Slide 1: Supplemental Slides 3Q 2024 Results
SUPPLEMENTAL SLIDES 3Q 2024 RESULTS October 30, 2024 NiSource | NYSE: NI | nisource.com |
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER Forward-Looking Statements This presentation contains "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors
Slide 3: Highly Executable Financial Commitments
HIGHLY EXECUTABLE FINANCIAL COMMITTMENTS 6%-8% 8-10% Annual 2025-2029 Rate Base Adj EPS (1) Growth Growth 14%-16% 2025-2029 60%-70% Annual FFO/ Dividend Payout Ratio Debt(1) Target Target Through 2029 $18.8B $19.3B YE 2023 Regulated Base Plan Capex 9-11% Electric and Gas Rate 2025-2029 Base Net Zero
Slide 4: Key Priorities
KEY PRIORITIES • Superior Regulatory & Stakeholder Foundation – Columbia Gas of Pennsylvania rate case settlement recommended for approval – Columbia Gas of Kentucky rate case settlement reached – NIPSCO Work and Asset Management Program approved – Fairbanks, Gibson, and gas peaker CPCNs approved •
Slide 5: Superior Regulatory and Stakeholder Foundation
SUPERIOR REGULATORY AND STAKEHOLDER FOUNDATION 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Approved Rate Step 2 Filed Settled Step 1 Filed Case Rates NIPSCO Rates Electric TDSIC 9 TDSIC 1 TDSIC 2 TDSIC 3 TDSIC 5 Trackers Approved Approved Approved Approved Approved Approved Approved Rate Step
Slide 6: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA (1) Ownership NIPSCO Dunns Bridge II Solar + Storage: 435 MW+56MW BTA Projects In-Service Structure Status Investment Dunns Bridge I Solar: 265 MW Rosewater Wind 2020 Tax Equity JV Carpenter Wind: 200 MW Indiana Crossroads Wind 2021 Tax Equity JV Indiana Cross
Slide 7: NIPSCO Integrated Resource Plan
NIPSCO INTEGRATED RESOURCE PLAN • Data center developer interest for NIPSCO’s • EPA rules impacting generation fleet service territory has been substantial in 2024 including new additions – State of Indiana is active in supporting – 2024 EPA greenhouse gas standards & economic development fossil fue
Slide 8: Incremental Investment Opportunities
INCREMENTAL INVESTMENT OPPORTUNITIES Investment themes additive to base and upside financial plan • Data center generation and gas system investments to support incremental demand • 2024 Integrated Resource Plan (IRP) generation investments to meet capacity obligations while ensuring ongoing reliabi
Slide 9: Third Quarter Consolidated & Segment Financial Results
THIRD QUARTER CONSOLIDATED & SEGMENT FINANCIAL RESULTS THIRD QUARTER YTD GAAP Change Change 2024 2023 Fav/(Unfav) 2024 2023 Fav/(Unfav) Net Income Available to Common Shareholders $85.7 $77.0 $8.7 $515.8 $436.1 $79.7 Diluted Earnings Per Share $0.19 $0.17 $0.02 $1.14 $0.98 $0.16 THIRD QUARTER YTD NO
Slide 10: Sustainable Investment Opportunities for Customers and Communities
SUSTAINABLE INVESTMENT OPPORTUNITIES FOR CUSTOMERS AND COMMUNITIES $ in Billions 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Capital expenditures include 100% of NIPSCO 2025 2026 2027 2028 * Total excluding upside capital expenditures 2029 $4.0 - 4.3B* $3.4 - 3.7B* $3.6 - 3.9B* $3.7 - 4.0B* $3.8 - 4
Slide 11: Balance Sheet Provides Flexible Base for Investment
BALANCE SHEET PROVIDES FLEXIBLE BASE FOR INVESTMENT $19.3B CAPITAL INVESTMENT FUNDING SOURCES (2025-2029) TARGETING 14-16% FFO/DEBT(5) ANNUALLY Net New THROUGH 2029 Debt(1) 35-40% • Base Capital Plan includes $200-300 million of annual equity raised via ATM from 2025-2029 • 2025+ equity needs consis
Slide 12: Long-Term Financial Commitments
LONG-TERM FINANCIAL COMMITMENTS Base 5-Year Plan • Reaffirming 2024 adjusted EPS(1) guidance of $1.70-1.74 and initiating 2025 guidance of $1.84-1.88 • Annual adjusted EPS(1) growth rate of 6-8% in 2025-2029 • Rate base growth of 8-10% across 2025-2029 • Annual average customer bill(2) <5% increase
