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CLOSED · 16:40 ET
Market ClerkRecap
Sat Oct 24 · markets closed1 signal today94 insider buys this week · $48.3MCIRO short report next: Oct 31The week ahead

BKH

BLACK HILLS CORP /SD/
NYSE · UTILITIES · ELECTRIC SERVICES
79.41
+0.10 +0.13%
USD · close Oct 23
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Work order
29
FLAG · shorts 29
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $6.1BP/E 20.0DIV YIELD —FCF YIELD -5.04%REV TTM $2.3B +2.5%NET INCOME $299.1M +5.2%NET DEBT $1.8B52W 63.43 – 79.41SEC XBRL · TTM TO Invalid Date

How BKH rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
Text kept
49%
of sentences unchanged
Added
287
new sentences
Dropped
215
sentences removed
Length
+2,158
words, now 31,165

New in FY2025

  • At December 31, 2025, and 2024, a 10% change in market prices for our derivative instruments would not materially impact pre-tax income, the fair values of our derivative assets and liabilities, or OCI.
  • At December 31, 2025, we had no interest rate swaps in place.
  • At December 31, 2025, 99.8% of our debt is fixed rate debt, which limits our exposure to variable interest rate fluctuations.
  • A hypothetical 100 basis point increase in the benchmark rate on our variable rate debt would not materially impact pre-tax interest expense for the years ended December 31, 2025, and 2024, respectively.
  • Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025, based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission “COSO”.
  • Based on our evaluation, we have concluded that our internal control over financial reporting was effective as of December 31, 2025.
  • Deloitte & Touche LLP, an independent registered public accounting firm, as auditors of Black Hills Corporation’s financial statements, has issued an attestation report on the effectiveness of Black Hills Corporation's internal control over financial reporting as of December 31, 2025.
  • Black Hills Corporation REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Black Hills Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Black Hills Corporation and subsidiaries (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows, for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements").
  • In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
  • We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 11, 2026 , expressed an unqualified opinion on the Company's internal control over financial reporting.
  • While the Company has indicated its regulatory assets are probable of recovery in current rates or in future proceedings, there is a risk that the Commissions will not judge all costs to have been prudently incurred or that the rate regulation process in which rates are determined will not always result in rates that produce a full recovery of costs and a reasonable return on invested capital.
  • How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others: • We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets, and (2) refunds or future reductions in rates that should be reported as regulatory liabilities.
  • We tested the effectiveness of management’s controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates. • We read relevant regulatory orders issued by the Commissions, filings made by the Company, and other publicly available information, as appropriate, to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedence of the Commissions’ treatment of similar costs under similar circumstances.
  • We also inquired of management regarding current year rate filings and new regulatory assets or liabilities. • We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments. /s/ DELOITTE & TOUCHE LLP Minneapolis, Minnesota February 11, 2026 We have served as the Company's auditor since 2002.
  • REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Black Hills Corporation Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Black Hills Corporation and subsidiaries (the "Company") as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
  • In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
  • We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2025, of the Company and our report dated February 11, 2026, expressed an unqualified opinion on those financial statements.
  • Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ DELOITTE & TOUCHE LLP Minneapolis, Minnesota February 11, 2026 BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF INCOME December 31, 2025 December 31, 2024 December 31, 2023 (in millions, except per share amounts) Revenue $ 2,310.0 $ 2,127.7 $ 2,331.3 Operating expenses: Fuel, purchased power and cost of natural gas sold 831.5 730.3 982.9 Operations and maintenance 589.8 557.0 552.0 Depreciation and amortization 283.8 270.1 256.8 Taxes other than income taxes 67.4 67.2 66.9 Total operating expenses 1,772.5 1,624.6 1,858.6 Operating income 537.5 503.1 472.7 Other income (expense): Interest expense incurred net of amounts capitalized ( 206.9 ) ( 195.2 ) ( 180.0 ) Interest income 6.8 13.5 12.1 Other income (expense), net 6.1 ( 1.4 ) ( 3.2 ) Total other income (expense) ( 194.0 ) ( 183.1 ) ( 171.1 ) Income before income taxes 343.5 320.0 301.6 Income tax (expense) ( 43.7 ) ( 36.3 ) ( 25.6 ) Net income 299.8 283.7 276.0 Net income attributable to non-controlling interest ( 8.2 ) ( 10.6 ) ( 13.8 ) Net income available for common stock 291.6 $ 273.1 $ 262.2 Earnings per share of common stock: Earnings per share, Basic 3.99 3.91 $ 3.91 Earnings per share, Diluted 3.98 3.91 $ 3.91 Weighted average common shares outstanding: Basic 73.0 69.8 67.0 Diluted 73.2 69.9 67.1 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year ended December 31, 2025 December 31, 2024 December 31, 2023 (in millions) Net income $ 299.8 $ 283.7 $ 276.0 Other comprehensive income (loss), net of tax: Benefit plan liability adjustments - net gain (loss) (net of tax of $ 0 , $( 0.2 ), and $ 0 , respectively) — 0.8 ( 0.3 ) Reclassification adjustment of benefit plan liability - net loss (net of tax of $ 0.2 , $( 0.1 ), and $ 0 , respectively) ( 0.6 ) 0.1 0.2 Derivative instruments designated as cash flow hedges: Reclassification of net realized (gains) losses on settled/amortized interest rate swaps (net of tax of $( 0.7 ), $( 0.6 ), and $( 0.7 ), respectively) 2.2 2.3 2.2 Net unrealized gains (losses) on commodity derivatives (net of tax of $ 0.7 , $ 0.1 , and $ 1.1 , respectively) ( 2.7 ) ( 0.5 ) ( 3.6 ) Reclassification of net realized (gains) losses on settled commodity derivatives (net of tax of $( 0.2 ), $( 0.8 ), and $( 0.7 ), respectively) 0.8 2.7 2.3 Other comprehensive income (loss), net of tax ( 0.3 ) 5.4 0.8 Comprehensive income 299.5 289.1 276.8 Less: comprehensive income attributable to non-controlling interest ( 8.2 ) ( 10.6 ) ( 13.8 ) Comprehensive income available for common stock $ 291.3 $ 278.5 $ 263.0 See Note 11 for additional disclosures related to Comprehensive Income.
