The following discussions should be read in conjunction with the Notes contained herein and Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in our 2025 Annual Report on Form 10-K. Executive Summary We are a customer-focused energy solutions provider with a mission of Improving Life with Energy for more than 1.37 million customers and 800+ communities we serve. Our aspiration is to be the trusted energy partner across our growing eight-state footprint, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Our strategy is centered on four priorities: People & Culture—build a team that wins together, Operational Excellence—relentlessly deliver on our commitment to serve our customers, Transformation—be a simple and connected company and Growth—grow to be a dominant long-term energy provider. We conduct our business operations through two operating segments: Electric Utilities and Gas Utilities. Certain unallocated corporate expenses that support our operating segments are presented as Corporate and Other. We conduct our utility operations under the name Black Hills Energy predominantly in rural areas of the Rocky Mountains and Midwestern states. We consider ourselves a domestic electric and natural gas utility company. We have provided energy and served customers for 142 years, since the 1883 gold rush days in Deadwood, South Dakota. Throughout our history, the common thread that unites the past to the present is our commitment to serve our customers and communities. By being responsive and service focused, we can help our customers and communities thrive while meeting rapidly changing customer expectations. Recent Developments Pending Merger with NorthWestern On August 18, 2025, we entered into the Merger Agreement with NorthWestern and Merger Sub. See Note 14 of the Condensed Notes to Consolidated Financial Statements for recent developments surrounding the pending Merger. Business Segment Recent Developments Electric Utilities •See Note 2 of the Condensed Notes to Consolidated Financial Statements for recent rate review activity for South Dakota Electric and Colorado Electric. •During the second quarter of 2026, South Dakota Electric continued with construction of its Lange II project which is anticipated to be in service in the fourth quarter of 2026. The addition of these resources will replace generation facilities planned for retirement and support updated planning reserve margin requirements. On August 4, 2026, South Dakota Electric filed an application with the SDPUC for a PIRP rider which requests recovery of $320 million of Lange II project costs outside of a general rate review. If approved by the SDPUC, the rider is anticipated to be effective on December 1, 2026. •On March 12, 2026, the state of South Dakota enacted comprehensive wildfire liability mitigation legislation (Senate Bill 36), effective July 1, 2026. The legislation provides material liability protections for a utility that complies with its published wildfire mitigation plan. On July 2, 2026, South Dakota Electric filed its WMP with the SDPUC. Under Senate Bill 36, a utility's WMP is valid and current if it is on file and all annual reports are timely filed with the SDPUC. In 2025, the state of Wyoming enacted similar legislation. In November 2025, Wyoming Electric filed its WMP with the WPSC, which was approved on July 9, 2026. •On April 22, 2026, Wyoming Electric entered into a generation reservation agreement with a prospective new customer seeking to construct a 1.8 GW data center under Wyoming Electric's LPCS Tariff. In July 2026, the parties amended this generation reservation agreement to increase the total refundable advances and extended the maturity date to August 31, 2026. This agreement is a bridge agreement to support long lead-time items while Wyoming Electric continues to negotiate definitive agreements with the prospective customer. See Note 5 of the Condensed Notes to Consolidated Financial Statements for additional information. •On June 30, 2026, Wyoming Electric submitted an IRP to the WPSC. The IRP, which is based on 20-year planning period including a near-term planning period through 2033, identified a near-term capacity shortfall of 95 MW beginning in 2027. Based on its forecasts and analysis, Wyoming Electric recommends the addition of natural gas-fired generation and battery storage assets to meet the identified resource need. Wyoming Electric's IRP does not address any LPCS Tariff capacity needs, which are handled separately under customer-specific agreements. 