BKH

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 11:00 a.m. ET Director, Investor Relations - Salvador Diaz President and Chief Executive Officer - Linden R. Evans Senior Vice President and Chief Financial Officer - Kimberly F. Noly Senior Vice President and Chief Utility Officer - Marne Jis Operator: Good day, and thank you for standing by. Welcome to the Q2 26 Black Hills Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question-and-answer session. To ask a question, please press 11 on your teleph1 and wait for your name to be announced. To withdraw your question, please press 11 again. I would now like to hand the conference over to your speaker today, Salvador Diaz. Director, Investor Relations. Salvador Diaz: Thank you, operator. Good morning, and welcome to Black Hills Corporation's Second Quarter 26 Earnings Conference Call. You can find our earnings release and materials for our call this morning on our website at blackhillscorp.com. Leading our earnings call are Linden R. Evans, President and Chief Executive Officer; Kimberly F. Noly, Senior Vice President and Chief Financial Officer; and Marne Jis, Senior Vice President and Chief Utility Officer. During today's earnings discussion, comments we make may contain forward-looking statements as defined by the Securities and Exchange Commission. And there are a number of uncertainties inherent in such comments. Although we believe that our expectations are based on reasonable assumptions, actual results may differ materially. We direct you to our earnings release, Slide 2 of the investor presentation on our website, our most recent Form 10-Ks and Form 10-Q filed with the Securities and Exchange Commission for a list of some of the factors that could cause future results to differ materially from our expectations. With that, I will now turn the call over to Linden R. Evans. Linden R. Evans: Thank you, Salvador. Good morning, and thank you all for joining us today. I will provide a summary of our strategic progress through the first half of the year, including an overview of our large load demand pipeline, and our pending merger with Northwestern Energy. Kimberly will provide our financial update, and Marne will provide our business update, including our continued progress on large scale opportunities and our ongoing strategic regulatory activities. I am extremely proud of what our team has already accomplished in the first half of the year. I am excited about the opportunities ahead as we deliver results for our stakeholders. Our key achievements for the second quarter are listed on slide 3, and I will provide remarks on a few of them. Focused on delivering on our financial commitments, and I am pleased to report that we continue to be on track to achieve our earnings guidance for the year. We maintained our solid financial position and credit ratings while executing on our nearly $1 billion capital plan for the year to serve the energy needs of our customers. This includes our 99 megawatt Lange II generation project, which is on schedule to be placed in service later this year in South Dakota. Our team continues to execute on our regulatory agenda. We are advancing on our rate reviews for Arkansas Gas, and South Dakota Electric and we filed a new rate request for Colorado Electric. South Dakota and Wyoming, completed the regulatory requirements for new wildfire liability protections as we continue to execute on our wildfire mitigation plan to help ensure the safety of our customers, and communities. We are pleased to serve growing customer demand through our unique and innovative solutions. This is evident in our Wyoming electric growth. Where we have recorded and reliably served 20 consecutive years of increasing peak system loads, a remarkable 183% increase since we acquired the utility in 2005. Our peak of 439 megawatts in July reflects an increase of 16% over last year's peak. Large load demand is a key driver of this growth. Having served Microsoft for more than a decade, Our interoperable blockchain demand also provides additional opportunities for margins as we serve those customers through efficient access to market energy. Looking to the future, we are excited about serving significant large-load demand. Led by hyperscale data centers. This large load pipeline is outlined on Slide 4. Of more than 3 gigawatts of data center opportunities, only 600 megawatts is included in our current plan, driven by both Microsoft's ongoing expansion and Meta's new AI data center which is slated to begin ramping later this year. In addition, we are currently actively negotiating to service a pipeline of more than 2.5 gigawatts. All of which would be additive to our current plan. As a reminder, we take a cautious approach to what we include in our growth pipeline, restricting it solely to demand subject to nondisclosure agreements and ongoing and active negotiation. This additional growth pipeline includes a 1.8-gigawatt data center project. We are continuing to successfully move through advanced stages of negotiations to finalize multiple definitive agreements. We also see potential for further upside to our 3-gigawatt pipeline from both existing and new customers. This potential upside includes Microsoft's recently announced of more than 3 thousand acres in Cheyenne for future expansion among other exploratory customer projects that are in early stages of development. Marne will provide more detail about our large load progress in her business update. Moving to Slide 5 for an update on our merger with our friends at Northwestern Energy. During the second quarter, we received approval from FERC, and unanimous approvals of settlements in Nebraska, and South Dakota. We are awaiting a decision in Montana as the last approval required for a successful closing. I note that we reached a settlement with many key interveners in Montana, and completed a hearing before the Montana Commission in May. Final briefs were submitted on July 13, which started a 90-day approval time frame with a potential 30 day extension by the commission. This puts us right on track with our initial expectations to close the transaction during the second half of this year. As I wrap up my prepared remarks, I am very pleased with our team's delivery on our strategic objectives. Because of the diligent work of our team, we are truly living out our vision to be the energy partner of choice in our mission of improving life with energy for a 1.4 million electric and natural gas customers across 8 states. We are also well positioned in this next phase of growth as we advance our planned merger with Northwestern Energy. With that, I will turn the call over to Kimberly for a financial update. Kimberly F. No1y: Thank you, Linn, and good morning, everyone. I am pleased to report strong second quarter earnings, the result of our team's continued focus on execution of our strategic initiatives as we deliver on our financial commitments. On Slide 7, we provide a bridge for EPS from Q2 2025 to Q2 2026. We delivered GAAP EPS of $0.50 which included $0.04 of merger related transaction costs. Adjusting for these costs, we reported $0.54 of adjusted EPS for the quarter compared to $0.38 in Q2 2025. We delivered $0.21 per share of new rates in rider recovery, which more than offset a combined $0.12 of higher financing and depreciation costs. Weather was $0.01 favorable over Q2 2025 despite being $0.03 unfavorable compared to normal. We held O&M flat for the quarter after excluding $0.04 of merger cost. Expense management efforts by our team reduced employee costs by $0.04 per share compared to the same period last year. Financing costs were $0.06 higher including $0.03 of impact from new shares issued and $0.03 of interest expense, including AFUDC. Depreciation expenses increased by $0.06 as a result of new assets placed in service including our $350 million Ready Wyoming transmission project placed in service at the end of 2025. Slide 8 provides the year to date bridge which tells a similar story of new margins offsetting weather and higher financing and depreciation costs. GAAP EPS was $2.23 for the first half of 2026, which included $0.10 of merger related transaction costs. Adjusting for these costs, we reported $2.33 of adjusted EPS compared to $2.24 during the first half of 2025. We delivered $0.45 per share of new rates and rider recovery, and $0.11 of lower O&M adjusted for merger costs. These positive drivers of $0.56 more than offset $0.29 of combined higher financing and depreciation costs and $0.18 of weather impact compared to last year. As a result, we are on track to achieve our earnings guidance for the year. Further details on year over year changes can be found in our earnings release and our 10 Q to be filed with the SEC later today. Slide 9 presents our solid financial position through the lens of credit quality, capital structure, and liquidity. We remain focused on maintaining a healthy balance sheet and our stated credit metric targets of 14% to 15% FFO to debt which is 100 basis points above our downgrade threshold of 13%. And at a better than 55% net debt to total capitalization. Year to date, we have issued $50 million of equity under our ATM program to support our capital investment plans. Our next debt maturity is in January 2027. With $400 million of 3.15% notes to be refinanced. We are evaluating refinancing options for later this year. We maintain strong liquidity with more than $650 million of availability under our revolving credit facility at quarter end. Our financial outlook is listed on Slide 10. We reaffirmed our guidance range of $4.25 to $4.45 of adjusted EPS which represents 6% growth at the midpoint over 2025. New rates and rider recovery from capital projects large load demand growth, and our solid financial position drive confidence in our ability to deliver in the upper half of our 4% to 6% long-term growth target. Slide 11 illustrates our industry leading dividend track record. In January, we increased our dividend extending our track record of increases to 56 consecutive years in 2026. Based on our current annualized dividend. We continue to target a 55% to 65% payout ratio. A dependable and increasing dividend is an important component of our strategy to