Black Hills Corporation
11/05/2026 | Press release | Distributed by Public on 11/05/2026 10:54
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussions should be read in conjunction with the Notes contained herein and Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in our 2025 Annual Report on Form 10-K.
Executive Summary
We are a customer-focused energy solutions provider with a mission of Improving Life with Energy for more than 1.37 million customers and 800+ communities we serve. Our aspiration is to be the trusted energy partner across our growing eight-state footprint, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Our strategy is centered on four priorities: People & Culture-build a team that wins together, Operational Excellence-relentlessly deliver on our commitment to serve our customers, Transformation-be a simple and connected company and Growth-grow to be a dominant long-term energy provider.
We conduct our business operations through two operating segments: Electric Utilities and Gas Utilities. Certain unallocated corporate expenses that support our operating segments are presented as Corporate and Other. We conduct our utility operations under the name Black Hills Energy predominantly in rural areas of the Rocky Mountains and Midwestern states. We consider ourselves a domestic electric and natural gas utility company.
We have provided energy and served customers for 143 years, since the 1883 gold rush days in Deadwood, South Dakota. Throughout our history, the common thread that unites the past to the present is our commitment to serve our customers and communities. By being responsive and service focused, we can help our customers and communities thrive while meeting rapidly changing customer expectations.
Recent Developments
Pending Merger with NorthWestern
On August 18, 2025, we entered into the Merger Agreement with NorthWestern and Merger Sub. We anticipate the transaction closing by year-end 2026, subject to receipt of a satisfactory approval from the MPSC. See Note 14 of the Condensed Notes to Consolidated Financial Statements for further information regarding the pending Merger.
Google Data Center Project
In September 2026, the Company entered into long-term agreements with Google and other third-party partners to serve a planned data center project to be constructed in Cheyenne, Wyoming. The project is contracted to be served through a total resource mix of 2.7 GW, including reserve margins, and is expected to begin taking energy service in late 2027 and ramp to the data center's projected peak load by the end of 2030. We expect to provide up to 590 MW of grid-connected energy service through company-owned generation and market energy. In addition, we expect to manage the output of approximately 2.1 GW of third-party contracted resources through a privately managed microgrid under the Company's LPCS tariff.
To provide 590 MW of grid-connected service, the Company expects to invest approximately $1.8 billion to construct 564 MW (nameplate capacity) of new company-owned natural gas generation between 2027 and 2029 through a non-regulated affiliate, which will be located at the Company's existing CPGS facility. The remaining 26 MW is expected to be supplied through a combination of market energy purchases and retail utility service provided under the Company's applicable industrial tariff.
The Company expects to finance the approximately $1.8 billion of generation investment through a combination of project-generated cash flow and debt and equity instruments with a focus on earnings accretion while maintaining solid investment-grade credit ratings. In connection with the development of the project, the Company previously disclosed customer-funded refundable advances received pursuant to the parties' generation reservation agreement to support procurement of long-lead generation equipment. During the third quarter of 2026, the parties amended the generation reservation agreement to increase the permitted advances to $398.8 million and extend the repayment date to June 30, 2027. The Company expects to reimburse those advances by their June 30, 2027 maturity date.
The agreements include contractual protections throughout the 2048 contract term intended to prevent cost shifting to existing retail customers, including:
•
Cost pass-through mechanisms - protect customers from costs associated with the planned data center while protecting returns from inflation, interest rate volatility, and other cost pressures;
•
Stranded asset risk protection - provides for full recovery of all generation capital investment over the contract term, protecting customers against risk of stranded assets;
•
Early termination protection - safeguard customers and shareholders should the project terminate prior to the end of the agreements' term; and
•
Credit protections - strong collateral and financial assurance requirements back the data center's long-term commitments.
The Company has obtained or initiated key regulatory approvals for the project during 2026, including a substation CPCN approval, the filing of an industrial siting permit for the CPGS expansion, and approval of an air quality permit and an industrial siting permit for the CPGS expansion. Additionally, the Company is advancing transmission expansion opportunities through regulatory filings to serve this project and other regional large-load opportunities. See Business Segment Recent Developments section below with further details on these transmission expansion filings.
Business Segment Recent Developments
Electric Utilities
•
See Note 2 of the Condensed Notes to Consolidated Financial Statements for recent rate review activity for South Dakota Electric and Colorado Electric.
•
In 2026 to date, Wyoming Electric requested approval from the WPSC for a new LCTCAM tariff and CPCNs for two transmission expansion projects with total investment of $686 million to serve the growing energy needs of Wyoming Electric's large-load customers.
o
On June 19, 2026, Wyoming Electric filed a request with the WPSC to establish an LCTCAM tariff. The LCTCAM tariff provides a framework to directly recover transmission investment costs from LPCS customers who are served by, and benefit from, the transmission facilities. The proposed mechanism is designed to ensure that customers not directly served by those facilities are protected from bearing those costs. A WPSC decision is expected in the first quarter of 2027.
o
On September 1, 2026, Wyoming Electric filed a CPCN with the WPSC for its South Cheyenne Transmission Project. The $80 million project includes new substations and nearly 15 miles of transmission lines and upgrades to be in-service in multiple phases in late 2027 through 2028. Recovery is expected to be requested under the LCTCAM, which is currently pending with the WPSC. A WPSC decision on the South Cheyenne Transmission Project CPCN request is expected by mid-2027.
o
On November 2, 2026, Wyoming Electric filed a request with the WPSC for a CPCN for its Aeolus Transmission Project to expand transmission capacity across the Cheyenne region and key interconnection points. The $606 million project includes two new 230-kV transmission lines, with upgrade capabilities to 345-kV, spanning approximately 125 miles. Pending approval by the WPSC, completion of the project is expected by mid-2029. Recovery is expected to be requested under the LCTCAM, which is also pending approval from the WPSC. A WPSC decision on the Aeolus Transmission Project CPCN request is expected by mid-2027.
•
During the third quarter of 2026, South Dakota Electric continued with construction of its Lange II project which is anticipated to be in service by year-end 2026. The addition of these resources will replace generation facilities planned for retirement and support updated planning reserve margin requirements. On August 4, 2026, South Dakota Electric filed an application with the SDPUC for a PIPR rider which requests recovery of $320 million of Lange II project costs outside of a general rate review. If approved by the SDPUC, the rider is anticipated to be effective on December 1, 2026.