  • BLACK HILLS CORPORATION CONSOLIDATED BALANCE SHEETS As of December 31, 2025 December 31, 2024 (in millions) ASSETS Current assets: Cash and cash equivalents $ 182.8 $ 16.1 Restricted cash and equivalents 7.6 7.3 Accounts receivable, net 389.0 351.2 Materials, supplies and fuel 172.4 153.9 Income tax receivable, net 23.3 19.8 Regulatory assets, current 139.7 154.8 Other current assets 81.1 39.2 Total current assets 995.9 742.3 Property, plant and equipment 10,344.9 9,566.5 Less accumulated depreciation and depletion ( 2,110.7 ) ( 1,936.6 ) Total property, plant and equipment, net 8,234.2 7,629.9 Other assets: Goodwill 1,299.5 1,299.5 Intangible assets, net 6.4 7.6 Regulatory assets, non-current 255.0 272.9 Other assets, non-current 78.8 70.4 Total other assets, non-current 1,639.7 1,650.4 TOTAL ASSETS $ 10,869.8 $ 10,022.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED BALANCE SHEETS (Continued) As of December 31, 2025 December 31, 2024 (in millions, except share amounts) LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 311.7 $ 229.1 Accrued liabilities 322.6 302.2 Derivative liabilities, current 5.8 4.2 Regulatory liabilities, current 99.9 94.1 Notes payable — 133.8 Total current liabilities 740.0 763.4 Long-term debt, net of current maturities 4,701.1 4,250.2 Deferred credits and other liabilities: Deferred income tax liabilities, net 697.9 625.1 Regulatory liabilities, non-current 488.3 474.6 Benefit plan liabilities 123.4 122.9 Other deferred credits and other liabilities 213.4 201.2 Total deferred credits and other liabilities 1,523.0 1,423.8 Commitments, contingencies and guarantees (Note 3) Equity: Stockholders’ equity - Common stock $ 1.00 par value; 100,000,000 shares authorized; issued: 75,520,234 and 71,676,756 , respectively 75.5 71.7 Additional paid-in capital 2,417.5 2,193.4 Retained earnings 1,342.9 1,249.1 Treasury stock at cost - 43,167 and 56,608 , respectively ( 2.6 ) ( 3.3 ) Accumulated other comprehensive income (loss) ( 9.7 ) ( 9.4 ) Total stockholders’ equity 3,823.6 3,501.5 Non-controlling interest 82.1 83.7 Total equity 3,905.7 3,585.2 TOTAL LIABILITIES AND TOTAL EQUITY $ 10,869.8 $ 10,022.6 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended December 31, 2025 December 31, 2024 December 31, 2023 (in millions) Operating activities: Net income $ 299.8 $ 283.7 $ 276.0 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 283.8 270.1 256.8 Deferred financing cost amortization 9.7 10.7 10.1 Stock compensation 11.8 10.6 7.0 Deferred income taxes 54.3 52.0 25.4 Employee benefit plans 11.6 11.2 11.5 Other adjustments, net 0.9 ( 4.1 ) 2.7 Change in certain operating assets and liabilities: Materials, supplies and fuel ( 17.8 ) 13.2 51.4 Accounts receivable and other current assets ( 45.0 ) ( 25.7 ) 204.5 Accounts payable and other current liabilities 24.0 28.8 ( 109.9 ) Regulatory assets 59.1 90.0 236.8 Other operating activities, net ( 18.8 ) ( 21.2 ) ( 27.9 ) Net cash provided by operating activities 673.4 719.3 944.4 Investing activities: Property, plant and equipment additions ( 819.8 ) ( 744.2 ) ( 555.6 ) Other investing activities ( 8.4 ) ( 1.8 ) 18.9 Net cash (used in) investing activities ( 828.2 ) ( 746.0 ) ( 536.7 ) Financing activities: Dividends paid on common stock ( 197.9 ) ( 182.3 ) ( 168.1 ) Common stock issued 219.2 181.4 118.3 Net borrowings (payments) of Revolving Credit Facility and CP Program ( 133.8 ) 133.8 ( 535.6 ) Long-term debt - issuance 450.0 450.0 800.0 Long-term debt - repayments — ( 600.0 ) ( 525.0 ) Distributions to non-controlling interests ( 9.8 ) ( 17.4 ) ( 18.3 ) Other financing activities ( 5.9 ) ( 8.4 ) ( 13.0 ) Net cash provided by (used in) financing activities 321.8 ( 42.9 ) ( 341.7 ) Net change in cash, restricted cash and cash equivalents 167.0 ( 69.6 ) 66.0 Cash, restricted cash and cash equivalents beginning of year 23.4 93.0 27.0 Cash, restricted cash and cash equivalents end of year $ 190.4 $ 23.4 $ 93.0 Supplemental cash flow information: Cash (paid) received during the period: Interest (net of amounts capitalized) $ ( 196.4 ) $ ( 174.4 ) $ ( 157.3 ) Income taxes net of transferred tax credits (Note 15) $ 8.8 $ 14.4 $ ( 1.0 ) Non-cash investing and financing activities: Accrued property, plant and equipment purchases at December 31 $ 118.8 $ 80.2 $ 52.4 Increase (decrease) in capitalized assets associated with asset retirement obligations $ ( 0.3 ) $ 0.4 $ 3.8 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF EQUITY Common Stock Treasury Stock Shares Value Shares Value Additional Paid in Capital Retained Earnings AOCI Non controlling Interest Total (in millions except share amounts) Balance at December 31, 2022 66,140,396 $ 66.1 36,726 $ ( 2.4 ) $ 1,882.7 $ 1,064.1 $ ( 15.6 ) $ 95.0 $ 3,089.9 Net income — — — — — 262.2 — 13.8 276.0 Other comprehensive income, net of tax — — — — — — 0.8 — 0.8 Dividends on common stock ($ 2.50 per share) — — — — — ( 168.1 ) — — ( 168.1 ) Share-based compensation 93,257 0.1 31,347 ( 1.7 ) 8.8 — — — 7.2 Issuance of common stock 2,031,389 2.1 — — 117.9 — — — 120.0 Issuance costs — — — — ( 1.7 ) — — — ( 1.7 ) Distributions to non-controlling interest — — — — — — — ( 18.3 ) ( 18.3 ) Balance at December 31, 2023 68,265,042 $ 68.3 68,073 $ ( 4.1 ) $ 2,007.7 $ 1,158.2 $ ( 14.8 ) $ 90.5 $ 3,305.8 Net income — — — — — 273.1 — 10.6 283.7 Other comprehensive income, net of tax — — — — — — 5.4 — 5.4 Dividends on common stock ($ 2.60 per share) — — — — — ( 182.3 ) — — ( 182.3 ) Share-based compensation 113,824 0.1 ( 11,465 ) 0.8 7.6 0.1 — — 8.6 Issuance of common stock 3,297,890 3.3 — — 180.1 — — — 183.4 Issuance costs — — — — ( 2.0 ) — — — ( 2.0 ) Distributions to non-controlling interest — — — — — — — ( 17.4 ) ( 17.4 ) Balance at December 31, 2024 71,676,756 $ 71.7 56,608 $ ( 3.3 ) $ 2,193.4 $ 1,249.1 $ ( 9.4 ) $ 83.7 $ 3,585.2 Net income — — — — — 291.6 — 8.2 299.8 Other comprehensive income, net of tax — — — — — — ( 0.3 ) — ( 0.3 ) Dividends on common stock ($ 2.704 per share) — — — — — ( 197.9 ) — — ( 197.9 ) Share-based compensation 123,173 0.1 ( 13,441 ) 0.7 8.6 0.1 — — 9.5 Issuance of common stock 3,720,305 3.7 — — 217.9 — — — 221.6 Issuance costs — — — — ( 2.4 ) — — — ( 2.4 ) Distributions to non-controlling interest — — — — — — — ( 9.8 ) ( 9.8 ) Balance at December 31, 2025 75,520,234 $ 75.5 43,167 $ ( 2.6 ) $ 2,417.5 $ 1,342.9 $ ( 9.7 ) $ 82.1 $ 3,905.7 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION Notes to Consolidated Financial Statements December 31, 2025, 2024, and 2023 (1) BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES Business Description Black Hills Corporation is a customer-focused, growth-oriented utility company headquartered in Rapid City, South Dakota.
  • Black Hills Colorado IPP is a VIE for which Black Hills Electric Generation, and ultimately BHC, is the primary beneficiary.
