Black Hills Corporation · NYSE:BKH
Black Hills — Q1 2025 Earnings Presentation
29 slides from Black Hills's earnings presentation, May 8, 2025
Slide 1: 2025 First Quarter Review
2025 First Quarter Review May 8, 2025
Slide 2: Forward-looking Statements
Forward-looking Statements COMPANY This presentation includes “forward-looking statements” as defined by the Securities and Exchange Commission. We make these forward- INFORMATION looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Ac
Slide 3: Delivering Results for Stakeholders
Delivering Results for Stakeholders • Delivering on Reaffirmed earnings guidance and long-term growth rate Financial Commitments Maintained strong balance sheet to enable growth Enactment of Wyoming HB192 limits wildfire-related liability • Advancing Implemented new rates for Colorado Electr
Slide 4: Financial Outlook
Financial Outlook 2025 Reaffirmed guidance range of $4.00 to $4.20 EPS Long-term Targeting 4% to 6% growth* EPS Growth Dividend Targeting 55% to 65% payout ratio Capital Forecasting $1 billion in 2025 and $4.7 billion from 2025 to 2029 Investment * Average annual compound growth rate off 2023 base o
Slide 5: Investing for Customer Needs Drives Growth
Investing for Customer Needs Drives Growth Capital Investment Forecast of $4.7 billion 2025-2029* (millions) $1,200 Key Investment Categories $1,089 • Customer growth $1,000 $1,002 • Safety and system integrity projects $909 • Replacement and modernization $800 $859 $822 programs • Electric generati
Slide 6: Path to 1 GW of Data Center Load
Path to 1 GW of Data Center Load On Track to Deliver Data Center EPS Contribution of 10%+ in 2028 Strong and More than 1 GW of expected data center growing demand demand in the next decade Expect EPS contribution to more than double to Approximately 500 MW of expected demand to be served by year-end
Slide 7: Q1 2025 Financial Review
Q1 2025 Financial Review BKH | 2025 First Quarter Review | May 8, 2025 | 7
Slide 8: Q1 2025 EPS Drivers Compared to Q1 2024
Q1 2025 EPS Drivers Compared to Q1 2024 Q1 2024 Margin Weather MTM O&M Financing D&A Taxes & Other Q1 2025 $2.50 $0.11 $0.01 $2.25 $0.29 $2.00 $1.87 ($0.24) $0.04 $1.87 $1.75 ($0.17) ($0.04) $1.50 New rates and Q1 2025: rider recovery Higher employee- New shares Other +$0.04 $1.25 +$0.26* related ex
Slide 9: Solid Investment-Grade Financial Position
Solid Investment-Grade Financial Position Credit Ratings Liquidity and Cash Flow (millions) Moody’s S&P $1,000 $250 million accordion feature (with bank consent) FFO / Debt Baa2 BBB+ $750 $687 million of available liquidity on Long-term Target 14-15% Stable outlook Stable outlook $500 revolving cred
Slide 10: Dividend Track Record
Dividend Track Record 55 Consecutive Years of Annual Increases in 2025 and 83 Consecutive Years Paid* $2.70* 4.5% CAGR 2020-2025 1970 1980 1990 2000 2010 2020 2025* Annual Dividend Per Share * 2025 dividend represents current quarterly dividend at annualized rate BKH | 2025 First Quarter Review | Ma
Slide 11: Business Update
Business Update BKH | 2025 First Quarter Review | May 8, 2025 | 11
Slide 12: Operational Excellence
Operational Excellence Ready Wyoming Data Center Growth Transmission Expansion South Dakota Integrated Colorado Clean Energy Plan Resource Plan (99 MW Lange II) Legislation Wildfire Management Regulatory Progress PSPS Mitigation and Risk Mitigation Plan BKH | | 2025 BKH 2025First FirstQuarter Quarte
Slide 13: Building on a Decade of Data Center Success
Building on a Decade of Data Center Success Supportive Business Scalable Service Model High-quality Customers Environment • Proven track record of • Ideal Cheyenne • Access to renewable partnering with hyperscale attributes for data center resources data centers to support operations and their energ
Slide 14: Ready Wyoming Electric Transmission Initiative
Ready Wyoming Electric Transmission Initiative WYOMING SOUTH DAKOTA 260-mile, $350-million Expansion and Interconnection of Electric System in Wyoming • Maintain long-term cost stability for customers • Enhance system resiliency NEBRASKA • Expand access to power markets and provide flexibility as po
