Black Hills (BKH) investor relations material

Executive summary

• Reaffirmed 2026 adjusted EPS guidance of $4.25–$4.45, representing 6% year-over-year growth and confidence in achieving the upper half of the 4%–6% long-term EPS growth target.

• Maintained strong credit ratings and increased the dividend for the 56th consecutive year.

• Advanced strategic growth initiatives, including large load opportunities, regulatory progress, and major capital projects.

• Progressed on the pending merger with NorthWestern Energy, with all shareholder approvals, favorable regulatory settlements, and antitrust waiting period expiration; regulatory decisions pending in key states.

• Served over 1.37 million customers across eight states, focusing on operational excellence and transformation.

Financial highlights

• Q1 2026 GAAP EPS was $1.73, including $0.05 of merger-related costs; adjusted EPS was $1.79, down from $1.87 in Q1 2025.

• Revenue for Q1 2026 was $780.7 million, compared to $805.2 million in Q1 2025.

• Warm weather reduced demand by $0.18 per share year-over-year; O&M expenses (excluding merger costs) reduced by $0.10 per share.

• New rates and rider recovery contributed $0.24 per share; higher financing and depreciation costs offset some gains.

• Issued $41 million of equity in Q1; available liquidity ranged from $495 million to $518.2 million at quarter-end.

Outlook and guidance

• 2026 adjusted EPS guidance reaffirmed at $4.25–$4.45, with a long-term EPS growth target of 4–6% CAGR from 2026–2030.

• Five-year capital plan totals $4.7 billion, with $905–$906 million planned for 2026, focused on safety, reliability, and growth.

• Large load demand expected to contribute over 10% of consolidated EPS by 2028, reaching 600 MW by 2030.

• Guidance excludes the pending NorthWestern Energy merger, expected to close in the second half of 2026.