deliver long-term value for our shareholders. I will now turn the call over to Marne for a business update. Marne J1s: Thank you, Kimberly, and good morning, everyone. I will provide an update on our current capital projects discuss progress on our data center demand pipeline, and finish with the regulatory update. Moving to Slide 13. Our 99 megawatt Lange II generation construction project which will serve our customers in Western South Dakota and Northeastern Wyoming, continues on schedule and will be placed in service in the fourth quarter. Last week, the final long-lead piece of equipment, the generation step up transformer, was safely delivered to the site. Recovery of the Wyoming portion of the project was included in our Wyoming rate review request. Filed earlier this year. And for the South Dakota portion, we recently filed for recovery to the generation rider. Slide 14 provides an update on our data center pipeline, which exceeds 3 gigawatts of potential load. Of that total, approximately 600 megawatts is included in our financial plan through 2030. Primarily driven by Microsoft and Meta. We have successfully served Microsoft's hyperscale data center growth for more than a decade, primarily through market energy procurement. Meta's AI data center in Cheyenne continues to progress as expected, we anticipate customer load beginning to ramp later this year. We are well positi1d to serve these customers through a combination of market energy, and contracted resources requiring minimal incremental capital As demand grows beyond the 600 megawatts currently included in our plan, we would expect additional generation in transmission investments to support future load growth. Beyond the load included in our financial plan, we continue to make positive progress with high quality counterparties to enable plans for more than 2.5 gigawatts of additional large load opportunities in Wyoming. 1 of the most significant opportunities in our pipeline is the 1.8-gigawatt project we have discussed previously. We are in advanced negotiations for a series of commercial agreements that would support a diversified portfolio of resources to reliably serve this customer's needs. As noted last quarter, we executed a generation reservation agreement with a prospective customer for company owned generation. The agreement includes customer-funded milestone payments supporting the procurement of long-lead generation equipment that would ultimately serve as part of the broader resource portfolio for the project. The agreement has been extended through August 31, and provides for up to $377 million of refundable customer advances. The reservation agreement is intended to transition to a long-term generation facilities agreement under which company owned generation would be 1 component of the overall resource portfolio serving the project. While this represents only 1 of several agreements necessary to finalize the service model, we continue to make encouraging progress across all work streams and remain optimistic about reaching definitive agreements during the third quarter. As we have discussed previously, projects of this scale and complexity require coordination among multiple parties and interconnected contractual agreements. Throughout this process, we remain focused on a consistent set of principles. Maintaining system reliability and resiliency, appropriately managing operational and financial risk, and ensuring existing retail customers are protected as we pursue large load growth opportunities. Consistent with those principles last month in Wyoming, we requested a large customer transmission cost adjustment mechanism, or LCT-CAM. The tariff is designed to directly recover transmission related investments and expenses from the large load customers benefiting from those facilities. We expect the LCT-CAM to become effective in January 2027. Together, the commercial agreements we are negotiating and the regulatory mechanisms we are pursuing are designed to ensure that large load customers bear the costs associated with serving their load and do not adversely impact existing retail customers. This approach aligns with governor Gordon's executive order titled Data Centers The Wyoming Way. Which aligns with our long standing commitment to create long-term value for customers communities, and shareholders. Moving to a regulatory update on Slide 15. We continue to effectively execute on our regulatory plan, with a cadence of 3 to 4 rate reviews per year across our 8-state service territory. In June, we received approval for our abbreviated rate review in Kansas, with new rates effective July 1. Our Arkansas gas rate review is currently in the final stages of rebuttal testimony and a hearing is set for August 20. We also continue to advance the rate reviews for South Dakota Electric with interim rates effective August 18 in South Dakota. During the second quarter, we filed a new rate review request for Colorado Electric. We requested $26.7 million of new annual revenue based on a 10.5% ROE and a capital structure of 49% debt and 51% equity. Slide 16 outlines our integrated resource plan in Wyoming. Which we submitted on June 30. The plan is focused on serving the capacity needs of our non LPCS using a 20 year planning horizon. Our plan outlines a near term capacity need of 95 megawatts which we recommend serving through a mix of natural gas generation, battery storage, and market energy purchases. it is been a busy and rewarding quarter. Before I conclude my remarks, and turn the call back to Lynn, I want to recognize our team for their relentless commitment to safely and reliably serving our 1.4 million customers each and every day. Their dedication is the foundation of everything we accomplish. It is their focus expertise, and commitment to excellence that enables us to continue delivering for our customers while advancing the strategic priorities that support long-term value for our stakeholders. Core team, thank you for everything you do, to make that possible. With that, I will now turn the call back to Lynn. Linden R. Evans: Thank you, Marne. As I believe you can tell, we made strong progress through the first half of 2026 on our customer-focused strategy, We delivered solid earnings, continue to advance our regulatory plan and growth initiatives, including our large load customer opportunities, Black Hills offers a compelling long-term value proposition driven by our customer-focused growth, competitive yield, and significant upside opportunities. Additionally, we have received 6 of 7 approvals required to complete our planned merger with Northwestern Energy. We look forward to delivering an even brighter energy future to all our stakeholders with the advantages and opportunities as a larger electric and natural gas utility company. Thank you for your interest and your trust in the Black Hills team, as we partner to grow long-term value for our customers and stakeholders. This concludes our prepared remarks, and we are happy to take your questions. Operator: Thank you. Press 11 on your teleph1 and wait for your name to be announced. To withdraw your question, please press 11 again. 1 moment for questions. And our first question comes from Andrew Weisel with Scotiabank. You may proceed. Linden R. Evans: Good morning, Andrew. Andrew Weisel: I want to first ask about the big 1.8-gigawatt data center opportunity. there is actually a big change in June and some confusion about how that all went down. I know you will continue to refer to it as their project and not your project, but a few questions. So first, does Crusoe exiting have any implications for the status of your negotiations? Second, any impact on the customer that made those cash deposits? I guess you mentioned that it was extended and maybe a little bit more came. But if you talk about those conversations And then third, do you see Crusoe exiting as slowing down the process, accelerating it, or not having much impact overall from your perspective? Linden R. Evans: Thank you. Good morning, Andrew. This is Lynn. Thank you for those questions. We appreciate them. I would say at the highest level, the exit of Crusoe has not had any impact on the negotiations. In fact, it is been important to us, from essentially day 1 to ensure that we are negotiating with a hyperscale end user. that is who we have negotiated. Negotiated with and are negotiating with today. And those negotiations, as we have indicated in our prepared remarks, are going well. They are on track. They are complicated agreements, multiple agreements that we are putting together with multiple parties. And so this quarter, again, we are saying we want to do it right, not just fast. We are looking at finishing these agreements by the end of the quarter. We are on track to do that. If we do not do it by the end of the quarter, ask the shareholders certainly not panic in any way. That just simply means that we are continuing to get the right agreements in place in the right way, with the right risk and the right rewards for each entity, including ourselves, our customers, and our shareholders. So we have seen no delay because of the Crusoe exits in summary. Andrew Weisel: Okay. Great. that is very helpful and very clear. So you mentioned that, hopefully by the end of this quarter. You also in the slides talk about 75-megawatt data center opportunity that you expect in the third quarter. Is that is unrelated? Is that a different customer? And could that lead to a broader deal, or should we think of that as sort of a 1-time opportunity? Linden R. Evans: Thank you, Andrew. That 75 megawatts is a different customer from the 1.8-gigawatt project we have been talking about. it is part of our 2.5-gigawatt pipeline that we have been referring to. And so that particular project is advancing nicely, so we thought we would bring it forward this quarter. Andrew Weisel: Okay. Very good. And lastly, on Montana, congrats on the partial settlement. Marne, if you could just elaborate a little bit there, you could give a little more detail on the status and timing there, how that settlement might bode well for getting to an overall approval, and your thoughts on timing overall. I know you are talking about year end, if you could maybe