Q4 2020 Black Hills Corp Earnings Call
Good day, ladies and gentlemen, and welcome to the Black Hills Corp, fourth quarter and full year 2020 earnings Conference call. My name is G. G and I will be your coordinator for today at this time all participants.
So are in a listen only mode.
Following the prepared remarks, there will be a question and answer session. If you would like to participate in this portion of the call. Please press star followed by one out of any time during the conference is the assistance is needed any time during the call. Please press star followed by zero and a coordinator will be happy to assist you. As a reminder, this conference is being recorded for replay.
Purposes.
I would now like to turn the presentation over to Mr. Jerome Nichols director of Investor Relations of Black Hills Corporation. Please proceed sir.
Thank you Gigi good morning, everyone welcome to Black Hills Corporation's fourth quarter and full year 'twenty 'twenty earnings Conference call.
Leading our quarterly earnings discussion today are Linn Evans, President and Chief Executive Officer, and Rich Kinsley, Senior Vice President and Chief Financial Officer.
During our earnings discussion today some of the comments, we make may contain forward looking statements as defined by the Securities and Exchange Commission and there are a number of uncertainties inherent in such comments, although we believe that our expectations and beliefs are based on reasonable assumptions.
Actual results may differ materially.
We direct you to our earnings release.
The two of the Investor presentation on our website.
And our most recent form 10-K and form 10-Q filed with Securities and Exchange Commission for a list of some of the factors that could cause future results to differ materially from our expectations I will now turn the call over to the Linn Evans.
Thank you Jerome good morning, everyone and thank you for joining us today as.
As we look back at 2020, I couldn't be prouder of what our team has accomplished throughout.
Throughout an uncertain and disruptive year I admired how the Black Hills energy team Rose to every challenge head on.
I'm, especially pleased how our team always kept their health and safety and our customers' health and safety at the forefront as we successfully executed on our customer focused utility strategy of.
All while delivering strong financial performance that exceeded our guidance.
I believe most of US will look back on 2020 as of year of seemingly endless challenge and yet as these challenges that prove the character and resilience of an organization and make us stronger.
Like those before us for the past 137 years of Black Hills, we adapted we rallied together and we worked hard truly exemplifying our ready to serve commitment.
And the incredible spirit within our team.
The Black Hills energy team once again delivered a long list of accomplishments for our stakeholders throughout 2020.
Slides four through six highlight the success of consistently delivering of what we said we would do.
What I like to refer to is delivering a high say do ratio.
Safety is our number one priority of Black Hills, each and every day and has this priority and our genuine concern for our fellow coworkers our customers and our communities. The gave US a solid foundation upon which to confront the pandemic and build a stronger future.
For the seventh consecutive year, our safety culture produced an injury incident rate better than the utility average demonstrating progress on our goal to become the safest utility in the industry.
Our team combined with our resilient infrastructure advanced our reputation of delivering industry, leading reliability for our customers.
Of the outages occurred I was impressed throughout the year as my coworkers delivered a remarkable response.
Safety and efficiently restoring service with the ready to serve attitude and dedication.
We produced strong fourth quarter and full year financial results of the economies in our Midwestern States continue to improve we are fortunate to operate in stable and growing territories for most of our communities remained open during the pandemic.
As we said we would we have provided greater clarity into our longer term earnings outlook.
We increased our 'twenty 'twenty one guidance we.
We initiated 'twenty 'twenty two guidance.
And we announced long term earnings and dividend growth targets Rich will cover these targets of more detailed during his comments.
I'm pleased that we successfully and safely executed on our customer focused investment program.
Through solid planning and collaboration with contractors and suppliers our team deployed $755 million in capital projects to further harden and modernize our energy systems.
These investments included our $79 million 52, and a half of megawatt Corriedale wind project, which we constructed in our strong wind resource area of near Cheyenne, Wyoming. The project now serves customers in South Dakota, and Wyoming through our innovative and voluntary customer subscription based renewable ready program.
We also made terrific regulatory progress with the Nebraska, and Wyoming commissions of proving our consolidation applications and our rate reviews on a constructive terms.
Both commissions of proved our applications to consolidate multiple rate structures into a single statewide rate structure.
These approvals will help streamline our regulatory strategies in both states and provide efficiencies as we continuously improve how we serve and how we interact with our customers in those states.
In addition to receiving constructive revenue increases in both states. Both states also approved riders to support our programmatic investment for safety and reliability.