  • To support our overall insurance program, we established the Captive to insure certain risks of BHC and our subsidiaries.
  • The Captive is a protected separate cell captive insurance company sponsored by EIS.
  • EIS is owned by Energy Insurance Mutual Limited Company and allows participating member sponsoring organizations, such as BHC, to insure risks using captive entities.
  • The Captive is a VIE for which BHC is the primary beneficiary.
  • See Note 12 for additional information regarding VIEs.
  • Following is a summary of accounts receivable as of December 31: 2025 2024 (in millions) Billed Accounts Receivable $ 223.3 $ 201.5 Unbilled Revenue 168.1 151.8 Less Allowance for Credit Losses ( 2.4 ) ( 2.1 ) Accounts Receivable, net $ 389.0 $ 351.2 Changes to allowance for credit losses for the years ended December 31, were as follows: Balance at Beginning of Year Additions Charged to Costs and Expenses Recoveries and Other Additions Write-offs and Other Deductions Balance at End of Year (in millions) 2025 $ 2.1 $ 7.2 $ 3.9 $ ( 10.8 ) $ 2.4 2024 $ 2.2 $ 5.6 $ 4.2 $ ( 9.9 ) $ 2.1 2023 $ 3.0 $ 8.7 $ 4.1 $ ( 13.6 ) $ 2.2 Materials, Supplies, and Fuel Materials and supplies represent parts and supplies for our business operations.
  • The following amounts by major classification are included in Materials, supplies, and fuel on the accompanying Consolidated Balance Sheets as of December 31: 2025 2024 (in millions) Materials and supplies $ 117.3 $ 106.1 Fuel 6.4 7.5 Natural gas in storage 48.7 40.3 Total materials, supplies, and fuel $ 172.4 $ 153.9 Property, Plant, and Equipment Property, plant, and equipment are stated at cost, which includes construction-related direct labor and material costs, indirect construction costs including labor and related costs of departments associated with supporting construction activities, and AFUDC.
  • The following table presents AFUDC amounts for the years ended December 31: Income Statement Location 2025 2024 2023 (in millions) AFUDC Debt Interest expense incurred, net of amounts capitalized $ 12.9 $ 8.7 $ 6.0 AFUDC Equity Other income (expense), net 10.7 4.0 0.4 We also capitalize interest, when applicable, on undeveloped leasehold costs and certain non-regulated construction projects.
  • These valuations require significant judgments, including, but not limited to: 1) estimates of future cash flows, based on our internal five-year business plans and adjusted as appropriate for our view of market participant assumptions, with long range cash flows estimated using a terminal value calculation; 2) estimates of long-term growth rates for our businesses; 3) the determination of an appropriate weighted-average cost of capital or discount rate; and 4) the utilization of market information such as financial estimates from comparative peer companies and recent sales transactions for comparable assets within the utility and energy industries.
  • As of December 31, 2025, and 2024, Goodwill balances were as follows: Electric Utilities Gas Utilities Total (in millions) Goodwill $ 257.3 $ 1,042.2 $ 1,299.5 Our intangible assets represent contract intangibles, easements, rights-of-way, customer listings, and trademarks.
  • The finite-lived intangible assets are amortized using a straight-line method based on estimated useful lives; these assets are currently being amortized from 2 years to 16 years.
  • C hanges to intangible assets for the years ended December 31, were as follows: 2025 2024 2023 (in millions) Intangible assets, net, beginning balance $ 7.6 $ 8.4 $ 9.6 Additions — 0.3 — Amortization expense (a) ( 1.2 ) ( 1.1 ) ( 1.2 ) Intangible assets, net, ending balance $ 6.4 $ 7.6 $ 8.4 (a) Amortization expense for existing intangible assets is expected to b e $ 1.2 milli on for each year of the next five years.
  • Accrued Liabilities The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets as of December 31: 2025 2024 (in millions) Accrued employee compensation, benefits and withholdings $ 92.8 $ 85.5 Accrued property taxes 54.8 54.7 Customer deposits and prepayments 59.0 55.6 Accrued interest 57.2 56.4 Other (none of which is individually significant) 58.8 50.0 Total accrued liabilities $ 322.6 $ 302.2 Fair Value Measurements Financial Instruments We use the following fair value hierarchy for determining inputs for our financial instruments.
  • Debt discounts, premiums, and deferred financing costs are amortized as interest expense on a basis that approximates the effective interest method over the term of the related debt.
  • Renewable tax credits, subject to future transfer, are recorded at the expected net realizable tax value, which includes the difference between the tax value of the credits and the expected sales price.

and 247 more.

Gone since FY2024

  • At December 31, 2024, and 2023, a 10% change in market prices for our derivative instruments would not materially impact pre-tax income, the fair values of our derivative assets and liabilities, or OCI.
  • At December 31, 2024, we had no interest rate swaps in place.