•
On September 11, 2026, Colorado Electric filed its 2026 Clean Energy Plan with the CPUC. The updated plan builds on Colorado Electric's 2022 Clean Energy Plan. The plan includes a 25-year planning horizon and reliably achieves Colorado's statutory requirement to reduce greenhouse gas emissions by 80% by 2030, based on 2005 levels. To meet these objectives, the plan proposes the addition of 100 MW of wind energy, 200 MW of battery energy storage systems and 125 MW of firm, dispatchable natural gas-fired generation.
•
On March 12, 2026, the state of South Dakota enacted comprehensive wildfire liability mitigation legislation (Senate Bill 36), effective July 1, 2026. The legislation provides material liability protections for a utility that complies with its published wildfire mitigation plan. On July 2, 2026, South Dakota Electric filed its WMP with the SDPUC. Under Senate Bill 36, a utility's WMP is valid and current if it is on file and all annual reports are timely filed with the SDPUC. In 2025, the state of Wyoming enacted similar legislation. In November 2025, Wyoming Electric filed its WMP with the WPSC, which was approved on July 9, 2026.
•
On June 30, 2026, Wyoming Electric submitted an IRP to the WPSC. The IRP, which is based on 20-year planning period including a near-term planning period through 2033, identified a near-term capacity shortfall of 95 MW beginning in 2027. Based on its forecasts and analysis, Wyoming Electric recommends the addition of natural gas-fired generation, battery storage assets and energy market purchases to meet the identified resource need. Wyoming Electric's IRP does not address any LPCS Tariff capacity needs, which are handled separately under customer-specific agreements.
•
In 2026, Wyoming Electric has set multiple all-time records for System Peak Demand driven by growth in large-load data center demand. The most recent all-time peak of 439 MW was set on July 20, 2026. Prior to 2026, the previous all-time peak was 379 MW set on June 20, 2025.
•
In 2025, Colorado Electric received CPUC approval for the addition of 250 MW of new renewable generation resources in support of its Clean Energy Plan, which included a 50-MW utility-owned battery storage project and a 200-MW solar PPA. During the fourth quarter of 2025, Colorado Electric commenced construction of the 50-MW battery storage project. The project is expected to be completed by year-end 2027. On February 18, 2026, Colorado Electric entered into a 200-MW solar PPA. See Note 3 of the Condensed Notes to Consolidated Financial Statements for additional information regarding the PPA.
Gas Utilities
•
See Note 2 of the Condensed Notes to Consolidated Financial Statements for recent rate review activity for Arkansas Gas, Kansas Gas and Nebraska Gas.
Corporate and Other
•
See Note 5 of the Condensed Notes to Consolidated Financial Statements for information regarding recent financing activities.
•
During the second quarter of 2026, we published our 2025 Corporate Sustainability Report, highlighting our environmental, social and governance impacts and our progress on major projects and climate goals. We reported a 43% reduction in electric utility emissions intensity compared to 2005, driven by the addition of renewable and natural gas resources and the retirement of aging power plants. We also reduced natural gas utility emissions by 25% since 2022, including a 53% reduction from transfer stations, reflecting progress toward our net-zero by 2035 goal through expanded leak detection and repair efforts.
Results of Operations
Certain lines of business in which we operate are highly seasonal, and revenue from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements. In particular, the normal peak usage season for our Electric Utilities is June through August while the normal peak usage season for our Gas Utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment's peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and nine months ended September 30, 2026, and 2025, and our financial condition as of September 30, 2026, and December 31, 2025, are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period or for the entire year.
All amounts are presented on a pre-tax basis unless otherwise indicated. Minor differences in amounts may result due to rounding.
Consolidated Summary and Overview
|
Three Months Ended |
Nine Months Ended |
|||||||||||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
2026 |
2025 |
2026 vs 2025 Variance |
|||||||||||||
|
(in millions, except per share amounts) |
||||||||||||||||||
|
Operating income (loss): |
||||||||||||||||||
|
Electric Utilities |
$ |
76.9 |
$ |
62.4 |
$ |
14.5 |
$ |
197.1 |
$ |
165.7 |
$ |
31.4 |
||||||
|
Gas Utilities |
25.0 |
20.8 |
4.2 |
213.1 |
207.7 |
5.4 |
||||||||||||
|
Corporate and Other (a) |
(3.8 |
) |
(4.5 |
) |
0.7 |
(13.1 |
) |
(7.3 |
) |
(5.8 |
) |
|||||||
|
Operating income |
98.1 |
78.7 |
19.4 |
397.1 |
366.1 |
31.0 |
||||||||||||
|
Interest expense, net |
(50.1 |
) |
(49.4 |
) |
(0.7 |
) |
(153.7 |
) |
(149.6 |
) |
(4.1 |
) |
||||||
|
Other income, net |
1.3 |
0.6 |
0.7 |
2.2 |
1.1 |
1.1 |
||||||||||||
|
Income tax (expense) |
(5.8 |
) |
(4.0 |
) |
(1.8 |
) |
(28.5 |
) |
(26.5 |
) |
(2.0 |
) |
||||||
|
Net income |
43.5 |
25.9 |
17.6 |
217.1 |
191.1 |
26.0 |
||||||||||||
|
Net income attributable to non-controlling interest |
(2.5 |
) |
(1.0 |
) |
(1.5 |
) |
(6.9 |
) |
(4.5 |
) |
(2.4 |
) |
||||||
|
Net income available for common stock |
$ |
41.0 |
$ |
24.9 |
$ |
16.1 |
$ |
210.2 |
$ |
186.6 |
$ |
23.6 |
||||||
|
Weighted average common shares outstanding, Diluted |
76.4 |
72.9 |
3.5 |
76.1 |
72.4 |
3.7 |
||||||||||||
|
Total earnings per share of common stock, Diluted |
$ |
0.54 |
$ |
0.34 |
$ |
0.20 |
$ |
2.76 |
$ |
2.58 |
$ |
0.18 |
||||||
(a)
Includes inter-segment eliminations.