Throughout the pandemic, we maintained our strong financial position and investment grade credit ratings executing upon our debt and equity financing needs on favorable terms during the year.
And our time tested staying power as a result of environmental social and governance matters always being a core focus in 2020, we provided greater transparency into our ESG profile and journey.
We published new qualitative and quantitative reports, we issued an updated corporate sustainability report.
And we announced our goals to reduce greenhouse gas emissions intensity.
For our electric operations, we are on track to achieve of 40% reduction by 2030 and of 70% reduction by 2040 off of 2005 baseline. We are currently developing our integrated resource plans for South Dakota, and Wyoming, which we will complete the summer and the next year for Colorado.
These resource plans will provide detail regarding how we will achieve these goals, including options for our current resources and potential investment opportunities to meet customer demand.
For our natural gas utilities, we expect to cut greenhouse gas emissions intensity by 50% by 2035 again, that's off of the 2005 baseline we have already cut our gas utility emissions by one third since 2005.
Slide seven shows that we plan to invest over $600 million annually. During the next five years for a total of over 3 billion of.
Our base forecast of over $2 $7 billion represented by the Orange bars relates to projects that are fully planned and in progress.
As the incremental projects for more refined for timing cost and other factors, we will add them to our base forecast.
Incremental projects. We are working on include additional electric generation and transmission projects.
Gas pipeline projects.
An additional programmatic investment.
Slides 27 through 32 in the appendix provide additional details related to our capital investment plan.
In addition, our dedicated growth team is aggressively pursuing new growth opportunities. We are powering data centers and technology growth within our service territories and with more people moving into our service territories, we are ready to serve our growing customer demand.
We are adding to our reputation of delivering innovative solutions products and technologies, including the expansion of renewables and cleaner technologies, such as electric vehicles and renewable natural gas.
Across all of our business, we continue to focus on cost discipline, along with our better everyday culture to drive greater efficiency and value through continuous improvement.
Looking forward, we are confident in our future we are well positioned as an integrated pure play utilities, serving of strong and growing region in jurisdictions with constructive regulatory environments I'm excited to work alongside of our highly engaged team executing our proven strategy to continue delivering strong results for all of our.
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Just like all of you we are hopeful for a brighter year ahead, especially for our families and friends who lives we're deeply affected by the virus.
While the pandemic remains a serious issue our business fundamentals remained strong and we are applying what we learned in 2020 to become more efficient more responsive and more technology enabled.
I'll now turn it over to rich for the financial update rich.
Thanks, Lynn and good morning, everyone I'll start on slide 11, where you can see we delivered an eight 8% increase in EPS as adjusted for the fourth quarter.
Five 7% increase for the full year compared to 2019.
2020, adjusted EPS of $3 73, <unk> came in just above the top end of our guidance.
Full year earnings were driven by strong margin growth from returns on our invested capital new customer growth excellent cost management and tax credits. These positive drivers overcame net COVID-19 impacts and higher share count.
Net full year of Covid impacts of <unk> were consistent with our forecast. This includes net load impacts and net expenses associated with the pandemic, which are detailed on slide 35 in the appendix.
Net weather impacts for the fourth quarter and the full year were fairly nominal which we estimate is <unk> <unk> lower than normal in Q4, and five cents lower than Q4 2019 for the full year weather was <unk> <unk> higher than normal.
But <unk> lower in 2019.
Slides 12, and 13 contain waterfall chart illustrating the primary drivers of our earnings results comparing Q4 2019 to queue for 2020 and full year 2019 to 2020 all of the amounts on these charts are net of income taxes.
As you can see both for the quarter and full year show strong growth and margins at our natural gas utilities when compared to 2019.
This was driven by new rates from a constructive regulatory outcomes in Wyoming, and Nebraska and by riders across our service territories customer growth across our service territories also contributed nicely to margin in 2020.
Our electric utilities and nonregulated margins also increased for the full year.
O&M increased by only one half of percent for the full year and thats, including the O&M, we incurred related to Covid.
We are pleased with our team's O&M control in 2020, it really was outstanding.
DD&A increased as a result of our strong capital investment program in 2019, and 2020 interest expense increased due to higher debt balances, resulting from new debt issued to fund our capital investment programs, partially offset by lower short term borrowing rates.
Other income expense was favorable to the prior year, reflecting expensing of project development costs in the prior year.
