Black Hills Corp. Provides Update for At-the-Market Equity Offering Program

Rhea-AI Summary

Black Hills Corp. (NYSE: BKH) has successfully completed its equity capital raising through its "at-the-market" equity offering program for 2021. The company sold $119.9 million worth of shares, totaling 1,812,197 shares at an average price of $66.18, resulting in net proceeds of $118.8 million. The funds will support capital investments, reduce short-term debt, and cover general corporate expenses. The company retains the ability to issue an additional $400 million in shares under their Equity Sales Distribution Agreement.

Positive

• Successfully raised $118.8 million through equity sales.
• Funds will enhance capital investment programs and reduce debt.

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• None.

RAPID CITY, S.D., Nov. 18, 2021 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today is announcing it has satisfied its planned equity capital raising under its “at-the-market” equity offering program (the “ATM Program”) for 2021, under which the company planned for the offer and sale, from time to time, of shares of its common stock having an aggregate sales price of up to $120 million in 2021, as most recently identified in its earnings guidance assumptions.

In aggregate during 2021, Black Hills sold $119.9 million, or 1,812,197 shares, at an average price per share of $66.18, resulting in total net proceeds to the Company of $118.8 million.

Black Hills intends to use the net proceeds from the sale of shares to fund its capital investment program, pay down short-term indebtedness and for general corporate purposes.

The sales were completed pursuant to the Equity Sales Distribution Agreement by and among the company and MUFG Securities Americas Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC, which the company previously filed with the Securities and Exchange Commission. Under the Sales Agreement, Black Hills may sell from time-to-time shares of its common stock with an aggregate value of up to $400 million.

A shelf registration statement on Form S-3 relating to the common stock offered in the public offering described above was filed with the SEC on August 4, 2020. The offering was made only by means of a written prospectus and prospectus supplements that form a part of the registration statement. Prospectus supplements and an accompanying prospectus relating to the offering have been filed with the SEC and are available on the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

24-Hour Media Relations Line

888-242-3969

Caution Regarding Forward Looking Statement
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements. This includes our expectations about the proceeds from the sale of common stock and the use of those proceeds described in this news release. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2020 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

FAQ

What is the total amount raised by Black Hills Corp. in 2021?

Black Hills Corp. raised a total of $119.9 million in 2021.

How many shares did Black Hills Corp. sell during its equity offering?

The company sold 1,812,197 shares as part of its equity offering.

What is the average price per share for Black Hills Corp.'s equity offering?

The average price per share was $66.18.

What will the proceeds from the sale of shares be used for?

The proceeds will be used for capital investments, paying down short-term debt, and general corporate purposes.

How much additional equity can Black Hills Corp. issue in the future?

Black Hills Corp. can issue up to $400 million in additional equity under its Sales Agreement.