Black Hills Corp. Completes 2025 Equity Issuances

Rhea-AI Summary

Black Hills Corp. (NYSE: BKH) has completed its 2025 equity issuance program, raising $219.6 million in net proceeds through the issuance of 3.7 million shares via an at-the-market (ATM) equity offering. The proceeds will fund the company's $1.0 billion capital expenditure program in 2025 and general corporate purposes.

The equity financing will support key growth initiatives, including the Ready Wyoming electric transmission expansion project (scheduled for completion by end-2025) and the Lange II 99 MW dispatchable generation resource in South Dakota (targeted for H2 2026). The company serves 1.35 million natural gas and electric utility customers across eight states.

Positive

• Successfully raised $219.6 million through ATM equity offering
• Funding secured for $1.0 billion capital expenditure program
• On track with Ready Wyoming transmission project completion by end-2025
• Expansion of generation capacity with 99 MW Lange II project

Negative

• 3.7 million new shares issued, resulting in shareholder dilution

Insights

Financial Analyst

Black Hills Corp secures $219.6M through equity issuance to fund $1B capex program for critical energy infrastructure projects.

Black Hills Corp has successfully executed its 2025 financing strategy by completing equity issuances totaling $219.6 million through its ATM program. This financing falls squarely within management's previously communicated guidance range of $215-235 million, demonstrating disciplined execution of their capital plan. The 3.7% dilution (3.7 million shares) should be viewed in context of the substantial $1 billion capital expenditure program it supports.

The capital deployment focuses on strategic growth initiatives with clear regulatory visibility. Key projects include the Ready Wyoming electric transmission expansion, scheduled for completion by year-end 2025, and the Lange II 99 MW dispatchable generation resource in South Dakota, targeted for the second half of 2026. These investments directly address grid reliability and generation capacity needs across their eight-state service territory.

For utility investors, this announcement represents a positive milestone as it eliminates near-term financing uncertainty. The company has proactively secured the equity portion of its capital structure needs, which typically represents 30-40% of utility financing requirements. This reduces future dilution risk and provides visibility into the funding of projects already approved in the regulatory compact.

Black Hills serves 1.35 million utility customers across eight states, giving it geographic regulatory diversification while maintaining focused operations in the energy distribution sector. The company's infrastructure investments align with the broader utility sector trend of modernizing aging infrastructure while accommodating changing energy demands.

RAPID CITY, S.D., Sept. 26, 2025 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) announced that it executed a block equity trade through its at-the-market (“ATM”) equity offering program to satisfy its remaining 2025 equity needs.

For the year, the company received net proceeds of $219.6 million, for a total issuance of 3.7 million shares, which are being used to fund its $1.0 billion capital expenditure program in 2025 and for general corporate purposes. The completion of this transaction fulfilled the company’s previously stated 2025 equity issuance range of $215 million to $235 million.   

"Completing our 2025 equity needs supports the execution of our long-term strategic plan," said Linn Evans, president and CEO of Black Hills Corp. "The financing is being used to fund our capital requirements for growth initiatives, including the Ready Wyoming electric transmission expansion project on track to be placed in-service by year-end 2025, the Lange II 99 MW dispatchable generation resource in South Dakota targeted for completion in the second half of 2026, and other safety and integrity investments to provide safe, reliable, and cost-effective energy for our customers."

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events, including future anticipated equity needs, anticipated capital investments, the timing and results of contemplated projects, and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2024 Annual Report on Form 10-K filed with the SEC, in our Current Report on Form 8-K filed on Sept. 15, 2025, and in other reports that we file with the SEC from time to time. New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations
Sal Diaz
605-399-5079
investorrelations@blackhillscorp.com 

24-Hour Media Relations Line 
888-242-3969

FAQ

How much equity did Black Hills Corp (BKH) raise in 2025?

Black Hills Corp raised $219.6 million in net proceeds through the issuance of 3.7 million shares via its ATM equity offering program.

What will Black Hills Corp use the 2025 equity proceeds for?

The proceeds will fund BKH's $1.0 billion capital expenditure program in 2025, including the Ready Wyoming transmission project and Lange II generation resource, along with general corporate purposes.

When will Black Hills Corp complete the Ready Wyoming transmission project?

The Ready Wyoming electric transmission expansion project is scheduled to be completed by year-end 2025.

How many customers does Black Hills Corp serve?

Black Hills Corp serves 1.35 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.

What is the Lange II project and when will it be completed?

The Lange II is a 99 MW dispatchable generation resource located in South Dakota, targeted for completion in the second half of 2026.