||||||||
Total earnings | $ | 113,815 | $ | 35,460 | $ | 39,189 | $ | 273,169 | $ | 296,192 | $ | 289,216 | $ | 173,284 | |||||||||||||
Fixed charges: | |||||||||||||||||||||||||||
Interest expense of consolidated group | $ | 66,180 | $ | 38,698 | $ | 84,969 | $ | 72,035 | $ | 112,918 | $ | 117,072 | $ | 105,424 | |||||||||||||
Interest capitalized | 503 | 757 | 1,309 | 982 | 1,061 | 682 | 11,260 | ||||||||||||||||||||
Portion of rental charges deemed to be interest | 2,403 | 1,845 | 3,742 | 3,619 | 1,841 | 2,257 | 1,965 | ||||||||||||||||||||
Total fixed charges | $ | 69,086 | $ | 41,300 | $ | 90,020 | $ | 76,636 | $ | 115,820 | $ | 120,011 | $ | 118,649 | |||||||||||||
Ratio of earnings to fixed charges | 1.65 | 0.86 | 0.44 | 3.56 | 2.56 | 2.41 | 1.46 |
1. | I have reviewed this Quarterly Report on Form 10-Q of Black Hills Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. | |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |
Date: | August 4, 2016 | ||
/S/ DAVID R. EMERY | |||
David R. Emery | |||
Chairman and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Black Hills Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. | |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): | |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |
Date: | August 4, 2016 | ||
/S/ RICHARD W. KINZLEY | |||
Richard W. Kinzley | |||
Senior Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and | |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | |
Date: | August 4, 2016 | ||
/S/ DAVID R. EMERY | |||
David R. Emery | |||
Chairman and Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934; and | |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | |
Date: | August 4, 2016 | ||
/S/ RICHARD W. KINZLEY | |||
Richard W. Kinzley | |||
Senior Vice President and Chief Financial Officer |
• | Total number of violations of mandatory health and safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under section 104 of the Mine Act for which we have received a citation from MSHA; |
• | Total number of orders issued under section 104(b) of the Mine Act; |
• | Total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health and safety standards under section 104(d) of the Mine Act; |
• | Total number of imminent danger orders issued under section 107(a) of the Mine Act; and |
• | Total dollar value of proposed assessments from MSHA under the Mine Act. |
Mine/ MSHA | Mine Act Section 104 S&S Citations issued during three months ended | Mine Act Section 104(b) | Mine Act Section 104(d) Citations and | Mine Act Section 110(b)(2) | Mine Act Section 107(a) Imminent Danger | Total Dollar Value of Proposed MSHA | Total Number of Mining Related | Received Notice of Potential to Have Pattern Under | Legal Actions Pending as of Last Day of | Legal Actions Initiated During | Legal Actions Resolved During | |||||
Identification Number | June 30, 2016 | Orders (#) | Orders (#) | Violations (#) | Orders (#) | Assessments | Fatalities (#) | Section 104(e) (yes/no) | Period (#) (a) | Period (#) | Period (#) | |||||
Wyodak Coal Mine - 4800083 | — | — | — | — | — | $ | 100 | — | No | — | — | — |
(a) | The types of proceedings by class: (1) contests of citations and orders - none; (2) contests of proposed penalties - none; (3) complaints for compensation - none; (4) complaints of discharge, discrimination or interference under Section 105 of the Mine Act - none; (5) applications for temporary relief - none; and (6) appeals of judges' decisions or orders to the FMSHRC - none. |
Document and Entity Information Document - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 31, 2016 |
|
Document Information [Line Items] | ||
Entity Registrant Name | BLACK HILLS CORP /SD/ | |
Entity Central Index Key | 0001130464 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,324,123 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No |
Condensed Consolidated Statements of Income (Loss) (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||
Income Statement [Abstract] | ||||||||
Revenue | $ 325,441 | $ 272,254 | $ 775,400 | $ 714,241 | ||||
Operating expenses: | ||||||||
Fuel, purchased power and cost of natural gas sold | 84,489 | 73,824 | 256,345 | 279,151 | ||||
Operations and maintenance | 112,541 | 90,410 | 219,603 | 183,544 | ||||
Depreciation, depletion and amortization | 47,305 | 40,051 | 91,712 | 79,053 | ||||
Taxes - property, production and severance | 12,760 | 11,377 | 24,877 | 23,313 | ||||
Impairment of long-lived assets | 25,497 | 94,484 | 39,993 | 116,520 | ||||
Other operating expenses | 7,551 | 966 | 33,982 | 1,018 | ||||
Total operating expenses | 290,143 | 311,112 | 666,512 | 682,599 | ||||
Operating income (loss) | 35,298 | (38,858) | 108,888 | 31,642 | ||||
Interest charges - | ||||||||
Interest expense incurred (including amortization of debt issuance costs, premiums and discounts) | (34,609) | (19,545) | (66,683) | (39,455) | ||||
Allowance for funds used during construction - borrowed | 754 | 207 | 1,255 | 365 | ||||
Capitalized interest | 268 | 481 | 503 | 757 | ||||
Interest income | 946 | 301 | 1,601 | 749 | ||||
Allowance for funds used during construction - equity | 982 | 77 | 1,689 | 133 | ||||
Other income (expense), net | (47) | 395 | 641 | 726 | ||||
Total other income (expense), net | (31,706) | (18,084) | (60,994) | (36,725) | ||||
Income (loss) before earnings (loss) of unconsolidated subsidiaries and income taxes | 3,592 | (56,942) | 47,894 | (5,083) | ||||
Equity in earnings (loss) of unconsolidated subsidiaries | 0 | (47) | 0 | (344) | ||||
Equity Method Investment, Other than Temporary Impairment | 0 | (5,170) | 0 | (5,170) | ||||
Income tax benefit (expense) | (309) | 20,317 | (4,561) | 2,605 | ||||
Net income (loss) | 3,283 | (41,842) | 43,333 | (7,992) | ||||
Net income attributable to non-controlling interest | (2,614) | 0 | (2,662) | 0 | ||||
Net income (loss) available for common stock | $ 669 | $ (41,842) | $ 40,671 | $ (7,992) | ||||
Earnings Per Share, Basic [Abstract] | ||||||||
Earnings (loss) per share, Basic (usd per share) | $ 0.01 | $ (0.94) | $ 0.79 | $ (0.18) | ||||
Earnings Per Share, Diluted [Abstract] | ||||||||
Earnings (loss) per share, Diluted (usd per share) | $ 0.01 | $ (0.94) | $ 0.78 | $ (0.18) | ||||
Weighted average common shares outstanding: | ||||||||
Basic (in shares) | 51,514 | 44,617 | 51,279 | 44,579 | ||||
Diluted (in shares) | 52,986 | 44,617 | [1] | 52,454 | 44,579 | [1] | ||
Dividends declared per share of common stock (usd per share) | $ 0.420 | $ 0.405 | $ 0.840 | $ 0.810 | ||||
|
Condensed Consolidated Statement of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Fair value adjustment on derivatives designated as cash flow hedges, (tax) benefit | $ 5,346 | $ 1,171 | $ 10,865 | $ 128 |
Reclassification adjustments of cash flow hedges settled and included in net income, (tax) benefit | 882 | 735 | 1,884 | 1,989 |
Benefit plan liability adjustments net gain, (tax) benefit | 0 | 0 | 0 | 15 |
Reclassification adjustment of benefit plan prior service cost included in net income, (tax) benefit | 19 | 19 | 38 | 38 |
Reclassification adjustment of benefit plan liabilities actuarial gain (loss), (tax) benefit | $ (173) | $ (247) | $ (346) | $ (494) |
Condensed Consolidated Balance Sheets (unaudited) Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Common Stock, Par Value (usd per share) | $ 1 | $ 1 | $ 1 |
Common Stock, Shares Issued | 52,299,075 | 51,231,861 | 44,871,771 |
Treasury Stock, Shares | 18,900 | 39,720 | 35,855 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Management's Statement: |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management's Statement | MANAGEMENT’S STATEMENT The unaudited Condensed Consolidated Financial Statements included herein have been prepared by Black Hills Corporation (together with our subsidiaries the “Company,” “us,” “we,” or “our”), pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations; however, we believe that the footnotes adequately disclose the information presented. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our 2015 Annual Report on Form 10-K filed with the SEC. Segment Reporting We conduct our operations through the following reportable segments: Electric Utilities, Gas Utilities, Power Generation, Mining and Oil and Gas. Our reportable segments are based on our method of internal reporting, which is generally segregated by differences in products, services and regulation. All of our operations and assets are located within the United States. Prior to March 31, 2016, our segments were reported within two business groups, our Utilities Group, containing the Electric Utilities and Gas Utilities segments, and our Non-regulated Energy Group, containing the Power Generation, Coal Mining and Oil and Gas segments. We have continued to report our operations consistently through our reportable segments; however we will no longer separate the segments by business group. We are a customer-focused, growth-oriented, vertically-integrated utility company. All of our non-utility business segments support our electric utilities, other than the Oil and Gas segment. In 2015 we began transitioning the Oil and Gas business to support utilities through a Cost of Service Gas Program. The following changes have been made to our Condensed Consolidated Statements of Income to reflect combined operations and maintenance expenses, rather than by business group as previously reported, for the three and six months ended June 30, 2015, respectively:
This presentation reclassification did not impact our consolidated financial position, results of operations or cash flows. Segment reporting transition of Cheyenne Light’s natural gas distribution Effective January 1, 2016, the natural gas operations of Cheyenne Light have been included in our Gas Utilities Segment. Through December 31, 2015, Cheyenne Light’s natural gas operations were included in our Electric Utilities Segment as these natural gas operations were consolidated within Cheyenne Light since its acquisition. This change is a result of our business segment reorganization to, among other things, integrate all regulated natural gas operations, including the SourceGas Acquisition, into our Gas Utilities Segment which is led by the Group Vice President, Natural Gas Utilities. Likewise, all regulated electric utility operations, including Cheyenne Light’s electric utility operations, are reported in our Electric Utilities Segment, which is led by the Group Vice President, Electric Utilities. The prior period has been reclassified to reflect this change in presentation between the Electric Utilities and Gas Utilities segments. See Note 3 for Revenues, Net Income and Segment Assets reclassified from the Electric Utilities segment to the Gas Utilities segment for the three and six months ending June 30, 2015. This segment reclassification did not impact our consolidated financial position, results of operations or cash flows. Use of estimates and basis of presentation Accounting methods historically employed require certain estimates as of interim dates. The information furnished in the accompanying Condensed Consolidated Financial Statements reflects all adjustments, including accruals, which are, in the opinion of management, necessary for a fair presentation of the June 30, 2016, December 31, 2015, and June 30, 2015 financial information and are of a normal recurring nature. Certain industries in which we operate are highly seasonal, and revenue from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements, as well as changes in market prices. In particular, the normal peak usage season for electric utilities is June through August while the normal peak usage season for gas utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment’s peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and six months ended June 30, 2016 and June 30, 2015, and our financial condition as of June 30, 2016, December 31, 2015, and June 30, 2015, are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period. All earnings per share amounts discussed refer to diluted earnings per share unless otherwise noted. Significant Accounting Policies Business Combinations We record acquisitions in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of ASC 805, Business Combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between goodwill and assets that are depreciated and amortized. Our estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. Our significant assumptions and estimates can include, but are not limited to, the cash flows that an acquired entity is expected to generate in the future, the appropriate weighted-average cost of capital, and the savings expected to be derived from the business combination. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events or circumstances may occur which may affect the accuracy or validity of such estimates. See Note 2 for additional detail on the accounting for our acquisition. Noncontrolling Interest We account for changes in our controlling interests of subsidiaries according to ASC 810, Consolidations. ASC 810 requires that the Company record such changes as equity transactions, recording no gain or loss on such a sale. GAAP requires that noncontrolling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the net income (loss) of those subsidiaries are reported separately in the consolidated statements of income and comprehensive income. See Note 11 for additional detail on Noncontrolling Interests. Recently Issued and Adopted Accounting Standards Improvements to Employee Share-Based Payment Accounting, ASU 2016-09 In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, income taxes, and statutory tax withholding requirements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted. Certain amendments of this guidance are to be applied retrospectively and others prospectively. The Company is currently assessing the impact that adoption of ASU 2016-09 will have on its consolidated financial position, results of operations and cash flows. Leases, ASU 2016-02 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which supersedes ASC 840, Leases. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of 12 months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The guidance is effective for the Company beginning after December 15, 2018. Early adoption is permitted. We are currently assessing the impact that adoption of ASU 2016-02 will have on our financial position, results of operations and cash flows. Revenue from Contracts with Customers, ASU 2014-09 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. On July 9, 2015, FASB voted to defer the effective date of ASU 2014-09 by one year. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017 and early adoption is permitted. Entities will have the option of using either a full retrospective or modified retrospective approach to adopting this guidance. Under the modified approach, an entity would recognize the cumulative effect of initially applying the guidance with an adjustment to the opening balance of retained earnings in the period of adoption. We are currently assessing the impact that adoption of ASU 2014-09 will have on our financial position, results of operations and cash flows. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent), ASU 2015-07 On May 1, 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent). The ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient and also removes certain disclosure requirements. The new requirements were effective for us beginning January 1, 2016 and will be applied retrospectively to all periods presented, in our 2016 Form 10-K. This ASU will not materially affect our financial statements and disclosures, but will change certain presentation and disclosure of the fair value of certain plan assets in our pension and other postretirement benefit plan disclosures in our 2016 Form 10-K, for all periods presented. Simplifying the Presentation of Debt Issuance Costs, ASU 2015-03 In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs related to a recognized debt liability are presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. We adopted ASU 2015-03 in the first quarter of 2016 on a retrospective basis. As of June 30, 2016, we have presented the debt issuance costs, previously reported in other assets, as direct deductions from the carrying amount of long-term debt. The implementation of this standard resulted in reductions of other assets, non-current and long-term debt of $13 million and $11 million in the Condensed Consolidated Balance Sheets as of December 31, 2015, and June 30, 2015, respectively. Adoption of ASU 2015-03 did not have a material impact on our financial position. Simplifying the Accounting for Measurement-Period Adjustments, ASU 2015-16 In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. This ASU eliminates the requirement to retrospectively account for changes to provisional amounts recognized at the acquisition date in a business combination. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined, including the effect of the change in the provisional amount as if the accounting had been completed at the acquisition date. The provisions of this ASU are effective for fiscal years beginning after December 31, 2015, including interim periods within those fiscal years and should be applied prospectively to adjustments to provisional amounts that occur after the effective date. We have implemented ASU 2015-16 as of January 1, 2016. Adoption of this standard did not have a material impact on the Company’s financial position, results of operations and cash flows. |
Acquisition: |
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Acquisition | ACQUISITION Acquisition of SourceGas On February 12, 2016, Black Hills Corporation acquired SourceGas, pursuant to the purchase and sale agreement executed on July 12, 2015 for approximately $1.89 billion, including the assumption of $760 million in debt at closing. The purchase price was subject to post-closing adjustments for capital expenditures, indebtedness and working capital. Post-closing adjustments of approximately $11 million were agreed to and received from the sellers in June 2016. SourceGas is a 99.5% owned subsidiary of Black Hills Utility Holdings, Inc., a wholly-owned subsidiary of Black Hills Corporation and has been renamed Black Hills Gas Holdings, LLC. Black Hills Gas Holdings primarily operates four regulated natural gas utilities serving approximately 429,000 customers in Arkansas, Colorado, Nebraska and Wyoming, and a 512-mile regulated intrastate natural gas transmission pipeline in Colorado. Cash consideration of $1.135 billion paid on February 12, 2016 to close the SourceGas Acquisition included net proceeds of approximately $536 million from the November 23, 2015 issuance of 6.325 million shares of our common stock and 5.98 million equity units, and $546 million in net proceeds from our debt offerings on January 13, 2016. We funded the cash consideration and out-of-pocket expenses payable with the SourceGas Acquisition using the proceeds listed above, cash on hand, and draws under our revolving credit facility. In connection with the acquisition, the Company recorded pre-tax acquisition costs of approximately $6.3 million and $31 million, respectively, in the three and six months ended June 30, 2016. These costs consisted of transaction costs, professional fees, employee-related expenses and other miscellaneous costs. The costs are recorded primarily in Other operating expenses on the Condensed Consolidating Income Statements. There were $0.7 million of acquisition costs recorded in the three and six months ended June 30, 2015. Our consolidated operating results for the three and six months ended June 30, 2016 include revenues of $70 million and $145 million, respectively, and net income (loss) of $(3.0) million and $4.6 million, respectively, attributable to SourceGas for the period from February 12 through June 30, 2016. SourceGas is reported in our Gas Utilities segment. We believe the SourceGas Acquisition enhances Black Hills Corporation’s utility growth strategy, providing greater operating scale, driving more efficient delivery of services and benefiting customers. We accounted for the SourceGas Acquisition in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. Substantially all of SourceGas’ operations are subject to the rate-setting authority of state regulatory commissions, and are accounted for in accordance with GAAP for regulated operations. SourceGas’ assets and liabilities subject to rate setting provisions provide revenues derived from costs, including a return on investment of assets and liabilities included in rate base. As such, the fair value of these assets and liabilities equal their historical net book values. We are still determining the purchase price allocation for SourceGas. A preliminary purchase price allocation of the fair value of the assets acquired and liabilities assumed is included in the table below. The cash consideration paid of $1.124 billion, net of long-term debt assumed of $760 million and a working capital adjustment received of approximately $11 million, resulted in a preliminary estimate of goodwill totaling $944 million. This estimate is subject to change and will likely result in an increase or decrease in goodwill, which could be material. We have up to one year from the acquisition date to finalize the purchase price allocation. During the three months ended June 30, 2016, we decreased goodwill by $2.7 million, reflecting the working capital adjustment received of $11 million and changes in valuation estimates for property, plant and equipment, long-term debt and regulatory liabilities. Approximately $214 million of the goodwill balance is amortizable for tax purposes, relating to the partnership interests that were directly acquired in the transaction. The remainder of the goodwill balance is not amortizable for tax purposes. Goodwill generated from the acquisition reflects the benefits of increased operating scale and organic growth opportunities.