get a little more specific there, that would be great. Thank you. Linden R. Evans: Thank you, Andrew. This is Lynn. Again, you are correct. We received we were able to achieve settlements with multiple parties or my recollection is about 5 different parties that we were able to settle with, including the consumer account, things of that nature. The only 2 entities that we did not settle with had a real strong environmental perspective for primarily focusing on data centers and things of that nature. We did not achieve settlements with them. But I think the good news about the settlements that we did receive, it gives a nice map, if you will, in terms of how the commission could go about considering the arguments and the issues with respect to the, the merger and find a path forward to approve it. As to the timing, we had the hearing, as we said in our opening remarks, in May We filed briefs. Those briefs all were filed by July 13. Which then triggered the 90 day timeline within which the commission we hope, will make its decision. And it also has 30 days that it could extend itself. So that puts us on mid October. Now they could decide any day, of course, but we are thinking maybe mid October. But if not mid October by mid November, we may receive a decision from Montana. Okay. Very good. Thanks so much. Thank you, Andrew. Operator: Thank you. And as a reminder, to ask a question, please press 11 on your teleph1. And I am not showing any further questions at this time. I would now like to turn the call back over to Linn Evans for any closing remarks. Linden R. Evans: Well, thank you very much. We appreciate your interest in Black Hills Energy, Black Hills Corporation. You let us off easy today with the questions. We I guess, we will say we appreciate that as well. But I want to close by saying thank you to our team. it is been fantastic to watch all the progress with our large load it is been fantastic to watch how we operate the business day to day with 4 rate reviews ongoing and doing well. Then the merger has been really rewarding to watch teams from both Northwestern and Black Hills work so collaboratively to build something greater than either company today. So thank you for your interest. Have a Black Hills Energy safe day. The motorcycle rally in Sturgis starts tomorrow. If you happen to be in the Sturgis area, stop by and say hello. Take care. Operator: Thank you. This concludes the conference. Thank you for your participation. May now disconnect. Before you buy stock in Black Hills, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Black Hills wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Black Hills (BKH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Black Hills Corporation recently reported its second-quarter 2026 results, with sales of US$452.8 million and net income of US$38.2 million, alongside affirming a quarterly dividend of US$0.703 per share payable on September 1, 2026. The combination of higher quarterly earnings per share and a maintained cash dividend highlights Black Hills’ ability to support shareholder payouts while improving profitability year over year. We’ll now examine how this earnings improvement, particularly the higher net income, interacts with Black Hills’ existing investment narrative and forward expectations. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own Black Hills, you need to believe in the stability of its regulated electric and gas utility model and the long-term value of its capital projects and growing large-load customers. The latest quarter’s higher earnings and steady dividend support that income-focused thesis, but do not materially change the near term catalyst around executing major projects or the key risk of heavy capital spending pressuring cash flows if cost recovery or data center demand disappoint. The recent affirmation of the US$0.703 quarterly dividend stands out in light of the second quarter results, as it shows the board keeping shareholder payouts intact while net income moved higher year over year. For investors watching the progress of projects like Ready Wyoming and the Cheyenne data center build-out, this mix of earnings improvement and consistent cash returns offers a clearer snapshot of how Black Hills is balancing investment needs with current shareholder income. But investors should also be aware of how rising capital requirements could interact with potential data center load volatility and... Read the full narrative on Black Hills (it's free!) Black Hills' narrative projects $3.6 billion revenue and $578.3 million earnings by 2029. This requires 16.8% yearly revenue growth and about a $290 million earnings increase from $288.3 million today. Uncover how Black Hills' forecasts yield a $83.40 fair value, a 12% upside to its current price. Simply Wall St Community members place Black Hills’ fair value between US$67.12 and US$83.40, across 2 different views. Against this spread, the heavy, ongoing grid and generation spend raises important questions about future cash flow resilience and earnings power that are worth comparing across multiple viewpoints. Explore 2 other fair value estimates on Black Hills - why the stock might be worth as much as 12% more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Black Hills research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Black Hills research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Black Hills' overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Find 51 companies with promising cash flow potential yet trading below their fair value. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BKH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Black Hills (BKH) moved back onto investor watchlists after reporting second quarter 2026 earnings on August 5. The company reported higher quarterly sales and net income compared with the same period a year earlier. See our latest analysis for Black Hills. At a share price of $74.65 as of August 6, Black Hills has seen a 7.18% year to date share price return, while its 1 year total shareholder return of 27.59% and 3 year total shareholder return of 46.49% point to momentum that has built over time around improving earnings and the recently affirmed dividend. If earnings driven moves in Black Hills have your attention, this can be a useful moment to look beyond utilities and check out 36 power grid technology and infrastructure stocks After a strong one year run and a valuation signal that points to a premium over some intrinsic estimates, the real question for Black Hills now is whether current earnings and the dividend justify taking on more risk at this price. Analysts following Black Hills see a fair value of about $83.40 per share, which sits above the latest close of $74.65 and underpins a narrative built around regulated growth projects and a pending merger with NorthWestern Energy. Read the complete narrative. Curious how Black Hills gets from today's earnings to that higher fair value? The narrative leans on faster projected profit growth, rising margins, and a richer regulated asset base to bridge the gap. Result: Fair Value of $83.40 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, investors in Black Hills still need to weigh execution risk around the NorthWestern merger, as well as the possibility that large data center demand does not fully materialize. Find out about the key risks to this Black Hills narrative. The earlier fair value story for Black Hills leans on analyst targets and earnings projections. A different lens is the current P/E of 19x, which sits slightly above the global Integrated Utilities average of 18.7x yet below the peer average of 21.2x and an estimated fair ratio of 25.1x. That mix of mild premium and bigger upside gap suggests both valuation risk and potential opportunity. Which side matters more to you at $74.65? See what the numbers say about this price — find out in our valuation breakdown. With sentiment on Black Hills divided between opportunity and risk, take this moment to act quickly, review the key data and form your own view through 3 key rewards and 2 important warning signs If Black Hills has you thinking more broadly about your portfolio, do not stop here. Use the Simply Wall Street Screener to spot other opportunities before they move. Target resilient cash generators by scanning companies with strong finances through the solid balance sheet and fundamentals stocks screener (49 results). Hunt for overlooked quality by tapping into a screener containing 19 high quality undiscovered gems that focuses on businesses with fundamentals the market may not fully appreciate yet. Focus on value opportunities by checking a 51 high quality undervalued stocks that highlights stocks where quality metrics and pricing may be out of sync. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BKH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Black Hills Corporation? Here are five stocks we like better. Black Hills reaffirmed its 2026 adjusted EPS guidance of $4.25–$4.45 after second-quarter adjusted earnings rose to $0.54 per share from $0.38 a year earlier, supported by rate recovery, cost reductions and capital investments. The company’s Wyoming data-center pipeline exceeds 3 gigawatts, including 600 megawatts incorporated into its plan through 2030 for Microsoft and Meta. Black Hills is also negotiating more than 2.5 gigawatts of additional large-load opportunities, including a potential 1.8-gigawatt project. Black Hills has secured six of seven approvals for its planned NorthWestern Energy merger, with Montana approval remaining; a decision is expected around mid-October or mid-November if the review is extended. The 127-Gigawatt Problem: Why AI Needs Its Own Power Black Hills (NYSE:BKH) said it remains on track to meet its 2026 earnings guidance as new rates and rider recovery, large-load demand growth and ongoing capital investments supported second-quarter results. The utility reported second-quarter GAAP earnings per share of $0.50, including $0.04 per share of merger-related transaction costs. Adjusted earnings were $0.54 per share, compared with $0.38 per share in the second quarter of 2025. