Financial and Operational Profile

Enserco Energy was formed in 1996 and has been a wholly-owned subsidiary of Black Hills Corporation, a New York Stock Exchange Company (NYSE:BKH) since 1998. Enserco Energy has consistently, year over year, been a profitable company. Ongoing operations and growth of Enserco Energy are supported by internally generated cash flow. Enserco Energy also has the added flexibility and resources of its parent, BKH, as well as a $200 million stand-alone credit facility. These additional resources provide, on an as needed basis, enhances credit and access to capital.

Enserco Energy has grown substantially over its history. Since 1997, average daily volumes have quintupled to over 1.4 million MMBtu per day. Most of Enserco Energy's net sales are with investment grade rated companies, with the remaining portion of sales supported by collateral. Enserco Energy has in excess of 600 total physical and financial counterparties.

Just as Enserco Energy's gas marketing has grown successfully in the past, it continues to prepare for future growth. Development plans include geographical expansion and continued growth in the producer services segment, as well as acquiring mid-stream assets, such as pipelines and/or storage facilities to complement and enhance gas marketing services.

Enserco Energy is part of Black Hills Corporation's non-regulated, wholesale energy operations. Other wholesale operations include coal mining in the Powder River Basin of Wyoming; oil and gas production, which is focused primarily in the Rocky Mountain region; and independent power generation, which provides capacity and energy to utility customers in Wyoming, Colorado, Nevada and California. Black Hills also owns two regulated utilities, Black Hills Power, serving western South Dakota and parts of Wyoming and Montana, and Cheyenne Light, Fuel & Power in Wyoming. Black Hills Corporation has a strong balance sheet comprised of about 50% debt, and enjoys an investment-grade credit rating. Total corporate assets approximate $2 billion, with about two-thirds in wholesale energy and the remainder in retail utility services. More information on the Company can be found on our Internet web site, www.blackhillscorp.com.

If you have any further questions about Enserco, please use the contact page to direct your questions to the appropriate individual.