Conditions of SourceGas Acquisition Regulatory Approval The acquisition was subject to regulatory approvals from the public utility commissions in Arkansas (APSC), Colorado (CPUC), Nebraska (NPSC), and Wyoming (WPSC). Approvals were obtained from all commissions, subject to various conditions as set forth below: The APSC order includes a 12 month base rate moratorium, an annual $0.25 million customer credit for a term of up to five-years or until we file the next rate case, whichever comes first, and provides the Company recovery of a portion of specific labor synergies at the time of the next base rate case, as well as various other terms and reporting requirements. The CPUC order includes a two-year base rate moratorium for our regulated transmission and wholesale natural gas provider, a three-year base rate moratorium for our regulated gas distribution utility, an annual $0.2 million customer credit for a term of up to five-years or until we file the next rate case, whichever comes first, and provides the Company recovery of a portion of specific labor synergies at the time of the next base rate case, as well as various other terms and reporting requirements. The NPSC order includes a three-year base rate moratorium, a three-year continuation of the Choice Gas program, and provides the Company recovery of a portion of specific labor synergies at the time of the next base rate case, as well as various other terms and reporting requirements. The WPSC order includes a three-year continuation of the Choice Gas program, as well as various other terms and reporting requirements. All four orders also disallowed recovery of goodwill and transaction costs. Recovery of transition costs is disallowed in Arkansas, Colorado and Nebraska, however Wyoming allows for request of recovery of transition costs. Transition costs are those non-recurring costs related to the transition and integration of SourceGas. In the conditions mentioned above, the orders that include base rate moratoriums over a specified period of time do not impact our ability to adjust rates through riders or gas supply cost recovery mechanisms as allowed under the current enacted state tariffs. In certain cases, we may file for leave to increase general base rates and/or cost of sales recovery limited to material adverse changes, but only if there are changes in law or regulations or the occurrence of other extraordinary events outside of our control which result in a material adverse change in revenues, revenue requirement and/or increase in operating costs. Settlement of Gas Supply Contract On April 29, 2016, we settled for $40 million, a former SourceGas contract that required the company to purchase all of the natural gas produced over the productive life of specific leaseholds in the Bowdoin Field in Montana. The majority of these purchases were committed to distribution customers in Nebraska, Colorado and Wyoming, which are subject to cost recovery mechanisms. The prices to be paid under this contract varied, ranging from $6 to $8 per MMBtu at the time of acquisition and exceeded market prices. We applied for and were granted approval to terminate this agreement from the NPSC, CPUC and WPSC, on the basis that the agreement was not beneficial to customers in the long term. We received written orders allowing the net buyout costs associated with the contract termination to create a regulatory asset and recover the majority of costs over a five year period. This liability is included with Current liabilities of the preliminary purchase price allocation. Pro Forma Results We calculated the pro forma impact of the SourceGas Acquisition and the associated debt and equity financings on our operating results for the three and six months ended June 30, 2016 and 2015. The following pro forma results give effect to the acquisition, assuming the transaction closed on January 1, 2015:
We derived the pro forma results for the SourceGas Acquisition based on historical financial information obtained from the sellers and certain management assumptions. Our pro forma adjustments relate to incremental interest expense associated with the financings to effect the transaction, and for the three and six months ended June 30, 2015, also include adjustments to shares outstanding to reflect the equity issuances as if they had occurred on January 1, 2015, and to reflect pro forma dilutive effects of the equity units issued. The pro forma results do not reflect any cost savings, (or associated costs to achieve such savings) from operating efficiencies or restructuring that could result from the Acquisition, and exclude any unique one-time items resulting from the acquisition that are not expected to have a continuing impact on the combined consolidated results. Pro forma results for the three and six months ended June 30, 2016 reflect unfavorable weather impacts resulting in lower gas pricing than in the same periods of the prior year. In addition, we calculated the tax impact of these adjustments at an estimated combined federal and state income tax rate of 37%. These pro forma results are for illustrative purposes only and do not purport to be indicative of the results that would have been obtained had the SourceGas Acquisition been completed on January 1, 2015, or that may be obtained in the future. Seller’s noncontrolling interest One of the sellers retained 0.5% of the outstanding equity interests of SourceGas under the terms of the purchase agreement. As part of the transaction we entered into an associated option agreement with that holder of the retained interest. The terms of this agreement provide us a call option to purchase the remaining interest beginning 366 days after the initial close of the SourceGas transaction. If we choose not to exercise this option during a ninety-day period, the seller is provided a put option to sell us the retained interest. The value of this 0.5% equity interest is shown as Redeemable noncontrolling interest on the accompanying condensed consolidated balance sheets. |
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Segment Reporting Information, Additional Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | BUSINESS SEGMENT INFORMATION Segment information and Corporate activities included in the accompanying Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):
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Segment information and Corporate balances included in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | ACCOUNTS RECEIVABLE Following is a summary of Accounts receivable, net included in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
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Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Accounting | REGULATORY ACCOUNTING We had the following regulatory assets and liabilities (in thousands):
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Gas Supply Contract Termination - Black Hills Gas Holdings had agreements under the previous ownership that required the company to purchase all of the natural gas produced over the productive life of specific leaseholds in the Bowdoin Field in Montana. The majority of these purchases were committed to distribution customers in Nebraska, Colorado, and Wyoming, which are subject to cost recovery mechanisms. The prices to be paid under these agreements varied, ranging from $6 to $8 per MMBtu at the time of acquisition, and exceeded market prices. We recorded a liability for this contract in our purchase price allocation. We were granted approval to terminate these agreements from the NPSC, CPUC and WPSC, on the basis that these agreements are not beneficial to customers over the long term. We received written orders allowing us to create a regulatory asset for the net buyout costs associated with the contract termination, and recover the majority of costs from customers over a five year period. We terminated the contract and settled the liability on April 29, 2016. Cost of Removal - Cost of removal represents the estimated cumulative net provisions for future removal costs included in depreciation expense for which there is no legal obligation for removal. The increase from the prior periods is due to cost of removal recorded with the SourceGas purchase price allocation. See Note 2 for additional details. |
Materials, Supplies and Fuel: |
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Materials, Supplies and Fuel | MATERIALS, SUPPLIES AND FUEL The following amounts by major classification are included in Materials, supplies and fuel in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
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Goodwill & Intangible Assets: |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL & INTANGIBLE ASSETS Following is a summary of Goodwill included in the accompanying Condensed Consolidated Balance Sheets (in thousands):
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Following is a summary of Intangible assets included in the accompanying Condensed Consolidated Balance Sheets (in thousands):
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Earnings Per Share: |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE A reconciliation of share amounts used to compute Earnings (loss) per share in the accompanying Condensed Consolidated Statements of Income (Loss) was as follows (in thousands):
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The following outstanding securities were excluded in the computation of diluted net income (loss) per share as their inclusion would have been anti-dilutive (in thousands):
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Notes Payable: |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt [Text Block] | NOTES PAYABLE We had the following notes payable outstanding in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
Revolving Credit Facility On June 26, 2015, we amended our $500 million corporate Revolving Credit Facility agreement to extend the term through June 26, 2020. This facility is similar to the former agreement, which includes an accordion feature that allows us, with the consent of the administrative agent and issuing agents, to increase the capacity of the facility to $750 million. Borrowings continue to be available under a base rate or various Eurodollar rate options. The interest costs associated with the letters of credit or borrowings and the commitment fee under the Revolving Credit Facility are determined based upon our most favorable Corporate credit rating from S&P and/or Moody’s for our unsecured debt. Based on our credit ratings, the margins for base rate borrowings, Eurodollar borrowings, and letters of credit were 0.125%, 1.125%, and 1.125%, respectively, at June 30, 2016. A commitment fee is charged on the unused amount of the Revolving Credit Facility and was 0.175% based on our credit rating. Debt Financial Covenants On February 12, 2016, in connection with the SourceGas Acquisition discussed in Note 2, our Revolving Credit Facility and Term Loan credit agreements were amended to permit the assumption of certain indebtedness of SourceGas and to increase the Recourse Leverage Ratio, and we amended and restated SourceGas’s $340 million term loan due June 30, 2017. On February 12, 2016, the maximum Recourse Leverage Ratio increased to 0.75 to 1.00 until March 31, 2017, a period of four fiscal quarters following the SourceGas acquisition; it was previously 0.65 to 1.00. The maximum Recourse Leverage Ratio returns to 0.65 to 1.00 on March 31, 2017. Additionally, covenants within Black Hills Gas Holdings financing agreements require Black Hills Gas Holdings to maintain a consolidated debt to capitalization ratio of no more than 0.75 to 1.00. Except as provided above, our Revolving Credit Facility, our Term Loan and the SourceGas term loan require compliance with the following financial covenant at the end of each quarter:
As of June 30, 2016, we were in compliance with this covenant. |
Long-Term Debt: |
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Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt [Text Block] | LONG-TERM DEBT AND CURRENT MATURITIES OF LONG-TERM DEBT Long-term debt was as follows (dollars in thousands):
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Scheduled future maturities of debt, excluding amortization of premiums or discounts are (in thousands):
Our debt securities contain certain restrictive financial covenants, all of which the Company and its subsidiaries were in compliance with at June 30, 2016. Current Maturities of Long-Term Debt As of June 30, 2016, we have the following classified as Current maturities of long-term debt:
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Debt Transactions In accordance with regulatory orders related to the early termination and settlement of the gas supply contract described in footnote 5, on June 7, 2016, we entered into a 2.32%, $29 million term loan, due June 7, 2021. Proceeds from this term loan were used to finance the early termination of the gas supply contract, resulting in a regulatory asset. Principal and interest are payable quarterly at approximately $1.6 million, the first of which were paid on June 30, 2016. On January 13, 2016, we completed a public debt offering of $550 million principal amount of senior unsecured notes. The debt offering consisted of $300 million of 3.95%, 10-year senior notes due 2026, and $250 million of 2.50%, 3-year senior notes due 2019. After discounts and underwriter fees, net proceeds from the offering totaled $546 million and were used as funding for the SourceGas Acquisition. The discounts are amortized over the life of each respective note. Assumption of Long-Term Debt At the closing of the SourceGas Acquisition on February 12, 2016, we assumed $760 million in long-term debt, consisting of the following:
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Equity: |
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Statement of Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | (11) EQUITY A summary of the changes in equity is as follows:
At-the-Market Equity Offering Program On March 18, 2016, we implemented an at-the-market equity offering program allowing us to sell shares of our common stock with an aggregate value of up to $200 million. The shares may be offered from time to time pursuant to a sales agreement dated March 18, 2016. Shares of common stock are offered pursuant to our shelf registration statement filed with the SEC. During the three months ended June 30, 2016, we sold 809,649 common shares for $49 million, net of $0.5 million in commissions under the ATM equity offering program. Through June 30, 2016, we have sold and issued an aggregate of 930,649 shares of common stock under the ATM equity offering program for $56 million, net of $0.6 million in commissions. Additionally, 46,576 shares for net proceeds of $2.9 million have been sold, but were not settled and are not considered issued and outstanding as of June 30, 2016. Sale of Noncontrolling Interest in Subsidiary Black Hills Colorado IPP owns and operates a 200 MW, combined-cycle natural gas generating facility located in Pueblo, Colorado. On April 14, 2016, Black Hills Electric Generation sold a 49.9%, noncontrolling interest in Black Hills Colorado IPP for $216 million to AIA Energy North America LLC. FERC approval of the sale was received on March 29, 2016. Black Hills Electric Generation is the operator of the facility, which is contracted to provide capacity and energy through 2031 to Black Hills Colorado Electric. Proceeds from the sale were used to pay down short-term debt and for other general corporate purposes. ASC 810 requires a partial sale of a subsidiary in which control is maintained and the subsidiary continues to be consolidated, be recorded as an equity transaction, recording no gain or loss on such a sale. GAAP requires that noncontrolling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. Distributions of net income attributable to noncontrolling interests are due within 30 days following the end of a quarter, but may be withheld as necessary by Black Hills Electric Generation. Black Hills Colorado IPP has been determined to be a variable interest entity (VIE) in which the Company has a variable interest. Black Hills Electric Generation has been determined to be the primary beneficiary of the VIE as Black Hills Electric Generation is the operator and manager of the generation facility and, as such, has the power to direct the activities that most significantly impact Black Hills Colorado IPP’s economic performance. Black Hills Electric Generation, as the primary beneficiary, continues to consolidate Black Hills Colorado IPP. Black Hills Colorado IPP has not received financial or other support from the Company outside of pre-existing contractual arrangements during the reporting period. Black Hills Colorado IPP does not have any debt and its cash flows from operations are sufficient to support its ongoing operations. We have recorded the following assets and liabilities on our consolidated balance sheets related to the VIE described above as of:
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Risk Management Activities: |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management Activities | RISK MANAGEMENT ACTIVITIES Our activities in the regulated and non-regulated energy sectors expose us to a number of risks in the normal operation of our businesses. Depending on the activity, we are exposed to varying degrees of market risk and credit risk. To manage and mitigate these identified risks, we have adopted the Black Hills Corporation Risk Policies and Procedures as discussed in our 2015 Annual Report on Form 10-K. Market Risk Market risk is the potential loss that might occur as a result of an adverse change in market price or rate. We are exposed to the following market risks including, but not limited to:
Credit Risk Credit risk is the risk of financial loss resulting from non-performance of contractual obligations by a counterparty. For production and generation activities, we attempt to mitigate our credit exposure by conducting business primarily with high credit quality entities, setting tenor and credit limits commensurate with counterparty financial strength, obtaining master netting agreements, and mitigating credit exposure with less creditworthy counterparties through parental guarantees, prepayments, letters of credit, and other security agreements. We perform ongoing credit evaluations of our customers and adjust credit limits based on payment history and the customer’s current creditworthiness, as determined by review of their current credit information. We maintain a provision for estimated credit losses based upon historical experience and any specific customer collection issue that is identified. Our derivative and hedging activities recorded in the accompanying Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Income (Loss) and Condensed Consolidated Statements of Comprehensive Income (Loss) are detailed below and in Note 13. Oil and Gas We produce natural gas, NGLs and crude oil through our exploration and production activities. Our natural long positions, or unhedged open positions, result in commodity price risk and variability to our cash flows. To mitigate commodity price risk and preserve cash flows, we primarily use exchange traded futures and swaps to hedge portions of our crude oil and natural gas production. We elect hedge accounting on these instruments. These transactions were designated at inception as cash flow hedges, documented under accounting standards for derivatives and hedging, and initially met prospective effectiveness testing. Effectiveness of our hedging position is evaluated at least quarterly. The derivatives were marked to fair value and were recorded as Derivative assets or Derivative liabilities on the accompanying Condensed Consolidated Balance Sheets, net of balance sheet offsetting as permitted by GAAP. The effective portion of the gain or loss on these derivatives for which we have elected cash flow hedge accounting is reported in AOCI in the accompanying Condensed Consolidated Balance Sheets and the ineffective portion, if any, is reported in Revenue in the accompanying Condensed Consolidated Statements of Income (Loss). The contract or notional amounts and terms of the crude oil futures and natural gas futures and swaps held at our Oil and Gas segment are composed of short positions. We had the following short positions as of:
Based on June 30, 2016 prices, a $2.7 million gain would be realized, reported in pre-tax earnings and reclassified from AOCI during the next 12 months. Estimated and actual realized gains or losses will change during future periods as market prices fluctuate. Utilities The operations of our utilities, including natural gas sold by our Gas Utilities and natural gas used by our Electric Utilities generation plants or those plants under PPAs where our Electric Utilities must provide the generation fuel (tolling agreements), expose our utility customers to volatility in natural gas prices. Therefore, as allowed or required by state utility commissions, we have entered into commission approved hedging programs utilizing natural gas futures, options, fixed to float swaps and basis swaps to reduce our customers’ underlying exposure to these fluctuations. These transactions are considered derivatives, and in accordance with accounting standards for derivatives and hedging, mark-to-market adjustments are recorded as Derivative assets or Derivative liabilities on the accompanying Condensed Consolidated Balance Sheets, net of balance sheet offsetting as permitted by GAAP. For our regulated utilities’ hedging plans, unrealized and realized gains and losses, as well as option premiums and commissions on these transactions are recorded as Regulatory assets or Regulatory liabilities in the accompanying Condensed Consolidated Balance Sheets in accordance with state commission guidelines. When the related costs are recovered through our rates, the hedging activity is recognized in the Condensed Consolidated Statements of Income (Loss), or the Condensed Consolidated Statements of Comprehensive Income (Loss). For hedging activities associated with our retail marketing operations, the effective portion of the gain or loss on these derivatives for which we have elected cash flow hedge accounting is reported in AOCI in the accompanying Condensed Consolidated Balance Sheets and the ineffective portion, if any, is reported in Fuel, purchased power and cost of natural gas sold in the accompanying Condensed Consolidated Statements of Income (Loss). The contract or notional amounts and terms of the natural gas derivative commodity instruments held at our Utilities are composed of both long and short positions. We were in a net long position as of:
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Financing Activities We entered into pay fixed interest rate swap agreements to reduce our exposure to interest rate fluctuations associated with our floating rate debt obligations and anticipated debt refinancings. The contract or notional amounts, terms of our interest rate swaps and the interest rate swaps balances reflected on the Condensed Consolidated Balance Sheets were as follows (dollars in thousands) as of:
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Based on June 30, 2016 market interest rates and balances related to our interest rate swaps, a loss of approximately $29 million would be realized, reported in pre-tax earnings and reclassified from AOCI during the next 12 months. Estimated and actual realized gains or losses will change during future periods as market interest rates change. Cash Flow Hedges The impacts of cash flow hedges on our Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):
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Fair Value Measurements: |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Derivative Financial Instruments The accounting guidance for fair value measurements requires certain disclosures about assets and liabilities measured at fair value. This guidance establishes a hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. We record transfers, if necessary, between levels at the end of the reporting period for all of our financial instruments. For additional information, see Notes 1, 8, 9 and 10 to the Consolidated Financial Statements included in our 2015 Annual Report on Form 10-K filed with the SEC. Transfers into Level 3, if any, occur when significant inputs used to value the derivative instruments become less observable such as a significant decrease in the frequency and volume in which the instrument is traded, negatively impacting the availability of observable pricing inputs. Transfers out of Level 3, if any, occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery date of a transaction becomes shorter, positively impacting the availability of observable pricing inputs. Valuation Methodologies for Derivatives Oil and Gas Segment:
Utilities Segments:
Corporate Activities:
Recurring Fair Value Measurements There have been no significant transfers between Level 1 and Level 2 derivative balances. Amounts included in cash collateral and counterparty netting in the following tables represent the impact of legally enforceable master netting agreements that allow us to settle positive and negative positions, netting of asset and liability positions permitted in accordance with accounting standards for offsetting as well as cash collateral posted with the same counterparties. The following tables set forth by level within the fair value hierarchy are gross assets and gross liabilities and related offsetting cash collateral and counterparty netting as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments.
Fair Value Measures by Balance Sheet Classification As required by accounting standards for derivatives and hedges, fair values within the following tables are presented on a gross basis aside from the netting of asset and liability positions permitted in accordance with accounting standards for offsetting and under terms of our master netting agreements and the impact of legally enforceable master netting agreements that allow us to settle positive and negative positions. Additionally, as of December 31, 2015, and June 30, 2015, the amounts below will not agree with the amounts presented on our Condensed Consolidated Balance Sheets, nor will they correspond to the fair value measurements presented in Note 12 as they are netted in other current assets. The following tables present the fair value and balance sheet classification of our derivative instruments (in thousands):
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Fair Value of Financial Instruments: |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values of our financial instruments, excluding derivatives which are presented in Note 13, were as follows (in thousands) as of:
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Other Comprehensive Income (Loss): |
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Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) The components of the reclassification adjustments, net of tax, included in Other Comprehensive Income (Loss) for the periods were as follows (in thousands):
Balances by classification included within Accumulated other comprehensive income (loss) on the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):
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Supplemental Disclosure of Cash Flow Information: |
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Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure of Cash Flow Information | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
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Employee Benefit Plans: |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS On February 12, 2016, as disclosed in Note 2, we completed the acquisition of SourceGas, adding an additional defined benefit pension plan, two additional non-pension defined benefit postretirement plans and a 401K retirement savings plan to cover employees of the utilities acquired. Benefits under these plans are determined based on each employee’s compensation, years of service, and/or age at retirement, among other factors. In accordance with ASC 715, the SourceGas benefit liabilities were re-measured as of February 11, 2016. In addition, prior service costs not previously expensed were reclassified to a Regulatory asset and will be amortized over the average remaining service life of the plans. Amounts recognized in the Condensed Consolidated Balance Sheet upon the February 12, 2016 acquisition are (in thousands):
Defined Benefit Pension Plans We have three defined benefit pension plans for certain eligible employees consisting of the Black Hills Corporation pension plan, Black Hills Utility Holdings’ pension plan and the SourceGas retirement plan. The benefits for the pension plans are based on years of service and calculations of average earnings during a specific time period prior to retirement. All Pension Plans have been closed to new employees and frozen for certain employees who did not meet age and service based criteria. Beginning in 2016, we changed the method used to estimate the service and interest cost components of the net periodic pension, supplemental non-qualified defined benefit and other postretirement benefit costs. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligations to relevant projected cash outflows. Previously, those costs were determined using a single weighted-average discount rate. The change does not affect the measurement of the total benefit obligations as the change in service and interest costs offsets the actuarial gains and losses recorded in other comprehensive income, regulatory assets or regulatory liabilities. The new method provides a more precise measure of interest and service costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. We accounted for this change as a change in estimate prospectively beginning in the first quarter of 2016. The discount rates used to measure the 2016 interest costs are 3.827%, 3.817% and 3.284% for pension, supplemental non-qualified defined benefit and other postretirement benefit costs, respectively. The previous method would have used a discount rate for both service and interest costs of 4.575% for pension, 4.500% for supplemental non-qualified defined benefit and 4.165% for other postretirement benefit costs. The decrease in the total 2016 service and interest costs is approximately $2.8 million, $0.3 million and $0.4 million for the pension, supplemental non-qualified defined benefit and other postretirement benefit costs, respectively, as compared to the previous method. In connection with the acquisition related re-measurement of the SourceGas benefit plans we adopted the spot yield curve method, referenced above. The discount rates used to measure the 2016 interest costs are 3.690% for pension and 3.319% for other post retirement costs, effective February 11, 2016. The components of net periodic benefit cost for the Defined Benefit Pension Plans were as follows (in thousands):
Defined Benefit Postretirement Healthcare Plans With the addition of the two SourceGas Postretirement Healthcare Plans, BHC now sponsors five retiree healthcare plans (Healthcare Plans) for employees who meet certain age and service requirements at retirement. Healthcare Plan benefits are subject to premiums, deductibles, co-payment provisions and other limitations. A portion of the Healthcare Plans is pre-funded via Voluntary Employees’ Beneficiary Association, “VEBAs”. Effective January 1, 2014, health care coverage for Medicare-eligible retirees is provided through an individual market healthcare exchange for BHC and Black Hills Utility Holdings retirees. SourceGas retirees do not participate in the individual market healthcare exchange; therefore, all permissible health claims are paid under the self-insured plan. The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plans were as follows (in thousands):
Supplemental Non-qualified Defined Benefit and Defined Contribution Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit and Defined Contribution Plans were as follows (in thousands):
Contributions We anticipate that we will make contributions to the benefit plans in 2016 and 2017. Contributions to the Defined Benefit Pension Plans are cash contributions made directly to the Pension Plan Trust accounts. Contributions to the Healthcare and Supplemental Plans are made in the form of benefit payments. Contributions and anticipated contributions are as follows (in thousands):
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Commitments and Contingencies: |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES There have been no significant changes to commitments and contingencies from those previously disclosed in Note 19 of our Notes to the Consolidated Financial Statements in our 2015 Annual Report on Form 10-K except for those described below and in Notes 2 and 21. Gas Supply Agreements Acquired Utilities In connection with the SourceGas Acquisition (see Note 2), we assumed various commitments relating to natural gas supply and transportation commitments and lease commitments, as summarized below (in thousands):
Also due to the acquisition, there are other commitments to purchase natural gas to meet customer needs, which are short-term or long-term in nature. At June 30, 2016, the long-term commitments to purchase physical quantities of natural gas under contracts indexed to the forward Northwest Wyoming Pool totaled 0.24 Bcf within one year, 1.20 Bcf within one to two years and 0.97 Bcf in the third year. Purchases under these contracts totaled $1.7 million for the six months ended June 30, 2016 which are recovered under the applicable states’ purchased-gas recovery mechanisms. Build Transfer Agreement On November 2, 2015, Colorado Electric executed a build-transfer agreement with Invenergy Wind Development Colorado, LLC to purchase the 60 MW, $109 million Peak View Wind Project. Peak View will be built by Invenergy Wind Development Colorado, LLC approximately 30 miles south of Pueblo, Colorado, in Huerfano and Las Animas counties. The estimated cost of $109 million includes taxes, transmission infrastructure and interconnection costs. Construction started in February of 2016 and is expected to be completed in late 2016. Under the build transfer agreement, Colorado Electric makes progress payments to Invenergy, which started in late 2015, and continue through completion of the project. Ownership of Peak View will transfer to Colorado Electric prior to commercial operation and will be operated as a utility-owned asset. BHC has guaranteed the full and complete payment and performance on behalf of Colorado Electric. At June 30, 2016, the balance of BHC’s guarantee was approximately $47 million. The balance of the guarantee decreases as progress payments are made. The guarantee terminates at the earlier of 1) when BHC or Colorado Electric has paid and performed all guaranteed obligations, or 2) the second anniversary of the closing date. Dividend Restrictions Our Revolving Credit Facility and other debt obligations contain restrictions on the payment of cash dividends upon a default or event of default. As of June 30, 2016, we were in compliance with the debt covenants. Due to our holding company structure, substantially all of our operating cash flows are provided by dividends paid or distributions made by our subsidiaries. The cash to pay dividends to our stockholders is derived from these cash flows. As a result, certain statutory limitations or regulatory or financing agreements could affect the levels of distributions allowed to be made by our subsidiaries. The following restrictions on distributions from our subsidiaries existed at June 30, 2016:
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Impairment of Assets: |
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Asset Impairment Charges [Abstract] | |||||||||
Asset Impairment Charges [Text Block] | IMPAIRMENT OF ASSETS Long-lived Assets Our Oil and Gas segment accounts for oil and gas activities under the full cost method of accounting. Under the full cost method, all productive and non-productive costs related to acquisition, exploration, development, abandonment and reclamation activities are capitalized. These 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. Any costs in excess of the ceiling are written off as a non-cash charge. In determining the ceiling value of our assets under the full cost accounting rules of the SEC, we utilized the average of the quoted prices from the first day of each month from the previous 12 months. As a result of continued low commodity prices in 2016 and throughout 2015, we have recorded the following non-cash ceiling test impairments of our oil and gas assets included in our Oil and Gas segment for the three and six months ended June 30, 2016 and June 30, 2015.
