Slide 1: Supplemental Slides 3Q 2021 Results
SUPPLEMENTAL SLIDES 3Q 2021 RESULTS November 3, 2021 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: Key Takeaways
KEY TAKEAWAYS ◦ Updating/Reaffirming financial guidance commitments ▪ Targeting the top end of 2021 guidance range of $1.32 to $1.36 NOEPS* ▪ Initiating 2022 guidance of $1.42 to $1.48, consistent with 5-7% near-term growth commitment ▪ Long-term 7-9% NOEPS guidance through 2024 now based on expecte
Slide 4: Third Quarter & YTD Consolidated Financial Results
THIRD QUARTER & YTD CONSOLIDATED FINANCIAL RESULTS GAAP THIRD QUARTER YTD Change Change 2021 2020 2021 2020 Fav/(Unfav) Fav/(Unfav) Net Income (Loss) Available to Common Shareholders $49.4 $(186.7) $236.1 $377.6 $(143.4) $521.0 ($ in Millions) Diluted Earnings (Loss) Per Share $0.12 $(0.49) $0.61 $0
Slide 5: Third Quarter & YTD Segment Non-GAAP Results
THIRD QUARTER & YTD SEGMENT NON-GAAP* RESULTS THIRD QUARTER YTD GAS DISTRIBUTION OPERATIONS ($ Millions) Change Change 2021 2020 2021 2020 Fav/(Unfav) Fav/(Unfav) Operating Revenues $ 476.0 $ 472.5 $ 3.5 $ 2,199.9 $ 2,334.5 $ (134.6) Cost of Energy $ 89.0 $ 63.0 $ (26.0) $ 597.0 $ 559.6 $ (37.4) Tra
Slide 6: NiSource Debt and Credit Profile
NISOURCE DEBT AND CREDIT PROFILE • Debt level: ~$9.6B as of September 30, 2021 – ~$9.2B of long-term debt ▪ Weighted average maturity ~14 years ▪ Weighted average interest rate of 3.68% • Solid liquidity position – ~$1.7B in net available liquidity as of September 30, 2021* – ~$2.1B of committed fac
Slide 7: 2021E – 2024E Capital Forecast
2021E – 2024E CAPITAL FORECAST Investment opportunities expected to enhance system safety and reliability while driving shareholder value $3.4 - $3.7B Expected Investment Recovery Period Expected Renewable Generation $2.4 - $2.7B Investments of ~$2.0B Renewables (Rate Case Effective 2H/2023) ~$2.0B
Slide 8: 2021 - 2024 Financing Plan
2021 - 2024 FINANCING PLAN* Financing strategy targets long-term Adj. FFO/total debt** of ~14%-15% ($ millions) 2021E 2022E 2023E 2024E Current Financing Plan Planned Annual Safety & Modernization Investments • All financing is included in our long- Equity term growth ATM (At-the-Market) $200 - $300
Slide 9: Gas Distribution Operations
GAS DISTRIBUTION OPERATIONS • ALJ order recommending settlement in Pennsylvania; Settlement reached in Kentucky; ALJ order received in Maryland; New NIPSCO gas case filed in September • Continuing to invest in infrastructure to enhance system safety, reliability and environmental performance HIGHLIG
Slide 10: Electric Operations
ELECTRIC OPERATIONS • 2021 IRP Preferred Plan advances plans for retirement of all coal-fired generation by 2026-2028 while shifting towards lower-cost, clean and reliable forms of generation • Regulatory approval for all 2018 IRP renewable projects HIGHLIGHT KEY COMPONENTS STATUS 2021 Integrated Re
Slide 11: Safety and Infrastructure Programs
SAFETY AND INFRASTRUCTURE PROGRAMS MODERNIZATION ESTIMATED ANNUAL YEAR-END 2020 AUTHORIZED RECOVERY COMPANY PROGRAM MODERNIZATION RATE BASE PROGRAM ROE MECHANISM INVESTMENTS PROGRAM INVESTMENTS Columbia Gas of OH $3.5B 10.39% ~$10.6B $540M - $560M Tracked Rate Case (Forward Columbia Gas of PA $2.1B
Slide 12: Safety and Infrastructure Investment and Tracker Filing Details