Slide 13: Building on Our Track Record of Execution and Growth
BUILDING ON OUR TRACK RECORD OF EXECUTION AND GROWTH 2021 2022 2023 2024 2025 2026 2027 2028 2029 PROGRESS ADJUSTED EPS (1) $1.47 $1.60 $1.70- Deliver 6-8% Annual Adjusted EPS(1) $1.37 On track (GROWTH) (+7%) (+9%) $1.74 Growth DIVIDEND $0.94 $1.00 $1.06 9-11% Total Shareholder Return(3) $0.88 On tr
Slide 14: Appendix
Appendix 3Q 2024 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 15: Base Plan Capital Expenditures
BASE PLAN CAPITAL EXPENDITURES Capital Plan by Segment $ in billions 2025 2026 2027 2028 2029 NIPSCO $2.2 – 2.3 $1.2 – 1.3 $1.3 – 1.4 $1.4 – 1.5 $1.3 – 1.4 COLUMBIA $1.8 – 2.0 $2.2 – 2.4 $2.3 – 2.5 $2.3 – 2.5 $2.5 – 2.7 TOTAL $4.0 – 4.3 $3.4 – 3.7 $3.6 – 3.9 $3.7 – 4.0 $3.8 – 4.1 Capital expenditure
Slide 16: Alternate Capital Expenditure Breakdown
ALTERNATE CAPITAL EXPENDITURE BREAKDOWN 2025-2029 Base Plan By Spending Category ~10% ~11% Gas System Hardening Electric System Modernization ~48% ~14% Electric Generation Growth ~17% IT & Facilities 39 Capital expenditures include 100% of NIPSCO Total excluding upside capital expenditures 16 NiSour
Slide 17: Alternate Capital Expenditure Breakdown
ALTERNATE CAPITAL EXPENDITURE BREAKDOWN 2025-2029 Base Plan by Operating 2025-2029 Base Plan by Recovery Company Timeframe <5% <5% 5-10% ~19% 10-15% 35-40% ~48% ~33% 20-25% NIPSCO E NIPSCO G 0 - 6 Month Recovery COH CPA 7 - 12 Month Recovery 15-20% CVA CKY 13+ Month Recovery CMD Capital expenditures
Slide 18: Rate Case Details
RATE CASE DETAILS CPA CVA CKY Docket # R-2024-3046519 Docket # PUR-2024-00030 Docket # 2024-00092 Filing Date 3/15/2024 Filing Date 4/29/2024 Filing Date 5/16/2024 Requested Rate Base $3.5B Requested Rate Base $1.2B Requested Rate Base $518.8M Requested ROE 11.75% Requested ROE 10.85% Requested ROE
Slide 19: Rate Case Details
RATE CASE DETAILS NIPSCO Electric CMD Docket # 46120 Docket # 9754 Filing Date 9/12/2024 Filing Date 9/24/2024 Requested Rate Base $9.2B Requested Rate Base $250.5M Requested ROE 10.60% Requested ROE 11.05% Requested Equity Layer(1) 53.01% Equity Layer 52.22% Requested Revenue Increase $368.7M Net R
Slide 20: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$13.6B as of September 30, 2024 – ~$13.4B of long-term debt Total Debt / Total Capitalization • Weighted average maturity ~10.7 years 64.0% • Weighted average interest rate of 4.27% 62.5% 62.0% – ~$0.3B of short-term debt 60.0% 58.9% • ~$0.3B of commer
Slide 21: Northern Indiana Public Service Company (NIPSCO Electric)
NORTHERN INDIANA PUBLIC SERVICE COMPANY (NIPSCO ELECTRIC) Regulatory Landscape Business Profile • TDSIC recovers new or replacement projects for safety, reliability and system modernization • Design of Rate 831 insulates NIPSCO from potential year-to-year variability of industrial • 500K Customers e
Slide 22: Northern Indiana Public Service Company (NIPSCO Gas)
NORTHERN INDIANA PUBLIC SERVICE COMPANY (NIPSCO GAS) Business Profile Regulatory Landscape • TDSIC recovers new or replacement projects for safety, reliability, and system • 900K Customers modernization; semi-annual infrastructure tracker • FMCA offers capital and O&M semi-annual recovery for federa
Slide 23: Columbia Gas of Ohio (COH)
COLUMBIA GAS OF OHIO (COH) Regulatory Landscape Business Profile • Tracked annual Infrastructure Replacement Program (IRP), Capital Expenditure Program (CEP), and Pipeline and Hazardous Materials Safety Administration (“PHMSA”) IRP • 1.5M Customers • 100% of capital investment within established cap
Slide 24: Columbia Gas of Pennsylvania (CPA)
