Black Hills and NorthWestern Energy to merge in $15.4 billion deal

RAPID CITY/BUTTE - Black Hills Corp. (NYSE:BKH) and NorthWestern Energy Group, Inc. (NASDAQ:NWE) announced Tuesday they have agreed to combine in an all-stock, tax-free merger valued at approximately $15.4 billion in enterprise value. Black Hills, which InvestingPro data shows has maintained dividend payments for 54 consecutive years, currently operates with a market capitalization of $4.4 billion and generates annual revenue of $2.2 billion.

Under the terms of the agreement, NorthWestern shareholders will receive 0.98 shares of Black Hills for each NorthWestern share, representing a 4% premium based on volume-weighted average prices since discussions began in March 2025. Upon completion, Black Hills shareholders will own approximately 56% of the combined company, with NorthWestern shareholders owning the remaining 44%.

The transaction, unanimously approved by both companies’ boards, will create a utility serving approximately 2.1 million customers across eight contiguous states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.

The combined entity will operate approximately 38,000 miles of electric lines serving 700,000 customers and 59,000 miles of natural gas lines serving 1.4 million customers. The merger will double each company’s rate base to approximately $11.4 billion total.

NorthWestern Energy President and CEO Brian Bird will serve as CEO of the combined company, while Black Hills CEO Linn Evans will retire upon closing. The board will include six directors from Black Hills and five from NorthWestern.

The companies expect the transaction to be accretive to each company’s earnings per share in the first year following closing, supporting a long-term EPS growth target of 5-7%. Their combined capital investment plans exceed $7 billion from 2025 to 2029. Black Hills currently maintains a P/E ratio of 15.2x and has demonstrated steady revenue growth with a 5-year CAGR of 4%.

Headquartered in Rapid City, South Dakota, the combined company will have a new name and ticker symbol to be determined before closing. The transaction is expected to close in 12-15 months, subject to shareholder and regulatory approvals. According to InvestingPro analysis, Black Hills currently trades near its Fair Value, with additional insights available in the comprehensive Pro Research Report, which offers detailed analysis of the company’s financial health, valuation metrics, and growth prospects.

According to the press release statement, no single regulatory jurisdiction will represent more than 33% of the combined business.

In other recent news, Black Hills Corporation reported its second-quarter 2025 earnings, meeting expectations for earnings per share (EPS) and surpassing revenue forecasts. The company achieved an EPS of $0.38, which aligned with analyst projections. Notably, Black Hills reported revenue of $439 million, exceeding the anticipated $412.68 million. These results reflect a positive performance for the quarter, highlighting the company’s ability to generate higher-than-expected revenue. While the earnings announcement led to a modest stock price increase, the primary focus for investors remains the company’s financial results. Analyst firms have not issued any recent upgrades or downgrades for Black Hills following the earnings release. These developments are part of the ongoing updates regarding the company’s financial health and performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.