Emery

Rapid City, SD-based Black Hills Corp. is looking for a partner in its stalled multi-state utility natural gas reserves program, according to CEO David Emery, who raised concerns about future investments in Colorado during an earnings conference call with analysts Thursday.

Rapid City, SD-based Black Hills Corp. has suspended its push in six states to create utility cost-of-service natural gas reserve programs and is rethinking its approach, CEO David Emery said during a 2Q2016 earnings conference call on Thursday.

With the close of its $1.89 billion acquisition of SourceGas Holding LLC and its utilities in multiple states earlier this year (see Daily GPI,July 13, 2015), Rapid City, SD-based Black Hills Corp. is a “pure-play utility” and all of its non-utility units, including its oil/natural gas exploration/production business, will transform to be supportive of the utilities, according to CEO David Emery.

With the close of its $1.89 billion acquisition of SourceGas Holding LLC and its utilities in multiple states earlier this year (see Daily GPI,July 13, 2015), Rapid City, SD-based Black Hills Corp. is a “pure-play utility” and all of its non-utility units, including its oil/natural gas exploration/production business, will transform to be supportive of the utilities, according to CEO David Emery.

Even though onshore production is rising, low crude oil and natural gas prices stung Rapid City, SD-based Black Hills Corp. during the second quarter, and it now plans to reduce capital expenditures (capex) in 2016 and 2017.

Rapid City, SD-based Black Hills Corp. is developing a program for some of its utilities in seven states to initiate ratepayer purchases of natural gas reserves from its exploration and production (E&P) segment.

Rapid City, SD-based Black Hills Corp. CEO David Emery on Tuesday said the Mancos Shale drilling program in the Piceance and San Juan basins is behind schedule, but the company plans to make up ground next year with 12 wells in production. Three wells should ramp up by the end of this year, he said.

Rapid City, SD-based Black Hills Corp. is staying “very focused” on its oil/natural gas assets, despite reporting more red ink in that sector.

Over-the-counter (OTC) energy derivatives trading was spared the recent round of cost-cutting among capital-starved financial institutions because it “was generating significant revenues and represented a rare opportunity for continued profits and growth,” according to a study by consultancy Greenwich Associates.