Black Hills Corporation (BKH)

Over the past six months, Black Hills Corp. stock has seen several notable events. The stock price increased by 28.79% over the last 12 months and 1.84% over the last four weeks. Key events include the merger announcement with NorthWestern Energy, aiming to create a premier regional utility, with favorable shareholder votes and regulatory settlements. The Q1 2026 earnings report reaffirmed 2026 earnings guidance, with GAAP earnings per share of $1.73. Microsoft's announcement to purchase land in Cheyenne, Wyoming, for data center development has positioned Black Hills as a potential beneficiary of surging AI infrastructure demand. Black Hills increased its quarterly dividend to $0.703 per share, marking 56 consecutive years of increases. The company filed rate review requests in South Dakota Electric and Wyoming to recover critical investments.

Demand for Black Hills Corp.'s products and services exhibits clear seasonality. The first and fourth quarters typically experience the strongest earnings due to peak heating demand. The second and third quarters are driven by peak cooling demand, off-system energy sales, and agricultural irrigation. Warmer-than-normal winter weather can significantly reduce natural gas consumption, leading to lower revenue.

Black Hills Corporation is a diversified American energy company operating primarily as an electric and gas utility, headquartered in Rapid City, South Dakota. The company operates through Electric Utilities, Gas Utilities, Power Generation, and Mining segments. The Electric Utilities segment generates, transmits, and distributes electricity, utilizing a mix of gas-fired plants and renewable sources. The Gas Utilities segment focuses on natural gas distribution. The Power Generation segment produces electric power from various sources, selling capacity and energy under long-term contracts. Black Hills owns coal mining operations, including the Wyodak Mine, which supplies fuel to its power plants, and also claims oil and gas reserves.

Black Hills Corp. serves approximately 1.37 million natural gas and electric utility customers across eight states in the U.S. Midwest and Mountain regions. Its electric utility services are provided in Colorado, Montana, South Dakota, and Wyoming. The gas utility segment serves customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. The company sells power throughout the American West.

Black Hills Corp. maintains a reputation as a customer-focused, growth-oriented utility company. Consistent dividend increases and the merger with NorthWestern Energy contribute positively to its reputation. The company's pivot towards serving AI data centers has also enhanced its image. However, challenges such as warm winter weather impacting earnings and concerns about interest and dividend coverage pose potential risks.

Black Hills Corporation's ownership is predominantly held by institutional investors, who collectively owned approximately 86% of outstanding shares as of mid-2025. The largest institutional shareholders include BlackRock, Inc., The Vanguard Group, Inc., and State Street Global Advisors, Inc. Insider ownership stood at roughly 1.79% in August 2025. The general public, primarily individual investors, owns around 14% of the company.