Slide 15: Ready Wyoming Project on Track for Year-end
Ready Wyoming Project on Track for Year-end All regulatory approvals received 100% of land rights-of-way procured First phase completed in late 2024 (~$40 million of ~$350 million project) On time for planned completion by year-end 2025 Cheyenne Area Northwest Line Northeast Line Infrastruct
Slide 16: Colorado Clean Energy Plan
Colorado Clean Energy Plan Adding New Renewable Resources to Reduce Emissions 80% by 2030* Clean Energy Plan Portfolio** • 100 MW solar build-transfer (utility owned) • 50 MW battery storage build-transfer (utility owned) • 200 MW solar power purchase agreement Key Milestones: Q4 2024 1H 2025
Slide 17: Serving South Dakota Electric Resource Needs
Serving South Dakota Electric Resource Needs* Adding 99 MW of Dispatchable Natural Gas Generation in 2026 (Lange II) Key Milestones: Q1 2025 2H 2025 2H 2026** Requested CPCN Obtain approval for CPCN Place new from Wyoming Public from Wyoming Public resource in Service Commission Servic
Slide 18: Regulatory Progress
Regulatory Progress • Implemented new rates for Colorado Electric • Advancing rate review and rider renewal for Kansas Gas • Requested rate review and rider renewal for Nebraska Gas • Received approval for insurance cost tracker for Wyoming Gas and Wyoming Electric Annual Filing Revenue New Jurisdic
Slide 19: Wildfire Risk Mitigation and Management
Wildfire Risk Mitigation and Management Committed to Our Strong Safety and Reliability Culture Wyoming HB192 signed into law, providing material Liability Engaging with industry liability protections when complying with commission- peers and legislators on Legislation public policy approved mitiga
Slide 20: Strong Long-term Growth Outlook
Strong Long-term Growth Outlook 4% to 6% Long-term EPS growth target* 55%-65% dividend payout target $4.7 billion 10%+ Capital investment 2025-2029 with Data center EPS contribution to incremental upside opportunities more than double by 2028 and continue into 2029 • Integrated pure-play utility pro
Slide 21: Questions
Questions BKH | 2025 First Quarter Review | May 8, 2025 | 21
Slide 22: Appendix
Appendix BKH | 2025 First Quarter Review | May 8, 2025 | 22
Slide 23: Capital Structure
Capital Structure ($ in millions) Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Capitalization Short-term Debt 342 335 501 1,061 525 525 1,125 600 600 600 18 134 360 Long-term Debt 4,128 4,130 4,131 3,607 3,954 3,956 3,800 3,801 3,803 4,247 4,249 4,250 3,
Slide 24: EPS, as Adjusted Normalized for Weather and Mark-to-Market
EPS, as Adjusted Normalized for Weather and Mark-to-Market* EPS, as adjusted* $4.25 Q1 Q2 Q3 Q4 Full Year $2.00 2020* $1.59 $0.33 $0.58 $1.23 $3.73 $4.00 2021 $1.54 $0.40 $0.70 $1.11 $3.74 $4.10 $1.93 $4.02 2022 $1.82 $0.52 $0.54 $1.11 $3.97 $1.82 $3.75 2023 $1.73 $0.35 $0.67 $1.17 $3.91 $1.73 $1.72
Slide 25: 2025 Earnings Guidance Assumptions
2025 Earnings Guidance Assumptions Black Hills reaffirmed its guidance for 2025 EPS available for common stock to be in the range of $4.00 to $4.20, based on the following assumptions issued on Feb. 5, 2025: • Normal weather conditions within our utility service territories; • Constructive and timel
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Net Income Available for Common Stock, as adjusted We have provided non-GAAP earnings data reflecting adjustments for special items as specified in the GAAP to non-GAAP reconciliation table in this presentation. Net income available for common stock, as adjusted, is defin
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Earnings, as adjusted (in millions) Earnings Per Share, as adjusted 2025 2025 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 YTD YTD Net income available for common stock $227.6 $236.7 $258.4 $262.2 $273.1 $134.3 $ 3.65 $ 3.74 $ 3.97 $ 3.91 $ 3.91 $ 1.87 (GAAP) Adjustm
Slide 28: Strategic Priorities
STRATEGIC PRIORITIES Agility Communication Creating Customer Integrity Leadership Partnership Respect Safety Value Service BKH | 2025 First Quarter Review | May 8, 2025 | 28
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