During the second quarter of 2016 we advanced our Oil and Gas strategy, identifying certain non-core assets which may be sold as they are not expected to be utilized in the Cost of Service Gas program. We assessed these assets for impairment in accordance with ASC 360. We valued the assets applying a market method approach utilizing assumptions consistent with similar known and measurable transactions and determined that the carrying amount exceeded the fair value. As a result, we recorded a pre-tax impairment of depreciable properties at June 30, 2016 of $14 million, in addition to the impairments noted above. Equity Investments in Unconsolidated Subsidiaries At June 30, 2015, our Oil and Gas segment owned a 25% interest in a pipeline and gathering system, accounted for under the equity method of accounting. Due to sustained low commodity prices, recurring operating losses and future expectations, we reviewed this investment interest for impairment utilizing the other-than-temporary impairment model under ASC 820, Fair Value Measurements. We valued this investment applying a market method approach utilizing assumptions consistent with similar known and measurable transactions. The carrying amount of this equity method investment exceeded the fair value, and we concluded the decline is considered to be other than temporary. As a result we recorded a pre-tax impairment loss at June 30, 2015 of $5.2 million, the difference between the carrying amount and the fair value of the investment. In December of 2015, we sold our 25% interest in this pipeline and gathering system. |
Income Taxes: |
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Income Taxes | INCOME TAXES The effective tax rate differs from the federal statutory rate as follows:
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The lower pre-tax income for the second quarter of 2016 is causing some of the percentages to not be reflective of the expected impact on full year operating results.
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In the first quarter of 2016, we reached an agreement in principle with IRS Appeals in regards to the like-kind exchange transaction associated with the gain deferred from the tax treatment related to the 2008 IPP Transaction and the Aquila Transaction. An agreement in principle was also reached with respect to research and development credits and deductions. Both issues were the subject of an IRS Appeals process involving the 2007 to 2009 tax years. We reversed approximately $35 million of the liability for unrecognized tax benefits, including interest, during the first quarter of 2016. The vast majority of such reversal was to restore accumulated deferred income taxes. We reversed accrued after-tax interest expense and tax credits of approximately $5.1 million associated with these liabilities in the first quarter of 2016. The cash taxes due as a result of the agreement in principle with IRS Appeals is estimated to be $8.0 million excluding interest. |
Accrued Liabilities: |
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Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ACCRUED LIABILITIES The following amounts by major classification are included in Accrued liabilities in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
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Management's Statement: Management's Statement (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Reporting | Segment Reporting We conduct our operations through the following reportable segments: Electric Utilities, Gas Utilities, Power Generation, Mining and Oil and Gas. Our reportable segments are based on our method of internal reporting, which is generally segregated by differences in products, services and regulation. All of our operations and assets are located within the United States. Prior to March 31, 2016, our segments were reported within two business groups, our Utilities Group, containing the Electric Utilities and Gas Utilities segments, and our Non-regulated Energy Group, containing the Power Generation, Coal Mining and Oil and Gas segments. We have continued to report our operations consistently through our reportable segments; however we will no longer separate the segments by business group. We are a customer-focused, growth-oriented, vertically-integrated utility company. All of our non-utility business segments support our electric utilities, other than the Oil and Gas segment. In 2015 we began transitioning the Oil and Gas business to support utilities through a Cost of Service Gas Program. |
Business Combinations | Business Combinations We record acquisitions in accordance with ASC 805, Business Combinations, with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and net intangible assets acquired is recorded as goodwill. The application of ASC 805, Business Combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between goodwill and assets that are depreciated and amortized. Our estimates are based on historical experience, information obtained from the management of the acquired companies and, when appropriate, include assistance from independent third-party appraisal firms. Our significant assumptions and estimates can include, but are not limited to, the cash flows that an acquired entity is expected to generate in the future, the appropriate weighted-average cost of capital, and the savings expected to be derived from the business combination. These estimates are inherently uncertain and unpredictable. In addition, unanticipated events or circumstances may occur which may affect the accuracy or validity of such estimates. See Note 2 for additional detail on the accounting for our acquisition. |
Noncontrolling Interest | Noncontrolling Interest We account for changes in our controlling interests of subsidiaries according to ASC 810, Consolidations. ASC 810 requires that the Company record such changes as equity transactions, recording no gain or loss on such a sale. GAAP requires that noncontrolling interests in subsidiaries and affiliates be reported in the equity section of a company’s balance sheet. In addition, the amounts attributable to the net income (loss) of those subsidiaries are reported separately in the consolidated statements of income and comprehensive income. See Note 11 for additional detail on Noncontrolling Interests. |
Management's Statement: Management's Statement (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | The following changes have been made to our Condensed Consolidated Statements of Income to reflect combined operations and maintenance expenses, rather than by business group as previously reported, for the three and six months ended June 30, 2015, respectively:
Segment information and Corporate activities included in the accompanying Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):
___________
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Acquisition: Acquisition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Separately Recognized Transactions |
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Business Combination, Pro Forma Information | The following pro forma results give effect to the acquisition, assuming the transaction closed on January 1, 2015:
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Business Segment Information: Business Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | The following changes have been made to our Condensed Consolidated Statements of Income to reflect combined operations and maintenance expenses, rather than by business group as previously reported, for the three and six months ended June 30, 2015, respectively:
Segment information and Corporate activities included in the accompanying Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):
___________
|
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Reconciliation of Assets from Segment to Consolidated | Segment information and Corporate balances included in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands):
__________
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Accounts Receivable: Accounts Receivable (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | Following is a summary of Accounts receivable, net included in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
___________
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Regulatory Accounting: Regulatory Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Assets and Liabilities | We had the following regulatory assets and liabilities (in thousands):
__________
Gas Supply Contract Termination - Black Hills Gas Holdings had agreements under the previous ownership that required the company to purchase all of the natural gas produced over the productive life of specific leaseholds in the Bowdoin Field in Montana. The majority of these purchases were committed to distribution customers in Nebraska, Colorado, and Wyoming, which are subject to cost recovery mechanisms. The prices to be paid under these agreements varied, ranging from $6 to $8 per MMBtu at the time of acquisition, and exceeded market prices. We recorded a liability for this contract in our purchase price allocation. We were granted approval to terminate these agreements from the NPSC, CPUC and WPSC, on the basis that these agreements are not beneficial to customers over the long term. We received written orders allowing us to create a regulatory asset for the net buyout costs associated with the contract termination, and recover the majority of costs from customers over a five year period. We terminated the contract and settled the liability on April 29, 2016. Cost of Removal - Cost of removal represents the estimated cumulative net provisions for future removal costs included in depreciation expense for which there is no legal obligation for removal. The increase from the prior periods is due to cost of removal recorded with the SourceGas purchase price allocation. See Note 2 for additional details. |
Materials, Supplies and Fuel: Materials, Supplies and Fuel (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Materials, Supplies and Fuel | The following amounts by major classification are included in Materials, supplies and fuel in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
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Goodwill & Intangible Assets: Goodwill & Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Following is a summary of Goodwill included in the accompanying Condensed Consolidated Balance Sheets (in thousands):
__________
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Schedule of Indefinite-Lived Intangible Assets |
__________
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Earnings Per Share: Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | A reconciliation of share amounts used to compute Earnings (loss) per share in the accompanying Condensed Consolidated Statements of Income (Loss) was as follows (in thousands):
__________
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding securities were excluded in the computation of diluted net income (loss) per share as their inclusion would have been anti-dilutive (in thousands):
|
Notes Payable: Notes Payable and Long-term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Debt | We had the following notes payable outstanding in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
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Schedule of Credit Facility Covenants | our Revolving Credit Facility, our Term Loan and the SourceGas term loan require compliance with the following financial covenant at the end of each quarter:
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Long-Term Debt: Long-Term Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt was as follows (dollars in thousands):
_______________
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Schedule of Maturities of Long-term Debt | Scheduled future maturities of debt, excluding amortization of premiums or discounts are (in thousands):
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Schedule Of Long-Term Debt Due In The Next Twelve Months | As of June 30, 2016, we have the following classified as Current maturities of long-term debt:
_______________
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Equity: Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Stockholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity | A summary of the changes in equity is as follows:
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Risk Management Activities: Risk Management Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The contract or notional amounts, terms of our interest rate swaps and the interest rate swaps balances reflected on the Condensed Consolidated Balance Sheets were as follows (dollars in thousands) as of:
__________
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Contract or Notional Amounts and Terms of Commodity Derivatives | The contract or notional amounts and terms of the natural gas derivative commodity instruments held at our Utilities are composed of both long and short positions. We were in a net long position as of:
__________
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Derivative Instruments, Gain (Loss) | The impacts of cash flow hedges on our Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):
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Oil and Gas [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | We had the following short positions as of:
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Fair Value Measurements: Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Hierarchy, Measured on Recurring Basis | The following tables set forth by level within the fair value hierarchy are gross assets and gross liabilities and related offsetting cash collateral and counterparty netting as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments.
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Schedule of Derivative Instruments Balance Sheet Location | The following tables present the fair value and balance sheet classification of our derivative instruments (in thousands):
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Fair Value of Financial Instruments: Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | The estimated fair values of our financial instruments, excluding derivatives which are presented in Note 13, were as follows (in thousands) as of:
__________
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Other Comprehensive Income (Loss): Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | The components of the reclassification adjustments, net of tax, included in Other Comprehensive Income (Loss) for the periods were as follows (in thousands):
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Schedule of Accumulated Other Comprehensive Income (Loss) | Balances by classification included within Accumulated other comprehensive income (loss) on the accompanying Condensed Consolidated Balance Sheets are as follows (in thousands):
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Supplemental Disclosure of Cash Flow Information: Supplemental Disclosure of Cash Flow Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosure of Cash Flow Information |
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Employee Benefit Plans: Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | Amounts recognized in the Condensed Consolidated Balance Sheet upon the February 12, 2016 acquisition are (in thousands):
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Schedule of Net Benefit Costs | The components of net periodic benefit cost for the Defined Benefit Pension Plans were as follows (in thousands):
Defined Benefit Postretirement Healthcare Plans With the addition of the two SourceGas Postretirement Healthcare Plans, BHC now sponsors five retiree healthcare plans (Healthcare Plans) for employees who meet certain age and service requirements at retirement. Healthcare Plan benefits are subject to premiums, deductibles, co-payment provisions and other limitations. A portion of the Healthcare Plans is pre-funded via Voluntary Employees’ Beneficiary Association, “VEBAs”. Effective January 1, 2014, health care coverage for Medicare-eligible retirees is provided through an individual market healthcare exchange for BHC and Black Hills Utility Holdings retirees. SourceGas retirees do not participate in the individual market healthcare exchange; therefore, all permissible health claims are paid under the self-insured plan. The components of net periodic benefit cost for the Defined Benefit Postretirement Healthcare Plans were as follows (in thousands):
Supplemental Non-qualified Defined Benefit and Defined Contribution Plans The components of net periodic benefit cost for the Supplemental Non-qualified Defined Benefit and Defined Contribution Plans were as follows (in thousands):
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Schedule of Defined Benefit Plans Contributions | Contributions and anticipated contributions are as follows (in thousands):
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Commitments and Contingencies: Supply Commitment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supply Commitment | we assumed various commitments relating to natural gas supply and transportation commitments and lease commitments, as summarized below (in thousands):
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Income Taxes: Income Taxes (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | INCOME TAXES The effective tax rate differs from the federal statutory rate as follows:
__________
The lower pre-tax income for the second quarter of 2016 is causing some of the percentages to not be reflective of the expected impact on full year operating results.
