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 and rider recovery offsetting higher costs.

• Served new all-time peak load at Wyoming Electric, reflecting robust large-load demand, and advanced agreements for a 1.8 GW data center project.

• Advanced strategic initiatives, including a pending all-stock merger with NorthWestern Energy, with most regulatory and shareholder approvals secured and Montana's decision expected by year-end 2026.

• Completed regulatory steps for wildfire liability protections in South Dakota and Wyoming.

• Maintained a solid financial position and credit ratings while executing a nearly $1 billion capital plan, including the 99 MW Lange II generation project.

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 $452.8M, up from $439.0M in Q2 2025; six-month revenue was $1.23B, slightly down from $1.24B year-over-year.

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

• Maintained strong liquidity with over $650 million available under the revolving credit facility at quarter end.

Outlook and guidance

• Reaffirmed 2026 adjusted EPS guidance of $4.25–$4.45, representing 6% growth at the midpoint over 2025, excluding merger-related costs and mark-to-market adjustments.

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

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

• Confident in delivering in the upper half of the 4%-6% long-term growth target, driven by new rates, large load demand, and a solid financial position.

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