BKH

• Strategic Progress & Growth Pipeline

• The company remains on track to hit full-year 2026 earnings commitments while executing a nearly $1 billion annual capital plan, with the 99 megawatt Lang II generation project in South Dakota on schedule to enter service in Q4 2026.
• Black Hills has a total pipeline of over 3 GW of hyperscale data center large load demand; only 600 MW is included in the current financial plan through 2030, driven by ongoing Microsoft expansion and Meta's new AI data center, which is expected to begin ramping load in late 2026. Over 2.5 GW of additional opportunities are in active negotiation, including a large 1.8 GW data center project, with further upside potential from new and existing customer projects including Microsoft's recently announced 3,000-acre land purchase in Cheyenne for future expansion.
• Wyoming electric operations have recorded 20 consecutive years of growing peak system loads, with a 16% year-over-year increase in 2026 peak load to 439 megawatts, representing a 183% total increase since 2005.

• Merger with Northwestern Energy

• The merger has received 6 of the 7 required regulatory approvals, including FERC approval and unanimous settlement approvals in Nebraska and South Dakota. The final required approval is from the Montana Public Service Commission.
• A settlement has been reached with most key intervenors in Montana; the commission hearing concluded in May, final briefs were submitted July 13, triggering a 90-day decision window with a possible 30-day extension, putting closing on track for H2 2026.

• Regulatory Updates

• Rate reviews are advancing across multiple jurisdictions: Arkansas Gas and South Dakota Electric reviews are ongoing, with interim rates for South Dakota Electric effective August 18; a new $26.7 million annual revenue rate request was filed for Colorado Electric, targeting a 10.5% ROE with a 49% debt / 51% equity capital structure; an abbreviated rate review in Kansas received approval in June, with new rates effective July 1.
• New wildfire liability regulatory requirements were completed in South Dakota and Wyoming, and the company continues executing its wildfire mitigation plan.
• Black Hills filed a Large Customer Transmission Cost Adjustment Mechanism (LCTCAM) tariff in Wyoming to recover transmission investments directly from large load customers, expected to take effect January 2027, to ensure existing customers are not impacted by new large load growth.
• A 20-year integrated resource plan was submitted to Wyoming in June, identifying a near-term 95 megawatt capacity need to be met via a mix of natural gas generation, battery storage, and market energy purchases.

• Financial Position

• The company maintains a solid balance sheet, holding FFO to debt 100 basis points above its downgrade threshold, targeting 14-15% FFO to debt and better than 55% net debt to total capitalization.
• Year-to-date 2026, $50 million in equity was issued under the ATM program to support capital plans; liquidity exceeds $650 million in revolving credit facility availability; the next debt maturity is $400 million in January 2027, with refinancing options currently being evaluated.
• Black Hills extended its consecutive annual dividend increase streak to 56 years in 2026, maintaining a targeted 55-65% payout ratio.

• Management reaffirmed the full-year 2026 adjusted EPS guidance range of $4.25 to $4.45, which represents 6% growth at the midpoint compared to 2025. • The company maintains a long-term adjusted EPS growth target of 4-6%, and management expects to deliver results in the upper half of this target range, driven by new rates, rider recovery from capital projects, large load demand growth, and a solid financial position.

Black Hills Corporation does not break out detailed product segment-level financial performance or revenue contribution percentages in this Q2 2026 earnings call transcript. Overall consolidated financial results for the quarter are as follows: GAAP EPS of $0.50, which includes $0.04 in merger-related transaction costs; adjusted EPS (excluding merger costs) of $0.54, up from $0.38 in Q2 2025. Year-to-date through the first half of 2026, GAAP EPS was $2.23 (includes $0.10 in merger-related transaction costs), and adjusted EPS was $2.33, up from $2.24 in the first half of 2025. Key consolidated positive drivers include $0.21 per share of new rates and rider recovery for Q2 2026 (45 cents per share year-to-date), which offset higher combined financing and depreciation costs of 12 cents per share Q2 (29 cents year-to-date).

• Forward-looking statements and large load growth projects carry inherent uncertainties, and actual results may differ materially from current expectations, as disclosed in the company's SEC filings. • Large-scale, multi-gigawatt data center projects require coordination across multiple parties and interconnected contractual agreements, with risk that definitive agreements may not be finalized on expected timelines or at all. • The merger with Northwestern Energy still requires final regulatory approval from Montana, and the commission may extend the decision timeline beyond the initial 90-day window, or may decline to approve the transaction. • Unfavorable weather can impact earnings relative to expectations, with Q2 2026 results 3% unfavorable compared to normal weather conditions.

Q: The analyst asks three questions about the 1.8 gigawatt data center opportunity following Crusoe Energy's exit: does Crusoe's exit impact negotiation status, does it affect the customer that provided cash deposits, and will it slow or accelerate the process? / A: Management states Crusoe's exit has had no impact on negotiations. The company has always negotiated directly with the hyperscale end user, which it continues to do, and negotiations are progressing well on track to reach definitive agreements by the end of Q3 2026. If agreements are not finalized by quarter-end, this only reflects the company's focus on getting terms right to properly balance risk and reward for all stakeholders, and there is no cause for concern, and no delays have resulted from the exit.

Q: The analyst asks about the separate 75 megawatt data center opportunity, whether it is an unrelated project with a different customer and if it could lead to a broader deal? / A: Management confirms the 75 megawatt opportunity is an unrelated project with a different customer, and it is part of the 2.5 gigawatt additional large load pipeline the company has disclosed. The project is advancing well, so management highlighted it during this quarter's call.

Q: The analyst asks for more detail on the status of the Montana merger approval, the impact of the partial settlement, and updated timing expectations? / A: Management explains settlements were reached with most key intervenors including the Consumer Council, with only two environmental-focused parties remaining unsettled. The partial settlement provides a clear framework for the Montana Commission to approve the merger. Per regulatory timelines triggered by the July 13 final brief submission, a decision is expected by mid-October, with a possible 30-day extension pushing the decision to mid-November, consistent with prior guidance for closing in H2 2026.