Black Hills Corporation · NYSE:BKH
Black Hills — Q3 2025 Earnings Presentation
29 slides from Black Hills's earnings presentation, Nov 6, 2025
Slide 1: 2025 Third Quarter Review
2025 Third Quarter Review Nov. 6, 2025
Slide 2: Forward-looking Statements
Forward-looking Statements MERGER-RELATED INFORMATION COMPANY This presentation 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 No Offer or Solicitation INFORMATION provide
Slide 3: Delivering on Our Commitments to Stakeholders
Delivering on Our Commitments to Stakeholders Reaffirmed full-year adjusted earnings guidance Delivering on Financial Completed 2025 equity issuance of $220 million* Commitments and debt refinancing Maintained strong balance sheet to enable growth Reached settlement for Nebraska Gas rate rev
Slide 4: Financial Outlook
Financial Outlook 2025 Reaffirmed adjusted earnings guidance range of $4.00 to $4.20 Adjusted Reflects 5% year-over-year growth at midpoint EPS1 Long-term Targeting 4% to 6% growth EPS Growth2 Plan to deliver in upper half of range starting in 2026 Dividend Targeting 55% to 65% payout ratio Capital
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 • Customer growth $1,000 $1,089 $1,002 • Safety and system integrity projects $909 • Replacement and modernization programs $800 $859 $822 • Electric generati
Slide 6: Merger with NorthWestern Update
Merger with NorthWestern Update Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Merger announced File Regulatory Applications / Regulatory Approval Process: August 19 FERC, SEC, FTC/DOJ (HSR), MPSC, NPSC, SDPUC File Form S-4/Joint Proxy Statement Black Hills and NorthWestern Shareholder Meetings Dev
Slide 7: Q3 2025 Financial Review
Q3 2025 Financial Review BKH | 2025 Third Quarter Review | Nov. 6, 2025 | 7
Slide 8: Q3 2025 EPS Drivers Compared to Q3 2024
Q3 2025 EPS Drivers Compared to Q3 2024 Taxes & Q3 2025 Merger Q3 2025 Q3 2024 Margin Weather O&M Financing D&A Other (GAAP) Costs (Adjusted)* $0.55 $0.19 $0.50 $0.11 $0.45 $0.45 ($0.07) $0.40 $0.35 ($0.08) $0.35 $0.34 ($0.03) ($0.02) ($0.01) Transaction $0.30 costs New rates Q3 2025: Merger- Intere
Slide 9: YTD 2025 EPS Drivers Compared to YTD 2024
YTD 2025 EPS Drivers Compared to YTD 2024 Taxes & YTD 2025 Merger YTD 2025 YTD 2024 Margin Weather O&M Financing D&A Other (GAAP) Costs (Adjusted)* $3.50 $0.07 $0.67 $3.00 ($0.37) $0.10 $2.68 $2.52 $0.03 $2.58 $2.50 ($0.25) Merger-related ($0.09) costs Transaction New rates YTD 2025: ($0.11) Interes
Slide 10: 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 $621 million of available liquidity on Long-term Target 14-15% Stable outlook Stable outlook $500 revolving cred
Slide 11: Strategic Growth Trajectory on Track
Strategic Growth Trajectory on Track Delivering on Adjusted EPS* Guidance and Long-term Growth 2023 2024 2025 2026-2029 2026-2029 $4.25 4%-6% EPS Growth Key Variances versus Normal target off 2023 guidance Significant O&M measures $4.20 midpoint of $3.75 Key Variances versus Normal Mild weather, gen
Slide 12: 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 Third Quarter Review | No
Slide 13: Business Update
Business Update Ready Wyoming Data Center Growth Transmission Expansion South Dakota Integrated Resource Plan Colorado Clean Energy Plan (99 MW Lange II) Legislation Wildfire Management Regulatory Progress PSPS and Risk Mitigation Mitigation Plan BKH | 2025 Third Quarter Review | Nov. 6, 2025 | 13
Slide 14: Industry-Leading Reliability
Industry-Leading Reliability 2024 Overall System SAIDI (Excluding Major Events)* 450 400 350 Fourth Quartile 300 250 Third Quartile 200 Second Quartile 150 First Quartile 100 50 0 WYE SDE COE EEI Utilities * System Average Interruption Duration Index (SAIDI) is a measure of reliability calculated as
Slide 15: Growing Data Center Pipeline of 3 GW+
