If You Invested in Black Hills (BKH)

Black Hills Corporation (NYSE: BKH) is a U.S.-based regulated utility company that focuses on delivering energy services to customers through its electric and natural gas operations. The company is described in its public communications as a customer-focused, growth-oriented utility with a tradition of improving life with energy and a vision to be the energy partner of choice. According to recent company disclosures, Black Hills serves approximately 1.35 million natural gas and electric utility customers across multiple U.S. states.

Black Hills operates through two primary utility businesses: Electric Utilities and Gas Utilities. These segments provide regulated electric and natural gas service in states in the Midwest and mountain regions of the United States. The company’s customer base includes residential, commercial, industrial and municipal consumers. Company materials indicate that a majority of its revenue is derived from its utility business group, with a significant contribution from its gas utilities.

Service Territory and Customer Base

Black Hills Corporation is based in Rapid City, South Dakota. In its news releases, the company states that it serves natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Within these territories, the company provides regulated utility service to hundreds of thousands of customers, including over 304,000 natural gas customers in Nebraska and over 189,000 natural gas customers in Arkansas, as reflected in recent regulatory filings and rate review announcements.

The company’s electric utilities operate in states such as South Dakota, Wyoming and Colorado. These utilities generate and deliver electricity to customers and manage transmission and distribution infrastructure. The gas utilities operate in multiple states, including Nebraska, Kansas and Arkansas, and focus on the safe and reliable delivery of natural gas through pipeline systems.

Electric Utilities and Infrastructure Projects

Black Hills’ electric utilities business includes ownership and operation of generation, transmission and distribution assets. The company has highlighted several large-scale projects in its public disclosures. One notable initiative is the Ready Wyoming electric transmission expansion project, a 260-mile transmission build-out in Wyoming and South Dakota. The company reports that this project has been completed and energized, interconnecting its electric systems in South Dakota and Wyoming. Black Hills states that Ready Wyoming is expected to support long-term cost stability for customers, enhance system resiliency, improve access to power markets, support local economic growth and facilitate future development of energy resources in Wyoming.

Another significant project is the Lange II gas-fired generation facility in South Dakota. Company updates describe Lange II as a 99-megawatt generation project intended to replace aging generation resources and support updated planning reserve margin requirements. The project is planned to be in service during the second half of 2026, according to the company’s earnings releases.

In Colorado, Black Hills’ electric utility has advanced a Clean Energy Plan that includes new renewable and storage resources. The Colorado Public Utilities Commission approved a portfolio of projects that the company has described as including a utility-owned battery storage project, a solar power purchase agreement and a utility-owned solar project. These initiatives are framed by the company as part of a plan to reduce emissions from its Colorado electric operations relative to a historical baseline.

Gas Utilities and Regulatory Environment

Black Hills’ gas utilities segment provides regulated natural gas distribution service. The company regularly engages with state public service commissions to review and update customer rates, primarily to recover investments in system safety, reliability and integrity, as well as operating costs. For example, Black Hills’ Nebraska natural gas utility received approval from the Nebraska Public Service Commission for new rates to recover system investments and operational costs associated with serving over 304,000 Nebraska customers. The approved settlement also allows for a multi-year System Safety and Integrity Rider to fund accelerated, safety-focused pipeline replacement, as well as mechanisms such as an insurance tracker, a manufactured gas plant tracker and a weather normalization pilot program.

In Arkansas, Black Hills’ natural gas utility has filed a rate review application seeking recovery of capital infrastructure and operational costs required to deliver safe and reliable natural gas service for over 189,000 customers in more than 100 communities. In Kansas, the company’s gas utility received approval of a settlement agreement that provides new annual revenue and renews a safety and integrity rider, along with a new insurance cost tracker and the ability to file an abbreviated case to address additional capital placed in service.

Capital Investment and Financing

Black Hills Corporation’s public disclosures emphasize ongoing capital investment in its utility infrastructure. The company has referenced a multi-year capital plan focused on projects that address customer needs for safety, reliability and system growth. These investments include electric transmission expansion, new generation facilities and natural gas pipeline upgrades.

