Nisource Inc · NYSE:NI
Nisource — Merrill Lynch Global Power and Gas Leaders Conference 2006
14 slides from Nisource's conference presentation, Sep 26, 2006
Slide 1: Merrill Lynch Global Power and Gas Leaders Conference
Bob Skaggs, President & CEO Merrill Lynch Global Power and Gas Leaders Conference September 26, 2006
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current
Slide 3: NiSource Today
NiSource Today Strategic Location Strategic Assets Organic Growth 5 3rd Largest Gas Distribution Company in U.S. 4th Largest Gas Pipeline Company in U.S. One of the Largest Gas Storage Networks in U.S. Mid-Size Regional Electric Business Super Regional Regulated Energy Company
Slide 4: Balanced/Low Risk Portfolio
Stable Credit Ratings Gas Distribution Gas Transmission Electric Operations 40 33 27 Gas Distribution 37% Electric Operations 29% 7 Balanced/Low Risk Portfolio Gas Transmission & Storage 34% 100% of Operating Income From Regulated Businesses Moody's - Baa3 S&P - BBB Fitch - BBB
Slide 5: 2006 Performance
2006 Performance Solid First Half Increased Pipeline Optimization Revenue; Continued Progress on Growth Projects Electric Operations Earnings Growth; Strong Industrial Markets Regulatory Initiatives Advance Reduced Interest Expense Key Issues Remain LDC Customer Usage/Attrition Issue Uneven Regulato
Slide 6: Transition to Growth
Transition to Growth 11 Strengthening the Balance Sheet Divesting Non-core Businesses Maintain Investment Grade Credit Managing Regulatory/ Commercial Transitions COH Stipulation Renewal Pipeline Re- Contracting 2002 2003 2004 2005 2006 Four-Point Platform for Growth Pipeline/Storage Commercial Grow
Slide 7: Gas Transmission & Storage Expansion and Commercial Growth
Gas Transmission & Storage Expansion and Commercial Growth Maximize Value from Existing GT&S Assets Disciplined Investment in Storage and Pipeline Expansion Projects 13
Slide 8: GT&S Expansion and Commercial Growth
GT&S Expansion and Commercial Growth Millennium 4Q/2008 Hardy Storage 2Q/2007 Eastern Market Expansion 2Q/2009 Appalachian Basin Expansion 2007-08 CGT Onshore East Lateral Expansion 15 Major Growth Opportunities Crossroads Expansion Midwestern Interconnect 2006-07 LNG West Lateral Expansion Perryvil
Slide 9: Regulatory and Commercial Initiatives
Regulatory and Commercial Initiatives Optimization and Logistics Growth GT&S LDC's Recovery/Deferral of NIPSCO MISO Charges Bay State Gas Base Rate Increase Targeted Rate Initiatives Rate Design Changes Infrastructure Trackers Base Rate Cases 17 Virginia (11/2005) Indiana-Gas (5/2006) Bay State (9/2
Slide 10: Financial Management
Financial Management Refinanced $2.4 Billion in Long-Term Debt in 2005 $43 Million of Annual Interest Expense Savings Partially Offset by Short-term Interest Rates Working Capital Funding: New Amendment to Revolving Credit Facility $1.5 Billion of Capacity Extends Termination Date to 7/2011 Addition
Slide 11: Process and Expense Management
Process and Expense Management IBM Providing Business Process and Support Services Comprehensive Upgrade/Consolidation of Systems 10-year Agreement Provides NiSource with Approximately $395 Million in O&M and Capital Savings Additional Savings Opportunities (e.g. Work Management) 21
Slide 12: Creating Shareholder Value: Whiting Clean Energy
Creating Shareholder Value Whiting Clean Energy Expanded Evaluation of Potential Solutions Encouraging Process Update Progress by Year-End Financial/Strategic Review "No Stone Unturned" Update Progress by Year-End 23
Slide 13: NiSource Today
NiSource Today Super Regional Regulated Energy Company Strategic Assets Overlay a Growth Market From the Midwest to New England Low Business Risk Profile - - 100% Regulated - - 3.7 Million Distribution Customers Stronger/De-levered Balance Sheet with Stable Investment Grade Credit Focus on Growth an
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