Black Hills Energy announces plans to merge with NorthWestern Energy

PUEBLO, Colo. (KRDO) – Black Hills Energy has announced it will be merging with Midwest-based Northwestern Energy to form a large $7.8 billion regulated electric and natural gas utility company.

In a press release on Tuesday morning, Black Hills Energy said the all-stock, tax-free merger was unanimously approved by each company's board of directors and holds a combined enterprise value of $15.4 billion.

The Black Hills corporation currently serves over 100,000 customers in Pueblo, Cañon City, Rocky Ford and other surrounding southern Colorado communities.

According to a release, the new combined company will serve approximately 2.1 million customers across eight states, including Colorado, Arkansas, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.

"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," Black Hills President and CEO Linn Evans said in a release. "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.”

You can read the full press release from Black Hills Energy below:

"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.'"

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