SAFETY AND INFRASTRUCTURE INVESTMENT AND TRACKER FILING DETAILS INCREMENTAL INVESTMENTS RECOVERY COMPANY MECHANISM PERIOD AMOUNT ($M) FILING DATE EFFECTIVE DATE Infrastructure Replacement FY 2019 $234.4 Feb 2020 May 2020 Columbia Gas of Ohio Program (IRP) FY 2020 Feb 2021 May 2021 $212.6 Capital Exp
Slide 13: Robust Renewable Investments in Indiana
Robust Renewable INVESTMENTS in Indiana NIPSCO Target In Project Structure Investment ($M) Service Status Projects in Execution: Dunns Bridge I Solar JV: 265 Rosewater Wind JV ~$100 ’20 Complete Dunns Bridge II Solar + Storage JV: 435 + 75 Jordan Creek Wind PPA N/A ’20 Complete Indiana Crossroads II
Slide 14: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Environmental Social Governance ◦ Driving toward 90% reduction* ◦ Transformation focused on ◦ Leadership enhancements in scope 1 greenhouse gas customer safety, reliability and support commitment to emissions by 2030, inclusive affordability customer service
Slide 15: Appendix
APPENDIX 3Q 2021 RESULTS NiSource | NYSE: NI | nisource.com |
Slide 16: Procurement Practices Help Mitigate Short-Term Gas Price Volatility
PROCUREMENT PRACTICES HELP MITIGATE SHORT-TERM GAS PRICE VOLATILITY Generally…residential & commercial gas utility bills are ~1/3 – 1/2 natural gas costs NiSource Residential & Commercial (R&C) Gas Customers Choice Participants/SCO Supply = NiSource Gas Procured Supply = ~50% of R&C Gas Customers (3
Slide 17: Liquidity and Capitalization as of 3Q 2021
LIQUIDITY AND CAPITALIZATION AS OF 3Q 2021 ($M) CURRENT LIQUIDITY ACTUAL 9/30/21 MATURITY Revolving Credit Facility $1,850.0 Feb. 20, 2024 Accounts Receivable Programs* 203.9 Less: Drawn on Credit Facility — Commercial Paper 380.0 Accounts Receivable Programs Utilized — L/C's Outstanding Under Credi
Slide 18: 2021 Integrated Resource Planning Process Will Inform Generation Transition Timeline
2021 Integrated Resource Planning Process Will Inform Generation Transition Timeline IRP Process Key Milestones Timing • Kicked off Public Stakeholder Advisory March meetings and engagement 2021 IRP Preferred Plan • Issued “all-source” Request for May Proposal solicitation • The IRP Preferred Plan i
Slide 19: NIPSCO 2021 IRP October Meeting: Supply Resource Plan And Timing
NIPSCO 2021 IRP October Meeting: Supply Resource Plan And Timing Near Term Mid Term Long Term Timing 2022-2025 2026-2028 2028 & Beyond • Complete and place in-service 12 remaining • Full implementation of transmission projects renewables projects filed with the IURC • Retire Schahfer Units 16A/B and
Slide 20: Schedule 1 - Reconciliation of Consolidated Net Income to Net Operating Earnings
NiSource Inc. Schedule 1 - Reconciliation of Consolidated Net Income (Loss) Available to Common Shareholders to Net Operating Earnings Available to Common Shareholders (Non-GAAP) (unaudited) (1)Represents costs incurred for estimated third-party claims and related other expenses as a result of the G
Slide 21: Schedule 2 - Reconciliation by Segment
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. NiSource | NYSE: NI | nisource.com | 21
Slide 22: Schedule 2 - Reconciliation by Segment
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. NiSource | NYSE: NI | nisource.com | 22