Black Hills Corporation (NYSE: BKH) and NorthWestern Energy (NYSE: NWE) announced plans to merge in an all-stock deal valued at approximately $15.4 billion. The combined company will serve about 2.1 million customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.

Black Hills Corp. (NYSE: BKH) and NorthWestern Energy Group, Inc. d/b/a NorthWestern Energy (Nasdaq: NWE) today announced that each company’s board of directors has unanimously approved a definitive agreement to combine in an all-stock, tax-free merger that will create a premier regional regulated electric and natural gas utility company with a pro forma market capitalization of approximately $7.8 billion and a combined enterprise value of $15.4 billion, based on each company’s closing stock price as of August 18, 2025.

Black Hills Corp. President and CEO, Linn Evans said, “We are excited to bring our two highly complementary companies together to create significant long-term value for customers, employees, shareholders, and the communities we serve. Our future success will be driven equally by the people, assets, and capabilities of both organizations. The combined company will have greater scale and financial strength to consistently deliver for customers across our service territories and invest at the pace and scale that today’s energy transformation demands. Our vision is to be the energy partner of choice for our customers, communities, and investors, and this merger will accelerate our ability to achieve this goal.”

NorthWestern Energy President and CEO, Brian Bird said, “Our merger with Black Hills will create a premier regional regulated utility company with a larger, more resilient platform consistent with mid-cap peers. Together, we will be better positioned to meet rising demand, accelerate investment in energy and grid infrastructure, and support customers and communities through a rapidly evolving energy landscape. NorthWestern and Black Hills are best-in-class operators, and we are confident that our closely aligned cultures and skilled workforces will enable us to successfully bring the companies together. We will remain a trusted energy partner to our customers and look forward to building a brighter future for the people, businesses, and communities we are privileged to serve.”

Black Hills Corporation

Under the agreement, NorthWestern shareholders will receive 0.98 shares of Black Hills for each share they own. Following completion, Black Hills shareholders will own about 56 percent of the combined company, with NorthWestern shareholders holding about 44 percent. The new company will be headquartered in Rapid City, South Dakota, and a new name and stock ticker will be introduced before closing, which is expected in late 2026.

Leadership will transition primarily to NorthWestern’s management team. Brian Bird, the current CEO of NorthWestern, will become CEO of the combined company. Crystal Lail will serve as CFO, Marne Jones from Black Hills will become COO, and Kimberly Nooney from Black Hills will serve as Chief Integration Officer. Linn Evans, CEO of Black Hills, will retire once the merger is complete. The board will have 11 members, six from Black Hills and five from NorthWestern, with Steven Mills, Black Hills’ board chair, continuing in that role.

Financially, the merger is expected to strengthen the balance sheet and provide long-term earnings growth of five to seven percent. The combined rate base will nearly double to about $11.4 billion, split between $7 billion in electric assets and $4.4 billion in natural gas. Over $7 billion in capital investment is planned from 2025 through 2029 to upgrade infrastructure and support growing energy demand. The companies also expect the deal to be accretive to earnings per share in the first year following completion.

Both companies have a history of paying dividends. Black Hills pays approximately $2.70 per share annually, yielding about 4.5 percent, and has increased its dividend for more than 50 consecutive years. NorthWestern pays approximately $2.64 per share annually, with a yield between 4.5 and 4.8 percent, and has raised dividends consistently for about 20 years. Until the merger is finalized, each company will continue to pay dividends separately. The dividend policy for the combined company will be set by the new board, with Black Hills’ track record likely serving as a guide. Future dividend growth will depend on how the company balances planned infrastructure spending with shareholder distributions.

Regulatory approvals will be required from several state commissions and federal agencies, including the Federal Energy Regulatory Commission and under the Hart-Scott-Rodino Act. The review process is expected to take 12 to 15 months.

The merger brings together two regional utilities into a larger, vertically integrated company with broader geographic reach, more diversified revenue streams, and greater financial resources to fund infrastructure investments.