To support these investments, Black Hills utilizes a mix of debt and equity financing. In 2025, the company completed equity issuances through an at-the-market equity offering program, raising proceeds to fund capital expenditures and general corporate purposes. The company also priced and issued senior unsecured notes due 2031, with proceeds intended to repay existing notes and for other corporate uses. These financing activities are described in the company’s Form 8-K filings and news releases, which outline the terms of the notes and the use of proceeds.

Regulated Utility Earnings and Dividend History

Black Hills reports its financial results primarily through its Electric Utilities and Gas Utilities segments, along with a corporate and other category. Earnings releases describe how segment operating income is influenced by new customer rates, rider recovery mechanisms, operating expenses, financing costs and weather. The company also discusses non-GAAP measures such as adjusted earnings and adjusted earnings per share, which exclude certain items such as merger-related costs.

In its public statements, Black Hills has highlighted a long history of paying and increasing dividends on its common stock. The company’s board of directors has approved regular quarterly dividends, and company communications note a multi-decade track record of annual dividend increases within the electric and natural gas utility industry.

Merger with NorthWestern Energy Group, Inc.

Black Hills Corporation has entered into an Agreement and Plan of Merger with NorthWestern Energy Group, Inc. and a wholly owned merger subsidiary. Under the terms described in the company’s Form 8-K filings, the transaction is structured as an all-stock business combination in which the merger subsidiary will merge with and into NorthWestern, with NorthWestern continuing as a direct wholly owned subsidiary of Black Hills. The combined parent company is expected to assume a new corporate name upon completion of the merger.

The merger agreement contemplates that, after closing, the combined company would remain incorporated under South Dakota law and maintain its corporate headquarters in Rapid City, South Dakota. The board of directors of the combined company is expected to include directors designated by both Black Hills and NorthWestern. Completion of the merger is subject to various conditions, including effectiveness of a registration statement, shareholder approvals, regulatory approvals from federal and state authorities, the absence of certain adverse events, and other customary closing conditions. Company filings emphasize that the pro forma financial information related to the merger is illustrative and not a projection of future results.

Risk Management, Safety and System Resiliency

Black Hills’ disclosures highlight initiatives related to safety and system resiliency. The company has established an Emergency Public Safety Power Shutoff (PSPS) program across its electric utilities to promote customer safety and mitigate wildfire risk. In developing this program, Black Hills reports that it engaged with wildfire experts, customers, community and local agencies, regulators and community leaders.

In addition, the company’s investments in projects such as the Ready Wyoming transmission expansion and the Lange II generation facility are described as supporting system resiliency, access to power markets and the ability to meet updated planning reserve requirements. Gas utilities initiatives, including safety and integrity riders and pipeline replacement programs, are positioned as part of the company’s focus on safe and reliable natural gas service.

Data Center and Load Growth

Black Hills’ public communications reference growing electric demand in its service territories and emerging load from data centers and other customers. The company has reported consecutive years of increasing electric demand in Wyoming, including new all-time peak loads. It has also discussed data center developments, such as a data center site under construction in Wyoming and a data center for a large technology company that is expected to transition from construction power to permanent service. The company associates these developments with opportunities for additional transmission and generation investment.

Regulatory and Public Filings

As a registrant with the U.S. Securities and Exchange Commission, Black Hills Corporation files periodic reports, current reports on Form 8-K and registration statements. These filings provide information on financial results, capital markets transactions, material agreements such as the merger with NorthWestern, and other significant events. The company’s common stock is registered under Section 12(b) of the Securities Exchange Act of 1934 and trades on the New York Stock Exchange under the symbol BKH.

Summary

In summary, Black Hills Corporation is a regulated utility holding company based in Rapid City, South Dakota, operating electric and gas utilities that serve customers in multiple Midwestern and mountain states. Its business is characterized by large-scale capital investment in transmission, generation and natural gas infrastructure; an emphasis on safety, reliability and regulatory engagement; and ongoing corporate developments, including a planned all-stock merger with NorthWestern Energy Group, Inc. Investors and observers can follow the company’s progress through its earnings releases, regulatory filings and project updates, which detail how Black Hills manages its utility operations, capital structure and long-term plans.