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BKH · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Black Hills Corporation (BKH) stock moving?
BKH has risen from a close of $79.31 on Oct 22 to $87.04 on Nov 10, about 9.7% higher, and closed at the top of the 30-day range on Nov 10. The move accelerated on Nov 4, when the stock gained 2.4% to $84.19 on about 2.56M shares, roughly double its typical daily volume of 1.1M to 1.5M. That day Black Hills reported Q3 adjusted EPS of $0.57, beating the $0.47 estimate and rising from $0.45 a year earlier, and reaffirmed its 2026 guidance of $4.25 to $4.45. Quarterly sales of $466.1M missed the $483.0M estimate. The Oct 6 agreements to serve Google's planned Cheyenne data center add a longer-term growth driver: a $1.8B generation investment from 2027 to 2029, up to 590 MW of energy service, and an expected net income contribution of about $150M in 2030. Scotiabank reiterated Sector Outperform on Nov 6 and raised its target to $95. The pending merger with NorthWestern Energy is a key uncertainty. The Montana Public Service Commission was expected to consider it before Nov 12, and the combined company would be renamed Bright Horizon Energy under the ticker HZN if completed. Key risks are the revenue miss, a valuation that has already rallied, and merger approval timing; the $0.703 quarterly dividend, payable Dec 1, adds modest income support.
News behind the analysis
- Black Hills Energy Partners with Google on Wyoming Data Center ProjectBlack Hills Energy is participating in a partnership to support Google's new $17 billion data center investment in Wyoming, providing power and infrastructure services.
- Scotiabank Maintains Sector Outperform on Black Hills, Raises Price Target to $95Scotiabank kept its Sector Outperform rating on Black Hills and raised its price target to $95, about 9% above the Nov 10 close of $87.04.
- Black Hills Q3 2026 Earnings Call TranscriptTranscript of the third-quarter 2026 earnings call, held on Thursday, Nov 5, covering results, large-load opportunities and the pending merger.
- Black Hills Corp. Reports Third Quarter 2026 Financial ResultsBlack Hills reported Q3 GAAP EPS of $0.54 and adjusted EPS of $0.57, versus $0.45 a year earlier, and reaffirmed 2026 adjusted earnings guidance of $4.25 to $4.45 per share.
- Black Hills Q3 Adj. EPS $0.57 Beats $0.47 Estimate, Sales $466.100M Miss $483.040M EstimateAdjusted EPS beat consensus by $0.10, while quarterly sales of $466.1M fell short of the $483.0M estimate.
- Black Hills Affirms FY2026 GAAP EPS Guidance of $4.25-$4.45 vs $4.24 EstThe company affirmed its FY2026 EPS guidance of $4.25 to $4.45, slightly above the $4.24 consensus estimate.
- Nebraska Public Service Commission Reminds Customers of Cold Weather RuleThe Nebraska Public Service Commission reminded customers that the state's Cold Weather Rule, which affects utilities including Black Hills Energy, takes effect for winter.
- Black Hills Corp. Declares Quarterly DividendBlack Hills declared a quarterly dividend of $0.703 per share, payable on December 1, 2026.
About Black Hills Corporation
Black Hills Corporation is a regulated utility holding company based in Rapid City, South Dakota. It delivers natural gas and electricity to roughly 1.3 million customers in eight states, including Colorado, Iowa, Kansas, Nebraska, South Dakota, Wyoming, Arkansas and Montana. It is merging in an all-stock deal with NorthWestern Energy (NWE). Under the deal, NWE holders get 0.98 BKH shares each, and the combined company will be renamed Bright Horizon Energy with a new ticker. Shareholders of both companies, federal regulators and Nebraska and South Dakota regulators had approved the deal as of mid-2026. Montana's approval was still outstanding then, and closing was expected in the second half of 2026.
How it makes money
Most of its revenue comes from regulated rates charged to homes and businesses. State regulators set these rates to let the company recover its costs and earn an allowed return on what it invests in pipes, power lines and power plants. Natural gas distribution makes up roughly half or more of revenue, and the electric utilities in South Dakota, Wyoming and Colorado make up most of the rest. Revenue also comes from wholesale power sales, power-supply contracts with data centers and crypto-mining customers in Wyoming, and a small coal mine that supplies its own power plants. Gas revenue is seasonal and rises in winter heating months.
What usually moves BKH
- Rate case outcomes and allowed returns
- Interest rates and the cost of borrowing
- Completion and integration of the NorthWestern merger
- Data-center load growth in Wyoming and South Dakota
- Capital spending plans and new share issuance