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RAPID CITY, S.D. - Black Hills Corp. (NYSE:BKH), a utility company with a market capitalization of $4.1 billion and currently trading near its 52-week low, announced Thursday that its natural gas utility subsidiary in Kansas received regulatory approval for new rates that will generate approximately $10.8 million in additional annual revenue. According to InvestingPro data, the company has maintained consistent profitability with annual revenues of $2.2 billion.
The Kansas Corporation Commission approved a unanimous settlement agreement that will allow the company to recover approximately $118 million in system investments made since its last general rate filing in 2021, as well as inflationary impacts on service delivery costs. This development is particularly significant for Black Hills Corp., which InvestingPro analysis shows has raised its dividend for 54 consecutive years, demonstrating strong financial management despite operating with significant debt levels.
The approved settlement will migrate approximately $4.4 million in annual rider revenue to base rates, resulting in a total annual base rate revenue increase of $15.2 million. The new rates will take effect on August 1, 2025.
"This approval will support our ability to safely and reliably serve our customers and communities in Kansas," said Linn Evans, president and CEO of Black Hills Corp.
The settlement allows Black Hills to continue using the Gas System Reliability Surcharge to fund accelerated pipeline replacement across the state and includes approval of a new insurance tracker with deferred accounting treatment.
Additionally, the agreement permits the company to file an abbreviated case at a later date that would include capital placed in service through December 31, 2025.
Black Hills Corp. serves approximately 120,000 natural gas customers in Kansas and a total of 1.35 million natural gas and electric utility customers across eight states, according to the company’s press release statement. With a P/E ratio of 14.3 and a dividend yield of 4.8%, the company maintains a Fair financial health score according to InvestingPro, which offers comprehensive analysis and 8 additional key insights about the company’s performance and outlook in its Pro Research Report.
In other recent news, Black Hills Corp. has announced the declaration of a quarterly dividend of $0.676 per share, payable on September 2, 2025, to shareholders recorded by August 18, 2025. The company is set to release its second-quarter 2025 earnings results on July 30, 2025, followed by a conference call on July 31. Additionally, Black Hills Corp. received approval from the Wyoming Public Service Commission for a $280 million power generation project, known as the Lange II Project, which will be constructed in Rapid City, South Dakota. This facility will serve customers in South Dakota and eastern Wyoming.
Furthermore, Black Hills Corp. has reset its "at-the-market" equity offering program to a new limit of $400 million, amending its Equity Distribution Sales Agreement. The company’s first-quarter 2025 earnings report revealed an earnings per share of $1.87, surpassing the forecast of $1.86, with revenue reaching $805.2 million, exceeding the anticipated $733.38 million. Despite these positive earnings, concerns over rising operational costs were noted. Meanwhile, Dakota Gold Corp. has announced leadership changes as it moves towards the development of its Richmond Hill Heap Leach Gold Project. Jack Henris will assume the role of President and Chief Operating Officer, while other board changes include new appointments and resignations.
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