31 Table of Contents •On June 19, 2026, Wyoming Electric filed a request with the WPSC to establish an LCTCAM tariff. The LCTCAM tariff provides a framework to directly recover transmission investment costs from LPCS customers who are served by, and benefit from, the transmission facility. The proposed mechanism is designed to ensure that customers not directly served by those facilities are protected from bearing those costs. The filing requests WPSC approval of the LCTCAM tariff by September 1, 2026, with an effective date of January 1, 2027. •In 2026, Wyoming Electric has set multiple all-time records for System Peak Demand. The most recent all-time peak of 439 MW was set on July 20, 2026. Prior to 2026, the previous all-time peak was 379 MW set on June 20, 2025. •In 2025, Colorado Electric received CPUC approval for the addition of 250 MW of new renewable generation resources in support of its Clean Energy Plan, which included a 50-MW utility-owned battery storage project and a 200-MW solar PPA. During the fourth quarter of 2025, Colorado Electric commenced construction of the 50-MW battery storage project. The project is expected to be completed by year-end 2027. On February 18, 2026, Colorado Electric entered into a 200-MW solar PPA. See Note 3 of the Condensed Notes to Consolidated Financial Statements for additional information regarding the PPA. Gas Utilities •See Note 2 of the Condensed Notes to Consolidated Financial Statements for recent rate review activity for Arkansas Gas, Kansas Gas and Nebraska Gas. Corporate and Other •See Note 5 of the Condensed Notes to Consolidated Financial Statements for information regarding recent financing activities. •During the second quarter of 2026, we published our 2025 Corporate Sustainability Report, highlighting our environmental, social and governance impacts and our progress on major projects and climate goals. We reported a 43% reduction in electric utility emissions intensity compared to 2005, driven by the addition of renewable and natural gas resources and the retirement of aging power plants. We also reduced natural gas utility emissions by 25% since 2022, including a 53% reduction from transfer stations, reflecting progress toward our net-zero by 2035 goal through expanded leak detection and repair efforts. Results of Operations Certain lines of business in which we operate are highly seasonal, and revenue from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Demand for electricity and natural gas is sensitive to seasonal cooling, heating and industrial load requirements. In particular, the normal peak usage season for our Electric Utilities is June through August while the normal peak usage season for our Gas Utilities is November through March. Significant earnings variances can be expected between the Gas Utilities segment’s peak and off-peak seasons. Due to this seasonal nature, our results of operations for the three and six months ended June 30, 2026, and 2025, and our financial condition as of June 30, 2026, and December 31, 2025, are not necessarily indicative of the results of operations and financial condition to be expected as of or for any other period or for the entire year. All amounts are presented on a pre-tax basis unless otherwise indicated. Minor differences in amounts may result due to rounding. 32 Table of Contents Consolidated Summary and Overview Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance 2026 2025 2026 vs 2025 Variance (in millions, except per share amounts) Operating income (loss): Electric Utilities $ 61.1 $ 49.0 $ 12.1 $ 120.2 $ 103.3 $ 16.9 Gas Utilities 43.1 35.5 7.6 188.0 187.0 1.0 Corporate and Other (a) (7.2 ) (2.0 ) (5.2 ) (9.2 ) (2.9 ) (6.3 ) Operating income 97.0 82.5 14.5 299.0 287.4 11.6 Interest expense, net (51.6 ) (48.9 ) (2.7 ) (103.5 ) (100.3 ) (3.2 ) Other income, net 0.2 (0.4 ) 0.6 0.8 0.6 0.2 Income tax (expense) (5.2 ) (4.4 ) (0.8 ) (22.8 ) (22.5 ) (0.3 ) Net income 40.4 28.8 11.6 173.5 165.2 8.3 Net income attributable to non-controlling interest (2.2 ) (1.3 ) (0.9 ) (4.3 ) (3.5 ) (0.8 ) Net income available for common stock $ 38.2 $ 27.5 $ 10.7 $ 169.2 $ 161.7 $ 7.5 Weighted average common shares outstanding, Diluted 76.1 72.4 3.7 75.9 72.1 3.8 Total earnings per share of common stock, Diluted $ 0.50 $ 0.38 $ 0.12 $ 2.23 $ 2.24 $ (0.01 ) (a)Includes inter-segment eliminations. Three Months Ended June 30, 2026, Compared to the Three Months Ended June 30, 2025: •Electric Utilities' operating income increased $12.1 million primarily due to new rates and rider recovery driven by the Wyoming Electric's recently completed Ready Wyoming project; •Gas Utilities' operating income increased $7.6 million primarily due to new rates and rider recovery driven by the Nebraska Gas and Kansas Gas rate reviews partially offset by higher operating expenses; •Corporate and Other operating loss increased $5.2 million primarily due to costs related to the pending merger with NorthWestern; and •Net interest expense increased $2.7 million primarily due to higher rates on increased debt. Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025: •Electric Utilities’ operating income increased $16.9 million primarily due to new rates and rider recovery driven by the Colorado Electric rate review and Wyoming Electric's recently completed Ready Wyoming project partially offset by lower residential and commercial customer usage and unfavorable weather; •Gas Utilities’ operating income increased $1.0 million primarily due to new rates and rider recovery driven by the Nebraska Gas, Kansas Gas, and Arkansas Gas rate reviews partially offset by unfavorable weather and higher operating expenses; •Corporate and Other operating loss increased $6.3 million primarily due to costs related to the pending merger with NorthWestern; and •Net interest expense increased $3.2 million primarily due to higher rates on increased debt partially offset by higher AFUDC debt. Segment Operating Results A discussion of operating results from our business segments follows. Unless otherwise indicated, segment information does not include inter-segment eliminations. 33 Table of Contents Non-GAAP Financial Measures The following discussion includes financial information prepared in accordance with GAAP and a “non-GAAP financial measure", Electric and Gas Utility margin. Generally, a non-GAAP financial measure is a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. We define Electric and Gas Utility margin as operating revenue less cost of fuel, purchased power and cost of natural gas sold. Electric and Gas Utility margin is a non-GAAP financial measure due to the exclusion of operation and maintenance expenses determined to be directly attributable to revenue-producing activities, depreciation and amortization expenses, and taxes other than income taxes from the measure. We believe that Gas and Electric Utility margin provides a useful basis for evaluating our segment operating results since our Utilities have regulatory mechanisms that allow them to pass prudently incurred costs of energy through to the customer in current rates. As a result, management uses Gas and Electric Utility margin internally when assessing the financial performance of our operating segments as this measure excludes the majority of revenue fluctuations caused by changes in these costs of energy. Similarly, the presentation of Gas and Electric Utility margin is intended to supplement investors’ understanding of operating performance. Our Electric and Gas Utility margin measure may not be comparable to other companies’ Electric and Gas Utility margin measures. The following table includes a reconciliation of Electric and Gas Utility margin to Gross margin, the most directly comparable GAAP measure: Electric Utilities Gas Utilities Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 2026 2025 2026 2025 (in millions) Revenue $ 226.3 $ 219.9 $ 467.9 $ 456.6 $ 230.5 $ 223.0 $ 773.6 $ 795.4 Fuel, purchased power and cost of natural gas sold (49.7 ) (55.3 ) (116.5 ) (122.5 ) (63.9 ) (68.9 ) (335.1 ) (361.4 ) Operations and maintenance (a) (41.6 ) (43.8 ) (80.8 ) (85.7 ) (42.8 ) (40.7 ) (84.0 ) (86.9 ) Depreciation and amortization (40.9 ) (37.5 ) (81.4 ) (74.6 ) (34.4 ) (32.3 ) (68.7 ) (64.4 ) Taxes other than income taxes (9.1 ) (8.9 ) (18.3 ) (18.2 ) (7.4 ) (6.2 ) (16.2 ) (14.5 ) Gross margin (GAAP) $ 85.0 $ 74.4 $ 170.9 $ 155.6 $ 82.0 $ 74.9 $ 269.6 $ 268.2 Operations and maintenance (a) 41.6 43.8 80.8 85.7 42.8 40.7 84.0 86.9 Depreciation and amortization 40.9 37.5 81.4 74.6 34.4 32.3 68.7 64.4 Taxes other than income taxes 9.1 8.9 18.3 18.2 7.4 6.2 16.2 14.5 Electric and Gas Utility margin (non-GAAP) $ 176.6 $ 164.6 $ 351.4 $ 334.1 $ 166.6 $ 154.1 $ 438.5 $ 434.0 (a)Operations and maintenance expenses which are deemed to be directly attributable to revenue-producing activities include plant operations and maintenance expenses at our electric generation facilities, operations and maintenance expenses at our WRDC coal mine, and electric and gas transmission and distribution expenses. These amounts are included in the table above to calculate gross margin in accordance with GAAP. These amounts excluded operations and maintenance expenses not directly attributable to revenue-producing activities of $23.9 million, $25.4 million, $50.7 million, and $52.3 million for the three and six months ended June 30, 2026, and 2025, respectively, for the Electric Utilities and $38.9 million, $39.4 million, $81.6 million, and $81.2 million for the three and six months ended June 30, 2026, and 2025, respectively, for the Gas Utilities. 