Three Months Ended September 30, 2026, Compared to the Three Months Ended September 30, 2025:
•
Electric Utilities' operating income increased $14.5 million primarily due to new rates driven by the South Dakota Electric rate review (interim rates effective August 2026) and rider recovery driven by Wyoming Electric's Ready Wyoming project, favorable weather and increased retail customer usage.
•
Gas Utilities' operating income increased $4.2 million primarily due to new rates and rider recovery driven by the Nebraska Gas rate review, increased retail customer usage, increased transportation volumes, and favorable weather partially offset by higher operating expenses.
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025:
•
Electric Utilities' operating income increased $31.4 million primarily due to new rates and rider recovery driven by the Colorado Electric and South Dakota Electric rate reviews and Wyoming Electric's Ready Wyoming project partially offset by higher operating expenses.
•
Gas Utilities' operating income increased $5.4 million primarily due to new rates and rider recovery driven by the Nebraska Gas and Kansas Gas rate reviews, increased transportation volumes and customer growth partially offset by unfavorable weather and higher operating expenses.
•
Corporate and Other operating loss increased $5.8 million primarily due to higher costs related to the pending Merger and the prior year consolidation of our Captive insurance cell.
•
Net interest expense increased $4.1 million primarily due to higher rates on higher debt balances.
•
Income tax expense increased $2.0 million due to higher pre-tax income partially offset by a lower effective tax rate primarily driven by increased current year tax benefits from federal PTCs associated with increased wind production.
•
Net income attributable to non-controlling interest increased $2.4 million due to higher net income from Black Hills Colorado IPP primarily driven by prior year unplanned generation outages.
Segment Operating Results
A discussion of operating results from our business segments follows. Unless otherwise indicated, segment information does not include inter-segment eliminations.
Non-GAAP Financial Measures
The following discussion includes financial information prepared in accordance with GAAP and a "non-GAAP financial measure", Electric and Gas Utility margin. Generally, a non-GAAP financial measure is a numerical measure of a company's financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. We define Electric and Gas Utility margin as operating revenue less cost of fuel, purchased power and cost of natural gas sold. Electric and Gas Utility margin is a non-GAAP financial measure due to the exclusion of operation and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization expenses, and taxes other than income taxes from the measure.
We believe that Gas and Electric Utility margin provides a useful basis for evaluating our segment operating results since our Utilities have regulatory mechanisms that allow them to pass prudently incurred costs of energy through to the customer in current rates. As a result, management uses Gas and Electric Utility margin internally when assessing the financial performance of our operating segments as this measure excludes the majority of revenue fluctuations caused by changes in these costs of energy. Similarly, the presentation of Gas and Electric Utility margin is intended to supplement investors' understanding of operating performance.
Our Electric and Gas Utility margin measure may not be comparable to other companies' Electric and Gas Utility margin measures. The following table includes a reconciliation of Electric and Gas Utility margin to Gross margin, the most directly comparable GAAP measure:
|
Electric Utilities |
Gas Utilities |
|||||||||||||||||||||||
|
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||
|
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
|||||||||||||||||
|
(in millions) |
||||||||||||||||||||||||
|
Revenue |
$ |
280.4 |
$ |
249.7 |
$ |
748.3 |
$ |
706.3 |
$ |
189.7 |
$ |
184.4 |
$ |
963.3 |
$ |
979.9 |
||||||||
|
Fuel, purchased power and cost of natural gas sold |
(81.8 |
) |
(69.8 |
) |
(198.3 |
) |
(192.2 |
) |
(39.7 |
) |
(42.3 |
) |
(374.8 |
) |
(403.7 |
) |
||||||||
|
Operations and maintenance (a) |
(44.5 |
) |
(44.4 |
) |
(125.3 |
) |
(130.1 |
) |
(42.3 |
) |
(42.0 |
) |
(126.3 |
) |
(129.0 |
) |
||||||||
|
Depreciation and amortization |
(41.9 |
) |
(38.3 |
) |
(123.3 |
) |
(113.0 |
) |
(34.3 |
) |
(33.2 |
) |
(103.0 |
) |
(97.6 |
) |
||||||||
|
Taxes other than income taxes |
(9.1 |
) |
(9.4 |
) |
(27.5 |
) |
(27.6 |
) |
(7.9 |
) |
(7.8 |
) |
(24.0 |
) |
(22.4 |
) |
||||||||
|
Gross margin (GAAP) |
$ |
103.1 |
$ |
87.8 |
$ |
273.9 |
$ |
243.4 |
$ |
65.5 |
$ |
59.1 |
$ |
335.2 |
$ |
327.2 |
||||||||
|
Operations and maintenance (a) |
44.5 |
44.4 |
125.3 |
130.1 |
42.3 |
42.0 |
126.3 |
129.0 |
||||||||||||||||
|
Depreciation and amortization |
41.9 |
38.3 |
123.3 |
113.0 |
34.3 |
33.2 |
103.0 |
97.6 |
||||||||||||||||
|
Taxes other than income taxes |
9.1 |
9.4 |
27.5 |
27.6 |
7.9 |
7.8 |
24.0 |
22.4 |
||||||||||||||||
|
Electric and Gas Utility margin (non-GAAP) |
$ |
198.6 |
$ |
179.9 |
$ |
550.0 |
$ |
514.1 |
$ |
150.0 |
$ |
142.1 |
$ |
588.5 |
$ |
576.2 |
||||||||
(a)
Operations and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operations and maintenance expenses at our electric generation facilities, operations and maintenance expenses at our WRDC coal mine, and electric and gas transmission and distribution expenses. These amounts are included in the table above to calculate gross margin in accordance with GAAP. These amounts excluded operations and maintenance expenses not directly attributable to revenue-producing activities of $26.2 million, $25.4 million, $76.8 million, and $77.7 million for the three and nine months ended September 30, 2026, and 2025, respectively, for the Electric Utilities and $40.5 million, $38.3 million, $122.1 million, and $119.5 million for the three and nine months ended September 30, 2026, and 2025, respectively, for the Gas Utilities.