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Under-the-Radar AI Infrastructure Stocks Powering the Next Buildout For the first six months of 2026, GAAP earnings were $2.23 per share, including $0.10 per share of merger-related costs. Adjusted earnings totaled $2.33 per share, up from $2.24 per share in the prior-year period. Chief Financial Officer Kimberly Nooney said the company benefited from $0.21 per share of new rates and rider recovery in the second quarter, which more than offset higher financing and depreciation expenses. The company also held operating and maintenance expenses flat for the quarter after excluding merger costs, while employee-cost reductions contributed $0.04 per share versus the prior year. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Is the AI Boom a Bubble? These 2 Dividend Stocks Say No Black Hills reaffirmed adjusted EPS guidance of $4.25 to $4.45 for 2026, representing 6% growth at the midpoint compared with 2025. Nooney said the company expects new rates, capital-project recovery, large-load demand and its financial position to support performance in the upper half of its long-term 4% to 6% growth target. President and Chief Executive Officer Linn Evans highlighted growing electricity demand in Wyoming, where the company has recorded 20 consecutive years of rising peak system loads. Wyoming Electric’s July peak load reached 439 megawatts, up 16% from the prior-year peak and 183% above the level when Black Hills acquired the utility in 2005. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The company said its data-center opportunity pipeline exceeds 3 gigawatts. About 600 megawatts of that potential demand is included in its financial plan through 2030, primarily tied to Microsoft’s expansion and Meta’s planned artificial-intelligence data center in Cheyenne. Black Hills expects Meta’s customer load to begin ramping later this year. Marne Jones, senior vice president and chief utility officer, said the company has served Microsoft’s hyperscale data-center growth for more than a decade, primarily through market-energy procurement. Black Hills expects to serve the demand currently included in its plan through a combination of market energy and contracted resources, with minimal incremental capital investment. Beyond the 600 megawatts included in the plan, the company is negotiating more than 2.5 gigawatts of additional large-load opportunities in Wyoming. That pipeline includes a previously disclosed 1.8-gigawatt project. Jones said Black Hills is in advanced negotiations for commercial agreements supporting a diversified resource portfolio for the 1.8-gigawatt opportunity. A generation reservation agreement with a prospective customer has been extended through Aug. 31 and includes up to $377 million of refundable customer advances for long-lead generation equipment. The company said it remains optimistic about reaching definitive agreements during the third quarter. During the question-and-answer session, Evans said the exit of Caruso from the project had not affected negotiations because Black Hills has been negotiating with the hyperscale end user. He said the company is seeking to finalize the related agreements by the end of the third quarter, while emphasizing that it intends to prioritize appropriate risk and reward arrangements for the company, customers and shareholders. Evans also said a separate 75-megawatt data-center opportunity is progressing and is unrelated to the 1.8-gigawatt project. Black Hills is executing a nearly $1 billion capital plan in 2026. Its 99-megawatt Lange II generation project, which will serve western South Dakota and northeastern Wyoming, remains on schedule for service in the fourth quarter. The project’s final long-lead component, a generation step-up transformer, was delivered to the site, according to Jones. The company is advancing rate reviews for Arkansas Gas and South Dakota Electric, while filing a new rate request for Colorado Electric. The Colorado request seeks $26.7 million in annual revenue based on a 10.5% return on equity and a capital structure consisting of 49% debt and 51% equity. Black Hills also received approval for an abbreviated Kansas rate review, with new rates effective July 1. In South Dakota, interim electric rates are scheduled to take effect Aug. 18, while an Arkansas gas rate-review hearing is set for Aug. 20. In Wyoming, the company requested a Large Customer Transmission Cost Adjustment Mechanism intended to recover transmission-related investments and expenses directly from large-load customers that benefit from those facilities. Black Hills expects the tariff to become effective in January 2027. The company’s Wyoming integrated resource plan, submitted June 30, identifies a near-term 95-megawatt capacity need for non-large-load customers. Black Hills recommended meeting that need through a combination of natural gas generation, battery storage and market-energy purchases. Black Hills said it has received six of seven approvals required for its planned merger with NorthWestern Energy. The company received approval from the Federal Energy Regulatory Commission during the second quarter, as well as unanimous settlement approvals in Nebraska and South Dakota. Montana remains the final approval needed to close the transaction. Evans said Black Hills reached settlements with several intervening parties in Montana, while two groups with environmental concerns did not settle. Final briefs were filed July 13, starting a 90-day decision period that could be extended by 30 days. Evans said the company expects a Montana decision around mid-October or, if extended, by mid-November, keeping the transaction on track for a second-half 2026 closing. Black Hills ended the quarter with more than $650 million available under its revolving credit facility. The company issued $50 million of equity through its at-the-market program year to date and is evaluating refinancing options ahead of a January 2027 maturity of $400 million in 3.15% notes. Black Hills Corporation is a diversified energy company based in Rapid City, South Dakota, that provides electricity and natural gas distribution services to residential, commercial and industrial customers. Through its regulated utility subsidiaries—Black Hills Power, Cheyenne Light & Power, and Black Hills Energy—the company delivers reliable energy across Colorado, Kansas, Montana, Nebraska, South Dakota and Wyoming. In addition to its distribution operations, Black Hills owns and operates a generation portfolio that includes natural gas–fired plants, coal-fired units, hydroelectric facilities and wind projects. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Black Hills Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed strong performance to the successful execution of its regulatory agenda and the delivery of new rates and rider recovery, which offset higher financing and depreciation costs. The company is leveraging its unique positioning in Wyoming to capture significant large-load demand, specifically from hyperscale data centers, having served 20 consecutive years of increasing peak system loads. Strategic growth is being driven by a 3-gigawatt data center pipeline, with 600 megawatts already integrated into the financial plan through 2030, primarily from Microsoft and Meta. Operational focus remains on maintaining a solid financial position and credit ratings while executing a nearly $1 billion capital plan, including the 99-megawatt Lange II generation project. The pending merger with Northwestern Energy is viewed as a strategic pivot to create a larger, more collaborative utility entity, with 6 of 7 required regulatory approvals already secured. Management emphasized a 'cautious approach' to growth projections, only including projects in the pipeline that are subject to nondisclosure agreements and active negotiations. Guidance for 2026 is reaffirmed at $4.25 to $4.45 adjusted EPS, assuming continued recovery from capital projects and large-load demand growth to reach the upper half of the 4% to 6% long-term target. The 1.8-gigawatt data center project is in advanced negotiations for definitive agreements expected in the third quarter, which would utilize a diversified resource portfolio including company-owned generation. Management anticipates the Northwestern Energy merger will close in the second half of 2026, pending a final decision from the Montana Commission expected between mid-October and mid-November. Future load growth beyond the current 600-megawatt plan is expected to necessitate incremental generation and transmission investments, supported by new regulatory mechanisms like the LCT-CAM. The company plans to refinance $400 million of notes maturing in January 2027, with evaluation of options beginning later this year. The company requested a Large Customer Transmission Cost Adjustment Mechanism (LCT-CAM) in Wyoming to ensure large-load customers bear the costs of facilities without impacting existing retail customers. South Dakota and Wyoming completed regulatory requirements for new wildfire liability protections, a key component of the company's broader wildfire mitigation and safety strategy. A generation reservation agreement for a prospective customer provides for up to $377 million of refundable customer advances to fund long-lead equipment procurement. Adjusted EPS excludes $0.04 per share of merger-related transaction costs incurred during the second quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the exit of Crusoe has had no impact on negotiations as they have been dealing directly with a hyperscale end user from the beginning. The company emphasized prioritizing the 'right agreements' over speed, noting that missing a Q3 deadline would not signal a project failure but rather continued due diligence on risk and reward. Management confirmed this is a separate customer from the 1.8-gigawatt project and is part of the broader 2.5-gigawatt pipeline currently under negotiation. The company achieved settlements with five parties, including the consumer counsel, which provides a roadmap for commission approval despite opposition from two environmental groups. The statutory 90-day timeline for a decision was triggered on July 13, placing the expected decision window in mid-October, with a possible 30-day extension into mid-November.