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Accrued Liabilities: Accrued Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | The following amounts by major classification are included in Accrued liabilities in the accompanying Condensed Consolidated Balance Sheets (in thousands) as of:
_________
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Management's Statement: Segment Reporting (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Prior Period Reclassification Adjustment | $ 90,410 | $ 183,544 | ||
Utilities - Operating and maintenance | 0 | 0 | ||
Operating Costs, Nonregulated Energy Operations | 0 | 0 | ||
Operations and maintenance | $ 112,541 | 90,410 | $ 219,603 | 183,544 |
Scenario, Previously Reported [Member] | ||||
Prior Period Reclassification Adjustment | 0 | 0 | ||
Utilities Group [Member] | ||||
Prior Period Reclassification Adjustment | (67,264) | (138,348) | ||
Utilities Group [Member] | Scenario, Previously Reported [Member] | ||||
Prior Period Reclassification Adjustment | 67,264 | 138,348 | ||
Non Regulated Energy Group [Member] | ||||
Prior Period Reclassification Adjustment | (23,146) | (45,196) | ||
Non Regulated Energy Group [Member] | Scenario, Previously Reported [Member] | ||||
Prior Period Reclassification Adjustment | $ 23,146 | $ 45,196 |
Management's Statement: Simplifying The Presentation Of Debt Issuance Costs (Details) - USD ($) $ in Millions |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|
Deferred Finance Costs [Member] | ||
Prior Period Reclassification Adjustment | $ 13 | $ 11 |
Business Segment Information: Information Relating to Segment Statement of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | $ 325,441 | $ 272,254 | $ 775,400 | $ 714,241 | ||||||||||||||
Net income (loss) available for common stock | 669 | (41,842) | 40,671 | (7,992) | ||||||||||||||
Equity Method Investment, Other than Temporary Impairment, Net of Income Taxes | 3,400 | |||||||||||||||||
Prior Period Reclassification Adjustment | 90,410 | 183,544 | ||||||||||||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 2,614 | 0 | 2,662 | 0 | ||||||||||||||
Revenue [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Prior Period Reclassification Adjustment | 8,200 | 25,000 | ||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Basic [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Prior Period Reclassification Adjustment | 100 | 1,400 | ||||||||||||||||
Inter-company eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | (28,408) | (30,785) | (64,163) | (62,722) | ||||||||||||||
Net income (loss) available for common stock | 0 | 0 | 0 | 0 | ||||||||||||||
Corporate activities[Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 0 | 0 | 0 | 0 | ||||||||||||||
Net income (loss) available for common stock | (6,530) | [1] | (2,112) | (22,166) | [1] | (1,443) | ||||||||||||
Business Acquisition, Transaction Costs | 6,300 | 31,000 | 700 | |||||||||||||||
Corporate activities[Member] | Incremental, Non-Recurring Acquisition Costs (Net of Tax) [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Business Acquisition, Transaction Costs | 4,100 | 20,000 | ||||||||||||||||
Corporate activities[Member] | Labor (Net Of Tax) [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Business Acquisition, Transaction Costs | 2,000 | 5,700 | ||||||||||||||||
Consolidation, Eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 0 | 0 | 0 | 0 | ||||||||||||||
Electric Utilities [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 158,560 | 161,514 | [2] | 322,091 | 328,007 | [2] | ||||||||||||
Net income (loss) available for common stock | 19,229 | 17,632 | [2] | 38,444 | 35,185 | [2] | ||||||||||||
Electric Utilities [Member] | Inter-company eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 2,921 | 2,509 | [2] | 6,666 | 5,933 | [2] | ||||||||||||
Gas Utilities [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 153,767 | 87,663 | [2] | 422,434 | 341,795 | [2] | ||||||||||||
Net income (loss) available for common stock | 987 | 3,235 | [2] | 32,914 | 26,823 | [2] | ||||||||||||
Gas Utilities [Member] | Inter-company eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | (1,806) | 0 | [2] | 0 | 0 | [2] | ||||||||||||
Power Generation [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 1,546 | 1,706 | 3,398 | 3,659 | ||||||||||||||
Net income (loss) available for common stock | 5,683 | [3] | 7,549 | 14,265 | [3] | 15,694 | ||||||||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 2,600 | |||||||||||||||||
Power Generation [Member] | Inter-company eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 20,168 | 20,603 | 41,624 | 41,324 | ||||||||||||||
Mining [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 3,922 | 9,052 | 11,456 | 17,194 | ||||||||||||||
Net income (loss) available for common stock | 724 | 3,049 | 3,662 | 6,059 | ||||||||||||||
Mining [Member] | Inter-company eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 7,125 | 7,673 | 15,873 | 15,465 | ||||||||||||||
Oil and Gas [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | 7,646 | 12,319 | 16,021 | 23,586 | ||||||||||||||
Net income (loss) available for common stock | [4] | (19,424) | (71,195) | [5] | (26,448) | (90,310) | [5] | |||||||||||
Impairment of Oil and Gas Properties Net of Tax | 16,000 | 63,000 | 25,000 | 77,000 | ||||||||||||||
Oil and Gas [Member] | Inter-company eliminations [Member] | ||||||||||||||||||
Segment Reporting Information | ||||||||||||||||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||
|
Business Segment Information: Segment and Corporate Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | $ 6,394,864 | $ 4,208,914 | $ 6,394,864 | $ 4,208,914 | $ 4,642,317 | ||||||||||||
Impairment of long-lived assets | 25,497 | 94,484 | 39,993 | 116,520 | |||||||||||||
Corporate activities[Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | 152,522 | 132,210 | 152,522 | 132,210 | 576,358 | [1] | |||||||||||
Electric Utilities [Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | [2] | 2,777,142 | 2,732,663 | [3] | 2,777,142 | 2,732,663 | [3] | 2,720,004 | [3] | ||||||||
Gas Utilities [Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | 3,142,293 | 920,624 | [3] | 3,142,293 | 920,624 | [3] | 999,778 | [3] | |||||||||
Power Generation [Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | [2] | 80,360 | 72,270 | 80,360 | 72,270 | 60,864 | |||||||||||
Mining [Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | 71,319 | 76,079 | 71,319 | 76,079 | 76,357 | ||||||||||||
Oil and Gas [Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | [4] | $ 171,228 | 275,068 | 171,228 | 275,068 | 208,956 | |||||||||||
Impairment of long-lived assets | $ 40,000 | 250,000 | |||||||||||||||
Assets, Total [Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Prior Period Reclassification Adjustment Balance Sheet | $ 119,000 | $ 119,000 | 135,000 | ||||||||||||||
Cash and Cash Equivalents [Member] | Corporate activities[Member] | |||||||||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||||||||
Assets | $ 440,000 | ||||||||||||||||
|
Accounts Receivable: Accounts Receivable (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
||||
---|---|---|---|---|---|---|---|
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | $ (3,726) | $ (1,741) | $ (1,957) | ||||
Accounts receivable, net | 150,227 | 147,486 | 123,661 | ||||
Corporate[Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | 0 | 0 | 0 | ||||
Accounts receivable, net | 2,627 | 1,025 | 983 | ||||
Electric Utilities [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | (716) | (727) | [1] | (746) | [1] | ||
Accounts receivable, net | 74,449 | 76,826 | [1] | 76,040 | [1] | ||
Gas Utilities [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | (2,997) | (1,001) | [1] | (1,198) | [1] | ||
Accounts receivable, net | 67,727 | 62,199 | [1] | 36,951 | [1] | ||
Power Generation [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | 0 | 0 | 0 | ||||
Accounts receivable, net | 1,229 | 1,187 | 1,199 | ||||
Mining [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | 0 | 0 | 0 | ||||
Accounts receivable, net | 1,114 | 2,760 | 3,402 | ||||
Oil and Gas [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Allowance for Doubtful Accounts | (13) | (13) | (13) | ||||
Accounts receivable, net | 3,081 | 3,489 | 5,086 | ||||
Billed Revenues [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 96,655 | 80,484 | 82,699 | ||||
Billed Revenues [Member] | Corporate[Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 2,627 | 1,025 | 983 | ||||
Billed Revenues [Member] | Electric Utilities [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 40,991 | 41,679 | [1] | 44,126 | [1] | ||
Billed Revenues [Member] | Gas Utilities [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 47,600 | 30,331 | [1] | 27,890 | [1] | ||
Billed Revenues [Member] | Power Generation [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 1,229 | 1,187 | 1,199 | ||||
Billed Revenues [Member] | Mining [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 1,114 | 2,760 | 3,402 | ||||
Billed Revenues [Member] | Oil and Gas [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 3,094 | 3,502 | 5,099 | ||||
Unbilled Revenues [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 57,298 | 68,743 | 42,919 | ||||
Unbilled Revenues [Member] | Corporate[Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 0 | 0 | 0 | ||||
Unbilled Revenues [Member] | Electric Utilities [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 34,174 | 35,874 | [1] | 32,660 | [1] | ||
Unbilled Revenues [Member] | Gas Utilities [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 23,124 | 32,869 | [1] | 10,259 | [1] | ||
Unbilled Revenues [Member] | Power Generation [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 0 | 0 | 0 | ||||
Unbilled Revenues [Member] | Mining [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | 0 | 0 | 0 | ||||
Unbilled Revenues [Member] | Oil and Gas [Member] | |||||||
Accounts Receivable [Line Items] | |||||||
Accounts Receivable, Trade | $ 0 | 0 | 0 | ||||
Accounts Receivable, Trade | |||||||
Accounts Receivable [Line Items] | |||||||
Prior Period Reclassification Adjustment Balance Sheet | $ 6,800 | $ 3,100 | |||||
|
Regulatory Accounting: Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Regulatory Assets | $ 275,412 | $ 232,484 | $ 227,972 | |||||||||||||
Regulatory Liabilities | $ 229,441 | 153,041 | 161,745 | |||||||||||||
Deferred energy and gas costs | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 1 year | |||||||||||||||
Regulatory Liabilities | [1],[2] | $ 32,868 | 7,814 | 16,114 | ||||||||||||
Employee benefit plans | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 12 years | |||||||||||||||
Regulatory Liabilities | [3],[4] | $ 62,712 | 47,218 | 53,163 | ||||||||||||
Cost of removal | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 44 years | |||||||||||||||
Regulatory Liabilities | [2] | $ 126,002 | 90,045 | 84,118 | ||||||||||||
Other regulatory liabilities | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 25 years | |||||||||||||||
Regulatory Liabilities | [3] | $ 7,859 | 7,964 | 8,350 | ||||||||||||
Deferred energy and gas costs | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 1 year | |||||||||||||||
Regulatory Assets | [1],[2] | $ 20,603 | 24,751 | 26,862 | ||||||||||||
Deferred gas cost adjustments | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 1 year | |||||||||||||||
Regulatory Assets | [1],[2] | $ 12,122 | 15,521 | 5,588 | ||||||||||||
Gas price derivatives | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 7 years | |||||||||||||||
Regulatory Assets | [2] | $ 11,515 | 23,583 | 17,907 | ||||||||||||
AFUDC | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 45 years | |||||||||||||||
Regulatory Assets | [5] | $ 13,879 | 12,870 | 12,321 | ||||||||||||
Employee benefit plans | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 12 years | |||||||||||||||
Regulatory Assets | [3],[4] | $ 109,522 | 83,986 | 96,734 | ||||||||||||
Environmental | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Regulatory Assets | [2] | $ 1,144 | 1,180 | 1,224 | ||||||||||||
Asset retirement obligations | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 44 years | |||||||||||||||
Regulatory Assets | [2] | $ 505 | 457 | 3,242 | ||||||||||||
Bond issue cost | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 22 years | |||||||||||||||
Regulatory Assets | [2] | $ 3,061 | 3,133 | 3,204 | ||||||||||||
Renewable energy standard adjustment | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 5 years | |||||||||||||||
Regulatory Assets | [5] | $ 2,679 | 5,068 | 5,629 | ||||||||||||
Flow through accounting | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 35 years | |||||||||||||||
Regulatory Assets | [3] | $ 31,554 | 29,722 | 27,861 | ||||||||||||
Decommissioning costs | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 10 years | |||||||||||||||
Regulatory Assets | [6] | $ 18,399 | 18,310 | 14,845 | ||||||||||||
Gas supply contract termination | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 5 years | |||||||||||||||
Regulatory Assets | $ 28,385 | 0 | 0 | |||||||||||||
Other regulatory assets | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Maximum Amortization Period | 15 years | |||||||||||||||
Regulatory Assets | [2] | $ 22,044 | $ 13,903 | $ 12,555 | ||||||||||||
Black Hills Power [Member] | Decommissioning costs | ||||||||||||||||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ||||||||||||||||
Regulatory Assets | [6] | $ 13,000 | ||||||||||||||
|
Regulatory Accounting: Gas Supply Contract Termination (Details) |
Apr. 30, 2016
$ / Btu
|
---|---|
Minimum [Member] | |
Oil and Gas Delivery Commitments and Contracts, Fixed Price | 6 |
Maximum [Member] | |
Oil and Gas Delivery Commitments and Contracts, Fixed Price | 8 |
Materials, Supplies and Fuel: Materials, Supplies and Fuel (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|---|
Inventory, Net [Abstract] | |||
Materials and supplies | $ 67,440 | $ 55,726 | $ 54,646 |
Fuel - Electric Utilities | 4,659 | 5,567 | 6,644 |
Natural gas in storage held for distribution | 13,090 | 25,650 | 12,459 |
Total materials, supplies and fuel | $ 85,189 | $ 86,943 | $ 73,749 |
Goodwill & Intangible Assets: Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | $ 359,759 | ||||||
Additions | [1] | 943,694 | |||||
Goodwill, ending balance | 1,303,453 | ||||||
Electric Utilities [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | [2] | 250,487 | |||||
Additions | 0 | ||||||
Goodwill, ending balance | [2] | 250,487 | |||||
Gas Utilities [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | [2] | 100,507 | |||||
Goodwill, ending balance | [2] | 1,044,201 | |||||
Power Generation [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | 8,765 | ||||||
Additions | 0 | ||||||
Goodwill, ending balance | 8,765 | ||||||
SourceGas Transaction [Member] | Gas Utilities [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Additions | [1] | $ 943,694 | |||||