Which was partially offset by higher current year pension plan costs, driven by lower interest rates.
Our effective tax rate for 2020 was 11, 9% compared to 12, 2% in 2019, driven by higher tax credits.
Additional fourth quarter and full year detail on segment earnings can be found in the appendix and you can also find additional details on year over year changes in gross margin and operating expenses in yesterday's earnings release.
Slide 14 shows our financial position through the lens of capital structure credit ratings and financial flexibility. We are in excellent shape from a debt maturity and liquidity perspective, we continue to maintain solid investment grade credit ratings.
Last February we issued $100 million of equity to help support our 2020 capital investments.
You'll note in our 2021 and 2022 guidance assumptions in the appendix, we expect to issue $100 million to $120 million in 2021, and $60 million to $80 million in 2022, two or at the market equity offering program to support for ongoing capital investment plans.
On the debt side in June we issued $400 million of two 5% 10 year notes to term out our short term debt further enhancing our liquidity position the <unk>.
Debt issuance was a great outcome and provides our customers low cost debt for the next decade.
At year end, we had $234 million outstanding on our credit facility with no material debt maturities until late 2023 as of February we continue to maintain over $500 million of available liquidity.
While debt to total capitalization remained in the 58% to 59% range through 2020, we are targeting a debt to total cap ratio in the mid fifties.
As Linn noted, we are providing greater clarity into our long term earnings outlook as outlined on slide 15.
We see opportunities to continue our strong cost management into 2021, and accordingly increased our 2021 guidance to $3 80 to $4 per share up <unk> <unk> on each end.
While issuing a second year of guidance is not our typical practice. We also provided 2022 guidance of $3 95 to $4 15 per share which incorporates the new Y Gen. One contracts starting January one 2022.
Our newly initiated 2022 guidance targets, an approximate 5% EPS CAGR from 2019 to 2022.
Using 2022 as our base year.
We expect to grow EPS in 2023 through 2025 at a 5% to 7% CAGR.
We are excited about our growth opportunities as we share of this long term EPS growth target.
Moving to our dividend on slide 16 in 2020, we probably marked 50 consecutive years of annual dividend increases one of the longest track records in our industry.
Since 2016, we have increased our dividend at an average annual rate of six 6%.
Looking forward, we anticipate increasing our dividend by more than 5% annually through 2025, while maintaining our 50% to 60% payout target.
Yeah.
In closing we thank you for your interest in Black Hills, we are uniquely positioned as a pure play utility in constructive jurisdictions with the complementary business mix across stable and growing territories.
These factors paired with the strong and sustainable growth outlook provided an attractive investment opportunity.
And with that we are available to take your questions.
As a reminder to ask a question you wanted the press star one on your telephone withdraw your question press the pound key please.
Please standby, while we compile the Q&A roster.
Our first question comes from the line of Michael Weinstein from Credit Suisse. Your line is now open.
Hi, guys.
Good morning, Mike.
Okay.
Hey could you.
Just talk a little bit about the of the equity requirements for the capital plan at this point I mean, it's understood I think of it looks a little higher than original.
Expectations for.
This year, but a little bit lower next year and but.
There was higher capital. So you would expect some changes there I'm just wondering if you could maybe comment on.
On how the financing will go forward with the six $600 million plus annual capital program.
This is rich Mike.
Yeah, you hit it head on for the first two years, we did increased capital from what we previously disclosed for 2020, we actually came in higher for last year.
And what we disclosed at the end of the third quarter, mainly weather was pretty favorable. So we were able to spend some extra capital in the fourth quarter and then increase this year is a bit too. So between those that that's what explains the the slight uptick in this year's equity.
Issuance plan and then next year as the New guide.
Guidance for next year.
Should be generally in line with what we've talked about before given the incremental capital.
When you think about after 2022.
We're a couple of years away from that so we'll see.
If I had the guests today based on our $600 million annual Capex in 2023 through 2025, I would say, we probably need to issue $30 million to $40 million of equity each year.
And then if there is incremental capital above the 600 million you can continue to think about the 25% to 30 on the dollar that we've talked about for for each capital dollar.
But you know, we'll see how how we manage delevering the balance sheet over the next couple of years. It's possible, we may not need equity in those years of for in that $600 million range well, we'll see I guess, what I'd also add this is Linda had the.
We're very focused on O&M management and of course, making sure that our capital that we do spin as quality capital getting good returns on that so we have some time to manage the the 2022.
