• Like a multi-state Con Edison (Consolidated Edison).
• A regional utility similar to Duke Energy.

• Electric Utility Service: Provides electricity generation, transmission, and distribution to customers in parts of South Dakota, Wyoming, and Montana.
• Natural Gas Utility Service: Delivers natural gas transmission and distribution to customers in parts of Colorado, Iowa, Kansas, Nebraska, and Wyoming.

Black Hills Corporation (BKH) is a public utility company that provides electricity and natural gas services. As such, it sells its services primarily to end-users rather than to a few major corporate customers.

The major categories of customers that Black Hills Corporation serves are:

1. Residential Customers: These are individual households that use electricity and/or natural gas for their homes.
2. Commercial Customers: This category includes businesses, offices, retail establishments, and other non-industrial enterprises that use electricity and/or natural gas for their operations.
3. Industrial Customers: This includes larger industrial facilities, manufacturing plants, and other large-scale operations that have significant energy demands.

Linden R. Evans, President and Chief Executive Officer

Linden R. Evans was named President and Chief Executive Officer of Black Hills Corporation on January 1, 2019, and was elected to the Board of Directors on November 1, 2018. He previously served as President and Chief Operating Officer from January 2016 to January 2019, and as President and Chief Operating Officer of the company's utilities from 2004 to 2015. Mr. Evans joined Black Hills as an attorney in 2001. Prior to joining Black Hills, he worked as a mining engineer for several hard rock mining operations and practiced law, specializing in mining and environmental issues. He holds a bachelor's degree in mining engineering from the University of Missouri-Rolla and a Juris Doctorate from Lewis and Clark College. Mr. Evans has also served as President and Director for Black Hills Power, Inc., Cheyenne Light, Fuel & Power Co., and Black Hills Energy Arkansas, Inc., all subsidiaries of Black Hills Corporation.

Kimberly Nooney, Senior Vice President and Chief Financial Officer

Kimberly Nooney was appointed Senior Vice President, Chief Financial Officer, and Treasurer effective April 1, 2023. She brings over 28 years of experience with Black Hills across various roles, including internal audit, corporate development, accounting systems, treasury, and financial planning and analysis. Prior to her current role, Ms. Nooney served as Vice President – Treasurer from 2015 to 2023 and also as Corporate Controller from 2018 to 2022. She has a total of 29 years of leadership, finance, and accounting experience, which includes three years in public accounting.

Marne Jones, Senior Vice President and Chief Utility Officer

Marne Jones has served as Senior Vice President Utilities since June 15, 2023. She joined Black Hills in 2001 and has progressed through roles of increasing responsibility in finance, accounting, corporate services, regulatory, and utility operations. Her previous positions include VP Electric Utilities (2021-2023), Vice President Regulatory and Finance (2018-2021), and Vice President Regulatory (2016-2018). Ms. Jones brings 21 years of utility experience, in addition to prior banking experience.

Sarah Wiltse, Senior Vice President and Chief Human Resources Officer

Sarah Wiltse joined Black Hills Corporation as Senior Vice President and Chief Human Resources Officer on October 28, 2024. Before her time at Black Hills, she was the Vice President of Human Resources for ACCO Brands, a publicly traded global consumer goods company. Her career also encompasses over a decade with Union Pacific and several years with Compass Minerals, where she held senior leadership roles in various aspects of human resources and business operations.

Brian G. Iverson, Former Senior Vice President, General Counsel, Chief Compliance Officer

Brian G. Iverson served as Senior Vice President, General Counsel, and Chief Compliance Officer since 2016. He retired from the company effective September 7, 2024. Mr. Iverson joined Black Hills in 2004 and held various leadership roles, including Senior Vice President, Regulatory and Government Affairs (2014-2016), Vice President and Treasurer (2011-2014), Vice President, Electric Regulatory Services (2008-2011), and Corporate Counsel (2004-2008). He holds an MBA and a JD from the University of South Dakota. Prior to joining Black Hills, Mr. Iverson spent nearly 20 years as an auditor with Citigroup and as an attorney in private practice specializing in taxation, finance, and banking.

Here are the key risks to Black Hills (BKH) business:

1. Regulatory and Political Uncertainty: Black Hills Corporation operates within a heavily regulated energy industry, making it highly susceptible to changes in policy and political landscapes. Shifts in regulation, delays in obtaining approvals for rate increases, and the timely recovery of costs for significant capital investments can significantly impact the company's operations, cost structures, and profitability. The company's ability to align its infrastructure spending with long-term, cost-recoverable revenue streams is dependent on constructive regulatory environments and timely decisions from state regulatory commissions.
2. Capital Intensity and Debt Management: The energy sector is inherently capital-intensive, requiring substantial financial resources for infrastructure investments and compliance. Black Hills' significant capital projects can strain its balance sheet and cash flows, particularly if there are unforeseen challenges or delays in regulatory approvals. The company carries a considerable amount of long-term debt, and managing its interest expense effectively is crucial as rising interest expenses can pressure net margins.
3. Market Volatility and Energy Prices/Weather Dependency: Black Hills Corporation faces risks from market volatility, especially concerning energy prices. Fluctuations in energy prices can affect the company's profitability. Additionally, a substantial portion of the company's natural gas revenues is seasonal and highly dependent on weather conditions. Unexpected weather patterns can lead to fluctuations in demand and market pricing for natural gas, impacting the company's financial performance.