COLUMBIA GAS OF PENNSYLVANIA (CPA) Business Profile Regulatory Landscape • Projected future test year allows for capital and expense recovery with zero lag • 440K Customers • Authorized Weather Normalized Adjustment of residential bills during winter period stabilizes revenue for CPA and bills for c
Slide 25: Columbia Gas of Virginia (CVA)
COLUMBIA GAS OF VIRGINIA (CVA) Business Profile Regulatory Landscape • Tracker filings supplemented by rate case filings with forward test year • 270K Customers • Authorized Weather Normalized Adjustment of residential and small commercial bills during winter period stabilizes revenue for CVA and bi
Slide 26: Columbia Gas of Kentucky (CKY)
COLUMBIA GAS OF KENTUCKY (CKY) Business Profile Regulatory Landscape • SMRP allows for full cost recovery of eligible pipeline replacement/safety related initiatives • 135K Customers via forward looking test year • Commission authorized economic development extension tariff for high potential sites
Slide 27: Columbia Gas of Maryland (CMD)
COLUMBIA GAS OF MARYLAND (CMD) Business Profile Regulatory Landscape • Forward-looking annual infrastructure replacement and improvement surcharge (IRIS) • 34K Customers recovers age and condition investment • IRIS filings supplemented by periodic historic test year rate cases • 70 Employees • Autho
Slide 28: Safety and Infrastructure Investment and Tracker Filings
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILINGS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE Infrastructure Replacement Program (IRP) FY 2023 $231 May 2024 Columbia Gas of Ohio PHMSA(1) IRP FY 2023 $15 May 2024 Capital Expenditure Program (CEP) FY 202
Slide 29: Delivering Top Quartile ESG Performance
DELIVERING TOP QUARTILE ESG PERFORMANCE Executing Amid Changing Industry and Economic Landscape Environmental Highlights Social Highlights • Industry Leading Carbon Reduction • Publicly and Transparently Reporting on Our Sustainability Efforts – Net zero goal for Scope 1 and 2 greenhouse gas (“GHG”)
Slide 30: Consistent Execution Drives Sustainable Growth
CONSISTENT EXECUTION DRIVES SUSTAINABLE GROWTH Achieving High End of Earnings Guidance Rebases Future Growth Upwards An Established Track Record of Achieving Projected Future Guidance Rebases Upwards Adjusted EPS(2) Results Top Decile Historical Adjusted EPS Growth Off Actual Results 2021-2023 Non-G
Slide 31: Schedule 1 - Reconciliation of Consolidated Net Income to Adjusted Net Income
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Adjusted Net Income Available to Common Shareholders (Non-GAAP) (unaudited) Three Months Nine Months Ended Ended September 30, September 30, (in millions, except per share amounts) 2024 2023 2024
Slide 32: Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses, and Income
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses, and Income (Loss) (GAAP) to Operating Revenues, Expenses, and Income (Loss) (Non-GAAP) (unaudited) Columbia NIPSCO Corporate & Three Months Ended September 30, 2024 (in millions) Operations Operations Other Total O
Slide 33: Schedule 2 - Reconciliation by Segment (Nine Months)
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses, and Income (Loss) (GAAP) to Operating Revenues, Expenses, and Income (Loss) (Non-GAAP) (unaudited) Columbia NIPSCO Corporate & Nine months ended September 30, 2024 (in millions) Operations Operations Other Total Op
Slide 34: Annual FFO/Debt Reconciliation
NiSource Inc. Schedule 3 - Reconciliation of Net Cash Flows from Operating Activities to FFO to Debt (Adjusted) (Non-GAAP) (unaudited) Annual FFO/Debt Reconciliation ($ in millions) 2023 2022 2021 Net Cash Flows from Operating Activities 1,935 1,409 1,218 - Accounts receivable 184 (216) (40) - Inven