  • At December 31, 2024, 96.9% of our debt is fixed rate debt, which limits our exposure to variable interest rate fluctuations.
  • A hypothetical 100 basis point increase in the benchmark rate on our variable rate debt would have increased annual pretax interest expense by approximately $0.3 million and $0.9 million for the years ended December 31, 2024, and 2023, respectively.
  • Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024, based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission “COSO”.
  • Based on our evaluation, we have concluded that our internal control over financial reporting was effective as of December 31, 2024.
  • Deloitte & Touche LLP, an independent registered public accounting firm, as auditors of Black Hills Corporation’s financial statements, has issued an attestation report on the effectiveness of Black Hills Corporation's internal control over financial reporting as of December 31, 2024.
  • Black Hills Corporation REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Black Hills Corporation Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Black Hills Corporation and subsidiaries (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income, shareholders' equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the "financial statements").
  • In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
  • We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 12, 2025, expressed an unqualified opinion on the Company's internal control over financial reporting.
  • While the Company has indicated its regulatory assets are probable of recovery in current rates or in future proceedings, there is a risk that the Commissions will not judge all costs to have been prudently incurred or that the rate regulation process in which rates are determined will not always result in rates that produce a full recovery of costs and the return on invested capital.
  • Our audit procedures related to the uncertainty of future decisions by the Commissions included the following, among others: • We tested the effectiveness of management’s controls over the evaluation of the likelihood of (1) the recovery in future rates of costs incurred as property, plant, and equipment and deferred as regulatory assets, and (2) refunds or future reductions in rates that should be reported as regulatory liabilities.
  • We tested the effectiveness of management’s controls over the initial recognition of amounts as property, plant, and equipment; regulatory assets or liabilities; and the monitoring and evaluation of regulatory developments that may affect the likelihood of recovering costs in future rates or of a future reduction in rates. • We read relevant regulatory orders issued by the Commissions, filings made by the Company, and other publicly available information, as appropriate, to assess the likelihood of recovery in future rates or of a future reduction in rates based on precedents of the Commissions’ treatment of similar costs under similar circumstances.
  • We also inquired of management regarding current year rate filings and new regulatory assets or liabilities. • We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments. /s/ DELOITTE & TOUCHE LLP Minneapolis, Minnesota February 12, 2025 We have served as the Company's auditor since 2002.
  • REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Black Hills Corporation Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of Black Hills Corporation and subsidiaries (the "Company") as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
  • In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
  • We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024, of the Company and our report dated February 12, 2025, expressed an unqualified opinion on those financial statements.
  • Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ DELOITTE & TOUCHE LLP Minneapolis, Minnesota February 12, 2025 BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF INCOME December 31, 2024 December 31, 2023 December 31, 2022 (in millions, except per share amounts) Revenue $ 2,127.7 $ 2,331.3 $ 2,551.8 Operating expenses: Fuel, purchased power and cost of natural gas sold 730.3 982.9 1,230.6 Operations and maintenance 557.0 552.0 548.4 Depreciation and amortization 270.1 256.8 250.9 Taxes other than income taxes 67.2 66.9 66.7 Total operating expenses 1,624.6 1,858.6 2,096.6 Operating income 503.1 472.7 455.2 Other income (expense): Interest expense incurred net of amounts capitalized ( 195.2 ) ( 180.0 ) ( 162.6 ) Interest income 13.5 12.1 1.6 Other income (expense), net ( 1.4 ) ( 3.2 ) 1.8 Total other income (expense) ( 183.1 ) ( 171.1 ) ( 159.2 ) Income before income taxes 320.0 301.6 296.0 Income tax (expense) ( 36.3 ) ( 25.6 ) ( 25.2 ) Net income 283.7 276.0 270.8 Net income attributable to non-controlling interest ( 10.6 ) ( 13.8 ) ( 12.4 ) Net income available for common stock 273.1 $ 262.2 $ 258.4 Earnings per share of common stock: Earnings per share, Basic 3.91 3.91 $ 3.98 Earnings per share, Diluted 3.91 3.91 $ 3.97 Weighted average common shares outstanding: Basic 69.8 67.0 64.9 Diluted 69.9 67.1 65.0 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Year ended December 31, 2024 December 31, 2023 December 31, 2022 (in millions) Net income $ 283.7 $ 276.0 $ 270.8 Other comprehensive income (loss), net of tax: Benefit plan liability adjustments - net gain (loss) (net of tax of $( 0.2 ), $ 0 , and $( 1.5 ), respectively) 0.8 ( 0.3 ) 4.6 Reclassification adjustment of benefit plan liability - net loss (net of tax of $( 0.1 ), $ 0 , and $( 0.2 ), respectively) 0.1 0.2 0.5 Reclassification adjustment of benefit plan liability - prior service cost (net of tax of $ 0 , $ 0 , and $ 0 , respectively) — — ( 0.1 ) Derivative instruments designated as cash flow hedges: Reclassification of net realized (gains) losses on settled/amortized interest rate swaps (net of tax of $( 0.6 ), $( 0.7 ), and $( 0.7 ), respectively) 2.3 2.2 2.1 Net unrealized gains (losses) on commodity derivatives (net of tax of $ 0.1 , $ 1.1 , and $ 0.2 , respectively) ( 0.5 ) ( 3.6 ) ( 0.6 ) Reclassification of net realized (gains) losses on settled commodity derivatives (net of tax of $( 0.8 ), $( 0.7 ), and $ 0.7 , respectively) 2.7 2.3 ( 2.0 ) Other comprehensive income (loss), net of tax 5.4 0.8 4.5 Comprehensive income 289.1 276.8 275.3 Less: comprehensive income attributable to non-controlling interest ( 10.6 ) ( 13.8 ) ( 12.4 ) Comprehensive income available for common stock $ 278.5 $ 263.0 $ 262.9 See Note 11 for additional disclosures related to Comprehensive Income.