Electric Utilities
Operating results for the Electric Utilities were as follows:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
2026 |
2025 |
2026 vs 2025 Variance |
|||||||||||||
|
(in millions) |
||||||||||||||||||
|
Revenue |
$ |
280.4 |
$ |
249.7 |
$ |
30.7 |
$ |
748.3 |
$ |
706.3 |
$ |
42.0 |
||||||
|
Fuel and purchased power |
81.8 |
69.8 |
12.0 |
198.3 |
192.2 |
6.1 |
||||||||||||
|
Electric Utility margin (non-GAAP) (a) |
198.6 |
179.9 |
18.7 |
550.0 |
514.1 |
35.9 |
||||||||||||
|
Operations and maintenance |
70.7 |
69.8 |
0.9 |
202.1 |
207.8 |
(5.7 |
) |
|||||||||||
|
Depreciation and amortization |
41.9 |
38.3 |
3.6 |
123.3 |
113.0 |
10.3 |
||||||||||||
|
Taxes other than income taxes |
9.1 |
9.4 |
(0.3 |
) |
27.5 |
27.6 |
(0.1 |
) |
||||||||||
|
Total operating expenses (excluding Fuel and purchased power) |
121.7 |
117.5 |
4.2 |
352.9 |
348.4 |
4.5 |
||||||||||||
|
Operating income |
$ |
76.9 |
$ |
62.4 |
$ |
14.5 |
$ |
197.1 |
$ |
165.7 |
$ |
31.4 |
||||||
(a)
See Non-GAAP Financial Measures section above for reconciliation to Gross margin, the most directly comparable GAAP measure.
Three Months Ended September 30, 2026, Compared to the Three Months Ended September 30, 2025:
•
Electric Utility margin increased as a result of the following:
|
(in millions) |
|||
|
New rates and rider recovery |
$ |
11.4 |
|
|
Weather |
4.5 |
||
|
Residential and commercial customer usage |
2.9 |
||
|
Other |
(0.1 |
) |
|
|
$ |
18.7 |
||
•
Operations and maintenance expense was comparable primarily due to increased employee-related costs and outside services expenses mostly offset by lower expenses related to prior year unplanned generation outages.
•
Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures.
•
Taxes other than income taxes were comparable to the same period in the prior year.
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025:
•
Electric Utility margin increased as a result of the following:
|
(in millions) |
|||
|
New rates and rider recovery |
$ |
32.9 |
|
|
Weather |
1.7 |
||
|
Other |
1.3 |
||
|
$ |
35.9 |
||
•
Operations and maintenance expense decreased primarily due to $4.8 million of lower expenses related to prior year unplanned generation outages and $2.7 million of lower outside services expenses partially offset by higher employee costs.
•
Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures.
•
Taxes other than income taxes were comparable to the same period in the prior year.
Operating Statistics
|
Revenue |
Quantities Sold |
|||||||||||||||||||||||
|
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||
|
By Customer Class |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
||||||||||||||||
|
(in millions) |
(in GWh) |
|||||||||||||||||||||||
|
Retail Revenue - |
||||||||||||||||||||||||
|
Residential |
$ |
78.8 |
$ |
68.8 |
$ |
197.9 |
$ |
189.3 |
448.2 |
393.5 |
1,134.1 |
1,120.9 |
||||||||||||
|
Commercial |
76.5 |
74.6 |
213.9 |
210.3 |
573.7 |
561.6 |
1,565.5 |
1,578.5 |
||||||||||||||||
|
Industrial (a) |
64.2 |
49.8 |
178.7 |
147.3 |
770.1 |
639.1 |
2,261.5 |
1,912.8 |
||||||||||||||||
|
Municipal |
5.3 |
4.6 |
13.9 |
13.4 |
43.0 |
41.4 |
109.9 |
110.1 |
||||||||||||||||
|
Other Retail |
3.0 |
3.5 |
4.8 |
10.3 |
- |
- |
- |
- |
||||||||||||||||
|
Subtotal Retail Revenue - Electric |
227.8 |
201.3 |
609.2 |
570.6 |
1,835.0 |
1,635.6 |
5,071.0 |
4,722.3 |
||||||||||||||||
|
Wholesale |
6.4 |
5.5 |
17.7 |
16.9 |
128.0 |
110.5 |
391.6 |
366.7 |
||||||||||||||||
|
Market - off-system sales |
9.7 |
16.3 |
23.0 |
38.3 |
256.9 |
267.0 |
545.5 |
660.6 |
||||||||||||||||
|
Transmission |
20.8 |
11.1 |
50.3 |
33.3 |
- |
- |
- |
- |
||||||||||||||||
|
Other (b) |
15.7 |
15.5 |
48.1 |
47.2 |
- |
- |
- |
- |
||||||||||||||||
|
Total Revenue and Quantities Sold |
$ |
280.4 |
$ |
249.7 |
$ |
748.3 |
$ |
706.3 |
2,219.9 |
2,013.1 |
6,008.1 |
5,749.6 |
||||||||||||
|
Other Uses, Losses, or Generation, net (c) |
148.6 |
112.9 |
394.2 |
332.4 |
||||||||||||||||||||
|
Total Energy |
2,368.5 |
2,126.0 |
6,402.3 |
6,082.0 |
||||||||||||||||||||
(a)
The increase in industrial quantities sold for the three and nine months ended September 30, 2026, compared to the same periods in 2025, was primarily driven by Wyoming Electric's large-load customers under the LPCS and BCIS Tariffs.
(b)
Includes Integrated Generation, inter-segment rent, and non-regulated services to our retail customers under the Service Guard Comfort Plan and Tech Services.
(c)
Includes company uses and line losses.