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Black Hills Corp (NYSE:BKH) reaffirmed its 2026 adjusted EPS guidance of $4.25 to $4.45, representing 6% growth at the midpoint, and expects to deliver in the upper half of its 4% to 6% long-term growth target. The company reported strong second-quarter adjusted EPS of $0.54, up from $0.38 in Q2 2025, driven by $0.21 per share from new rates and rider recovery. Black Hills Corp (NYSE:BKH) has a robust large load demand pipeline exceeding 3 gigawatts, with 600 megawatts already included in its financial plan and over 2.5 gigawatts of additional opportunities under active negotiation. The pending merger with Northwestern Energy has received six of seven required approvals, including FERC and unanimous settlements in Nebraska and South Dakota, with a decision in Montana expected by mid-October to mid-November. The company maintains a solid financial position with strong liquidity of over $650 million under its revolving credit facility and a 56-year track record of consecutive dividend increases. Black Hills Corp (NYSE:BKH) is advancing its regulatory agenda with multiple rate reviews, including a new $26.7 million request for Colorado Electric, and has completed wildfire liability protections in South Dakota and Wyoming. Black Hills Corp (NYSE:BKH) incurred $0.04 per share of merger-related transaction costs in Q2 2026 and $0.10 per share year-to-date, which negatively impacted GAAP earnings. Higher financing costs of $0.06 per share and depreciation expenses of $0.06 per share in Q2 2026 partially offset gains from new rates, reflecting increased debt and new assets placed in service. Weather was $0.03 per share unfavorable compared to normal in Q2 2026 and $0.18 per share unfavorable year-to-date compared to 2025, impacting earnings. The 1.8 gigawatt data center project negotiations are complex and involve multiple parties, with the generation reservation agreement extended to August 31st, creating uncertainty about finalizing definitive agreements within the third quarter. The company faces a $400 million debt maturity in January 2027, requiring refinancing, which could lead to higher interest expenses given current market conditions. The Montana merger approval remains pending, with potential for a 30-day extension by the Commission, adding uncertainty to the expected second-half 2026 closing timeline. Warning! GuruFocus has detected 10 Warning Signs with BKH. Is BKH fairly valued? Test your thesis with our free DCF calculator. Q: What impact did Crusoe's exit have on the status of negotiations for the 1.8 gigawatt data center project, and did it affect the customer's cash deposits or the overall timeline?A: Lynn Evans (President and CEO): The exit of Crusoe has had no impact on the negotiations. We have always ensured we are negotiating directly with the hyperscale end user, which remains the case. The negotiations are on track, though they involve complex, multi-party agreements. We aim to finalize these agreements by the end of the third quarter, but we prioritize doing it right over speed. There has been no delay due to Crusoe's exit. Q: Can you provide more detail on the status and timing of the Montana merger approval, and how the partial settlement might influence the final decision?A: Lynn Evans (President and CEO): We reached settlements with about five parties, including the Consumer Council. The only two entities we did not settle with had strong environmental perspectives, primarily focused on data centers. The settlements provide a clear path for the Commission to approve the merger. Final briefs were filed on July 13, triggering a 90-day decision timeline with a possible 30-day extension. We expect a decision from Montana by mid-October, or potentially mid-November at the latest. Q: Is the 75-megawatt data center opportunity mentioned in the slides related to the 1.8 gigawatt project, and could it lead to a broader deal?A: Lynn Evans (President and CEO): The 75-megawatt opportunity is a different customer from the 1.8 gigawatt project. It is part of our 2.5 gigawatt pipeline. This particular project is advancing nicely, which is why we highlighted it this quarter. Q: How is the company positioned to achieve its earnings guidance for 2026, and what are the key drivers?A: Kimberly Nooney (SVP and CFO): We reaffirmed our guidance range of $4.25 to $4.45 adjusted EPS, representing 6% growth at the midpoint over 2025. Key drivers include new rates and rider recovery from capital projects, large load demand growth, and our solid financial position. We delivered $0.45 per share of new rates and rider recovery and $0.11 of lower O&M in the first half, which more than offset higher financing and depreciation costs. Q: What is the current status of the large load demand pipeline, and how much is included in the financial plan?A: Marnie Jones (SVP and Chief Utility Officer): Our data center pipeline exceeds 3 gigawatts of potential load. Approximately 600 megawatts is included in our financial plan through 2030, primarily driven by Microsoft and Meta. We are actively negotiating more than 2.5 gigawatts of additional opportunities, all additive to our current plan. This includes a 1.8 gigawatt project where we are in advanced negotiations. Q: Can you elaborate on the generation reservation agreement for the 1.8 gigawatt project and its financial implications?A: Marnie Jones (SVP and Chief Utility Officer): We executed a generation reservation agreement with a prospective customer for company-owned generation. The agreement includes customer-funded milestone payments supporting procurement of long-lead generation equipment. It has been extended through August 31st and provides for up to $377 million of refundable customer advances. This is intended to transition to a long-term generation facilities agreement. Q: What regulatory mechanisms are being pursued to ensure large load customers bear their costs and protect existing retail customers?A: Marnie Jones (SVP and Chief Utility Officer): In Wyoming, we requested a Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) to directly recover transmission-related investments and expenses from large load customers. We expect it to become effective in January 2027. This, along with commercial agreements, ensures large load customers bear costs associated with serving their load and do not adversely impact existing retail customers. Q: What is the status of the Lang 2 generation project and its recovery mechanisms?A: Marnie Jones (SVP and Chief Utility Officer): The 99-megawatt Lang 2 generation project is on schedule to be placed in service in the fourth quarter. The final long-lead piece of equipment, the Generation Step-Up Transformer, was delivered last week. Recovery for the Wyoming portion was included in our rate review request, and we recently filed for recovery of the South Dakota portion through the Generation Rider. Q: How is the company managing its balance sheet and liquidity to support its capital plan?A: Kimberly Nooney (SVP and CFO): We maintain a solid financial position with credit metric targets of 14% to 15% FFO to debt and better than 55% net debt to total capitalization. Year-to-date, we issued $50 million of equity under our ATM program. We have more than $650 million of availability under our revolving credit facility. Our next debt maturity is $400 million of 3.15% notes in January 2027, and we are evaluating refinancing options for later this year. Q: What are the key achievements in the regulatory agenda, and what rate reviews are currently ongoing?A: Marnie Jones (SVP and Chief Utility Officer): We continue to execute on our regulatory plan with a cadence of three to four rate reviews per year. In June, we received approval for an abbreviated rate review in Kansas. Our Arkansas gas rate review is in final stages with a hearing set for August 20. We are advancing South Dakota Electric rate reviews with interim rates effective August 18. We also filed a new rate review for Colorado Electric, requesting $26.7 million of new annual revenue based on a 10.5% ROE. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Reaffirms 2026 adjusted earnings guidance in the range of $4.25 to $4.45 per share, excluding merger-related costs Served new all-time peak load at Wyoming Electric driven primarily by growing large-load demand Progressing toward completion of multiple definitive agreements for a 1.8 GW data center project in Wyoming Completed regulatory requirements to receive new wildfire liability protections in South Dakota and Wyoming On track to close merger with NorthWestern Energy pending approval from Montana as the final condition for closing RAPID CITY, S.D., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced financial results for the second quarter ended June 30, 2026. Net income available for common stock and earnings per share, diluted (EPS) for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, were: ________________________ Second-quarter GAAP EPS was $0.50 compared to $0.38 in the same period in 2025. Second-quarter adjusted EPS was $0.54, excluding $0.04 of after-tax merger-related costs, compared to $0.38 in the same period in 2025. Financial results benefited from new rates and rider recovery, which more than offset higher financing and depreciation costs driven by capital investment and new assets in service. Year-to-date GAAP EPS was $2.23 compared to $2.24 in the same period in 2025. Year-to-date adjusted EPS was $2.33, excluding $0.10 of after-tax merger-related costs, compared to $2.24 in the same period in 2025. Financial results benefited from new rates and rider recovery and cost management activities. These benefits more than offset $0.18 per share of impacts from mild weather and the impacts of higher financing and depreciation costs driven by capital investment and new assets in service. “I’m extremely proud of our team and all we’ve accomplished in the first half of the year, delivering strong financial results and meaningful progress on our strategic initiatives,” said Linn Evans, president and CEO of Black Hills Corp. “We continued to advance our regulatory requests and execute our customer-focused capital plan, which