Black Hills Locks Google Data Center, Reaffirms 2026 Outlook

The Tip Desk · November 10, 2026 · 4 min read

Adjusted earnings were $0.57 a share in the third quarter, and the company expects about $150 million of net income from the Cheyenne project in 2030.

Black Hills Corp. (BKH) signed definitive agreements on Sept. 30 to serve a planned Google data center in Cheyenne, Wyoming, and reaffirmed 2026 adjusted earnings guidance of $4.25 to $4.45 a share, excluding merger-related costs, for a third consecutive quarterly release.

The electric and gas utility said the contracts run through 2048 and cover 2.7 GW of resources, including $1.8 billion of 564 MW of company-owned generation and 2.1 GW of third-party contracted resources. Under a flexible large-load tariff, return on investment and management fees are expected to add $150 million of net income in 2030, with earnings beginning in mid- and late-2027. The company said the project is forecast to generate about $2.4 billion of unlevered free cash flow after netting the $1.8 billion of investment over the contract term. President and CEO Linn Evans said the additional $2.5 billion of generation and transmission investment represents significant upside to the current plan.

Adjusted EPS was $0.57, compared with $0.45 a year earlier. GAAP EPS was $0.54. Revenue was $466.1 million and operating income was $98.1 million. Adjusted results benefited from $0.15 a share of new rates and rider recovery and $0.06 of weather favorability, which more than offset higher operating expenses and financing and depreciation costs from capital investment and new assets in service.

Electric Utilities operating income increased $14.5 million from a year earlier, which the company attributed primarily to South Dakota Electric interim rates, Wyoming Electric Ready Wyoming rider recovery, favorable weather and increased retail usage. Electric Utilities revenue was $280.4 million. Industrial retail revenue rose to $64.2 million from $49.8 million, with industrial quantities sold up on Wyoming Electric large-load LPCS and BCIS customers. Wyoming Electric revenue was $87.1 million and quantities sold were 856.9 GWh. Combined cooling degree days were 28% above normal.

Gas Utilities operating income increased $4.2 million, primarily from Nebraska Gas new rates and rider recovery, higher retail usage and transportation volumes and favorable weather, partially offset by higher operating expenses. Gas Utilities revenue was $189.7 million.

Wyoming Electric recorded four new all-time customer load peaks year to date. The July 20, 2026 peak of 439 MW was 16% above the 2025 peak of 379 MW, extending 20 consecutive years of increasing electric demand in the Cheyenne region.

On Nov. 4, South Dakota Electric received SDPUC approval of a rate settlement providing $27.4 million in new annual revenue based on a 7.58% weighted average cost of capital, with a four-year base-rate moratorium to August 2030 and new rates effective December 2026. On Oct. 7, South Dakota Electric received WPSC approval of a settlement providing $4.0 million in new annual revenue, effective Dec. 1, 2026. On Oct. 12, Arkansas Gas received final Arkansas PSC approval of new rates providing $17.9 million of new annual revenue, effective the same day.

Wyoming Electric requested CPCNs for $686 million of transmission expansion — an $80 million South Cheyenne project and a $606 million Aeolus project — and a new Large Customer Transmission Cost Adjustment Mechanism tariff. The company expects WPSC decisions on the tariff and both CPCNs in 2027. South Dakota Electric’s 99-MW Lange II generation facility is on track to be in service in the fourth quarter.

The tax-free, all-stock merger with NorthWestern Energy remains expected to close by year-end 2026, subject to a satisfactory final Montana Public Service Commission decision. All other remaining approvals and conditions have been received or satisfied. Merger-related costs were $0.03 a share in the third quarter. Black Hills reaffirmed 2026 adjusted EPS guidance of $4.25 to $4.45, excluding merger-related costs, and said it expects to deliver in the upper half of its 4% to 6% long-term EPS growth target supported by the current 2026-to-2030 plan. The board approved a quarterly dividend of $0.703 a share payable Dec. 1, 2026.