Black Hills Corporation
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsBlack Hills Corp. is a South Dakota-based utility holding company with electric and natural gas operations across eight states, currently pursuing a merger with NorthWestern Energy.
What they do
Black Hills operates two segments: Electric Utilities and Gas Utilities. Electric Utilities generate, transmit, and distribute electricity to about 227,000 customers in Colorado, Montana, South Dakota, and Wyoming, with 1,386 MW of generation and 9,478 miles of lines. Gas Utilities serve approximately 1,138,000 natural gas customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming, with 4,581 miles of intrastate transmission pipelines and 44,840 miles of distribution mains. The company is headquartered in Rapid City, South Dakota.
Revenue drivers
- Electric Utilities — Generates and sells electricity to residential, commercial, and industrial customers, including large-load data center customers like Microsoft and Meta in Wyoming under the LPCS Tariff.
- Gas Utilities — Distributes natural gas to over 1 million customers across six states, with revenue tied to rate-regulated delivery volumes and rider recovery.
- Large-load data center demand — Wyoming Electric's large-load growth, including a 1.8 GW prospective data center, is a significant new demand source; current plan includes 600 MW by 2030 from existing Microsoft and Meta facilities.
Recent performance
For Q2 2026, GAAP EPS was $0.50 and adjusted EPS was $0.54, compared to $0.38 in Q2 2025. Six-month GAAP EPS was $2.23, adjusted EPS $2.33, versus $2.24 a year ago. Results benefited from new rates and rider recovery, offset by higher financing and depreciation costs and $0.18 per share of mild weather impacts. Full-year 2025 revenue was $2.29B and net income $291.6M, with diluted EPS of $3.98.
Strategy
The company’s strategy has four priorities: People & Culture, Operational Excellence, Transformation, and Growth. It is executing a significant capital investment program including the 99-MW Lange II gas plant in South Dakota, a 50-MW battery storage project in Colorado, and transmission upgrades like the Ready Wyoming project. Large-load demand from data centers is a key growth driver, with a pipeline of over 3 GW in Wyoming. The pending all-stock merger with NorthWestern Energy is expected to close by year-end 2026, creating a combined company serving about 0.7 million electric and 1.5 million gas customers.
Risks
- Merger approval risk — The NorthWestern merger requires approvals from FERC, MPSC, NPSC, SDPUC, HSR clearance, FCC consent, and shareholder approvals; Montana approval remains the final condition.
- Regulatory cost recovery risk — The company's capital projects, including Lange II and LCTCAM tariff, depend on regulatory approvals; delay or denial of riders or rate cases could hurt returns.
- Cash flow volatility — Operating cash flow has varied significantly, from negative $64.6M in 2021 to $673.4M in 2025, with seasonal and weather-driven swings affecting liquidity.
- Wildfire liability and climate risk — Electric operations face wildfire risk; mitigation measures include a PSPS program, but new liability protections in South Dakota and Wyoming are recent and may not fully shield the company.
Outlook
Management reaffirmed 2026 adjusted EPS guidance of $4.25 to $4.45, excluding merger-related costs. They expect to close the NorthWestern merger by year-end 2026. The company projects 600 MW of large-load load by 2030 from existing data center customers, with potential upside from a 1.8 GW Cheyenne project and other negotiations. Lange II is anticipated in service in Q4 2026, and a PIRP rider for $320 million was filed in August 2026.