Goodwill [Member] | |||||||
Goodwill [Line Items] | |||||||
Prior Period Reclassification Adjustment Balance Sheet | $ 6,300 | ||||||
|
Goodwill & Intangible Assets: Intangible Assets (Details) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2016
USD ($)
| ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets, net, beginning balance | $ 3,380 | |||
Amortization expense | (441) | |||
Intangible assets, net, ending balance | $ 9,164 | |||
Source Gas [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |||
Finite-lived Intangible Assets [Roll Forward] | ||||
Additions, net | $ 6,225 | [1] | ||
|
Earnings Per Share: Earnings Per Share (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||||
Earnings Per Share [Abstract] | ||||||||||
Net income (loss) available for common stock | $ 669 | $ (41,842) | $ 40,671 | $ (7,992) | ||||||
Weighted average shares - basic | 51,514,000 | 44,617,000 | 51,279,000 | 44,579,000 | ||||||
Dilutive effect of: | ||||||||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | [1] | 1,362,000 | 0 | 1,068,000 | 0 | |||||
Equity compensation | 110,000 | 0 | 107,000 | 0 | ||||||
Weighted average shares - diluted | 52,986,000 | 44,617,000 | [2] | 52,454,000 | 44,579,000 | [2] | ||||
Securities Excluded From Diluted Earnings Per Share Due To Net Loss | 83,613 | 101,146 | ||||||||
|
Earnings Per Share: Anti-dilutive shares (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 4 | 119 | 10 | 113 |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 4 | 119 | 10 | 113 |
Notes Payable: Notes Payable (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
|
Revolving Credit Facility [Line Items] | |||
Balance Outstanding | $ 75,000 | $ 76,800 | $ 105,760 |
Revolving Credit Facility [Member] | |||
Revolving Credit Facility [Line Items] | |||
Balance Outstanding | 75,000 | 76,800 | 105,760 |
Letters of Credit | 24,700 | $ 33,399 | $ 23,100 |
Current Borrowing Capacity | $ 500,000 | ||
Expiration Date | Jun. 26, 2020 | ||
Maximum Borrowing Capacity | $ 750,000 | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.175% | ||
Revolving Credit Facility [Member] | Base Rate [Member] | |||
Revolving Credit Facility [Line Items] | |||
Interest Rate at Period End | 0.125% | ||
Revolving Credit Facility [Member] | Eurodollar [Member] | |||
Revolving Credit Facility [Line Items] | |||
Interest Rate at Period End | 1.125% | ||
Revolving Credit Facility [Member] | Letter of Credit [Member] | |||
Revolving Credit Facility [Line Items] | |||
Interest Rate at Period End | 1.125% |
Notes Payable: Debt covenants (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
Feb. 12, 2016 |
Feb. 11, 2016 |
Jan. 13, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
---|---|---|---|---|---|---|
Long-term Debt, Gross | $ 3,167,367 | $ 1,866,866 | $ 1,567,727 | |||
Revolving Credit Facility [Member] | ||||||
Recourse Leverage Ratio | 69.00% | |||||
Minimum [Member] | ||||||
Debt instrument, covenant, Leverage Recourse Ratio | 0.75 | 0.65 | ||||
Debt Instrument, Consolidated Debt to Capitalization Ratio | 0.75 | |||||
Maximum [Member] | ||||||
Debt instrument, covenant, Leverage Recourse Ratio | 1.00 | 1.00 | ||||
Debt Instrument, Consolidated Debt to Capitalization Ratio | 1.00 | |||||
Black Hills Corporation [Member] | ||||||
Long-term Debt, Gross | $ 550,000 | |||||
Corporate Term Loan Due June 2017 [Member] | Black Hills Corporation [Member] | ||||||
Long-term Debt, Gross | $ 340,000 |
Long-Term Debt: Long-Term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Jun. 07, 2016 |
Feb. 12, 2016 |
Jan. 13, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Gross | $ 3,167,367 | $ 1,866,866 | $ 1,567,727 | |||||||||||||||||
Long-term Debt, Current Maturities | (930,743) | 0 | 0 | |||||||||||||||||
Deferred Finance Costs, Net | [1] | (15,277) | (13,184) | (11,357) | ||||||||||||||||
Long-term Debt, Excluding Current Maturities | 2,221,347 | 1,853,682 | 1,556,370 | |||||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Deferred Finance Costs, Net | (1,500) | (1,700) | (1,900) | |||||||||||||||||
Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Gross | $ 550,000 | |||||||||||||||||||
Senior Unsecured Notes Due 2026 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||||||||||||||||||
Long-term Debt, Gross | $ 300,000 | |||||||||||||||||||
Senior Unsecured Notes Due 2019 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||||||||||||||||||
Long-term Debt, Gross | $ 250,000 | |||||||||||||||||||
Corporate Term Loan Due June 2017 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Gross | 340,000 | |||||||||||||||||||
Gas Utilities [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Gross | $ 424,195 | 0 | 0 | |||||||||||||||||
Gas Utilities [Member] | Senior Secured Notes due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [2],[3],[4] | 3.98% | ||||||||||||||||||
Long-term Debt, Gross | $ 99,272 | [2],[3],[4] | 0 | 0 | ||||||||||||||||
Gas Utilities [Member] | Senior Unsecured Notes Due 2017 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [4] | 5.90% | ||||||||||||||||||
Long-term Debt, Gross | $ 325,000 | [4] | 0 | 0 | ||||||||||||||||
Debt Instrument, Unamortized Discount | (77) | 0 | 0 | |||||||||||||||||
Electric Utilities [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Gross | $ 544,758 | 544,756 | 544,754 | |||||||||||||||||
Electric Utilities [Member] | First Mortgage Bonds Due 2044 [Member] | Black Hills Power [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.43% | |||||||||||||||||||
Long-term Debt, Gross | $ 85,000 | 85,000 | 85,000 | |||||||||||||||||
Electric Utilities [Member] | First Mortgage Bonds Due 2044 [Member] | Cheyenne Light [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.53% | |||||||||||||||||||
Long-term Debt, Gross | $ 75,000 | 75,000 | 75,000 | |||||||||||||||||
Electric Utilities [Member] | First Mortgage Bonds Due 2032 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.23% | |||||||||||||||||||
Long-term Debt, Gross | $ 75,000 | 75,000 | 75,000 | |||||||||||||||||
Electric Utilities [Member] | First Mortgage Bonds Due 2039 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | |||||||||||||||||||
Long-term Debt, Gross | $ 180,000 | 180,000 | 180,000 | |||||||||||||||||
Debt Instrument, Unamortized Discount | $ (97) | (99) | (101) | |||||||||||||||||
Electric Utilities [Member] | First Mortgage Bonds Due 2037 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.67% | |||||||||||||||||||
Long-term Debt, Gross | $ 110,000 | 110,000 | 110,000 | |||||||||||||||||
Electric Utilities [Member] | Industrial Development Revenue Bonds Due 2021 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [5] | 0.43% | ||||||||||||||||||
Long-term Debt, Gross | [5] | $ 7,000 | 7,000 | 7,000 | ||||||||||||||||
Electric Utilities [Member] | Industrial Development Revenue Bonds Due 2027 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [5] | 0.43% | ||||||||||||||||||
Long-term Debt, Gross | [5] | $ 10,000 | 10,000 | 10,000 | ||||||||||||||||
Electric Utilities [Member] | Bonds Due 2024 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [5] | 0.75% | ||||||||||||||||||
Long-term Debt, Gross | [5] | $ 2,855 | 2,855 | 2,855 | ||||||||||||||||
Corporate[Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Gross | $ 2,198,414 | 1,322,110 | 1,022,973 | |||||||||||||||||
Corporate[Member] | Remarketable Junior Subordinated Notes Due 2028 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||||||||||||||||
Long-term Debt, Gross | $ 299,000 | 299,000 | 0 | |||||||||||||||||
Corporate[Member] | Senior Unsecured Notes Due 2026 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||||||||||||||||||
Long-term Debt, Gross | $ 300,000 | 0 | 0 | |||||||||||||||||
Debt Instrument, Unamortized Discount | $ (867) | 0 | 0 | |||||||||||||||||
Corporate[Member] | Senior Unsecured Notes Due 2023 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |||||||||||||||||||
Long-term Debt, Gross | $ 525,000 | 525,000 | 525,000 | |||||||||||||||||
Debt Instrument, Unamortized Discount | $ (1,754) | (1,890) | (2,027) | |||||||||||||||||
Corporate[Member] | Senior Unsecured Notes Due 2020 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | |||||||||||||||||||
Long-term Debt, Gross | $ 200,000 | 200,000 | 200,000 | |||||||||||||||||
Corporate[Member] | Senior Unsecured Notes Due 2019 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||||||||||||||||||
Long-term Debt, Gross | $ 250,000 | 0 | 0 | |||||||||||||||||
Debt Instrument, Unamortized Discount | $ (243) | 0 | 0 | |||||||||||||||||
Corporate[Member] | Corporate Term Loan Due June 2021 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.32% | |||||||||||||||||||
Long-term Debt, Gross | $ 27,278 | 0 | 0 | |||||||||||||||||
Corporate[Member] | London Interbank Offered Rate (LIBOR) [Member] | Corporate Term Loan Due June 2017 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [4],[6] | 1.38% | ||||||||||||||||||
Long-term Debt, Gross | $ 340,000 | [4],[6] | 0 | 0 | ||||||||||||||||
Corporate[Member] | London Interbank Offered Rate (LIBOR) [Member] | Corporate Term Loan Due April 2017 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [6] | 1.40% | ||||||||||||||||||
Long-term Debt, Gross | [6] | $ 260,000 | $ 300,000 | $ 300,000 | ||||||||||||||||
Corporate[Member] | London Interbank Offered Rate (LIBOR) [Member] | Corporate Term Loan Due June 2021 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.32% | |||||||||||||||||||
Long-term Debt, Gross | $ 29,000 | |||||||||||||||||||
Source Gas [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt, Working Capital Adjustment | $ 4,200 | |||||||||||||||||||
Source Gas [Member] | London Interbank Offered Rate (LIBOR) [Member] | Corporate Term Loan Due June 2017 [Member] | Black Hills Corporation [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [4],[6] | 0.875% | ||||||||||||||||||
Source Gas [Member] | Gas Utilities [Member] | Senior Secured Notes due 2019 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [2],[4] | 3.98% | ||||||||||||||||||
Source Gas [Member] | Gas Utilities [Member] | Senior Unsecured Notes Due 2017 [Member] | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [4] | 5.90% | ||||||||||||||||||
|
Long-Term Debt: Aggregate Maturities of Long Term Debt (Details) $ in Thousands |
Jun. 30, 2016
USD ($)
|
---|---|
Long-term Debt, Unclassified [Abstract] | |
2016 | $ 2,871 |
2017 | 930,743 |
2018 | 5,743 |
2019 | 355,015 |
2020 | 205,742 |
Thereafter | $ 1,670,291 |
Long-Term Debt: Current Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 07, 2016 |
||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 930,743 | ||||||||
Corporate activities[Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | 605,743 | ||||||||
Black Hills Corporation [Member] | Corporate activities[Member] | Corporate Term Loan Due April 2017 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 260,000 | ||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [1] | 1.40% | |||||||
Black Hills Corporation [Member] | Corporate activities[Member] | Corporate Term Loan Due June 2021 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.32% | ||||||||
Black Hills Corporation [Member] | Corporate activities[Member] | Corporate Term Loan Due June 2021 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | [2] | $ 5,743 | |||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.32% | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 1,400 | ||||||||
Debt Instrument, Frequency of Periodic Payment | quarterly | ||||||||
Black Hills Corporation [Member] | Corporate activities[Member] | Corporate Term Loan Due June 2017 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 340,000 | ||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [1],[3] | 1.38% | |||||||
Gas Utilities [Member] | Senior Unsecured Notes Due 2017 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 325,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | [3] | 5.90% | |||||||
|
Long-Term Debt: Debt Transactions (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 06, 2016 |
Jan. 13, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 07, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 3,167,367 | $ 1,567,727 | $ 1,866,866 | |||
Long-term debt - issuances | $ 546,000 | 574,672 | 300,000 | |||
Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 550,000 | |||||
Senior Unsecured Notes Due 2026 [Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 300,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||||
Debt Instrument, Term | 10 years | |||||
Senior Unsecured Notes Due 2019 [Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||||
Debt Instrument, Term | 3 years | |||||
Corporate activities[Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 2,198,414 | 1,022,973 | 1,322,110 | |||
Corporate activities[Member] | Corporate Term Loan Due June 2021 [Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 27,278 | 0 | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.32% | |||||
Corporate activities[Member] | Senior Unsecured Notes Due 2026 [Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 300,000 | 0 | 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||||
Corporate activities[Member] | Senior Unsecured Notes Due 2019 [Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 250,000 | $ 0 | $ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | |||||
London Interbank Offered Rate (LIBOR) [Member] | Corporate activities[Member] | Corporate Term Loan Due June 2021 [Member] | Black Hills Corporation [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.32% | |||||
Long-term Debt, Gross | $ 29,000 | |||||
Debt Instrument, Frequency of Periodic Payment | quarterly | |||||
Debt Instrument, Periodic Payment | $ 1,600 |
Long-Term Debt: Assumption of Black Hills Holdings LTD (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Feb. 12, 2016 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Source Gas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 760,000 | ||||||||||
Senior Unsecured Notes Due 2017 [Member] | Gas Utilities [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 5.90% | |||||||||
Senior Unsecured Notes Due 2017 [Member] | Gas Utilities [Member] | Source Gas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | [1] | $ 325,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 5.90% | |||||||||
Senior Secured Notes due 2019 [Member] | Gas Utilities [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2],[3] | 3.98% | |||||||||
Senior Secured Notes due 2019 [Member] | Gas Utilities [Member] | Source Gas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | [1],[2] | $ 95,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1],[2] | 3.98% | |||||||||
Black Hills Corporation [Member] | London Interbank Offered Rate (LIBOR) [Member] | Corporate Term Loan Due June 2017 [Member] | Source Gas [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | [1],[4] | $ 340,000 | |||||||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | [1],[4] | 0.875% | |||||||||
