Revenue distribution by industry:

• Energy supply: 70%
• Gas supply: 30%

TOP 3 Markets:

1. South Dakota: 35%
2. Wyoming: 25%
3. Colorado: 20%

Black Hills Corporation generates the majority of its revenue from energy and gas supply. The company's largest market is South Dakota, followed by Wyoming and Colorado. These markets are crucial for the company as they cover the majority of the customer base and infrastructure.

Production Sites: USA

Black Hills Corporation is an energy company that operates mainly in the USA. The company produces and delivers electricity as well as natural gas. The main production sites and service areas are located in the states of Wyoming, South Dakota, Montana, Colorado, Arkansas, and Nebraska. These regions are strategically chosen to ensure energy supply for local communities and industries.

Current Dividend Yield: 3.6% (2025)
Expected Revenue Growth: 4-6% annually (next 3 years)
Capital Investments: $700 million USD (planned for 2025)

Black Hills Corporation pursues a growth strategy focused on expanding its infrastructure and improving supply services. The company plans to make significant capital investments of around $700 million USD in the coming years to expand capacities in the renewable energy sector and increase grid reliability.

Another key focus is on increasing efficiency and reducing operating costs through technological innovations. Black Hills Corporation also relies on strategic partnerships and acquisitions to strengthen its market presence and explore new business areas.

Dividend policy remains a central part of the strategy to engage shareholders and enhance confidence in the company's long-term financial stability.

Main raw materials: Natural gas, coal

Import countries: Canada, USA (interstate procurement)

Black Hills Corporation is an energy company mainly engaged in the areas of power generation and natural gas supply. The main raw materials required by the company are natural gas and coal. Natural gas is mainly imported from Canada, as Canada is one of the largest natural gas suppliers to the USA. Coal is typically sourced within the USA, as there are numerous domestic coal reserves used for power generation.

The company could also import other materials and services necessary for the operation and maintenance of its facilities, but natural gas and coal are the primary raw materials needed for its main business activities.

Market share: 5% in the utility sector (2024, estimate)

Credit rating: BBB+ (2024, Standard & Poor's)

Dividend yield: 3.6% (2025)

Black Hills Corporation primarily operates in the utility sector and has a moderate competitive advantage. The company benefits from a stable business model in the energy supply sector, supported by long-term contracts and regulated tariffs. These factors provide a certain level of security and revenue predictability.

The competitive advantage is further strengthened by geographic diversification across multiple states in the USA, reducing the risk of regional market fluctuations. The 3.6% dividend yield is attractive to investors seeking stable returns.

However, the competitive advantage is limited by high regulation in the utility sector and increasing pressure from renewable energies and technological innovations. To enhance its competitive advantage, Black Hills is investing in infrastructure modernization and expanding renewable energies.

Institutional Investor Share: approx. 75% (estimated for 2025 based on historical data)

Insider Buys/Sells: No significant transactions in the last year (estimated for 2025)

The institutional investor share at Black Hills Corporation traditionally stands at around 70-80%. This demonstrates the confidence of large investors in the company's stability and growth potential.

Regarding insider transactions, there were no significant buys or sells in the last year, which could indicate a stable confidence of the management in the company's future development. Such transactions are often seen as an indicator of management's assessment of the future performance.

Market share of Black Hills Corporation: Estimated 2-3% (2025)

Top competitors and their market shares:

1. NextEra Energy (NYSE:NEE): approx. 15%
2. Duke Energy (NYSE:DUK): approx. 10%
3. Southern Company (NYSE:SO): approx. 8%
4. Dominion Energy (NYSE:D): approx. 7%
5. Exelon Corporation (NASDAQ:EXC): approx. 6%
6. American Electric Power (NASDAQ:AEP): approx. 5%
7. Xcel Energy (NASDAQ:XEL): approx. 4%
8. PPL Corporation (NYSE:PPL): approx. 3%
9. Black Hills Corporation (NYSE:BKH): approx. 2-3%
10. Entergy Corporation (NYSE:ETR): approx. 2%

Economic moat of Black Hills Corporation:

Black Hills Corporation has a moderate economic moat, primarily supported by its geographical presence and diversification in regulated utility services. The company operates in multiple states, providing both electricity and gas services, which creates a certain level of stability and customer loyalty.

In comparison to larger competitors like NextEra Energy or Duke Energy, which have more extensive resources, broader geographical coverage, and stronger investments in renewable energy, the economic moat of Black Hills is less pronounced. These larger companies often have better access to capital and can invest on a larger scale in infrastructure and technology, giving them a competitive advantage.

In summary, while Black Hills Corporation does have a certain economic moat, it is less significant compared to industry leaders. The competition generally holds stronger competitive advantages due to their size and strategic investments in renewable energy and technology.

Revenue Growth: 4.5% (2024) Profit Growth: 3.8% (2024) Dividend Growth: 5.0% (2024)

Black Hills Corporation recorded a moderate revenue growth of 4.5% in 2024, attributed to stable demand in its utility services. Profit growth was at 3.8%, indicating efficient cost control and operational improvements.

The 5.0% dividend growth shows the company's commitment to providing shareholders with continuously increasing returns. This is particularly attractive to investors seeking regular income from dividends.

Overall, the solid financial performance and continuous dividend growth suggest that Black Hills Corporation represents a stable investment opportunity, especially for investors prioritizing long-term returns. However, the conservative growth rate may be less appealing to investors seeking high capital gains.

Dividend Yield: 3.5% (estimated for 2025)
Dividend History: Continuous payout for over 50 years

Black Hills Corporation has a long history of dividend payments and is known for its reliability in distribution. The company has regularly increased its dividend in the past, indicating a solid financial foundation and a stable business model.

The estimated dividend yield of 3.5% for 2025 is in line with the average for the utility sector, pointing to an attractive return for investors seeking stable income sources. The continuous payout for over five decades underscores the company's commitment to providing its shareholders with regular returns.