Strategic Objectives and Growth
Black Hills Corporation is achieving its strategic objectives, including a 5% year-over-year earnings growth, executing regulatory initiatives, and a $1 billion capital plan. They have implemented new rates through five rate reviews since 2024, reflecting the recovery of more than $1.3 billion of new system investments.
Customer Growth and Demand
The company is experiencing strong customer growth with two new all-time customer peak loads at Wyoming Electric. This reflects a 10% increase over the prior peak and marks 19 consecutive years of increasing demand, driven largely by data center and blockchain growth.
Data Center Expansion
Black Hills Corporation forecasts approximately 500 megawatts of data center demand by the end of 2029, with an expected EPS contribution to double to more than 10% by 2028. They have successfully served Microsoft and Meta, with Meta expected to start service in 2026.
Financial and Dividend Stability
The company reaffirmed its 2025 earnings guidance range of $4 to $4.20, with a 5% growth rate. They have a strong balance sheet, maintaining a 55% to 65% dividend payout ratio, and 55 consecutive years of dividend increases.
Ready Wyoming Electric Transmission Expansion
The largest capital project in the company's history, a $350 million project, will be completed by year-end, enhancing system resiliency and reducing dependence on third-party transmission systems.