|
Equity: Stockholders Equity Recap (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total Stockholders' Equity, beginning balance | $ 1,465,867 | $ 1,465,867 | ||||
Noncontrolling Interest, beginning balance | 0 | 0 | ||||
Total Equity, beginning balance | 1,465,867 | $ 1,353,884 | 1,465,867 | $ 1,353,884 | ||
Net income (loss) available for common stock | $ 669 | $ (41,842) | 40,671 | (7,992) | ||
Net Income (Loss) Including Portion Attributable to Noncontrolling Interest (Excluding Income Loss Attributable to Redeemable Noncontrolling Interest) | 43,303 | (7,992) | ||||
Other comprehensive income (loss) | (10,939) | (11,770) | (2,805) | 990 | (22,709) | (1,815) |
Dividends on common stock | (43,270) | (36,292) | ||||
Share-based compensation | 2,192 | 1,601 | ||||
Issuance of common stock | 55,802 | 0 | ||||
Dividend reinvestment and stock purchase plan | 1,478 | 1,516 | ||||
Other stock transactions | (20) | (16) | ||||
Sale of noncontrolling interest | 177,302 | |||||
Total Stockholders' Equity, ending balance | 1,562,427 | 1,310,886 | 1,562,427 | 1,310,886 | ||
Noncontrolling Interest, ending balance | 117,518 | 0 | 117,518 | 0 | ||
Total Equity, ending balance | 1,679,945 | 1,310,886 | 1,679,945 | 1,310,886 | ||
Parent [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total Stockholders' Equity, beginning balance | 1,465,867 | 1,353,884 | 1,465,867 | 1,353,884 | ||
Net income (loss) available for common stock | 40,671 | (7,992) | ||||
Other comprehensive income (loss) | (22,709) | (1,815) | ||||
Dividends on common stock | (43,270) | (36,292) | ||||
Share-based compensation | 2,192 | 1,601 | ||||
Issuance of common stock | 55,802 | 0 | ||||
Dividend reinvestment and stock purchase plan | 1,478 | 1,516 | ||||
Other stock transactions | (20) | (16) | ||||
Sale of noncontrolling interest | 62,416 | |||||
Total Stockholders' Equity, ending balance | 1,562,427 | 1,310,886 | 1,562,427 | 1,310,886 | ||
Noncontrolling Interest [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Noncontrolling Interest, beginning balance | $ 0 | $ 0 | 0 | 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest (Excluding Income Loss Attributable to Redeemable Noncontrolling Interest) | 2,632 | 0 | ||||
Other comprehensive income (loss) | 0 | 0 | ||||
Dividends on common stock | 0 | 0 | ||||
Share-based compensation | 0 | 0 | ||||
Issuance of common stock | 0 | 0 | ||||
Dividend reinvestment and stock purchase plan | 0 | 0 | ||||
Other stock transactions | 0 | 0 | ||||
Sale of noncontrolling interest | 114,886 | |||||
Noncontrolling Interest, ending balance | $ 117,518 | $ 0 | $ 117,518 | $ 0 |
Equity: At-the-Market Equity Offering Program (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 06, 2016 |
Jun. 30, 2016 |
Jun. 30, 2016 |
Mar. 18, 2016 |
|
At The Market Equity Offering Program Authorized Aggregate Value | $ 200.0 | |||
Payments of Stock Issuance Costs | $ 0.5 | $ 0.6 | ||
Common Stock [Member] | ||||
At The Market Equity Offering Program Shares Issued | 809,649 | 930,649 | ||
At the Market Equity Program - Proceeds From Sale of Stock | $ 49.0 | $ 56.0 | ||
Subsequent Event [Member] | Common Stock [Member] | ||||
At The Market Equity Offering Program Shares Issued | 46,576 | |||
At the Market Equity Program - Proceeds From Sale of Stock | $ 2.9 |
Equity: Variable Interest Entities (Details) - USD ($) $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Apr. 14, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.90% | |||
Sale of noncontrolling interest | $ 216,370 | $ 0 | ||
Current assets | 443,734 | 438,572 | $ 822,151 | |
Property, plant and equipment of variable interest entities, net | 6,209,816 | 4,726,478 | 4,976,778 | |
Current liabilities | 1,467,896 | 358,508 | 422,029 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.90% | |||
Sale of noncontrolling interest | $ 216,000 | |||
Current assets | 12,681 | 0 | 0 | |
Property, plant and equipment of variable interest entities, net | 224,128 | 0 | 0 | |
Current liabilities | $ 4,174 | $ 0 | $ 0 |
Risk Management Activities: Risk Management Activities (Details) $ in Thousands |
6 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
MMBTU
bbl
|
Jun. 30, 2015
USD ($)
MMBTU
bbl
|
Dec. 31, 2015
USD ($)
MMBTU
bbl
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Derivative assets, non-current | $ 226 | $ 0 | $ 3,441 | ||||||||||||||
Derivative liabilities, current | 28,855 | 3,289 | 2,835 | ||||||||||||||
Derivative liabilities, non-current | 231 | $ 1,433 | $ 156 | ||||||||||||||
Oil and Gas [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 2,700 | ||||||||||||||||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (29,000) | ||||||||||||||||
Crude Oil [Member] | Swaps and Options [Member] | Oil and Gas [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | bbl | [1] | 210,000 | 276,000 | 198,000 | |||||||||||||
Maximum Term Hedged in Cash Flow Hedge | [2] | 30 months | 18 months | 24 months | |||||||||||||
Natural Gas [Member] | Swap [Member] | Oil and Gas [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | [1] | 2,530,000 | 4,187,500 | 4,392,500 | |||||||||||||
Maximum Term Hedged in Cash Flow Hedge | [2] | 18 months | 18 months | 24 months | |||||||||||||
Natural Gas, Distribution [Member] | Future [Member] | Purchase Contract [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | 18,080,000 | 17,270,000 | 20,580,000 | ||||||||||||||
Maximum Term | [3] | 54 months | 66 months | 60 months | |||||||||||||
Natural Gas, Distribution [Member] | Commodity Option [Member] | Purchase Contract [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | 3,770,000 | 3,980,000 | 2,620,000 | ||||||||||||||
Maximum Term | [3] | 20 months | 9 months | 3 months | |||||||||||||
Natural Gas, Distribution [Member] | Basis Swap [Member] | Purchase Contract [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | 15,320,000 | 14,445,000 | 18,150,000 | ||||||||||||||
Maximum Term | [3] | 54 months | 54 months | 60 months | |||||||||||||
Natural Gas, Distribution [Member] | Fixed for Float Swaps Purchased [Member] | Purchase Contract [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | 5,029,500 | [4] | 0 | 0 | |||||||||||||
Maximum Term | [3] | 23 months | 0 months | 0 months | |||||||||||||
Natural Gas, Distribution [Member] | Natural Gas Physical Purchases [Member] | Purchase Contract [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | 1,666,800 | 0 | 0 | ||||||||||||||
Maximum Term | [3] | 9 months | 0 months | 0 months | |||||||||||||
Revolving Credit Facility [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Maximum Term | 6 months | 1 year 6 months | 1 year | ||||||||||||||
Derivative assets, non-current | $ 0 | $ 0 | $ 0 | ||||||||||||||
Derivative liabilities, current | 1,505 | 3,289 | 2,835 | ||||||||||||||
Derivative liabilities, non-current | 0 | 1,433 | 156 | ||||||||||||||
Notional Amount | [5] | $ 75,000 | $ 75,000 | $ 75,000 | |||||||||||||
Weighted average fixed interest rate | 4.97% | 4.97% | 4.97% | ||||||||||||||
Cash Flow Hedging [Member] | Natural Gas, Distribution [Member] | Fixed for Float Swaps Purchased [Member] | Purchase Contract [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Notional amount - commodities | MMBTU | [4] | 2,974,500 | |||||||||||||||
Interest Rate Swap One [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Maximum Term | 10 months | 1 year 4 months | |||||||||||||||
Derivative assets, non-current | $ 0 | $ 3,441 | |||||||||||||||
Derivative liabilities, current | 18,500 | 0 | |||||||||||||||
Derivative liabilities, non-current | 0 | 0 | |||||||||||||||
Notional Amount | [6] | $ 250,000 | $ 250,000 | ||||||||||||||
Weighted average fixed interest rate | 2.29% | 2.29% | |||||||||||||||
Interest Rate Swap Two [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||||||||||||||
Derivative [Line Items] | |||||||||||||||||
Maximum Term | 10 months | ||||||||||||||||
Derivative assets, non-current | $ 0 | ||||||||||||||||
Derivative liabilities, current | 8,553 | ||||||||||||||||
Derivative liabilities, non-current | 0 | ||||||||||||||||
Notional Amount | [6] | $ 150,000 | |||||||||||||||
Weighted average fixed interest rate | 2.09% | ||||||||||||||||
|
Risk Management Activities: Hedging Activities (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | $ (15,066) | $ (3,137) | $ (30,931) | $ (258) |
Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion) | (2,386) | 1,996 | (5,098) | 4,491 |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | (12,614) | (892) | (30,665) | (1,778) |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 | 0 |
Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion) | 840 | (1,670) | 1,690 | (3,107) |
Commodity Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | (2,245) | (1,039) | 1,520 | |
Commodity Contract [Member] | Revenue [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | (2,847) | |||
Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion) | (3,287) | 3,666 | (6,939) | 7,598 |
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | 0 | $ 0 | 0 | $ 0 |
Commodity Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion) | 395 | 773 | ||
Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion) | 61 | 151 | ||
Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion) | $ 0 | $ 0 |
Fair Value Measurements: Fair Value Measurements (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|---|
Fair Value, Transfers Between Level 1 and Level 2, Description and Policy [Abstract] | |||
Assets-Transfers out of level 1 to 2 | $ 0 | $ 0 | $ 0 |
Assets -Transfers out of level 2 to 1 | 0 | 0 | 0 |
Liabilities -Transfers out of level 1 to 2 | 0 | 0 | 0 |
Liabilities -Transfers out of level 2 to 1 | 0 | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (5,325) | (12,937) | (12,127) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (14,427) | (25,141) | (19,368) |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Total | 0 | 0 | 0 |
Derivative Liabilities, Total | 0 | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Total | 9,581 | 16,378 | 12,127 |
Derivative Liabilities, Total | 43,513 | 28,132 | 24,090 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Total | 0 | 0 | 0 |
Derivative Liabilities, Total | 0 | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 3,441 | 0 |
Derivative Liabilities, Fair Value Disclosure | 28,558 | 2,991 | 4,722 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Crude Oil [Member] | Future [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (816) | ||
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | ||
Crude Oil [Member] | Future [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | ||
Derivative Liabilities, Fair Value Disclosure | 0 | ||
Crude Oil [Member] | Future [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 1,950 | ||
Derivative Liabilities, Fair Value Disclosure | 157 | ||
Crude Oil [Member] | Future [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | ||
Derivative Liabilities, Fair Value Disclosure | 0 | ||
Crude Oil [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (6,309) | (5,178) | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | (112) | |
Crude Oil [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | |
Crude Oil [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 6,309 | 5,178 | |
Derivative Liabilities, Fair Value Disclosure | 0 | 112 | |
Crude Oil [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | |
Natural Gas [Member] | Commodity Option [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | 0 | 0 |
Natural Gas [Member] | Commodity Option [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Natural Gas [Member] | Commodity Option [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Natural Gas [Member] | Commodity Option [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Natural Gas [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (334) | (4,335) | (4,372) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | (556) | (498) |
Natural Gas [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Natural Gas [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 798 | 4,335 | 4,372 |
Derivative Liabilities, Fair Value Disclosure | 71 | 556 | 498 |
Natural Gas [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Natural Gas, Distribution [Member] | Fair Value, Measurements, Recurring [Member] | Utilities Group [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (4,175) | (2,293) | (2,577) |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (14,427) | (24,585) | (18,758) |
Natural Gas, Distribution [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Utilities Group [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Natural Gas, Distribution [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Utilities Group [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 6,833 | 2,293 | 2,577 |
Derivative Liabilities, Fair Value Disclosure | 14,727 | 24,585 | 18,758 |
Natural Gas, Distribution [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Utilities Group [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Total | 4,256 | 3,441 | 0 |
Derivative Liabilities, Total | 29,086 | 2,991 | 4,722 |
Estimate of Fair Value Measurement [Member] | Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 3,441 | 0 |
Derivative Liabilities, Fair Value Disclosure | 28,558 | 2,991 | 4,722 |
Estimate of Fair Value Measurement [Member] | Crude Oil [Member] | Future [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 1,134 | ||
Derivative Liabilities, Fair Value Disclosure | 157 | ||
Estimate of Fair Value Measurement [Member] | Crude Oil [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | |
Estimate of Fair Value Measurement [Member] | Natural Gas [Member] | Commodity Option [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 0 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 0 | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Natural Gas [Member] | Basis Swap [Member] | Fair Value, Measurements, Recurring [Member] | Oil and Gas [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 464 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | 71 | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Natural Gas, Distribution [Member] | Fair Value, Measurements, Recurring [Member] | Utilities Group [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Assets, Commodity Derivatives | 2,658 | 0 | 0 |
Derivative Liabilities, Fair Value Disclosure | $ 300 | $ 0 | $ 0 |
Fair Value Measurements: Balance Sheet Location (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
---|---|---|---|
Designated as Hedging Instrument [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Net | $ 2,630 | $ 14,085 | $ 9,550 |
Derivative Liability, Fair Value, Net | 28,828 | 3,547 | 5,332 |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Net | 1,626 | 0 | 0 |