includes our new 99-MW Lange II generation facility in South Dakota to be in service by year-end. “We are also focused on serving our large-load demand pipeline of more than 3 GW in Wyoming. Our current financial plan includes 600 MW by 2030 driven by Microsoft’s expansion of existing operations and Meta’s new AI data center. We continue to make progress toward definitive agreements to serve a 1.8 GW data center project in Cheyenne, and other large-load customers, which would be additive to our plan. “These significant large-load opportunities and the solid performance of our core businesses provide confidence in our ability to deliver in the upper half of our 4% to 6% long-term EPS growth target, and create compelling upside potential. We also look forward to a brighter energy future for all our stakeholders through our merger with NorthWestern Energy with only one regulatory approval remaining,” concluded Evans. Merger with NorthWestern Energy Group, Inc. On Aug. 19, 2025, Black Hills Corp. and NorthWestern Energy announced a tax-free, all-stock merger. The transaction is expected to close by year-end 2026, subject to the satisfaction of certain closing conditions and remaining regulatory approval from the Montana Public Service Commission. All other remaining approvals and conditions for closing were received or satisfied, including approvals by shareholders of both companies, the completion of the waiting period on the Hart-Scott-Rodino Act, and approvals by the Federal Energy Regulatory Commission and regulatory commissions in Nebraska and South Dakota. SECOND-QUARTER 2026 HIGHLIGHTS AND RECENT UPDATES Electric Utilities On Aug. 4, South Dakota Electric filed a request with the South Dakota Public Utilities Commission (SDPUC) for recovery of costs related to its 99 MW, $320 million Lange II gas-fired generation project through a rider mechanism available under state law. The new facility under construction in Rapid City, South Dakota, is expected to be completed and in service during the fourth quarter of 2026 to replace generation resources planned for retirement and support updated reserve margin requirements. Year to date, Wyoming Electric recorded four new all-time customer load peaks driven primarily by growth in large-load data center demand. The new peaks advance a track record of 20 consecutive years of increasing electric demand in the Cheyenne, Wyoming region. The most recent peak of 439 MW on July 20, 2026, represents an increase of 16% over the peak of 379 MW on June 20, 2025. In July, South Dakota Electric and Wyoming Electric completed regulatory requirements for wildfire liability protections outlined in legislation enacted in 2025 and early 2026. On July 9, 2026, Wyoming Electric received approval from the Wyoming Public Service Commission (WPSC) of the company’s Wildfire Mitigation Plan. On July 2, 2026, South Dakota Electric submitted the company’s plan to the SDPUC in accordance with the legislation requirements. On June 30, Wyoming Electric submitted its 2026 Integrated Resource Plan to the WPSC based on a 20-year planning period, including a near-term period through 2033, which identified a near-term capacity shortfall of 95 MW beginning in 2027. Based on its forecasts and analysis, Wyoming Electric recommends the addition of 36 MW of new natural gas-fired reciprocating internal combustion engines (RICE), 50 MW of battery storage, and energy market purchases to meet the identified resource need. Wyoming Electric's IRP does not address Large Power Contract Service (LPCS) tariff capacity needs, which are handled separately under customer-specific agreements. On June 19, Wyoming Electric filed a request with the WPSC to establish a new Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) tariff. The LCTCAM provides a framework to directly recover transmission investment costs from LPCS customers who are served by, and benefit from, the transmission facility. The proposed mechanism is designed to ensure that customers not directly served by those facilities are protected from bearing those costs. The filing requests WPSC approval of the tariff by Sept. 1, 2026, with an effective date of Jan. 1, 2027. On June 12, Colorado Electric filed a rate review request with the Colorado Public Utilities Commission seeking approval to recover approximately $184 million of critical investments since its last rate review in 2024. The rate review requested $27 million of new annual revenue based on a capital structure of 51% equity and 49% debt and a return on equity of 10.5%. The company is seeking new rates in the first quarter of 2027. On April 22, Wyoming Electric entered into an agreement to procure long lead-time generation equipment with a prospective data center customer seeking to construct a 1.8 GW data center to be served under Wyoming Electric’s LPCS tariff. The customer provided $285 million in refundable advances through June 30, 2026, in support of milestone payments to secure generation equipment. In July, the parties amended this generation reservation agreement to increase the total refundable advances to $377 million with a new maturity date of Aug. 31, 2026. Wyoming Electric continues to negotiate definitive agreements with the prospective customer. On March 18, South Dakota Electric filed a rate review request with the WPSC seeking approval to recover critical investments since its last rate review in 2014. The rate review requested $5 million of new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company is seeking new rates in the first quarter of 2027. On Feb. 19, South Dakota Electric filed a rate review request with the SDPUC seeking approval to recover critical investments since its last rate review in 2014. The rate review requested $51 million of new annual revenue based on a capital structure of 53% equity and 47% debt and a return on equity of 10.5%. The company is seeking interim rates to be effective 180 days after filing, with new rates to be finalized in the first quarter of 2027. Gas Utilities On June 25, Kansas Gas received approval from the Kansas Corporation Commission of an abbreviated rate review request seeking $2.4 million in new annual revenue for capital placed in service through Dec. 31, 2025, based on authorized returns and capital structure under a black box settlement agreement for the July 2025 rate review. New rates were effective July 1. On Dec. 5, 2025, Arkansas Gas filed a rate review request with the Arkansas Public Service Commission seeking approval to recover approximately $147 million of system investments for its natural gas pipeline infrastructure since its last general rate filing in 2023. The rate review requested $29 million of new annual revenue based on a capital structure of 50% equity and 50% debt and a return on equity of 10.5%. The company is seeking final rates in the second half of 2026. Corporate and Other On July 28, Black Hills’ board of directors approved a quarterly dividend of $0.703 per share payable on Sept. 1, 2026, to common shareholders of record at the close of business on Aug. 17, 2026. On an annualized basis, the dividend represents 56 consecutive years of increases, the second-longest track record in the electric and natural gas industry. During the second quarter, the company issued a total of 0.1 million shares of new common stock for net proceeds of $9 million. Year to date, the company issued a total of 0.7 million shares of new common stock under its at-the-market equity offering program for net proceeds of $50 million. During the second quarter, Black Hills published its 2025 Corporate Sustainability Report, highlighting the company's continued progress toward emission reduction goals, strategic infrastructure investments and innovative solutions to deliver safe, reliable and cost-effective energy across the communities it serves. The company’s electric utilities achieved a 43% reduction in emissions intensity compared to 2005, continuing on pace to achieve its 70% by 2040 target. The natural gas utility reduced emissions by 25% since 2022, reflecting strong progress toward its net-zero by 2035 goal. 2026 ADJUSTED EARNINGS GUIDANCE REAFFIRMED Black Hills reaffirms its guidance for 2026 adjusted EPS* to be in the range of $4.25 to $4.45, based on the following assumptions: Normal weather conditions within our utility service territories; Constructive and timely outcomes of utility regulatory dockets; Excludes merger-related costs; Excludes mark-to-market adjustments; Increase in operations and maintenance expense (excludes merger-related costs, depreciation and amortization, and taxes other than income taxes) of approximately 3.5% off 2025 of $580 million; Equity issuance between $50 million and $70 million; and An effective tax rate of approximately 14% for the full year. This guidance excludes the expected merger with NorthWestern Energy, which is expected to close in the second half of 2026. * The 2026 Adjusted EPS guidance shown above is a forward-looking, non-GAAP financial measure. The company is not able to provide comparable GAAP EPS guidance due to items that are not considered representative of the company's underlying operating performance that cannot be reasonably quantified for the full-year period. These items include merger-related costs the company expects to incur in 2026, in addition to any other unplanned items that may affect GAAP results in 2026. USE OF NON-GAAP FINANCIAL MEASURES As noted in this earnings release, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has presented non-GAAP Adjusted earnings and Adjusted EPS, which reflect adjustments for expenses, gains and losses that the company believes do not reflect ongoing core operating performance, such as costs related to the pending merger with NorthWestern. The company’s management uses non-GAAP measures for financial planning and analysis, for reporting of results to the Board of Directors, in determining performance-based compensation and communicating its earnings outlook to analysts and investors. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. Our non-GAAP measures may not be comparable to those of other companies. Reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included below. BLACK HILLS CORPORATIONCONSOLIDATED FINANCIAL RESULTS (Minor differences may result due to rounding) CONSOLIDATING INCOME STATEMENTS (Minor differences may result due to rounding) Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025 Electric Utilities’ operating income increased $12.1 million primarily due to new rates and rider recovery driven by the Wyoming Electric's recently completed Ready Wyoming project; Gas Utilities’ operating income increased $7.6 million primarily due to new rates and rider recovery driven by the Nebraska Gas and Kansas Gas rate reviews partially offset by higher operating expenses; Corporate and Other operating loss increased $5.2 million primarily due to costs related to the pending merger with NorthWestern; and Net interest expense increased $2.7 million primarily due to higher rates on increased debt. Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025 Electric Utilities’ operating income increased $16.9 million primarily due to new rates and rider recovery driven by the Colorado Electric rate review and Wyoming Electric's recently completed Ready Wyoming project partially offset by lower retail customer usage and unfavorable weather; Gas Utilities’ operating income increased $1.0 million primarily due to new rates and rider recovery driven by the Nebraska Gas, Kansas Gas, and Arkansas Gas rate reviews mostly offset by unfavorable weather and higher operating expenses; Corporate and Other operating loss increased $6.3 million primarily due to costs related to the pending merger with NorthWestern; and Net interest expense increased $3.2 million primarily due to higher rates on increased debt partially offset by higher AFUDC debt. OPERATING STATISTICS Electric Utilities ________________________ ________________________ OPERATING STATISTICS (continued) Gas Utilities ________________________ ________________________ CONFERENCE CALL AND WEBCAST Black Hills will host a live conference call and webcast at 11 a.m. EDT on Thursday, Aug. 6, 2026, to discuss the company's financial results. To participate by phone and ask a question during the live broadcast, participants can access the event directly at Black Hills Corp. Conference Call. Please allow at least five minutes to register. Upon registration, dial-in information will be provided, including a personal identification number. To access a listen-only webcast and view presentation slides, please register at Black Hills Corp. Webcast. At the conclusion of the call, a replay of the broadcast will be available at this link and at Black Hills’ investor relations website for up to one year. ABOUT BLACK HILLS CORP. 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 more than 1.37 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 press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. 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 press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. This includes, without limitations, our 2026 earnings guidance, long-term growth target and our expectations for regulatory approvals for and the closing of the merger with NorthWestern Energy. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events 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, including without limitation, the risk factors described in Item 1A of Part I of our 2025 Annual Report on Form 10-K and other reports that we file with the SEC from time to time, and the following: The accuracy of our assumptions on which our earnings guidance and long-term growth target is based; Our ability to obtain timely and adequate regulatory approvals and cost recovery; Our ability to execute our capital investment program and strategic initiatives; Our ability to access capital markets and successfully execute financing plans; The effects of inflation, interest rates, commodity prices, supply chain constraints and labor availability; Severe weather, wildfire, cybersecurity incidents (including risks associated with the use of artificial intelligence and evolving cyber threats), operational and other business risks; Our ability to serve customer growth opportunities, including large-load customers; Changes in laws, regulations and governmental policies; and The expected timing and likelihood of completion and our ability to realize the anticipated benefits of the proposed merger with NorthWestern, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed acquisition that could reduce anticipated benefits or give rise to the termination of the merger. 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.

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NorthWestern Energy Group Inc (NASDAQ:NWE) reaffirmed its 2026 earnings guidance range of $3.68 to $3.83 and its long-term rate base and EPS growth targets of 4% to 6%. The company reported a $0.10 increase in adjusted EPS for Q2 2026 compared to the prior year, driven by improved base rate recovery in Montana. The merger with Black Hills Corporation received key regulatory approvals from the Nebraska PSC, South Dakota PUC, and FERC, with a final decision from the Montana PSC expected between mid-October and mid-November. The company is actively pursuing data center opportunities, with expectations to sign ESAs with two of three development partners (Quantic and Atlas) by year-end. The $3.2 billion capital plan for 2026-2030 remains on track, excluding potential incremental investments from regional transmission growth or serving large loads, which could drive faster growth. The company's standalone value proposition offers an approximate 4% dividend yield and 8% to 10% total return, with potential for greater than 10% if data center and large load opportunities are executed. The merger with Black Hills is expected to deliver 5% to 7% EPS growth on a combined basis, with cost savings benefits accruing to customers in future rate reviews. The company saw improved market conditions in July, with warmer temperatures and higher demand, which could help recover costs from the Colstrip assets in the second half of the year. NorthWestern Energy Group Inc (NASDAQ:NWE) incurred $0.04 of merger-related costs and $0.05 of unrecovered operating expenses from Colstrip in Q2 2026, impacting GAAP earnings. The company experienced an unseasonably warm winter in Q1 2026, which significantly impacted year-to-date results, requiring a large weather adjustment. The final merger approval from the Montana PSC is still pending, with a decision expected in 90 to 120 days, creating uncertainty around the closing timeline. The ESA with SEBI, one of the three data center development partners, is unlikely to be completed by year-end due to ongoing land procurement issues. The company faces ongoing public pushback and local moratorium discussions regarding data center siting, which could delay or complicate project development. The PCAM tariff waiver for Colstrip is insufficient to recover O&M costs for the Avista share, and a rate review filing is needed to address this, with timing still under consideration. The company's transmission import capacity is expected to decline through 2028, even before accounting for large load pipeline, highlighting the need for significant new transmission investments. The South Dakota sales tax issue on equipment purchases for large load customers remains unresolved, potentially hindering data center development in that state. Warning! GuruFocus has detected 12 Warning Signs with NWE. Is NWE fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide your take on the probability of realizing the full 7.2 gigawatt interconnection request from Quantic, and any physical considerations that come to mind?A: Brian Byrd (President and CEO): I don't want to speak for Quantic here. As noted in the document, 1.1 gigawatts is what we are focused on. We all need to have success at these lower gigawatt levels first. If we ultimately sign an ESA and move forward, we will let them discuss their relative success and how to build up to that level. As we sit here today, we are focused on the 1.1 gigawatts. Q: The PCAM tariff waiver was insufficient to contribute to the recovery of the O&M for the Avista share of Colstrip. What is the action plan for getting better protection on these costs and the timing?A: Crystal Lail (CFO): We have a tariff waiver currently for how the impact of those sales flows through PCAM. The Montana Commission has shown overall support for Colstrip and its value to Montanans. Our action plan is to eventually file a rate review and put that asset into base rates. We are waiting for a motion for reconsideration on our 2024 rate review. We will need to file a rate review to address this, and we are considering the timing. The PKM docket where the tariff waiver sits was granted on an interim basis, and we expect it to move through a timeline of Q4 2026 and maybe into early 2027. Q: The IRP materials show available import capacity on your transmission path declining through 2028. Is the 300 megawatts from the North Plains Connector enough, or does the real answer have to be a bigger project?A: Brian Byrd (President and CEO): The North Plains Connector is necessary, and our Montana to Idaho line is also crucial to provide capacity. There are also opportunities to expand capacity on Path 8, which is our current Colstrip line. That is easier to do than greenfield projects. We are also looking at Path 80 as an opportunity. There is a lot of transmission capacity we will need, particularly with growth in the Pacific Northwest and Montana. We are excited about our ability to invest in transmission. Q: There has been local pushback this quarter with moratorium discussions and ballot petitions. Is that changing how you and developers approach siting?A: Brian Byrd (President and CEO): We as an industry need to do a better job communicating and working with communities to find out what they want. There is a lot of misinformation about data centers. We believe they will be great for our service territory. We have to work collectively to demonstrate benefits in a more concise way. This is an industry issue, not just a Northwestern Energy issue. Commitments that data centers will pay their own way and not pass on higher costs to customers will help deal with these issues, but this will be a continuing issue for