Increased adoption of distributed generation (e.g., rooftop solar) and energy storage technologies by customers, leading to reduced demand for utility-provided electricity and potential revenue erosion for Black Hills.

Black Hills Corporation's primary products and services are electric and natural gas utility services.

For its **Electric Utilities** segment, the addressable market encompasses approximately 222,000 electric utility customers across Colorado, Montana, South Dakota, and Wyoming. The company operates with 1,394 megawatts of generation capacity and maintains 9,106 miles of electric transmission and distribution lines within this region.

For its **Natural Gas Utilities** segment, the addressable market consists of approximately 1,116,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. This segment includes approximately 4,663 miles of intrastate gas transmission pipelines and 42,514 miles of gas distribution mains and service lines.

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

Black Hills Corporation (BKH) is expected to experience future revenue growth over the next 2-3 years driven by several key factors:

1. Growing Data Center Demand: Black Hills is actively pursuing and securing significant load from data centers. The company has a pipeline exceeding 3 gigawatts in demand and plans to serve 500 MW of data center load by 2029, which is anticipated to contribute over 10% to earnings per share starting in 2028. Additionally, there is potential for substantial earnings growth from a 1.8 GW project with AI developer Crusoe and Tallgrass.
2. Strategic Capital Investments and Infrastructure Expansion: The company has outlined a robust $4.7 billion capital plan for the 2025-2029 period, with $1 billion allocated for 2025. These investments prioritize customer growth, safety, system integrity, and modernization projects, including the Ready Wyoming transmission expansion project set for completion by year-end 2025 and the Lange II generation project expected in service in the second half of 2026. These strategic investments are designed to enhance system resiliency and support growing demand.
3. Favorable Regulatory Outcomes and Rate Recovery: Black Hills has a strong track record of successfully navigating the regulatory landscape, having completed seven rate reviews since early last year, including a recent settlement for its Nebraska natural gas utility. The company's regulatory strategy has enabled the recovery of over $1.3 billion in new system investments through multiple rate reviews, which directly contributes to revenue growth through new base rates and rider recovery.
4. Customer Growth within Existing Jurisdictions: Organic customer growth within Black Hills' service territories is a consistent driver of revenue. The company explicitly states that ongoing customer growth within its jurisdictions is a primary factor for its long-term earnings growth.
5. Merger with NorthWestern Energy: While anticipated to close in the second half of 2026, the planned merger with NorthWestern Energy is expected to create a stronger, more competitive entity with greater scale and an enhanced financial profile. This strategic move is intended to unlock additional value creation opportunities for customers and shareholders, potentially leading to expanded revenue streams through a broader market presence and synergies.

Share Repurchases

• Over the last three to five years (2020-2025), Black Hills Corporation has engaged in minor share repurchases, with quarterly amounts generally ranging from thousands to low millions of dollars.
• For instance, reported quarterly buybacks included $498.76K in Q4 2020, $731.24K in Q1 2021, $869.92K in Q1 2022, $784.95K in Q1 2023, and $1.19M in Q1 2025.

Share Issuance

• In 2025, Black Hills issued 3.7 million shares of new common stock, generating net proceeds of $220 million, which fulfilled its equity issuance target for the year.
• During 2024, the company issued 3.3 million shares, resulting in net proceeds of $181.6 million to meet its equity funding requirements.
• In June 2023, Black Hills Corporation authorized an at-the-market offering program allowing for the issuance of up to $400 million of common stock.

Outbound Investments

• Black Hills announced an all-stock, tax-free merger with NorthWestern Energy in August 2025, aiming to create a combined utility with an enterprise value of $15.4 billion; the merger is expected to close in the second half of 2026.
• In January 2025, Black Hills Energy Renewable Resources, a non-regulated subsidiary, acquired a renewable natural gas production facility in Dubuque, Iowa, marking the company's initial venture into this production segment.

Capital Expenditures

• Black Hills has a projected capital investment plan of $1.0 billion for 2025 and $4.7 billion for the 2025-2029 period, reflecting a 10% increase from its previous five-year plan.
• The primary focus of these expenditures is on customer growth, safety and system integrity projects, replacement and modernization programs, and enhancing electric generation and transmission infrastructure to support increasing demand, particularly from data centers.
• Key projects include the $350 million Ready Wyoming electric transmission expansion, anticipated to be completed by year-end 2025, and the $280 million Lange II 99 MW natural gas generation facility in South Dakota, projected to be in service by the second half of 2026.