Slide 1: Supplemental Slides 2Q 2024 Results
SUPPLEMENTAL SLIDES 2Q 2024 RESULTS August 7, 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: NiSource Value Proposition Driving Sustainable Growth
NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Annual Annual 2023-2028 Rate Adj EPS (1) Growth Base Growth(4) 2023-2028 14%-16% 60%-70% Annual FFO/ Dividend Payout Ratio Debt(1) Target Target Through 2028 $18.8B $16.4B YE 2023 Regulated Base Plan Capex 10-12% Electric and Gas Rat
Slide 4: Key Priorities
KEY PRIORITIES • Resilient Financial Commitments – Achieved 2Q24 adjusted EPS(1) of $0.21 – Reaffirming 2024 adjusted EPS(1) guidance of $1.70-1.74 – Reaffirming 2023-2028 annual adjusted EPS(1) growth of 6-8% and rate base growth of 8-10%(2) – $16.4 billion 2024-2028 base plan capital expenditures
Slide 5: Operational Excellence
OPERATIONAL EXCELLENCE Prioritizes Safety, Assures Predictable, Reliable Operations and a Culture of Continuous Improvement SAFETY RELIABILITY Gas and Electric Probabilistic Risk Modeling being Work and Asset Management System standardizing work, used to maximize risk reduction in our work plans sys
Slide 6: Superior Regulatory and Stakeholder Foundation
SUPERIOR REGULATORY AND STAKEHOLDER FOUNDATION 2021 2022 2023 2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Approved Settled Step 2 Rate Case Filed +$292M Step 1 Rates NIPSCO Rates Electric TDSIC 9 TDSIC 1 TDSIC 2 TDSIC 3 Trackers TDSIC 5(2) Approved Approved Approved Approved Approved Approved Settled S
Slide 7: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA NIPSCO Ownership Dunns Bridge II Solar + Storage: 435 MW+75 MW BTA Projects In-Service Investment Status (1) Structure Dunns Bridge I Solar: 265 MW ($M) Rosewater Wind 2020 Tax Equity JV Carpenter Wind: 200 MW Indiana Crossroads Wind 2021 Tax Equity JV Dunns B
Slide 8: Sustainable Investment Opportunities for Customers and Communities
SUSTAINABLE INVESTMENT OPPORTUNITIES FOR CUSTOMERS AND COMMUNITIES $3.5 - $ in Billions $3.3 - $3.9B $3.5B $2.9 - $2.9 - $2.9 - $3.2B $3.2B $3.2B $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- 2024E 2025E 2026E 2027E 2028E Growth (Within 0-3 Months) Tracker (Within 0-18 Months) Maintenance (Periodic Rate Cas
Slide 9: Additional Investment Opportunities
ADDITIONAL INVESTMENT OPPORTUNITIES Near-Term (Through 2028) Longer-Term (2028+) ~$1.6B Upside Opportunity Not Included In Base Plan Investment opportunities that can enhance our Longer-term investment themes beyond our current financial plan current financial plan • Increased ownership of electric
Slide 10: Second Quarter Consolidated & Segment Financial Results
SECOND QUARTER CONSOLIDATED & SEGMENT FINANCIAL RESULTS SECOND QUARTER YTD GAAP Change Change 2024 2023 Fav/(Unfav) 2024 2023 Fav/(Unfav) Net Income Available to Common Shareholders $85.8 $39.9 $45.9 $430.1 $359.1 $71.0 Diluted Earnings Per Share $0.19 $0.09 $0.10 $0.95 $0.80 $0.15 Second Quarter YT
Slide 11: Long-Term Financial Commitments
LONG-TERM FINANCIAL COMMITMENTS Base 5-Year Plan • Annual adjusted EPS(1) growth rate of 6-8% 2023- 2028 • Annual rate base(2) growth rate of 8-10% 2023-2028 • Annual average customer bill(3) < 4% growth 2023- 2028 • Continued commitment to 14-16% FFO/Debt(4) annually through 2028 Capital Expenditur
Slide 12: Balance Sheet Provides Flexible Financing Plan to Invest in Growth
BALANCE SHEET PROVIDES FLEXIBLE FINANCING PLAN TO INVEST IN GROWTH $16.4B CAPITAL INVESTMENT FUNDING SOURCES (2024-2028) TARGETING ANNUAL 2024-2028 Net New FFO/Debt(5) 14-16% (2) Debt 30-35% • Base Capital Plan includes up to $600 million of equity via ATM in 2024 and $200-300 million of annual tota
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 PROGRESS ADJUSTED $1.47 $1.60 Deliver 6-8% Annual Adjusted On track EPS (1) $1.37 $1.70-$1.74 Strong 1H (GROWTH) (+7%) (+9%) EPS(1) Growth results 10-12% Total Shareholder DIVIDEND $0.94 $1.00 $1.06 $0.88 Re
Slide 14: Appendix
Appendix 2Q 2024 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 15: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$13.5B as of June 30, 2024 Total Debt / Total Capitalization – ~$12.8B of long-term debt 62.5% • Weighted average maturity ~12 years • Weighted average interest rate of 4.01% – ~$0.6B of short-term debt • ~$0.6B of commercial paper issued 58.9% 58.2% 5
Slide 16: Safety and Infrastructure Investment and Tracker Filings
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILINGS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($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) (2) FY
Slide 17: 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 18: Base Plan Capital Expenditures
BASE PLAN CAPITAL EXPENDITURES Capital Plan by Segment $ in billions 2024 2025 2026 2027 2028 NIPSCO 2.0 - 2.1 2.3 – 2.5 1.4 - 1.6 1.4 - 1.6 1.4 - 1.6 COLUMBIA 1.4 1.2 - 1.4 1.4 – 1.6 1.5 – 1.7 1.5 – 1.7 TOTAL $3.3 - 3.5 $3.5 - 3.9 $2.9 - 3.2 $2.9 - 3.2 $2.9 - 3.2 Capital expenditures include 100% o
Slide 19: Reconciliation of Consolidated Net Income to Adjusted Net Income
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Adjusted Net Income Available to Common Shareholders (Non-GAAP) (unaudited) 19 NiSource | NYSE: NI | nisource.com |
Slide 20: Annual FFO/Debt Reconciliation
NiSource Inc. Schedule 2 - Reconciliation by of Net Cash Flows from Operating Activities to FFO to Debt (Adjusted) (Non-GAAP) (unaudited) Annual FFO/Debt Reconciliation ($ in millions) 2023 2022 2021 Net Cash Flows from Operating Activities 1,935 1,409 1,218 - Accounts receivable 184 (216) (40) - In