the industry. Q: Can you give us a breakdown of the weather adjustment by segment?A: Crystal Lail (CFO) and Travis Meyer (Director of Corporate Development and IR): For Q2, the weather adjustment is only $0.01, so it is pretty small. The bigger impact was in Q1 due to mild weather. We do not disclose the weather adjustment by segment (electric vs. gas, Montana vs. South Dakota), but it is something we can consider disclosing in the future. Q: Can you give us a sense of how you see the progression of the Puget and Avista Colstrip pieces through the rest of the year, particularly with Q3 weather?A: Crystal Lail (CFO): After a mild winter and low market prices in Q1 and Q2, we have seen improvement in July with warmer temps and demand on our system. We set a new balancing area record. Market prices haven't had big peaking events, but there has been an improvement in prices and the ability to cover costs of those assets. We hope to see that continue through the year and earn back a bit of what happened in the first half, but I won't give predictions on weather. Q: Now that Commissioner Molnar is gone from the MPSC, do you still stick to the 90 to 120 day expectation for the merger approval? How does that affect the large tariff docket?A: Brian Byrd (President and CEO): I don't think that has bearing on the timing. The 90 to 120 days should still hold. As long as there is a quorum, commissioners can continue to vote on matters. I expect that to be the case as we move forward. Q: The high-level assessment pool doubled to eight customers. Can we get a sense of the megawatt size of demand in that queue?A: Brian Byrd (President and CEO): We haven't shared who is in that queue or the megawatts folks are talking about. I wouldn't concern yourself too much with megawatts until you see development agreements. When you get to assessment, some people fall away when they find out the costs, but some work quickly through the process. We are seeing interest in both Montana and South Dakota. Q: Commissioner Molnar is challenging his removal in state court, and the governor may be moving to replace him. Does that change the 90 to 120 day timeline? Also, the 7.2 gigawatt Quantic filing activated an opposer to ask to reopen the merger record. Are we past that point?A: Brian Byrd (President and CEO): I believe the commission is forging ahead. They have done a good job through this process to show this transaction is not about data centers. I do not believe we will see a delay as a result of anything happening with Commissioner Molnar or any incremental information since the hearing. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in NorthWestern Corporation? Here are five stocks we like better. NorthWestern reported improved second-quarter results, with adjusted EPS rising to $0.50 from $0.40 a year earlier, and reaffirmed its 2026 guidance of $3.68–$3.83 per share. Its $3.2 billion 2026–2030 capital plan remains unchanged. The proposed merger with Black Hills has received all required approvals except from the Montana Public Service Commission, which is expected to decide between mid-October and mid-November. The companies continue integration planning and believe the combined business could achieve 5%–7% long-term EPS growth. NorthWestern is pursuing recovery of Colstrip-related costs while seeking growth from data centers and transmission projects. The company expects potential energy service agreements with Quantica and Atlas by year-end, but emphasized that no agreements are guaranteed. NorthWestern (NASDAQ:NWE) reported second-quarter 2026 GAAP diluted earnings per share of $0.40 and adjusted diluted EPS of $0.50, up from adjusted EPS of $0.40 a year earlier. The company reaffirmed its full-year 2026 earnings guidance of $3.68 to $3.83 per share, along with long-term rate base and EPS growth targets of 4% to 6%. President and Chief Executive Officer Brian Bird said the company also declared a quarterly dividend of $0.67 per share, payable Sept. 1 to shareholders of record Aug. 17. The timing change was intended to align NorthWestern’s dividend schedule with that of Black Hills Corp. as the companies pursue their pending merger. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Chief Financial Officer Crystal Lail said adjusted second-quarter earnings reflected a $0.10-per-share year-over-year increase, driven primarily by improved base-rate recovery. Second-quarter GAAP results included merger-related costs, expenses associated with incremental ownership in the Colstrip generating station, and weather effects. On a year-to-date basis, NorthWestern reported GAAP EPS of $1.43, compared with $1.60 in the prior-year period. Adjusted EPS was $1.81, compared with $1.62 a year earlier. Lail said the first quarter was affected by an unseasonably warm winter, requiring a significant weather adjustment. → 3 Value ETFs to Consider as Growth Stocks Lag Behind For the second quarter, weather was unfavorable by $0.01 per share versus normal conditions, according to the company. NorthWestern excluded $0.04 per share of merger costs and $0.05 per share of unrecovered Colstrip operating expenses in arriving at adjusted EPS. Lail said quarterly margin improved by $0.38 per share from the prior-year period, aided by new Montana rates, sales tied to the Puget Colstrip interest and growing transmission revenue. Those gains were partly offset by higher operating expenses, depreciation and interest expense. Incremental Colstrip ownership accounted for $0.12 per share of higher operating costs, she said. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company’s $3.2 billion capital plan for 2026 through 2030 remains unchanged. Lail said the plan is focused on essential customer-serving investments and does not include potential incremental spending associated with regional transmission expansion or large-load customers. NorthWestern received approvals for its proposed merger with Black Hills from the Nebraska Public Service Commission, South Dakota Public Utilities Commission and Federal Energy Regulatory Commission during the second quarter. Shareholders also approved the transaction, Bird said. The remaining required approval is from the Montana Public Service Commission. The companies completed final briefing in mid-July, and Bird said NorthWestern expects a decision within roughly 90 to 120 days, or between mid-October and mid-November. “We are certainly cautiously optimistic about that decision,” Bird said, adding that NorthWestern and Black Hills are continuing integration planning so they can move forward if Montana approval is granted. Bird said the companies expect the combined organization to generate long-term benefits for customers as well as shareholders. Any cost savings from combining the companies would accrue to customers in future rate reviews, he said. On a standalone basis, NorthWestern targets 4% to 6% EPS growth and an approximate 4% dividend yield; Bird said the combined company could potentially deliver 5% to 7% EPS growth. During the analyst question-and-answer session, Lail said NorthWestern expects ultimately to seek recovery of Colstrip-related costs through a future Montana rate review. The company currently has an interim tariff waiver governing how sales impacts flow through its power cost and credit adjustment mechanism, or PCCAM. Lail said the PCCAM docket could progress through the fourth quarter of 2026 and potentially into early 2027. She added that the company is awaiting a decision on a motion for reconsideration related to its 2024 rate review while it evaluates the timing of another filing. NorthWestern saw improved demand during July as temperatures increased across the West, Lail said. Although the company had not seen major market-price spikes, she said conditions had improved from the first half of the year and could help the company cover Colstrip costs. Bird said NorthWestern remains active in pursuing data-center and other large-load opportunities in Montana and South Dakota. The company continues to work toward energy service agreements, or ESAs, with Quantica and Atlas by year-end, though Bird stressed there were no guarantees. A third prospective customer, Sabe, is still addressing land-procurement issues. NorthWestern’s current focus with Quantica is a 1.1-gigawatt project, Bird said, rather than the larger 7.2-gigawatt interconnection request referenced by an analyst. He said the parties would need to demonstrate success at lower load levels before discussing further expansion. The company has filed a large new-load tariff in Montana aimed at protecting existing customers. In South Dakota, NorthWestern can use an existing large-load tariff, though Bird said the company is seeking legislative action on sales-tax treatment for equipment purchases. Bird also highlighted transmission needs tied to regional load growth. He cited the North Plains Connector, a Montana-to-Idaho transmission line under development, possible capacity expansion on the Path 8 Colstrip transmission line, and potential work on Path 80. NorthWestern believes additional transmission capacity will be needed to support growth in Montana and the Pacific Northwest, he said. Addressing community concerns surrounding data centers, Bird said utilities, developers and data-center operators need to improve their communication with local communities. He said projects should demonstrate that large-load customers will pay their own costs rather than shifting higher expenses to existing utility customers. NorthWestern Corporation (NASDAQ: NWE) is a regulated energy company that delivers electricity and natural gas to residential, commercial and industrial customers. Through its Electric Operations and Gas Operations segments, the company operates an extensive network of distribution lines, substations and pipelines. NorthWestern's services encompass the delivery of power sourced from regional transmission systems and the procurement, storage and distribution of natural gas to end users. Electric delivery services include the management of distribution infrastructure, customer metering and system reliability programs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "NorthWestern Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.