Strength and Accountability

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 been consistently profitable.  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, Black Hills Corporation, as well as a $300 million stand-alone credit facility. These additional resources provide enhanced credit and access to capital.  This financial strength helps Enserco Energy fulfill customer commitments and maintain a focus on operational excellence.

Strong Risk Management Practices
Along with financial strength, Enserco Energy addresses the increased demand for accountability with our Executive Risk Committee.  This group of corporate officers is designed to identify, quantify and prioritize the business and financial risks faced by our company and implement strategic management programs designed to preserve a strong financial profile.

Prudent Growth
Enserco Energy has grown substantially throughout its history.  Since 1997, average daily volumes have quintupled to nearly 2 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 1,000 total physical and financial counterparties.

Just as Enserco Energy's oil and gas marketing has grown successfully in the past, the Company continues to prepare for its 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 oil and gas marketing services.

Diversified Parent Company
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.

Black Hills also owns regulated utilities:  Black Hills Power, serving western South Dakota and parts of Wyoming and Montana; Cheyenne Light, Fuel & Power in Wyoming; and Black Hills Energy (including Colorado Electric, Colorado Natural Gas, Kansas Natural Gas, Nebraska Natural Gas and Iowa Natural Gas). Black Hills Corporation has a strong balance sheet and enjoys an investment-grade credit rating.  

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