Growing Data Center Pipeline1 of 3 GW+ Strong and growing data center demand Flexible service model • Innovative tariff 2 providing flexibility for Current Plan Includes: our customers’ unique needs with • Data center load of 500 MW by 2029 a mix of: with minimal capital investment Market access (
Slide 16: Ready Wyoming Project on Track for Year-end
Ready Wyoming Project on Track for Year-end All regulatory approvals received and 100% of land rights-of-way procured First phase completed in late 2024 (~$40 million of ~$350 million project; recovery through Wyoming transmission rider) On track for project completion by year-end 2025 Cheyenn
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) Q1 2025 – Requested CPCN from Wyoming Public Service Commission Q2 2025 – Obtained approval for CPCN from Wyoming Public Service Commission Q3 2025 – Commenced construction 2H
Slide 18: Colorado Clean Energy Plan
Colorado Clean Energy Plan Adding New Renewable Resources to Reduce Emissions 80% by 2030* Clean Energy Plan Portfolio approved in 2024 • Received Colorado Public Utilities Commission approval of settlement for 50 MW battery storage build-transfer (utility-owned) CPCN request; expect to place in ser
Slide 19: Regulatory Progress
Regulatory Progress • Received approval of rate review, rider renewal and insurance tracker for Kansas Gas • Reached settlement on rate review and rider renewal for Nebraska Gas; final decision on settlement pending • Preparing to file rate review requests for Arkansas Gas and South Dakota Electric
Slide 20: Strong Confidence in Long-term Growth Outlook
Strong Confidence in Long-term Growth Outlook 4% to 6% Long-term EPS growth target 1 In upper half of range starting in 2026 +4.2% Dividend Yield 2 55%-65% dividend payout target $4.7 billion 10%+ Capital investment 2025-2029 with Data center EPS contribution growing to incremental upside opportunit
Slide 21: Questions
Questions BKH | 2025 Third Quarter Review | Nov. 6, 2025 | 21
Slide 22: Appendix
Appendix BKH | 2025 Third Quarter Review | Nov. 6, 2025 | 22
Slide 23: Ready Wyoming 260-mile, $350-million Electric Transmission Expansion on Track for Year-End
Ready Wyoming 260-mile, $350-million Electric Transmission Expansion on Track for Year-End WYOMING Benefits of Expansion and Interconnection of Electric System in Wyoming • Maintain long-term cost stability for customers • Enhance system resiliency SOUTH DAKOTA • Expand access to power markets and p
Slide 24: Capital Structure
Capital Structure ($ in millions) Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Capitalization Short-term Debt 501 1,061 525 525 1,125 600 600 600 18 134 360 424 126 Long-term Debt 4,131 3,607 3,954 3,956 3,800 3,801 3,803 4,247 4,249 4,250 3,952 3,952 4,
Slide 25: Adjusted EPS Normalized for Weather and Mark-to-Market
Adjusted EPS Normalized for Weather and Mark-to-Market* Adjusted EPS* Q1 Q2 Q3 Q4 FY / YTD $4.25 2020* $1.59 $0.33 $0.58 $1.23 $3.73 $2.00 2021 $1.54 $0.40 $0.70 $1.11 $3.74 $4.00 2022 $1.82 $0.52 $0.54 $1.11 $3.97 $4.10 $1.93 2023 $1.73 $0.35 $0.67 $1.17 $3.91 $4.02 $1.82 $3.75 2024 $1.87 $0.33 $0.
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted earnings and Adjusted EPS As noted in this presentation, in addition to presenting its earnings information in conformity with Generally Accepted Accounting Principles (GAAP), the company has provided non-GAAP Adjusted earnings and Adjusted EPS, which reflect adj
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Earnings (in millions) Adjusted Earnings Per Share Q3 2025 Q3 2025 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2025 YTD 2025 YTD Net income available for common stock $ 227.6 $ 236.7 $ 258.4 $ 262.2 $ 273.1 $ 24.9 $ 186.6 $ 3.65 $ 3.74 $ 3.97 $ 3.91 $ 3.91
Slide 28: Strategic Priorities
STRATEGIC PRIORITIES Agility Communication Creating Customer Integrity Leadership Partnership Respect Safety Value Service BKH | 2025 Third Quarter Review | Nov. 6, 2025 | 28
Slide 29: Slide 29