ABOUT BLACK HILLS EXPLORATION AND PRODUCTION, INC.Black Hills Exploration and Production, Inc., a subsidiary of Black Hills Corp., operates oil and natural gas producing properties in Colorado, New Mexico and Wyoming, and has non-operated interests in properties producing in California, Montana, North Dakota, Oklahoma, Texas and Wyoming.ABOUT BLACK HILLS CORP.Black Hills Corp. (NYSE: BKH), a diversified energy company with a tradition of exemplary service and a vision to be the energy partner of choice, is based in Rapid City, S.D., and has corporate offices in Denver and Papillion, Neb. The company serves 765,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company’s non-regulated businesses generate wholesale electricity and produce natural gas, oil and coal. Black Hills’ 2,000 employees partner to produce results that are improving life with energy. More information is available at www.blackhillscorp.com.
- Our ability to close the transaction to sell our interests in the assets owned jointly with Helis for net cash proceeds of approximately $230 to $240 million, subject to pre-closing and post-closing purchase price adjustments. These adjustments will include operating income and capital spending associated with the divested assets between the effective date and closing;
- Completion of the sale of Helis’s interest in the properties to QEP, a condition to close the transaction for the sale of our interests in the assets to QEP;
- The tax and accounting treatment for the transaction including the amount of gain on sale related to the transaction and future depletion rates;
- Our ability to use the cash proceeds to reduce debt and internally fund growth projects, and delay any new equity financing for several years;
- The value of our remaining oil and gas assets;
- Our ability to identify and develop quality oil and gas assets and prove up the value of the Mancos shale gas potential;
- The accuracy of our assumptions on which our earnings guidance is based; and
- Other factors discussed from time to time in our filings with the SEC.