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RAPID CITY, S.D. - Black Hills Corp. (NYSE:BKH), a $4.2 billion market cap utility company currently trading near its 52-week high, announced Wednesday that its South Dakota electric utility subsidiary has received approval from the Wyoming Public Service Commission for a 99-megawatt power generation project. According to InvestingPro data, the company has maintained consistent profitability with a healthy 38.8% gross margin.
The Lange II Project, to be built in Rapid City, South Dakota, will include six reciprocating internal combustion engines with dual-fuel capability using natural gas and diesel. The $280 million facility will serve customers in South Dakota and eastern Wyoming. This investment comes as Black Hills Corp. continues its 54-year streak of consecutive dividend increases, demonstrating strong shareholder returns despite significant capital expenditures.
The company said the project addresses a capacity deficit resulting from the retirement of aging generation units and an increase in planning reserve margin requirements.
"We are committed to providing our customers with the safe, reliable and cost-effective electric service they depend on," said Linn Evans, president and CEO of Black Hills Corp.
Construction is scheduled to begin in the third quarter of 2025, with the facility expected to start serving customers in the second half of 2026.
The approved certificate of public convenience and necessity allows the company to commence construction on the project, which the utility identified as the least-cost resource option to reliably serve its customers.
Black Hills Corp. serves 1.35 million natural gas and electric utility customers across eight states, according to the company’s press release statement. With an overall "Fair" financial health score from InvestingPro, which offers comprehensive analysis of 1,400+ US stocks through its Pro Research Reports, the company maintains stable operations despite operating with significant debt levels.
In other recent news, Black Hills Corporation reported its Q1 2025 earnings, exceeding Wall Street expectations with an earnings per share (EPS) of $1.87, slightly above the projected $1.86. The company also achieved a revenue of $805.2 million, surpassing the forecast of $733.38 million. Black Hills reaffirmed its 2025 earnings guidance, projecting EPS between $4.00 and $4.20, and highlighted significant growth in data center demand expected through 2029. Additionally, Black Hills Corporation has reset its "at-the-market" (ATM) equity offering program to a new aggregate gross sales price limit of $400 million. This strategic move is aimed at facilitating the sale of common stock under the company’s shelf registration statement, with proceeds potentially used for repaying existing credit facilities. Meanwhile, Dakota Gold Corp. announced key leadership changes as it prepares to transition its Richmond Hill Heap Leach Gold Project into production. Jack Henris is set to become President and COO, while Todd Kenner and Kevin Puil have joined the Board of Directors, bringing valuable expertise for the company’s next phase. Dakota Gold is focused on advancing its Richmond Hill project to commercial production and developing high-grade underground gold resources.
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