  • BLACK HILLS CORPORATION CONSOLIDATED BALANCE SHEETS As of December 31, 2024 December 31, 2023 (in millions) ASSETS Current assets: Cash and cash equivalents $ 16.1 $ 86.6 Restricted cash and equivalents 7.3 6.4 Accounts receivable, net 351.2 350.3 Materials, supplies and fuel 153.9 160.9 Income tax receivable, net 19.8 18.5 Regulatory assets, current 154.8 175.7 Other current assets 39.2 28.2 Total current assets 742.3 826.6 Property, plant and equipment 9,566.5 8,917.2 Less accumulated depreciation and depletion ( 1,936.6 ) ( 1,797.9 ) Total property, plant and equipment, net 7,629.9 7,119.3 Other assets: Goodwill 1,299.5 1,299.5 Intangible assets, net 7.6 8.4 Regulatory assets, non-current 272.9 304.4 Other assets, non-current 70.4 62.2 Total other assets, non-current 1,650.4 1,674.5 TOTAL ASSETS $ 10,022.6 $ 9,620.4 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED BALANCE SHEETS (Continued) As of December 31, 2024 December 31, 2023 (in millions, except share amounts) LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 229.1 $ 186.4 Accrued liabilities 302.2 293.3 Derivative liabilities, current 4.2 6.5 Regulatory liabilities, current 94.1 98.9 Notes payable 133.8 — Current maturities of long-term debt — 600.0 Total current liabilities 763.4 1,185.1 Long-term debt, net of current maturities 4,250.2 3,801.2 Deferred credits and other liabilities: Deferred income tax liabilities, net 625.1 548.0 Regulatory liabilities, non-current 474.6 467.7 Benefit plan liabilities 122.9 123.9 Other deferred credits and other liabilities 201.2 188.7 Total deferred credits and other liabilities 1,423.8 1,328.3 Commitments, contingencies and guarantees (Note 3) Equity: Stockholders’ equity - Common stock $ 1.00 par value; 100,000,000 shares authorized; issued: 71,676,756 and 68,265,042 , respectively 71.7 68.3 Additional paid-in capital 2,193.4 2,007.7 Retained earnings 1,249.1 1,158.2 Treasury stock at cost - 56,608 and 68,073 , respectively ( 3.3 ) ( 4.1 ) Accumulated other comprehensive income (loss) ( 9.4 ) ( 14.8 ) Total stockholders’ equity 3,501.5 3,215.3 Non-controlling interest 83.7 90.5 Total equity 3,585.2 3,305.8 TOTAL LIABILITIES AND TOTAL EQUITY $ 10,022.6 $ 9,620.4 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended December 31, 2024 December 31, 2023 December 31, 2022 (in millions) Operating activities: Net income $ 283.7 $ 276.0 $ 270.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 270.1 256.8 250.9 Deferred financing cost amortization 10.7 10.1 9.8 Stock compensation 10.6 7.0 8.6 Deferred income taxes 52.0 25.4 25.6 Employee benefit plans 11.2 11.5 5.5 Other adjustments, net ( 4.1 ) 2.7 ( 4.7 ) Change in certain operating assets and liabilities: Materials, supplies and fuel 13.2 51.4 ( 75.4 ) Accounts receivable and other current assets ( 25.7 ) 204.5 ( 184.5 ) Accounts payable and other current liabilities 28.8 ( 109.9 ) 89.4 Regulatory assets 90.0 236.8 203.9 Other operating activities, net ( 21.2 ) ( 27.9 ) ( 15.1 ) Net cash provided by operating activities 719.3 944.4 584.8 Investing activities: Property, plant and equipment additions ( 744.2 ) ( 555.6 ) ( 604.4 ) Other investing activities ( 1.8 ) 18.9 0.5 Net cash (used in) investing activities ( 746.0 ) ( 536.7 ) ( 603.9 ) Financing activities: Dividends paid on common stock ( 182.3 ) ( 168.1 ) ( 156.7 ) Common stock issued 181.4 118.3 90.1 Net borrowings (payments) of Revolving Credit Facility and CP Program 133.8 ( 535.6 ) 115.4 Long-term debt - issuance 450.0 800.0 — Long-term debt - repayments ( 600.0 ) ( 525.0 ) — Distributions to non-controlling interests ( 17.4 ) ( 18.3 ) ( 17.4 ) Other financing activities ( 8.4 ) ( 13.0 ) 0.9 Net cash provided by (used in) financing activities ( 42.9 ) ( 341.7 ) 32.3 Net