Black Hills Corp. Secures New Rates, Boosting Annual Revenue by $42.4 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Source: Newsfilter
- Rate Adjustment: Black Hills Corp.'s Nebraska natural gas utility subsidiary received approval for new rates that will recover over $453 million in system investments since the last general rate filing in 2020, ensuring safe and reliable natural gas service for over 304,000 customers.
- Revenue Growth: The new rates are expected to generate approximately $23.9 million in new annual revenues and migrate $18.5 million in annual rider revenue to base rates, resulting in a total annual base rate revenue increase of $42.4 million, significantly enhancing the company's financial stability.
- Capital Structure: The new rates are based on a return on equity of 9.85% and a capitalization structure of 50.5% equity and 49.5% debt, which will help the company maintain flexibility in future investments and operations.
- Safety Investment: The approved settlement also allows for the renewal of a five-year System Safety and Integrity Rider to fund accelerated safety-focused pipeline replacements across the state, further reinforcing the company's commitment to ensuring customer safety.
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Analyst Views on BKH
Wall Street analysts forecast BKH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKH is 80.00 USD with a low forecast of 73.00 USD and a high forecast of 87.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 72.160
Low
73.00
Averages
80.00
High
87.00
Current: 72.160
Low
73.00
Averages
80.00
High
87.00
About BKH
Black Hills Corporation is a customer-focused, growth-oriented utility company. It serves 1.35 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Its segments include Electric Utilities and Gas Utilities. Its Electric Utilities segment generates, transmits and distributes electricity to approximately 225,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming. Its Electric Utilities own 1,394 megawatts of generation and 9,196 miles of electric transmission and distribution lines. Its Gas Utilities segment serves over 1,128,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming. Its Gas Utilities own and operate 4,648 miles of intrastate gas transmission pipelines and 44,524 miles of gas distribution mains and service lines, seven natural gas storage sites, over 50,000 horsepower of compression, and 516 miles of gathering lines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Black Hills Corp. Increases Quarterly Dividend to $0.703, Marking 56 Years of Growth
- Dividend Increase: Black Hills Corp. announces an increase in its quarterly dividend to $0.703 per share, up $0.027 from the previous quarter, reflecting the company's confidence in its long-term strategy and growth, which is expected to attract more investor interest.
- Sustained Record: This dividend adjustment marks 56 consecutive years of dividend increases for Black Hills, making it the second-longest record in the electric and natural gas utility industry, further solidifying its leadership position in the sector.
- Historical Legacy: Having paid annual dividends since 1942, Black Hills has maintained this practice for 84 consecutive years, demonstrating a strong commitment to shareholder returns, which enhances investor trust.
- Customer Base: Serving 1.35 million natural gas and electric utility customers across eight states, including Arkansas and Colorado, Black Hills' robust customer base provides solid support for its continued growth.
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BLACK HILLS CORP RAISES QUARTERLY DIVIDEND TO $0.703 PER SHARE
- Dividend Increase: Black Hills Corp has raised its quarterly dividend to $0.703 per share.
- Financial Performance: The increase reflects the company's strong financial performance and commitment to returning value to shareholders.
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