|
Revenue |
Quantities Sold |
|||||||||||||||||||||||
|
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||
|
By Business Unit |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
||||||||||||||||
|
(in millions) |
(in GWh) |
|||||||||||||||||||||||
|
Colorado Electric |
$ |
86.8 |
$ |
79.6 |
$ |
220.7 |
$ |
218.3 |
568.6 |
621.3 |
1,599.4 |
1,677.7 |
||||||||||||
|
South Dakota Electric |
95.1 |
90.6 |
257.7 |
255.5 |
769.5 |
711.8 |
1,976.2 |
2,032.7 |
||||||||||||||||
|
Wyoming Electric |
87.1 |
68.6 |
237.6 |
200.0 |
856.9 |
659.9 |
2,360.5 |
1,970.9 |
||||||||||||||||
|
Integrated Generation |
11.4 |
10.9 |
32.3 |
32.5 |
24.9 |
20.1 |
72.0 |
68.3 |
||||||||||||||||
|
Total Revenue and Quantities Sold |
$ |
280.4 |
$ |
249.7 |
$ |
748.3 |
$ |
706.3 |
2,219.9 |
2,013.1 |
6,008.1 |
5,749.6 |
||||||||||||
|
Three Months |
Nine Months |
|||||||||||
|
Quantities Generated and Purchased by Fuel Type |
2026 |
2025 |
2026 |
2025 |
||||||||
|
(in GWh) |
||||||||||||
|
Generated: |
||||||||||||
|
Coal |
628.3 |
556.8 |
1,702.4 |
1,614.1 |
||||||||
|
Natural Gas and Oil |
640.9 |
718.7 |
1,584.3 |
1,816.1 |
||||||||
|
Wind |
128.1 |
115.7 |
477.5 |
426.5 |
||||||||
|
Total Generated |
1,397.3 |
1,391.2 |
3,764.2 |
3,856.7 |
||||||||
|
Purchased: |
||||||||||||
|
Coal, Natural Gas, Oil, and Other Market Purchases |
696.8 |
458.9 |
1,667.7 |
1,305.4 |
||||||||
|
Wind and Solar |
274.4 |
275.9 |
970.4 |
919.9 |
||||||||
|
Total Purchased (a) |
971.2 |
734.8 |
2,638.1 |
2,225.3 |
||||||||
|
Total Generated and Purchased |
2,368.5 |
2,126.0 |
6,402.3 |
6,082.0 |
||||||||
(a)
The increase in total purchases for the three and nine months ended September 30, 2026, compared to the same period in 2025, was primarily driven by increased demand from Wyoming Electric's large-load customers under the LPCS and BCIS Tariffs.
|
Three Months |
Nine Months |
|||||||||||
|
Quantities Generated and Purchased by Business Unit |
2026 |
2025 |
2026 |
2025 |
||||||||
|
(in GWh) |
||||||||||||
|
Generated: |
||||||||||||
|
Colorado Electric |
134.9 |
228.1 |
459.2 |
595.5 |
||||||||
|
South Dakota Electric |
526.4 |
453.8 |
1,373.6 |
1,377.6 |
||||||||
|
Wyoming Electric |
248.2 |
236.9 |
645.5 |
676.3 |
||||||||
|
Integrated Generation |
487.8 |
472.4 |
1,285.9 |
1,207.3 |
||||||||
|
Total Generated |
1,397.3 |
1,391.2 |
3,764.2 |
3,856.7 |
||||||||
|
Purchased: |
||||||||||||
|
Colorado Electric |
127.7 |
72.8 |
315.1 |
269.5 |
||||||||
|
South Dakota Electric |
267.5 |
294.7 |
691.7 |
738.6 |
||||||||
|
Wyoming Electric (a) |
520.2 |
357.7 |
1,534.3 |
1,173.5 |
||||||||
|
Integrated Generation |
55.8 |
9.6 |
97.0 |
43.7 |
||||||||
|
Total Purchased |
971.2 |
734.8 |
2,638.1 |
2,225.3 |
||||||||
|
Total Generated and Purchased |
2,368.5 |
2,126.0 |
6,402.3 |
6,082.0 |
||||||||
(a)
As discussed in footnote (a) in the Quantities Generated and Purchased by Fuel Type table above, the increase in Wyoming Electric's purchases for the three and nine months ended September 30, 2026, compared to the same periods in 2025, is primarily driven by increased demand from large-load customers under the LPCS and BCIS Tariffs.
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
|
2026 |
2025 |
2026 |
2025 |
|||||
|
Degree Days |
Actual |
Variance from Normal |
Actual |
Variance from Normal |
Actual |
Variance from Normal |
Actual |
Variance from Normal |
|
Heating Degree Days: |
||||||||
|
Colorado Electric |
(61)% |
(15)% |
2,557 |
(19)% |
3,390 |
8% |
||
|
South Dakota Electric |
(50)% |
(41)% |
3,618 |
(19)% |
4,432 |
--- |
||
|
Wyoming Electric |
(47)% |
--- |
3,384 |
(22)% |
4,382 |
2% |
||
|
Combined (a) |
(51)% |
(24)% |
3,094 |
(20)% |
3,952 |
3% |
||
|
Cooling Degree Days: |
||||||||
|
Colorado Electric |
1,056 |
22% |
(13)% |
1,414 |
23% |
1,005 |
(14)% |
|
|
South Dakota Electric |
37% |
10% |
27% |
15% |
||||
|
Wyoming Electric |
32% |
(31)% |
19% |
(30)% |
||||
|
Combined (a) |
28% |
(8)% |
1,053 |
24% |
(8)% |
|||
(a)
Degree days are calculated based on a weighted average of total customers by state.
Gas Utilities
Operating results for the Gas Utilities were as follows:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
2026 |
2025 |
2026 vs 2025 Variance |
|||||||||||||
|
(in millions) |
||||||||||||||||||
|
Revenue |
$ |
189.7 |
$ |
184.4 |
$ |
5.3 |
$ |
963.3 |
$ |
979.9 |
$ |
(16.6 |
) |
|||||
|
Cost of natural gas sold |
39.7 |
42.3 |
(2.6 |
) |
374.8 |
403.7 |
(28.9 |
) |
||||||||||
|
Gas Utility margin (non-GAAP) (a) |
150.0 |
142.1 |
7.9 |
588.5 |
576.2 |
12.3 |
||||||||||||
|
Operations and maintenance |
82.8 |
80.3 |
2.5 |
248.4 |
248.5 |
(0.1 |
) |
|||||||||||
|
Depreciation and amortization |
34.3 |
33.2 |
1.1 |
103.0 |
97.6 |
5.4 |
||||||||||||
|
Taxes other than income taxes |
7.9 |
7.8 |
0.1 |
24.0 |
22.4 |
1.6 |
||||||||||||
|
Total operating expenses (excluding Cost of natural gas sold) |
125.0 |
121.3 |
3.7 |
375.4 |
368.5 |
6.9 |
||||||||||||
|
Operating income |
$ |
25.0 |
$ |
20.8 |
$ |
4.2 |
$ |
213.1 |
$ |
207.7 |
$ |
5.4 |
||||||
(a)
See Non-GAAP Financial Measures section above for reconciliation to Gross margin, the most directly comparable GAAP measure.