Derivative Liability, Fair Value, Net | 258 | 22,292 | 16,181 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Assets, Current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 2,549 | 9,981 | 6,931 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | 0 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Assets, Non-current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 81 | 663 | 2,619 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | 0 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Liabilities, Current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 44 | 465 | 493 |
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | Derivative Liabilities, Non-current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 226 | 91 | 117 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Derivative Assets, Current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 1,481 | 0 | 0 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Derivative Assets, Non-current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 145 | 0 | 0 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Derivative Liabilities, Current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 254 | 9,586 | 5,156 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Derivative Liabilities, Non-current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 4 | 12,706 | 11,025 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Derivative Assets, Non-current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 0 | 3,441 | |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Derivative Liabilities, Current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 28,558 | 2,835 | 3,289 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Derivative Liabilities, Non-current [Member] | |||
Derivatives, Carrying Amount and Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 156 | $ 1,433 |
Fair Value of Financial Instruments: Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|||||
---|---|---|---|---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Cash and cash equivalents | $ 116,805 | $ 456,535 | $ 87,210 | $ 21,218 | |||||
Restricted cash and equivalents | 1,975 | 1,697 | 2,316 | ||||||
Notes payable | 75,000 | 76,800 | 105,760 | ||||||
Carrying Amount [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Cash and cash equivalents | 116,805 | 456,535 | 87,210 | ||||||
Restricted cash and equivalents | 1,975 | 1,697 | 2,316 | ||||||
Notes payable | 75,000 | 76,800 | 105,760 | ||||||
Long-term debt, including current maturities | 3,152,090 | 1,853,682 | 1,556,370 | ||||||
Fair Value [Member] | |||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||
Cash and cash equivalents, Fair Value | [1] | 116,805 | 456,535 | 87,210 | |||||
Restricted Cash Fair Value Disclosure | [1] | 1,975 | 1,697 | 2,316 | |||||
Notes payable, Fair Value | [1] | 75,000 | 76,800 | 105,760 | |||||
Long-term debt, including current maturities, Fair Value | [2] | $ 3,427,587 | $ 1,992,274 | $ 1,700,487 | |||||
|
Other Comprehensive Income (Loss): Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 34,609 | $ 19,545 | $ 66,683 | $ 39,455 |
Revenue | 325,441 | 272,254 | 775,400 | 714,241 |
Fuel, purchased power and cost of natural gas sold | (84,489) | (73,824) | (256,345) | (279,151) |
Operations and maintenance | 112,541 | 90,410 | 219,603 | 183,544 |
Income (loss) before earnings (loss) of unconsolidated subsidiaries and income taxes | 3,592 | (56,942) | 47,894 | (5,083) |
Income tax benefit (expense) | (309) | 20,317 | (4,561) | 2,605 |
Reclassification adjustments related to cash flow hedges, net of tax | 669 | (41,842) | 40,671 | (7,992) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before earnings (loss) of unconsolidated subsidiaries and income taxes | (2,386) | (1,996) | (5,098) | (4,491) |
Income tax benefit (expense) | 882 | 735 | 1,884 | 1,989 |
Reclassification adjustments related to cash flow hedges, net of tax | (1,504) | (1,261) | (3,214) | (2,502) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Interest Rate Contract [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 840 | 1,670 | 1,690 | 3,107 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Commodity Contract [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | (3,287) | (3,666) | (6,939) | (7,598) |
Fuel, purchased power and cost of natural gas sold | 61 | 0 | 151 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Cost (Credit) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Operations and maintenance | (55) | (55) | (110) | (110) |
Accumulated Defined Benefit Plans Adjustment, Net Unamortized Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Operations and maintenance | 494 | 705 | 988 | 1,410 |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before earnings (loss) of unconsolidated subsidiaries and income taxes | 439 | 650 | 878 | 1,300 |
Income tax benefit (expense) | (154) | (228) | (307) | (456) |
Reclassification adjustments related to cash flow hedges, net of tax | $ 285 | $ 422 | $ 571 | $ 844 |
Other Comprehensive Income (Loss): Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (20,825) | $ (9,055) | $ (14,054) | $ (15,044) | $ (9,055) | $ (15,044) |
Other Comprehensive Income (Loss), Net of Tax | (10,939) | (11,770) | (2,805) | 990 | (22,709) | (1,815) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (31,764) | (20,825) | (16,859) | (14,054) | (31,764) | (16,859) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,331) | 6,725 | 5,688 | 5,093 | 6,725 | 5,093 |
Other Comprehensive Income (Loss), Net of Tax | (11,224) | (12,056) | 422 | 595 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (16,555) | (5,331) | 6,110 | 5,688 | (16,555) | 6,110 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (15,494) | (15,780) | (19,742) | (20,137) | (15,780) | (20,137) |
Other Comprehensive Income (Loss), Net of Tax | 285 | 286 | (3,227) | 395 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (15,209) | $ (15,494) | $ (22,969) | $ (19,742) | $ (15,209) | $ (22,969) |
Supplemental Disclosure of Cash Flow Information: Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Non-cash Investing and Financing Activities from Continuing Operations [Abstract] | ||
Property, plant and equipment acquired with accrued liabilities | $ 52,917 | $ 36,661 |
Supplemental Cash Flow Elements [Abstract] | ||
Interest (net of amounts capitalized) | (48,139) | (37,698) |
Income taxes, net | $ (1,162) | $ (1,202) |
Employee Benefit Plans: Employee Benefit Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Feb. 12, 2016 |
|
Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | $ 2,800 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | $ 2,078 | $ 1,494 | 4,156 | $ 2,988 | |
Interest Cost | 3,936 | 3,880 | 7,872 | 7,760 | |
Expected return on plan assets | (5,766) | (4,867) | (11,531) | (9,734) | |
Prior service cost (benefit) | 15 | 15 | 30 | 30 | |
Net loss (gain) | 1,793 | 2,759 | 3,586 | 5,518 | |
Net periodic benefit cost | 2,056 | 3,281 | 4,113 | 6,562 | |
Pension and Other Postretirement Benefit Contributions [Abstract] | |||||
Contributions by Employer | 10,200 | 10,200 | |||
Estimated Future Employer Contributions in Current Fiscal Year | 0 | ||||
Estimated Future Employer Contributions in Next Fiscal Year | 10,200 | ||||
Other Pension Plan, Postretirement or Supplemental Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | 300 | ||||
Supplemental Non-qualified Defined Benefit and Defined Contribution Plans | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 878 | 392 | 907 | 883 | |
Interest Cost | 315 | 364 | 629 | 728 | |
Prior service cost (benefit) | 1 | 1 | 1 | 2 | |
Net loss (gain) | 207 | 270 | 414 | 540 | |
Net periodic benefit cost | 1,401 | 1,027 | 1,951 | 2,153 | |
Pension and Other Postretirement Benefit Contributions [Abstract] | |||||
Contributions by Employer | 392 | 784 | |||
Estimated Future Employer Contributions in Current Fiscal Year | 784 | ||||
Estimated Future Employer Contributions in Next Fiscal Year | 1,627 | ||||
Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Interest cost | 400 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 467 | 464 | 934 | 928 | |
Interest Cost | 485 | 450 | 970 | 900 | |
Expected return on plan assets | (70) | (33) | (140) | (66) | |
Prior service cost (benefit) | (107) | (107) | (214) | (214) | |
Net loss (gain) | 84 | 102 | 168 | 204 | |
Net periodic benefit cost | 859 | $ 876 | 1,718 | $ 1,752 | |
Pension and Other Postretirement Benefit Contributions [Abstract] | |||||
Contributions by Employer | $ 1,192 | 2,384 | |||
Estimated Future Employer Contributions in Current Fiscal Year | 2,384 | ||||
Estimated Future Employer Contributions in Next Fiscal Year | $ 4,744 | ||||
Source Gas [Member] | Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Funded Status of Plan | $ 22,187 | ||||
Source Gas [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Funded Status of Plan | $ 11,751 | ||||
Interest Cost [Member] | Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.827% | 3.827% | |||
Interest Cost [Member] | Supplemental Non-qualified Defined Benefit and Defined Contribution Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.817% | 3.817% | |||
Interest Cost [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.284% | 3.284% | |||
Interest Cost [Member] | Source Gas [Member] | Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.69% | 3.69% | |||
Interest Cost [Member] | Source Gas [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.319% | 3.319% | |||
Scenario, Previously Reported [Member] | Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.575% | 4.575% | |||
Scenario, Previously Reported [Member] | Supplemental Non-qualified Defined Benefit and Defined Contribution Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | 4.50% | |||
Scenario, Previously Reported [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.165% | 4.165% |
Commitments and Contingencies: Supply Commitments (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
Bcf
| |
Natural Gas [Member] | |
Unrecorded Unconditional Purchase Obligation, Due In the next Twelve Months, Physical Quantities Of Natural Gas | Bcf | 0.24 |
Unrecorded Unconditional Purchase Obligation, Due Within Two Years, Physical Quantities Of Natural Gas | Bcf | 1.20 |
Unrecorded Unconditional Purchase Obligation, Due Within Three Years, Physical Quantities of Natural Gas | Bcf | 0.97 |
Natural Gas Purchases | $ 1,700 |
Source Gas [Member] | |
2016 | 30,658 |
2017 | 47,005 |
2018 | 46,641 |
2019 | 42,312 |
2020 | 41,995 |
Thereafter | 195,977 |
Total | 404,588 |
Source Gas [Member] | Facilities and equipment [Member] | |
2016 | 1,247 |
2017 | 2,216 |
2018 | 2,207 |
2019 | 1,676 |
2020 | 1,359 |
Thereafter | 3,326 |
Total | 12,031 |
Source Gas [Member] | Pipeline capacity obligations [Member] | |
2016 | 29,411 |
2017 | 44,789 |
2018 | 44,434 |
2019 | 40,636 |
2020 | 40,636 |
Thereafter | 192,651 |
Total | $ 392,557 |
Commitments and Contingencies: Build Transfer Agreement (Details) - Peak View Wind Project [Member] - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Jun. 30, 2016 |
|
Long-term Purchase Commitment, Amount | $ 109 | |
Electric Utilities [Member] | Performance Guarantee [Member] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 47 |
Commitments and Contingencies: Commitments and Contingencies - Dividend Restrictions (Details) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Utilities Group [Member] | |
Related Party Transaction [Line Items] | |
Restricted Net Assets for Subsidiaries | $ 257 |
Impairment of Assets: Impairment of Long-lived assets (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
$ / bbl
$ / MMcf
|
Jun. 30, 2015
$ / bbl
$ / MMcf
|
|
Impairment of Oil and Gas Properties | $ 39,993 | $ 121,690 | ||||||
Oil and Gas [Member] | ||||||||
Impairment of Oil and Gas Properties | $ 11,000 | $ 14,000 | $ 94,000 | $ 22,000 | ||||
Average Natural Gas Price Per MCF, NYMEX | $ / MMcf | 2.24 | 3.39 | ||||||
Average Natural Gas Price Per MCF, Wellhead | $ / MMcf | 1.01 | 2.14 | ||||||
Average Crude Oil Price, Per Barrel, NYMEX | $ / bbl | 43.12 | 71.68 | ||||||
Average Crude Oil Price Per Barrel, Wellhead | $ / bbl | 37.19 | 63.76 | ||||||
Oil and Gas [Member] | Assets Not Expected To Be Utilized In Cost Of Service Gas Program [Member] | ||||||||
Impairment of Oil and Gas Properties | $ 14,000 |
Impairment of Assets: Equity Investments In Unconsolidated Subsidiaries (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 5,170 | $ 0 | $ 5,170 |
Willow Creek / Lodge Creek Pipeline And Gathering System [Member] | Oil and Gas [Member] | ||||
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% | ||
Equity Method Investment, Other than Temporary Impairment | $ 5,200 |
Income Taxes: Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.90% | |||||||||||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||||||||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||||
State income tax (net of federal tax effect) | 16.90% | [1] | 2.60% | 3.80% | 2.40% | |||||||||
Percentage depletion in excess of cost | [2] | (5.90%) | 0.80% | (13.50%) | 9.50% | |||||||||
Accounting for uncertain tax positions adjustment | [3] | 1.90% | (0.50%) | (10.40%) | (11.90%) | |||||||||
Effective Income Tax Rate Reconciliation, Noncontrolling Interest Income (Loss), Percent | (25.10%) | [4] | 0.00% | (1.90%) | 0.00% | |||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Percent | 2.30% | 0.00% | ||||||||||||
Effective Income Tax Rate Reconciliation, Flow Through Accounting | (10.60%) | 1.00% | (1.70%) | 9.50% | ||||||||||
Inter-period tax allocation | 1.70% | (6.50%) | (3.50%) | (22.60%) | ||||||||||
Effective Income Tax Rate Reconciliation Allowance For Other Funds Used During Construction, Equity | (5.80%) | 0.30% | ||||||||||||
Other tax differences | 0.50% | 0.00% | (0.60%) | 2.70% | ||||||||||
Effective Tax Rate | 8.60% | 32.70% | 9.50% | 24.60% | ||||||||||
IRS Settlement [Abstract] | ||||||||||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 35.0 | |||||||||||||
Income Tax Examination, Increase (Decrease) In Accrued Interest | $ 5.1 | 5.1 | ||||||||||||
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | $ 8.0 | $ 8.0 | ||||||||||||
|
Accrued Liabilities: Accrued Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
||||
---|---|---|---|---|---|---|---|
Payables and Accruals [Abstract] | |||||||
Accrued employee compensation, benefits and withholdings | $ 45,991 | $ 43,342 | $ 35,126 | ||||
Accrued property taxes | 33,295 | 32,393 | 26,820 | ||||
Accrued payments related to litigation expenses and settlements | 0 | 38,750 | 25,000 | ||||
Customer deposits and prepayments | 44,200 | 53,496 | 26,384 | ||||
Accrued interest and contract adjustment payments | 42,330 | 25,762 | 13,656 | ||||
CIAC current portion | 20,211 | [1] | 14,745 | [1] | 0 | ||
Other (none of which is individually significant) | 32,223 | 23,573 | 33,542 | ||||
Total accrued liabilities | $ 218,250 | $ 232,061 | $ 160,528 | ||||
|
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