Black Hills (BKH) investor relations material

Executive summary

• Achieved strong Q2 2026 results with net income of $38.2M and adjusted EPS of $0.54, up from $0.38 year-over-year, driven by new rates, rider recovery, and robust large-load demand, while maintaining a solid financial position and advancing a nearly $1 billion capital plan.

• Progressed on the pending merger with NorthWestern Energy, securing six of seven required approvals, with closing expected by year-end 2026, pending final Montana approval.

• Advanced regulatory agenda with multiple rate reviews and filings across several states, and completed regulatory steps for wildfire liability protections in South Dakota and Wyoming.

• Significant growth in Wyoming Electric, with a 16% increase in peak load year-over-year and a 183% increase since 2005, supported by large data center demand.

• Advanced agreements for a 1.8 GW data center project in Wyoming, with up to $377 million in refundable advances received.

Financial highlights

• Q2 2026 GAAP EPS was $0.50, including $0.04 of merger-related costs; adjusted EPS was $0.54, up from $0.38 in Q2 2025.

• Year-to-date GAAP EPS was $2.23, with adjusted EPS at $2.33 versus $2.24 in the first half of 2025.

• Q2 2026 revenue was $452.8 million, up from $439.0 million in Q2 2025; six-month revenue was $1.23 billion, slightly down from $1.24 billion year-over-year.

• Delivered $0.21 per share of new rates and rider recovery in Q2, offsetting $0.12 of higher financing and depreciation costs.

• Operating income for Q2 2026 was $97.0 million, up from $82.5 million year-over-year.

Outlook and guidance

• Reaffirmed 2026 adjusted EPS guidance range of $4.25–$4.45, representing 6% growth at midpoint over 2025, and expects to deliver in the upper half of the 4%-6% long-term growth target.

• Guidance assumes normal weather, constructive regulatory outcomes, O&M expense growth of ~3.5%, equity issuance of $50–$70 million, and a 14% effective tax rate.

• Capital investment forecast of $4.7 billion from 2026 to 2030, including $0.9 billion in 2026.

• Dividend increased for the 56th consecutive year, targeting a 55%-65% payout ratio.

• Expects to close NorthWestern Energy merger by year-end 2026, pending final regulatory approval.