Slide 1: Supplemental Slides 1Q 2023 Results
SUPPLEMENTAL SLIDES 1Q 2023 RESULTS May 3, 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"). Investors and prospective 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 Debt2 Target Payout Ratio $30B Planned Long-Term ~$16.6B Infrastructure Investments
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: 2023 Guidance & Long-Term 6-8% Annual NOEPS Growth Rate
2023 GUIDANCE & LONG-TERM 6-8% ANNUAL NOEPS* GROWTH RATE 8% Annual 6-8% Growth Rate 5 8% 8% 6% 8% 6% 2023 Guidance 6% 1.60 6% 1.47 1.54 1.37 2021A 2022A 2023E 2024E 2025E 2026E 2027E Visible and Sustainable Investments Drive Annual 6-8% NOEPS Growth Through 2027 * NOEPS: Diluted Net Operating Earnin
Slide 6: Investing $15B Over Five Years to Drive Safety, Reliability and Sustainability
INVESTING $15B OVER FIVE YEARS TO DRIVE SAFETY, RELIABILITY AND SUSTAINABILITY $ in millions $3.3 - $3.1 - $3,500 $3.6B $3.4B $2.7 - $2.6 - $2.7 - $3.0B $3,000 $2.9B $3.0B $2.6B $2,500 $2,000 $1,500 $1,000 $500 $- 2022A 2023E 2024E 2025E 2026E 2027E Growth (Within 0-3 Months) Tracker (Within 0-18 Mo
Slide 7: Key Priorities
KEY PRIORITIES • Delivering 2023 and long-term EPS guidance – Non-GAAP NOEPS guidance of $1.54 to $1.60 in 2023 and growth of 6-8% through 2027 reaffirmed – Annual rate base growth of 8-10% driven by $15 billion of capital expenditures during 2023-27 • Regulatory execution with balanced outcomes for
Slide 8: Additional Investment Opportunities for NiSource
Additional Investment Opportunities for NiSource Near-Term (Through 2027) Longer Term (2028+) Upsides (2028+) Near-Term investment opportunities that can Longer-Term investment themes beyond our Additional opportunities past 2027 enhance our current investment plan current guidance period • New gas
Slide 9: Gas Distribution Operations
GAS DISTRIBUTION OPERATIONS • Final order received in Ohio gas rate case in January 2023 • Continuing to invest in infrastructure to enhance safety, reliability, customer affordability and sustainability HIGHLIGHT KEY COMPONENTS STATUS • Filed Apr 29, 2022 Columbia Gas of Virginia Base • Settlement
Slide 10: Electric Operations
ELECTRIC OPERATIONS • NIPSCO Electric rate case settlement achieved Mar 10, 2023 • Renewable generation projects remain on target with previously revised in-service dates • New request for proposals (RFP) for generation resources closed in September 2022; bid evaluation underway HIGHLIGHT KEY COMPON
Slide 11: Robust Renewable Investments in Indiana
ROBUST RENEWABLE INVESTMENTS IN INDIANA NIPSCO Estimated In BTA Projects Status Investment ($M) Service Dunns Bridge I Solar BTA: 265 Rosewater Wind ~$100 2020 Complete Dunns Bridge II Solar + Storage BTA: 435 + 75 Indiana Crossroads Wind ~$300 2021 Complete Indiana Crossroads II Wind PPA: 200 Dunns
Slide 12: First Quarter Consolidated Financial Results
FIRST QUARTER CONSOLIDATED FINANCIAL RESULTS FIRST QUARTER GAAP Change 2023 2022 Fav/(Unfav) Net Income Available to Common Shareholders $319.2 $413.0 $(93.8) ($ in Millions) Diluted Net Operating Earnings Per Share $0.71 $0.94 $(0.23) FIRST QUARTER NON-GAAP* Change 2023 2022 Fav/(Unfav) Net Income
Slide 13: First Quarter Segment Non-GAAP Results
FIRST QUARTER SEGMENT NON-GAAP* RESULTS OPERATING INCOME/EARNINGS FIRST QUARTER ($ Millions) CHANGE 2023 2022 FAV/(UNFAV) Gas Distribution $ 478.1 $ 404.8 $ 73.3 Electric Operations 83.0 98.7 (15.7) Corporate & Other 2.2 (9.7) 11.9 Consolidated NiSource Operating Earnings* $ 563.3 $ 493.8 $ 69.5 Key
Slide 14: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$11.6B as of March 31, 2023 Total Debt / Total Capitalization 63.0% 62.5% – ~$10.3B of long-term debt – Weighted average maturity ~13 years 61.0% – Weighted average interest rate of 3.83% 59.0% 58.9% 59.1% 57.4% 57.0% • Solid liquidity position 55.0% –
Slide 15: Strengthened Financing Plan Provides Flexibility to Invest in Growth
STRENGTHENED FINANCING PLAN PROVIDES FLEXIBILITY TO INVEST IN GROWTH Dividends and capital investments primarily funded through cash from operations Minority interest sale adds flexibility to financing plan Target FFO/Debt1 14-16% ATM Equity2 (2025+) to support current investment grade credit rating
Slide 16: Appendix
Appendix 1Q 2023 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 17: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) ENVIRONMENTAL SOCIAL GOVERNANCE • Approximately $3B of generation • Transformation focused on customer • Leadership enhancements support transition investments between 2021 - safety, reliability and affordability commitment to customer service and 2027 safety
Slide 18: Safety and Infrastructure Investment and Tracker Filing Details
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILING DETAILS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) EFFECTIVE DATE FY 2021 $232.9 May 2022 Infrastructure Replacement Program (IRP) FY 2022 $316.3 May 2023 Columbia Gas of Ohio FY 2021 $253.5 Sep 2022 Capital Expenditu
Slide 19: Schedule 1 - Reconciliation of Consolidated Net Income to Net Operating Earnings
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) 19 NiSource | NYSE: NI | nisource.com |
Slide 20: Schedule 2 - Reconciliation by Segment (GAAP to Non-GAAP)
NiSource Inc. Schedule 2 - Reconciliation by Segment of Operating Revenues, Expenses (Benefits), and Income (Loss) (GAAP) to Operating Revenues, Expenses (Benefits), and Income (Loss) (Non-GAAP) (unaudited) See footnote descriptions contained with Schedule 1. 20 NiSource | NYSE: NI | nisource.com |