Black Hills Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income available for common stock was $41.0 million for the three months ended Sept. 30, 2026, compared to $24.9 million in the prior year period; year-to-date GAAP net income was $210.2 million compared to $186.6 million.
• GAAP diluted EPS was $0.54 for the quarter and $2.76 year-to-date, compared to $0.34 and $2.58, respectively, in the prior year.
• Adjusted earnings were $43.6 million for the quarter and $220.2 million year-to-date, compared to $32.5 million and $194.2 million in the prior year periods.
• Adjusted diluted EPS was $0.57 for the quarter and $2.89 year-to-date, compared to $0.45 and $2.68, respectively, in the prior year.
• Total revenue was $466.1 million for the quarter and $1,699.6 million year-to-date, compared to $430.2 million and $1,674.5 million in the prior year periods.
• Operating expenses were $368.0 million for the quarter and $1,302.5 million year-to-date, compared to $351.5 million and $1,308.4 million in the prior year periods.
• Net interest expense was $50.1 million for the quarter and $153.7 million year-to-date, compared to $49.4 million and $149.6 million in the prior year periods.
• Income tax expense was $5.8 million for the quarter and $28.5 million year-to-date, compared to $4.0 million and $26.5 million in the prior year periods.
• Electric Utilities operating income increased $14.5 million for the quarter and $31.4 million year-to-date compared to the prior year.
• Gas Utilities operating income increased $4.2 million for the quarter and $5.4 million year-to-date compared to the prior year.
• Corporate and Other operating loss increased $5.8 million year-to-date, primarily due to higher merger-related costs.

Guidance and Future Outlook:

• Reaffirmed 2026 adjusted EPS guidance in the range of $4.25 to $4.45 per share, excluding merger-related costs.
• Guidance assumes normal weather, constructive regulatory outcomes, an effective tax rate of approximately 14%, and equity issuance between $50 million and $70 million.
• Expects to deliver in the upper half of its 4% to 6% long-term EPS growth target supported by the current 2026 to 2030 plan.
• Anticipates earnings from the Google data center project to begin mid-2027, increasing to approximately $150 million of net income in 2030.
• Plans to provide a comprehensive update for the 2027 to 2031 period as part of the year-end earnings release.

Business Segments and Product Lines:

• Executed definitive agreements to serve Google's planned data center in Cheyenne, Wyoming, with terms through 2048, involving $1.8 billion in new company-owned generation (564 MW) and management of 2.1 GW of third-party contracted resources.
• Requested Certificates of Public Convenience and Necessity (CPCNs) for $686 million of transmission expansion investments to serve large-load opportunities in Wyoming.
• Completed rate review requests for South Dakota Electric ($27.4 million new annual revenue), Wyoming Electric ($4.0 million new annual revenue), and Arkansas Gas ($17.9 million new annual revenue).
• Lange II generation facility (99 MW, $320 million) is on track to be in service in the fourth quarter of 2026.
• Wyoming Electric recorded four new all-time customer load peaks in 2026, with the most recent peak of 439 MW on July 20, 2026, representing a 16% increase over the 2025 peak.
• Colorado Electric filed its 2026 Clean Energy Plan proposing 100 MW of wind energy, 200 MW of battery storage, and 125 MW of firm natural gas generation to meet an 80% emissions reduction target by 2030.
• Wyoming Electric filed an Integrated Resource Plan identifying a 95 MW capacity shortfall beginning in 2027, recommending 36 MW of new natural gas engines and 50 MW of battery storage.
• Issued 1.0 million shares of new common stock under its at-the-market equity offering program for net proceeds of $69 million year-to-date.

Market and Competitive Landscape:

• Wyoming Electric's large-load customers under the LPCS and BCIS Tariffs drove significant increases in industrial quantities sold.
• The company serves more than 1.37 million natural gas and electric utility customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.
• Significant upside to the current five-year plan is driven by large-load opportunities, including the Google data center project and associated transmission expansions.

Risks and Challenges:

• Pending merger with NorthWestern Energy is awaiting final decision from the Montana Public Service Commission to close by year-end 2026.
• Forward-looking statements are subject to risks including regulatory approval delays, execution of capital investment programs, access to capital markets, inflation, interest rates, commodity prices, and supply chain constraints.
• Specific risks include severe weather, wildfire, cybersecurity incidents, and the ability to serve customer growth opportunities accurately.
• The Google data center project faces risks related to construction, financing, operational milestones, regulatory approvals, and customer development schedules.

Management Commentary and Tone:

• Linn Evans, President and CEO, stated the company reported "excellent third-quarter results" and achieved "significant progress on our strategic initiatives."
• Management expressed excitement regarding the Google data center agreement and noted the project represents significant upside to the current plan.
• Evans highlighted that strong execution supports delivering in the upper half of the long-term EPS growth target.
• Management noted that adjusted EPS results benefited from new rates, rider recovery, and customer growth, which offset higher operating expenses and financing/depreciation costs.

Other Key Points:

• The Board of Directors approved a quarterly dividend of $0.703 per share payable on Dec. 1, 2026, marking 56 consecutive years of increases.
• South Dakota Electric received a four-year rate moratorium period until August 2030, excluding additional regulatory mechanisms.
• Wyoming Electric filed a request for a new Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) tariff to recover transmission investment costs.
• The company incurred merger-related costs of $0.03 per share for the quarter and $0.13 per share year-to-date.
• The 2026 Adjusted EPS guidance excludes the expected merger with NorthWestern Energy.