34 Table of Contents Electric Utilities Operating results for the Electric Utilities were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance 2026 2025 2026 vs 2025 Variance (in millions) Revenue $ 226.3 $ 219.9 $ 6.4 $ 467.9 $ 456.6 $ 11.3 Fuel and purchased power 49.7 55.3 (5.6 ) 116.5 122.5 (6.0 ) Electric Utility margin (non-GAAP) (a) 176.6 164.6 12.0 351.4 334.1 17.3 Operations and maintenance 65.5 69.2 (3.7 ) 131.5 138.0 (6.5 ) Depreciation and amortization 40.9 37.5 3.4 81.4 74.6 6.8 Taxes other than income taxes 9.1 8.9 0.2 18.3 18.2 0.1 Total operating expenses (excluding Fuel and purchased power) 115.5 115.6 (0.1 ) 231.2 230.8 0.4 Operating income $ 61.1 $ 49.0 $ 12.1 $ 120.2 $ 103.3 $ 16.9 (a)See Non-GAAP Financial Measures section above for reconciliation to Gross margin, the most directly comparable GAAP measure. Three Months Ended June 30, 2026, Compared to the Three Months Ended June 30, 2025: •Electric Utility margin increased as a result of the following: (in millions) New rates and rider recovery $ 9.1 Weather 0.4 Other 2.5 $ 12.0 •Operations and maintenance expense decreased primarily due to $3.2 million of lower expenses driven by prior year unplanned generation outages and $1.2 million of lower outside services expenses. •Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures. •Taxes other than income taxes were comparable to the same period in the prior year. Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025: •Electric Utility margin increased as a result of the following: (in millions) New rates and rider recovery $ 22.4 Residential and commercial customer usage (3.8 ) Weather (2.8 ) Other 1.5 $ 17.3 •Operations and maintenance expense decreased primarily due to $4.5 million of lower outside services expenses and $3.2 million of lower expenses driven by prior year unplanned generation outages. •Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures. •Taxes other than income taxes were comparable to the same period in the prior year. 35 Table of Contents Operating Statistics Revenue Quantities Sold Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, By Customer Class 2026 2025 2026 2025 2026 2025 2026 2025 (in millions) (in GWh) Retail Revenue - Residential $ 56.0 $ 54.1 $ 119.1 $ 120.5 327.0 321.0 685.9 727.4 Commercial 67.4 66.9 137.4 135.7 499.6 499.7 991.8 1,016.9 Industrial (a) 58.2 49.3 114.5 97.5 784.0 663.9 1,491.4 1,273.7 Municipal 4.4 4.3 8.7 8.8 35.8 34.1 66.8 68.7 Other Retail (1.6 ) 3.5 1.7 6.9 — — — — Subtotal Retail Revenue - Electric 184.4 178.1 381.4 369.4 1,646.4 1,518.7 3,235.9 3,086.7 Wholesale 5.3 4.2 11.3 11.3 123.5 108.4 263.6 256.2 Market - off-system sales 2.5 10.7 13.4 22.0 90.4 220.0 288.7 393.6 Transmission 17.5 10.1 29.6 22.2 — — — — Other (b) 16.6 16.8 32.2 31.7 — — — — Total Revenue and Quantities Sold $ 226.3 $ 219.9 $ 467.9 $ 456.6 $ 1,860.3 $ 1,847.1 3,788.2 3,736.5 Other Uses, Losses, or Generation, net (c) 142.3 125.4 245.5 219.5 Total Energy 2,002.6 1,972.5 4,033.7 3,956.0 (a)The increase in industrial quantities sold for the three and six months ended June 30, 2026, compared to the same periods in 2025, was primarily driven by Wyoming Electric's large-load customers under the LPSC and BCIS Tariffs. (b)Includes Integrated Generation, inter-segment rent, and non-regulated services to our retail customers under the Service Guard Comfort Plan and Tech Services. (c)Includes company uses and line losses. Revenue Quantities Sold Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, By Business Unit 2026 2025 2026 2025 2026 2025 2026 2025 (in millions) (in GWh) Colorado Electric $ 64.7 $ 66.3 $ 134.0 $ 138.7 534.9 524.1 1,030.8 1,056.4 South Dakota Electric 76.1 78.0 162.8 164.9 527.0 638.9 1,206.7 1,320.9 Wyoming Electric 75.5 64.8 150.2 131.4 777.1 665.2 1,503.6 1,311.0 Integrated Generation 10.0 10.8 20.9 21.6 21.3 18.9 47.1 48.2 Total Revenue and Quantities Sold $ 226.3 $ 219.9 $ 467.9 $ 456.6 1,860.3 1,847.1 3,788.2 3,736.5 Three Months Ended June 30, Six Months Ended June 30, Quantities Generated and Purchased by Fuel Type 2026 2025 2026 2025 (in GWh) Generated: Coal 583.9 457.4 1,074.1 1,057.3 Natural Gas and Oil 501.7 585.3 943.4 1,097.4 Wind 162.6 135.4 349.4 310.8 Total Generated 1,248.2 1,178.1 2,366.9 2,465.5 Purchased: Coal, Natural Gas, Oil, and Other Market Purchases 408.5 470.8 970.8 846.5 Wind and Solar 345.9 323.6 696.0 644.0 Total Purchased (a) 754.4 794.4 1,666.8 1,490.5 Total Generated and Purchased 2,002.6 1,972.5 4,033.7 3,956.0 (a)The increase in total purchases for the six months ended June 30, 2026, compared to the same period in 2025, was primarily driven by generation outages and increased demand from Wyoming Electric's large-load customers under the LPCS and BCIS Tariffs. 