Three Months Ended September 30, 2026, Compared to the Three Months Ended September 30, 2025:
•
Gas Utility margin increased as a result of the following:
|
(in millions) |
|||
|
New rates and rider recovery |
$ |
2.9 |
|
|
Transportation volumes |
1.5 |
||
|
Retail customer usage |
1.1 |
||
|
Weather |
1.0 |
||
|
Other |
1.4 |
||
|
$ |
7.9 |
||
•
Operations and maintenance expense increased primarily due to higher employee-related costs partially offset by lower outside services expenses.
•
Depreciation and amortization were comparable to the same period in the prior year.
•
Taxes other than income taxes were comparable to the same period in the prior year.
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025:
•
Gas Utility margin increased as a result of the following:
|
(in millions) |
|||
|
New rates and rider recovery |
$ |
22.8 |
|
|
Transportation volumes |
2.8 |
||
|
Customer growth |
2.7 |
||
|
Weather |
(12.6 |
) |
|
|
Retail customer usage |
(1.7 |
) |
|
|
Other |
(1.7 |
) |
|
|
$ |
12.3 |
||
•
Operations and maintenance expense was comparable to the same period in the prior year.
•
Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures.
•
Taxes other than income taxes were comparable to the same period in the prior year.
Operating Statistics
|
Revenue |
Quantities Sold and Transported |
|||||||||||||||||||||||
|
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||
|
By Customer Class |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
||||||||||||||||
|
(in millions) |
(Dth in millions) |
|||||||||||||||||||||||
|
Retail Revenue - |
||||||||||||||||||||||||
|
Residential |
$ |
83.6 |
$ |
86.0 |
$ |
506.9 |
$ |
543.4 |
3.4 |
3.6 |
35.3 |
41.5 |
||||||||||||
|
Commercial |
28.2 |
30.0 |
193.4 |
206.3 |
2.4 |
2.5 |
18.3 |
20.5 |
||||||||||||||||
|
Industrial |
9.9 |
8.2 |
23.7 |
21.3 |
2.6 |
2.0 |
5.2 |
4.4 |
||||||||||||||||
|
Other Retail (a) |
6.2 |
4.4 |
27.7 |
26.0 |
- |
- |
- |
- |
||||||||||||||||
|
Subtotal Retail Revenue - Gas |
127.9 |
128.6 |
751.7 |
797.0 |
8.4 |
8.1 |
58.8 |
66.4 |
||||||||||||||||
|
Transportation |
47.2 |
43.6 |
146.5 |
143.4 |
37.4 |
36.2 |
121.6 |
122.8 |
||||||||||||||||
|
Other (b) (c) |
14.6 |
12.2 |
65.1 |
39.5 |
- |
- |
- |
- |
||||||||||||||||
|
Total Revenue and Quantities Sold |
$ |
189.7 |
$ |
184.4 |
$ |
963.3 |
$ |
979.9 |
45.8 |
44.3 |
180.4 |
189.2 |
||||||||||||
(a)
Includes Black Hills Energy Services revenue under the Choice Gas Program.
(b)
Includes inter-segment rent and non-regulated services under the Service Guard Comfort Plan, Tech Services, and HomeServe.
(c)
The increase in Other Revenue for the nine months ended September 30, 2026 was primarily driven by an increase in weather normalization mechanism revenue, including the implementation of the Nebraska Gas's pilot program effective August 2025.
|
Revenue |
Quantities Sold and Transported |
|||||||||||||||||||||||
|
Three Months |
Nine Months |
Three Months |
Nine Months |
|||||||||||||||||||||
|
By Business Unit |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
2026 |
2025 |
||||||||||||||||
|
(in millions) |
(Dth in millions) |
|||||||||||||||||||||||
|
Arkansas Gas |
$ |
28.5 |
$ |
31.0 |
$ |
192.1 |
$ |
196.5 |
4.9 |
4.9 |
22.0 |
23.4 |
||||||||||||
|
Colorado Gas |
26.8 |
27.9 |
153.8 |
182.7 |
3.3 |
3.5 |
19.0 |
21.9 |
||||||||||||||||
|
Iowa Gas |
23.0 |
21.7 |
149.9 |
138.6 |
6.0 |
6.1 |
27.2 |
28.1 |
||||||||||||||||
|
Kansas Gas |
26.8 |
23.7 |
113.2 |
114.9 |
10.1 |
8.6 |
29.1 |
27.9 |
||||||||||||||||
|
Nebraska Gas |
61.7 |
57.2 |
256.1 |
245.4 |
15.8 |
15.6 |
58.2 |
61.7 |
||||||||||||||||
|
Wyoming Gas |
22.9 |
22.9 |
98.2 |
101.8 |
5.7 |
5.6 |
24.9 |
26.2 |
||||||||||||||||
|
Total Revenue and Quantities Sold |
$ |
189.7 |
$ |
184.4 |
$ |
963.3 |
$ |
979.9 |
45.8 |
44.3 |
180.4 |
189.2 |
||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
|
2026 |
2025 |
2026 |
2025 |
|||||
|
Heating Degree Days |
Actual |
Variance from Normal |
Actual |
Variance from Normal |
Actual |
Variance from Normal |
Actual |
Variance from Normal |
|
Arkansas Gas (a) |
--- |
(100)% |
(92)% |
1,727 |
(20)% |
2,151 |
(3)% |
|
|
Colorado Gas |
(46)% |
(7)% |
2,834 |
(25)% |
3,758 |
--- |
||
|
Iowa Gas |
(26)% |
2% |
3,645 |
(10)% |
4,003 |
(1)% |
||
|
Kansas Gas (a) |
(96)% |
(20)% |
2,309 |
(18)% |
3,001 |
7% |
||
|
Nebraska Gas (a) |
(62)% |
(23)% |
3,097 |
(15)% |
3,633 |
--- |
||
|
Wyoming Gas |
(45)% |
(22)% |
3,634 |
(22)% |
4,586 |
--- |
||
|
Combined (b) |
(57)% |
(11)% |
3,223 |
(22)% |
3,811 |
(1)% |
||
(a)
Arkansas Gas and Kansas Gas have weather normalization mechanisms that mitigate the weather impact on Gas Utility margins. Nebraska Gas received NPSC approval to implement a two-year pilot program for a weather normalization mechanism which was effective August 1, 2025.
