BLACK HILLS CORP /SD/ Q1 FY2026 earnings call

Linden R. Evans began by summarizing Q1 2026 results, strategic progress, and the merger with Northwestern Energy. Kimberly F. Nooney provided the financial update, mentioning GAAP EPS of $1.73 with adjustments and reaffirming the earnings guidance range. Marne M. Jones gave a business update, including progress on capital projects such as the Lange II generation project and Colorado clean energy plan, details on the large load demand pipeline, and regulatory updates with multiple rate reviews ongoing

Reaffirmed the adjusted EPS guidance range of $4.25 to $4.45, representing 6% growth at the midpoint over 2025. Expected a significantly lower total equity need of $50 million to $70 million in 2026. Anticipated securing all state regulatory approvals and FERC approval to finalize the merger within the second half of the year

Q: Regarding the agreement to reserve generation equipment for the data center customer, details on the $201 million refundable contributions and asset size.

A: Marne M. Jones and Linden R. Evans explained it's a short-term financing agreement, not the full 1.8 gigawatts, and negotiations are ongoing.

Q: Weather impact and offsets.

A: Kimberly F. Nooney stated they're accustomed to weather impacts and will manage O&M and capital investments. Linden R. Evans noted mild weather in Q4 last year and team efforts.

Q: Data center local holdups and CPCN for generation.

A: Linden R. Evans said no slowdown for current customers, Marne M. Jones said CPCN for generation will come with definitive agreements.

Q: Short-term reservation agreement and CapEx.

A: Kimberly F. Nooney and Marne M. Jones discussed it's a bridge agreement, and CapEx above current plan will be additive with utility-like financing