BLACK HILLS CORP /SD/

The following tables summarize our cash flows for the years ended December 31:

Operating Activities:

Net cash provided by operating activities was $45.9 million lower which was attributable to:

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Total earnings (net income plus non-cash adjustments) were $37.7 million higher primarily as a result of new rates and rider recovery, increased demand from LPCS Tariff and BCIS Tariff customers partially offset by higher operating expenses and higher net interest expense.

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Net inflows from changes in certain operating assets and liabilities were $86.0 million lower, primarily attributable to:

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Cash outflows increased by approximately $50.3 million as a result of changes in accounts receivable and other current assets primarily due to higher natural gas in storage inventories driven by fluctuations in commodity prices;

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Cash inflows decreased by approximately $4.8 million as a result of changes in accounts payable and other current liabilities primarily driven by fluctuations in commodity prices, remediation costs for our manufactured gas plant site in Iowa and changes in other working capital requirements; and

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Cash inflows decreased by approximately $30.9 million as a result of changes in our regulatory assets and liabilities primarily due to lower recoveries of our Winter Storm Uri regulatory asset as recovery is now complete in most of our jurisdictions.

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Cash outflows decreased $2.4 million from other operating activities.

Investing Activities:

Net cash used in investing activities was $82.2 million higher which was attributable to:

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Cash outflows from capital expenditures (which are net of contributions in aid of construction) increased $75.6 million primarily as a result of the Ready Wyoming and Lange II projects and prior year receipts related to contributions in aid of construction for data center projects in Wyoming partially offset by prior year expenditures from Black Hills Energy Renewable Resources' acquisition of an RNG production facility at a landfill in Dubuque, Iowa; and

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Cash outflows increased $6.6 million for other investing activities primarily due to higher AFUDC debt driven by construction work-in-progress balances related to the Lange II and Ready Wyoming projects.

Financing Activities:

Net cash provided by financing activities was $364.7 million higher which was primarily attributable to:

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Cash outflows increased $15.6 million due to the increased dividend rate per share and increased number of common shares outstanding;

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Cash inflows increased $37.8 million due to increased issuances of common stock;

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Net inflows from changes in short-term and long-term debt (repayments) borrowings increased $332.4 million due to timing of repayments and borrowing activity. Proceeds from the issuance of $450 million of senior unsecured notes in October 2025 were used to repay our $300 million senior unsecured notes in January 2026. In 2024, proceeds from the issuance of $450 million senior unsecured notes in May 2024, along with available cash and short-term borrowings under our existing facilities, were used to repay $600 million senior unsecured notes in August 2024;

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Distributions to non-controlling interests decreased $7.6 million due to lower net income from Black Hills Colorado IPP primarily driven by unplanned generation outages; and

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Cash outflows decreased by $2.5 million for other financing activities.