(b)
The combined heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas and Nebraska Gas (effective in August 2025) due to its weather normalization mechanism. Arkansas Gas is partially excluded based on the weather normalization mechanism in effect from November through April.
Corporate and Other
Corporate and Other consists of certain unallocated expenses for administrative activities that support our operating segments. Corporate and Other also includes our Captive, business development activities that are not part of our operating segments, and inter-segment eliminations.
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
2026 |
2025 |
2026 vs 2025 Variance |
|||||||||||||
|
(in millions) |
||||||||||||||||||
|
Operating income (loss) |
$ |
(3.8 |
) |
$ |
(4.5 |
) |
$ |
0.7 |
$ |
(13.1 |
) |
$ |
(7.3 |
) |
$ |
(5.8 |
) |
|
Three Months Ended September 30, 2026, Compared to the Three Months Ended September 30, 2025:
•
Operating loss was comparable primarily due to lower costs related to the pending Merger mostly offset by higher unallocated employee costs and the prior year consolidation of our Captive insurance cell.
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025:
•
Operating loss increased due to $11.7 million of current year costs related to the pending Merger compared to $8.4 million for the same period in 2025. The remaining variance is primarily driven by the prior year consolidation of our Captive insurance cell.
Consolidated Interest Expense, Other Income and Income Tax Expense
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
2026 |
2025 |
2026 vs 2025 Variance |
|||||||||||||
|
(in millions) |
||||||||||||||||||
|
Interest expense, net |
$ |
(50.1 |
) |
$ |
(49.4 |
) |
$ |
(0.7 |
) |
$ |
(153.7 |
) |
$ |
(149.6 |
) |
$ |
(4.1 |
) |
|
Other income, net |
1.3 |
0.6 |
0.7 |
2.2 |
1.1 |
1.1 |
||||||||||||
|
Income tax (expense) |
(5.8 |
) |
(4.0 |
) |
(1.8 |
) |
(28.5 |
) |
(26.5 |
) |
(2.0 |
) |
||||||
Three Months Ended September 30, 2026, Compared to the Three Months Ended September 30, 2025:
•
Interest expense, net, was comparable to the same period in the prior year.
•
Other income, net, was comparable to the same period in the prior year.
•
Income tax (expense) increased compared to the same period in the prior year primarily due to higher pre-tax income. For the three months ended September 30, 2026, the effective tax rate was 11.8%, which was lower compared to 13.4% for the same period in 2025. The lower effective tax rate was primarily driven by increased current year tax benefits from federal PTCs associated with increased wind production and the non-deductibility of certain prior year costs related to the pending Merger.
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025:
•
Interest expense, net, increased compared to the same period in the prior year primarily driven by higher debt balances partially offset by higher AFUDC debt driven by construction work-in-progress balances.
•
Other income, net, was comparable to the same period in the prior year.
•
Income tax (expense) increased compared to the same period in the prior year primarily due to higher pre-tax income. For the nine months ended September 30, 2026, the effective tax rate was 11.6%, which was lower compared to 12.2% for the same period in 2025. The lower effective tax rate was primarily driven by increased current year tax benefits from federal PTCs associated with increased wind production.
Liquidity and Capital Resources
The following table provides an informational summary of our liquidity and capital structure as of:
|
September 30, 2026 |
December 31, 2025 |
|||||
|
(dollars in millions) |
||||||
|
Cash and cash equivalents |
$ |
18.2 |
$ |
182.8 |
||
|
Available capacity under Revolving Credit Facility and CP Program (a) |
684.8 |
746.8 |
||||
|
Available liquidity |
$ |
703.0 |
$ |
929.6 |
||
|
Capital structure |
||||||
|
Short-term debt |
||||||
|
Notes Payable |
$ |
61.5 |
$ |
- |
||
|
Current maturities of long-term debt |
410.0 |
- |
||||
|
Refundable advances for construction |
398.8 |
- |
||||
|
Long-term debt |
3,995.3 |
4,701.1 |
||||
|
Total debt (b) |
4,865.6 |
4,701.1 |
||||
|
Total stockholders' equity (excludes non-controlling interest) |
3,952.8 |
3,823.6 |
||||
|
Total capitalization |
$ |
8,818.4 |
$ |
8,524.7 |
||
|
Debt to capitalization |
55.2 |
% |
55.1 |
% |
||
|
Long-term debt to total debt |
82.1 |
% |
100.0 |
% |
||
(a)
Available capacity under Revolving Credit Facility and CP Program represents $750 million of total borrowing capacity less outstanding borrowings and letters of credit. See Note 5 of the Notes to Consolidated Financial Statements for more information.
(b)
Total debt includes $398.8 million of Refundable advances for construction, which are excluded from Consolidated Indebtedness as defined under our Revolving Credit Facility and from debt under Wyoming Electric's financing agreements (see Note 5 of the Notes to Consolidated Financial Statements for more information).
Future Financing Plans
We plan to fund our capital plan and strategic objectives by using cash generated from operating activities and various financing alternatives, which could include our Revolving Credit Facility, our CP Program, the issuance of common stock under our ATM or in a secondary offering, a term loan and refundable advances from customers. We plan to re-finance our $400 million, 3.15%, senior unsecured notes due January 15, 2027, at or before the maturity date.
As discussed in the Recent Developments section above, the Company expects to finance the approximately $1.8 billion of generation investment through a combination of project-generated cash flow and debt and equity instruments with a focus on earnings accretion while maintaining solid investment-grade credit ratings. Google has provided us with $398.8 million of refundable advances for the procurement of long lead-time equipment under the parties' generation reservation agreement. We expect to reimburse those advances by their June 30, 2027 maturity date.