36 Table of Contents Three Months Ended June 30, Six Months Ended June 30, Quantities Generated and Purchased by Business Unit 2026 2025 2026 2025 (in GWh) Generated: Colorado Electric 180.5 183.1 324.3 367.4 South Dakota Electric 446.5 444.9 847.2 923.8 Wyoming Electric 216.8 220.1 397.3 439.4 Integrated Generation 404.4 330.0 798.1 734.9 Total Generated 1,248.2 1,178.1 2,366.9 2,465.5 Purchased: Colorado Electric 82.8 106.5 187.4 196.7 South Dakota Electric 124.0 232.6 424.2 443.9 Wyoming Electric (a) 522.9 439.7 1,014.1 815.8 Integrated Generation 24.7 15.6 41.1 34.1 Total Purchased 754.4 794.4 1,666.8 1,490.5 Total Generated and Purchased 2,002.6 1,972.5 4,033.7 3,956.0 (a)As discussed in footnote (a) in the Quantities Generated and Purchased by Fuel Type table above, the increase in Wyoming Electric's purchases for the three and six months ended June 30, 2026, compared to the same periods in 2025, is primarily driven by increased demand from large-load customers under the LPCS and BCIS Tariffs. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Degree Days Actual Variance from Normal Actual Variance from Normal Actual Variance from Normal Actual Variance from Normal Heating Degree Days: Colorado Electric 539 (8)% 623 5% 2,540 (18)% 3,356 8% South Dakota Electric 980 (4)% 908 (12)% 3,547 (18)% 4,346 1% Wyoming Electric 974 (14)% 1,085 (5)% 3,299 (21)% 4,225 2% Combined (a) 781 (8)% 815 (5)% 3,044 (19)% 3,875 4% Cooling Degree Days: Colorado Electric 347 23% 235 (16)% 358 27% 235 (16)% South Dakota Electric 102 (17)% 162 41% 102 (17)% 162 41% Wyoming Electric 47 (41)% 60 (24)% 47 (41)% 60 (24)% Combined (a) 201 9% 174 (4)% 206 11% 174 (4)% (a)Degree days are calculated based on a weighted average of total customers by state. 37 Table of Contents Gas Utilities Operating results for the Gas Utilities were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance 2026 2025 2026 vs 2025 Variance (in millions) Revenue $ 230.5 $ 223.0 $ 7.5 $ 773.6 $ 795.4 $ (21.8 ) Cost of natural gas sold 63.9 68.9 (5.0 ) 335.1 361.4 (26.3 ) Gas Utility margin (non-GAAP) (a) 166.6 154.1 12.5 438.5 434.0 4.5 Operations and maintenance 81.7 80.1 1.6 165.6 168.1 (2.5 ) Depreciation and amortization 34.4 32.3 2.1 68.7 64.4 4.3 Taxes other than income taxes 7.4 6.2 1.2 16.2 14.5 1.7 Total operating expenses (excluding Cost of natural gas sold) 123.5 118.6 4.9 250.5 247.0 3.5 Operating income $ 43.1 $ 35.5 $ 7.6 $ 188.0 $ 187.0 $ 1.0 (a)See Non-GAAP Financial Measures section above for reconciliation to Gross margin, the most directly comparable GAAP measure. Three Months Ended June 30, 2026, Compared to the Three Months Ended June 30, 2025: •Gas Utility margin increased as a result of the following: (in millions) New rates and rider recovery $ 10.4 Mark-to-market on non-utility natural gas commodity contracts 0.7 Weather (0.5 ) Other 1.9 $ 12.5 •Operations and maintenance expense increased primarily due to higher outside services expenses and office and facilities expenses partially offset by lower employee related expenses. •Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures. •Taxes other than income taxes were comparable to the same period in the prior year. Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025: •Gas Utility margin increased as a result of the following: (in millions) New rates and rider recovery $ 19.8 Customer growth 2.1 Weather (13.6 ) Retail customer usage (3.4 ) Other (0.4 ) $ 4.5 •Operations and maintenance expense decreased primarily due to $5.1 million of lower employee related expenses partially offset by $3.2 million of higher outside services expenses. •Depreciation and amortization increased primarily due to higher asset base driven by capital expenditures. •Taxes other than income taxes were comparable to the same period in the prior year. 38 Table of Contents Operating Statistics Revenue Quantities Sold and Transported Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, By Customer Class 