In one of the largest utility deals of the year, Black Hills Corp. (NYSE: BKH) and NorthWestern Energy Group, Inc. (Nasdaq: NWE) announced a definitive agreement to merge in an all-stock, tax-free transaction that gives the combined company an enterprise value of roughly $15.4 billion. The boards of both companies approved the deal unanimously, setting the stage for the creation of a new regulated electric and natural gas utility with operations across eight states.
Together, the companies will serve about 2.1 million customers, including more than 700,000 electric customers and 1.4 million natural gas customers. Their combined footprint will stretch across Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming, supported by nearly 97,000 miles of transmission and distribution lines and close to 3 gigawatts of generation capacity from a mix of thermal, hydro, and wind resources. The companies expect the deal to nearly double their combined rate base to $11.4 billion, providing the scale needed to meet rising energy demand and expand infrastructure for new industries such as data centers.
Management emphasized that the merger would create long-term value for both shareholders and customers. The new utility is projected to deliver annual earnings-per-share growth in the range of 5 to 7 percent, a pace that exceeds what either company had targeted on a standalone basis. Executives also pointed to stronger access to capital, a more balanced regulatory profile, and improved financial flexibility as key benefits of the transaction. Shareholders of Black Hills will own about 56 percent of the merged company, while NorthWestern shareholders will hold the remaining 44 percent.
The combined company will be headquartered in Rapid City, South Dakota, but leadership responsibilities will be shared. NorthWestern’s chief executive Brian Bird will serve as CEO, while Black Hills’ senior vice president and chief utility officer Marne Jones will become chief operating officer. Crystal Lail, currently CFO of NorthWestern, will take the same role in the new company, and Kimberly Nooney, CFO of Black Hills, will become chief integration officer. The board of directors will include six members from Black Hills and five from NorthWestern.
Both companies said they remain committed to safety, reliability, and sustainability, and they plan to continue investing heavily in grid modernization and renewable energy. With more than $7 billion in planned investments between 2025 and 2029, the new entity expects to play a central role in supporting the energy transition while keeping costs manageable for customers.
The merger, which is subject to shareholder approval, regulatory review in several states, and clearance from the Federal Energy Regulatory Commission, is expected to close within 12 to 15 months. If approved, it would establish a premier mid-cap regulated utility with diversified operations, predictable cash flows, and the capacity to pursue growth opportunities across an expanding energy landscape.