change in cash, restricted cash and cash equivalents ( 69.6 ) 66.0 13.2 Cash, restricted cash and cash equivalents beginning of year 93.0 27.0 13.8 Cash, restricted cash and cash equivalents end of year $ 23.4 $ 93.0 $ 27.0 Supplemental cash flow information: Cash (paid) received during the period: Interest (net of amounts capitalized) $ ( 174.4 ) $ ( 157.3 ) $ ( 152.5 ) Income taxes net of transferred tax credits (Note 15) $ 14.4 $ ( 1.0 ) $ 0.8 Non-cash investing and financing activities: Accrued property, plant and equipment purchases at December 31 $ 80.2 $ 52.4 $ 59.3 Increase in capitalized assets associated with asset retirement obligations $ 0.4 $ 3.8 $ 14.0 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION CONSOLIDATED STATEMENTS OF EQUITY Common Stock Treasury Stock Shares Value Shares Value Additional Paid in Capital Retained Earnings AOCI Non controlling Interest Total (in millions except share amounts) Balance at December 31, 2021 64,793,095 $ 64.8 54,078 $ ( 3.5 ) $ 1,783.4 $ 962.4 $ ( 20.1 ) $ 100.0 $ 2,887.0 Net income — — — — — 258.4 — 12.4 270.8 Other comprehensive income, net of tax — — — — — — 4.5 — 4.5 Dividends on common stock ($ 2.41 per share) — — — — — ( 156.7 ) — — ( 156.7 ) Share-based compensation 39,546 — ( 17,352 ) 1.1 10.5 — — — 11.6 Issuance of common stock 1,307,755 1.3 — — 89.9 — — — 91.2 Issuance costs — — — — ( 1.1 ) — — — ( 1.1 ) Distributions to non-controlling interest — — — — — — — ( 17.4 ) ( 17.4 ) Balance at December 31, 2022 66,140,396 $ 66.1 36,726 $ ( 2.4 ) $ 1,882.7 $ 1,064.1 $ ( 15.6 ) $ 95.0 $ 3,089.9 Net income — — — — — 262.2 — 13.8 276.0 Other comprehensive income, net of tax — — — — — — 0.8 — 0.8 Dividends on common stock ($ 2.50 per share) — — — — — ( 168.1 ) — — ( 168.1 ) Share-based compensation 93,257 0.1 31,347 ( 1.7 ) 8.8 — — — 7.2 Issuance of common stock 2,031,389 2.1 — — 117.9 — — — 120.0 Issuance costs — — — — ( 1.7 ) — — — ( 1.7 ) Distributions to non-controlling interest — — — — — — — ( 18.3 ) ( 18.3 ) Balance at December 31, 2023 68,265,042 $ 68.3 68,073 $ ( 4.1 ) $ 2,007.7 $ 1,158.2 $ ( 14.8 ) $ 90.5 $ 3,305.8 Net income — — — — — 273.1 — 10.6 283.7 Other comprehensive income, net of tax — — — — — — 5.4 — 5.4 Dividends on common stock ($ 2.60 per share) — — — — — ( 182.3 ) — — ( 182.3 ) Share-based compensation 113,824 0.1 ( 11,465 ) 0.8 7.6 0.1 — — 8.6 Issuance of common stock 3,297,890 3.3 — — 180.1 — — — 183.4 Issuance costs — — — — ( 2.0 ) — — — ( 2.0 ) Distributions to non-controlling interest — — — — — — — ( 17.4 ) ( 17.4 ) Balance at December 31, 2024 71,676,756 $ 71.7 56,608 $ ( 3.3 ) $ 2,193.4 $ 1,249.1 $ ( 9.4 ) $ 83.7 $ 3,585.2 The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
  • BLACK HILLS CORPORATION Notes to Consolidated Financial Statements December 31, 2024, 2023, and 2022 (1) BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES Business Description Black Hills Corporation is a customer-focused, growth-oriented utility company headquartered in Rapid City, South Dakota.
  • Following is a summary of accounts receivable as of December 31: 2024 2023 (in millions) Billed Accounts Receivable $ 201.5 $ 198.5 Unbilled Revenue 151.8 154.0 Less Allowance for Credit Losses ( 2.1 ) ( 2.2 ) Accounts Receivable, net $ 351.2 $ 350.3 Changes to allowance for credit losses for the years ended December 31, were as follows: Balance at Beginning of Year Additions Charged to Costs and Expenses Recoveries and Other Additions Write-offs and Other Deductions Balance at End of Year (in millions) 2024 $ 2.2 $ 5.6 $ 4.2 $ ( 9.9 ) $ 2.1 2023 $ 3.0 $ 8.7 $ 4.1 $ ( 13.6 ) $ 2.2 2022 $ 2.1 $ 9.1 $ 3.5 $ ( 11.7 ) $ 3.0 Materials, Supplies, and Fuel Materials and supplies represent parts and supplies for our business operations.