2026 2025 2026 2025 2026 2025 2026 2025 (in millions) (Dth in millions) Retail Revenue - Residential $ 111.6 $ 113.3 $ 423.3 $ 457.4 6.7 7.2 31.9 37.9 Commercial 39.8 42.0 165.3 176.3 3.8 4.0 15.9 18.0 Industrial 6.9 6.4 13.8 13.0 1.7 1.4 2.7 2.4 Other Retail (a) 6.7 6.9 21.4 21.6 — — — — Subtotal Retail Revenue - Gas 165.0 168.6 623.8 668.3 12.2 12.6 50.5 58.3 Transportation 44.8 42.1 99.3 99.8 37.9 36.2 84.1 86.7 Other (b) 20.7 12.3 50.5 27.3 — — — — Total Revenue and Quantities Sold $ 230.5 $ 223.0 $ 773.6 $ 795.4 50.1 48.8 134.6 145.0 (a)Includes Black Hills Energy Services revenue under the Choice Gas Program. (b)Includes inter-segment rent and non-regulated services under the Service Guard Comfort Plan, Tech Services, and HomeServe. Revenue Quantities Sold and Transported Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, By Business Unit 2026 2025 2026 2025 2026 2025 2026 2025 (in millions) (Dth in millions) Arkansas Gas $ 41.5 $ 40.7 $ 163.6 $ 165.5 5.6 5.3 17.1 18.5 Colorado Gas 36.8 39.0 127.0 154.8 4.9 5.2 15.7 18.4 Iowa Gas 33.0 30.1 126.9 116.9 7.1 6.9 21.2 22.1 Kansas Gas 25.7 25.1 86.3 91.2 8.9 7.6 19.0 19.3 Nebraska Gas 63.6 57.9 194.4 188.1 16.2 16.4 42.5 46.1 Wyoming Gas 29.9 30.2 75.4 78.9 7.4 7.4 19.1 20.6 Total Revenue and Quantities Sold $ 230.5 $ 223.0 $ 773.6 $ 795.4 50.1 48.8 134.6 145.0 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Heating Degree Days Actual Variance from Normal Actual Variance from Normal Actual Variance from Normal Actual Variance from Normal Arkansas Gas (a) 155 (45)% 193 (33)% 1,727 (20)% 2,150 (2)% Colorado Gas 716 (16)% 822 (5)% 2,775 (24)% 3,659 --- Iowa Gas 597 (12)% 640 (5)% 3,591 (9)% 3.928 (1)% Kansas Gas (a) 274 (33)% 367 (9)% 2,308 (18)% 2.983 7% Nebraska Gas (a) 532 (12)% 553 (9)% 3,077 (14)% 3.592 --- Wyoming Gas 1,061 (10)% 1,110 (7)% 3,525 (21)% 4.433 1% Combined (b) 657 (31)% 658 (8)% 3,170 (21)% 3,740 --- (a)Arkansas Gas and Kansas Gas have weather normalization mechanisms that mitigate the weather impact on Gas Utility margins. Nebraska Gas received NPSC approval to implement a two-year pilot program for a weather normalization mechanism which was effective August 1, 2025. (b)The combined heating degree days are calculated based on a weighted average of total customers by state excluding Kansas Gas and Nebraska Gas (effective in August 2025) due to its weather normalization mechanism. Arkansas Gas is partially excluded based on the weather normalization mechanism in effect from November through April. 39 Table of Contents Corporate and Other Corporate and Other operating results, including inter-segment eliminations, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance 2026 2025 2026 vs 2025 Variance (in millions) Operating income (loss) $ (7.2 ) $ (2.0 ) $ (5.2 ) $ (9.2 ) $ (2.9 ) $ (6.3 ) Three Months Ended June 30, 2026, Compared to the Three Months Ended June 30, 2025: •Operating loss increased primarily due to $4.1 million of costs related to the pending merger with NorthWestern. Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025: •Operating loss increased primarily due to $8.6 million of costs related to the pending merger with NorthWestern. Consolidated Interest Expense, Other Income and Income Tax Expense Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance 2026 2025 2026 vs 2025 Variance (in millions) Interest expense, net $ (51.6 ) $ (48.9 ) $ (2.7 ) $ (103.5 ) $ (100.3 ) $ (3.2 ) Other income, net 0.2 (0.4 ) 0.6 0.8 0.6 0.2 Income tax (expense) (5.2 ) (4.4 ) (0.8 ) (22.8 ) (22.5 ) (0.3 ) Three Months Ended June 30, 2026, Compared to the Three Months Ended June 30, 2025: •Interest expense, net, increased compared to the same period in the prior year as higher interest expense primarily driven by higher debt balances. •Other income, net, was comparable to the same period in the prior year. •Income tax (expense) was comparable to the same period in the prior year. For the three months ended June 30, 2026, the effective tax rate was 11.4%, which was comparable to 13.3% for the same period in 2025. Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025: •Interest expense, net, increased compared to the same period in the prior year due to higher interest expense primarily driven by higher debt balances partially offset by higher AFUDC debt driven by construction work-in-progress balances. •Other income, net, was comparable to the same period in the prior year. •Income tax (expense) was comparable to the same period in the prior year. For the six months ended June 30, 2026, the effective tax rate was 11.6%, which was comparable to 12.0% for the same period in 2025. 