And when you guys are thinking about the incremental projects to the base capital plan are we still talking about the same thing roughly one or two products year to be announced sometime during the year and that $50 million to $100 million ranch each each one Mike sorry, net after Mike This is Lynn yes.
That's how we see it the same kind of projects we have been doing in the past the things that we're good at in our sweet spot, we have opportunities with the gas transmission distribution of our programmatic spending we have opportunities we think on transmission and as we worked through the IR Pes in South Dakota, and Wyoming in the ERP in Colorado.
We worked through those of the next year year and a half roughly the we'll file our South Dakota, and Wyoming will complete our South Dakota, and Wyoming Erp's next this summer and then next year, we'll be working on the Colorado, we think that might generate some opportunities for us of course, we're watching the goals that come out of Washington D. C with the executive orders et cetera, and how aggressive those are in.
We think there could be some good opportunity for us as well.
Alright.
And could you comment a little bit about the about.
Rate case activity going forward.
The Nebraska case settlement approved.
You know what.
Maybe you can comment all of the about the process in Colorado at this point sure I guess I'll start with your first part of your question, we're kind of what's our schedule, we've reached out and worked with our Iowa regulators in our Kansas regulators. They both anticipate that we will file the case around mid year. This year in those two states title of gas in Kansas gas.
<unk> talked about Arkansas gas in previous calls so I think I'll address that too we continue at the analyze that we're seeing good growth good customer usage. So we're watching when we think we might need to file an Arkansas.
I'm watching that closely interest in a formulaic rates, they're watching held us tell other companies are treated in Arkansas with respect of that as we make those decisions.
And then finally, the dressing Colorado gas we were of course disappointed that the Colorado Commission did recently.
Early in the year dismissed our rate review that we had filed there.
Have requested triple are an opportunity for rehearing re argument and reconsideration and the.
The commission should decide on debt.
By the end of this month.
Once we know their path there of how they decide that should they deny or continue to dismiss our case I guess, we have two avenues in front of us at that 0.1 Avenue is to appeal that case two of district quarter to of course to state Court in Colorado. The other would be to re file the case, we've been working very constructively with the.
Staff and the office of consumer counsel in that case, we're highly disappointed that it was dismissed.
Think of it was legal grounds for the dismissal sort of asked the commission to reconsider that and then I'll just laid out the revenues after that but we are hopeful the best case scenario as they re reinstate the case and we get into moving forward, but otherwise we will certainly think about whether we need to appeal or whether or not we should file of new case.
Also the I think of Cir.
Sorry, the rest of it might put the Ssi had never heard of US we have of system safety and integrity rider.
For the commission that is still in place. So that's good news for US there, we hope to of that decision by mid year there.
Alright.
I mean I think in the past you've described Colorado is an improving regulatory situation, especially after the Pueblo boat.
Is this a setback in that in that overall process of trying to improve the relationships with the governor of.
The legislators and the and the commission itself.
Do you think it's a major setback or of minor one.
We plan for it to be minor we hope this minor we take the relationships extremely seriously we have a relatively new commission. We have one commissioner it's been there a couple of years. The other two of road brand of essentially new.
We are working very hard around the we have the as we've announced in the past realigned our leadership around Colorado are working very hard on those relationships and we think we are seeing progress.
To the.
The the denial of the dismissal of the case was done before one Commissioner left the commission and they have been replaced so we think that's another opportunity for us to continue to foster that relationship and continue to really focus on the carefully. So we have strategies. We are executing we put leadership around it and we continue to do that and were in college.
Out of for the long term. So that's what we're focused on there is a long term good relationship.
Great.
The pass it onto the next person that thank you. Thank you Mike.
Thank you. Our next question comes from the line of Julien Dumoulin Smith of Bank of America. Your line is now open.
Hey, good morning team congratulations on all of the updates here.
Morning.
Absolutely.
Perhaps if I can just try to clarify the long term outlook of 5% to seven here.
I know you you do the flea called out that it's off the 22 baseline how do you think about the two seven versus the $3 billion in capex and where each of those numbers respectively.
Within that trajectory I, just wanted to understand what that $2 seven basis is that of midpoint or how do you think about it.
I'll take the first swing at debt and Lynn can fill in the blanks Julien.
Lynn said in his comments, we fully expect to spend at least $600 million of year. So you should think of $3 billion, even though our.
Materials detail, the $2 7 million billion dollar base.