  • The following amounts by major classification are included in Materials, supplies, and fuel on the accompanying Consolidated Balance Sheets as of December 31: 2024 2023 (in millions) Materials and supplies $ 106.1 $ 105.9 Fuel 7.5 7.7 Natural gas in storage 40.3 47.3 Total materials, supplies, and fuel $ 153.9 $ 160.9 Property, Plant, and Equipment Property, plant, and equipment are stated at cost, which includes construction-related direct labor and material costs, indirect construction costs including labor and related costs of departments associated with supporting construction activities, and AFUDC.
  • The following table presents AFUDC amounts for the years ended December 31: Income Statement Location 2024 2023 2022 (in millions) AFUDC Debt Interest expense incurred, net of amounts capitalized $ 8.7 $ 6.0 $ 5.6 AFUDC Equity Other income (expense), net 4.0 0.4 0.6 We also capitalize interest, when applicable, on undeveloped leasehold costs and certain non-regulated construction projects.
  • These valuations require significant judgments, including, but not limited to: 1) estimates of future cash flows, based on our internal five-year business plans and adjusted as appropriate for our view of market participant assumptions, with long range cash flows estimated using a terminal value calculation; 2) estimates of long-term growth rates for our businesses; 3) the determination of an appropriate weighted-average cost of capital or discount rate; and 4) the utilization of market information such as recent sales transactions for comparable assets within the utility and energy industries.
  • As of December 31, 2024, and 2023, Goodwill balances were as follows: Electric Utilities Gas Utilities Total (in millions) Goodwill $ 257.3 $ 1,042.2 $ 1,299.5 Our intangible assets represent contract intangibles, easements, rights-of-way, customer listings, and trademarks.
  • The finite-lived intangible assets are amortized using a straight-line method based on estimated useful lives; these assets are currently being amortized from 1 years to 17 years.
  • C hanges to intangible assets for the years ended December 31, were as follows: 2024 2023 2022 (in millions) Intangible assets, net, beginning balance $ 8.4 $ 9.6 $ 10.8 Additions 0.3 — — Amortization expense (a) ( 1.1 ) ( 1.2 ) ( 1.2 ) Intangible assets, net, ending balance $ 7.6 $ 8.4 $ 9.6 (a) Amortization expense for existing intangible assets is expected to b e $ 1.2 million for each year of the next five years.
  • Accrued Liabilities The following amounts by major classification are included in Accrued liabilities on the accompanying Consolidated Balance Sheets as of December 31: 2024 2023 (in millions) Accrued employee compensation, benefits and withholdings $ 85.5 $ 74.8 Accrued property taxes 54.7 52.7 Customer deposits and prepayments 55.6 76.0 Accrued interest 56.4 46.3 Other (none of which is individually significant) 50.0 43.5 Total accrued liabilities $ 302.2 $ 293.3 Fair Value Measurements Financial Instruments We use the following fair value hierarchy for determining inputs for our financial instruments.
  • Debt discounts, premiums, and deferred financing costs are amortized over the estimated useful life of the related debt.
  • For renewable tax credits subject to future transfer, a valuation allowance is recorded for the difference between the tax value of the credits and the expected sales price.
  • Tax credits and any related valuation allowances are derecognized when control of the tax credits is transferred to other corporate taxpayers.
  • A reconciliation of share amounts used to compute earnings per share is as follows for the years ended December 31: 2024 2023 2022 (in millions, except per share amounts) Net income available for common stock $ 273.1 $ 262.2 $ 258.4 Weighted average shares - basic 69.8 67.0 64.9 Dilutive effect of equity compensation 0.1 0.1 0.1 Weighted average shares - diluted 69.9 67.1 65.0 Net income available for common stock, per share - Diluted $ 3.91 $ 3.91 $ 3.97 Anti-dilutive shares excluded from the diluted earnings per share computation were not material for the years ended December 31, 2024, 2023, and 2022.
  • Recently Issued Accounting Standards Improvements to Income Tax Disclosures, ASU 2023-09 In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which expands public entities’ annual disclosures by requiring disclosure of tax rate reconciliation amounts and percentages for specific categories, income taxes paid disaggregated by federal and state taxes, and income tax expense disaggregated by federal and state taxes jurisdiction.
  • The ASU is effective for our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, with early adoption permitted.
  • We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statement disclosures.
  • Recently Adopted Accounting Standards Improvements to Reportable Segment Disclosures, ASU 2023-07 In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly reviewed by the CODM and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets.

and 175 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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