Slide 1: Sale of a 19.9% Ownership Interest in NIPSCO
Sale of a 19.9% Ownership Interest in NIPSCO $2.40B Equity Capital Raise to Drive Sustainable Growth Across NiSource, a Premium Utility June 20, 2023 NiSource | NYSE: NI | nisource.com |
Slide 2: Forward-Looking Statements
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"). Forward-looking statements i
Slide 3: Enhanced NiSource Value Proposition Driving Sustainable Growth
ENHANCED NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Expected Annual Expected Annual NOEPS1 Growth Utility Rate Base Through 2027 Growth 14%-16% 60%-70% Long-term FFO/ Targeted Annual Dividend Debt Target Payout Ratio $30B Planned Long-Term ~$16.6B Regulated Electric and 9%-11
Slide 4: 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 PROGRESS On track NOEPS* $1.47 (GROWTH) $1.37 (+7.3%) $1.54-$1.60 Deliver 6-8% Annual NOEPS GROWTH - Solid 1Q Results DIVIDEND $0.94 $1.00 9-11% Total Shareholder Return $0.88 On track (ANNUAL GROWTH) (+6.8%) (+6
Slide 5: $2.40B Minority Interest Sale and Equity Capital Raise at NIPSCO
$2.40B MINORITY INTEREST SALE AND EQUITY CAPITAL RAISE AT NIPSCO Blackstone to acquire a 19.9% interest in NIPSCO for $2.15B, and is committed to funding its pro rata share of ongoing capital requirements, which is supported by a $250M equity commitment letter • Highly attractive and efficient equit
Slide 6: Transaction Summary
TRANSACTION SUMMARY Topic Description Minority Investor ◼ Blackstone Infrastructure Partners, a permanent capital investor across global infrastructure asset classes ◼ Commitment to fund $2.40B through our five-year plan Purchase Price — $2.15B cash investment at closing in exchange for a 19.9% inte
Slide 7: Premium Valuation Highlights the Value Embedded in NiSource
PREMIUM VALUATION HIGHLIGHTS THE VALUE EMBEDDED IN NISOURCE $2.40B Equity Raise at a Premium Valuation Highlights Immense Value Embedded in NiSource P/E Multiple¹ Equity Value $ 11.3B $ 10.8B 32.5 x Implied value for 100% ~77% of NIPSCO represents premium Substantial premium to ~96% of NiSource 18.4
Slide 8: Exceptional Outcome Achieves All of NiSource's Objectives
EXCEPTIONAL OUTCOME ACHIEVES ALL OF NISOURCE’S OBJECTIVES Transaction Objectives Objectives Accomplished ◼ Strengthen balance sheet and financial flexibility ✓ 14-16% FFO/debt ◼ Raise capital at highly attractive, premium valuation ✓ $2.40B equity raise at a 77% premium to NiSource’s P/E ◼ Reduce re
Slide 9: NIPSCO Is a Premium Electric & Gas Utility
NIPSCO IS A PREMIUM ELECTRIC & GAS UTILITY NIPSCO Highlights Attractive and Sustainable Growth Fully Regulated Utility Year-end rate base ~$ 15B+ By the IURC and the FERC Vertically-Integrated Electric & Gas Combination Utility Flat O&M and generation transition ~70% of Energy Volumes are Delivered
Slide 10: NIPSCO's Premium Value Proposition Underpinned by Robust Service Territory
NIPSCO’S PREMIUM VALUE PROPOSITION UNDERPINNED BY AN ECONOMICALLY ROBUST SERVICE TERRITORY AND FAVORABLE REGULATORY BACKDROP Indiana Highlights Stellar Business Environment Constructive Regulatory Backdrop #1 Manufacturing State¹ ✓ Pro-Business Policy Promoting Growth, Innovation, U.S. State Ranking
Slide 11: Columbia Gas Is a Premium LDC Business
COLUMBIA GAS IS A PREMIUM LDC BUSINESS Metric Atmos OGS Columbia Gas ~$9B ✓ 100% regulated gas Rate Base ~$14B ~$5B distribution platform (Total NiSource: ~$16.6B) ~2.4M ✓ High quality regulatory Scale Customers ~3.5M ~2.3M jurisdictions supportive of (Total NiSource: ~4M) natural gas Regulatory Div
Slide 12: Efficient Financing Strategy Supports NiSource's Robust Capital Plan
EFFICIENT FINANCING STRATEGY SUPPORTS NISOURCE’S ROBUST CAPITAL PLAN Five Year Capital Plan 2023 – 2027 Financing Plan¹ ~$18B ~$ 9.5-$ 10.5B ~$5B Increase (~50%) ~$15B Capital Plan ~$10B ~$15B ~$ 4.5-$ 5.5B No equity before 2025; maintenance equity thereafter $ 2.4B Dividends ~$3B 2018 - 2022 2023 -
Slide 13: Enhanced NiSource Value Proposition Driving Sustainable Growth
ENHANCED NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Expected Annual Expected Annual NOEPS1 Growth Utility Rate Base Through 2027 Growth 14%-16% 60%-70% Long-term FFO/ Targeted Annual Dividend Debt Target Payout Ratio $30B Planned Long-Term ~$16.6B Regulated Electric and 9%-11