You know you should think more in terms of $3 billion and for the incremental amount.
In terms of what's Ryder and what's growth.
Net incremental spend you can kind of.
Put it in the same.
The ratios that we have for $2 $7 billion base in terms of the details that are in the appendix.
But we fully expect to spend at least $3 billion over the next five years. So that's really our plan I think rich said the nicely in our growth plan is just based on capital spend we have other levers that we're working hard on we have.
We have we.
We have growth is less capital intensive such as serving the data centers that we sort of the technology loads that we are seeing growing within our service territories and <unk>.
Things of that nature Julian we also have the lever of O&M savings, we're focused on that until we continue to reduce our cost to serve.
So that's something that with the focused on the help us continue to reach that 5% to 7% target that we put out there I think one one other thing to add to that is the trend that we've seen since COVID-19 started we had good population growth and many of our service territories, even prior to Covid, but.
But we have seen an uptick during 2020 and into 2021 debt does not appear to be slowing down. So as we look forward. We think we're going to have.
Some nice opportunity there for real strong growth and much of our service territory with the urban flight if you want to call it debt that we're seeing.
Seeing in dark territories.
Right, but just to clarify this guidance I apologize and there may not be a direct answer here. The three doing dollars rate again, you say you fully expect that does that reconcile with the midpoint of that 5% to seven at the outset.
And maybe you don't want to be that specific because you're saying that there's a few other sales really impacted that.
Intermediate.
Relationship, but I just wanted to share.
That is exactly the way to characterize it Julien.
Just not completely tied to the 5% to 7% is not entirely tied to capital. There is a lot of other things we have going on that are going to help us get there certainly the capitals of the primary driver but.
Plenty of other factors of play.
Got it alright, excellent and then if I can.
The programming on the incremental capital conversation here beyond the $3 billion can you give us the deal from two seven to three now I'm asking beyond how do you think about.
The that that iteration in your planning and how tied is that to some of the ERP planning that you guys talked about just now on the call as well as some of these prior.
<unk> emission targets you guys the lead needed late last year.
Well, certainly the ERP for South Dakota, and Wyoming, and the ERP for Colorado.
Could provide some some nice incremental opportunity when youre thinking even beyond this five year plan Julien and some of that could fall within this five year plan, but if you think even longer term there could be some tremendous opportunity there.
There are lumpy projects, we're looking at in both the electric and gas utilities that I think could thrust is well above that $3 billion.
As Lynn mentioned also our programmatic spend we continue to look at and refine that that will just be an ongoing process. So I would expect uptick.
And that programmatic spend primarily at the gas utilities, but certainly within the electric utilities too.
There are a number of avenues, where we can get north of the 3 billion over these five years and then when you think longer term there are some some really strong opportunities.
Got it alright, excellent, but maybe the point of the RFP updates don't necessarily relate to the current five year outlook that really use backfill opportunities beyond.
The timeframe, we're talking about for the most part of that is correct Julien yes.
Excellent alright, Thank you guys I'll leave it there.
Thank you. Our next question comes from the line of Andrew Weisel for Scotia Bank. Your line is now open.
Thank you good morning, everyone.
Yes.
Good morning, My first question.
My first question is on rate base growth.
Historically grown of that eight 5% for the last five years.
What's the outlook as far as you know when you've given the capex and depreciation, but how does that factor into our rate base growth outlook, and then relative to the 5% to 7% EPS growth outlook the Dell.
<unk> going to be related to equity needs or other factors that I heard you talk about population migration and account growth maybe other things like earned ROE or cost cuts.
That means whatever made explain the delta if you could help detail that please.
I guess, Andrew this is rich we didn't we did not give of rate base growth target, we just jumped right through that straight to the EPS growth target.
I think you can project our depreciation in use at $3 billion type curve and come up with what our rate base growth rate looks like.
Certainly it's.
As you get out to the back end of that curve on the five years and beyond.
I think youre going to see additional capex opportunities that will help that rate base growth remains strong.
But it's really of the combination of rate base growth as just described to Julians question plus these other opportunities that are going to get us there.
Okay fair enough.
Next question on the dividend growth you've got the 5% plus my question is is that plus a function of the pace of EPS growth or does it also depend on factors like the balance sheet and cash flow and share count.
All of the above the.
Okay, maybe I'll ask it this way it's.
Generally.
It's kind of generally be in line or slightly less I would say than what our earnings growth are but where the.