CASH FLOW ACTIVITIES
The following tables summarize our cash flows for the nine months ended September 30, 2026:
Operating Activities:
|
Nine Months Ended September 30, |
|||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
|||||||
|
(in millions) |
|||||||||
|
Net income |
$ |
217.1 |
$ |
191.1 |
$ |
26.0 |
|||
|
Non-cash adjustments to Net income |
300.6 |
278.0 |
22.6 |
||||||
|
Total earnings |
$ |
517.7 |
$ |
469.1 |
$ |
48.6 |
|||
|
Changes in certain operating assets and liabilities: |
|||||||||
|
Materials, supplies and fuel, Accounts receivable and other current assets |
127.0 |
71.8 |
55.2 |
||||||
|
Accounts payable and other current liabilities |
(80.5 |
) |
(70.4 |
) |
(10.1 |
) |
|||
|
Regulatory assets |
1.7 |
47.1 |
(45.4 |
) |
|||||
|
Net inflow (outflow) from changes in certain operating assets and liabilities |
$ |
48.2 |
$ |
48.5 |
$ |
(0.3 |
) |
||
|
Other operating activities |
(23.3 |
) |
(12.3 |
) |
(11.0 |
) |
|||
|
Net cash provided by operating activities |
$ |
542.6 |
$ |
505.3 |
$ |
37.3 |
|||
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025
•
Total earnings (net income plus non-cash adjustments) were $48.6 million higher than the same period in the prior year primarily as a result of increased Electric and Gas Utility margins due to new rates and rider recovery partially offset by higher financing costs.
•
Net inflows from changes in certain operating assets and liabilities were $0.3 million lower, primarily attributable to:
o
Cash inflows increased by $55.2 million as a result of changes in accounts receivable and other current assets primarily driven by fluctuations in commodity prices and weather, and receipt of an insurance loss recovery receivable related to a legal settlement in Colorado;
o
Cash outflows increased by $10.1 million as a result of changes in accounts payable and other current liabilities primarily driven by fluctuations in commodity prices, payment of a legal liability from settlement in Colorado and changes in other working capital requirements; and
o
Cash inflows decreased by $45.4 million as a result of changes in our regulatory assets and liabilities primarily due to lower recoveries of gas and fuel cost adjustments driven by fluctuations in commodity prices, and lower recoveries of our Winter Storm Uri regulatory asset as recovery is now complete in nearly all jurisdictions.
•
Cash outflows from other operating activities increased by $11.0 million primarily driven by settlement of contractor retainage balances from Wyoming Electric's completed Ready Wyoming project and higher costs from cloud computing arrangements.
Investing Activities:
|
Nine Months Ended September 30, |
|||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
|||||||
|
(in millions) |
|||||||||
|
Capital expenditures |
$ |
(756.0 |
) |
$ |
(550.2 |
) |
$ |
(205.8 |
) |
|
Other investing activities |
(7.7 |
) |
(6.2 |
) |
(1.5 |
) |
|||
|
Net cash (used in) investing activities |
$ |
(763.7 |
) |
$ |
(556.4 |
) |
$ |
(207.3 |
) |
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025
•
Cash outflows from capital expenditures increased $205.8 million primarily driven by the Lange II project and milestone payments for long lead-time generation equipment for the Google data center project.
•
Cash outflows from other investing activities were comparable to the same period in the prior year.
Financing Activities:
|
Nine Months Ended September 30, |
|||||||||
|
2026 |
2025 |
2026 vs 2025 Variance |
|||||||
|
(in millions) |
|||||||||
|
Dividends paid on common stock |
$ |
(160.2 |
) |
$ |
(146.8 |
) |
$ |
(13.4 |
) |
|
Common stock issued |
68.9 |
219.2 |
(150.3 |
) |
|||||
|
Short-term and long-term debt borrowings (repayments), net |
(238.5 |
) |
(7.8 |
) |
(230.7 |
) |
|||
|
Distributions to non-controlling interests |
(9.3 |
) |
(5.2 |
) |
(4.1 |
) |
|||
|
Proceeds from refundable advances for construction |
398.8 |
- |
398.8 |
||||||
|
Other financing activities |
(2.5 |
) |
(2.6 |
) |
0.1 |
||||
|
Net cash provided by financing activities |
$ |
57.2 |
$ |
56.8 |
$ |
0.4 |
|||
Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025
•
Dividends paid on common stock increased $13.4 million due to the increased dividend rate per share and increased number of common shares outstanding.
•
Cash inflows decreased $150.3 million due to decreased issuances of common stock under our ATM.
•
Net cash outflows increased $230.7 million primarily as a result of the repayment of $300 million, 3.95% senior unsecured notes on their January 15, 2026 maturity date partially offset by net borrowing activity under our CP Program.
•
Distributions to non-controlling interests increased due to higher net income from Black Hills Colorado IPP primarily driven by prior year unplanned generation outages.
•
Cash inflows increased due to $398.8 million of refundable advances from Google for long lead-time generation equipment.
•
Cash outflows from other financing activities were comparable to the same period in the prior year.
CAPITAL RESOURCES
See Note 5 of the Condensed Notes to Consolidated Financial Statements for recent financing updates and financial covenants information.
CREDIT RATINGS
The following table represents the credit ratings and outlook and risk profile of BHC as of the date of this report:
|
Rating Agency |
Senior Unsecured Rating |
Outlook |
|
S&P (a) |
BBB+ |
Stable |
|
Moody's (b) |
Baa2 |
Stable |
(a)
On October 7, 2026, S&P affirmed our BBB+ rating and maintained a Stable outlook.
(b)
On October 19, 2026, Moody's affirmed our Baa2 rating and maintained a Stable outlook.
The following table represents the credit rating of South Dakota Electric as of the date of this report:
|
Rating Agency |
Senior Secured Rating |
|
S&P |
A |
CAPITAL REQUIREMENTS
Common Stock Dividends
Dividends paid on our common stock totaled $160.2 million for the nine months ended September 30, 2026. The quarterly cash dividend was $0.703 per share. On October 28, 2026, our board of directors declared a quarterly dividend of $0.703 per share payable December 1, 2026, equivalent to an annual dividend of $2.812 per share. The amount of any future cash dividends to be declared and paid, if any, will depend upon, among other things, our financial condition, funds from operations, the level of our capital expenditures, restrictions under our Revolving Credit Facility, and our future business prospects.
Critical Accounting Estimates
A summary of our critical accounting estimates is included in our 2025 Annual Report on Form 10-K. There were no material changes made as of September 30, 2026.
New Accounting Pronouncements
See Note 1 of the Condensed Notes to Consolidated Financial Statements for a description of recent accounting pronouncements, if any, and our expectation of their impact on our results of operations and financial condition.
Black Hills Corporation published this content on November 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 05, 2026 at 16:54 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]