40 Table of Contents Liquidity and Capital Resources The following table provides an informational summary of our liquidity and capital structure as of: June 30, 2026 December 31, 2025 (dollars in millions) Cash and cash equivalents $ 71.5 $ 182.8 Available capacity under Revolving Credit Facility and CP Program (a) 656.8 746.8 Available liquidity $ 728.3 $ 929.6 Capital structure Short-term debt Notes Payable $ 90.0 $ — Current maturities of long-term debt 410.0 — Refundable advances for construction 285.0 — Long-term debt 3,993.9 4,701.1 Total debt 4,778.9 4,701.1 Total stockholders' equity (excludes non-controlling interest) 3,943.4 3,823.6 Total capitalization $ 8,722.3 $ 8,524.7 Debt to capitalization 54.8 % 55.1 % Long-term debt to total debt 83.6 % 100.0 % (a)Available capacity under Revolving Credit Facility and CP Program represents $750 million of total borrowing capacity less outstanding borrowings and letters of credit. See Note 5 of the Notes to Consolidated Financial Statements for more information. Future Financing Plans We plan to fund our capital plan and strategic objectives by using cash generated from operating activities and various financing alternatives, which could include our Revolving Credit Facility, our CP Program, the issuance of common stock under our ATM or in a secondary offering and refundable advances from customers. We plan to re-finance our $400 million, 3.15%, senior unsecured notes due January 2027, at or before the maturity date. Wyoming Electric entered into a generation reservation agreement with a prospective data center customer who will provide refundable advances totaling $377 million under the agreement maturing August 31, 2026. In the absence of an extension of this agreement, we will evaluate a range of financing alternatives to address repayment of the refundable advances, including available capacity under our Revolving Credit Facility, potential short-term loan arrangements, and issuances under our ATM. CASH FLOW ACTIVITIES The following tables summarize our cash flows for the six months ended June 30, 2026: Operating Activities: Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance (in millions) Net income $ 173.5 $ 165.2 $ 8.3 Non-cash adjustments to Net income 197.8 195.0 2.8 Total earnings $ 371.3 $ 360.2 $ 11.1 Changes in certain operating assets and liabilities: Materials, supplies and fuel, Accounts receivable and other current assets 142.5 93.2 49.3 Accounts payable and other current liabilities (145.4 ) (93.3 ) (52.1 ) Regulatory assets 18.0 57.9 (39.9 ) Net inflow (outflow) from changes in certain operating assets and liabilities $ 15.1 $ 57.8 $ (42.7 ) Other operating activities (15.1 ) (1.6 ) (13.5 ) Net cash provided by operating activities $ 371.3 $ 416.4 $ (45.1 ) 41 Table of Contents Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025 •Total earnings (net income plus non-cash adjustments) were $11.1 million higher than the same period in the prior year primarily as a result of increased Electric and Gas Utility margins due to new rates and rider recovery partially offset by higher financing costs. •Net inflows from changes in certain operating assets and liabilities were $42.7 million lower, primarily attributable to: oCash inflows increased by $49.3 million as a result of changes in accounts receivable and other current assets primarily driven by fluctuations in commodity prices and weather, and receipt of an insurance loss recovery receivable related to a legal settlement in Colorado; oCash outflows increased by $52.1 million as a result of changes in accounts payable and other current liabilities primarily driven by fluctuations in commodity prices, payment of a legal liability from settlement in Colorado and changes in other working capital requirements; and oCash inflows decreased by $39.9 million as a result of changes in our regulatory assets and liabilities primarily due to lower recoveries of gas and fuel cost adjustments driven by fluctuations in commodity prices, and lower recoveries of our Winter Storm Uri regulatory asset as recovery is now complete in nearly all jurisdictions. •Cash outflows from other operating activities increased by $13.5 million primarily driven by settlement of contractor retainage balances from Wyoming Electric's recently completed Ready Wyoming project and higher costs from cloud computing arrangements. Investing Activities: Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance (in millions) Capital expenditures $ (485.5 ) $ (371.8 ) $ (113.7 ) Other investing activities (6.6 ) (4.4 ) (2.2 ) Net cash (used in) investing activities $ (492.1 ) $ (376.2 ) $ (115.9 ) Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025 •Cash outflows from capital expenditures increased $113.7 million primarily driven by the Lange II project and Wyoming Electric’s milestone payments for long lead-time generation equipment. •Cash outflows from other investing activities were comparable to the same period in the prior year. Financing Activities: Six Months Ended June 30, 2026 2025 2026 vs 2025 Variance (in millions) Dividends paid on common stock $ (106.6 ) $ (97.6 ) $ (9.0 ) Common stock issued 50.1 65.0 (14.9 ) Short-term and long-term debt borrowings (repayments), net (210.0 ) (10.1 ) (199.9 ) Distributions to non-controlling interests (6.1 ) (3.8 ) (2.3 ) Proceeds from refundable advances for construction 285.0 - 285.0 Other financing activities (2.5 ) (1.3 ) (1.2 ) Net cash provided by (used in) financing activities $ 9.9 $ (47.8 ) $ 57.7 Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025 •Dividends paid on common stock increased $9.0 million due to the increased dividend rate per share and increased number of common shares outstanding. •Cash inflows decreased $14.9 million due to decreased issuances of common stock under our ATM. •Net cash outflows increased $199.9 million primarily as a result of the repayment of $300 million, 3.95% senior unsecured notes on their January 15, 2026 maturity date partially offset by net borrowing activity under our CP Program. 42 Table of Contents •Distributions to non-controlling interests increased due to higher net income from Black Hills Colorado IPP primarily driven by prior year unplanned generation outages. •Cash inflows increased due to $285.0 million of refundable advances from a prospective customer for long lead-time generation equipment. See Note 5 of the Condensed Notes to Consolidated Financial Statements for additional information. •Cash outflows from other financing activities were comparable to the same period in the prior year. CAPITAL RESOURCES See Note 5 of the Condensed Notes to Consolidated Financial Statements for recent financing updates and financial covenants information. CREDIT RATINGS The following table represents the credit ratings and outlook and risk profile of BHC as of the date of this report: Rating Agency Senior Unsecured Rating Outlook S&P (a) BBB+ Stable Moody's (b) Baa2 Stable (a)On August 19, 2025, S&P affirmed our BBB+ rating and maintained a Stable outlook. (b)On August 19, 2025, Moody's affirmed our Baa2 rating and maintained a Stable outlook. The following table represents the credit rating of South Dakota Electric as of the date of this report: Rating Agency Senior Secured Rating S&P A CAPITAL REQUIREMENTS Capital Expenditures Actual (a) Forecasted (b) Capital Expenditures by Segment (minor differences may result due to rounding) Six Months Ended June 30, 2026 2026 2027 2028 2029 2030 (in millions) Electric Utilities $ 399 $ 471 $ 367 $ 455 $ 356 $ 391 Gas Utilities 179 396 455 507 591 552 Corporate and Other 5 39 22 21 22 25 $ 583 $ 905 $ 844 $ 983 $ 969 $ 968 (a)Includes accruals for property, plant and equipment as disclosed in supplemental cash flow information in the Consolidated Statements of Cash Flows in the Consolidated Financial Statements. Capital expenditures are presented net of CIACs in the Consolidated Statements of Cash Flows. (b)Projects are being evaluated by our segments for timing, cost, and other factors. Common Stock Dividends Dividends paid on our common stock totaled $106.6 million for the six months ended June 30, 2026, or $0.703 per share. On July 28, 2026, our board of directors declared a quarterly dividend of $0.703 per share payable September 1, 2026, equivalent to an annual dividend of $2.812 per share. The amount of any future cash dividends to be declared and paid, if any, will depend upon, among other things, our financial condition, funds from operations, the level of our capital expenditures, restrictions under our Revolving Credit Facility, and our future business prospects. Critical Accounting Estimates A summary of our critical accounting estimates is included in our 2025 Annual Report on Form 10-K. There were no material changes made as of June 30, 2026. 43 Table of Contents New Accounting Pronouncements See Note 1 of the Condensed Notes to Consolidated Financial Statements for a description of recent accounting pronouncements, if any, and our expectation of their impact on our results of operations and financial condition.