Slide 1: Supplemental Slides Second Quarter 2018 Earnings
Supplemental Slides Second Quarter 2018 Earnings August 1, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of federal securities laws. Investors and prospective investors should understand that many factors govern whether any forward-looking statement contained herein will be or can be realized. Any one of
Slide 3: Key Takeaways – Second Quarter 2018
Key Takeaways – Second Quarter 2018 • Results in line with annual guidance range ▪ Net operating earnings per share (NOEPS)* of $0.07 versus $0.10 in 2017 ▪ On track to deliver NOEPS of $1.26 to $1.32 and complete $1.7 to $1.8 billion of utility infrastructure investments in 2018 • Financing plan ac
Slide 4: Second Quarter 2018 Financial Highlights
Second Quarter 2018 Financial Highlights Non-GAAP* 2018 2017 Change Net Operating Earnings Available to Common $26.4 $33.3 ($6.9) Shareholders ($M) Net Operating Earnings Per Share $0.07 $0.10 ($0.03) GAAP 2018 2017 Change Net Income (Loss) Available to Common $23.2 ($44.4) $67.6 Shareholders($M) Ea
Slide 5: Second Quarter 2018 Financial Highlights - Consolidated (Non-GAAP)
Second Quarter 2018 Financial Highlights - Consolidated (Non-GAAP)* Three Months Ended June 30 Six Months Ended June 30 (In millions, except per share amounts) 2018 2017 Change 2018 2017 Change Operating Revenues $ 995.1 $ 995.6 $ 2,747.3 $ 2,623.2 Cost of Sales (excluding depreciation and amortizat
Slide 6: Second Quarter 2018 Financial Highlights - Gas Distribution (Non-GAAP)
Second Quarter 2018 Financial Highlights - Gas Distribution (Non-GAAP)* Three Months Ended June 30 Six Months Ended June 30 (In millions) 2018 2017 Change 2018 2017 Change Operating Revenues $ 601.6 $ 542.9 $ 1,930.7 $ 1,745.8 Cost of Sales (excluding depreciation and amortization) 197.6 131.2 789.4
Slide 7: Second Quarter 2018 Financial Highlights - Electric (Non-GAAP)
Second Quarter 2018 Financial Highlights - Electric (Non-GAAP)* Three Months Ended June 30 Six Months Ended June 30 (In millions) 2018 2017 Change 2018 2017 Change Operating Revenues $ 396.7 $ 456.3 $ 823.1 $ 884.1 Cost of Sales (excluding depreciation and amortization) 115.6 145.7 248.3 261.9 Net R
Slide 8: NiSource Debt and Credit Profile
NiSource Debt and Credit Profile • Current debt level: ~$8.3B as of June 30, 2018 ▪ ~$7.6B of long-term debt ◦ Weighted average maturity ~18 years ◦ Weighted average interest rate of 4.7% • Solid liquidity position ▪ ~$2.2B in net available liquidity as of June 30, 2018* ◦ ~$1.9B revolving credit fa
Slide 9: Financing Plan Update
Financing Plan Update NiSource Financing Plan 2017 2018 2019/2020 ($ in Millions) Actual Estimated Estimated Equity Common Equity Block ~$600 None None Planned Issuance (Issued 5/4/18) $200 - $300 $200 - $300 ATM (At-The-Market) $315 (YTD $170) (Annually) $35 - $60 ESPP/401K/Other $61 $35 - $60 (Ann
Slide 10: Financing Plan Update
Financing Plan Update NiSource Adjusted Funds from Operations (FFO) to Debt ($ in Millions) 2017 2018 2019/2020 Estimated Estimated Funds from Operations 2017 Adjusted FFO* $1,118 2018 Primary Cash Flow Impacts Tax Reform - Regulatory Trackers/Growth +++ Other Regulatory Filings/Outcomes ++ Business
Slide 11: Gas Distribution Operations - Second Quarter 2018
Gas Distribution Operations - Second Quarter 2018 • Significant progress on regulatory initiatives inclusive of the impacts of federal tax reform, across all seven states • Ongoing infrastructure modernization on track and delivering further customer value, including improved system safety, reliabil
Slide 12: Electric Operations - Second Quarter 2018
Electric Operations - Second Quarter 2018 • Continued execution of seven-year ~$1.25B electric system modernization program • Electric transmission projects completed, placed into service in June • 2018 Integrated Resource Plan process continues • Construction underway on environmental upgrades for
Slide 13: Appendix
Appendix: Second Quarter 2018 Earnings
Slide 14: Capital Expenditures
Capital Expenditures Investments Deliver Customer Value, Enhance System Safety and Reliability Estimated $1.7B - $1.8B $1.6B - $1.8B Recovery Period Annually Within 0-3 Months 16% 16% (Customer Growth/ Transmission) Within 0-12 Months (Modernization/ Environmental) 60% 59% Periodic Rate Cases (Maint
Slide 15: Liquidity and Debt Detail as of Second Quarter 2018 ($M)
Liquidity and Debt Detail as of Second Quarter 2018 ($M) Actual Current Liquidity Maturity 6/30/2018 Revolving Credit Facility $1,850 Nov. 28, 2021 Accounts Receivable Programs* 320 Less: Drawn on Credit Facility — Commercial Paper — Accounts Receivable Programs Utilized — L/C's Outstanding Under Cr
Slide 16: Gas Distribution Operations Infrastructure Programs
Gas Distribution Operations Infrastructure Programs Estimated Base Case Year-End Total Modernization Recovery Annual Company Authorized 2017 Rate Identified Program Mechanism ROE Base Investments Modernization Investments Program Columbia Not Specified $2.5B ~$4.1B ~$3.4B $220M - $270M Tracked Gas o
Slide 17: Electric Operations Investment Programs
Electric Operations Investment Programs Infrastructure Investment Programs/Projects Estimated Identified Recovery Program/Project Program/Project Annual Investments Mechanism Length Investment Infrastructure ~$4.2B ~$135M - $235M Tracked 20+ Years Modernization Environmental ~$0.4B ~$10M - $90M Trac
Slide 18: Regulatory Update
Regulatory Update 2018 Rate Case and Program/Project Activity Company/Filing Summary Timeline Pending Approval Filed: 4/13/2018 Requested Increase: $6.1M Columbia Gas of Maryland - Base Rate Case Settlement Filed: 7/31/2018 Settled Increase: $3.7M Order Expected: 4Q2018 Filed: 4/13/2018 Columbia Gas
Slide 19: Infrastructure Investment Details
Infrastructure Investment Details Incremental Infrastructure Investments Recovery Recovery Company Filing Mechanism Investment Investment Effective Date Period Amount Date FY 2016 ~$236M Feb 2017 May 2017 Columbia Gas of Infrastructure Replacement Ohio Program (IRP) FY 2017 ~$207M Feb 2018 May 2018
Slide 20: 2017 Adjusted Funds From Operations (FFO) Reconciliation
2017 Adjusted Funds From Operations (FFO) Reconciliation Twelve Months Ended December 31 2017 (In millions) GAAP Net Income $ 129 Adjustments to Net Income Depreciation and Amortization 570 Loss on Extinguishment of Debt 112 Deferred Taxes 307 Adjusted Funds From Operations $ 1,118 20