Black Hills Corporation · NYSE:BKH
Black Hills — Merger or Acquisition (August 2025)
16 slides from Black Hills's merger presentation, Aug 19, 2025
Slide 1: Creating a premier regional regulated electric and natural gas utility company
Creating a premier regional regulated electric and natural gas utility company + Black Hills Corp. and NorthWestern Energy to Combine
Slide 2: Forward-Looking Statements
Forward + 2 -Looking Statements Information in this communication, other than statements of historical facts, may constitute forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Th
Slide 3: Today's Speakers
+ 3 Kimberly Nooney Senior Vice President and Chief Financial Officer Today’s Speakers Linn Evans President and Chief Executive Officer Crystal Lail Chief Financial Officer Brian Bird President and Chief Executive Officer Black Hills Corp. NorthWesternEnergy Marne Jones Senior Vice President and Chi
Slide 4: Transaction Structure
+ 4 Transaction Structure • Tax free, all-stock merger; combined market cap of $7.8 bn1 • NorthWestern shareholders to receive 0.98 shares of Black Hills for each outstanding NorthWestern share Pro Forma Ownership2 • Black Hills shareholders: ~56% • NorthWestern shareholders: ~44% Leadership • Brian
Slide 5: Pure-Play Utility Platform Across Eight Contiguous States
+ 5 Black Hills Gas Utility Service Territory Black Hills HQ Black Hills Electric Utility Service Territory NorthWestern HQ NorthWestern Gas Utility Service Territory NorthWestern Electric Utility Service Territory MT 31% FERC 10% SD 17% CO 13% WY 9% AR 7% KS 3% IA 3% NE 8% Base Capital Plan Breakdo
Slide 6: Combination Presents Compelling Strategic and Financial Rationale
Combination Presents Compelling + 6 Strategic and Financial Rationale Increased scale across contiguous service territory enhances diversification, resulting in a more resilient utility to safely, reliably, and cost-effectively meet customers’ growing energy needs Increases combined company's long t
Slide 7: Enhanced Scale Through Strategic Combination
Enhanced Scale Through Strategic Combination + 7 Increase in scale unlocks efficiencies, incremental growth opportunities, and potential multiple expansion Market Cap ($bn)1 2024 Rate Base ($bn) Customers (mm) (1) Market data as of 18-Aug-2025 $10.8 $9.0 $7.8 $6.7 $4.6 $4.4 $4.4 $4.4 $3.4 $3.3 $3.0
Slide 8: Diversified, Regulated Combined Utility Platform
+ 8 MT 29% NE 16% CO 15% SD 9% AR 9% WY 8% IA 8% KS 6% C&I 17% Residential 83% C&I 10% Residential 90% Diversified, Regulated Combined Utility Platform Customers ~2.1 mm Total Broad and regionally diverse service territory with a well-balanced customer mix 8 ~1.4 mm Gas ~0.7 mm Electric High concent
Slide 9: Delivering Benefits to Stakeholders
Delivering Benefits to Stakeholders + 9 Continued commitment to delivering safe, reliable, and cost-effective energy consistent with how both companies operate today Continue to be an employer of choice, attracting and maintaining a highly skilled workforce, while providing enhanced opportunities Ma
Slide 10: Bringing Together Best-in-Class Customer-Focused Operators
Bringing Together Best + 10 -in-Class Customer-Focused Operators Combining two demonstrated track records of operational excellence across key safety and reliability metrics, while maintaining better than national average costs to customers Above industry average SAIDI (System Average Interruption D
Slide 11: Customer-Centric Investments Drive Growth
Customer + 11 -Centric Investments Drive Growth Large, combined capital program with significant additional upside potential Incremental Opportunities to Accelerate Growth Electric Transmission 20% Electric Distribution 20% Gas T&D 36% Generation 16% Other ~$7.4bn 8% 2025-2029 >75% Focused on T&D Th
Slide 12: Pro Forma Total Return Proposition
Pro Forma Total Return Proposition + 12 Pro Forma Common Stock Dividend Both companies to continue existing dividend policies through closing Pro forma dividend growth expected to balance competitive dividend growth with incremental, accretive organic growth opportunities + 12 Pro Forma EPS Profile
Slide 13: Committed to Solid Investment Grade Financial Profile
Committed to Solid Investment Grade Financial Profile + 13 Enhanced credit profile Strong balance sheet health 100% stock transaction; no debt issuance related to transaction Strong investment grade credit metrics target Low-risk utility cash flows with highly diversified regulatory environment No e
Slide 14: Meaningful Value Uplift Potential
Meaningful Value Uplift Potential + 14 Note: As of 18-Aug-2025 P/E Uplift Potential 2027E P/E Multiple (x) 13.3 x 13.7 x Material increase in scale improves efficiencies and can unlock incremental growth opportunities Larger equity market capitalization with increased liquidity EPS accretive to both
Slide 15: Required Approvals and Timing
Required Approvals and Timing + 15 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Transaction Announcement File Regulatory Applications / Regulatory Approval Process: FERC, SEC, DOJ, MPSC, NPSC, SDPUC File Joint Proxy Statement Black Hills and NorthWestern Shareholder Meetings Develop Transition and Integr
Slide 16: Key Takeaways
+ 16 Strategic combination represents a highly attractive value creation opportunity for both companies Increases Scale Position and Growth Increases the combined company target EPS growth rate to 5-7%, supported by the doubling of each company’s rate base to total of ~$11 bn with significant growth