The 5% to 7% EPS long term growth target, we would expect that dividend to grow at least of 5%.
Okay then.
The Big Picture question I know you were asked this quite a lot, but can you share your latest thinking on the long term risk to owning gas utilities. Obviously, we are seeing increased pushback, even from what previously was high level, but environmental as politicians and even investors are now asking more questions about that so how do you think about the long term outlook for lease season.
General and you're specifically.
We feel pretty confident about our ldc's Andy.
Andrew We are territories are primarily very cold climates, right now, where we're sitting is well below zero, we're having quite the coal.
Spell right now across our territories.
A good example, where as.
As I've heard you say in the past yourself, the lethal without natural gas and some of the places that we currently serve or it's Pete pumps and things of that nature of it is simply aren't efficient enough to keep up so we've not had any bands within our service territories. We are certainly aware of conversations going on we have of highly engaged team executing a.
<unk> with our outreach programs within those communities within our legislators.
We're also partnering with the <unk>.
The industry associations like the <unk> and we're very much partnered as utilities across our service territory working together to ensure that our communities, especially community leaders and thought leaders understand the real value and the necessity of the frankly, the necessity of natural gas and what it brings to the table and of course, what we as Black Hills energy do.
Within those communities as well so we're highly engaged executing that strategy and are watching it very closely but the wear.
We're very strong with the with the.
The future of <unk> within our portfolio.
Sounds good thank you stay warm out there and.
I appreciate the additional financial disclosures.
Andrew Thanks, Andrew.
Thank you as a reminder to ask a question you wanted to press star one on your telephone for West.
All of your question press the pound key.
Our next question comes from the line of Brandon Lee from Mizuho. Your line is now open.
Hey, good morning.
Hope you're staying warm out there.
Just working hard at it a bit of quest.
[laughter].
Just a quick question.
So what's your current level of structural under earnings and how much of that GAAP can you offset.
Well the way I would answer that is certainly you kind of half the look jurisdiction by jurisdiction Brandon.
If we are if we are under earning that's where we're going in for a rate review Linden kind of gave some details in his.
Answered just a moment ago about what states were looking at our other states.
We're earning solid returns or taking actions from a cost perspective, or how we deploy capital to make sure that we are earning an appropriate return.
The kind of the short version of that I think.
Okay.
I guess another question is what do you expect in your various customer classes residential.
Commercial and industrial.
In 'twenty, one versus 2020, I guess, just because I think a lot of your service territories kind of stayed open throughout the year.
The post the maybe the coastal sort.
Service charges for if you look at Brandon If you look at slide 35 in the deck.
And that details our COVID-19 impacts youre going to see that our load impacts really were not substantial at all in total of about 1 million of $5.
Due to the fact like you said, we've generally stayed open in our territories. The bigger impacts were sequestration costs that we are no longer incurring waived late fees for the most part we're no longer incurring.
And then we accrued an extra $3 3 million of bad debt last year.
For Covid related items, and that's generally done to all of our states.
Allowed us to begin the disc.
Disconnect process.
Two months back.
With the exception of Arkansas, that's the only state that continues into May.
But we've managed that quite well I think of lot of our customers have gone on too.
Payment plans.
We've seen our Arrearage has come down almost to normal levels.
By the end of January end of December and into January. So we worked our way through that but back to your original question load impacts in 2021 compared to 2020, we just didn't have material load impacts from Covid in 2020, So you know.
Obviously, we should pick a little backup we believe but its not a huge mover that we're about halfway brand and through our heating season of first heating season experiencing the pandemic.
And I'd say, if we look at our gas loads and the impact has been what we call immaterial. So it looks pretty good actually.
Great. That's very helpful. Thank you for your time.
Thank you.
Thank you.
At this time I'm showing no further questions I would like to turn the call back over to Linn Evans for closing remarks.
Well, thank you Gigi and thank you everyone for joining us today I'm really excited about our future. We are in a great position strategically we're in a great position financially I'm very confident of our team's execution of our team is very focused and of great job, especially through the pandemic our ability to deliver the long term earnings outlook in our ESG goals looks very bright.
And we're excited about the opportunities we have across our growing service territory as we see more customers move into our territories and as we seek results for you of the shareholder and for all of our stakeholders. So thank you very much for your interest in Black Hills, a day have a safe healthy and enjoyable day take care.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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Okay.
Yes.
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