BLACK HILLS CORP /SD/ Q4 FY2025 earnings call

In 2025, Black Hills Corporation achieved the midpoint of earnings guidance, maintained investment-grade credit ratings, increased dividend for 55th consecutive year, completed 3 rate reviews, tripled data center pipeline to over 3 gigawatts, completed Ready Wyoming transmission project, started Lange II generation project, and had excellent operational performance with top quartile reliability. In 2026, it aims for adjusted earnings guidance of $4.25 - $4.45 per share (6% growth),推进客户中心资本计划, continues regulatory progress, meets customer demand, and advances merger with NorthWestern Energy. The data center pipeline includes over 3 gigawatts with Meta and Microsoft contributing, and expects data center demand to contribute over 10% of consolidated EPS from 2028.

No specific detailed segment performance with absolute terms and revenue contribution % provided as the transcript focuses on overall business performance.

For 2026, adjusted earnings guidance is in the range of $4.25 to $4.45 per share, representing 6% growth at the midpoint over 2025. Confidence is driven by ongoing customer growth, increasing data center demand, new rates and rider recovery on strategic investments like Ready Wyoming and Lange II, and pursuit of additional data center pipeline demand.

Risks include risks associated with data center demand growth such as investment in generation and transmission infrastructure, complexity and multiple parties involved in large projects leading to operational and financial risks, and uncertainties in negotiating contracts for data center demand which may impact margins differently.

Q: Chris Ellinghaus inquired about the proportion of the 3 gigawatt pipeline within the 5-year window, time frames, and filing CPCNs; A: Linden Evans and Marne Jones responded about data center demand and CPCN process.

Q: Andrew Weisel asked about whether assets ensure data center project 'grid connected' and application of LPCS tariff; A: Marne Jones and Linden Evans explained about microgrid management fees based on peak demand.

Q: Andrew Weisel asked about generation side including fuel cells and fee structure; A: Marne Jones responded about resource mix evaluation and different resource fees.

Q: Andrew Weisel asked about other transmission assets to be fast-tracked; A: Marne Jones mentioned additional investment opportunities based on data center pipeline.

Q: Ross Fowler asked about the distribution of 600 megawatts in the plan and relation of EPS CAGR to data center contribution; A: Linden Evans and Marne Jones responded about Microsoft and Meta's contribution and EPS CAGR including data center contribution.