Slide 1: Supplemental Slides: Fourth Quarter & Year-End 2017 Earnings
Supplemental Slides Fourth Quarter & Year-End 2017 Earnings February 20, 2018
Slide 2: Forward-Looking Statements
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
Slide 3: Key Takeaways – Year-End 2017
Key Takeaways – Year-End 2017 • 2017 results slightly above guidance range ▪ Net operating earnings per share (NOEPS)* of $1.21 versus $1.09 in 2016 ▪ Record $1.7 billion invested in gas & electric utility infrastructure modernization • Disciplined execution produces value for customers, stakeholder
Slide 4: NiSource & Federal Tax Reform
NiSource & Federal Tax Reform • Balance Sheet Re-measurements from the Adoption of Tax Cuts and Jobs Act • The Federal NOL (Net Operating Loss) carryforward revalued to $508M, which is expected to provide a cash tax benefit to NiSource that extends beyond 2025 • Re-measurement of deferred tax liabil
Slide 5: Year-End 2017 Financial Highlights
Year-End 2017 Financial Highlights Non-GAAP* 2017 2016 Change Net Operating Earnings ($M) $397.5 $351.2 $46.3 Net Operating Earnings Per Share $1.21 $1.09 $0.12 GAAP 2017 2016 Change Income from Continuing Operations ($M) $128.6 $328.1 ($199.5) Earnings Per Share - Continuing Operations $0.39 $1.02
Slide 6: NiSource Debt and Credit Profile
NiSource Debt and Credit Profile • Current debt level: ~$9.0B as of December 31, 2017 ▪ ~$7.7B of long-term debt ◦ Weighted average maturity ~18 years ◦ Weighted average interest rate of 4.8% • Solid liquidity position ▪ ~$2.2B of committed facilities in place as of December 31, 2017 ◦ ~$1.9B 5-year
Slide 7: Gas Distribution Operations
Gas Distribution Operations • Operating Earnings* $586.9M in 2017 vs. $597.6M in 2016 • Significant progress on regulatory initiatives across all states • Ongoing infrastructure modernization on track and designed to further customer value, including improved system safety, reliability and environme
Slide 8: Electric Operations
Electric Operations • Operating Earnings* $376.6M in 2017 vs. $302.3M in 2016 • Completed year two of seven-year ~$1.25B electric system modernization program • Electric transmission projects on schedule, with line and tower construction continuing • Settlement approved in environmental upgrades for
Slide 9: Appendix
Appendix: Fourth Quarter & Year-End 2017 Earnings
Slide 10: Capital Expenditures
Capital Expenditures Investments Deliver Customer Value, Enhance System Safety and Reliability Estimated ~$1.7B $1.7B - $1.8B $1.6B - $1.8B Recovery Period Annually Within 0-3 Months 16% 16% (Customer Growth/ 26% Transmission) Within 0-12 Months (Modernization/ Environmental) 60% 59% 51% Periodic Ra
Slide 11: Current Liquidity and Debt Detail ($M)
Current Liquidity and Debt Detail ($M) Actual 12/31/17 Maturity Revolving Credit Facility $ 1,850 Nov. 28, 2021 Accounts Receivable Program* 337 Less: Drawn on Credit Facility — Current Commercial Paper 869 Liquidity Accounts Receivable Program Utilized 337 L/C's Outstanding Under Credit Facility 11
Slide 12: Natural Gas Distribution Infrastructure Programs
Natural Gas Distribution Infrastructure Programs Estimated Base Case Year-End Total Modernization Annual Recovery Company Authorized 2017 Rate Identified Program Modernization Mechanism ROE Base Investments Investments Program Columbia Not Specified $2.5B ~$4.1B ~$3.4B $220M - $270M Tracked Gas of O
Slide 13: 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 14: Regulatory Update
Regulatory Update 2017 Rate Case and Program/Project Activity Company/Filing Summary Timeline Pending Approval Filed: 12/1/2017 Columbia Gas of Ohio - Capital Expenditure Program (CEP) Establishment of Deferral Recovery Rider Awaiting Procedural Schedule Recovery of Federally Mandated Pipeline NIPSC
Slide 15: 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 TBD Expected - Feb 2018 E